Financial Analysis Of Apple Company

1004 words - 5 pages

Siraj Aburokba
Susan Robertson
Accounting 1A
April 30 2014
Financial Analysis Apple

I am not a huge fan of Apple products, although I am a big fan of their company. No matter what you read in the press or business press about Apple the fundamental business strategy at Apple is a financial one. Apple’s fundamental strategy is to squeeze as much profit possible from every sale it makes. Apple’s financial strategy is to maximize , a financial strategy that has been put to use since Steve Jobs returned to the company. However every thing great must have a downfall, Apple doesn't have much weaknesses but they might affect the company financially in the long run.
One of Apple ...view middle of the document...

Apple brand is valued at $76.5 billion and was the second most valuable brand in the world in 2012.
Marketing is one of the strongest functional areas Apple has. It can sell pricier products, build superior stores, they are built to achieve marketing goals and advertise their products in a compelling manner. Apple is successful, because they don't just want to sell you an iPod or iPhone or iPad; rather, the company wants you to keep buying products through their devices and services.
On the other hand, Apple does have some minor weaknesses that do hold the company back from achieving greatness. The first being problem Apple faces is its High priced, Apple’s products cost much more than its competitors devices. Some people argue that the price is not justified for the products they offer. When there’s such heated competition with technology, Apple products price becomes a weakness because consumers can easily go for similar quality but lower price products.
Another weakness Decreasing market share(company's sales over the period and dividing it by the total sales of the industry over the same period) . The less market share Apple has, the less it can influence its customers and persuade them to jump into using Apple’s closed system products. In the U.S markets Apple is down 10 percent, which is a remarkable amount to be in decline especially in one year. However iPhone sales have increased in the last year, substantially seventeen percent year after year which is pretty impressive. So where does the decline come from? The iPad market has taken a nose dive due to other superior tablet companies. Android for example has swept the tablet industry with over 62 percent of market on lock down for tablets due to their price and product it surpasses Apple in both categories. Also Apple still has more than $102 billion in cash...

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