The Current Business Performance of Apple - Assignment Example

Apple INTRODUCTION Founded in the year 1976, Apple Inc. (Apple) is one of the renowned s in the highly competitive technology and communication device manufacturing industry. From the period of its inception, Apple has been enjoying continuous growth in the versatile business industry in different spheres ranging from computer hardware and software, consumer electronics, and digital distribution business industry (Apple Inc., “Apple Reports Fourth Quarter Results”). THESIS STATEMENT The assignment critically focuses on describing the current consumer electronics and computer hardware and software (H&S) manufacturing business industry using relevant information from different secondary sources. In addition, the discussion of the assignment also tends to focus on current business performance of Apple pertaining to its financial, operational, managing and strategic background of the company. PART 1: INDUSTRY INFORMATION With regard to the major competitive scenario, business organisations have been often identified to involve significant strategic characteristics in comparison to their competitors. In relation to the current emerging trend in the consumer electronics and computer Hardware and software manufacturing business industry, organisations are often considered attaining significant growth by delivering wide range of streamlined products and services to the target customers. The exceptional strategic measures along with striving pace in research and development have substantially enabled the industry to contribute a large portion in the global economy. The striving business practices and performance of the market leaders have been critically identified to obtain a large financial growth over the last two decades in the global consumer electronics and computer manufacturing industry. In relation to the current industry trend, the industry has witnessed to simultaneously perform in line with the unabated economic transition. According to the current statistical reports, global consumer electronics manufacturing industry has been recorded to US$ 226bn over the past five years with an annual growth of 0.7% in 2014 (IBISWorld, “Global Consumer Electronics Manufacturing: Market Research Report”). In addition, the strategic measures and practices including wider brand differentiation along with unique mode of business operations have substantially enabled the electronic manufacturing market leaders to achieve continuous success than other business sectors. In relation to the current trend in this respective industry, aggressive expansion of business units across different developing economies have been also recognized to stimulate a major economic growth in the global consumer electronics and computer equipment manufacturing industry (Lam, “Apple Computers”). Correspondingly, the strategy associated with brand promotion and streamlined advertising and promotional activities have further witnessed to enable the global consumer electronics manufacturers to obtain their commercial goals. In this context, cutting edge features along with advanced technological aspects have further provided the market leaders in this respective business industry to accumulate extensive amount of sales. PART 2: BACKGROUND COMPANY INFORMATION With regard to the current business performance, Apple can be widely accepted as one of dominant marketers in the global consumer electronics and computer hardware and software manufacturing industry. The company is well-known for its cutting edge technological features in accordance with the changing trends of the global consumers. Continuous effort of innovation along with unique business strategic measures and practices has substantially enabled Apple to obtain larger market shares than the other competitors in this particular business industry. Moreover, exceptional strategy of designing, manufacturing and marketing its wide number of renowned products has successfully enabled Apple to achieve robust growth in its financial performance (Lam, Chow, Dabboussi and Lei, “Apple Computers”). According to the present financial stature of Apple, it has been observed that the annual sales growth have significantly elevated from US$ 32.48 billion (35.30%) in 2008 and US$ 42.6 billion (31.17%) in 2009 to US$ 65.07 billion (52.73%) in 2010. In the year of 2011, the annual sales revenue was recorded to be US$ 108.6 billion with a robust growth rate of 66.90%. These figures depict a considerable growth rate apparently attributable as a major strength of Apple (MarketWatch, Inc., “Annual Financials for Apple Inc “). In relation to the recent statistical record, the financial performance of apple has been observed to obtain significant growth in the year 2014. According to the financial statement of the company, it has been observed that annual net sales of Apple is US$ 182795 million with a gross margin of US$ 106,606 million, which is 6.5% higher than the annual net sale of 2013. A detail financial result till the month of September 2014 has been provided hereunder. Fig: Consolidated Statement of Operation (September 2014) Source: (Apple Inc., 2014) In relation to the recent business operations of Apple, the company tends to equally focus on its each brand ranging from personal computers (PC), media devices and mobile communication’ digital media players along with different computer hardware and software products. In addition, producing computer peripherals’ third-party digital content and range of application programs can also be considered few of the major segments of Apple leading to its financial performance (Apple Inc., “Form 10K (Annual Report)”). In relation to the current market distribution strategy of Apple, the company associates with different direct and indirect divisions of its distribution channels located across the globe. The key distribution channels of the company include retail stores, direct sales staffs along with third-party cellular arrangements and retailers, wholesalers and value-added resellers. In this regard, it can be also stated that the extensively widen market distribution network is also a major facet of Apple that helps the company to accumulate robust financial growth in each financial year (Apple Inc., “Form 10K (Annual Report)”). CONCLUSION With due regard to the aforesaid discussion, it is evident that the modern business industry of consumer electronics and computer hardware and software manufacturing industry is undergoing extensive growth over the past few years. The market leaders such as Apple, in this respective business industry has been recognized to achieve major financial growth due to its continuous process of delivering cutting-edge products to the end customers. In this regard, strategic measures and practices associated with aggressive expansion and continuous innovation have played a significant role for Apple to stimulate its strong financial performance. In addition, unique business strategy of brand promotion and differentiation has also enabled the company to achieve extensive financial growth in the modern consumer electronics and computer equipment manufacturing industry. Works Cited “Apple Reports Fourth Quarter Results.” Apple Inc. 2014. Web. 8 Nov. 2014. “Form 10K (Annual Report).” Apple Inc. 2011. Web. 8 Nov. 2014. “Global Consumer Electronics Manufacturing: Market Research Report.” IBISWorld. Web. 8 Nov. 2014. Lam, Olivia., Raymond Chow, Samer Dabboussi and Cissy Lei. Apple Computers. Web. 8 Nov. 2014. “Annual Financials for Apple Inc.,” MarketWatch. 2014. Web. 8 Nov. 2014. Read More