Apple Inc Financial Management: An In-Depth Economic Analysis

This report provides a detailed analysis of Apple Inc.'s financial management, emphasizing the significance of financial management in achieving business objectives. It explores the micro and macro factors influencing the technology sector, particularly focusing on Apple Inc., and examines the impact of these factors using SWOT and PESTLE analyses. The report discusses challenges such as decreased face-to-face communication, data security risks, dependency on technology, and expensive technologies. Furthermore, it presents factual information, including Apple Inc.'s quarterly revenue from 2005 to 2022 and regional revenue data from 2015 to 2021, to support its conclusions about the company's economic and financial performance. The report concludes by highlighting the importance of financial management for strategic business planning and adaptation to overcome challenges in the technology industry, specifically within Apple Inc.

Financial Management
APPLE

EXECUTIVE SUMMARY
Financial management is a business function which is primarily related to the business
profitability, expenses, cash and credit requirements so as to assist the organisation to have all
the necessary resources and means which are necessary in carrying out the business objectives
successfully and effectively. It is termed to maximize the value of firm's key stakeholders. In this
report, an overview of the business of Apple Inc is mentioned with due research and findings.
Apple Inc. is among the major electronic organisation in the global industry. The below report
highlights the key elements and the importance of the economic and financial management with
respect to the technology industry is given along with the various issues that the technology
industry has been facing and the ways to overcome those. The report also defines the various
micro and macro elements which have their due impact on the technological as well as the
economic sectors pertaining to Apple Inc. The report also highlights the key facts and impacts of
the past and current situation with the help of the SWOT and PESTLE Analysis of Apple to
provide an in depth knowledge of the effects and factors which affect the company. These have
been supported in the report through some facts and figures which focus only on the economical
as well as the financial perspectives along with effective recommendations and conclusion at the
end of the report.

Contents
EXECUTIVE SUMMARY.............................................................................................................1
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Explanation of micro and macro factors that effects the technology sector............................1
2. Discuss the impact of the PESTLE or the SWOT analysis on the financial or the economic
sector in the context of Apple company .....................................................................................2
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7
2

INTRODUCTION
Financial management refers to strategic planning, organising, directing, and controlling
of a financial enterprise or in an organisation or an institute. The financial management in an
organisation assists to determine the business objectives, create the key business policies, gives
the essential procedures along with the implementation of the business programmes (Bataev,
2018). In this report, financial management as a concept has been explained with respect to
Apple Inc. Apple Inc is an American multinational technology organisation which has key
specializations in consumer electronics, software and online services. The below report gives an
overview of the importance of economical and financial management with respect to the
technology industry and primarily Apple Inc. it provides the micro and macro technological,
economical and financial factors with the help of SWOT and PESTLE analysis to render an in
depth knowledge of such factors which generate their impact on the enterprise and how the
organisation plans to overcome them.
MAIN BODY
1. Explanation of micro and macro factors that effects the technology sector.
There are number of elements and aspects of micro and macro environmental that
influence the technology sectors in today's scenario. The micro environmental is particular for
the business enterprise or the sector in which it runs. Some of them are discussed below that is
facing by the apple: Decrease the face to face communication: with the emergence of the technologies the
apple company is facing lot of issues. Due to modern technology all the meetings are
conducting in online mode through many sources such as google meet, zoom and so on.
They are lacking to do the direct contact with their employees and their customers
(Budzinski, 2018). It will create the problem to understand the message, data, information
and so on. Hacking and stealing of the firm data: In each and every company, the data contains
important and crucial part in the success of the firm. In that case, if the rivals of the apple
corporation get the data of them then the organization can suffer from many losses. The
data can be got hack by the hackers and steal their essential information and data as well
and sold it to the their rivals. So it is very harder to the apple to maintain the security.
1

 Dependency of the modern technology: It affect the most to the business firm. Due to the
technology, each and every employee of the apple has been depended on the modern
technologies. They have been utilizing it at excess level. They all are addicted and being
dependent on the utilization of the modern technologies. At present time, without using it,
they are not able to do task even a simple task. It reduces the creativity of their staffs in
workplace. Expensive technologies: It contains the several types of gadgets, devices and software
that are costly so it will increase the cost of the products (Dass, Nanda and Wang, 2020).
Every ordinary middle class person can not afford that products so it may reduce the sale
of the apple. Training of the employees: The apple is facing lot of problem to hive the training to new
employees or existed. The technologies are very complex or hard to understand. So
everyone is not able to get the key features of the technologies, software, gadgets and
devices in the business. They need to provide the efficient training by the trainer. It takes
lot of time. They need to do lot of practices to become capable to use them. Maintenance problem: These all the gadgets, software and the devices are evolved and
designed by the professional developers and scientists. When there occurs any problem
then the organisation requires to call them for fixing it. It carries high cost as well as
time. So the apple has to bear lot of unwanted expenses like this that affect the
organization as well as cost of their product.
 Distraction in working: There are many workers who get distracted by these modern
way of business at the time of working at workplace. They start utilizing the technologies
in non relevant things or unusual rather than their working related such as their
entertainment, movies, playing games, watching videos and so on. They can not
concentrate or focus due to utilization of the modern way for the non relevant things.
2. Discuss the impact of the PESTLE or the SWOT analysis on the financial or the economic
sector in the context of Apple company
PESTLE analysis is the broad estimation of the macro factors in the respect of Apple company.
1. Political factors: Apple is the USA organisation and recognized in terms of the revenue
or growth in country (Fadaei Nejad and et al., 2018). It is not majorly affected by the
government rules and regulations. But recently it has been observed that the war between
2

US and China has major impact on the revenue of the Apple and increases the risk for the
businesses stability.
2. Economic factors: There are various economic factors like inflation, economic growth
rate and the GDP that has impact on the Apple economic performance. The increasing
growth of the developing nations will rise the disposable income of the consumers.
Company always consider the competitive factors in the international market.
3. Social factors: Apple enterprise face the problem to predict the consumer behaviour or
the expectations. In today scenario it is difficult to image the world with out any gadgets,
mobile phones and tablets. Therefore Apple has maintained the uniformity in all the
international businesses. It makes the number one company to sell the high premium
products (Morozko, Morozko and Didenko, 2020).
4. Technological factors: The rising collaboration of the technology has expand the growth
chances and provide more advanced services to the customers. The technology has very
short life time they get obsolete very soon so it is necessary to update them to beat with
other competitors.
5. Environment factors: The apple company is manufacturing more energy save goods
such as the battery, processor and various kinds of equipments that takes the less heat and
it is working on the advanced technology solutions. The company has prohibited to
provide charger with the devices and creates favourable impact to reduce the
environmental waste.
6. Legal factors: These are the boundaries which generates the threat to the company if it is
not compliance. It is must to follow guidelines otherwise company can bear the lawsuits
and spoil the image of the company (Muczyński, 2020).
SWOT Analysis: It is the important tool for evaluating the performance of the company on the
four aspects-
1. Strength- The strengths of the apple are innovative goods, specific design and to
capability to introduce their own software, hardware, products and rank the top most firm
in the country. This is the reason Apple is able to build the image and to hold the market
share despite of the high cost.
3

2. Weakness- The organisation has the restricted distribution network and sell the goods by
their own store. These stores are spread in the few areas and the prices of these products
are very high (Ross and Coambs, 2018).
3. Opportunities: It is the first businesses that is maintaining the brand loyalty in the mind
of the customers. The customers is happy and satisfied with the apple products. This
entity is concentrating on the top innovations and producing the goods by focusing on the
quality.
4. Threats: There are several competitors that is emerging to give competition to Apple
company. The outburst of coronavirus has damaged the revenue of the Apple by the
20% . The rising of import duties or the tariff quotas has affected the net profit and rise
the cost of the phones. The Apple enterprise is facing with large number of law suits
(Safkaur and et al., 2019).
Factual Information of Apple Inc.
4
Illustration 1: Apple Inc Quarterly Revenue from 2005 to 2022(in Billions)

Apple Revenue By Region 2015 to 2021 ($Bn)
Year Americas Europe China Japan Rest of Asia Pacific
2015 93.8 50.3 58.7 15.7 15
2016 86.6 49.8 48.5 16.9 13.6
2017 96.6 54.9 51.6 15.3 14.1
2018 112 62.4 51.9 21.7 17.4
2019 116.9 60.2 43.6 21.5 17.8
2020 124.5 68.6 40.3 21.4 19.6
2021 153.3 89.3 68.3 28.4 26.3
Source: Company data
5

CONCLUSION
From the above report it can be concluded that financial management is a key aspect of a
business enterprise as it helps the organization in planning, organizing and directing the business
in the most effective manner. The various micro and macro factors which are both technological
as well as economical have been taken in the report to give an overview of the impact that they
make in the technology industry and primarily to Apple Inc. The various negative impacts that
the key micro as well as macro factors have on the technology sector like employees have
difficulty in focus, the data sometimes obtained is massive to handle such impacts have been
concluded in the report with regards to Apple Inc and how the company overcome those to
continue its operations in a successful manner. The end part of the report consist of few facts and
figures have been provided to conclude the statements and arguments made in the below report
and to give a clear idea of he economical and financial information of Apple Inc.
6

REFERENCES
Books and Journals:
Bataev, A.V., 2018, September. Analysis of the application of big data technologies in the
financial sphere. In 2018 IEEE International Conference" Quality Management,
Transport and Information Security, Information Technologies"(IT&QM&IS) (pp. 568-
572). IEEE.
Budzinski, O., 2018. Financial regulation as an anticompetitive institution. In The Palgrave
handbook on the economics of manipulation in sport (pp. 159-179). Palgrave
Macmillan, Cham.
Dass, N., Nanda, V. and Wang, Q., 2020. Within‐syndicate conflicts, loan covenants, and
syndicate formation. Financial Management, 49(2), pp.547-583.
Fadaei Nejad, M.E. and Delshad, A., 2018. Investigate the effect of ROA in companies listed on
Tehran Stock Exchange. ـJournal of Financial Management Perspective, 8(21), pp.51-
69.
Morozko, N., Morozko, N. and Didenko, V., 2020, November. Financial conditions for the
development of entrepreneurship in a modernized economy. In Innovative Economic
Symposium (pp. 669-676). Springer, Cham.
Muczyński, A., 2020. Financial flow models in municipal housing stock management in
Poland. Land Use Policy, 91, p.104429.
Ross III, D.B. and Coambs, E., 2018. The impact of psychological trauma on finance: Narrative
financial therapy considerations in exploring complex trauma and impaired financial
decision making. Journal of Financial Therapy.
Safkaur, O., Afiah, N.N., Poulus, S. and Dahlan, M., 2019. The effect of quality financial
reporting on good governance. International Journal of Economics and Financial
Issues, 9(3), p.277.
7