Business_Analisis_2

Business Analysis Management – MGT / 521 We already make a SWOT analysis with The Apple Company, now we are going to take a look in their finance. We will be entering into their page looking for their income balance, cash flows and balance sheets. When we see all that it will be compare to other companies in the same industry of The Apple Company. We will talk about the financial health of each company, how globalization it’s affecting them. In other word we will be comparing the products and financial tablets of Apple with other companies, such as Motorola and Samsung. Let’s start talking about apple, the company that it’s getting bigger and bigger. In the Apple report of the second quarter results to the media, at his title say, “All-Time Highest Revenue and Profit New Accounting Standards Adopted”. Starting this article and I quote: “CUPERTINO, California—January 25, 2010—Apple® today announced financial results for its fiscal 2010 first quarter ended December 26, 2009. The Company posted revenue of $15.68 billion and a net quarterly profit of $3.38 billion, or $3.67 per diluted share. These results compare to revenue of $11.88 billion and net quarterly profit of $2.26 billion, or $2.50 per diluted share, in the year-ago quarter. Gross margin was 40.9 percent, up from 37.9 percent in the year-ago quarter. International sales accounted for 58 percent of the quarter’s revenue”. They have been growing and growing since the put in the market their product of the I phone and Apple TV in the fiscal year of 2007, the financial results of each quarter from fiscal 2007 through fiscal 2009 have been revised. Even thought we have the facts and prove that Apple grows have been from this product by this time, Apple has also make history and profit with product such as computers in the early 1970, as the article pointed history: “Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers”. What we are saying Apple had been there for some time, but it’s now that the global it’s seeing all that Apple has grown as a technological company. We just see Apple as a company that has been growing, first in a slow pace, but by this time with their technology grows has been a lot. Apple as we just said a great company, but as always has its competition, such as Motorola and Samsung. The company Motorola since 2007 (see table 1) has been declining especially in 2009, even though their slogan is “the company for every customer life style”. Motorola is known around the world for innovation in communications and is focused on advancing the way the world connects. They are right, they are a company who has a lot of product to offer the customer, to a telephone cordless, DSL modems, home digital video, smart phones, Bluetooth, among other thing, but even this could not make them fulfill their own task in the finance. Also they had been having a lot of changes in making better products to changing their name; maybe that instability had been the struggles to this company. Samsung, on the other hand in comparing with Apple also have a lot of selection to home improvement, mobiles, computers, photos, TV’s, videos among other thigs. For Samsung has been another history in 2010 their profit just went up, so it mean their work had been going into the right direction, so they does not had to be concern for now. Using their own chart they management area has been doing their job. Comparing the three of them taking the lead it’s Apple with a profit in 2010 of $3.38 billion, Motorola of 162 million and Samsung with $135,771,646, but all three companies had been working in the new best thing, or just the thing that get the customers attention, as the management see it. Table 1: Consolidated GAAP Results A comparison of results from operations is as follows: Third Quarter (In millions, except per share amounts) 2007 2006 Net sales $ 8,811 $ 10,603 Gross margin 2,505 3,370 Operating earnings (loss) (10) 968 Earnings from continuing operations 40 727 Net earnings 60 968 Diluted earnings per common share: Continuing operations $ 0.02 $ 0.29 Discontinued operations 0.01 0.10 $ 0.03 $ 0.39 Weighted average diluted common shares outstanding 2,318.4 2,476.8 We just compare their financial but when we talk about product Apple does not have that much of amplitude, they have their best product in their own field, the IPod, Macs, I phone, TV’s and I pad. Samsung it’s another story as we said it is from home improvement, mobiles (phones, smart phones), computing (printers, laptops), photos (cameras, camcorders), TV’s, videos and the ramification in each one among others. The same comes with Motorola a lot of product to a telephone cordless, phone software, two way radio and accessories, Home IP video, DSL modems, home digital video, smart phones, Bluetooth among other things. Apple it could be good in innovation, speed and technology but lacks in a lot of product or maybe ramification, but we have to said they maybe has less product but they have more profit for them. Apple has been a company getting profit and profit let’s see a chart to prove it: In another article we could see the growing of this company just seeing with the side of the used of the I phone, it’s utility; “the Iphone does a lot of useful things pretty well, well enough that it is replacing several specialized devices that do one or two things really well. Space in backpacks, pockets, and purses is a finite resource, as is money (obviously). As a result, many are opting to carry only the IPhone with them when they might have toted several devices around. Here is a short list of devices with capabilities duplicated to some degree by the IPhone” (Kottke.org, 2009): 1. PDA 2. iPod 3. Point and shoot camera 4. Personal Computer 5. Nintendo DS or PSP 6. GPS 7. Flip video camera 8. Compass 9. Watch 10. Portable DVD player 11. Kindle 12. And all the other Adds that the I Phone had It is not just about this product utility, it’s about the impact that has made all around the world, just I phone. The I phone, or let’s talk about Apple, around the world they could be recognize by anyone, so this has made the company globalize, and this has been for the business one of the best thing that could happened to the since the Macs. By doing a benchmarking analysis, even though Apple does not have that much number of product are making more profit than Motorola and Samsung in their mutual expertise and also over their different directions in products. The three companies are floating in their fields, but one leading the others as we said before, but cannot forget some are having struggles more than the other, with ups and down, but Apple going up and up, we will see the future results. The financial health of Apple it’s very good, so the management there know what they’re doing in the improvement of their product to get the customer to need them and/or want them. References Kottke.org. (2009). The Browser.com. Retrieved from http://kottke.org/09/09/your-company-theres-an-app-for-that Retrieve from: http://kottke.org/09/09/your-company-theres-an-app-for-that Motorola, (2011):www.motorola.com Retrieve from: http://mediacenter.motorola.com/Press-Releases/Motorola-Announces-Filing-of-Form-10-Registration-Statement-in-Connection-With-Planned-Separation-32d9.aspx Retrieve from: http://mediacenter.motorola.com/imagelibrary/downloadmedia.ashx'MediaDetailsId=620------tablas Samsung, (1995-2011);www.samsung.com Retrieve from: http://www.samsung.com/us/aboutsamsung/ir/financialinformation/auditedfinancialstatements/downloads/consolidated/2010_con_quarter04_soi.pdf Retrieve from: smsunghttp://www.samsung.com/us/aboutsamsung/ir/financialinformation/auditedfinancialstatements/downloads/consolidated/2010_con_quarter04_cf.pdf Retrive from: http://www.samsung.com/us/aboutsamsung/ir/financialinformation/auditedfinancialstatements/downloads/parent/2010_quarter04_fp.pdf Apple (2011) www.apple.com Retrive: http://www.apple.com/pr/library/2003/oct/15results.html Retrive from: http://www.apple.com/pr/library/2010/01/25results.html