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Apple Inc Consumer Electronics and Software Essay

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Apple Inc, Holographic Project
Name
Affiliate Institution
Professor
Apple Inc is a business that deals with consumer electronics and software, and it has
come to be the most successful firm in the world. Apple has become well known for its
continued innovation and developing products that are changing the world and generating new
markets and product lines in technology. One of its well-known products has been the center of
its success if the iPhone with Apple sells more than a billion devices leading to the company
making over a trillion dollars. The company expects to release a 3D Holographic feature that
offers Apple with another source of revenue leading to customer satisfaction and making them
over-really on iPhone devices.
Financial Analysis
In a move toward advancing the Holographic feature for Apple, the company purchased
Akonia Holographic, a manufacturer of AR lenses and that which promised "thin, transparent
smart glass lenses for displaying vibrant, full-color, wide field-of-view images." Apple Inc
continues to better iPhone gadgets with iPhone 11 created to support the Holographic feature.
The company has continued to lay strategi priorities to boost future growth, touching the iPhone
segment and creating other segments, including 3D projectors. As a result, the organization
located more than $11 billion in Research and Development in 2017 to create new and improved
products with low revenue generation. The company has been able to acquire a patent for
producing micro-LED displays regarding Holographic Imagery. The $11 billion budget Apple
has allocated to its projects, $20 million are meant to develop project concept. As a result, the
company already has a budget covering R & D costs to make the Holographic features. For
example, if the department budget for the holographic feature is $20 million, making 600,000
units will cost the company around $33 per unit.
On the other hand, if the company aims to make 600,000 holographic featured
gadgets, then the average cost of assembling and manufacturing these gadgets is $200. The fixed
costs include displays, memory, processors, user interface, and sensors (James, 2016). For
example, a lot of the costs when manufacturing a headset/holographic featured arises from the
displays used in the VR headset. Presently, Apple Inc applies its homemade processors when
manufacturing the iPhone. This technology can be used in making a headset with holographic
features for around $27 per unit, the sharp display for $52, and the sensor for $5 (James, 2016).
Also, when making electrical components in the holographic feature like in the headsets, the company
may incur $22. When various costs for making various components are combined, we find that the total
cost for manufacturing the gadget is $200. When making a budget, it is essential to include production
costs, which are rather to quantify. Still, according to iSupply, cost per labor per unit may be estimated at
$8 in the manufacturing process (Sherman, 2013).
Finally, Apple Inc needs to incorporate costs involved in marketing, administration, general
operation, shipping and storage costs for the products, and patents and software development expenses.
Concerning iPhone devices production, the general and administrative expenses add up to $42 (Sherman,

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2013). Based on the fact that Holographic products have to undergo similar costs, the expense seems the
same. In other words, if Apple Inc aims to produce and sell 600,000 units costing around $200 per unit, it
would cost the company around $170 million
Manufacturing Total
$208
R&D
$33
Software and Administrative
$42
Total Cost
$283
Assets and Liabilities
Apple Inc is known to have strong financial health. Based on their 2017 financial analysis, the
company had $285 billion in cash, a huge improvement from the previous quarter where the company
recorded $268 billion, much of which was stored offshore (Balakrishnan, 2018). For example, the account
receivable has $17 billion a representative of debts from firms doing business with Apple, including
governments, retailers, network providers, and wholesalers (Investopedia, 2018). The second major asset
of Apple Inc is its long-term marketable securities, $130 billion, and comprises $79 billion in corporate
securities and $22 billion in U.S treasuries (Investopedia, 2018). Additionally, Apple Inc also reports
about $20 billion in property, plant, and equipment sector, which presents the value of the company's
properties. Considering all of Apple's assets, the company has a very healthy financial leverage because
they have a lot of cash on hand and have no reason to depend on debt to finance their growth.
In terms of liabilities, the company records $63 billion, including $30 million on account payable,
meaning the company owes this amount to the companies they do business. Also, Apple has a long-term
debt work of $28 billion on a fixed interest rate and equity shareholder position of $23 billion (equity
base) and $87 billion in earning from shareholders over time.
Source of Funding and Costs
The company has hundreds of billion in cash on hand, meaning it can source and fund the
Holographic project by itself. On the other, the company has another choice of using outside funds
through partnerships. Also, the company can depend on a sponsor to fund their holographic project. Apple
can also utilize venture capitalists or angel investors to get funds.
Financial Reports
Based on the reports, the total annual revenue emanating from VR/holographic-related gadgets,
including headsets, was 1.8 billion after selling 6.3 million devices (Health, 2017). According to Statista,
the holographic market will grow from $27 billion to $209 billion by 2022 (Statista, 2018).

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Apple Inc, Holographic Project Name Affiliate Institution Professor Apple Inc is a business that deals with consumer electronics and software, and it has come to be the most successful firm in the world. Apple has become well known for its continued innovation and developing products that are changing the world and generating new markets and product lines in technology. One of its well-known products has been the center of its success if the iPhone with Apple sells more than a billion devices leading to the company making over a trillion dollars. The company expects to release a 3D Holographic feature that offers Apple with another source of revenue leading to customer satisfaction and making them over-really on iPhone devices. Financial Analysis In a move toward advancing the Holographic feature for Apple, the company purchased Akonia Holographic, a manufacturer of AR lenses and that which promised "thin, transparent smart glass lenses for displaying vibrant, full-color, wide field-of-view images." Apple Inc continues to better iPhone gadgets with iPhone 11 created to support the Holographic feature. The company has continued to lay strategi priorities to boost future growth, tou ...
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