Facts and Figures: Apple Inc

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Part I. Apple Inc. competes in several industries. According to its 2011 Form 10-K, the company earned $108 billion in revenue. The bulk of this money came from the Americas ($38.3 billion) and Europe ($27.7 billion), with Asia-Pacific as a rapidly growing market as well, now worth $22.5 billion in revenue. By product, Apple's sales are iPhone ($47 billion), iPad ($20.3 billion) and portable computers ($15.3 billion). Sales grew by 66% last year, with the highest growth coming from the iPad (311% growth) and the iPhone (87%). Two years ago, the iPad was the fifth-best-selling product for the company and three years ago it did not exist. The market for these products is highly competitive, but analyzed against Porter's Five Forces model (QuickMBA, 2010), these industries have favorable conditions, especially for established companies. The first force is the bargaining power of suppliers. This is quite low in the industry. Suppliers tend to be OEM producers without a brand of their own. What they have to offer is manufacturing, but there is relatively little opportunity to differentiate. They are typically dependent on the volume they receive from major customers, which is most of them. An example of the power that major firms in the industry have over suppliers is the recent changes that Apple forced Foxconn to make to its compensation systems as a result of the negative publicity that the company had received relating to the working conditions at the Foxconn plants in
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