Apple Inc.'s Business and Financial Environment

Apple Inc. Comprehensive Analysis
Table of Contents Executive Summary. 3 Introduction. 4 Consumer Electronics and Computer Software Industry Business Environment 5 Consumer Electronics and Computer Software Industry Finance Environment 9 Apple Capital Analysis. 10 Apple’s Hedging and Derivatives Strategy. 13 Analysis of the Apple’s Green Bonds. 15 Conclusion. 17 References. 19
Executive Summary
Apple Inc. is a multinational technology company based in Cupertino, California founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne using funds from the sale of a Volkswagen bus, a calculator, and an unused circuit board (Linzmayer, 2004). The company designs, develops, and sells various products such as consumer electronics, computer software, and online services (Linzmayer, 2004). Apple’s hardware products include popular devices like the iPhone, iPad, Mac computer, iPod, Apple Watch, Apple TV, and HomePod. The company also offers software such as operating systems like macOS and iOS, media player iTunes, web browser Safari, and the iLife and iWork suites (Linzmayer, 2004). Their online services include the iTunes Store, iOS App Store, Mac App Store, Apple Music, and iCloud (Linzmayer, 2004).
The growing concern about climate change has put pressure on companies in the consumer electronics and software industry to improve the environmental sustainability of their operations. However, this pressure is compounded by the ongoing challenges caused by COVID-19 and economic hardship (Twinn et al. 2020), which make it difficult for companies to secure the funding they need to invest in environmental stewardship. As a major player in the industry, Apple must balance the need to raise funds for sustainable projects with the need to generate value for its investors. Apple's emphasis on research and development is reflected in its capital structure, with R&D making up the largest operating expenditure in 2022. To avoid negatively impacting the company's capital structure, Apple has issued green bonds, which provide a low-cost way to raise funds for research and development of sustainable innovations that help reduce the company's carbon footprint (Baulkaran, 2019).
Introduction
Apple Inc. is one of the largest and most valuable companies in the world, with a market capitalization of over $2 trillion (Mickle, 2020). In recent years, the company has been criticized for its environmental impact, particularly concerning the production and disposal of its products. To address these concerns, Apple has made several commitments to improve its environmental sustainability. These include reducing its carbon footprint, using more renewable energy, and increasing the efficiency of its products. For example, the company set a goal to be 100 percent powered by renewable energy and achieved it in 2018 (Apple Inc. 2021). They also publicly disclosed the carbon footprint of their products, and are working on the development of recycling technologies to recover valuable materials from devices at the end-of-life (Apple Inc. 2021). In addition to these efforts, Apple has also introduced several features in its products and services to help its customers reduce their environmental impact. These include energ...