Apple Technology Stock

Student’s Name
Professor’s Name
Course
Date
Apple Technology Stock
Company Profile
Steve Wozniak and Steve Jobs founded Apple Inc. in 1976. The company manufactures, develops designs, and advertises personal computers, portable digital music gadgets, media devices, and mobile communication. Additionally, it sells accessories, third-party digital applications, software, and networking solutions. The primary consumer segments of Apple’s products and services are Japan, the United States of America (USA), Europe, Asia Pacific, and Greater China. Some of the services and products provided by Apple Inc. include Apple TV, Mac, iPod, iPhone, iPod, Apple Watch, iPad, iPhone OS, iCloud, Apple Pay, OS X, WatchOS, professional software apps, and a variety of accessories (CNN Business, 2021). Apple’s headquarters are in Cupertino, California. This American multinational technology corporation is among the largest organizations in the world. Indeed, it has approximately 147,000 workers and generated a revenue of about $274.5 billion in 2020 (Wall Street Journal). Under the leadership of Tim Cook, Apple’s chief executive officer (CEO), the firm has made significant changes that have enabled it to retain a competitive advantage in the technology sector.
Industry Overview
The technology industry is highly competitive and Apple Inc. must have significant strategic decisions and core competencies to remain at the top. The primary Apple’s competitors are Dell, Samsung, Huawei, Microsoft, ASUS, Sony, HP, and Lenovo. The following is the macroeconomic environment’s overview of the technology industry:
* Political Factors
Apple Inc. is significantly affected by the government regulations in its decision-making processes. For example, it must implement policies that safeguard the privacy of its consumers of electronic devices.
* Economic Factors
The company has experienced steady growth rates, and it has never suffered from a high rate of employee turnover. The stability of the dollar exchange rates and inflation has further enabled Apple Inc. to grow and expand in new geographical locations.
* Sociocultural Factors
Apple Inc. is well-known for treating its workers well and is among the companies with highly paid employees. Specifically, the firm has a diverse workforce, which means that it pays attention to workers’ cultures, values, norms, age, sexual orientation, and gender among other demographic characteristics.
* Technological Factors
Apple Inc. manufactures high-quality electronic devices since it has the right technology and human labor to do it. For instance, the firm’s innovative workforce has enabled it to develop the iPhone 12 Pro and new models of Apple Watch in the past few years.
* Ecological Factors
Based on the statement by Apple’s vice president of environmental policy and social initiatives, Lisa Jackson, the company is committed to building high-quality products and offers services that would make the world a better place for humanity (Environmental Responsibility Report 5). As such, it means that Apple engages in activities, such as using renewable energy, that reduce global warming.
* Legal Factors
Apple Inc. adheres to the government regulations and responds to all issues pertaining to the quality of its products and services. For example, it engages in proper hiring practices and works in close collaboration with government agencies to contribute to policymaking in the technology sector.
Revenue Segments and New products
The following are Apple’s primary geographical segments and their respective revenues in 2019 (Pratap 1):
* USA - $116.9 billion.
* Japan - $21.5
* Europe - $60.3.
* Greater China - $43.68
* Asia Pacific - $17.4
The new and current products of Apple Inc. include (Clover 1):
* iPad Pro
* Powerbeats
* Mac mini
* MacBook Air
* Magic Keyboard
* iPhone SE
* iPadOS 14
* iOS 14
* WatchOS 7
* 27-inch iMac
* tvOS 14
* iPad Air
* Apple Watch Series 6
* Eighth-Generation iPad
* HomePod mini
* iPhone 12 and 12 Pro
* MagSafe
AirPods Max
M1 MacBook Air
Apple Fitness+
M1 Mac mini
Profit Drivers
Apple’s Competitive Position in Technology Industry
The company is highly competitive due to its superb brand reputation, high-quality products and services, and core competencies.
Apple’s Growth and Profit Drivers
The primary growth and profit driver of Apple Inc. is iPhone. As shown in Figure 1 in the appendix section, in the first quarter of 2018 the company generated revenues of $61.58 billion. In the first quarter of 2019, iPhones generated $51.98 billion and in the first quarter of 2020, the company had revenues of $55.96 billion from iPhone sales (Statista 1).
Expectations about Future Consumer Demand for the Product
The future consumer demand for Apple’s products and services is likely to increase if the company continues providing high-quality electronic gadgets fo...