Apple Incorporation : Business Practices Based On Geographical Location

Apple Inc. designs, manufactures, and markets personal computers, mobile communication devices, and portable digital music and video players and sells a variety of related software, services, peripherals, and networking solutions. The Company sells its products worldwide through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. (Source: Company Form 10-K)

Sales - Apple has a specific functional area based on sales. The sales department of a business handles how the products will be sold and helping customers find a suitable product for their needs. They organise sales promotions (or advertising), respond to customer enquiries about their products, and negotiate discounts for customers; which enhances customer satisfaction and keeping customer records up to date. E.g. Apple found that distributing their phones to sell at other shops would broaden their market and create a lot of word of mouth which would be essential to the growth of the business. The shops they distribute the phones to always try to find ways to discount their customers which always creates customer satisfaction.

Distributions: Apple products are sold by other distributors, more than 30 % of sales revenue is generated through network carrier distribution centers. Apple has retail stores distributed around the U.S and the world.

Apple has benefitted significantly from globalization and from technology change. For example, the company started primarily as an American company, but globalization has allowed Apple to become a multinational operation. The company only derives around one-third of sales form the Americas according to the annual report, a figure that includes Canada and all of Latin America in addition to the United States. The company therefore can be said to sell globally. Sales in Asia-Pacific were growing especially fast, and the company has numerous flagship stores in the region.

Increasing gross margin is a positive parameter and shows the firm’s developing healthy. Gross margin is calculated by subtracting the cost of goods with the total sales revenue and then dividing it by the total

It is noted in table no.1 that the gross profit margin has been increasing during the past four periods of time, starting from 30% in 2012 to 35% in 2015 this is related with the increment of sales, the higher the better and it means that the company has been doing a good strategy with prices. This indicates a financial success and means that the product is viable for the company.

This analysis of this project has been established by its 4 group members researching tactics used for international marketing for Apple, Inc., and to secure funding for the additional growth in marketing status of the company. The purpose of the research was to explore international marketing strategies such as distribution, pricing methods, and promotion and advertising strategies. The collection of data was done through the web by looking at news articles, Apple, Inc.’s website, and analyzing data from previous years of the company. Some findings included the products that are distributed around the world including iPhones, iPads, iPods, and Macintosh computers. The distribution process of Apple, Inc. begins with a China based product setting, then moving to Apple’s logistic center across numerous regions, then to different service

The positive effect on gross margin from higher sales volume and a favorable shift in product mix were offset by increased labor costs and lower turnings revenue.

The gross profit margin appears to be more stable compared to the sales value and volumes that usually show mobility. However, a small change in gross profit margin indicates a substantial change in overall profits.

The overall Gross Profit Margin increased by 0.43% from 33.16% in 2014 to 33.59% in 2015.

Apple is present on a number of markets through various models from direct presence to franchise or joint-venture. Company is currently counting more than four hundred fifty retail stores worldwide. Biggest markets are China and United Sates of America with strong significance of Europe and South Asia and Australian markets (Business Insider, 2015).

In addition to selling itÕs products directly to consumers thru their website, Apple utilizes third-party wholesalers, resellers, and value-added resellers. Apple also runs a retail division, with 165 retails stores in operation at the end of FY2006.

Apple Inc. was founded in 1977. To date, this company has continually offered a wide range of products to meet the growing demands of customers all over the world. Apple not only produces and sells computer software and cellphones; they also distribute consumer electronic products around the globe. Increasing the value of shareholder and coming up with new inventive products is a constant process for Apple, and Apple continues to do so with their popularity around the world with about 301 store locations in 10 different countries. Aside from all of

* Apple Incorporation has a strong international presence. It operates 301 retail outlets in 10 countries and has online shops where software and hardware products are sold.

Apple Inc. is the most revered corporation of the USA, both in terms of brand equity and market capitalization. The company’s international competitive strategy is focused on the innovative product development, which Apple controls through its eight business segments: Portables, Desktops, iPads, iPhones, Music related products and services, peripherals and hardware (Lam et al. 2005).