Apple Marketing Plan

hardware products. The company dedicate more advances and grow more new products and stretch products types. From table 1, Apple adopts market skimming strategic. The value is middle-high level. In order to increase get the most out of incomes, they agreed their prices greater Microsoft is currently the largest company in the computer industry. With a market capitalization of $291 billion, Microsoft has built an empire by dominating software sales for personal computers. Stock growth over the past 25 years has increased by more than 30,000%. However, Microsoft's growth has substantially decreased since the market collapse of 2001(Niemond 25 April 2007).

From June 2004 to June 2005, Microsoft saw a 33% growth in net income. However, from June 2005 to June 2006, growth decreased to 2%. Investors consider net income to be the leading indicator for a stock price. To illustrate how the changes in net income affect stock prices, a time line is shown below.

6/30/04 Net income Change $24.65 Stock Growth

12/30/04 $25.89 (04-05)

6/30/05 33% $24.93 1.1%

12/30/05 $25.61 (05-06)

6/30/06 2.4% $23.92 (4.1)%

In Microsoft's 2004 fiscal year, a 33% increase in net income resulted in a 1% increase in stock price. In the 2005 fiscal year, a 2% gain in net income resulted in a 4% decrease in stock price (Microsoft Inc 2006). As seen, an increase in net income does not automatically lead to an increase in stock price. For growth companies such as Microsoft, stock price is primarily driven by the growth of earnings (25 April 2007).

Investors in the stock market judge earnings growth against two figures: the average industry earnings and the estimated earnings fo