Business
project work
FATHIMATH SHAUN
241
8A
HIRA SCHOOL
Content page
1. Title page
2. Content page
3. Introduction of Apple
4. Factors of production use by Apple
5. Information on the owner of Apple
6. Ways in which capital was raised for Apple
7. Demand and supply curve of Apple phones
8. Conclusion
9. Reference
Introduction of the company
Apple is an American corporation that develops and sells computer
electronics, software, personal computers and portable devices
internationally. Founders Steve Jobs, Steve Wozniak and Ronald Wayne
established Apple in 1976, with its incorporation in 1977. Apple has a
history that spans over 30 years, and during that time the company has
experienced its ups and downs in financial performance. It was after
2007 when Apple finally achieved widespread success with the launch
of the iPhone, the iPod touch and the iPad. It is traded on the NASDAQ
under the ticker AAPL. It is also a part of the NASDAQ-100 and S&P
500.
Factors of production used in the company
Capital: Like many technology-based businesses in the first world,
Apple eschews full vertical integration in favor of outsourcing physical
production to cut costs. This dichotomy plays out in the packaging for
the iPod Touch and other Apple products, which often bear the slogan
"Designed in California" alongside the government-mandated, countryof-origin statement "Made in China." Capital factors of production
includes machinery & warehouses technology (E.g. - Components of an
iPod: Harddrive, LCD, RAM, Circuit board with microprocessor, battery
pack, audio chip, and video chip)
Labor: The labor pool that contributed to the realization of the Apple
includes internal, stateside employees who worked on its design,
prototyping and eventual marketing and sales efforts and external
laborers working in foreign factories in Asia. By using external labor for
manufacturing, Apple reduces its production costs for Apple computers
and other products. Factors of the labor force of Apple include many
people in charge of different jobs such as: Mac Hardware Engineering,
Applications, Marketing, Operations, Human Resources, Facilities,
Finance, Software Engineering, iPhone Engineering, iPod Engineering,
Sales, Information, Systems and & Technology, AppleCare, Retail
Corporate: Land or Natural Resources
The land factor of production for Apple computers includes any issues
affecting the natural resources available to Apple's suppliers in Asia,
including the cost and availability of raw materials such as glass for the
multi-touch screen, plastic for the casing and silicon for the chipset.
Factors of land production include: Plastic, Glass, Arsenic, High-grade
Aluminum, Strong Polycarbonate (1% of Apple's Greenhouse Emissions
comes from recycling)
Entrepreneurship: With Steve Jobs at its helm, Apple made a name for
itself as a leader in the entrepreneurship category on an international
scale. Apple emphasized innovation in its product line and in its efforts
to mythologize its own brand. Entrepreneurship of Apple is Steve Jobs
himself.
Goods and services produced by the company
Apple Inc. designs, manufactures and markets smartphones, personal
computers, tablets, wearables and accessories, and sells a variety of
related services. The Company's product categories include iPhone,
Mac, iPad, and Wearables, Home and Accessories. Its software
platforms include iOS, iPadOS, macOS, watchOS and tvOS. Its services
include advertising, AppleCare, cloud services, digital content and
payment services. It operates various platforms, including the App Store,
that allow customers to discover and download applications and digital
content, such as books, music, video, games and podcasts. It also offers
digital content through subscription-based services, including Apple
Arcade, Apple Fitness+, Apple Music, Apple News+ and Apple TV+.
The Company's products include iPhone 15 Pro, iPhone 15, iPhone 14,
iPhone 13, MacBook Air, MacBook Pro, iMac, Mac mini, Mac Studio,
Mac Pro, iPad Pro, iPad Air, iPad, iPad mini, Apple Watch Series 9,
AirPods, AirPods Pro, AirPods Max and HomePod.
Information on the owner of the company
Steven Paul "Steve" Jobs (February 24, 1955 – October 5, 2011) was
an American businessman, investor and co-founder and CEO of Apple
Inc. He was the Chief Executive Officer (CEO) of Pixar Animation
Studios until it was bought by The Walt Disney Company. He was the
largest shareholder at Disney and a member of Disney's Board of
Directors. He was seen as a leading figure in both
the computer and entertainment industries. In August 2011, Jobs
resigned, and was appointed Chairman of Apple. He served in that
position until he died, at the age of 56, on October 5, 2011 from
complications of pancreatitis related to type 1 diabetes and metastatic
insulinoma. Steve Jobs had type 1 diabetes as a child and had problems
with insulin when he died. an American inventor, designer, and
entrepreneur who was the cofounder, chief executive, and chairman of
Apple Inc. Born in 1955 to two University of Wisconsin graduate
students who gave him up for adoption, Jobs was smart but directionless,
dropping out of college and experimenting with different pursuits before
cofounding Apple with Steve Wozniak in 1976. Jobs left the company in
1985, launching Pixar Animation Studios, then returned to Apple more
than a decade later. The tech giant’s revolutionary products, which
include the iPhone, iPad, and iPod, have dictated the evolution of
modern technology.
Ways in which the capital was raised to start this company
Equity Capitalization: Capital structure is simply a measure of how
much equity and debt a company utilizes to finance its operations.
Equity represents ownership in a company and is calculated by finding
the sum of the common stock and retained earnings, less the amount of
treasury shares. Apple’s total stockholder’s equity equaled $71.93
billion as of December 2021. This consisted of $57.36 billion of
common stock at par value and additional paid-in capital, and $5.56
billion in retained earnings. Apple had roughly 16 billion shares
outstanding. Apple has been extremely successful with its capital
structure by leveraging debt and increasing equity.
Debt Capitalization: The second component of a company’s capital
structure is debt, representing how much the company owes to creditors.
Debt is first classified by time period. Current liabilities encompass debt
that matures within a year and is important for investors to consider
when determining a company’s ability to stay solvent. Apple’s liabilities
as of year-end 2021 were $309.25 billion, consisting of $54.76 billion in
accounts payable to come to a total current liability amount of $125.48
billion. Long-term debt and other non-current liabilities amounted to
$287.91 billion.3
Leverage: Due to the zero interest rate policy (ZIRP) environment,
Apple began issuing its first bonds and notes in 2013, underwriting a
total of $64.46 billion worth of debt. Apple made this move not because
it needed the capital but because it was essentially receiving free
money. With many of Apple’s bonds having nominal interest rates of
less than 3%, the real returns on these instruments barely beat inflation.
However, the accumulation of debt by Apple has changed its capital
structure considerably. Apple’s current and quick ratios have risen by
33% and 59%, respectively, over the last five years. Its long-term debt
has risen from $73.55 billion at the end of 2016 to $106.62 through the
end of 2021.3
Debt vs. Equity: Additionally, the company’s debt-to-equity ratio has
grown. This measurement is best used for determining the amount of
ownership in a corporation versus the amount of money owed to
creditors. It is calculated by dividing a company’s total liabilities by its
shareholders’ equity. At the end of 2016, Apple had a debt-to-equity
ratio of 56%. Over the course of five years, that ratio jumped to 148%,
illustrating how quickly capital structure can change.
Enterprise Value: Enterprise value (EV) is a popular way of measuring a
company’s worth and is often used by investment bankers to determine
the cost of purchasing a business. EV is calculated by finding the sum of
the company’s market cap and its total debt and subtracting that figure
by total cash and cash equivalents. Apple’s EV went from $928 billion
at the end of 2017 to just under $3 trillion by the end of 2021. This
comes as the company’s market cap and cash have risen steadily. With
that, Apple’s net debt had risen from nearly $3.45 billion at the end of
2020 to $11.64 billion to close out 2021. Investors can’t forget that
Apple is the most cash-rich corporation in America. With over $62
billion in cash at the end of 2021. Apple reported in its 2021 10-K
statement that it possessed $172.6 billion spread between cash, cash
equivalents, and unrestricted marketable securities.3 Apple’s highly
leveraged capital structure should still not pose a threat to the company’s
solvency for the foreseeable future.
Tying It All Together: Apple is an enormous company that
simultaneously manages to carry a large cash balance while increasing
long-term debts. The company took advantage of the low-interest-rate
environment and locked in significant income from issuing bonds.
Apple's free cash flow has substantially increased over the past few
years and, when compared against the debt and liabilities Apple carries,
continues to make it an attractive investment for both main and wall
street investors.
Demand and supply curve for apple phones
This diagram shows the demand curve of the apple phones. It is elastic in
the beginning because the sellers are few hence in case of a change in price
the demand is greatly affected. Thus, if the prices of smartphones are
reduced, it is expected that their demand will tremendously shoot up,
causing entry of more producers of the smartphones. After some time, more
sellers make entry into the market, and the prices become inelastic such that
price changes seldom affect the demand. In the end, the prices become
sticky since the sellers will not be able to change the prices, and if they do,
the demand goes down tremendously.
This diagram shows the supply curve of apple products. It shows the
supply curve shifting from point S to S1 rightwards, thus creating a new
point of equilibrium with both new points of quantity demanded and price.
Conclusion:
This project has introduction of apple, factors of production used by apple,
goods and services produced by the company, about Steve jobs, how the
capital was raised for apple, the demand and supply curve of apple phones
and a conclusion.
References:
 CVA, Kinkpe.
“https://www.medwinpublishers.com/JOBD/JOBD16000139.pdf.” Journal
of Orthopedics & Bone Disorders, vol. 1, no. 7, Medwin Publishers, 2017.
Crossref, https://doi.org/10.23880/jobd-16000139
 “Factors of Production.” Behind AppleTM - Edward’s Blog,
edwardtangapple.weebly.com/factors-of-production.html.
 “AAPL.O - | Stock Price and Latest News | Reuters.” Apple Inc,
www.reuters.com/markets/companies/AAPL.O/#:~:text=Company%20Infor
mation&text=The%20Company’s%20product%20categories%20include,dig
ital%20content%20and%20payment%20services.
 “Steve Jobs.” Simple English Wikipedia, the Free Encyclopedia, 19 Oct.
2023, simple.wikipedia.org/wiki/Steve_Jobs.
 Piccotti, Tyler. “Steve Jobs.” Biography, 12 Sept. 2023,
www.biography.com/business-leaders/steve-jobs.
 Carmichael, Chase. “Understanding Apple'S Capital Structure.”
Investopedia, 31 Dec. 2022,
www.investopedia.com/articles/investing/081716/understanding-applescapital-structure-aapl.asp.
 “Factors Affecting iPhone Supply and Demand Curve | Free Essay
Example.” StudyCorgi, 22 Feb. 2023, studycorgi.com/iphone-marketssupply-and-demand.