FIN 534 – Financial Management
The focus of this analysis is to perform a thorough examination of Apple, Inc.’s financial performance over the past three years and its growing success since being founded in 1976. Apple’s main focus is on design, manufacturing and marketing of personal computers, peripherals, computer related software, digital music player and related accessories, and is maintained by. The portfolio of company is structured around Mac computing systems, iPods, iPhones and servers. Apple has made drastic financial strides over the past few years, which can be easily illustrated through this analysis. The company recorded revenue over 2009, 2010, and 2011 as $42,905, $65,225, and $108,249. With these increasing numbers year after year, Apple has blown away the industry averages while becoming a true contender in the fight against Microsoft, IBM, Dell and Hewlett-Packard. In choosing a company for the analysis the decision was clear because of the apparent strength of Apple as a company and the success that they are realizing during these tough economic times. Consumers are still looking to buy Apple products like MacBooks and iPhones even though times are tough, there is still the strong desire to get the latest and greatest technology no matter the cost.
Apple Incorporated: Financial Analysis
Apple Incorporated (NASDAQ: AAPL) was founded in 1976 by Steven Wozniak, Steven Jobs and Ron Wayne based in the comfort of Jobs’ garage and is now headquartered in Cupertino, California employing over 40,000 personnel. Apple’s current operations are based on the design, manufacturing and marketing of PCs (personal computers) and software related to it. Its newest endeavors brought them into offering a business of portable music players, accessories and services. The products and services of company include an entire line of Macintosh desktops and laptops; iPod digital music player; iPhone digital music player and smart phone; iTunes Music Store and an ever-growing portfolio of peripherals and accessories for all of their product lines (Simmons, 2007).
The company makes it a point to leave no stone unturned when it comes to getting its products out to the consumer. Their main focus of a consumer base is structured around individuals, small and midsized businesses, enterprise, education, government, and creative consumers. The company operating system provides a highly stable environment for users leaving little or no possibility of intrusion by hackers thereby creating a solid alternative to an inconsistent Microsoft environment. The Apple Company reported 15.7 billion dollar in revenue in 3rd Quarter of the year 2012, sixty one percent raise over the quarter of the previous year, also a seventy eight percent flow in its quarterly profit, maintained by the demand of iPad and iPhone. Apple reported that the antenna problem of iPhone 4, a highly publicized signal algorithm fault on the device, didn’t have an important effect on demand. In addition, company stated that “newly released iPad”, remembered as a supportive competitor to the Macintosh computer, didn’t result in cannibalization, as sales of Mac increased thirty three percent quarter over quarter. Recently, there has been rumor that exclusivity contract of Apple with AT&T is set to expire, which would promise well for the Apple Company as it would be permit for a more flexible network of distribution and fresh agreements with other wireless carriers. Bloomberg reported on June 29, 2010 that non-public information was disclosed by two insiders that Apple's iPhone would be started selling by Verizon Wireless, on January 2011. Perhaps, the most remarkable figure in financials of Apple is crash balance, with cash and standing of cash equivalent at more than fifty one billion dollar as of January 2011. Steve Jobs CEO has said that to pay a dividend or buy back...