APPLE INCORPORATION

Apple Company Before and After Steve's Death

Apple Company Before and After Steve's Death

Apple Incorporation

Apple and its wholly-owned subsidiaries markets, designs and manufactures media devices, portable digital music players, personal computers and mobile communication and sells a variety of associated services, third party digital applications and content, software and also the networking application. The services and products of Apple Incorporation include iPad, Apple TV, iPhone, Mac computers etc.

Financial Performance of Apple Company Before the Death of Steve Jobs

Over the five years that is from 2006 to 2011, when Apple was operating under Steve Jobs, the company was expecting to get stellar annualized growth in revenue of 41.2%. In the year 2006, the company achieved revenue from global markets of about $ 19.3 billion which was expected to reach $ 108.2 billion in 2011 (Groppelli and Ehsan, 2006, 32-46). The company has achieved this escalation by offering high value added products which particularly include iPhone. Despite the fact that Apple does not more often than not release first of its kind products, for instance, the iPod was not the first digital media player, it uses its engineering and also the brand image capabilities to produce distinctively attractive designs and also the user experiences (Lawrence, 2008, 32-47). In the year 2007, the company introduced the iPhone which in point of fact merge the roles of the PDA devices that is the personal data assistant with media players and cell phones (Jane, 2008, 25-28). This product was a great success as it is still well thought-out the standard for smartphone designs; moreover, the revenue from the product that is the iPhone increased to $ 47.1 billion in 2011 which was $ 25.2 billion in 2010. For that reason, the performance of Apple or the financial performance before the death of Steve Jobs was encouraging; the reason of this statement is that the strategies or the products that were launched become success.

In addition to this, because of its use of proprietary technologies, the company is an extraordinarily profitable. The operating profit margin of Apple has progressively enhanced during the last 5 years that is from 12.7 % in 2006 to 28.2 % in 2011 that is before the death of Steve Jobs which also seems to remain profitable in 2012 that is after the death of Steve Jobs. On the contrary, it is observed that the liquidity ratios of the company has declined after the death of Steve Jobs as the current ratio, quick ratio and net assets as percentage of total assets were 1.93, 1.66 and 23.89 respectively; which decreased to 1.58, 1.32 and 12.37 respectively. Furthermore, it is also observed that the sales of software have contributed minimally to the growth; Apple views its software as a means of attracting buyers to its high margin hardware.

Year

Revenue

Operating Income

($ millions)

(% change)

($ millions)

(% change)

2006

704

81.9

120

29.0

2007

1326

88.4

235

95.8

2008

1881

41.9

313

33.2

2009

2024

7.6

219

-30.0

2010

2857

41.2

428

95.4

2011

3315

16.0

565

32.0

Financial Performance of Apple Company After the Death of Steve Jobs

After the death of Steve Jobs, it can be observed that the financial performance of Apple Incorporation presents that the major part of ...