It is widely known that Apple Inc. is still one of the leaders of the technological market while being famous for its signature products such as the iPhone, iPad, and iMac. In the stock market, this publicly-traded company operates under AAPL (Yahoo Finance, 2017). It could be said that one of the most interesting facts about the enterprise is its ability to save its integrity and motivation even after the death of Steve Jobs.
It continued the advancement of its products and recently introduced new versions of iPhone and iWatch. Apple Inc. focuses on satisfying the constantly rising needs of its target audience by emphasizing the importance of its design and technological development while supporting these initiatives in other companies and individuals such as app developers (Apple, Inc., 2017a). The primary goal of this paper is to discover the company’s financial viability and evaluate the efficiency of its management team, including CFO and CEO. In the end, conclusions are drawn to summarize the main findings of the paper.
As it was mentioned earlier, Apple, Inc. is a publically traded company that is listed on NASDAQ stock exchange while its value is presented in USD (Apple, Inc., 2017c; Yahoo Finance, 2017). Generally speaking, it could be said that the enterprise continues to be attractive for investors due to its continuous growth in its stock value. Thus, this positive tendency is also reflected in the company’s revenues that continue being stable since 2013, with a gross profit of $84 billion in 2016 (Yahoo Finance, 2017). Returning to stock value, it was $150.05 recently with +$1.32 change, and this fact implies good news for shareholders (Apple, Inc., 2017c).
As for Holding Period Return (HPR), its value is approximately 60%, which implies that Apple’s shares are growing quickly. Overall, it could be said that Apple Inc. is financially stable, and this matter supports the fact that it will be viable in the recent future.
Another essential matter to consider is the management of the company, as it defines whether the enterprise will be successful when operating in different segments. Tim Cook replaced Steve Jobs, became CEO, and gave priority to the sufficient development of the company in terms of its innovation and design (Apple, Inc., 2017b). At the same time, one cannot underestimate the role of CFO, Luca Maestri, and his contribution to the financial viability and prosperity (Apple, Inc., 2017b).
Only working together as a team assists these individuals in building a strong and recognized brand while equally cherishing relationships with the customers, employees, and suppliers. A combination of these factors implies that the company is still united and has no extensive gaps in its corporate governance.
In the end, it could be said that Apple Inc. could be considered as a favorable company for investment, as its annual return on shares is rather high. This positive trend is actively supported by effective corporate governance and outstanding financial performance. At the same time, orientation towards innovation can be considered as another definer of Apple’s success. Nonetheless, apart from these strengths, Apple Inc. should not underestimate its competitors.
Nowadays, competition in the market continues to intensify due to decreasing entry barriers, and the company has to pay attention to any changes in market shares of the rival firms, as otherwise, it may easily lose its leading position. Overall, taking into account these changes can assist in improving Apple’s competitive edge and maintaining its positions as a market leader.
References
Apple, Inc. (2017a). Apple Design Awards celebrate the best in innovation and creativity. Web.
Apple, Inc. (2017b). Apple leadership. Web.
Apple, Inc. (2017c). Investor relations: Stock price. Web.
Yahoo Finance. (2017). Apple Inc. (AAPL). Web.