Apple Case Study

COMPANY HISTORY

AND FINANCIAL

PERFORMANCE

Steven Wozniak and Steven Jobs founded Apple

Computer in 1976 when they began selling a

crudely designed personal computer called the

Despite the effects of ongoing poor economic

conditions in the United States,

Apple Inc. celebrated record quarterly

revenues and unit sales of computers during its

third quarter of 2010. In addition, the company's

newly released iPad tablet computer had sold

3.3 million units between its April 3, 2010, launch

and the June 26, 2010, quarter end. The company

also sold 8.4 million iPhones during the quarter.

Most of the smartphone units sold during the

third quarter of 2010 were iPhone 3GS models

since the new iPhone 4 launched only four days

prior to the close of the quarter. Although there

had been some criticism of the antenna design of

the iPhone 4, more than 3 million iPhone 4 units

had been purchased by July 16, 2010, with only

1.7 percent being returned by dissatisfied customers.

By comparison, the iPhone 3GS had a 6 percent

return rate.

Apple's chief operating officer, Tim Cook,

commented to the Wall Street Journal that the

company was selling iPads and iPhones "as fast

as we can make them" and was "working around

the clock to try to get supply and demand in

balance." 1 Some analysts were projecting that

Apple would sell nearly 12 million iPad tablet

computers by year-end 2010. However, others

were concerned that once Apple aficionados had

purchased an iPad to complement their iPhone,

iPod,