As we all know, companies are in business to make money. A company may have the best product on the market or in every household but the question still remains. Are they making money? In this section, we will be taking a detail look at the financials of Apple since the lunch of the first Iphone in 2007.
On June 29, 2007 (the first day of the Iphone) apple was trading at $ 121 dollars a share. At year end September 29st 2007, just three months after the first Iphone release, Apple was trading at $ 154 dollars. That’s a 27 % increase in share price. As impressive as that sounds, there are other ratios that are used by managers and investors to analyze and forecast the profitability and efficiency of a company. Let us take a look at some of these ratios and how they apply to Apple.
Net sales during 2009 increased $5.4 billion or 14% compared to 2008. Several factors contributed positively to these increases, including the following:
• Iphone revenue and net sales of related products and services amounted to $13.0 billion in 2009, an increase of $6.3 billion or 93% compared to 2008.
Fiscal Year 2010 versus 2009
Net sales during 2010 increased $22.3 billion or 52% compared to 2009. Several factors contributed positively to these increases, including the following:
• Net sales of Iphone and related products and services were $25.2 billion in 2010 representing an increase of $12.1 billion or 93% compared to 2009.