Apple vs. Dell Financial Analysis

Electronics over the past fifteen years have become an everyday essential in today’s market. The use of personal computers skyrocketed from being in higher income households to common place in almost every home. Equalus Inc. is excited to jump into the world of desktop computers and notebooks by providing service to the masses of a “build-your-own” personal system with tech help and customer service all originating within the United States. Based on a series of questions Equalus will be able to build a desktop or notebook to the user’s needs. Consumers will no longer wonder if their purchase will be able to

a. Dell computers cover needs pertaining to strategy and deployment, IT and business consulting, managed services and all around expert advice and world-class support. Dell products can be used within organizations to use business processes efficiently, and assist with technology infrastructure and applications services to pinpoint growth opportunities that essentially reduce costs.

Microsoft and Mac are the two greatest organizations at present with regards to PC make and the shopper gadgets industry. The two organizations have tremendous likenesses and contrasts. The two organizations propelled their corporate structure inside a brief time of each other. They are the most elevated winning fundamental opponents and best trailblazers in the market as of now and their items are the most generally utilized.

The stock that I have analyzed is Apple (AAPPL), which it falls under the technology sector and trades under the NASDAQ. This sector holds the biggest companies around the world. A lot of these companies are well known such as: Amazon, Google, LinkedIn, and etc. The technology sector is an undeniably investment opportunity for every investor around the world. Lets face it technology keeps improving and we have only seen the beginning of it. These companies, such as Apple, are associated with constant innovation and invention. Our modern economy relies upon the technology sector to improve quality, productivity, and profitability.

In order to truly understand how Apple operates and what products they offer to consumers in the personal electronics in comparison to other companies in the market. There are many players in the personal electronics industry and Apple is 3rd place for market share capturing 11.1% of the US PC market share. HP is the leading player in the US market accounting for 26.1% share of the market, Dell accounts for 22.3%, Toshiba falls behind Apple with 9.3% of the market share.

For nearly twenty years, Apple computers have been the industry standard for creative industries such as publishing, advertising, digital music and video editing, and graphic design. Apple computer and peripheral products include Macbook and Macbook Pro laptops, iMac and Mac Pro desktops, as well a line of flat-panel displays and the

The PC industry is highly competitive and constantly changing as technology evolves and customer needs change. Some of the top competitors in the PC industry are IBM, Hewlett-Packard, Dell and Apple. Theses rivals are constantly jockeying for the top competitor’s position. They compete in prices, product innovation, advertising, etc.

Apple's main competitors are Microsoft, Dell, Sony, Toshiba, Acer, HP, Nokia, etc. These all are highly specialized in their respective products. Today, the biggest challenge for

Michael Dell founded Dell in 1984 at the age of 19. Steve Jobs and Steve Wozniak designed Apple Computer on April 1, 1976. As both companies continue to grow they have contributed to a wide impact on competiveness and efficiency towards strategic goals.

Although both companies have diversified into other industries, PC industry is still their most important source of revenue. For years, these two giants are battling for lead in PC market. When measured by market share, HP has taken place of Dell as No.1 seller in PC market since 2007 (FIGURE 1). When measured by revenue, HP also wins over Dell for almost five years (FIGURE 2). Also, Acer grew rapidly in market share partly because of its merger with Gateway in 2007 (Einhorn 2007), and almost matched Dell in 2009.

Dell is a leading technology company that offers a wide range of products including desktop computers, networking products, servers, mobility products, storage, peripherals, software as well as general IT services. The company mainly operates in the United States and is headquartered in the city of Round Rock, Texas. In the financial year ended 2011, the company recorded a revenue of $61,494 million, a figure which indicated a 16.2 percent increase over the FY2010 figure. Its FY2011 operating profit was about $3,433 million, an amount which marked a 58.1% increase over the FY2010 value. Its FY2011 net profit was $2,635 million, a value which represented a 83.9 percent increase over the FY2010 value (Datamonitor,2011).

Apple operates with fierce competition in the consumer electronics segment which comes in many different forms. There are a large number of competitors in the different market niches who offer many similar products. Furthermore, many of these competitors' products are priced much less than an Apple branded products. Just as soon as Apple releases a new product, major companies begin imitating it immediately. In the personal computer industry, market pressure is continuously being exerted from such companies such as IBM, Dell, HP, and Toshiba (Wildstrom, 2009). Furthermore, with its flagship product the IPhone, Apple competes with companies like HTC, Palm, Blackberry, and Motorola (Wortham, 2011). Apple has had significant success despite the competitive environment because Apple commands a brand loyalty and dedication to innovation that few companies have ever achieved.

The product research and development field is a basic yet crucial requirement to survive in the consumer electronic industry. This is also mainly the reason that propels Apple Inc. to invest in the particular field, allowing Apple products to be at the top of new innovative products. Technology has been making huge leaps in improvement and the market has grown in size which leads to even more competitors, thus involving technical changes and reducing the product life cycle significantly. This enables Apple Inc. to constantly present newer products and therefore lead the market.

Started by Michael Dell, Dell Computer Corporation is one of the world’s leading direct marketers of personal computer systems. Dell Computer Corporation designs, manufactures, markets, services, and supports a wide range of computer systems, including desktop personal computers, notebook computers, and network servers. In addition, it also markets peripheral computer hardware and software, as well as service and support programs. The success of Dell Computer Corporation can be traced to Michael Dell’s strategic vision and distinctive competency.

One thing is certain about the PC industry as a whole, and that is competition is fierce. We see from our research, the PC industry sales increased by 16% between 2009 and 2010, and given the state of the economy throughout the globe, that is astounding. Even more astounding is the sales of notebook PCs, which saw a 40% increase. So let us look at the marketshare of our competition, and turn to each segment. Dell dominates the desktop PC market with 28.8% (-4.9% growth), followed by HP at 28.8%, Acer at 6.6%, Toshiba aligned with our beloved Apple at 5.3 and 4.4% respectively. Let us be clear about just a few very important points of qualification about the above figures. We at Apple have a much