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Apple Company Analysis - Essay Example

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Apple Company Analysis Name Institution Date Abstract Apple Inc. designs, manufactures and markets personal computers and associated software products, computing, peripherals and communications solutions (Annual Report, 2011). Initially, the company was called Apple Computers Inc…
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Apple Company Analysis

The company’s clients are varied with respect to the variety of products, for instance, educators, business organizations, and daily basis customers. Owing to its wide range of products, the company has the capability to target a wide range of customers, with most sales being conducted online and a host of others from direct sales, retailers and the company’s retail shops. The company has current operations distributed all over the world; in the United States, Japan, Europe, Asia Pacific and some parts of Africa. This paper is to present the reader with a complete analysis of Apple Inc. The paper includes a detailed SWOT analysis of the company as well. Apple Company Analysis On April 1, 1976, three men, Steve Jobs, Steve Wozniak, and Ronald Wayne co-founded Apple Inc (Annual Report, 2011). The company did not receive immediate attention in the market but until 1984 when the company introduced the Macintosh computer. Jobs and Wozniak left the company in 1985 in pursuit of other goals. The company went ahead with the release of new computer models that were unique in style and more portable as opposed to other computer models. Even with these improvements, the company could not cement its position as a dominant computer manufacturing company across the globe and in 1997, one founder Steve Jobs rejoined the company when it was losing huge sums of cash. Apple released the iMac in 1998 and immediately gained profits with increasing market share thus turning the downward spiral of the company around. Apple’s revolution of the digital music distribution came with the introduction of the iPod in 2001 along with iTunes and in 2007, the company expanded its scope of production and entered the smart-phones world when it released the iPhone. Today, Apple is among the leading innovators in computer hardware and software, phones and a host of digital portable devices. The company started an advertisement dubbed the “Get a Mac” advertisement campaign that featured two celebrities which has successfully been running and most watched on You Tube (Annual Report, 2011). Furthermore, by 2008, the company had grown into a large business entity in that it employed over 35, 000 people selling over 32.5 billion units in more that 270 stores. Apple Inc. has also increased the market share of its products, for instance, iMac increased its market share from 9% in 2007 to 21% in 2008, MacBook having a 17.6% market share of laptop sales in 2007, and a 70% market share of music portable players with the production of iPods. The company had a quick start in the smart-phone market with the introduction of the iPhone taking over a market share of 26.7% in 2007 but later dropping to 19.2% in 2007. SWOT Analysis The BCG Matrix The BCG matrix or the Boston Consulting Group matrix helps firms to determine the resources spent and how, and the firm’s returns. The star in this model is the iPhone. Stars are profitable products with strong market anticipation for growth that tend to provide the company with more attention and have an increasing effect on the revenue of a company. A major contributor to Apple’s increasing income is the iPhone. In 2008, Apple recorded increased revenue by 38% thanks to the huge success of the 3G iPhone that saw 6.9 million pieces sold within the first full quarter (Annual Report, 2011). Conversely, iPhone 3G’s hype has gone down and sooner than later, the product will eventually become a cash cow. Apple consumers will begin getting bored ... Read More
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