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Apple Inc. Company Analysis

Essay by   •  January 8, 2013  •  Case Study  •  1,278 Words (6 Pages)  •  1,926 Views

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Introduction

Apple is a well known brand that designs and markets consumer electronics, computer software, and personal computers. It is an American multinational corporation that operates in most of the countries around the globe (Apple, 2011). This paper includes analysis of Apple Inc in terms of financial leadership profile, current company performance, investment opportunities, financial performance, and business risks and opportunities.

Financial Leadership Profile

In the current environment, employees are the key elements to retain a leading position in an industry. Apple consists of several skilled and knowledgeable people that help in its continuous growth and to retain leading position within the industry. Apple hires people on the bases of their ability and skills. In present scenario, Mr. Tim Cook represents Apple on the position of Chief Executive Officer. He is management professional with a good experience folder and he was Apple's Chief Operating Officer before joining CEO position. Prior to join Apple, he worked with Compaq as vice president and with IBM as director of North American region. Mr. Peter Oppenheimer is positioned as Chief Financial Officer in Apple. As CFO, Oppenheimer is to oversee the controller, treasury, investor relation, tax, information system, internal audit and facilities functions. He is also management professional with experience of several years. He started work with Apple since 1996 as controller for American region and had work experience in Automatic Data Processing (ADP), where he was CFO. Before join ADP, he has worked with Coopers and Lybrand for six years (Apple, 2011).

Current Company Performance

Apple is operating its business activities quite significantly as it is involved in the continuous development of new products and services and is also introducing new features in. existing products to attract and retain the customers. The company makes people Apple friendly through various innovative innovations. These innovations make it different from others. From past few years, Apple launched various attractive products like iTunes, iPhone, iPad, iPods, Apple TV etc. These products got good response of customers and succeed to capture significant market attention and share. Apple was the first player, who launched iPhone and created a good benchmark for competitors. This company targets niche market with high price. It segments customers into three categories, first are early adopters, who think differently, second are consumer, who want to use something easy, third are professional content creators (Apple, 2010).

Nowadays, it is going to lunch new gadgets such as iPone5, iPad2, iPad3, iMac, MacBook Pro, and iPod 3D with more improved features from existing features. All gadgets have advanced features that will be used easily by the customers. It is estimated that average middle-class American will spend roughly $481 on Apple products by 2015 that also shows that it is doing perfectly in the current business environment (AppleInsider, 2011). To reduce reliance on memory suppliers from Samsung Electronics, Apple has increased purchases of flash memory from Japanese suppliers. This effort may increase its efficiency, market growth and will help to create a good benchmark for competitors (AppleInsider, 2011). The leading position and sound financial position of Apple also describes its sound performance in the industry.

Business Risk

In-spite of good position in market Apple faces several risks that have a significant impact over its financial condition and operating results. There are several risks that may affect company or affecting in the current industry. First one is the uncertainty of economic conditions worldwide. As a worldwide venture, Apple has to face economic risks that persuade Company to postpone its spending on new projects in response to tighter credit, unemployment, negative financial news, decline in income or asset values etc. These results have negative effect on demand of Apple's product and services. Second risk is related to the launching of new product success or failure at its introductory stage. It is due to highly volatile and competitive nature of the industry that forces Apple towards continuous product introductions and transactions (Apple, 2010). The continuous product introduction affects the financial position

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