Apple Analysis

FINANCIAL ANALYSIS FOR APPLE (APPLE2)

Apple Inc. designs, manufactures and markets mobile communication and media devices,

personal computers and portable digital music players, and sells a variety of related software,

services, accessories, networking solutions and third-party digital content and applications.

1. Industry Analysis

We position Apple in the smart phone industry, because more than half of Apple`s net sales

is from iPhone. In 2015, the worldwide smartphone market saw a total of 1432.9million units

shipped, marking the highest year of shipments on record.

Porter`s five force analysis

Threat of substitute of Perhaps, wearable device can become a substitute for smart phones. But now,

products and services

in this industry, the threat of substitutes is low.

Threat of new entrants

In the smart phone industry, barriers to entry is low. But there is high barriers

to entry in the IT industry. So the threat of new entrants is moderate.

Competitive

rivalry The market is highly competitive. In the industry, any company cannot be

within the industry

taken lightly.

Bargaining power of Only through the industry, consumers can get the right products and services

customers

successfully. Bargaining power of customers is low.

Bargaining power of For basic components, bargaining power of suppliers is low. But for core

suppliers

components, such as chips, bargaining power of suppliers is low.

2. Business Model and Competitive Advantages

The Company designs, manufactures and markets a series of hardware and software. It has

built a closed ecosystem. Apple's competitive advantages include differentiated user experience,

supply chain advantage, technical advantages, ecological chain system benefits, network effect,

switching costs and user stickiness, branded advantages, and sales strategy.

3. Business Strategy

Apple`s business strategy is differentiation, while Samsung`s business strategy is

diversification. Apple...