Apple is a very interesting company because of its high level of innovation. It has been the game changer in the field of mobile and computer technology. The company has been on top of its game since the beginning of the 21st century. Apple has been releasing innovative products, expanding its operations, and creating new jobs. According to the 2013 Top 100 Global Brands Ranking List, Apple is the most admired brand. Furthermore, it is the most valuable company by market capitalization. This means that Apple has the biggest market in the world. These are the factors that make Apple a very interesting company.
In the last four years, hardware business companies have faced tough economic times. However, Apple was unstoppable because it consistently reported profits. I still believe that the company has a bright future because it has a unique competitive advantage. The company has a unique combination of software and hardware, content gate-keeping strategy, and a highly successful retail strategy. Apple has a highly efficient and effective innovation process that will ensure that the company stays ahead of its market. For instance, the company has already ventured into Touch ID, which has a very bright future (Apple Inc., 2014). Touch ID enables users to secure their phones while allowing them to use their phone without any inconveniences. The touch ID technology enables users to access their phones using finger prints. In the near future, I believe that Apple will be able to expand the touch ID technology to other devices such as iPad. It is going to be very interesting to see how Apple survives in its future operations.
In 2013, Apple recorded mixed results in its financial performance. The company recorded a profit of 7.5 billion dollars and 37.5 billion dollars in revenues. In his case, the company recorded an increase in revenue from 36 billion to 37.5 billion the previous year while its profits were down from last year’s 40 percent increase to 37 percent (Yahoo Finance, 2014). However, the company’s overall performance was beyond expectations. During the year, Apple introduced two models of iPhone (5S and 5c), which helped the company’s sales of iPhone rise to a record 33.8 million units. The Mac product line accounted for a significant amount of revenue that Apple recorded in 2013. Apple recorded total revenue of 5.62 billion dollars from its Mac product line. Unfortunately, the company did not experience any significant increase in the number of Macs that it sold in 2013. This is because the 2013 level of sales was similar to that of 2012. Apple trades its shares through the New York Securities Exchange (NYSE), and the company recorded one year rate of return of 5.01 percent. This was far way below compared to the S&P 500 index which recorded a total return of 28.02 percent. The current share price of Apple’s stock is 540.04 dollars (Yahoo Finance, 2014).
Since the death of Steve Jobs, the founder of Apple and CEO, there has been a number of changes in the company’s management team. The company board promoted Tim Cook from the position of COO to CEO; Jonathan Ive received additional design responsibilities, and Craig Federighi joined the executive team as head of software engineering (Apple Inc., 2014). Peter Oppenheimer remains as the company’s chief financial officer. This is the team that has maintained Apple’s excellent performance since the death of its legendary founder and CEO, Steve Jobs.
References
Apple Inc. (2014). Apple Press Infor. Retrieved from https://www.apple.com/pr/library/
Yahoo Finance. (2014). Stock Screener. Retrieved from http://screener.finance.yahoo.com/reports.html
