Why Invest in Apple Inc.

1608 WordsJul 17, 20127 Pages
Why invest in Apple Inc.? Daniel A. Martinez MGT 521 March 12, 2012 Diane Hunt Wagner Abstract This paper presents a brief discussion and analysis of Apple Inc. using the Strengths, Weaknesses, Opportunities and Threats (SWOT) management model as a way of providing the reader an “at a glance” perspective prior to making a decision to invest in the firm. Some of the company’s financial figures obtained from its recently published 2011 unaudited financial reports such as the income statement, balance sheet and cash flow reports are included in the analysis and will be used as a reference for the explanation of the concepts here reviewed. Internal and external stakeholder identification and the fulfillment of their wants and needs…show more content…
| |Mobile advertising – Provides growth opportunity |Global and socio-economic conditions – European and Asian countries | |Stimulation of customer demand for new products – Maintain product |stagnation and Middle East social unrest could lower international | |innovation. Eg. iPad2 |growth. | | |Company’s reliance on third party software developers | | |Potential failure of outsourcing overseas | (“Apple Inc. Company Profile,” 2011). Underlined are the key items from the analysis considered to advice investing in this organization. With all elements of the analysis considered, it seems like the potential threats outweigh the strengths and opportunities, however the company’s strong financial performance results positions it as a low risk investment. Revenues, profit and high gross margins combined with a sound control on company expenses and a wealthy cash flow report
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