Investing In Apple Through Changing Markets

3117 words - 13 pages

Investing in Apple through changing markets
Veronica Fritsch
May 23, 2011
J. Allison Kazerounian

Investing in Apple through changing markets
Global economy is constantly in a state change. Countries change from prosperous states to floundering states. The change can be quick, in matter of a year or less, or the change can occur slowly over decades. Businesses need to take into account the changes in economy when setting up strategies and tactics. To be successful businesses must have the capabilities to change with the economy to meets current consumer needs, demands, and spending habits.
Apple, Incorporated has proven resistant to the economic tide. Some of ...view middle of the document...

Apple can be found in more than 75 countries across Asia, Europe, Africa, the Middle East, North, and South America (Apple, 2011). This is already a large market, but still allows more growth into other countries and an increase of store availability. Apple may need to consider this option if the economy does not improve as predicted. Another method to survive this economic storm is for Apple to continue to improve on its existing products and continue to release new types of products. Apple has been a forerunner in releasing new technology gadgets and must remain that way to stay in the top. The company can also invest some its surplus in buying other smaller companies that can be intermixed into its current products. One such example would be purchasing Netflix for the Apple TV as noted by Evelyn Rusli from the New York Times (2011). The wider the range of products and services, the more the company can continue to prosper.
On the 2011 Fortune 500 list Apple is ranked at 35th, which is a 21 spot increase from its former 56th spot. Apple ranked 196th on the Fortune Global 500 list, which pits the company against companies worldwide rather than companies based in the United States of America. According to CNN Money this success occurred as the company expanded its current markets and continues to create new ones (Fortune 500, 2011). The rankings are based on company gross revenue. The list includes both public and private owned companies providing for a large amount of competitors. Despite Apple’s location on both lists, this information alone is not enough to prove Apple to be a safe investment. Additional information that needs to be included in an investment decision is Apple’s financial standing and marketability.
Apple towers over competitors in its financial statements. Apple’s current ratio when calculated from its March 2011 financial statement is $1.93 (Apple Investors, 2011). Apple is overshadowing Hewlett-Packard’s (HP) current ratio of $1.17 (Hewlett-Packard Company, 2011), Samsung’s of $1.20 (Samsung Electronics, 2011), and Dell’s of $1.45. Apple has more assets per dollar of liability than three other major electronic companies. This good standing is the result of limited liabilities and an increase of assets.
A second financial ratio that should be considered by mutual fund managers is the debt to owners’ equity ratio. Companies must be able to pay back the debts they acquire or face negative actions such as bankruptcy or buy-outs. Apple’s debt to owners’ equity ratio is 54% (Apple Investors, 2011). The goal with the debt to owners’ equity ratio is obtain a percentage below 100% because a financially stable company should not have more debt than equity. Hewlett-Packard is failing with 188% (Hewlett-Packard Company, 2011) and Dell appears to be floundering with a 445% debt to owners’ equity (Dell Inc., 2010). Samsung’s debt to owners’ equity ratio is 49% (Samsung Electronics, 2011), which is below Apple’s...

Other Papers Like Investing in Apple Through Changing Markets

Apple Analysis

981 words - 4 pages stable, the other changing. In their stable areas, these organizations operate routinely and efficiently through use of formalized structures and processes. In their more unstable areas, top managers watch their competitors closely for new ideas, and then they rapidly adopt those that appear to be the most promising. Apple has also adopted the use of differentiation to gain an advantage in the market. A differentiation strategy calls for the

Swot Apple Inc Music Entetainment Essay

2456 words - 10 pages external environment may facilitate additional levels of diversification. SWOT ANALYSIS OF APPLE COMPUTER INC. Strengths Brand Image: The Apple brand is well regarded amongst most consumers. Apple also enjoys a high level of brand awareness and brand recognition for its products throughout the markets in which it operates. Global Presence: Apple has opened more than 200 retail stores located worldwide. At the time that Apple has

Appple Swot Analysis

1818 words - 8 pages professionals and consumers around the world through its innovative hardware, software and Internet offerings” , according to Dr. Diane Hamilton. According to Adeel Ahmed Khan in his research on Apple, their vision statement is that “Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them." Strengths: Apple is a premier inventor in mobile technology. Apple has been chosen as the

Procurement at Apple

2581 words - 11 pages ? It’s physically impossible to shine light through metal. Apple discovered it could use a customized laser to poke holes in the aluminum small enough to be nearly invisible to the human eye but big enough to let light through. Applying that solution at massive volume was a different matter. Apple needed lasers, and lots of them. Most of Apple’s customers have probably never given that green light a second thought, but its creation speaks to a

Apple, Inc. Business Analysis Part 1 Swot

1769 words - 8 pages devices through Wi-Fi. I think this was brilliant because you have to sync everything to your computer before transferring it to another device; iCloud takes that step out now and makes it more convenient for the consumer. Now Apple is offering airplay, which is streaming of music to any speaker in your house, again no wires to attach. Apple reported their first quarter revenue at $46.33 billion with quarterly net profit at $13.06 billion

Apple Essay

1472 words - 6 pages have a hard time keeping up with production. Apple can help itself by investing in the infrastructure and growth of these companies it depends on to get its product out in quantities to satisfy the market. Apple maintains its market share by constantly flooding the market with new and innovative products. Apple is the leader in design and technology and in order to stay on top it must protect those technologies from being copied or stolen

Strategic Management

5802 words - 24 pages products through its online store, direct sales force, thirdparty wholesalers and resellers, and the retail segment operates Apple-owned retail stores in the U.S. and in international markets. The company operates through the Americas, Europe, Japan, Asia-Pacific segments. Apple operates in 13 countries: United States, United Kingdoms, Canada, Japan, China, Italy, Australia, France, Netherlands, Switzerland, Germany, Spain and Hong Kong.9 Apple

Marketing Strategy of Apple

2709 words - 11 pages . There is very less capital debt in Apple. In fact Apple is financially strong enough to keep investing in Research and development and consolidate its number one position (Yoffie, 2012) * The operating system of iOS is highly secured and invulnerable against virus attacks which plague windows phones (Kan, 2012). Apple taps the latent needs of consumers and makes its graphic system in a superior form as compared o competitors. Product

Global Business Environment Analysis of Apple

3774 words - 16 pages company, there are several strategic issues are faced by Apple. They are: How Apple survives in competition. How Apple responds to the dynamic of technology innovation. How Apple responds to the continuous changing market needs. 2.1 Issues 1: How Apple survives in competition The structure of computer industry can be considered as monopolistic competition. This structure is characterized by a lot of competitors, easy to enter

Implementing Strategic Management for Apple Inc

5454 words - 22 pages for developing a comprehensive mission statement (David, 2011) a. Vision Statement of APPLE "Man is the creator of change in this world. As such he should be above systems andstructures, and not subordinate to them." i. Explanation of APPLE’s vision According to (Hamilton, 2011) Apple lives this vision through the technologies it develops for consumers and corporations. It strives to make its customers masters of the products

Mr. Marcus Mcmanus

1850 words - 8 pages mobile phone with the iPhone. Apple has recently introduced its iPad which is drastically changing mobile media and computing devices. The company's products and services include Macintosh computers, iPhone, iPad, iPod, Apple TV, iTunes Store, and many other software services. It sells its products worldwide through its retail stores, online stores, direct sales force, and third-party cellular network carriers. Notable U.S. cellular companies

Related Essays

Financial Analysis Of Apple Company

1004 words - 5 pages equal to 43.9%. Company has no debt and is not affected by interest rates or credit markets. Apple has a reputation of originality, well designed, and well-functioning products and sound performance. 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

Apple Marketing Plan Essay

1717 words - 7 pages over their pricing. Job’s vision, when he created Apple, was to create a premier product that he can charge a premium price. Their cheapest products fall usually in the mid-range, but they still ensure a high-quality user experiences with their features ("Apple's Premium Pricing Strategy and Product Differentiation”). Distribution strategies Refer to the channels section above. There it talks about how Apple is changing and increasing market

Business Analysis

989 words - 4 pages Business Analysis MGT/521 8-04-2011 John T. Opincar Abstract In this paper, an overall business analysis of Apple, Inc. will describe in detail including the review of recent economic trends influencing Apple, along with the strategies the company could and were adapting to with the changing of the markets and recession. Along with informative information about the tactics Apple may have implemented or could potential implement to

Apple Essay

7904 words - 32 pages Android becomes the default system in these new markets, this priority could switch, and Apple could face even more of a struggle. Apple is clearly not a mass- market retailer. However, opening new stores in Brazil and Turkey in 2014, as well as new ones in China show that it is serious about new markets. Getting product development right There is widespread speculation that the company is planning the launch of another game-changing