Apple Inc Industry Analysis
Apple Inc Industry Analysis

Apple Inc Industry Analysis

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  • Pages: 3 (1383 words)
  • Published: October 24, 2017
  • Type: Case Study
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We chose to research Apple Incorporated. one of the most advanced companies of our coevals. It is safe to state that about every one in the US and many foreign states have used or at least heard of Apple merchandises. We will be looking at the macroeconomic variables that impact Apple’s concern every bit good as how the current developments in the industry have impacted Apple’s financials and we will besides look at how Apple competes with other houses in the same industry.

The first macroeconomic variable that we believe will impact Apple. Incorporated is the planetary prognosis for Gross Domestic Product for 2013. The planetary prognosis for GDP is 3. 3 % for 2013 harmonizing to Global Macroeconomic Outlook. This is comparatively slow growing because the 10-year norm was 3. 8 % . Normally slow growing is followed by a autumn in demand of goods and services. Since Apple makes and sells more cyclical points. this could take to a lessening demand for Apple merchandises.

To go on doing the gross that the company needs. it could coerce them to take down their monetary values. which will besides ensue in lower net incomes. Although. Apple merchandises are more of a luxury point. there is a tendency of dependance on smart phones and other engineering that Apple produces so they may non be affected every bit much as other companies that produce luxury merchandises.

Apple. Inc. has a strong presence in the United States of America and Japan so another factor to look at

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would be the GDPs for those states. The GDP in America is supposed to be 0. 02 % higher than the 10-year norm and about dual ( 0. 9 % as the 10-year norm to 1. 6 % ) in Japan. Using these Numberss we can think that Apple. Inc. will likely go on to turn since those GDP’s are larger than the past norm but at a really slow rate since the growing is minimum.

The net income border for Apple. Inc. has increased from 21. 5 % in 2010 to 23. 9 % in 2011. Using these Numberss we could gauge that the net income border for the company will likely increase merely a twosome percentages between 2011 and the terminal of the 2013 financial twelvemonth. This would do the net income border around 25. 5 % in our appraisals. With this growing rate we believe that Apple will be able to surpass many of their rivals such as Microsoft for personal computing machines and Sony for cellular telephones.

The 2nd macroeconomic factor that our group has decided will likely impact Apple. Inc. is the exchange rates. Harmonizing to U. S. Dollar Currency Exchange Rate Forecast. the U. S. dollar is expected to worsen in comparing to universe currencies in the following four old ages. This is good for foreign demand because it will do international pricing to diminish analogue to the lessening in the U. S. dollar value. One ground for this is because a weaker dollar besides means less expensive export fees. Hopefully the consequences to these decreased monetary values would be an addition in foreign deman

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for Apple merchandises. Although the demand would be increased. the bead in monetary values could besides take to somewhat lower net incomes.

Another ruin to the U. S. dollar diminishing in value would be that the cost of supplies from foreign providers would increase. Apple. Inc. is really dependent on these foreign imports of parts so the addition in those monetary values could do a important loss in gross borders as good. On a positive note. other Personal computer and smart phone makers will besides be in this same quandary because many technological merchandises have foreign-produced parts so if Apple can battle these hurdlings more expeditiously so they can hold an advantage in the industry. The weakening of the U. S. dollar as I mentioned before as addition the monetary values of imports which should extinguish foreign rivals who are seeking to sell their electronics in the United States every bit good.

From 2007 to 2011 we have seen an overall lessening in the market value for PC’s and it its forecasted to go on to worsen through 2016 as show on figures below. Despite the lessening in the industry’s market value. Apple has had a steady addition in gross and net income over the past 3 old ages. Net Income for Apple increased from $ 14. 013. 000. 000 in 2010 to $ 25. 922. 000. 000 in 2011. Further. in 2012 net income increased to $ 41. 733. 000. 000. This shows that while the industry was worsening. Apple was able to remain strong and profitable.

In order to truly understand how Apple operates and what merchandises they offer to consumers in the personal electronics in comparing to other companies in the market. There are many participants in the personal electronics industry and Apple is 3rd topographic point for market portion capturing 11. 1 % of the US Personal computer market portion. HP is the taking participant in the US market accounting for 26. 1 % portion of the market. Dell accounts for 22. 3 % . Toshiba falls behind Apple with 9. 3 % of the market portion.

The hardware they produce can be accompanied by a assortment of Apple trade name accoutrement constituents consumers may wish to utilize with their Apple device. The most popular Apple devices include iPod. iPhone. iPad. MacBook and AppleTV. Apple merchandises run on their ain unique runing system. which sets them apart in the industry from other personal electronic manufacturers. Along with bring forthing the hardware and package.

Apple has its ain retail shops staffed with knowing employees who can be of resource to Apple users. Apple besides reaches out to third-party providers for illustration cellular telephone bearers for its nomadic devises and Best Buy has besides started selling MacBooks and Apple Desktop computing machines. Apple handles its ain service of these constituents through its retail shops or its client service centre. Along with these merchandises and services Apple has besides branched out into cloud calculating called the iCloud where people can hive away music. exposure. and information wirelessly and allows them to obtain this information a battalion of computing machines instead than merely one. Another

thing that Apple has late added is its Apple Television where clients can wirelessly stream iTunes. Netflix or other music and picture from their Mac or Windows based computing machine to a Television.

Apple competes with other houses in its industry by puting itself apart from them. It does this in three cardinal ways. The first is that Apple uses a “Think Different” attack to planing merchandises. “Think Different” means that they do non travel with the flow and make what everyone else in the industry is making. They allow themselves to be advanced and leaders instead than the follower. Second. is that Apple has one cardinal commission that makes determinations for the company instead than holding to work with spouse companies or subordinates. The 3rd manner that Apple sets itself apart from the competition is in design. It is said that apple is about two old ages in front of its rivals in many markets and most rivals are following Apple’s designs.

Another manner that Apple stays in front of the competition is that it is vertically incorporate. as explained earlier it owns all the constituents of the supply concatenation. Most of Apple’s rivals merely have one or two of the four. For illustration Dell. Toshiba. and many other rivals build the hardware and put Microsoft runing systems and package on their hardware.

One of the best things that allows Apple to vie is trade name acknowledgment and client trueness. Apple is recognized as holding one of the best security apparatus within its package ; viruses are virtually nonexistent in Apple merchandises with out the demand for an anti-virus package. Customer trueness is besides immense for Apple. users normally do non make monetary value comparing to Apple’s rivals where as many of the rivals clients will compare monetary values and benefits between merchandises and services. In other words. Apple users don’t even look to exchange to another trade name.

Overall we see Apple Inc. as a strong leader in the personal electronics industry and don’t foresee that stoping anytime shortly. This is shown by their ability to remain profitable in an industry that normally falls during an economic diminution every bit good as being ill-famed for their supreme invention in the industry and trade name trueness. It will be interesting to see what the hereafter holds for this ever-growing. advanced company.