Apple Strengths And Weaknesses Essay

3290 Words 14 Pages
Register to read the introduction… Tim Cook is the current CEO of Apple.
On August 20, Apple officially became the most valuable company in history in terms of market capitalization (“Forbes,” 2012). Heading into the final hour of trading on the NASDAQ, the stock had risen more than two percent, giving the company a market cap of over $620 billion with shared trading over $662 apiece. The reason—speculation over its newest product release—the iPhone 5.
Identification of the company’s internal strengths and weaknesses
• Product development. Doesn't invent the market, but its products set high standards for the market
• Design and utility. Sleek, not clunky. For instance, the desktop computer is part of the screen, not a separate box with wires; the iPhone has very few buttons and feels nice in the hand. Products are easy to use, almost intuitive
• Marketing. Clever and takes advantages of people's frustrations with other hardware
• Brand name
• Globally
…show more content…
The strengths show Apple’s foundation built upon a long line of unique products and branding, powerful research and development along with commanding marketing gurus that make Apple the powerhouse it has become today. Financially, the financial papers seem to be responsible and accountable with much thought put into Apple’s strategy. According to YCharts (June 30, 2012), Apple’s current ratio is 1.571, which is slightly above book value. When you have a current ratio of 1, it means that your current assets are exactly the same as your current liabilities. “The current ratio measures a company's ability to pay short-term debts and other current liabilities by comparing current assets to current liabilities” (YCharts, 2007-2012, para. 1). Apple’s gross profit margin (sales-cost of goods sold/revenue) is 42.81%, gross profit margin represents the percentage of each dollar of a company's revenue that is available to cover fixed costs after paying for the goods or services that were sold. With Apple seizing new opportunities every day, Apple will continue to dominate its markets for a long time to come and will remain fiscally responsible while continuing to make large profits, making it a wise decision to invest in the Apple

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