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| The Brooklyn Voice Last update 07/19/2010 |
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The secret behind Apple's success
Apple is now the second largest company in the United States measured by market capitalization, but it is still able to grow its profits by more than 50 percent a year. Here's the secret to Apple's success.
Apple has in recent years has been higher than Microsoft, Google and Intel, but the company is growing at the same rate as a small technology company, Apple writes Andy zaky scholar in an article on CNNMoney.com
According to him, Apple is likely to increase its revenues by over 50 percent and its profit by 71 percent this year, compared to 2009.Apple continues to grow with the same pace in 2011, the company will go on the energy company Exxon, which today is the largest company in the United States.
Then you should also remember that Apple has a reserve of around 41 billion dollars, more than any other American company, says the author.A big reason behind the success is that Apple kept their costs, while revenues grew massively.
2008 increased its revenues by 52.5 percent while operating expenses increased by only 30 percent.
PICTURE: Apple CEO Steve Jobs. The secret of its success lies in the success in containing costs while increasing revenue, according toan Apple expert. Photo: AP Photo / Eric Risberg
During the financial crisis in 2009 revenues grew by 14.5 percent and operating costs by 12.6 percent.
It is this ability which is the main factor behind this year's expected earnings lifted, according to Andy zaky.And it's not just when it comes to operating costs as the company doing well, Apple has also managed to raise its gross margin in recent years.
For example, Apple reported a gross margin of 27.2 first quarter of 2006. Second quarter 2010 the figure had risen to 41.67 percent.
It makes Apple now earns nearly twice as much on each product it sells, compared to 2006.
For fiscal year 2010 the author believes that Apple reported revenues of 63.4 billion dollars and a profit of $ 15.51 per share.***
