APPLE – NOT JUST A FRUIT ANYMORE
Tripti is a member of The Motley Fool Blog Network -- entries represent the personal opinion of the blogger and are not formally edited.
Steve Jobs and Steve Woznaik’s vision took shape in 1976 in the form of Apple Inc (NASDAQ: AAPL) which is one the world largest technology company expertising in computer hardware, software and portable devices. Starting with personal computers, the company unfolded its wings and touched great heights of the sky with launch of world-class products. Setting standards for itself one after the another, today Apple has become a well established brand and consumers favourite with its unbeatable performance and end to end support system.
Current Success Story
Apple Inc, earlier known as Apple Computers Inc, success story is not a fairly tale. It has witnessed various ups and downs, still it has been able to make a standing in its industry with its promise to deliver top-notch products to the users. Its journey began with launch of Apple I – Personal computers and took a turn with launch of Mac and Macbooks. Slowly and steadily it gained speed and captured the market with launch of varied products such as iPods and iTunes, Music Store, iOS range of Smart Phones whose simplified and add on features gained user’s confidence. Apple provides exceptional features such as temporary location sharing in its devices. Further Apple offers to its users Apple TV which is a box that plugs into TV and can connect wirelessly into any computer having Apple Program iTunes in it. It can then play music, videos or photos from iTunes on your television. These add on features gives Apple’s revenue graph a boost. The companies graph hit the market like a storm and enjoyed very steep rise in revenue in initial years with revenue increase of almost 74% in FY 1982 and Return of 10% on sales. Like any other business it had to face a slowdown for certain period but like a true fighter it again picked momentum after a span of time and reported a revenue of $ 108.249 million (64% rise from it’s last year revenue) supported by return of 24% on sales. Apple Inc paid last dividend of $2.65 per share in Oct 2012.
Graph below narrates the success story of APPLE
Future Plan of Action
Even in this bearish economy, Apple holds an optimistic thought and is expected to perform exceptionally. It is expected that PC Companies will replace old Microsoft Corporation Windows with Windows 8 devices in 2013 which will give a new height to the growth of Apple. Apple’s tablet and Mac computers are also expected to take share from Window PC as introduction of Windows 8 is not expected to shut Microsoft’s business so steadily. The company is well responsive to business demands and delivers outstanding products at competitive prices.
Competition
Like any other industry Apple does not enjoy monopoly in the market and faces stiff competition from companies such as Samsung, Google and Microsoft. As per IDC’s figure for 2nd quarter of 2012, Google Inc (NASDAQ: GOOG) hold 68% of the smartphone market whereas Apple could grab only 18.8%. Google Apps includes many security apps to keep the data protected and prevents it from stealing from hackers. It provides automatic data backup on Google server which can be utilised if device is lost. It could emerge as a tough player in technology market because of speed that its devices can support, unlimited apps download facility and many more. Apple has to battle fiercely to keep its position unhindered as it lacks android feature. High End Tablets are also hitting market share of Apple hard as it contains many features similar to iPad offered by Apple at much lower price. But Apple is still able to maintain its share and prestige in the market because of its efficient support system and easy adaptability. Android Phone does not have direct access to smartphone market which gives APPLE edge over others.
Research in Motion Ltd (NASDAQ: BBRY) is also all set to give tough fight to Apple with the launch of its new device Blackberry 10 on 30th January 2013. BB10 is ready to hit the market with a blast by offering features of better touch screen and multitasking. Currently if a person is working on say Twitter and suddenly a mail comes, then the user has to exit twitter first to check his mail but BB10 allows the user to do so without exiting the existing apps. BB10 also has Blackberry Enterprise Server 10 (BES10) which can support not only BB10 but also Apple iOS and android through single centralised management.
Conclusion
Inspite of all the pros and cons, Apple has been able to built its root so deep into the soil of technology market, that it is very difficult for anyone to pull it out. The company has been able to engrave its name in the industry by its undying and consistent effort to gift the industry with products with unmatchable features. Whenever a product is on verge of getting obsolete, the company surprises the users with the launch of another mind-blowing product which makes the identity of the company distinguished from others.
Triptii has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. Is this post wrong? Click here. Think you can do better? Join us and write your own!
