《Apple Computers Financial》.pdfVIP

Apple Computer’s Financial Performance Abstract Since its formation in 1976 Apple Computer has been a pioneer in the PC market. Despite its brilliance in design, and the quality of the user experience from its computers, Apple was increasingly challenged by the rise of IBM-compatible machines and the Windows operating system. Following profound crisis in the 1990s, the firm had a renaissance under the leadership of its previously exiled founder, Steve Jobs. Eventually, the runaway success of the iPod and iTunes music products restored the firm’s profitability. This case provides a longitudinal review of Apple’s financial performance. By looking at the financial performance of Apple over a long period, the case shows how a firm’s strategy, its business model and its competitive environment drive its financial performance. The case contains a history of Apple from its creation in 1976 and a detailed financial ratio analysis and cash flow analysis from 1984 to 2007. Over most of its life, Apple’s profitability, and in the nineties, its survival, depended on tight balance sheet management. Apple struggled throughout to achieve the revenues needed to leverage its cost base. This breakthrough eluded John Sculley in the early eighties, but is what the music products finally delivered after 2005. This case was prepared by Professor Chris Higson with assistance from Tom Albrighton. This case updates and extends the earlier cases, Apple (2000, 2006). The case study was prepared in 2008 from publicly available information as a basis for class discussion rather than to illustrate either the effective or ineffective handling of an administrative situation. Copyright © 2008 London Business School. All rights reserved. No part Of this case study may be reproduced, stored in a retrieval system, or London Business