Apple Inc : A Global Leader

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

330-10-30330-10-30-1 The primary basis of accounting for inventories is cost, which has been defined generally as the price paid or consideration given to acquire an asset. As applied to inventories, cost means in principle the sum of the applicable expenditures and charges directly or indirectly incurred in bringing an article to its existing condition and location. It is understood to mean acquisition and production cost, and its determination involves many considerations. 330-10-30330-10-30-2 Although principles for the determination of inventory costs may be easily stated, their application, particularly to such inventory items as work in process and finished goods, is difficult because of the variety of considerations in the allocation of costs and charges.

Apple the pursuit of perfect, it also led to the growth of its ups and downs. Jobs not willing to give up work and control anything, especially when it may affect the customer experience. But he was faced with a problem. There is a part of the process he does not control: in a store to

Apple Inc. always wants to be in the increase sales non decrease situations. When Apple

Apple (NASDAQ:AAPL) has emerged as the dominant global manufacturer and marketer of advanced personal computer, desktop and consumer electronics products including the iPod, iTouch and iPhone Series of MP3, tablet PC and smartphone products. Apple's innovative approach to new product development requires intensive coordination and confidentiality on the part of suppliers, as the company will often move quickly from market test to launch in a matter of weeks. The speed and agility Apple moves with is exceptional given its size and the highly competitive nature of the industries it competes in as well (Franke, Schreier, 2010). While best known for its personal computers, MP3 players, tablet PCs and smartphones, Apple is also a leading innovator in the area of systems development and operating systems as well (Apple Investor Relations, 2012).

The world’s leading software and electronics manufacturer “Apple” has revolutionized business operations in America. Apple’s “global ingenuity” (Robbins & Judge, 2013, p. 35) or its ability to use comparative advantages to advance its operations is a game changer. In acknowledging Apple’s global stance, we consider the pros and cons for business decisions that propel the company forward, the expansion of its workforce outside of the United States, and the increase of employee diligence and flexibility at manufacturing facilities internationally.

One of the most innovative companies of the 21st century, Apple has the financial disciple and strength most companies aspire to have. Sound financial revenue recognition polices and solid financial ratio’s is the reason Apple’s market value is projected to exceed $1.0 trillion in 2017. This paper will discuss Apple’s revenue recognition policies, and key financial ratios.

Based in Cupertino, California, Apple Inc. has become one of the titans of the technological industry in the 39 years since it was created in the spring of 1976. This growing company employees over 115,000 people and has 450 retail stores in 16 different countries. With an annual revenue of $233 billion in 2015 Apple Inc. is the most prosperous technological company in the world. Along with its many retail locations Apple also runs the online Apple Store making it a truly global brand. Over the years Apple has expanded their product line; in its infancy the company specialized in personal computers but more recently the main product line is phones and tablets. Apple’s other significant products include computer software and other consumer electronics (iPod, Apple Watch, and Apple computers).

For analysis sake, the transition from LIFO to FIFO method helps one to evaluate the up-to-date costs of inventories and debt paying capabilities as well as portraying their uninflated inventory turnover values (Subramanyam, 2014). Additionally, since inventories often represent significant percentages of a company’s assets and inflation leads to price increases overtime, LIFO to FIFO restatements can allow analysts to compare companies with different inventory valuation methods (Investopedia, 2016c). More specifically, investors can assess each method’s short and long-term effects on values such as tax expense and net income (affecting earnings

In 2007, total assets have increased significantly by 48% from 2006. Current assets are 86.62% of total assets in 2007, up from 84.33% in 2006. From the trend over the last 5 years (2003-2007), Cash and Cash Equivalents (CCE) have grown strongly by 175% while total current assets have grown significantly by 273% in the same period. This growth in current assets is also reflected in Apple’s Quick Ratio and Current Ratio which have improved marginally in 2007 to 1.83 and 2.36 respectively. Apple`s ratios are favorable compared to its competitors, e.g.

Inventories: Managerial choices about whether to use the first-in, first-out (FIFO) or last-in, first-out (LIFO) method of inventory valuation and how to treat obsolescence, spoilage, shrinkage, and even outright fraud, affect estimates of inventory values.

was renamed Apple Inc. on January 9, 2007, to reflect its shifted focus towards consumer

The company started off as “Apple Computer,” best known for its Macintosh personal computers (PCs) in the 1980’s and 1990’s. Despite a strong brand, rapid growth, and high profits in the late 1980s, Apple almost went bankrupt in 1996 (Kim & Yoffie, 2010, p.1). This can be explained that Apple has become larger and more significant than other competitors put together in 1980. Because Apple failed to innovate in 1996, the company almost went bankruptcy but eventually Steve Jobs took Apple from bad situation to the company that can make billions of dollars through promoted itself as a hip alternative to other computer brands. Apple highlighted its computers as the world’s “greenest lineup of notebooks” that were energy efficient and used recyclable materials. The goal was to differentiate the Macintosh amid intense competition in the PC industry (Kim & Yoffie, p.4).

This paper aims to highlight and discuss the major challenges and opportunities which Apple Inc. faces while bringing innovation in the four primary areas of its business operations; including product innovation, process innovation, marketing innovation, and organizational innovation. The major focus of the paper is towards discussing the combination of all these processes which this organization follows and the major challenges which it faces in the course of its innovation or change strategies. The paper concludes by summarizing the importance of innovation for Apple Inc. in the light of the whole discussion.