Apple Inc. Executive Summary The purpose of this report is to provide information about the company known as Apple Industries. It is also to give the evaluation of the interdependence between the 4 key business functions and how they handle the 4 key business functions in Apple INC. Apple Inc, previously known as Apple Computer Inc. has is a multinational corporation that creates goods such as consumer electronics, personal computers, computer software and commercial software, and commercial servers, and distributes digital media content. Apples most selling core product lines are iPhone smart phones, iPad tablets, iPo portable media players, and mac computer line. Founders Steve jobs and Steve Wozniak effectively created apple …show more content…
While it not clear which model of iPhone didn 't come up to scratch, China Business reported that between five and eight million handsets were returned due to appearance of substandard or dysfunctional problems. The total value of the loss to Foxconn could be up to $1.6 Evaluation Despite the rejection of 8 million iPhone 's, Apple Inc, still is producing satisfactory products, all the while consumers are still happy with all iPhones. Apple Inc. is still making profit despite this setback and still marketing their products without any damage dealt to their successful results. Finance Finance is what keeps every business going, it is what every other key business function is so interdependent on. Without finance, a business becomes bankrupt. This includes Apple 's financial years. For the third quarter of 2011, Apple reported sales of $26.74 billion and a net profit of $6 billion both quarterly records at the time that the company later eclipsed by the end of its 2011 fiscal year. Much of that holiday was fueled by sales of the iOS devices. for example, During last year’s holiday season, Apple sold 7.33 million iPads, nearly matching the total number of tablets sold during its entire 2010 fiscal year. Also in two of the four quarters of 2011, Apple reportedly sold a record number of Macs. Compared to 2013 where apple announced financial results for
It is quite obvious from the case that Apple is facing many obstacles. It has way more competitors today than it had two or three decades back. Part of it has to with the highly globalized environment that companies are operating in these days. Another major obstacle is the technological environment which is rapidly changing compared to the one that Apple experienced when it first emerged on the global scene. But the most important of it all seems to be a mental thing. It appears that Apple, over a period of time, developed a rigid mental model that related success of Apple with sheer innovation. This same mental model has lead to demise of many companies in the past, Xerox Corporation being the prime example of that.
For the fiscal year (FY) 2013 fourth quarter (Q4) Apple posted revenue of 37.5 billion and quarterly profits of 7.52 billion. Figure 1 shows financial data for three consecutive years from 2011-2013. See Appendix Figure 1 for financial details. Net sales for FY 2013 were $170,910 million an increase of $14,402 million from FY 2012 (Apple reports, 2013). Apple sold 33.8 million iPhones, 14.1 million iPads, and 4.9 million Macs during 2013 Q4. Apples App Stores’ sales exceeded $10 billion for FY 2013. App Store customers downloaded almost three billion apps in December 2013 making it the most successful month in App Store history (App store sales, 2013).
release, Apple sold 10 million units between the two versions of the iPhone 6, shattering
For 52 weeks Ending 2001-09-29, Apple had $5,363 million in revenues, gross profit of $1,235 million, and a NEGATIVE operating income of $344 million. It incurred a loss of $52 million before tax, and Income After Tax was NEGATIVE $37 million. Apple improved its position in the next year, having revenues of $5,742 million, gross profit of $1,603 million, and a positive income of $17 million. Apple 's income after tax for the fiscal year was $65 million. For Fiscal Year ending 2003-09-27, Apple increased its Total revenue and expenses. Apple 's total revenues stood at $6,207 million, negative total expenses of $6,208 million. Apple 's income after tax stood at $68 million, and a net income of
Further, in 2012 net income increased to $41,733,000,000. This shows that while the industry was declining, Apple was able to stay strong and profitable.
From the financial perspective Apple Inc. is one of the world leaders and is classified as World’s most valuable tech company with just recently being listed on DOW (Dow Jones Industrial Average) index. In 2015 Apple has posted results of one of the highest net sales reported of $233,7 billion with the profits ranging in $52.5 billion this fiscal year. Also Apple has done one of its biggest research and development investments since the company foundation of $8,1 billion. (Apple Inc., 2015).
Apple’s core business was computers and even though they had new products like iPod, iPad, and iPhone which would out sale their computers per Gamble & Thompson (2010). But Apple’s strategic plan was to venture and improve all over their markets especially the computers. Because the computers started the business and was the reason why they had been in business functioning on its own
The following paper aims at discussing the financial position of the American multinational corporation, Apple inc., which designs and markets consumer electronics, computers and personal computers mobile communication devices, and portable digital music and video players, as well as sells various related software, services, peripherals, and networking solutions. Apple Inc. together with subsidiaries sells its products worldwide through its online stores, retail stores, direct sales force, third-party wholesalers, resellers, and value-added resellers. The company sells its products to consumer, small and mid-sized business, education, enterprise, government, and creative customers. As of
The iPhone was an instant hit among the consumers and 525,000 iPhones were sold during the first weekend following its launch (BBC News, 2007). Steve Job was proven right as 'some 50% of iPhone purchasers replaced another phone, 24% replaced a Motorola RAZR, 14% replaced a Windows mobile device and 20% replaced a BlackBerry or Palm' (Mohr, Sengupta & Slater, 2004)
With the iPhone, unlike the iPod, Apple is not creating a new market it is “muscling the mobile market” (BBC). In fact in the UK, more than 80% of the households have already a mobile phone; however the mobile market is changing so the customers are not only buying a mobile phone for its functionality but also for the other features that it can provide such as the design for example. Since, there is an established market; there will be two main types of competition: one against the distributor and another one against the product.
Table 1 reports the selected financial data concerning business operation, and related growth rates from the annual report of Apple Inc. (2015). Notably, net sales rose 28% during 2015, with increase of net sales $50.9 billion. The growth of net sales over 2014-2015 was the second biggest rate during the recent five years. Note that the sales of Apple are determined by launching of new products
Apple's financial troubles continued throughout 2002. In October, it announced a quarterly loss of $45 million, due to weak PowerBook and PowerMac sales. In 2003, however, Apple began to recover, and to build for the future. Meanwhile, the iPod was beginning to take off. In April of 2003, Apple unveiled the iTunes Music Store, which would sell individual songs through the iTunes application, for 99 cents each. These songs could be played only on Macs or iPods, but Apple felt that by offering an easy to use, no-nonsense music service, it could make significant inroads to the digital music market. Apple did their homework: when announced, the iTunes Music Store already had the backing of the five major record labels, and a catalog of more than 200,000 songs.
The revenue for that same quarter was $7.51 billion with a net quarterly profit of $1.05 billion. The Macintosh computers unit showed a 51% unit growth while the IPOD unit showed a 1% unit growth. According to Steve Jobs, Apple's CEO, "We're delighted to report 43 percent revenue growth and the strongest March quarter revenue and earnings in Apple's history."
products in the fourth quarter of 2011, but 15.43 million were Apple iPads and only 5.2 million were
The corporation is best known for its series of personal computers, the iPod and its innovative marketing strategies for its products. (WhatIs.com, 2016). Infamous Steve Jobs was both the CEO and co-founder for Apple, and the company headquarters resides in Cupertino California. In November 25, 2014 Apple rose to groundbreaking heights when it became the first U.S. Company to be valued at over $700 billion. (CNNMoney, 2016). As of December 2015, Apple is responsible for supporting and creating 1.9 million jobs, (Apple, 2016) and as of 2015 has 479 retail stores in 18 countries and an online store available in 39 countries. Apple 's worldwide annual revenue in 2015 totaled $231,28Billion (MarketWatch) which has actually been the biggest year on year increase within the last five years.