Apple Computers Inc
Apple was founded by and in 1976; Apple Computer Company revolutionized the personal computer industry and epitomized the rise of clean industry in the New West. Located in the Santa Clara Valley, in California, the company's first product was the Apple I, a single-board computer with on-board read-only memory (ROM), which sold for about $650 without a monitor or keyboard. Orders instantly soared, and and quickly brought out the Apple II, which included a keyboard, color monitor, and expansions for peripheral devices ( & 2003). In 1984, Apple introduced the Macintosh, which was aimed at the business and education markets, by which time the company had already not only changed American industry but had reshaped entire areas of the West around silicon. In 1996, after a series of CEOs failed to keep Apple profitable, returned under the rubric interim CEO and soon launched a new marketing and licensing relationship with Microsoft. In 2000 his direct sales concept, the Apple Store brought the company back to profitability ( & 2003).
In 1994 Apple computers launched a new line of computers based on the PowerPC processor chip. The creation of the new chip was a joint venture between Apple Computers, IBM, and Motorola, and because the new chip was capable of being compatible with the market leading Intel chip, it was marketed as a major breakthrough in computer technology. If emulation software was purchased by a consumer, the consumer could run both software made for Apple computers and software made for Intel PCs on the same Apple machine. The machine was even being called a PC with a free Mac inside. Apple computers had controlled about 8-10 percent of the personal computer market since 1984, and recently it had been struggling financially ( 2003).
Those at Apple hoped that compatibility with the Intel-based PC and its 85 per cent market share would dramatically increase the market share of Apple computers. The results from the introduction of the new product were not everything Apple had predicted or had hoped for. The increased competition from the PowerPC chip forced Intel to slash the price of their Pentium chips by 40 per cent. Thus Apple did not live up to its promise of cheaper computers ( 2003). Early in 1996 the Apple computer company ran into deep trouble. It managed to lose seven hundred million dollars in a single quarter, which is more than most businesses earn their whole lives. The company's very survival was in danger, and economists, businessmen, and technology pundits were at a loss. Apple computers were beautiful in the classic technology sense, simple and powerful. They were attractive in an important area particularly the machine's operating system (1997). Apple Computers Inc is considered to be one of the innovators in the computer industry. It brought about different changes to the industry; these changes are still visible in the present. The company’s products were used as a basis by other computer company’s in designing the specifications and physical characteristics of their product. It also serves as a meter of how products are designed.
6 Risks
Business Risk
The major business risk faced by Apple computers is its fluctuating standing in the market. There are some times that the company is doing well in its industry but there are also certain times when the company is having difficulties in coping up with its competitors. The company is at risk in deciding what methods to use so that they can compete well with one competitor without having problems with another.
Financial Risk
If the firm will borrow some money from other institutions then it has to repay fixed financing charges to its creditors before paying the shareholders their own shares. This increases the risk of the shareholders’ investment
Liquidity risk
The company has a risk of failing to gain proper investment in a secondary market. The financial standing of Apple computers can affect the decisions of investors from secondary markets.
Exchange rate risk
The exchange rate in another country can give Apple computer either benefits or losses since the exchange rate in one countries varies in different countries. The converted rate acquired by the company may not be enough for the value of the product the company has sold in another territory thus the company doesn’t acquire its appropriate income.
Country Risk
The country the company is engaging in may have internal problems and this might cause them some of their profits. Different countries have different political problems thus businesses are uncertain of how the conflicts can affect their operations.
Credit Risk
In this risk there is uncertainty on whether the issuer of a certain fixed income security will be able to provide the company with the contractual cash flows. The issuer of a certain fixed income security might ask for more time to provide the company with the cash flows but the company might have no more time for wait for it to arrive.
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