A dvances in Economics, Business and Manage

Keywords: Apple Inc., Analysis, Marketing Strategy, Opportunity

1. INTRODUCTION

Apple Inc, founded in California on Jan. 3, 1977 as Apple Computer, Inc, with its present name adopted on Jan. 11, 2007, is a technological company that primarily operates in the computer hardware industry, and its primary SIC is radio & TV communications equipment. Apple launched its first product ‘Apple 1 computer’ in 1976. Since then, Apple has grown exponentially in terms of products and services. Today, one of the most successful products of Apple is the ‘iPhone’. In the fiscal year 2020, iPhone sales of $137 Billion represented half (50%) of apple’s overall revenue of $274 Billion. Apple is benefiting from continued momentum in the Services segment, driven by a robust performance of App Store, Apple Music, video, and cloud services. Moreover, demand remains healthy for Apple’s product portfolio including iPad, iMac, and Wearables. Apple’s short-term prospects are bright, driven by new iPhones that support 5G, revamped iPad and Mac line-up of devices, health-focused Apple Watch 6, and robust growth in the Services business. By looking at a solid balance sheet and strong cash flow
statement, Apple’s ability to generate profit is above the average level in the industry. However, increasing scrutiny and legal issues have brought impact on the company performance. Following the Yiran Meng’s Valuation on Apple Inc [1] and based on the results generated by the valuation models and financial indicators, the recommendation for the customers is to buy or hold shares of Apple. In addition, the author also suggests that the company should consider the increase of dividends when there is a shortage of good investment opportunities.


Analysts of the MarketLine research report [2] believes that Apple’s distribution channels, R&D, and revenue growth are the major strengths of the company, whereas lawsuit and declining profitability remain as concerns. Smartphones market in North America, strategic initiatives, stores expansion, new product launches, and strategic acquisitions are likely to offer growth opportunities for the company. However, foreign exchange risks, intense competition, dependence on network providers, and technological changes could impact its business operations. Faizul Haque [3] in The

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