Apple Inc. Case Analysis

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Apple Inc. is one of those companies that continues to introduce new innovations into the market every year. They are a leading multinational technology company specializing in the development, design, and sell of software, online services and applications, and personal computing devices. As with any business risk or uncertainty is always a concern (Byrd, Hickman, & McPherson, 2013). Apple’s success is often contributed to their past leadership, with Steve Jobs at the helm. However, following his death in 2011, there was a lot of speculation on whether or not the company would continue to be a leader in the market without Steve Jobs (Tetzeli, 2015). This is just one of the uncertainties that Apple has faced in the past few years. Through …show more content…

The unique logo featuring an Apple with one bite missing has also become an iconic symbol and one of the most analyzed corporate logos in history (Klara, 2015). The logo’s origins are often described in myth as be related to secrets, magic, and other urban legends. The truth is much simpler. According to Klara (2015), Apple's original logo was a woodcut of Sir Isaac Newton, in recognition of the company’s innovations. Job’s decided that the logo was too complex to ever become memorable. Therefore, he commissioned the California designer Rob Janoff to simplify the logo, but keeping the same spirit of Newton (Klara, 2015). According to Klara (2015), Janoff offered two apple designs, one with a bite missing and one without a bite missing. Concerned that the one with no bite might be confused as being a cherry, Jobs decided on the current logo with the bite missing (Klara, 2015). Simplicity has work well for Apple. According to John (2014), simplicity is one of the biggest appeals of iPhones, for the younger generation, as nearly no one reads the instruction …show more content…

The company’s biggest interest rate risk is the fluctuation of U.S. interest rates. Apple’s management is very aware of both of these risks. Apple’s management team consistently monitors the interest and exchange rates, in an attempt to minimize exposure to these financial risk conditions.
To mitigate risks related to interest rates, Apple invest only in high rated securities with the requirement that they be investment grade (Maestri, 2014). Additionally, Apple usually manages debt maturities to be less than nine months, because interest rates also affect interest paid on debt, (Maestri, 2014). To mitigate foreign currency risk, Apple uses a value-at-risk (VAR) model to analysis their foreign currency exchange risk. According to Maestri, (2014), “The Company’s practice is to hedge a portion of its material foreign exchange exposures, typically for up to 12 months” (p.

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