Apple's Success

3553 Words Jan 29th, 2012 15 Pages

May 11, 2011

Apple, Inc.

Although there is hardly anyone left in the world that does not know anything about the company Apple, the following synopsis will demonstrate how this successful firm really does make a profit. Just go into any electronics store or a cell carrier, and you’ll get to see almost all other companies that are trying to keep up with Apple. When the iPhone came out, it was the leader in multi-touch screen phones. Now, almost all the phones for sale are similar in their functionality. Same is noticed with the iPad. A year ago there were hardly any tablets on the market. Now that Apple has paved the way for that niche, others are following once again. Recently on April 20, 2011, Apple announced
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The iPad sales did fall short of estimates by analysts. From its one billion dollar profit in 2007 to its now six billion, Apple is doing its best work ever according to some analysts.

Let’s take a look at how Apple makes money. It was announced recently that Apple had sold more than 18 million iPhones in Q2 alone. For a better perspective, the company sold 14 million iPhones in Q4 of 2010. In Q1 of 2011, the company pushed over 16 million iPhones. The 18 million represents a 113% growth over the same quarter the previous year. For one thing, the iPhone sales saw a 91% unit growth over the same quarter a year ago, with 14.1 million sold. The company said is also sold a little over four million iPads during the quarter, which could have been stronger if it weren’t for some supply constraints. Even Macs, which are due for some upgrades, had a 27% unit gain from a year ago with almost four million sold. The only thing that actually had a drop in sales was the iPod. The drop in 11% for this product could have been due to the cannibalism of the iPhone, which is just an iPod with phone capability. Even Apple CEO Steve Jobs was taken aback by these new figures. He stated, “We are blown away to report over $20 billion in revenue and over $4 billion in after-tax earnings—both all-time records for Apple. iPhone sales of 14.1 million were up 91 percent year-over-year, handily beating the 12.1 million

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