APPLE Report: Executive Summary / Part One
Apple Computers is a recognized industry innovator and pioneer. It has created a competitive advantage as a multi-product, multi-business company that continues to evolve its hardware platforms, system software technologies, multimedia products, networking and communications products, peripherals and services to meet the ever-changing needs of the dynamic computer market.
Apple is the core competitor of the Wintel machines (computers that utilize Windows environment from Microsoft and Pentium Processors from Intel). Current market share, as of the first nine months of 1996 is 5.3% down from 7.4% in 1995. Apple's future will lie in their ability to effectively manage the impact of industry wide pricing, increased competition, and the ability to deal with shorter life cycles of their inventory.
The inventory policy has to be very responsive to the short-term shifts in the varying customer demands, This is because if the anticipated unit sales growth for the new and old products are not met, the competitiveness of the Apple will be greatly affected. The distribution channel must be arranged with care because consumers' choice of products are highly influenced by resellers. Apple must maintain a stable and good relationship with the resellers to ensure their products will be accessible to consumers in the market.
The global marketplace is very important to Apple with 53% of its revenue generated from international consumers in the first nine months of 1996 versus 48% for 1995. Various factors will therefore determine the company's success in the future. Exchange rates are very critical to Apple, because its consolidated sales and gross margins are heavily dependent on the stability of the exchange rate. The strengthening of dollar will certainly impose a negative impact on its revenue. |
