Apple posts better-than-expected quarterly results

Summary:
On Tuesday Jan 18th, Apple Inc. reported sales and profits that exceeded their analyst’s expectations. Apple’s previous quarter ended up with revenue of $26.74 billion U.S. (increase of 71% from the same period a year earlier) and net income of $6 billion (increase of 78%). During this quarter, Apple sold 16.24 million units of iPhones (jump of 86% year-on-year) and 4.13 million units of Macs (jump of 23%). Once again exceeding analyst’s expectations, Apple also sold 7.33 million iPad tablets. On the other hand, the sales of iPod media players dropped to 19.45 million units (7% decline). Overall all the positive results helped to partially offset the news of Apple’s chief executive officer taking another medical leave of absence.

Connections:
As mentioned in the textbook, it is important for all users to have a good understanding of how well a company is doing in order to make vital decisions. This article is a reflection of Apple’s success during their last quarter which provides the company users (internal users) with many opportunities to expand. Not only does Apple have much more net income to spend on improvements during the next quarter, but they have also developed a good credit rating on their financial statements. External users such as investors and bank for loans would take a look at Apple’s financial statements to decide whether to invest in Apple or lend Apple money. Due to both external and internal users basing their major decisions on a business’s financial statements, it is safe to assume that this article is related to user relevance.

Reflection:
Apple’s outstanding performance last quarter has given them many opportunities in the future. I believe that this increase in net income will allow Apple to furthermore expand and increase sales throughout the next quarter. Even after exceeding sales of the iPhone 4 during Apple’s last quarter, there is still an incredible amount of demand for this particular item. Not to mention that there are many customers who are eager to buy the white iPhone 4 which is rumored to be released on February 27th. I also believe that releasing the white iPhone 4 a quarter later is a very tactical and smart move played by Apple that allows them to keep the demand high. Whether this is sneaky or smart, it seems unlikely that Apple is only going to fall anytime soon.

http://news.xinhuanet.com/english2010/business/2011-01/19/c_13696750.htm
http://www.gforgames.com/gadgets/news-gadgets/leak-white-iphone-4-release-date-february-27th-3530/