Financial Analysis of Apple Inc.

Running Head: FINANCIAL ANALYSIS 0
Financial Analysis
(Student Name)

FINANCIAL ANALYSIS 1
Table of Contents
Background of the Company...........................................................................................................2
Market share of Apple.....................................................................................................................2
Cost for Operation of Apple............................................................................................................3
Revenue per employee of Apple......................................................................................................3
Market Value of Apple....................................................................................................................4
Operating margin, Cash flow from Operation.................................................................................5
Extent of the Gap.............................................................................................................................6
Cost and Benefits of Apple..............................................................................................................7
Cost..............................................................................................................................................7
Benefits........................................................................................................................................7
Regulations......................................................................................................................................8
Conclusion.......................................................................................................................................8
References......................................................................................................................................10

FINANCIAL ANALYSIS 2
Background of the Company
Apple is the leading corporations in the digital market. The company was established in
the year 1976 in California, USA. In the year 1976, the company was introduced as Apple
Computer Inc. for the design as well as manufacturing of the computer electronics, commercial
servers as well as hardware. Apple with time has also brought about a significant reputation in
the computer electronic aspect (Heracleous & Papachroni, 2016). The user of Apple electronic
tends to be fascinated about as well as loyal to the product as well as on the other hand those who
have no experience with the product of Apple criticize them a being too expensive. Later that
year, the company has reached a greater market segment. The company succeeds in making more
than $1 million in annual sales. The company has spread its business through market personal
computers, mobile communication device as well as other portable digital music with video
players (Clarke & Boersma, 2017). The firm also vends a variety of associated software,
peripherals, services as well as interacting solutions. The company has expanded its business
through online stores other than retail stores that enhance the sales and revenue of the company
in an effective manner. In the recent, the company endures to lead the business in the process of
invention with its high-quality processors, iLife, OS X operational system. The company Apple
is also spread legend the digital media uprising with its iPod a moveable music as well as their
video player along with the Apple iTunes online store (Chikhale & Mansouri, 2015).
In the following part, there will be a detailed analysis of the market position of the
company and the manner the company operates in a competitive market. The analysis of the
operational activities will be done in the report that will help in analyzing the efficiency of the
company in an effective manner.

FINANCIAL ANALYSIS 3
Market share of Apple
The statics represents the arcade share of the company Apple in respects to the sales of
the smart iPhone contained by the segment of smartphone from the year 2017 to 2019. In the first
quarter of the year 2019, 11.7 % of all the smartphones that are vended wide-reaching was an
iPhone. Throughout the fourth quarter of 2018, the worldwide trades of iPhone hit 64.5 million
units, making the company Apple 15.8% market share throughout the period. It was despondent
from approximately 73.2 million unit sales as well as 17.9% market share throughout the fourth
quarter of 2017 (Den Hartigh, Ortt, Van de Kaa & Stolwijk, 2016). The drop of apple was the
major decline of any major smartphone maker during the period. The share of Apple rose by 6%
in extending the dealing, to an off-hour value of approximately $165. The standard price of the
company barred at around $157.93 on January, the day when the company Apple dropped the
income forecasts for the quarter as well as bashed 10% off the share. The company has stated the
number for its financial first-quarter user novel edifice that offers the figure of gross margin for
its service as well as products segment as well as suppression the element trades number for its
utmost famous products which include iPhone (Chen & Ann, 2016). The revenue for the service
segment of the company which includes Apple Music, Apple Pay as well as iCloud storage is
topped as $10.9 billion through marking 19% year over year enhances. The company stated a
gross-margin in its services part of 62.8%. The development proportion of approximately 19%
for the group is at stumpy of tendencies. The company raised its service income year over year
by around 17% last quarter as well as around 18% in the year-ago quarter. However, it has a
development rate as high as approximately 34% within the former as well as half a year (Divya
& Kumar, 2016).