Apple Inc: Performance in a Zero-Sum World Economy

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Apple Inc: Performance in a Zero-Sum World Economy Introduction On November 1st, 2010 – John Tarpey, Senior Financial Analyst was hired for full 2010 financial analysis of Apple Inc. The basic questions he deemed worthy of investigating were how Apple’s performance is continuing to be outstanding, while the world and U.S. economy was flat to negative, and whether Apple will be able to sustain this high level of performance and major innovation Apple Inc.’s Company Background The main information regarding Apple Inc. is as it is shown on the table below: Company History * The Founders Build a Company: 1976-1984: The company was founded on April 1, 1976 by Steve Jobs and Steve Wozniak in Steve Job’s garage with a seed money earned from the sale of Job’s minivan. * Professional Managers Fail to Extend the Company: 1985-1997: Jobs wanted to take the company in a risky direction, but no one was on board 14 year leave of Jobs resulted in company struggles and high turnover in top management. * Jobs Leads Apple “Back to the Future”: 1998-2001: Apple introduced the iPod; thus creating a new market and re-opened Apple retail stores. Jobs takes his 1st leave from the company in 2009. * A Corporate Renaissance?: 2002-2006: International stores were opened and market area was expanded through Europe. An alliance was made with Intel. * Mobile Consumer Electronics Era: 2007-Present: The Company’s name was changed to Apple Inc. as its first sign of expanding the product range and not being only a computer company. Later on, Apple introduced iPhone, App Store, iPad and Apple TV. Jobs announced his surprising leave in 2011. Current Situation * Current Performance: Unaudited summary data for Apple Inc.’s year 2014-Quarter 2 performance is presented on the table below: * Strategic Posture * Mission: Apple designs Macs, the best personal

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