Thursday, 5 March 2015

Weekly NDM

Apple: what do you do after becoming the world’s most profitable company?



This article is about how Apple had become the most profitable company 20 years after almost becoming bankrupt. It discusses how the institution has eclipsed all sales targets.


  • “Stunning”, “outstanding”, “a monster” were some of the analysts’ reactions to numbers showing the Silicon Valley firm had made $18bn (£12bn) in just three months – by selling 34,000 iPhones an hour around the clock from October to December. It now has $178bn cash in the bank.
  • Apple was 90 days away from bankruptcy when Steve Jobs rejoined it in 1997– as he later revealed – but Apple now tends to downplay its financial success ahead of quarterly profit announcements in order to surprise investors and analysts.
  • This quarter’s profits were on another scale, though. Sales in the three months to the end of December were up 30% to $74.6bn. Those profits of $18bn were up 37%.
  • Katy Huberty, an analyst at Morgan Stanley, said it was a “quarter for the record books” and increased her share price target from $126 to $133, indicating she believes there is more growth to come. The shares, which jumped 5% in after-hours trading following Apple’s results, closed at $117 on Friday.

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