Investing in Apple Through Changing Markets
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Investing in Apple through changing markets
Veronica Fritsch
MGT/521
May 23, 2011
J. Allison Kazerounian
Investing in Apple through changing markets
Global economy is constantly in a state change. Countries change from prosperous states to floundering states. The change can be quick, in matter of a year or less, or the change can occur slowly over decades. Businesses need to take into account the changes in economy when setting up strategies and tactics. To be successful businesses must have the capabilities to change with the economy to meets current consumer needs, demands, and spending habits.
Apple, Incorporated has proven resistant to the economic tide. Some of Apple’s resilience may be credited to a frequent supply of new products, favorable pricing from suppliers, and its ability to put money into savings (Krazit, 2009). Apple has continued to release new products throughout the recession started at the end of 2007. Between 2007 and 2011, Apple released the iPod Touch, iPad, and iPhone (Wikipedia, 2011). Subsequent to those releases there have been various updates on existing products such as the iPhone 4, iPad 2, and iPod Shuffle (Apple, 2011). According to Tom Krazit, Apple was able make a little extra money on its products because of a lowering of chipmaker and display vendor pricing. As sales increase the small amount extra that Apple is making on each product snowballs into a larger additional profit. Apple’s war chest is exceeding both internal and external expectations. In April 2011 Apple had an astounding $65.8 billion in cash or cash equivalents (Rusli, 2011). Whereas the company has not had a net loss since before 2008 (Apple, 2010), with a large stock of cash Apple will be ready to counteract a loss if it does occur.
Apple appears ready and able to handle the economic downturn. An option for this global company to remain in the black is to continue to sell and market its products worldwide. Apple can be found in...
Veronica Fritsch
MGT/521
May 23, 2011
J. Allison Kazerounian
Investing in Apple through changing markets
Global economy is constantly in a state change. Countries change from prosperous states to floundering states. The change can be quick, in matter of a year or less, or the change can occur slowly over decades. Businesses need to take into account the changes in economy when setting up strategies and tactics. To be successful businesses must have the capabilities to change with the economy to meets current consumer needs, demands, and spending habits.
Apple, Incorporated has proven resistant to the economic tide. Some of Apple’s resilience may be credited to a frequent supply of new products, favorable pricing from suppliers, and its ability to put money into savings (Krazit, 2009). Apple has continued to release new products throughout the recession started at the end of 2007. Between 2007 and 2011, Apple released the iPod Touch, iPad, and iPhone (Wikipedia, 2011). Subsequent to those releases there have been various updates on existing products such as the iPhone 4, iPad 2, and iPod Shuffle (Apple, 2011). According to Tom Krazit, Apple was able make a little extra money on its products because of a lowering of chipmaker and display vendor pricing. As sales increase the small amount extra that Apple is making on each product snowballs into a larger additional profit. Apple’s war chest is exceeding both internal and external expectations. In April 2011 Apple had an astounding $65.8 billion in cash or cash equivalents (Rusli, 2011). Whereas the company has not had a net loss since before 2008 (Apple, 2010), with a large stock of cash Apple will be ready to counteract a loss if it does occur.
Apple appears ready and able to handle the economic downturn. An option for this global company to remain in the black is to continue to sell and market its products worldwide. Apple can be found in...