Apple Inc.
Investment Summary
Blake Donovan | Eric Rachmel
Technology Sector Overview
The technology sector in the United State includes more than 140,000 companies with combined annual
revenues of 900 billion dollars. More than 60 percent of this segments revenue comes from the largest 50
participants for the reason that these companies have advantages in access to both capital and marketing.
Technology companies face global competition, so cost control is critical to success in which large
players are able to invest in development of differentiation. Many times technology products and services
are expensive and demand often times depends on the income of consumers and profitability of business
customers. The product cycle is often short and continuing advances in knowledge constantly produce
new versions of products. This industry is capital-intensive and sees average annual revenue per worker
of nearly $300,000.
Brief Company Overview
Apple designs, manufactures, and markets personal computers, mobile communication devices, and
portable digital music and video players and sells a variety of related software, services, peripherals, and
networking solutions. Its products and services include the Mac line of desktop and portable computers,
iPhone, the iPod, Apple TV, Xserve, software applications, the Mac OS X operating system, third-party
digital content and applications through the iTunes Store, and a variety of accessory, service and support
offerings. Apple sells its products worldwide through its online stores, its retail stores, and third-party
wholesalers. The Company sells its products to consumer, small and mid-sized business, education,
enterprise, government, and creative markets. Apple’s overall business strategy is to control the design
and development of the hardware and software for all of its products, including the personal computer,
mobile communications and consumer electronics devices. The Company’s business strategy...