Apple has faced a myriad challenges in the past two years. The challenges have impacted the company both positively and negatively. For instance, Apple has seen a growth of its revenue from $ 191 billion in 2014, to $ 232 Billion in 2015 (Morningstar, 2016). Negatively, Apple did not escape the effects of the economic global crunch either, what with Apple increasing the price of the iPad which led them to losing some of its customers and the reduced purchasing power of most Apple customers. Apple has been delivering for its investors for a very long time, however too many investors have not been keen on its performance in the market; the fluctuations, and most recently its depreciation. Financial analysts have reported an 8.89% depreciation over the last one year, and that is exclusive of the 3% decline Apple is seeing pre-market (Moskowitz, 2016). The current situation is that Apple earning can finally prove that the company has turned to the corner from a growth to a value stock. Apple is an extraordinary company with a superior product line and good leadership. The current CEO Tim Cook has applied his strength as an effective operator and has steered the company into new areas such as enterprise. He has also updated the stable of products to include Apple watch, Apple music, and a variety of software products (Business Insider, 2015). The introduction of new products has seen Apple increase its revenue channels and market share by appealing to new markets. An example is the introduction of new iPad aimed at business customers, this earned Apple a competitive advantage against Microsoft’s surface Pro which has slowly been gaining traction with businesses and is showing signs of growth despite a bumpy start (Business Insider, 2015).
Apple for a long time has maintained its position as an industry leader. It generates massive cash flow, maintains a healthy balance