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Financial analyst Essay

I have chosen Apple Incorporated annual report for years 2006 and 2007 because it has a positive outlook based on growth, sound financial position, innovative technical products and I am familiar with their operations. The company was incorporated in California in 1977 and became a public company in 1980 through initial public offer (Apple incorporated form K). They Manufacture, markets develops and designs personal

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computers, related software, computer peripherals, digital music players, services computers and offers networking.

They also deal in the manufacture, development, design and market digital music players and related accessories they also assist other companies in the distribution of music, audio books, music videos television shows and games. The main products of the company include Desktops, Laptops and Notebooks, Software application Digital music players, the Mac OS X operating system, related peripherals, servers that is Xserve RAID Save and Xserve Server (Apple incorporated form K). HISTORY OF THE COMPANY

The company which Manufactures, markets develops and designs personal

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computers, related software, computer peripherals, digital music players, services computers and offers networking was incorporated in California in 1977 and became a public company in 1980 through initial public offer (Apple incorporated form K). They Manufacture, markets develops and designs personal

Need essay sample on "Financial analyst"? We will write a custom essay sample specifically for you for only $ 13.90/page

computers, related software, computer peripherals, digital music players, services computers and offers networking.

They also deal in the manufacture, development, design and market digital music players and related accessories they also assist other companies in the distribution of music, audio books, music videos television shows and games. The main products of the company include Desktops, Laptops and Notebooks, Software application Digital music players, the Mac OS X operating system, related peripherals, servers that is Xserve RAID Save and Xserve Server (Apple incorporated form K). The company manufactures and sells her products worldwide with marketing segments in various continents.

Apple Inc. uses online services, opening segment distribution centres, owns retail shops. The company has a variety of customers ranging from governments, education institutions, final consumers, business, non-governmental organizations, professionals and research centres for her products and services. Apart from her products ands services of third parties including Application Software, storage clerics (flash & floppy disks, CD, DVD’s), speakers, printers, headphones and other accessories (Apple incorporated form K).

The management and the board has enhanced and integrated device like digital videos, I pods, CDs & DVDs players, still cameras, cell phones and PCs. They also came up with a PC that include high quality user interface, complex applications can be run with ease, acceptance of cheap data storage devices, capability to connect to other digital devices easily and internet. Apple Company remains the only company with control of her designs and development of a personal computer from hardware, software and applications in the industry in the United States (Apple incorporated form K).

Management Analysis The company is managed by Mr. Stevens P. Jobs who is 52 years and is one of the cofounders. He is the chief executive. This means that the promoters are still in control of the management of the company. The finances of the company are managed by Mr. Peter Oppenheinner who is 45 years old. He couples as chief financial officer, vice president of finance and corporate control and principal accounting officer (Apple incorporated form K). The Operations Of The Company Are Managed By The Chief Operating Officer.

The Head Of This Division Is Called Mr. Timothy D. Cook, 44years. There Are Two Divisions Under It Headed By Mr. Ron Johnson , 50 For Retail And Mr. Anthony Fadell, 39 years of age Ipod Division (Apple incorporated form K). Economic Analysis: Economical segment: The US sub prime crisis and increasing oil prices has already had a global impact on global financial markets and could affect consumer spending worldwide. At first sight, this would seem a disproportionate reaction but banks all over the world are exposed to US debt.

Sub-prime lending was lending at higher interest rates as a means of helping American consumers of lower incomes and poorer credit records obtain mortgages. These loans were then sold on, in complex ways, to other institutions including hedge (higher risk higher return) funds. The treatment of sub prime loans by the banks is likely to have far-reaching effects including, possibly, a slowdown in the US economy and a confidence linked decline in US consumer spending (Apple incorporated form K). Fact is that US retail sales rose only 0.

3% in August 2008 suggesting increasing caution of the crisis ahead. US retail sales are a major driver of economic growth and may be viewed as an early response to a housing slump and financial market turmoil. Over the past 12 months, retail sales rose by 3. 9% excluding autos. However, the level of spending did not indicate recession tendencies though analysts expect growth to decline in the near future. There were modest increases in sales for furniture (0. 5%), electronics (0. 4%), sporting goods (0. 3%), and health care (0. 3%) compared with the same month a year ago.

This trends affecting world economy is contributing to the fall in demand for computers and other consumables that use the products of the industry. Market/Industry/Competitive Analysis: The company operates in a very competitive market of computers, electronics and accessories but they have innovated and started an online store for marketing their products and services. They also use the online store for marketing third party i. e Macintosh products and services. The natures of products they deal with are offered by companies with very competitive prices. The company should revise her pricing strategy.

To remain a leader to innovation and market leader, the company has invested heaving in research and development and has engaged in aggressive international marketing (Plunkett Research , 2008). To be ahead in marketing her products, the company has opened direct and indirect distribution stores where they have stationed innovative and knowledgeable staff members. The sales staffs have the knowledge on how hardware, software, services offered, peripherals and other accessories operate. They also have knowledge on the offer of after sale services i. e. training and servicing of computers.

This offer of after sale service has given the company advantages over other companies in the same industry enabling them to open 170 stores worldwide. The company’s competitors include Dell Inc. , IBM Inc. , Microsoft Corporation, Cisco systems and Hewlett – Packard Co. /Compaq, in the United States. Other products like cell phones and electronics have competitors including Nokia, Samsung, Siemens, Motorola and many others. To ensure her future endeavours, the company must come up with a shareholder rewarding policy and dividend investing policy (Apple incorporated form K).

The company’s strategy for growth is to become a market leader and innovator through producing its own software hardware and other technologies through design and development of their own, this shows the company has a bright future and from the ratios and other financial statements it is a health company to invest in. The company has opened many distributing stores in various parts of the world making them the market leader. This will influence my institution to invest my dollars in that company (Apple incorporated form K).

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