Business Analysis of Apple, Inc.
Padma L. Dongre MGT521
Nov 28, 2011
Dr. Stephen McCann
Apple Inc. designs, manufactures, and markets personal computers, portable digital music players, and mobile communication devices. It sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, retail stores, direct sales force, and third-party wholesalers, and resellers. In addition, the Company sells a variety of third-party Macintosh ("Mac"), iPod, iPhone, iPad compatible products, including application software, printers, storage devices, speakers, headphones, and various other accessories and peripherals through its online and retail stores. The Company sells to education, consumer, creative professional, business, and government customers. The Company's fiscal year is the 52 or 53-week period that ends on the last Saturday of September. The Company's strategy also includes expanding its distribution network to effectively reach more of its targeted customers and provide them with a high-quality sales and post-sales support experience. Financial Analysis: Detailed financial statements are available in Appendix A. This information provides immense detail in the financial status of Apple, Inc. over time. Combined with data regarding product sales, much can be derived to analyze Apple’s strength. Revenue rose 40% in 2011 when compared to 2010.
2011 Versus 2010 Revenue and Net Income: Revenue rose 40% in 2011 when compared to 2010. Net income during 2011 was $6.62 Billion and revenue was $28.27 Billion compared to net income of $4.31 billion and revenue of $20.34 billion in 2010. Gross Margin: Apple’s strength is reflected in its gross margin percentage of 44.2% in 2011 which increased significantly from 36% in 2010. Cash Flows: In 2011, Apple Inc. increased its cash reserves by more than double from 2010,...
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