Analyzing Apple's Performance

Topics: IPhone, Apple Inc., App Store Pages: 2 (565 words) Published: September 22, 2015
7. Research and give an update on Apple’s performance as of the time of your reading this case. Apple’s performance can be analysed from a few areas, namely share price, bargaining power of its suppliers and its updated financial results. (a)Share price

A few significant events affect the share price of Apple in its recent history. Introduction of IPhone
In June 2007, Apple launched the iPhone, the third leg to Apple's innovation tripod. This propelled the share price to pass the $100 mark. The iPhone was a multifunction smartphone which provided a unique touch-based interface to the customer.

Steve Jobs' health condition
Steve Jobs’s health condition was closely related to the company’s share price as well. When he announced his medical leave on 14 January 2009, Apple's stock took a $13 billion hit the same day , though his health problems was known to the public for a long time. When Steve Jobs returned on 29 June 2009, Apple shares rose by 20 percent. Introduction of IPad

On 25 January 2010, the release of the IPad into the market caused the stock price to rise 15 percent after the IPad was unveiled.

(b) Bargaining power of Apple's suppliers (moderate)
Apple’s suppliers have a moderate bargaining power which affects Apple’s performance. (1) Use of Intel processors
By announcing the plan to use Intel processors, there is a high switching cost. This decision has its pros and cons: Pros
1. There is introduction of new amazing products.
2. There is lower production cost and increased sales.
Cons
1. There is a need to fight against other competitors.
(2) Strong Vertical Integration
Apple has a strong vertical integration. It is able to expand its business into areas that are at different points on the same production path. Pros
1.It coordinate activities in supply chain.
2. It increases customer exposure.
3. It enhances product quality and enjoy unparallel pricing power. Con
1. There is bureaucratic cost increase.
(3) Product...
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