The Foundation of Apple Inc. Financial Power House.
McCann School of Business and Technology
In this paper I will explain how Apple incorporated start and who were their initial investors. Also the company’s history from both founders Steve Wozniak and Steve Jobs. The time when Apple went public and how much did it cost to how much is worth at present time. How the name was created and why was it chosen, what was Homebrew and why was important to go to these seminars. . Also discuss the release of various products of Apple and the financial situation during the release. Finally, the future investments of Apple’s and where will they go in the future.
The two founding people who began Apple were Steve Wozniak and Steve Jobs. Both had a passion for computers. Their first initial investment was 1975 they were building their first boards for their computers and it cost them 1000 dollars( Moisescot,R. All about Steve. Retrieve http://allaboutstevejobs.com/bio/longbio/longbio_02.php). On January 3, 1977: Apple Computer, Inc. is officially created after the company is incorporated. Mike Markkula invests $92,000 in Apple, with intent to invest $250,000( Mesa, A. 1998. Apple History Timeline. Retrieve http://applemuseum.bott.org/sections/history.html). They both saw a growing market of electronics during the late 1960’s, thus they choose to create Apple. Apple initial public offering happen on December 12, 1980 at 22 dollars a share and all 4.6 million shares sold in minutes. To the current market the Apple stock is one of the most profitable and highest available at a 700.09 dollars and a volume of 20,393,600. Since the creation of Apple there have been many defining goals for their company, but one major is to create advanced technology and make it simplistic, so the consumer has the ability to handle it. The name Apple was created by Steve Jobs, because the time he visited an Apple orchard and both Steve Wozniak Jobs felt like it sounded "fun, spirited and not intimidating."(Rivkin,S. November 17, 2012.http://www.brandingstrategyinsider.com/2011/11/how-did-apple-computer-get-its-brand-name.html). Homebrew was a computer club where engineers and computer enthusiast would go and build circuit boards. Steve Wozniak was the person who first started to go to the meeting and felt very impressed by what he saw at the meetings. After the first computer was build they show it to Homebrew they were not too impressed with it, so they sold it on their own. In 2001 the release of the first generation I Pod Apple has transformed the way of living in the world. Since then the stock price has rising by an 8000% and has now made it one of the most profitable investing company in the world. Since the creation of Apple there have been three 2-for-1 stock splits June 15, 1987, June 21 2000, and February 28, 2005(Apple. Investor Relations. Retrieve from http://investor.apple.com/faq.cfm?FaqSetID=2). Apple also has one of the lowest percentages in research and development compere to other companies. They only invest 2.8% of their sales compare to Microsoft which is much higher at a 13.8%. The reason is the company’s ability to only focus on a few things at a time mean Apple can spend less and get much more for its investment (Ogg, E. How Apple gets Away with lower R&D spending. Retrieved from: GiGaom. http://gigaom.com/apple/how-apple-gets-away-with-lower-rd-spending/). Instead of having their employees researching multiple gadgets at one