ECONOMIC ANALYSIS

Economic Analysis



Economic Analysis

Part 1: Business Conditions of an Organization

Apple Company Background

Apple Inc. is an American multinational corporation that develops and manufactures consumer electronics, software and personal computers. The most famous products of hardware Macintosh computers are IPod, iPhone and IPAD. Apple Software includes Mac OS X operating system, browser ITunes Media, iLife suite of multimedia and a lot of other creative softwares.In January 1977, the company "Apple Computer" truly sees the day and began to speak of her with the "Apple II". Truly public oriented micro-computer attracts many consumers and will sell until 1986.

Only at the output of the microphone that the company decides to give an apple as a logo to mark it's previously represented by a picture of Isaac Newton lying under a tree, receiving an apple on his head. In 1978, Apple released the floppy drive! In 1980, the Apple III had a massive flop because of considerable technical problems. The American multinational has more than one trick up his sleeve and will recover from his flop in 1984 with the first Macintosh that experienced a real-world success. This success followed by many other families with different software and products like the iPod, iPhone or iPad and operating systems to the attention of both business and consumer public. Today, the company Apple is one of the largest multinationals in the world with approximately $ 50 billion in sales in 2009, and it steadily increased over 33% per year (Buys, 2010).

Financial Position

Apple, Inc. has consistently been able to report substantial growth in its net sales due to innovative product launches and strong supply-chain relations. Q1 2011 showed a 71% growth in net sales compared to the same quarter one year prior. This can be attributed to heavy growth in its iPhone product segments net sales, which increased 88%, and the recent introduction of its game-changing iPad into the tablet PC market.

Economic Growth

The continuation in growth for Apple can be explained by high levels of growth in net sales of the iPad product line and a continuation of growth in net sales of the iPhone. Annual upgrades of these products will help the Company remain competitive and maintain market share.

Market Structure

The majority of Apple's customers are located in the consumer, SMB, education, enterprise, government and innovative markets. Using a number of direct and indirect distribution channels, the Company holds immense importance in the knowledge of its salespersons, which are able to more effectively convey the premium value of its products to the end user. Demand for Apple's products will rely internally on its ability to reinvent product markets with a continual and timely flow as rapid technological advances, short product life cycles, evolving industry standards and sensitivity to price on the part of consumers leave the Company with a highly volatile mix of markets in which it must compete.

Profitability

The strength in Apple's annual earnings per share growth has been impressive over the last five fiscal years, with a compound annual growth rate of ...