Bank of America: Investment Worthy?
June 12, 2011
Apple Inc, a Sound Business Investment?
The decision to invest in a company requires research and analysis. As an investment broker, I am currently considering investing in Apple, a leading technology development firm. Apple designs, manufactures and sells personal computers, mobile communications, portable digital players, and a host of other software and network services. In order to make a sound decision regarding this investment, a SWOT analysis will be conducted to understand the organization’s strengths and weaknesses, and the opportunities and threats it faces. In addition, Apples’ ...view middle of the document...
According to Apple’s Annual Report, On October 1, 2010, Mirror Worlds, LLC was awarded $208 million per patent for each of the three patents covering technology used to display files they alleged Apple infringed upon. The company is appealing the verdicts, but there is no guarantee that they will prevail.
Dependency on Steve Jobs. Apple relies heavily on Steve Jobs, CEO and a small pool of leaders to innovate. Without these key people in place, Apply may not continue to have its competitive edge. According to Moojoo, “Apple's engineers spend 100% of their time making products planned by a small club of senior managers--and sometimes entirely by Jobs himself.
Retention of key personnel. Apple is headquartered in Silicon Valley where the competition for experienced and skilled personnel is the technology industry is high. Apple’s ability to attract and retain the best talent is not guaranteed.
According to Telecoms and technology report, the demand for data and Internet services on smartphones is still growing (Telecoms and technology report, 2010). There is huge demand for touch-screen devices and is expected to account for more than half of the total mobile phones shipments in 2013
The global economic condition is uncertain and is a threat. High fuel costs, negative financial news, tight credit, and unemployment could result is low consumer and business spending. This could also impact the company’s stock price. In addition, a significant portion of Apple’s revenue and earnings is derived from its international operations. They have to comply with import and export requirements, tax laws, foreign exchange controls. The company’s financial condition could be adversely impacted by the...