Apple Inc. Analysis
Section 1: Company Status Update
Background
Apple Inc. is a multinational corporation established and incorporated in California in 1977. (Cite) Apple Inc. is an innovative company engaged into manufacturing, production, selling and marketing of high-tech products and services. It's globally well-known products include personal computers (Mac), cell phones (iPhone), tablets (iPad), other media devices and accessories. Apple engages into software production and development and provides its customers with products maintenance service. The company also sells digital content through its internet service instruments, such as App Store and iTunes Store. The company possesses a well-established global product distribution chain, consisting of online store, local retail stores and affiliated third-party authorized wholesalers and retailers. As a part of its business, Apple also sells and markets compatible third-party products and services, which mainly fall into Apple products’ accessories category. Apple’s wide range of customers includes governments, all-level enterprises, educational institutions and individual customers.
Financial Analysis
The company’s financial performance is influenced by variety of factors given its international nature of operation and is constantly fluctuating. Apple’s net sales in 2015 rose by 28% compared to 2014, and fell by 8% in 2016 compared to 2015.(k10) The most recent decline is caused by a year-over-year decrease in iPhone net sales. (K10) The situation can also be explained by overall depreciation of the most of foreign currencies compared to the U.S. dollar. It has been partially offset by net increase in the sale of services. In April 2016, Apple increased the total amount of its capital return program by $ 50 billion. (Cite) In 2016, the company spent about $19 billion to repurchase its stock and another $12.2 billion were paid out as dividends. Furthermore, the corporation issued several term debts, including $23.9 billion US dollar-denominated, and A$1.4 Australian dollar-denominated ones.
The general architecture of the company’s net sales stays stable over the last few years with a slight increase in iPhone sales and corresponding decrease in iPad sales. In 2016, iPhone sales comprised 63%, iPad – 10%, Mac – 11%, service sales – 11% of company’s total net sales.
The geographical structure of sales in 2016 did not change compared to 2015. As a general rule, the share of each region’s net sales in absolute quantities decreased but stayed the same in relative terms within the total net sales structure due to the overall net sales decrease. Americas stays Apple’s most significant market with 40% share of total sales, followed by Europe with the share of 23%, Greater China region – 22%, and Japan - 8%. The rest of 6% of total net sales accounted for ‘Rest of Asia Pacific’ region.
The company’s price per common stock share in 2016 fiscal year has been recorded in the range between $89.47 to $123.82 per share. The total amount of shares comprised 5,470,820 thousand units with 25,641 shareholders as of October 2016. Earnings per share went down: in case of basic shares the decline has …
