MBUS 610 Econ Environment of the Firm 12 Apple Inc. Economic Firm Analysis Trey III 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 …show more content…
Diversity in products and their prices helps Apple remain an inelastic company, regarding their demand. If a price rises for one of their products, there is sure to be another product that moves into that previous product’s price range that is still comparable in design and quality. There will always be people to buy the more expensive items not only because of Apple’s positive brand recognition and loyalty, but because Apple consistently produces quality and innovative products; including, if Apple finds a defect or fault, they fix the problem for free or replace the product altogether. With Apple being so far ahead of their competition, the only problem one can foresee in Apple’s future is how long they can sustain such innovation before they plateau. Apple does a phenomenal job at releasing their innovative products before their competition, but if their innovation cannot hold steady, this may lead to changes in demand for their products considerably. This can be seen with their release of the iPhone, the first successful touch screen cellular phone. Although people swarmed to the iPhone when it was first released because of its advanced technology, as the years have passed, other similar designs, including those with android and windows based operating systems, have drawn a considerable portion of the market. A clear representation of Apple’s attempt to regain some of this market can be seen when the iPhone was released to Verizon Wireless’ customers in
By making their products differentiated from the competition, Apple can establish their own price. Apple believes that people will pay some more money if they know that what they are buying is better and more reliable. That is also the reason why Apple sells the same products all over the world, making no selection or differentiation depending on where the market takes place. The high costs of Apple’s products are the one of the reasons why Apple Inc. preferred to be
The first steps in the mobile phone market let us understand once more what the key points in Apple strategy are. Innovation and Exclusivity go together, a higher-than-the-average price place the new device as a cult and trend object, something everybody want to have, a real status symbol. In few words Apple probably believes that a key concept in Innovation is the creation of a need. Along with the innovation in design, Apple is a pioneer and a leader as well in Environmental issues, another innovative approach that is granting more and more importance among customers of any product and people in general, due to very sensitive issue like Global Warming and home safety.
In the last decade Apple Inc. has yielded exponential growth. As a company, the imaginative and invocative approaches of technological product advancements have enable Apple, Inc. to achieve an elite status among technology companies throughout the world. Apple, Inc. serves as an inspiration to many companies through higher benchmark standards they created. Though their product margin is not as vast as most technological competitors, Apple, Inc. innovates and releases a new product to consumers. Apple, Inc. has proven to able to move and create new markets with one product that allows Apple, Inc. to rain as the elite player in technology.
They have the ability to create products that people will buy despite the state of the economy. Apple is a unique company in the way that there is a very prominent amount of consumers that will buy everything that Apple puts on the Market. This type of supporting allows Apple to charge higher prices for their products. In saying this alongside Apple’s consumer loyalty they have created numerous low priced products. The IPod Shuffle is an excellent example, which can be purchased directly from the Apple website for just $49.
Store. Apple Inc. was founded in 1976 by Steve Jobs and Steve Wozniak after Wozniak
Apple, incorporated. Created by innovative CEO Steve jobs (who recently passed away) and with the support of Steve Wozniak, is now a multinational corporation that’s focuses on consumer electronics, computer software, and commercial servers. With its broad line of revenue including: the apple computer, iPod, iPhone, iPad, and Mac apple strived for success with the idea to reach all consumers as its target market. The company started from Steve Jobs parent’s garage to its first building in Cupertino, California in 1977. The first computer (Apple I) was created in 1976 and sold to a local computer store called “The Byte Shop” offered at 500 dollars per assembled computer. This became the first computer to display text at 60 characters per
The company I chose to conduct my analysis on is Apple because this company ranks as
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
Established in 1976, Apple ignited the personal computer revolution with the Apple II and the Macintosh. Today, Apple designs, manufactures and markets personal computers, portable digital music players and mobile communication devices as well as related software, services, peripherals and network solutions. Apple sells its products worldwide through its online stores, retail stores, direct sales forces and third party distributors to its core customers—consumers, educational
Executive Summary: The purpose of this paper is to analyze Apple’s financial standings. Apple is currently one of the biggest smart phone, tablet, and computer producers in the world. For the last 10 years they have successfully produced new phones which outsell their competitors. Apple has continued to show year over year growth, which has made it a wise investment for investors looking to add to their business portfolio. We will be using their previous years reports to make an in-depth analysis of the Apple Corporation. By using various financial reports, we will determine Apple’s financial stability to determine whether Apple will be a wise short term or long term investments.
Apple, Inc. (formerly known as Apple Computer, Inc.) was incorporated in the State of California in 1977. Apple currently designs, manufactures, and markets a variety of computer and personal electronic products, including Macintosh computers, and the iPod digital music player. AppleÕs key markets are consumers, creative professionals, educational institutions, and business users.
Apple Inc. is an American Multinational corporation that designs, develops and sells consumer electronics, Software and personal computers. Apple Inc.’s best known hardware products are the iPhone smartphone, ipod media player, the mac line of computers and the ipad tablet computer. Apple Inc. is the world's second-largest information technology company by revenue after Samsung Electronics, and the world's third-largest mobile phone maker after Samsung and Nokia . Apple Inc.’s success in recent years can be attributed to its emphasis on Innovation. Apples Inc.’s iPhone, iPod touch and iPad were some of the most innovative consumer electronic products the market had seen in years. The purpose of this report is to analyse the innovative environment and technology development process that set the scene for apple to dominate the consumer electronics market.
Apple’s iPhone products have been cutting edge in several areas, but Apple also have their disappointments. Apple is said to be a worldwide driving force in the technological business, but they don’t have possession of the smartphone marketplace like they previously did. Competitors such as Samsung and Lenovo have done a better craft of perfecting and preparing toward the variations and growth in technology.
Companies pay dividends to shareholders, which is a distribution of the company’s earnings. They can be issued as cash payments, shares of stock, and other property. A company’s board of directors pay on dividends at their discretion (Ross 248). In 2013 Apple paid a total of $10.5 billion in dividends, and $11 billion in dividends in 2013. As of October 2014, Apple Inc. reported having 26,112 recorded shareholders. In 2014 the company acquired Beats Music, LLC and in turn issued 5.1 million shares of its common stock. The company plans on increasing dividends on an annual basis. In 2014 the company utilized $45 billion to repurchase common stock and in result paid $11.1 billion in dividends, the company also repurchased stock in 2013 and paid dividends on that common stock. Payment on dividends in 2012 was far less than the payments in 2013 and 2014, only totaling $2.49 billion. The drastic increase it payments in 2013 and 2014 was due to the repurchase of common stock and the issuance of stock after the Beats Music, LLC acquisition (Apple Inc. Form 10-K. 2014.).
The iPod and iTunes drastically changed the music business and the way we interact with our music players.