Fin 534

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  • Topic: Balance sheet, Asset, Apple Inc.
  • Pages : 14 (4004 words )
  • Download(s) : 133
  • Published : December 15, 2012
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1. Company Overview.
The focus of this analysis is to perform a thorough examination of Apple Computer’s financial performance over the past three years and its growing success. Apple maintains its focus on the design, development and marketing of personal computers, related software, peripherals, portable digital music players and related accessories. The decision of choosing Apple for the analysis is for the reason that this company has visible strengths and success. Apple has made drastic financial strides over the past few years. The company recorded a 44.5% increase in revenues over 2012 reaching $156.51 billion with a net income of $41.73 billion. With these increasing numbers year after year, Apple has blown away the industry averages and becoming leader in personal computer and electronic industry. What started as merely an idea for inventors Steve Jobs, Stephen Wozniak and Ronald Wayne eventually grew into one of the most popular personal computer systems today. In 1976, the Apple I computer began its journey as purely a shell consisting of only a circuit board that first came to life in the garage of Steve Job's parents home. Although at that time it was not very practical or popular among gamers and gadget enthusiast, it would soon set the stage for the personal computer to come. A monument of innovation, the Apple I computer was an example of the capabilities that resulted from the innovative thinking. It wouldn't be long however before the Apple II computer would make its impressive debut with its new plastic external case and colorful graphics (Hitt, Ireland, & Hoskisson, 2011). Today, the company’s portfolio is structured around Mac computing systems, iPods, iPhones and servers. Apple Incorporated (NASDAQ: AAPL) is now headquartered in Cupertino, California employing over 47,000 US personnel and 70,000 employees worldwide (Golgowski, 2012). Apple over the past 36 years has grown into a very innovative company that is recognized on an international scale. During this time however, they have been in a never ending battle to stay on top of the market in regards to technology, products, and services in their marketApple’s current operations are based on the design, manufacturing and marketing of personal computers and its related software. Its newest endeavors brought them into offering a line of portable digital music players, accessories and services. The company’s products and services 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.

The company sells its products worldwide through its online store, retail outlets, a direct sales force along with third-party wholesalers, resellers and value-added resellers. Their main focus of a consumer base is structured around individuals, small and midsized businesses, education, enterprise, government and creative customers. The Apple 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.

2. Overview of company’s vulnerability to current financial threats From day one, Apple’s core strategy has been innovation and constant improvement. They have consistently been a leader in introducing new products and improving on existing products to keep ahead of the competition. Throughout its history, Apple has taken steps that have propelled Apple into the successful position that it occupies today. Now, one of Apple’s successful approaches is their supply chain strategy. What they have done was that they closed down Apple's manufacturing plant and outsourced most of Apple's production to overseas companies, which is Foxxcon. This does a few things for Apple. It allows the company to preserve capital, which would have to be...
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