Apple Inc. Is The Most Valuable Brand On The Planet

Apple Inc is an American multinational organization located in the middle of the Silicon Valley, California. It is focused on designing and developing the personal computers, related software products, and electronic products such as MP3 players and iPods. Apple Inc’s main products are iMac, iPod, iPhone and iPad. Apple Inc was founded in 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne. Steve Jobs resigned as the Chief Executive Officer (CEO) of Apple and was replaced by Tim Cook who was the Chief Operating Officer (COO) before he was named CEO. Apple has approximately 92,600 full-time equivalent employees and an additional 4,400 full-time equivalent temporary employees and contractors.

The other nine are limited to only official iPhone pages which merely provide information about Apple products (Anon., 2010) .Therefore although Apple is avaible in almost all areas of the world the extent in which it is availble is limited. Apple is a constantly growing company so it may not be long before it is fully available world wide which means Apple is limited in how globally distanct it is. Futhermore Apples ability to expand may be effected not only by Apples own ambition and desire to do so but also by the restrictions placed on a nation by its government. For example in china apple had no real presence until January 2014 (Bloomberg, 2013) where it was only through agreeing a deal with a Chinese network ‘China Mobile’ was apple able to gain a foothold in china despite many of the components of there products being assembled in that general region. This therefore also shows a limiting factor to Apple’s ability to being global in distance by highlighting the power and influence states can have on a company’s ability to expand into those regions.

Apple is not only a known brand, but also a reliable one. Many consider them, to be an electrical giant. The fact that Apple decided to take its company global created both advantages and disadvantages, both local and overseas. Here are some of the pros that are associated with Apple's decision to go global. Apple created 700,000 jobs in overseas countries, decreased the overseas unemployment rate, decreased labor costs, increased profit margins, and productivity to meet high demands for their products. All of this was possible because they entered into a more flexible, diligent, and industrialized workforce in the overseas market.

America has since adjusted to the country status as an interdependent global economy” according to Kline (1984). Apple Inc. is one company with success in the global markets.

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

Apple being one of the most recognizable companies on the planet has its shares of legal issues, mainly from the patented technology it tries to protect. Companies like Samsung, Xiaomi and to an extent Huawei have constantly copied apple. Since 2011, apple and Samsung have continuously sued each other and in an unceasing effort to dominate and control the market shares in the mobile field. This in turn has turn into an International patent war with no real ending in sight.

Firstly, the currency has lost a lot of value compared to the U.S. dollar, the companies in Brazil (Sao Paulo) are very cheap for American investors. The implication of this is evident and clearly beneficial to Apple. Since Apple provide its services through third party companies, it would be cheaper to buy the services of these companies in Sao Paulo thereby decreasing the running cost as a result the cost of production of Apples products there by increasing the profit margin.

Furthermore, the most significant environmental threats that currently confront the organization would be political factors, economical social factors. The political factors stem from uncontrollable circumstances in relation to geographical precariousness. Apple has outsourced to different countries, for instance, Ireland, China, Korea, Czech Republic, and Cork to reduce operating costs. If there is any political instability or problems in these countries, there could be delays in manufacturing, and it could affect Apples popularity in the eyes of the purchaser. Apple also relies heavily on the lower cost of manufacturing in China.

(a) How has Apple capitalized on the globalization of production? What advantages does manufacturing in China offer the company?

Daisuke Wakabayashi’s article on Apple’s market share growth and increase in gross margin brought to light. Wakabayashi is surprised by Apple’s ability to gain market shares while still charging higher prices than their competitors. Apple claims the success is to due to their latest products (iPhone 6) luring customers away from the rivals at this latest phone release cycle, more than the normal change over. In response to the increased revenues, Apple has increased dividend payouts to 11%. In addition, Apple’s share-repurchase program increased by $50billion. Even through this massive buy back program and dividend payouts, Apple’s “cash pile” continues to grow. China is playing a huge part in the unheard of growth. With more citizens moving up in the social economic ladder, purchases during the Lunar New Year (a time with a general increased spending) have increased exponential. However, not all is good overseas for Apple’s revenues growth. The dollar is currently stronger than other currency and has resulted in a 6 point decrease in revenues. Apple

The iconic American technological company Apple is worth a staggering $498 billion (CNN Money, 2016) and has the biggest customer loyalty base. This once garage operating company start-up is now one of the largest multi national companies taking not only the millennial by storm but also our baby boomers. People of all ages are enjoying the innovation and originality of Apple products. Apple has a growth rate of 44% annually (CSI Markets, 2015) and makes up 35% of the global technological market (Edwards 2014). Although Apple may operate out of California they have a vast presence overseas, especially in Eastern Countries. China is where Apple manufactures all of their crazed products annually. 71% of smart phones are manufactured in China (Ibisworld 2016). If Apple were to move manufacturing of their products to the US it would cost the company $4.2 Billon US (Forbes, 2013). Many multinational companies call China home to manufacturing due to the low cost of in capital, undervalued currency, energy and tax incentives.

The Apple Computer Company is possibly one of the most innovative technology companies to emerge in the last three decades. It was established in 1976 and went public in 1980, founded by Steve Jobs and Steve Wozniak and is one of the leading technological companies in the world (Gupta & Prinzinger, 2013). It is responsible for bringing to market such products as the

The multinational technology company Apple Inc. is number three on the current Fortune 500 list and a Dow Jones Industrials Company with a revenue of $215.6 million. Also, an S&P Global 100 company, Apple is a leader in the industry in profit, revenue, market capitalization and consumer prestige. By creating alliances with IBM and Cisco Systems Apple has increased its penetration of the enterprise market. Notably, around 60% of the revenue comes from outside the Americas. Apple operates in the Americas, Europe, Greater China, Japan, and Rest of Asia Pacific (Apple Inc. Company Information, 2017).

Apple Inc, international corporate-level strategy is to focus on selling their product on first world country and manufacturer their product in the third world countries due to labor is cheaper and it’s more convenience for the company. The company makes their products based on demands of the consumers; their major goal is to serve the technology market with the latest technology, selling the latest device that every customer wants to obtain at a very expensive price. The company keeps their modern image with their devices and computer, so they can keep attracting customers.

Apple brings huge impact to the economy as it provides its services like introduction of smart phones. It has achieved excellent results by earning good amount of revenues as there high sales. There is s huge demand for iPhone by the consumers in the market and the consumers in China are having a high willingness and also the ability to pay for the products of Apple.