Apple is company that enjoys one of the highest stock prices of any publicly traded company in today’s market. In the past year Apple stock prices have ranged from $103.13 to $161.6 in the past year alone (Yahoo Finance 2017). With Apple stock, there are trends during each calendar year that can cause the price to fluctuate. During the months of July and August we can see that the price of stock starts to rise. This could be attributed to time where school is beginning to start up again for that year. During this time, we see massive spending on supplies and equipment that students need to be successful in the classroom. One of these items that we see becoming an increasingly important part of education is a computer. Because of this, we see an increase in the sale of MacBook’s as students head back to school. Another trend that we see during the summer is the apple keynote convention. During this convention, Apple reveals new products to be released later that year. The iPhone 7 debut was envisioned as an industry changing configuration with only one …show more content…
Throughout the past year, Apple stock has had an astounding growth of 45% over the past twelve months, as well as a 10% growth of dividends by 10%. This increase in dividend is expected to increase by 7.43% over the next 12 months. Along with stock price and dividends, earnings per share is also expected to rise. Earnings per share is expected to rise from the current amount of $1.88 to as high as $10.74 per share. Apple’s marketing strategy is designed to keep stock prices high and shareholders happy. This growth in Apple stock is expected to continue to rise with a median change of 8.7% in the next twelve months. The current state of Apple stock is very impressive and market predictions show that it should become even more impressive in the next twelve months. (Financial Times
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
The financial analysis expressed in this paper shows a comparison of two large firms in the communication and technology industry. Microsoft and Apple Inc. both deal in telecommunication gadgets and accessories within the United States and around the world. The paper focuses on the financial comparison of the two companies for two fiscal years of the year 2014 and 2015. A close analysis of the financial ratios is employed in bringing up the comparison. These rates are derived from the balance sheet and statement of income of both firms.
Second once Apple stabilized after year 2019, the prediction of growth is 3%, and Beta was projected to be .96. Again, by using the boundaries stated above: the (Ke), weight of equity/debt, and WACC were as follow 6.34%, 80%, 20%, and 5.63%. These numbers were somewhat similar to its high growth stage; therefore, signifying Apple is still a strong company once it stabilizes. Yet, another reason why Apple can provide such attractive returns. Conversely, finding the Terminal Value (Pt) of the company, which is the value of the company at a future year, projected the PV for stable growth, in this case it was 2020. The (Pt) was over $1 billion, yet again another reason why Apple creates a great investment opportunity. Moreover, by adding all of the PV, including the stable growth year, the intrinsic value of the firm is over $966 million and minus the current value of debt, Apple is still worth (value of equity) over $926 million. This equity divided the current number of shares outstanding; Apple’s intrinsic value of stock is $988.80 per share. By comparison the current stock price, which is $649.79 per share, the stock value is undervalued. Likewise, making (AAPL) a rewarding opportunity that must not be taken for granted.
Apple’s management had predicted its margins to be shrieked for the next 5 years; as a cause of that recession that reshaped the market. The management took a fast and smart decision and they predict the market after they analyzed it and found out that they can make better future by using the low prices of the parts, rather than downsizing.
Apple had nearly $137 billion of cash at the end of Dec 2012. Over the past few years, the Company had been highly successful with the launch of the iPhone 3G in 2008, and which was followed by the launch of iPad in 2010. The Company enjoyed high profitability, and was able to keep its costs at a minimum. The gross margin on the iPhone was between 49% and 58% from October 2010 to March 2012, and the gross margin on the iPad was between 23% and 32% in the same time period. Apple’s capital structure included no debt; hence, there was no outflow of cash for making interest payments.
Apple, Inc. currently has a Price-to-Earnings ratio of 43.70, compared to the industry standard of 36.50, and the S&P 500 average of 20.73. This indicates that Apple has a lower amount of risk than other firms in the computer manufacturing industry and other firms in
These erratic movements suggest that Apple stock will remain volatile in the short run, while posting a slight upward trend towards the end of 2008. We recommend a short term sell option to cut losses. Alternatively, we can also hold the stocks to take advantage of the possibility that the stock prices will rise as predicted by the above diagram from Chartnexus.com.
Customer Relationship Management (CRM): Customer relation management (CRM) is a cross functional enterprise system that computerizes numerous customers serving form in direct marketing, sales, customer service and accounting management. CRM allows a company to distinguish and focus on their best customer so that they can be held as a loyal customer for a longer period of time.
The iPod and iTunes drastically changed the music business and the way we interact with our music players.
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
Apple Inc. is globally renowned as one of the leading companies, especially for its specialization in the personal computers and consumer electronics industry. The company is most well-known for the iPod, a digital music player and Macintosh, a personal computer released in 1984.
This article discuss how supply and demand function in sales and business. In Apple’s case they feel their numbers for demand are not a fair representation for the true demand of iPhones. Apple has decided to not show sales because, they think these numbers will only reflect their available supply. If supply for pre-order is limited then the demand will appear low because, it will only reflect the limited quantity of iPhones available for pre-order. Other factors are cited for possibly decreasing demand such as; people taking time to buy the new iPhone because they are trying to decide if the costly upgrade is worth it. Apple’s blackout of prices is due to their conclusion that consumer demand for their product will not be reflected by the early sales so, sharing them with the public is counterproductive.
Apple Inc. has launched its iPhone in January 2007 (telegraph) as a new product in the market with latest technology and it was the first multi touch smartphone adding the feature of iPod and received an overwhelmed response by selling 270000 units. It had created a new record for a new company like apple, iPhone had laid a stepping stone for the success of Apple and till this time iPhone is the best seller product of Apple Inc. during first quarter of 2016 apple has sold over 74 million iPhones worldwide. (statista, 2016).
The phone 8 will dispatch in the following ninety days. That also if the organization sticks to the convention and discloses its subsequent exquisite-phone 8 the first or second week of September, as it's expected since the advent of the phone 5 in 2012. This year, a melody of up-to-date network sources has introduced troubles about the organization's capacity to release it on the usual calendar.
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.