Analyzing Apple’s Performance essay

Research and give an update on Apples performance as of the time of your reading this case. Apple’s performance can be analyses from a few areas, namely share price, bargaining power of its suppliers and its updated financial results. (a)Share price A few significant events affect the share price of Apple in its recent history. Introduction of Phone In June 2007, Apple launched the phone, the third leg to Apple’s innovation tripod. This propelled the share price to pass the $1 00 mark. The phone was a multifunction smartened which provided a unique touch-based interface o the customer.

Steve Jobs’ health condition Steve Jobs health condition was closely related to the company’s share price as well. When he announced his medical leave on 14 January 2009, Apple’s stock took a $13 billion hit the same day , though his health problems was known to the public for a long time. When Steve Jobs returned on 29 June 2009, Apple shares rose by 20 percent. Introduction of Pad On 25 January 2010, the release of the Pad into the market caused the stock price to rise 15 percent after the Pad was unveiled. ) Bargaining power of Apple’s suppliers (moderate) Apple’s suppliers have a moderate bargaining power which affects Apple’s performance. (1) Use of Intel processors By announcing the plan to use Intel processors, there is a high switching cost. This decision has its pros and cons: Pros 1 . There is introduction of new amazing products. 2. There is lower production cost and increased sales. Cons 1 . There is a need to fight against other competitors. (2) Strong Vertical Integration Apple has a strong vertical integration.

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It is able to expand its business into areas that are at different points on the same production path. Pros 1 . Let coordinate activities in supply chain. 2. It increases customer exposure. 3. It enhances product quality and enjoy unparalleled pricing power. Con 1 . There is bureaucratic cost increase. (3) Product differentiation strategy Apple is able to pass cost to customers by having product differentiation strategy. It is able to have innovative products like Apple Watch and Pad by contrasting its unique qualities with other competing products, and passing the costs to customers by selling at a high margin. ) Buying in large volume Apple was able to buy in large volume. There is discount in bulk purchasing. (c) Financial results for year 2015 (1st quarter) Apple’s financial results for its fiscal 2015 first quarter ended December 27, 2014 was astounding. The Company posted record quarterly revenue of $74. 6 billion and record quarterly net profit of SSL 8 billion, or $3. 06 per diluted share. These results compared to revenue of $57. 6 billion and net profit of $13. 1 billion, or $2. 07 per diluted share, in the year-ago quarter. Gross margin was 39. Recent compared to 37. 9 percent in the year-ago quarter. International sales accounted for 65 percent of the quarters revenue. The results were largely caused by all-time record revenue from phone and Mac sales as well as record performance of the App Store. Phone unit sales of 74. 5 million also set a new record. In conclusion, the above 3 areas analyses Apple’s performance. Hey rite I looked through your work, certain points may work well for other questions. The part highlighted in red, are the important Ones. You can add figures and statistics to back it up.

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