Essay on Apple & Dell Financial Analysis

4050 Words Aug 18th, 2012 17 Pages
Financial Analysis Project
Dell and Apple are American companies that participate in the industry of Electronic Computers, according to the SIC 3571. This industry is oriented to the manufacture of diverse kind of data processing systems. In 2001, the largest computer makers in the United States were Dell, Compaq, Hewlett-Packard and IBM. They produced about 40 percent of personal computers shipments in the world according to International Data Corporation (IDC). Dell is positioned as the bigger competitor, but in 2002, Hewlett-Packard acquired Compaq, challenging Dell’s leadership in this sector. (1)
The computer industry is organized in several categories such as supercomputers, mainframes,
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“The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. The industry is capital-intensive: annual revenue per employee is about $460,000. US imports of computer equipment amount to nearly $100 billion, more than half from China. Exports are about $45 billion, with more than a third going collectively to Mexico and Canada”. (10)
Apple believes that continual investment in research and development is critical to the development and enhancement of innovative products and technologies. Therefore its strategy is to continue building and hosting robust platforms for the discovery and delivery of third-party digital content and applications through the iTunes Store.
Apple is uniquely positioned to offer superior and well-integrated digital lifestyle and productivity solutions. (11)
Both Apple and Dell participate in the Technology Sector and Personal Computers Industry. They are highly recognized companies in their market, and according to Fortune 500 “Ranking of America’s largest corporations” in the last three years they are being well positioned. (12)(13)(14):
Fortune 500 “Ranking of America’s Largest Corporations” Year | Rank Dell | Rank Apple | | | | 2011

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