Tesla Motors: The Next Big Thing of the Automotive Industry
January 28, 2018
From Coin to Bitcoin: The socio-economic history of money (Part-1)
January 30, 2018
Apple is one of the pioneering companies racing towards the milestone of USD 1 trillion market cap. This article was written around two years ago but still quite relevant if we want to take a look back to the brilliant journey of this tech giant.
Apple has broken its own records of both revenue and net profit growth for four consecutive quarters of 2015, the fiscal year that ended with numerous testimonies of Apple’s smooth and sustained operations as the largest information technology company of the world. With more than $700 billion of net worth, the tech giant is surpassing its own achievements with every passing moment. Let’s have a quick look to Apple’s financials: Apple achieved 30%, 27%, 33% and 22% revenue growth in four successive quarters of 2015 (comparing with the four quarters of 2014). During that time period, the net profit also increased – ensuring a satisfactory return for the shareholders in the due process. Notably, more than 60% of the revenue for all four quarters streamed in from the international markets.
The overwhelming brand loyalty has remained as a great asset for Apple. According to Forbes, Apple holds the number 1 position among the world’s most valuable brands. This brand value, coupled with the incredible loyalty of Apple fans, have paved the way to the increased level of pricing for Apple products – primarily iPhone.
Brand Loyalty and Investor Confidence
The overwhelming brand loyalty has remained as a great asset for Apple. According to Forbes, Apple holds the number 1 position among the world’s most valuable brands. This brand value, coupled with the incredible loyalty of Apple fans, have paved the way to the increased level of pricing for Apple products – primarily iPhones. When the smartphone industry is overflowing with low-priced Android handsets, Apple’s extensively higher pricing has functioned as a differentiating factor and attracted a huge market base stretching from the neo-middle class to the affluent tech enthusiasts. This comparatively better market performance of the company is translated to the fairly stable position of share price. For instance, as of November 20, 2015, the closing price of Apple’s share in NASDAQ was $119.30 which was $0.52 / 0.44% higher than the previous day. And the year (up to November) showed an overall 9.12% increase in the share price. However, in case of five consecutive years (2011-2015), the year 2014 showed the highest 41.47% average increase in share price. Once again, these numbers illustrate the strong market position of the company.
Key Strengths of Apple:
- Innovation.
- Premium Product.
- Brand Loyalty.
- Investor Confidence.
Apple’s sustained growth is primarily achieved through the substantial sales increase of iPhone, Apple Watch, Mac, and App Store. When iPhone is considered as one of the biggest reasons behind the existing mighty market presence of the company, Apple Watch has become another big hit. Apple’s increasing presence in Asian markets, especially in China, is another key catalyst for the continuous growth. The rest of the Apple products are also doing good which essentially provides the company with enough scope for planning brand new innovations. For instance, the company is planning to build a self-driven electric car.