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Business Analysis for Apple

Apple Jacob House 9/24/13 West Career and Technical Academy

Business Analysis for Apple

1 Infinite Loop, Cupertino, CA 95014


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Business Description
Apple is a leading computer and mobile device company in the United States and Internationally. They have over 400 stores in 14 countries that sells all of their products. Apple designs Mac personal and business computers; the iPhone mobile phone; the iPad and iPad Mini tablets; the iPod portable music player; and many other products including servers, software, and other services such as iCloud. All of their products are sold in their company-owned retail stores and through authorized retailers. Apple is known for making the best computers and phones that are used by millions of people all around the world.

Year Founded:
Apple was founded in 1976

Apple was founded in 1976 by Steve Wozniak and Steve Jobs. They created the first Apple personal computer, the Apple I which was the first computer to be easy enough to use and the most affordable to be a part of the standard household. After the big success of the Apple I, they knew that they had a winner and began to build more computers. In 1994 after the failure of Lucy and a few other projects, they introduced the PowerMac, which was the fastest computer at the time. The PowerMac is the most closely related to what we know as the iMac. In 2000 Apple released Mac OS X, the version of Mac that we know more recently. In 2001 Apple introduced the new iPod and iTunes. iTunes is the online music store that has currently sold over 5,000,000,000 songs. It has been the most popular online music store to this day. In January

Business Analysis for Apple 2007, Apple introduces the all new phone, the iPhone. One of the first smartphones, the iPhone was able to be a standard phone that talked and texted, but also was able to go onto the Internet for iTunes or websites, and also use Apps on the App Store. In January 2010, Apple introduced the iPad 1 and one year later, the iPad 2, and in two years, the iPad 4 and iPad Mini. Today, the currently offer the Mac, iPod, iPhone, iPad and iPad Mini, and iTunes.

Struggles and Risks

When Apple first started in the 1970s, the first computer was a hit, but the next computer the Lucy was a failure. In fact, there were many more failures until the 1990s when they introduced the PowerMac which was a hit. Another big hit was when the Board of Directors fired Steve Jobs. He started Next computers as Apple started to fail. Next was then bought by Apple and Jobs came back ultimately saving the company. Also, Steve Jobs, the prior CEO and Founder of Apple had cancer two times and ultimately died a few years ago. Another struggle that they had was entering the computer market. Microsoft had already taken most of the computer market with little room for competitors. Apple had to compete with Microsoft for a long time until their market share became about equal.

Apple has had many successes for the time they have operated. The biggest success that they had was iTunes and the iPod because it was the first easy way to buy a song and take it with you in a matter of a few clicks. Another huge success would be the iPhone with iOS. In fact, just last week when the iPhone 5S was released, they reached $9,000,000 in sales.

Evidence of Social Responsibility

Apple is a very socially responsible company. Starting with their employees, all employees are employed by Apple, not by franchises (excluding authorized retailers). Because of how open the company is, Apple is not only creating jobs for their operations, but jobs for developers, authorized sellers, and customer support. Many employees receive health benefits including those who work at home as a support tech. Vacation time and holidays, product discounts, 401(k) accounts, and tuition assistance are just a few of the benefits that employees can receive. Apple is also very concerned about the environment. Every time they design a product, they go through a checklist to make sure every product is highly-recyclable, responsibly sourced, and made with no harmful chemicals. In addition, all of their data centers and some of their corporate facilities are powered by 100% renewable energy.

Business Analysis for Apple

Senior Officers
Tim Cook, CEO; Eddy Cue, Senior Vice President: Internet Software and Services; Craig Federighi, Senior Vice President: Software Engineering; Jonathan Ive, Senior Vice President: Design; Peter Oppenheimer, Senior Vice President and Chief Financial Officer; Dan Riccio, Senior Vice President: Hardware Engineering; Philip W. Schiller, Senior Vice President: Worldwide Marketing; Bruce Sewell, Senior Vice President and General Counsel; Jeff Williams, Senior Vice President: Operations.

From of Business Ownership

Apple Inc. is an Incorporation

Apple is Publicly owned

Human Resources Utilized:

Jobs Created or Supported by Apple: 598,500 Jobs Supported by Apple: 307,250 50,250 Positions Apple Employees: 80,000 Retail Employees: 26,000 US Customer Support Advisors: 10,000 Other positions created with Apple: 257,000 Jobs created for App Developers: 291,250 $9 billion paid to Apple Developers

Natural Resources Utilized:

Metal Iron Gold Aluminum Glass Stainless Steel Sapphire Other Production Materials

Capital Goods Utilized:

Business Analysis for Apple Data centers Servers Retail Stores POS Systems iMac iPod Touch iPad Robotic Product Assembly Tables Display cases Shelving Display Computers Etc.

Most Current Figures

Revenue for 2013 Q3: $35.3 billion Revenue for 2012 Financial Year: $159 billion

Sales Trends over 10 Years

Sales are always increasing for Apple. They have gone from $6,207 million to $156,508 million in just 10 years. Historical revenues are show below. Data is presented millions of dollars and in annual Fiscal Years. 2003 - $6,207 2004 - $8,279 2005 - $13,931 2006 - $19,315 2007 - $24,006 2008 - $32,479 2009 - $42,905 2010 - $65,225 2011 - $108,249 2012 - $156,508

Business Analysis for Apple

Actions Taken to Decrease Expenses

Apple has taken a two-for-one approach for decreasing expenses. Not only do they decrease expenses, but they are also helping the environment at the same time. All data centers run off the grid for electricity. All electricity is produced on-site with renewable energy. They also use all energy efficient equipment and practices in all retail stores, corporate offices, and data centers. They also recently redesigned the standard retail store to be more efficient and hold more people. Apple also processes most of its sales online such as iTunes and the Apple Online Store.

Actions Taken to Increase Profit

Apple introduced a new store design for the standard store to increase profit and reduce cost for its space and energy efficiency. Apple also uses in-app purchases for apps and they take a part of the price in a paid app. Apple also has all of their pricing consistent no matter where you buy it whether it be online, in a Apple Store, or in a Authorized Retailer.

Computers Desktop iMac Mac Mini Mac Pro Laptop MacBook Air MacBook Pro Mobile Devices iPod iPhone iPad

Apple Mac iOS iCloud iTunes App Store

Business Analysis for Apple

Targeted Customer
The targeted customer is anyone between 5-99+ for any gender, for personal or business use, for school or for fun, or anything in between. Their products are designed to be easy enough to be used by anyone and interesting enough for even the finest developer to appreciate.

In the United States (50 states + DC) 250 Apple Stores + Many more Authorized Retailers Outside the US (13 countries) 140 Apple Stores

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Apple. (n.d.). Apple - Apple Info. Apple - Apple Info. Retrieved September 24, 2013, from History of Apple Computers. (n.d.). History of Apple Computers. Retrieved September 24, 2013, from 10 Year Financial Data of Apple Inc (aapl) - (n.d.). 10 Year Financial Data of Apple Inc (aapl) - Retrieved September 26, 2013, from