Monday, September 20, 2010

A Brief Insight on Apple's Success Part 1


The first time I was introduced to Apple products, I was probably in the first or second grade and was quite nervous upon leaving the comfortable domain of my classroom to enter the mysterious computer lab.

I remember curiously studying the new Macintosh computers and spotting the simple apple logo and thinking to myself, "Man this is a stupid looking logo," and then proceeded on to play Where in the World is Carmen San Diego.

Little did I know that Apple would soon begin its unprecedented rise throughout the decade and establish itself as one of the most powerful and innovative companies anywhere in the world.


This is an old picture and as of today, Apple has risen almost 8$ per share to a whopping 283.23$ per share. Imagine, just between 2001 to late 2004, Apple shares never really rose past 10-15$ per share, and now it has exploded to become one of the most sought and traded stocks in the market.

The question i'm sure you are asking yourself now is: How can I spot the next Apple or Microsoft and buy when they are still cheap. Unfortunately there are no perfect answers to this question, but there are many indicators that can help you predict with a degree of accuracy whether or not a company has a chance of achieving success int he future.

Being able to read a financial statement is critical to assessing a companies future potential and how well they may continue to do in the future. It is important to learn a few reasonably simple calculations such as ROI, (rate on investment) Debt to equity ratios, and a few more. Heres a link if you want to learn a bit more

http://www.thecorys.com/babs/key_financial_ratios.htm



Also, a company cannot succeed (in most circumstances) without a clear and powerful leader who invokes a high level of charisma, passion, and dedication towards his company. Steve Jobs exemplifies many of the qualities of a truly successful and motivated CEO and has brought Apple back from the dead into a larger than life company. Although there are many criticisms about some of Apples products and policies, it cannot be denied that his ambition has stirred the interest of the world and helped create the empire that Apple has become today.


Personally, I believe that one of the reasons for Apple's huge success in the recent years is based on its simplicity. With the influx in modern technologies and a rapidly developing urban society, it is becoming harder and harder to reach out to everyday potential customers, and Apple has exceeded everyone's expectations by invoking mass media internationalization.

For example, the I-Pad, I-Phone, basic premise of marketing lies in one letter, "I." Although it has transformed and evolved into different shapes and forms in its products, Apple's simplicity and ease of use has caught society by storm and has left nearly no one dry after its wake. This genius marketing concept was coupled with simple advertisements which nearly everyone could relate to.


Finally, there is no such thing as bad publicity, or so they say, and in Apple's case, I would have to agree whole heartedly. For example, nearly every cartoon television show and comedian in the world have made Apple jokes or incorporated them into their shows or skits. From the Simpsons, Futurama, South Park, and many more, whole episodes have been dedicated on a storyline based on Apple (or similar sounding) products. This is the key to achieving "Apple level" success, provoking the media and thus getting free advertising to every part of the world.



Well I think thats enough for today, I will likely add more to this post or create another one in the near future, hope you enjoyed! Happy blogging

49 comments:

  1. Very insightful post, Hope to see more in the future :)

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  2. Wow, that was really indepth.

    I dislike apple's current gameplan where they lock down their devices, but hey, they must be doing something right if their stocks are worth that much.

    God damn I should have invested sooner ;P

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  3. Meh, the next "Apple" probably won't exist. I personally predict a Google takeover of all other enterprises.

    Haha, but seriously, I envy anyone who took a chance and invested in either Microsoft, Apple, or Google when they first hit the ground.

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  4. That was really well analyzed! And certainly, i feel smarter already!

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  5. Wow that was really indepth...I like it though, maybe it will help me with my market watching one day...

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  6. I'm looking forward to your next review.

    That was rather interesting.

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  7. I wish I would have invested years ago. Hindsight is 20/20 though.

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  8. I rather liked this review of apple. Looking forward to more!

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  9. i refuse to believe apple has succeeded any where but selling over priced goods.

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  10. I am a Windows/Linux person but I believe there exists a place in this world for Mac users.

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  11. @Kieve

    Perhaps so, but value is in the eye of the beholder. I use some apple products, some of them I belive to be overpriced.

    @AI

    Linux is superior.. But most people don't bother because there is a steeper learning curve. I myself would love to use linux, but simply have not had the time (although that mayjust be a lame excuse..) and using windows/mac is an easy way out.


    Glad to see people enjoying this, will probably do more analysis for a lot of different companies in the near future, and try broadening my horizons a bit.

    Thanks!

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  12. All I can say is that I fucking love my ipod

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  13. Hey, I enjoyed giving your post a read. I admire your style. I look forward to hearing back from you. Things have been kinda slow on my end. Thanks

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  14. As much as I hate Apple as a company... you can't ignore the $$'s. Still wouldn't use their products if they were free. :D

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  15. An interesting read :) If you're looking to invest, just stick with Apple in my opionion.

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  16. Man seriously, AAPL is like gold.

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  17. A lot of great info. Also, Google will take over the world one day.

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  18. You make a good point about the fact that there is no bad advertising.

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  19. at this point it seems like the price is to high to invest. Do they pay good dividends?

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  20. Interesting info. I had no idea regarding any of this. Keep it up!

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  21. very interesting posts here,be sure ill check back again soon !

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  22. Hm, my financial understanding is not what I would like it to be, but I understand (at least the bulk of) your posts. Ever think of doing a series on what exactly an investment bank, a hedge fund, what leverage is...stuff like that? Dummies like me would appreciate it.

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  23. love the setup very interesting stuff here.

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  24. @ Hidden blogger

    Of course, this is just the tip of the iceberg

    I'm not claiming to be a guru or anything, i'm still a college student trying to make it in this world but I have been following world markets, currencies, etc. for several years.

    Honestly I believe anyone can become proficient with their personal finances as long as they put some serious effort into it.

    I mean, who wants to be 60 and still not have a dime saved for retirement? I'm trying to put myself into that mindset of a 60 year old, thinking of ways to make my money work harder for me.

    The most important rule (quoting Warren Buffet) is to NEVER LOSE MONEY. That may sound simple, but if I gave you 1000$ today, what would most people do? Spend it all away within a few days.

    A more prudent individual would at least allocate some of that money towards investments that could benefit them greatly in the future.



    THanks for the comments everyone, keep updated, I will continue to post stuff that the average person/investor will find highly interesting!

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  25. That was really good analyzed. Made a lot clear to me!

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  26. Damn, turn back time, invest, buy playboy mansion, ...., profit

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  27. apple is overrated and expensive for one thing.

    I'm interested on acquiring and investing on some stocks can you reply back

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  28. Interesting man. I would quite like to find the next "apple" so to speak also.

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  29. I dislike apple as a brand but there devices work good. It's just the marketing. Their commercials just piss me the hell off.

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  30. Reading if for the second time, and I'll surely check it back again soon !!Keep it up

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  31. A blog to help with money issues in these hard economic times. Awesome. Following and supporting.

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  32. Shallow hipsters, that's the key to apple's success

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  33. Following this. I've recently obtained a business mindset.

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