The financial Analysis of Apple Inc

Financial Analysis of Apple Inc

Introduction

Apple Inc that for formerly known as Apple computer Inc is one of the leading multinational corporation of the United States of America, that manufactures electronic items like personal computers, software for the computers, and also considered as the largest distributor of media content. Some of the key product line of Apple includes Ipad, computers, IPod, and other computer devices (Blumberg, et al, 2006).

Apple computer Inc was inaugurated by Steve Jobs with the contribution of his friend Steve Wozniak, in the year 1976, after releasing Apple 1 in the market, further, in year 1977 this company was officially incorporated and its first office was in California.

Apple computer Inc was considered as largest manufacturer of Personal computer for more than two centuries, and this company was gaining enormous success thanks to products like Apple II, McIntosh, Power Mac, and others. However, ending of nineteenth century was referred as the black times for the company as firstly its founder was sacked from the company and company also witness considerable decline in the sales of its products.

In addition to this, during this period, the company's strongest rivals Amiga, Atari ST, and computer manufactured on IBM technology were gaining popularity, and because of their unique software's, and strategies were out-competing Apple in every aspect of the industry. Moreover, the response given by the company in context of these challenges was not effective, as most of new technologies that were introduced during that period were inappropriate in design and quality and as a result Apple was considered as the worst ever IT company (Froud et al, 2012).

Apple Company tried different strategies to cope up with prevailing circumstances, for instance, the company entered in a partnership deal with IBM, to restore their image, in addition to this, Apple Inc also tried to increase its production by introducing customer devices like (PDA) personal digital assistant. However, above decision helped in improving the performance of the company, but were not enough to sustain the performance for longer period.

Discussion

Comeback of Apple

Above transpired events forced the management to reconsider their strategies and firstly, the management team planned to bring back Steve Jobs and the only way to this was to acquire the shares of Steve company the NeXT which was also struggling in the market but somehow was able to overcome its competitors.

Year 1997, Apple Inc inaugurated an online retail store that mainly includes all those products that were acquired by the company during the acquisition of NeXT. Thus, another important aspect of launching this store was to initialize new and improved sales procedure and manufacturing strategies. During the same period, the company terminated the services of existing CEO and appointed Steve Jobs as interim CEO of the company, and was soon made the permanent CEO (Blumberg et al, 2006).

Steve Jobs eventually resigned from the post of CEO on August 24 2011, just two month before his previous cancer disease took the life of world's greatest entrepreneur, and has ...