Financial Analysis Project
Dell and Apple are American companies that participate in the industry of Electronic Computers, according to the SIC 3571. This industry is oriented to the manufacture of diverse kind of data processing systems. In 2001, the largest computer makers in the United States were Dell, Compaq, Hewlett-Packard and IBM. They produced about 40 percent of personal computers shipments in the world according to International Data Corporation (IDC). Dell is positioned as the bigger competitor, but in 2002, Hewlett-Packard acquired Compaq, challenging Dell’s leadership in this sector. (1) The computer industry is organized in several categories such as supercomputers, mainframes, midrange systems and microcomputers. Recently the introduction of a new device, named “tablets” is growing this industry. (1) NEAR-TERM AND LONG-TERM INDUSTRY OUTLOOK
According to the latest preliminary trend by Gartner, personal computers units will increase in 3.8% from 2010 to 2011 worldwide. Comparing to previous projections, 9.3% for 2011 and 12.8% for 2012, this effect has reflected the economical situation in the Western Europe and in the United States in the second half of the year. (2) Gartner analysts commented that while personal computers will continue to be important for consumers and business, purchases can be delayed, also because of cheap and more attractive complementary devices like tablets. These kinds of devices are changing the dynamics for the personal computer market. (2) Tendencies for the long term financial perspective are changing because personal computers are not being preferred as a primary device by new consumers, and older consumers are choosing to extend their actual computers lifetimes instead of replacing them by newer ones. (2) Regionally the computer industry is declining in the USA by 4.2% per year; in Europe, Middle East and Africa high levels of inventory prevented stronger sell-in budget in media tablets and smart phones; in Japan there is a 3% of growth in personal computer and in Asia Pacific 12% of growth.(3)
Dell is a multinational company based in Round Rock, Texas in the United States. It develops, sells and supports personal computers, corporate servers and other related products plus services. (5) It was founded by Michael Dell in 1984 to provision personal computers under the name PC’s limited and later acquired the name of Dell when the company decided to create computers compatible with IBM and since then it has noted some mergers and acquisitions. (5) Dell Inc. participates in the New York market stock under the symbol DELL (NASDAQ). The company went public in 1988 and offered shares for $8.50 a piece. (5) In 1996, Dell change it sales strategy and started selling their products through their website. This direct business model eliminates retailers that add unnecessary time and cost, or can diminish Dell's understanding of customer expectations. The direct model allows the company to build every system to order and offer customers powerful, richly-configured systems at competitive prices. (6) Dell restated its financial statements for fiscal years 2003, 2004, 2005, 2006 and the first quarter of fiscal year 2007. All this information is on Dell’s Annual Report on form 10-K for the fiscal year that ended on February 2, 2007. (7)
Dell has presence world is wide, and here we list a list with the subsidiaries according to Exhibit 21 in form 10-K. (7)(8) (See Appendix 5) APPLE INC.
Apple Inc. is a multinational American cofounded in 1976 by Steve Jobs and Steve Wozniak. Apple designs, manufactures and markets consumer electronics, computer software and personal computers, as well as software services, peripherals, networking solutions, and third-party digital content and applications. Apple core products are the iPad, iPhone, iPod music player and Macintosh computer line-up (8) Apple became a public company in 1980...