Finance- Analysis of Apple Corp

Financial Analysis: Apple, Inc.

Apple Inc. designs, develops, and markets personal computers, media devices, and portable digital music players. Apple also develops and markets software, services, peripherals, and networking solutions, as well as marketing third-party digital content such as copyrighted media and computer applications and accessories. Their physical product line consists of personal computers (iMac desktop computers and MacBook laptop computers), iPhone (mobile communications), iPad and iPad mini (tablet computing), and iPods (digital media players). All Apple devices run their own proprietary operating systems (Apple, Inc., 2013).

Apple operations are primarily located in the United States, and their headquarters are campused in Cupertino, California. At the end of fiscal year 2012 (September), the company employed 76,100 people with 72,800 being full-time or full-time equivalent and 3,300 temporary employees and contractors (Marketline, 2013). The company sells its products worldwide through its retail stores, online stores, and direct sales force, as well as through third-party cellular network carriers, wholesalers, retailers and value-added resellers servicing personal consumers, small and mid-sized businesses, and education, enterprise, and government customers (Apple Inc. 2013).

Apple states their business strategy is “bringing the best user experience to its customers through its innovative hardware, software, peripherals, and services” (Apple Inc., 2013). Apple’s business strategy relies on its unique ability to design and develop its own operating systems, hardware, software, and services for a more streamlined customer experience and ease-of-use. The company believes that continual investment in research and development, marketing and advertising is critical to this strategy (Apple Inc. 2013). The company has five “operating segments”, Americas, Europe, Japan, Asia-Pacific, and Retail (all Apple retail stores worldwide). Each...