Apple Performance in 2014 Compared to 2013 (Essay Sample)

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Apple performance in 2014 compared to 2013
Apple is one of the leading electronics companies in the world and has had a sustainable rate of sales and revenue for the last two decades. However, the company experienced a significant downturn in sales in 2013. Its share price fell by 8% due to low iPhone sales and weak revenue forecast. The poor performance raised concerns among investors about Apple’s ability to grow revenue in emerging markets (Crum 2). This is beside the fact that the smartphone market was reaching its saturation point in the United States.
Furthermore, the situation was worsened by China Mobile’s decision to start offering iPhones. In addition to the iPhone, the firm’s Seagate Technology experienced an 11 % decline in share price. Nevertheless, Lexmark International, Apple’s printing technology company, was a notable gainer in 2013 (Crum 4). Although Apple’s shareholders were concerned about iPhone’s failure in emerging markets, a section called upon the firm to return more cash to them through stock buybacks or larger dividend payment.
In 2014, Apple became the first public company to post the biggest quarterly profit of $18 billion in revenue (Apple 2). After a disappointing performance in 2013, Apple’s iPhone sales were higher than most analysts’ expectations. The demand for Apple’s iPhone 6 plus larger screen helped to boost profits as well as increased Apple’s profit per product from 2% to 39.9%. In the U.S. market, Apple’s share price increased by more than 5% after the market had closed.
Its impressive performance in 2014 was attributed to a significant shift towards the untapped potential of the Middle East and China (Apple 5). By producing a strong line-up of devices designed for the emerging ...