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Financial Analysis of Apple Company

In: Business and Management

Submitted By saburokba
Words 973
Pages 4
Siraj Aburokba
Susan Robertson
Accounting 1A
April 30 2014
Financial Analysis Apple

I am not a huge fan of Apple products, although I am a big fan of their company. No matter what you read in the press or business press about Apple the fundamental business strategy at Apple is a financial one. Apple’s fundamental strategy is to squeeze as much profit possible from every sale it makes. Apple’s financial strategy is to maximize , a financial strategy that has been put to use since Steve Jobs returned to the company. However every thing great must have a downfall, Apple doesn't have much weaknesses but they might affect the company financially in the long run. One of Apple strengths is Customer loyalty combined with expanding closed systems. First, Apple now has a full range of apps, software and products that are linked and support each other. Second, new products and programs will be released soon (iTV), hence expanding the system. Third, Apple has a strong customer loyalty, which increases due to Apple’s closed system, which, in turn, is supported by customer loyalty. So the combination of Apple’s expanding closed system and customers’ loyalty increases competitive advantage. Apple is a leading innovator in mobile device technology. Apple has been chosen as the most innovative business in the world for the 3rd time in 2012. Company’s ability of producing innovative products is the strength the company builds upon and is able to bring the best products to the market. Apple’s financial performance is one of the best among many similar companies. Company currently holds about $10,000,000,000 in cash, which can be used for acquisitions, buying back company shares , etc. It also has a higher gross profit margin than its other competitors, which is equal to 43.9%. Company has no debt and is not affected by interest rates or credit markets. Apple…...

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