Revenue Recognition: Apple Inc.
THE COMPANY
Our analysis of Apple Inc. will incorporate the general overview of the company and how it records it revenues. We will observe how they make an honest effort to be within compliance of all accounting standards according to the Financial Accounting Standards Board for recording and disclosure of its income. Apple’s leading competitor, Google Inc., will also be examined to see whether they are comparable to Apple and still within compliance of the Securities and Exchange Commission and FASB for revenue recognition. Apple takes on design, development and marketing of personal computers, portable digital music players, and media devices that exceed the reach of everyday needs. The company also
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This is showing a full discloser of how and when they are showing revenue on their financial statements. This is in direct accordance with the Code of Federal Regulations under code 210.3-03 for instructions for reporting income, which states there must be discloser of income is provided and that these disclosers are to used in cross reference of all the financial statements (Code of Federal Regulation, 2012). Now that we have seen how and when Apple records its actions, taking a look at its leading competitor will give us a better view of how differentiated companies in the same industry can be.
THE COMPETITOR Google Inc. provides the biggest threat to Apple Inc. due to the hugely growing line of the Android market and their overwhelming ability to provide advertising to vendors. This seemingly puts heavy pressure on Apple to keep up with new products and to continue to create the next best thing. Google provides a much different way of recording their revenue. This is due to the fact that they receive revenue in a much different way. Google, unlike Apple who mostly sells products over services, sells services over products. The main source of income they receive is from providing there vendors with advertising space. As much as 96% of the company’s revenue comes from this source (Google Inc., 2012). Within this variation, they recognize revenue a little differently. Since most of the revenue comes from advertising, Google collects most revenue on a
Apple Incorporation is one of the largest organizations dealing into Information Technology. Apple has a host of products ranging from Laptops, Desktops, Mobile Phones and Multimedia Devices. The company has been extremely innovative in the field of multimedia and it owes it success to one of the greatest innovators, Steve Jobs. The company has always believed in innovation and that is the major reason why it has been so successful in the mobile phone segment. In recent years Apple is second only to Samsung in the Global Mobile Phone industry. However the operations have been largely based in the United States and in times of recession any organization needs to focus on economies of scale and thus focus on growth
Apple is an American multinational corporation which designs, manufactures and markets a range of consumer electronics and software products (Apple Inc., 2008). At the end of last fiscal year, Apple’s worldwide annual sales amounted to $32.5 billion, an increase of 35% from 2007 (Apple Inc., 2008). Not surprisingly then, was Apple voted America’s most admired company, also topping the global survey (Fortune,
Since 1976 Apple’s innovation has helped the company become a market leader in computer and mobile electronics. Through this time the company has faced a number of challenges either it be an internal power struggles or criticism from the media for certain aspects of their business model. This report covers five different issues that the company is facing or may face in the future.
Apple is a global company represented in many parts of the world, but born in the United States by computer wizards by the names of Steve Jobs and Steve Wozniak who founded the company back in 1976 (Capon, 2008). The organization deals with the design and sale of computer hardware, software and offers tech support to its customers. Examples of the hardware the company manufactures and sells include mobile phones, personal computers, iPads, tablets and iTunes with associated brands, like the MacBook and iPhones that represent Apple’s driving force towards its success. It is recognized as a brand leader in consumer electronics by the world in terms of quality and customer satisfaction and despite the wide product range, Apple manages each product in a distinct way that is a single business unit (Mittan, 2010).
Apple Inc. commonly known as Apple has effectively managed to be a successful company in a very competitive consumer electronics industry by been innovative and differentiating the company’s products with similar products in the markets by offering high quality products and good customer service while the actual manufacturing of the products is outsourced to trusted third party suppliers. On a wider perspective, the company has set high standards that even the company itself has to be on its level best to maintain the standards that it has set. Over the last few years, the consumer electronics market has
Google receive their revenues from the advertising of their products. All services Google provide like Google Doc, Google Maps, Gmail, etc.. are expensive to create, but having users spend time on Google applications increase the revenues for the ownership. Google stock price has been increasing recently which helps owners earn money off from creating applications like Google Doc. The more applications Google create the more money they earn. Recently the world has been depending on IT in their entire life. People now would rather work on a fully online based application like Google Doc than downloading applications like Microsoft Office.
Apple’s business model is geared towards the hardware and software of its products. Also they focus on its mobile software applications, which is widely popular among customers due to the app store iPhone users. the applications on the app store are available for user on apple products and one of a kind compared to the less popular applications offered by Google and Facebook
The multi billion-dollar corporation, Apple Inc., designs and manufactures some of today’s highest technological gizmos and gadgets. Among their best known products are the Apple and Macintosh computers, iPods, iTunes, iPhones and iPads. Apple is one of the most powerful and influential high tech companies in the world. The success of Apple Inc. stems from the innovation and visions of co-founder and entrepreneur, Steve Jobs, the excellence of the stylish, user-friendly products, and the ability to create innovative products that consumer’s desire.
Apple Inc., formerly Apple Computer, Inc., is a multinational corporation that designs, manufactures and markets mobile communication and media devices, personal computers, and portable digital music players, including a variety of related software, services, peripherals, networking solutions, and third-party digital content and applications. Its most popular hardware products are the series of Mac computers, the iPod, the iPhone, and the iPad. Its software includes the OS X for Mac computers and iOS operating systems for mobile devices, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and production suites.
Our group decided to analyse the company Apple Inc., listed on Nasdaq Market as AAPL. The analysis was mainly based on the annual financial report of the company for the fiscal year ended on September 29th 2007. Apple Inc. is today one of the most
Apple (NASDAQ:AAPL) is one of the world leaders in the research, development, marketing, sales and service of personal digital music & video devices, in addition to personal computers globally. Its' innovative music and digital content delivery service, iTunes, has sold over 1 billion songs to date. As of the close of their latest fiscal year the company generated $156B in Sales and generated a Gross Profit of $68B earning a Net Income of $41B (Apple Investor Relations, 2013). The intent of this analysis is to evaluate Apple's strengths, weaknesses, opportunities and threats (SWOT) and provide an analysis of each. The cause, impact and recommendations for each specific strength, weakness, opportunity and threat are provided along with an action plan of how to maximize strengths and opportunities and mitigate the effects of weaknesses and threats. The Apple brand is among the most valuable in the world and its ability to innovate with successive product generations unmatched, yet this has led to a high dependence on its iPhone and iPad platforms, to the exclusion of entirely new businesses. The Apple iTunes platform and ecosystem delivers 30% of all profits and a significant portion of overall revenue, making this single business a stabilizing force in their strategic product and services roadmap (Apple Investor Relations, 2013). Despite these challenges however Apple continues to attain
Google’s total assets have steadily increased dating back from 2008 to 2012. Some key figures to point out in their assets are the slow growth between the second half of 2008
We chose to research Apple Incorporated, one of the most innovative companies of our generation. It is safe to say that nearly every one in the US and many foreign countries have used or at least heard of Apple products. We will be looking at the macroeconomic variables that impact Apple’s business as well as how the current developments in the industry have impacted Apple’s financials and we will also look at how Apple competes with other firms in the same industry.
Apple Inc. is an American multinational technology business headquartered in Cupertino, California, established by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to sketch, fabricate, and sell consumer electronics, computer software, and online services. Apple is the world 's second-largest information technology company after Samsung electronics, the world 's largest technology company by total assets. On November 25, 2014, Apple became the first U.S. Company to be treasured at over 700 billion dollars, besides being the largest publicly traded corporation in the world by market capitalization. Apple is a very successful producer of computer software and hardware, however it has demonstrated internal and external areas that need enhancement along with other areas that prove to be profitable.
Apple Incorporated, formerly known as Apple Computers Incorporated, and more commonly known just as Apple, has lead the way in technology and innovation for consumer electronics with their slender storage capacities, vibrant displays, and incredible touch screen products. When they first started, their focus was more on personal computers for customers, but as the company has aged, so has their focus expanded towards this idea of consumer electronics as a whole. Seeing as they now offer popular devices including, but not limited to, computers (Mac Book), home theater (Apple TV), phones (iPhone), tablets (iPad), and media (iPod), it can clearly be