Smartphone Industry Financial Analysis
A Financial Analysis of the Smartphone Industry
Maria Thompson
Jared Fowler
John Froman
Michael Collingsworth
Emily Barnes
Emily Pounders
Robert Crittenden
The University of North Alabama
September 23, 2011
A Financial Analysis of the Smartphone Industry
The industry of Smartphones is rapidly growing. Through our analysis, we have seen companies that have taken advantage of this rapid growth and some that have only experienced moderate growth. Through comparative analysis of financial statements, such as the income statement and balance sheet and the use of various ratios, we have analyzed the difference between seven companies in the smartphone industry. Upon close look at certain growth trends and common size ratio comparison we have found the leaders and followers in this industry.
Year-to-Year Growth
Revenue Growth
Upon first glance, the revenue growth chart between Smartphone manufacturers shows a few trends that are apparent right off hand. In 2006, hype was starting to generate about the first iPhone. In June of 2007, the iPhone was introduced into the market which affected all Smartphone manufacturers significantly. The revenue growth chart depicts this launch by showing Apple’s revenue grow while every other Smartphone manufacturer’s revenue decreased from 2006 to 2007. One of the hardest hit manufacturers was Research in Motion. This could have been due to the fact that Research in Motion’s most popular Smartphone at that time, the Blackberry, was a keypad style phone instead of a touch screen phone. It took Research in Motion at least another year to catch up by releasing a touch screen phone themselves.
The second trend that is apparent when analyzing the revenue growth data is the fact that every company’s revenue decreased in 2008. This could be attributed to the presidential election in 2008 and the state of the economy in the United States. At that time, consumers were very concerned with saving money due to the instability in the
Maria Thompson
Jared Fowler
John Froman
Michael Collingsworth
Emily Barnes
Emily Pounders
Robert Crittenden
The University of North Alabama
September 23, 2011
A Financial Analysis of the Smartphone Industry
The industry of Smartphones is rapidly growing. Through our analysis, we have seen companies that have taken advantage of this rapid growth and some that have only experienced moderate growth. Through comparative analysis of financial statements, such as the income statement and balance sheet and the use of various ratios, we have analyzed the difference between seven companies in the smartphone industry. Upon close look at certain growth trends and common size ratio comparison we have found the leaders and followers in this industry.
Year-to-Year Growth
Revenue Growth
Upon first glance, the revenue growth chart between Smartphone manufacturers shows a few trends that are apparent right off hand. In 2006, hype was starting to generate about the first iPhone. In June of 2007, the iPhone was introduced into the market which affected all Smartphone manufacturers significantly. The revenue growth chart depicts this launch by showing Apple’s revenue grow while every other Smartphone manufacturer’s revenue decreased from 2006 to 2007. One of the hardest hit manufacturers was Research in Motion. This could have been due to the fact that Research in Motion’s most popular Smartphone at that time, the Blackberry, was a keypad style phone instead of a touch screen phone. It took Research in Motion at least another year to catch up by releasing a touch screen phone themselves.
The second trend that is apparent when analyzing the revenue growth data is the fact that every company’s revenue decreased in 2008. This could be attributed to the presidential election in 2008 and the state of the economy in the United States. At that time, consumers were very concerned with saving money due to the instability in the
References: Hoover 's Inc. Alcatel-Lucent. Hoover 's Company Records. Retrieved September 20, 2011 from Hoover’s Online. Hoover 's Inc. Apple Inc. Hoover 's Company Records. Retrieved September 20, 2011 from Hoover’s Online. Hoover 's Inc. Dell Inc. Hoover 's Company Records. Retrieved September 20, 2011 from Hoover’s Online. Hoover 's Inc. Hewlett-Packard Company. Hoover 's Company Records. Retrieved September 20, 2011 from Hoover’s Online. Hoover 's Inc. Motorola Solutions. Hoover 's Company Records. Retrieved September 20, 2011 from Hoover’s Online. Hoover 's Inc. Nokia Corporation. Hoover 's Company Records. Retrieved September 20, 2011 from Hoover’s Online. Hoover 's Inc. Research in Motion Limited. Hoover 's Company Records. Retrieved September 20, 2011 from Hoover’s Online.