The foundation of business speaks loudly of its goals and aspirations. Apple Incorporation is a technology company, ranked the number one company in the world by Forbes and is reportedly valued at $182.8 million (Forbes). This company was founded on April 1, 1976 in Cupertino, CA, but it wasn't until Steve Jobs rejoined the business in 1996 that the company started to make its way to the top of the world's most powerful companies. Steve Jobs' vision of a 'computer for the rest of us' sparked the PC revolution and made Apple an icon of American business (Staff). This idea made the advancement of technology truly possible, the business initiated its upward movement in the market with the invention of the iMac in 1998, followed by equally innovative products such as the iPod in 2001, the Mac OS x in 2001, the MacBook in 2006, the iPhone in 2007, and the iPad in 2010. The technological advancements of portable computers and smartphones have iconized the Apple name and logo. We will examine Apple Inc. for in depth, studying the company it is, their competition, their ethics, their economic impact, their marketing strategies and target consumers, and a few interesting facts, just for fun, for an overall analysis of this corporation.
Apple Inc. is a technology company that does business on a multinational level. As you mentioned previously, this company is ranked the number one company in the world. This firm develops, manufactures, and sells electronics, computer software, and online services. As you can tell from the name of this business it is an open incorporation, meaning it sells shares and has a corporate structure. According to NASDAQ, Apple has 2,884 shareholders and holds a total of 2,948,242,223 shares with a total value of $641,714,402,258. Corporate structure means they must have a board of directors, corporate officers, and hired employees. I believe they chose this ownership because it would ensure a more organized foundation for the business. One of the main advantages' corporations have is perpetual life and I believe it was the main reasons why Apple chose this ownership. As a corporation this entity is its own artificial person who will outlive its stockholders. This is one of the advantages of being a corporation because the company does not end with the retirement or death of the owner or in this case a shareholder. For example, Apple lost its co-founder and CEO Steve Jobs in 2011, the company did not cease to exist it simply got a new CEO. Another advantage Apple has for being a corporation is that is has specialized management, they can hire skilled, knowledgeable and professional employees. They also have the facility to raise capital; they are a technology company so if the need funds to create a new product they have access to larger capital and the ease of borrowing money from lenders. It is easier for corporate businesses, like Apple, to get loans because they have financial statements to back them up, and they do not have to rely on an individual's credit to process loans. However, there are some disadvantages of being a corporation. Apple, like any other corporation is regulated by the government. Because of these regulations, Apple chooses to manufacture overseas, in China. Another problem with being a corporation is that there is a lack of secrecy, so the detailed reports submitted to the government agencies and shareholders are readily available to the competitors. Although Apple is considered a monopoly in smartphones, it does have competition; specifically, in its computers.
One of the most important aspect of business is competition. Considering the competition and acknowledging the level at which the business is competing is crucial. Apple is one of the few fortunate companies who have managed to stay ahead of its competition; always having top of the line quality and unmatchable products. Apple manufactures many electronics; however, its competition is primarily in computer manufacturing. Some argue that it also has competition on its smartphone, yet Apple is almost considered a monopoly in this industry. Computer manufactures are its greatest competition. Such competitors like Dell and HP, are two computer businesses that have a great impact on the sales of Apple products. These companies offer laptops for low prices. For example, a customer can purchase a Dell laptop for about $369.99, or an HP laptop for $199.99. These prices are way below Apple's cheapest laptop, the MacBook air laptop, which prices begin at $849.99. However, the famous saying, You get what you paid for, says it all. Most of these laptops do not compare to Apple's products, they have better memory capacity, and more top of the line processors. What people fail to realize is, yes, they are paying less, but they are getting less. So, I believe Apple has made a great choice in leaving prices where they are, they simply are charging for what they offer. They have a mindset of giving their best, not just the minimum. Lastly, as I mentioned before, many people argue that Apple smartphones have competition, Samsung. In a sense, they might be, because people choose an easier phone to handle, yet again they do not realize that they get what they pay for. Currently, Samsung has its newest smartphone out, the Galaxy S9 with a starting price of $729.99 and Apple has its newest smartphone out, the iPhone XS with a starting price of $999. People do choose Samsung just to save some money, or because the android platform of a Samsung allows them to do certain functions that iPhone do not. Yet, the reason apple is almost considered a monopoly in this industry is because the actual product is unmatchable. The level of security, the features, and its impressive technology is what makes it worth every penny. I would say, although Apple has high prices, their choice to make these pricing decisions is perfect. There focus is on giving their best innovations in technology and they must sell at an according price. They are not a company who will suddenly choose to drop it prices and especially not their quality to make more sales.
Apple is, as it has been previously mentioned, one of the most successful businesses in the United States. However, it has suffered quite a few critiques on its ethical behavior. Many argue that Apple values its profits over its good moral behavior. One of the most controversial topics is its method for manufacturing its products; they are accused of overlooking harsh working conditions. Apple does choose to do its manufacturing in foreign countries because the production and opportunity costs are lower than they would be in the US; this decision does increase its profits significantly. In their defense the working conditions and laws of other countries are completely different from ones view of laws and regulations of the workplace. Apple (2012) reports the Apple Inc. requires its suppliers to stand by the Suppliers Code of Conduct that seeks to establish the ethical behavior in supplier's business activities. This code also ensures if any supplier is found in violation any of these codes, Apple has the right to terminate its contract with that supplier. Apple has had to terminate contracts with suppliers for failing to abide by the codes. Thus, proving their morals are above the advantage they have of using foreign labor. However, Apple has made some unethical decisions. On Dec. 20, 2017, Apple admitted to slowing down old phones. This is a very unethical decision because they are degrading products customers already bought. I believe their intentions were to sell more new phones, however, in the long run this affected them tremendously. People felt betrayed and even ripped off by their actions. This bad ethical decision has no defense and taints their reputation permanently. In the future it would be wise not to mess with sold product or even existing products. They would really live up to their name if they made innovations and improvements in technology, as it was their goal from the start.
Apple is a successful worldwide company that has greatly impacted the economy of the United States. Being one of the largest and most recognized technology firms in the United States it has impacted the economy thought its years of existence. As such an innovative business they provide consumers with products that they are willing and able to buy, even with their elevated prices. Our economy works with the demand consumers have for a product and the price and quantity supplied by the producers. The thing with Apple products is that its utility is worth the price of its products and people are readily willing to buy each new product. So, how impactful has Apple been in the U. S economy? According to Apple Inc. they are going to contribute $350 billion to the U. S economy over the next five years. They are already responsible for over 2 million jobs across America, which is a great impact on our economy because employment generates income which in turn is used for spending in other markets. This new contribution to the economy will create more new jobs thus, positively impacting our economy. Beside these jobs, Apple, like any other business, pays taxes on the business, they pay taxes on wages, and they pay taxes on their products. All these taxes flow into our economy and is what makes it grow and cycle properly. Another thing Apple is doing is they are increasing the number of domestic suppliers and manufacturing partners. This is very important because when businesses keep their suppliers and manufacturers domestic, they are keeping the revenues here in the U. S. For our economy it's the best thing companies can do because our money can flow in and out of the economy without having to pay taxes imposed by foreign countries.
Apple markets to a diverse community. Because it is a technology company, it can be marketed to vast amount of people. They keep their product marketing very plain and simple since, it does not necessarily focus on one specific target market. It promotes itself as a user-friendly company, meaning the user can use their products in any way they need to. For example, they market to students at all levels of education. They advertise anything from iPad's to Apple watches and MacBook's. They provide students with educational discounts and payment plans; and they obviously use these deals as a marketing strategy. They also market to businesses, especially corporate firms that need to more technology. Their marketing strategy is to market their products as tools for your business. They offer businesses business financing plans as well as discounted prices. Apple says, Apple products have always been designed for the way we work as much as for the way we live. Today they help employees to work more simply and productively, solve problems creatively, and collaborate with a shared purpose. And they're all designed to work together beautifully. When people have access to iPhone, iPad, and Mac, they can do their best work and reimagine the future of their business. (Apple Inc.) Here we could see that although they are marketing to businesses, this is posted on their Apple at work page, it is still so plain and simple it can almost apply to any user. Because it mentions so generally how great the products work with each other and people who use the products can give their best, it paints a mental picture that they are practical and useful to anyone. Moving on, the product they market the most is the iPhone, like I mentioned previously, the iPhone is a dominant product in the smartphone industry. It is the most popular product that is in high demand; Apple markets this product the same other products, simple and straightforward.
After doing this research on Apple, I learned many interesting things. I have always known Apple was big, but I had not imagined that its success has been so great. I found it interesting to find out some interesting facts about the company. For example, that they have a no smoking ban on their computers. It turns out that smoking while using your Apple computer, automatically voids the warranty. Another fact I found interesting is that the business has more money than the U. S treasury. They are a very wealthy business with billions in excess capital. They can buy out several big companies. It was also interesting to find out that the co-founder Steve Wozniak sold his scientific calculator to get money when they were starting up the company. Anyone who is familiar with Apple Inc. and its products knows that their quality is always good. However, it might be interesting to know that the iPhone accounts for 40% of their annual sales revenue. All these facts were found on The Facts Site. It also is not surprising to find out that it is the most successful company in the world, but you can deduce that from the information mentioned previously.
Overall Apple Inc. is a very successful and profitable company. After doing some research on this company I found that overall it has great products that are highly in demand because of their quality. Also, their decision making, and strategies are clearly successful. Like any other company when it comes to ethical behavior it comes down to individual perspective. In my opinion in business it is necessary to make certain decisions with the best the financial interest even though some decisions might not seem appropriate to some people. As to its marketing, they are doing a marvelous job. Because marketing and advertising is one of the most difficult aspects of business, it is admirable that their simple way of marketing gets them so far. In part it's because its products, specifically the iPhone, are so popular, well known and trusted. Also, their strategies to target students and businesses is a great opportunity because people tend to prefer Apple products and even more so when they are offered discounted prices. My overall suggestion for Apple Inc. is to keep making their great products. It would be great idea to start a more affordable line of products, if they tried this, they could possibly dominate the technology industry.
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