Introduction
The company Apple Inc. has been an American multinational firm what looks to design computer software products and consumer electronics goods. The major products for the company have been its Macintosh, iPod and iPhone. It also has quite a few software that allow the company to offer different products to the customers. Apple Inc. has over 400 retail stores in more than 15 countries and has online stores where it sells all kinds of hardware and software products.
Moreover, the company is the second largest IT Company after Samsung it terms of revenues, however, it is the largest company in terms of total assets and Apple is the world’s third largest smart phone manufacturer in the world.
Apple Inc. is the largest music retailer. Along with this, Apple Inc. has been the first United States based company that is valued over $700 billion. The total number of employees working at Apple Inc. worldwide is approximately 72,800 full time permanent employees.
Background
Apple Inc. is a United States based multinational technology company that has been headquartered in the Cupertino, California, which has been designing, developing and also selling consumer electronics, online services, personal computers, computer software, etc.
The company is best known or well known for the hardware products it manufactures that are the Mac line of the computers, the iPhone smart phones, the iPod media player, etc.
The company also offers its online services which include the iTunes Store, iCloud and also the Apple Store. Along with this, the company’s consumer software includes the iOS operating system and the OS X, the Safari Web browser, the iTunes media browser, iWork, iLife productivity and the creativity suites.
The company was founded in the year 1976 by Steve Jobs, Steve Wozniak and Ronal Wayne on the 1st of April. The basic business model of Apple in the initial period was to sell and develop personal computers.
In the following year, the company named itself Apple Computer, Inc. However, the name was changed to Apple Inc. in 2007 when the company shifted its focus from being a personal computer manufacturer to consumer electronics
Current situation
Over the last quarter of 2005, the overall personal computer market has experienced tenth consecutive quarter of more than double digit sales and the revenues for the industry have been $260 billion for the year.
With the success of the industry, the researchers have predicted that the worldwide market of personal computers is bound to slow by a total of 8 % between the years 2006 to 2009. However, as per the stats of 2014, it is actually gone down considerably with the sales have been shared by major other devices and products where PC industry has actually been unable to compete the way it should have done in the market.
Along with this, the personal computer market is a highly concentrated and consolidated market. In the United States five players actually control more than 60% market of personal computers. Moreover, in the recent past, the competition has actually forced the industry rivals to reduce the prices.
Most of the PCs that are sold in the market are assembled with the help of standardized components where there have been few barriers to enter the market. This has resulted in the increase in competition and most of the companies that are producing PCs are of same size and function similarly. The major players have been offering high quality and low priced products with similar features. This has actually made the industry quite mature and difficulty to differentiate.
The prices have also been quite reasonable and the players have looked to offer reduced prices in order to attract customers. Moreover, another issue in the industry has been the fact that the technology has been rapidly changing and the players have to offer new and innovative technology most of the times. In the PC industry, Microsoft has been a major driving force where the processers manufactured by the company are serving 85 % of the market.
The financial performance of Apple Inc. has been constantly on an upward direction. For instance, if we look at the financial statement of the year 2011, the total revenues for the year have been $108, 249 million, whereas for the year 2012, the revenues have been $156, 5008 million.
The sales or the revenues for the year 2013 have been $170,910 million. The sales for the year are $182,795. The R&D expenses have also increased year by year; the research and development expenses for the year 2011 have been $2,429 million, $3,381 million in the year 2012, and $4,475 million for the year 2013, $6,041 million for the year 2014.
Finally, the net income has also increased drastically for the company year by year. The net income for the year in 2011 has been $3,510,000 million.On the other hand,the net income for the year 2012 have been $37,037,000 million, the net income for the year 2013 have been $41,733,000 million, finally the year 2014 have produced a net income of $25,922,000..............
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