APPLE CASE STUDY NOTES:
Competitive Strength Analysis:
HIGHLIGHTS
APPLE Inc. Net Revenue:
o Fiscal 2020 Q4 $64.7 Billion…Annual Revenue: $274.52 Billion
o Fiscal 2021 Q1 $111.4 Billion
APPLE’s Net Worth 2020: $2 trillion
Apple remains as one of the highest performing American multinational technology
company.
APPLE 2020 Net Income:
o 2020: $57.41 Billion
o 2021 $28 Billion for first quarter of fiscal year 2021
o Diluted earnings per share: $1.68
One of the most successful products of Apple is the ‘iPhone’. In the fiscal year 2020,
iPhone sales of $137 Billion represent half (50%) of apple’s overall revenue of $274
Billion.
Apple's Recent Developments
On November 10, 2020, Apple announced the launch of its new M1 micro processing chip
designed specifically for its Mac computers. "M1 delivers up to 3.5x faster CPU
performance, up to 6x faster GPU performance, and up to 15x faster machine learning, all
while enabling battery life up to 2x longer than previous-generation Macs
Stock Information
NASDAQ: AAPL $135.13
Q1 2021 earnings per share (EPS): $1.68
Recent revenue improvement of 21.37% year on year in Q1 2021
revenue
ANNUAL GROWTH IN REPORTED EARNINGS??
ANNUAL GROWTH IN SALES??
SALES
How does Netflix make money, what is happening now, today?
Apple has multiple streams of revenue, but the iPhone generates the lion’s share of the
company’s income.
Apple sells smartphones, personal computers, tablets, wearables and accessories, and
services.
iPhones are Apple's biggest source of revenue by product, and the Americas is the largest
revenue generator among its geographic regions.
Gross margin as a percentage of sales was 68.4% in Q1 FY 2021. Its annual gross margin
in FY 2020 was 66.0% compared to 63.7% in FY 2019.
Gross margin as a percentage of sales for Products was 35.1% in Q1 FY 2021. It was
31.5% in FY 2020, down from 32.2% in FY 2019
* While the U.S. is still the dominant market, Asia is rapidly catching up. In Q1 FY 2021,
markets in China, Japan, and Asia Pacific contributed 37% of operating income and 34%
of revenue. That makes the Asia region dramatically more important than Europe to
Apple for growth and profits.
* The Americas segment includes both North and South America. Revenue grew 11.9% in
Q1 FY 2021 to $46.3 billion, comprising about 42% of Apple's total revenue. Operating
income grew 20.6% to $15.8 billion, comprising about 39% of the operating income for
all segments.
as of October 29th, 2020
APPLE’s DOMINANCE
What sets apple apart from its competition?
Apple does not create, they reinvent an already existing product and make it better.
Embodying dedication, passion, quality, and craftsmanship in all their services and
products
“think different” and not letting others impact the products/services they bring to the
market and drive innovation.
Apple owns their own hardware, software OS, software apps, and services and iCloud
architecture.
Keeping true to great design principles within the Apple DNA
KEEPING TRUE TO THE KEY TENETS STEVE JOBS ADOPTED AS THE
BRAND’S CANON:
o DESIGN, QUALITY, MARKETING, LEADERSHIP, & INNNOVATION
Having the leadership to demand quality products with design aesthetic consumers like
and integrating the latest innovation with brilliant marketing all add up to keeping your
brand on top.
an ecosystem that makes it possible to bring all of the company’s products and services
together seamlessly.
have a retail presence. A retail presence allows consumers to see, touch and use the
product before they buy it
brand loyalty. When customers see value in the product they buy, they are more likely to
become life-long customers.
the quality of the product by committing to refurbish and recycle. A well-made product
can be refurbished to ensure it stays in use for as long as possible. Apple also accepts
older devices for recycling, an important issue for people who buy their products.
Strategic Investments in 2020
