February 9, 2013
The purpose of the report is to provide background on Apple Computer as it relates to their international business operations expansion into South Korea. It will examine the current Apple structure and evaluate its business. A discussion of the South Korean market is also included.
Apple Inc. designs, manufactures and markets mobile communication devices, computers, portable music players, and a variety of related software. The company sells its products worldwide through its retail stores, online stores, and direct sales force. Major products and their percent of company sales is as follows: iPhone 50%, iPad 11.9%, iPod .08%, Mac computer 10.9%, icloud .04%, and Apple TV .03%.1 Apple products tend to be priced at the higher end of the electronic spectrum. According to former CEO Steve Jobs the companies core value is not about making technology or “making boxes for people to get their jobs done” rather he said, “ We believe people with passion can change the world for the better… and that those people who are crazy enough to think they can change the world, are the ones who actually do it.” 2 It has evolved that the marketing goal of the company is less about a quantitative dollar amount, and more about the next WOW element. They are in part selling an image. The company operates mainly out of California and employs 32,000 employees and has annual revenue of 165 billion U.S. dollars, placing it as the second largest corporation in the world. Providing an impressive ROE of 38.4%, and an EPS of $44.09 per share over the last 12 months. The stock is currently trading at approximately $475.00 per share, off the 52 week high of $705.00 in September 2012, and up from the recent low of $435.00 in January 2012. Thomson Reuters research reports indicates that Apple’s average score is “relatively in line with the market” at 6, while its...