Investment in technology is a tricky affair but the demand is ever high. Apple Inc (NASDAQ:AAPL) has been around for a long time continues to come up with new and innovative products. Competition has been fierce but the fact that the company has been around for quite some time enables it to enjoy a big chunk of the market share. Within the last years people have been in a maze wondering whether Apple is still a good investment due to the market ground it has lost. There are several key considerations one has to look at so as to make an informed decision.
The company was founded in 1976 but incorporated on January 3, 1977. At this time it was known as the Apple computer but they later dropped the computer part. What made it more popular is its humble and inspiring beginning. Apple was founded by Steven Wozniak, Steve Jobs, and Ronald Wayne inside their garage. Ronald Wayne later sold his shares in Apple only 3 months after the company began. Apple began by selling the hand made Apple 1 computer which was designed by Wozniak. Within the first five years the company had recorded remarkable growth and had an average growth rate of 700%. A look at Apple company profile shows that it has over the years tried to maintain its presence in the technological sector through innovative products and improving their earlier models.
Originally the company was dealing only with the design and manufacture of computers but later diversified into mobile gadgets due to the market demand and new technology. The company has three series of desktop computers in the market. These are the Mac, the Mac pro and Mac mini. Each is designed to suit a different type of user. The iPhone is a mobile phone product by Apple that has seen it grow and command a huge portion of the market. The phone runs on software developed by the company and has over the years commanded a top spot in the global cell phone market.
The mobile phone market has however been very competitive leading to decrease in its sales volume. The release of new models after some time allows it to incorporate new features that the market needs. Another product that the company produces is the iPad. It is a hand held multipurpose mobile devise that completely changed computer convenience. Other products include the iPod which is an entertainment gadget it comes with music download software iTunes that dominates well over 85% of the mp3 market.
Investing in technology companies is mainly done to the companies that offer the most innovative products. Apple constantly releases not just new hardware but continuously upgrades its software to meet the market demands. This has seen its shares continue to do well. Competition from other developers has affected its stocks negatively due to the market sharing that comes with the competition. The company has then resulted to outsourcing its manufacture to cut down costs. The company’s stocks have been rising for the past years but have over the last few months failed to maintain stable prices. When investing in the company, it is important to keep in mind the dynamics of the market.
Every technological company needs to be innovative so as to keep up with the competition. The last ten years has seen the fall of giants to new companies. Apple has managed to stay ahead by innovating new products. The road however has not been smooth since it has been at close competition with Samsung among other big companies. Apple however still manages to attract customers from most regions through innovative marketing strategies and product launch. The fact that the field is under constant change allows it to hold back competition by coming up with new products.
Apple has over the last years tried to market its products in new regions so as to take advantage of the growing market. The fact that Apple has registered a reduction in its main product sales does not mean it cannot bounce back. Apple has an edge since it incorporates both software and hardware designs its detailed product launch. Its attention to detail woos a lot of tech lovers and also new Apple users.