Apple Case

Contents Page

Introduction

• Background of Apple

Breakdown/Analysis

• Balance Sheet

• Income Statement

• Cash Flow Statement

• Work-in Capital

• Gross Margin

• Risk

• Leverage

• Profitability

• Return On Investment

Apple vs. Industry: to invest or not to invest?

Introduction

Apple is likely to be one of the most recognized companies in the world. It has four hundred and fifteen retails stores in thirteen countries, with the US holding the most, and the UK in a close second. It was founded in 1976, by Steve Jobs and Steve Wozniak, in either, a garage or a basement depending on who one may ask, in Cupertino, California. Over time the company grew and developed into the industries power house, designing, manufacturing and marketing mobile communication and media devices, personal computers, potable digital music players, selling a variety of related software services, minor networking solutions and third-party digital content and applications (In.reuters.com, 2013).

Until the nineties the company was at the top of the industry for personal computers, including the Apple Brand, Macintosh and Power Mac. However, once competition started to rise the company had to come up with other ways to stay innovative. Thus, in 2001 the iPod was introduced to the market, being one of the first i-products to come for Apple. Since 2001 there have been many generations of the iPod, plus the introduction of many more products and programs, like the iPhone, iPad, Mac, iTunes, Mac App Store, iCloud, iWork, and many other application software programs (Nostoptechnology.com, 2013).

Apple is not just a company for the young; it has made a brand name for itself that is recognizable by all generations all over the world. It is easily accessible and functionally manageable for toddlers that want their parent’s iPhones or iPads, to the elderly that may just need to pay bills and manage a household. After the death of their CEO and founder, Steve Jobs, the company went through a bit of a down fall and then seemed to plateau for a bit, but with the success of their newest iOS7 system and the new products it is constantly releasing the company hopes to keeps its advantage, however, many critics are interested to see if the company will remain on top over the next few years with their new CEO, Tim Cook.

Breakdown/Analysis

Balance