APPLE INC

PRESENTATION

Group Members :
Vanita
Them
Mary
Tebby
Gibril
Sophia

AGENDA
Case
summary
In-dept
Analysis
Apple Today
Suggestion

APPLES FOUNDERS

Steve Jobs
1955 2011

Steve
Wozniak

FROM BEGINNING
1976 - 1985

Apple I - 1976

Jobss resign 1985

Apple II 1978

Mancintosh -

 TO THE
1985 - 1996
STRUGGLE

Powerbook -1991
By 1990:
Apple was the most profitable PC
company in the world

tp://en.wikipedia.org/wiki/PowerBook_100
tp://en.wikipedia.org/wiki/Wintel

Mid of 1990s:
Declined sales and
profit

NEW BEGINNING FROM STEVE JOBS

RETURN
1997: Apple joined Microsoft to
release new versions of
Microsoft Office for the
Macintosh
1998: Introduced iMac and
gained profit

iPod
2001: iPod - icon of the Digital
Age
2003: iTunes desktop software
and iTunes Music Store were
introduced

iPhone
Jan 2007: Apple Inc.
June 2007: iPhone Invention
of the year
2008: App Store

iPad

Netbook killer
Drive new consumer
behavior

In-Depth Analysis of

Inc.

VISION AND MISSION

VISION Man is the creator of change in this world.
As such he should be above systems and
structures, and not subordinate to them.
MISSION Apple is committed to bringing the best
personal computing experience to students,
educators, creative professionals and
consumers around the world through its
innovative hardware, software and internet

Value Creation Process

Apple I,II,III

Mac

Focus On Education

C
o
n
v
e
r
g
e
n
c
e

eMac
Music Strategy (iTunes)
Video Strategy (iMovie)

Lifestyle Strategy

Internet Strategy (iTools)

Digital Hub

iMac

Adding Value

Products

Major
competitors
Competitors

PC

IBM, Dell, Acer, HP, Lenovo

iPod series

iPhone series

Samsung , SanDisk , Creative,

Microsoft Zune, Napster
Amazon.com, Napster
Samsung, Google, Motorola

iPad

Amazons kindle, Dell, HP, Samsung

Operating
system

Microsoft windows, Android OS, Linux

Geographic Revenue
Breakdown 2011
Sales
Asia pacific; 22%
Americas; 43%
Japan; 6%

Europe; 28%

Geographic Revenue
Breakdown 2012
Sales

Asia pacific; 29%

Americas; 38%

Japan; 8%
Europe; 25%

Making
markets
vs.
addressing
markets

Vertical
integra
tion

Differentia
ted
business
models

Strategy
The
Cool
Factor

Entering
markets
after
theyve
develope
d

Five Forces Analysis

New Entrants
Bargaining power of the suppliers

Threat of new entrants-Low

Low- Large no. of suppliers

capital intensive industry

High substitutability

Market power is needed

Forward integration is difficult

Supplier

Existing rivalry in
the industry- High
Highly competitive
market
Price features based
competition
Online music source
available
Small stylish MP3
players available

Customer
Bargaining power of buyers
Moderate to high
High elasticity of demand
Peer to peer file sharing is
possible
Big dealers can pressurise to
reduce cost

Substitute products & services

Moderate Alternatives are available

Lower net margin

Substitutes

SWOT
Strengths
ANALYSIS

Weaknesses

Well recognized ,product

differentiation uniquedesign, easy
to use products

Patent infringement lawsuit

may affect financial condition
and operating results

4thlargest player in the global

mobile phone market
Strong brand image, Brand
stability ,High brand loyalty

-January 2010, Nokia filed law

suit for patent infringement
with US ITC

Robust financial performance

Focused R&D driving innovation
Holds 5% market share in mobile
phone market
18.5% market share of global
smartphone market
Complete hardware/software
package

Product recalls, defects may

harm reputation and as
significant warranty and other
expenses
- 2010, antennae problems in
iPhone 4- replacements free of
charge

SWOT
Opportunities
Threats
ANALYSIS
Strong growth in smartphone and tablet Rising popularity of Google
markets to boost Apples revenues

Robust outlook for mobile advertising

market provides growth opportunity
Shipment of smartphones expected to
be 850 million by the end of 2013

iPhone business continues to increases

Strongest player in mobile apps market

(350,000 apps)
Mobile advertising market is forecast to
reach approximately $25 billion by 2015
Increasing demand of online music and
other like cloud based services.

Android may affect its

market share
- 350,000 Android
smartphones are activated
daily, 150,000 iPhone
activated daily
- Steve Jobs was
innovative and a visionary
for Apple. His death may
affect further
developments in Apple
Very reliant on specific
suppliers and component
providers
Intense competition
Highly dependent on

Apple Inc
Apple Inc Today

Apple Inc

(as of September 2011)

*364retail stores in thirteen

countries
e.g 33 UK , 22 Canada etc

1 Infinite Loop
Cupertino, California 95014
United States of America
Read more:

*60,400 permanent full-time

employees *2,900 temporary fulltime employees

http://en.wikipedia.org/wiki/Apple_Inc.

Steve launched iCloud June 2011

With iCloud users can
store photos, apps,
doc, calendars and
access songs on iTunes
without having them to
store in the phones
memory.

http://www.apple.com/iphone/icloud/

http://www.youtube.com/watch?v=DCjeSNomXrU

You can create amazing

documents and
presentations on your
iPhone, iPad, and iPod
touch. And now with
iCloud, you can keep
your work up to date
across all your iOS
devices. You dont have
to save your work or
transfer any files. And
its free with iOS 5.

On October 4, 2011,
Apple announced
theiPhone 4S

http://www.apple.com/iphone/compare-iphones /
http://www.apple.com/iphone/

Price
$199 16GB
$299 32GB
$399 64GB

Recent Acquisitions

August 1, 2011,
Apple acquired C3
Technologies US$267

On 20th December
2011, acquired
Anobit for $390
million

February 23, 2012,

acquired Chomp for
US$50 million

Recent Acquisitions (cont)

C3 Technologies

Anobit

Chomp

A 3D mapping
company
Based in Sweden,
new name Apple
Sputnik division
3 employees of C3
have joined Apple
Inc
CEO Mattias
Astrom
CFO Kjell
Cedestrand
PM Ludrig Emgard

Israeli manufacturer of
flash memory founded
in 2006
Hq -Herzliya, Israel
Anobit provides flash
storage solutions
forenterprise
andmobile markets,
based on its proprietary
MSP(Memory Signal
Processing) technology.
Its solutions are
designed to improve the
speed, endurance and
performance of flash
storage systems while
driving down the cost.
Apple relies on the
companys solutions for
the iPhone, iPad and
MacBook Air product
lines to boost memory

is a search engine
that finds the app
you want
Founded in 2009
Hq- San Francisco,
USA
Apple has acquired
Chomp, a search
engine designed to
find and discover
apps for iPhone, iPad
and Android.

2012 - iBooks
iBook Author

On January 19, 2012, Apple'sPhil

Schillerintroduced iBooks
Textbooks for iOS and iBook Author
for Mac OS X in New York

iBooks Textbook

The new iPad

http://www.apple.com/ipad/

The 3rd generation iPadwas

announced on March 16, 2012
With the Retina Display feature,
text, photos, videos are rich in detail,
color more vibrant
44% better color saturation than the
iPad 2
Lighter battery that iPad2 reducing
the weight of tablet
5mp isight camera with advanced
optics

Suggestion:
+

Apple should change its Ego-Centric Personality now!

Apple Supply Chain Issue

Apple's supplier draw controversies in China

Apple Crisis Management

EX: in 2010 July, Wrong price tagging event

Sweatshop (Labor Problem)

"Apple takes working conditions very, very seriously.
We care about every worker. No one in our
industry is doing more to improve working conditions
than Apple."
Tim Cook, CEO, Apple

Wrong price tagging

le
p
p
F ! A ers
!
p
!
!
m
!
e
r
t
de
r
o
my

Environmental pollution
lier
p
p
u
s
s

e
l
App
ap
polluting m
Lake Southern Prince(

Wailing from the residents

Labor problem doesnt belong to Apple

: exclusively, why do people act so
dramatically against us?
Apple has the influence, economically
and otherwise. So we anticipate much
more from you.

First Step: Put out the fire in

China
:

We didnt shirk from the

responsibilities which belong to the
supplier in the first place.

Carefully clarify the

responsibilities and win
supports from more people.

1 . What do you think of Apples

strategy?
2. What would you do next if
you were responsible for Apple?
3. What lessons can other
companies learn from Apples
strategies over the years?