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AAPL Analysis - After gathering countless pages of SWOT analysis, sales data, financial data, stock projecting, and company background information, it is time to come to a conclusion about the health of AAPL and the prospect of investing in it.

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AAPL - A Business Analysis Pt2 Many aspects of our world continue to change. The days of neighborhood corner stores are gone forever; also gone with these neighborhood corner stores are the jobs they provided to the citizens of their towns. Larger companies have moved in, replacing these smaller stores with larger and fewer stores. Entrepreneurs who used to make a great living running their small businesses are finding themselves in positions which they can no longer compete with these larger corporations. This leads these entrepreneurs to have to enter a new line of work; most likely as employees of these larger companies. Because of this, the entrepreneur now makes less money as do the employees he or she once employed. This has changed the economic tends in America and the world. People have less buying power and they did even five to ten years ago. If a company is to strive, or even survive, in today's economic landscape, it has to account for this economic trend. ...read more.


Introducing new products is not enough for a company to find success in today's world. A company needs to have a strategic plan for competing with its competitors in the marketplace. AAPL recently disclosed that it pre-bought nearly $8 billion in components. In doing this, AAPL bought up as much as 60% of the available touch screens in the market. AAPL got a huge price break because of the quantity it purchased. AAPL was able to do this for two reasons. First, it has the cash. Secondly, it knew that there would be actual customer demand for its products and that it could sell all of the products it makes with these screens. A competitor doesn't have those luxuries. Motorola (MMI), for instance, hopes it can sell millions of Xooms, but because it does not have the same customer following that AAPL does. This would mean that MMI would be taking a much larger risk if it made such a purchase. Therefore, it does not really matter because MMI does not have the huge cash reserves in the bank to prepay for components in large quantities that AAPL has. ...read more.


I learned about AAPL's stakeholders and how they all benefit greatly from AAPL's financial health. In reviewing AAPL's financial statements, I learned how financially healthy they are and why. I learned about their strategic approach to business and how they are able to compete with their competitors by purchasing larger quantities of components than their competitors are capable of doing. As a mutual fund manager, it is my duty to decide on which companies my mutual fund invests in. It is my duty to make sure that I am investing wisely to make the fund grow for my clients. There are two ways in which a fund grows. The first is through dividends that are reinvested to increase the number of shares that are held, the other is increase in the price of the stock shares. AAPL does not give dividends, so the latter would need to be very strong in order for a company to be a sound investment. AAPL has a proven track record on the latter and time again has double in price over the years. It is for this reason that I would choose to add AAPL to the portfolio of my mutual fund. ...read more.

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