Why Apple Will Remain A Top-Performing Company in 2015

Remember when people were wondering if Apple had lost its mojo? Following the loss of Steve Jobs, the maker of the Mac, iPhone, and iPad went a bit adrift, and investors were left wondering if the company would ever return to form.

Now Apple is hotter than ever, as evidenced by its most recent quarterly earnings report, which showed the best results of any corporation in history. Apple recorded a profit of $18 billion in its most recent quarter, with revenue of $74.6 billion. That's a gain of about $1 per share over the same quarter the year prior. Shares of Apple [NASDAQ: AAPL] have risen about 8% in the last month.

Apple is back, and there are plenty of reasons to believe it will remain one of the world's best-performing companies through 2015 and beyond. Here are 10 of the main drivers of Apple's success now and down the road.

1. The Brand

Last year, Apple was named the world's most admired company by Fortune magazine. There's little reason to think it won't be high on the list again this year. Interbrand's rankings of best global brands also slotted Apple at number one, valuing the brand at $118.9 billion, a 20% rise over 2013. When you have a brand as well-known and popular as Apple, your products practically sell themselves.

2. The iPhone

Apple sold a staggering 75.5 million iPhones in the last quarter of 2014, surpassing even the most optimistic estimates of many analysts. The iPhone now has a 15% global share and is the best-selling phone in China.

3. The Mac

The company reported 5.5 million sales of its computers in the last quarter, representing a 14% year-over-year increase. The company is not as dependent on Mac sales as it once was, and the Mac operating system makes up about 5% of the market compared to more than 90% for Windows. But Mac computers are high-margin products and very helpful to Apple's bottom line. Expect good results from a new line of MacBook Air laptops this year.

4. The iPad

Sales of the Apple tablet slid by about 15% in 2014, and analyst projections for this year aren't great. But the iPad was still the top tablet on the market in 2014, comprising a 27.6% market share. The decline in iPad sales was largely due to a decline in tablet sales overall, and competitors Samsung and ASUS saw their sales drop even more than Apple's. It's possible that the iPad will comprise a smaller chunk of Apple's revenue moving forward, or the company could blow consumers away with its next version. Don't count out the iPad's role in Apple's well-being just yet.

5. The iWatch

Smart watches aren't new, but consumers have been waiting patiently for Apple's entrance into the category. The iWatch was first revealed last September to considerable buzz and is expected to go on sale this spring. It has an estimated price tag of more than $300, making it another high-margin product that could revolutionize a category and immediately be a formidable competitor to FitBit, Jawbone, and Nike Fuelband.

6. The Apple Television

There have been rumors of this product for a while, and it's anyone's guess as to when (or even if) it will be produced. But Apple's success with the retina display on computers and tablets has many consumers salivating over a potential high-definition, Internet-enabled television from Apple. Given Apple's success in creating great consumer products for computing and music, one can expect an Apple television set to be high-quality, easy to use and with a healthy margin. Even the speculation about an Apple television is probably helping the company's stock price a few points.

7. The Beats Music

No one is entirely sure what Apple plans to do with its billion dollar acquisition of Beats Electronics, but the company has been praised for recognizing the potential of a streaming music service. Sales of media from Apple's iTunes have been sagging, but Beats' offers the avenue for Apple to compete with the likes of Spotify and Pandora, which offer streaming music for a monthly fee. And Apple is so well capitalized that we should not be surprised if Beats streaming service is priced better than competitors, at least initially. Beats also has a high-end headphone business that should bring in additional revenue.

8. The Mountain of Cash

Apple has nearly $180 billion in cash or bonds, which is larger than the market capitalization of some big companies, including Amazon and Disney. Analysts and investors love to guess what Apple plans to do with all its money, but anything the company does will probably be helpful to investors. It could spend it on research and development, which would benefit the company down the line. It could perform a share buyback or distribute a nice dividend. Or it could make some strategic acquisitions.

9. The International Growth

The United States makes up less than 5% of the world's population, so it makes sense to look outside our borders to find customers. Apple said that 65% of its revenue in the most recent quarter came from international sales. That's up from 60% in the fourth financial quarter last year and 59% the quarter before that. Revenues were up 70% over the year in China, 20% in Europe and 8% in Japan, according to TechCrunch.

10. The Mess at Amazon

One of Apple's chief competitors is Amazon, the online retailer that has also made entries into the smartphone and tablet space. By most accounts, Amazon's launch of the Fire Phone was a disaster, and the company reported a $170 million charge in the third quarter due to its lack of sales. Amazon also saw its tablet sales drop 66% in 2014. Amazon's products aren't bad, but they haven't been selling, and that's good news for Apple.

Business Tips: How to Future-Proof Your Brand

The fast-changing world affects all aspects of business – from the products in demand to the way they are purchased. Here are six tips to keep your brand up to date.

Know your story

“Be very clear about what you stand for, what you believe in and what your product is and make sure you articulate that very clearly and simply,” says Jim Prior, CEO of brand consultancy The Partners.

“Ask yourself what your vision and values are and make that the framework around which you develop your brand.”

Even if you are offering a product or service similar to that offered by other players in the market, you should be clear about why people should choose you as opposed to somebody else. “Sometimes that will be about finding a rational point of difference – some superior performance, perhaps, or a special service – but sometimes it will be purely emotional,” says Prior. “It will be about the personality of the brand and the way you want it to make people feel.”

Make your brand visible

Technology has smashed down many of the barriers that small companies used to face in building a brand, but making the most of what it can do for your business is no hit-and-miss affair.

“In today’s market, you have got to be pretty good at managing social networks and where you sit in the order of things,” says Simon Knox, emeritus professor of marketing at Cranfield School of Management.

“You need to focus on optimising your profile and you need to be continuously updating that.”

See your business through the lens of your customer

“Shop with your own business and get family and friends to do the same thing, and be open to their input,” advises Prior. He says it’s easy to become defensive when you’ve poured your heart and soul into building your business and you then receive constructive criticism, but it’s important to remain receptive to this kind of feedback. “Put on your customer hat at least one day a week.”

Think about the practicalities

“You need to optimise your digital presence for a multi-device environment, and there are many ways to do that,” Prior continues. “There are some great off-the-shelf packages now that will allow businesses to very cost-effectively develop a solution that works across platforms.”

Harness the power of advocacy and positive word-of-mouth

“Everybody knows that marketing from a neutral source is the most powerful kind of marketing you can have,” says Knox. Once you have a customer base, you should be able to identify your advocates and bloggers – they will usually be among your highest spenders – and try to build relationships with them.

Be consistent

“Don’t deviate from your message,” says Prior. “A lot of brands fall into the trap of trying something and if they don’t see an immediate return on that investment or they don’t get the most positive feedback straight away, they abandon it too quickly. The reality is that most brands are built over the long term and it can take a while to see the efforts that you make translate into rewards. Ultimately, consumers tend to reward consistency in the way that they encounter and experience brands.”

Prior says the brand is one of the areas in business where it’s possible to have a little more fun. “Don’t be too corporate, particularly if you are a small business looking to establish a niche in a market or to disrupt a bigger player. I think some form of human personality and the ability to engage with people in an emotional way is often a very powerful tool.”

That is all - 
David

Motivational Monday! Comparisons

Happy Motivational Monday!

Let us make a decision to be joyful. We get to see a new week and achieve our goals.

This quote by Theodore Roosevelt is brilliant and something that all too often we need to remind ourselves of. 

"Comparison is the thief of all joy."

To many the meaning is obvious. To me I think if you spend your time comparing yourself to others you tend to come off second best. Others have more or better. You then don’t like your stuff as much. And this is the scary reality, sometimes that stuff can be you and your accomplishments.

But if I don’t value my accomplishments then how can I value myself?

Most of us fall into this trap, especially when we are younger. You could get the most amazing present ever and be giddy with glee, then see someone with the newer version and feel like yours is rubbish.

Not sure about that? Think back to getting your phone. That iPhone 5 was great until everyone started showing you their 6.

Honestly, it's amazing how readily people compare themselves to other people, or other’s success, or other‘s everything. It leaves us feeling unsatisfied, unmotivated and unworthy. 

Can we take a step back from all this comparison crap? And focus on what really matters? Can we say, “I am happy with my lot. I have enough. I am fulfilled. I am fine?”

It goes without saying that nobody has everything. Your friend might have a significant wealth, but be lonely. You might have an amazing partner and fabulous friends but live in a (what you think to be) dumpy apartment. Both of you are comparing lives and neither of you are happy with what you already have. 

Next time you find yourself doing this comparing, ask yourself, 'What do I have? What could I be grateful about in my life?' I bet you'll find there is a lot you have and a lot you can be grateful for. 

Alternatively, if you are looking at people and thinking, 'Ha! Look at that clown. I've got better *** than them! Hahaha!', that's not great behaviour either. That smug feeling might feel good for a few minutes but they are stemmed out of spite and don't really fulfill you. Focus on your own stuff and be grateful.

Sound a bit preachy? Probably because I am preaching to myself who is in desperate need of learning this lesson.

What are you grateful for in your life?

Business Tips: Are you being transparent with your employees?

According to research, companies that trust their staff are more successful, but is there is a "right" way to be transparent in business?

Transparency, as a buzzword, is everywhere. We want it as customers, citizens and employees. It’s fair to say that the days of the “need-to-know culture” in business are numbered. But how do you do it right without giving away all the company secrets?

Be accountable

“Being open, honest and accountable to all stakeholders, should be at the core of every corporation,” says Neil Gaught of brand reputation management company Neil Gaught & Associates. “Any leadership with an ounce of common sense and a finger on the pulse of rapidly changing expectations of consumers and staff alike will know this.”

Gaught adds: “Don’t deny access to requested information; immediately deliver. Admit to mistakes immediately and don’t use tactics that delay information being handed over.”

When you sometimes need to conceal the full truth

There will be times that you are simply not allowed to share information due to it’s sensitivity. But be aware that secrecy will not go unnoticed, especially in a small team.”

Ask your staff their opinions whenever you can as employees will always speculate. The best employers pre-empt that by keeping their staff well and truly in the loop. Ask their opinion on matters. It’s a way to show your team that you trust them and respect their opinions.”

Don’t spin information

Don’t package or spin responses. Things will only come unravelled in the end and your staff will see through this.

Says Neil Gaught: “Comparison sites don’t just judge insurance these days they judge corporate behaviour and how open a company is often an important criteria.”

Nobody ever said: ‘I really like working here because I don’t know what’s going on and everything thing is on a need-to-know basis,’ but they probably did say: ‘I really like working here because know what’s going on, what the purpose is and where I am helping in that.’

Look after the middle men

A breakdown of relations between staff and management is one of the most common causes of disputes and constructive dismissal cases. Quite often these problems come as a result of rifts that can easily be maintained by good communication between bosses and their teams.

Good communication tends to squash the rumour mills where workers believe the smoking shelter or water cooler doubles as an unofficial boardroom.

But remember to think long-term

It’s all very well to get carried away with giving full disclosure to everyone including the cleaner but, be discreet too. Remember that if any of your staff leave in a bad way, your honesty could haunt you.”