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A Project report on brand marketing of Apple Inc.

What is branding
The American Marketing Association (AMA) defines a brand as a "name, term, sign, symbol or design, or a combination of them intended to identify the goods and services of one seller or group of sellers and to differentiate them from those of other sellers. Therefore it makes sense to understand that branding is not about getting your target market to choose you over the competition, but it is about getting your prospects to see you as the only one that provides a solution to their problem. The objectives that a good brand will achieve include:
    

Delivers the message clearly Confirms your credibility Connects your target prospects emotionally Motivates the buyer Concretes User Loyalty

To succeed in branding you must understand the needs and wants of your customers and prospects. You do this by integrating your brand strategies through your company at every point of public contact.

Your brand resides within the hearts and minds of customers, clients, and prospects. It is the sum total of their experiences and perceptions, some of which you can influence, and some that you cannot. A strong brand is invaluable as the battle for customers intensifies day by day. It's important to spend time investing in researching, defining, and building your brand. After all your brand is the source of a promise to your consumer. It's a foundational piece in your marketing communication and one you do not want to be without.

Introduction To Apple
Apple Inc. is an American multinational corporation that designs and manufactures consumer electronics and computer software products. The company's best-known hardware products include Macintosh computers, the iPod and the iPhone. Apple software includes the Mac OS X operating system, the iTunes media browser, the iLife suite of multimedia and creativity software, the iWork suite of productivity software, and Final Cut Studio, a suite of professional audio and filmindustry software products. The company operates more than 250 retail stores in nine countries and an online store where hardware and software products are sold. Established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977, the company was called Apple Computer Inc. for its first 30 years, but dropped the word "Computer" on January 9, 2007 to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Apple has about 35,000 employees worldwide and had worldwide annual sales of US$32.48 billion in its fiscal year ending September 29, 2008. For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a

unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008 and in the world in 2009. The company has also received widespread criticism for its contractors' labor, environmental, and business practices.

Apple played a major role in the introduction of the personal computer in the 1970s, which eventually kicked off the personal computer revolution. It’s first big hit, the Apple II, was introduced in 1977 and was a very popular with home consumers. Being the innovator that Apple is, it introduced the first graphical user interface (GUI) to the commercial personal computer. This technology is used on all of today’s major computer operating systems such as Windows XP as well as Unixlike systems. Since then, the company has revolutionized the way people and computer companies think about aesthetic design of computers and consumer electronics alike as

well as the security and operability of the operating system. In addition, Apple’s unmatchable success with it’s iPod mp3 player and revolutionary iTunes music store has left many companies struggling to keep up with the new wave of giving consumers the simplicity they desire in technology.

The recent announcement along with the release of new Apple computers using the Intel processor, rather than the faithful IBM PowerPc processor, has allowed the company to enter into an entire new realm of needed compatibility with it’s desktop and portable computers. The Intel chip allows the new machines to run the Windows Operating System natively as well as OS X on the same drive. With the correct setup of virtualization software, these two operating systems may even run at the same time, and a couple of key commands would be able to instantly switch

between operating systems. This development in technology now encourages users to switch to the very desirable Macintosh community without completely sacrificing the often thought needs of the PC.

it lacked basic features such as a keyboard. Apple was established on April 1. . They were hand-built by Wozniak and first shown to the public at the Homebrew Computer Club. Steve Wozniak.HISTORY 1976–1980: The early years The Apple I. and case. Sold as an assembled circuit board. to sell the Apple I personal computer kit. According to Brian Bagnall. The owner of this unit added a keyboard and a wooden case. VisiCalc created a business market for the Apple II. Apple exaggerated its sales figures and was a distant third place to Commodore and Tandy until VisiCalc came along. Apple's first product. 1976 by Steve Jobs. monitor. The Apple I went on sale in July 1976 and was marketpriced at $666. and gave home users an additional reason to buy an Apple II—compatibility with the office. The Apple II was chosen to be the desktop platform for the first "killer app" of the business world—the VisiCalc spreadsheet program.66. and Ronald Wayne.

In 1984. aired during the third quarter of Super Bowl XVIII on January 22. It was directed by Ridley Scott. Apple next launched the Macintosh. the first Macintosh computer. The Macintosh 128K. 1984. the Macintosh.1981–85: Lisa and Macintosh Steve Jobs began working on the Apple Lisa in 1978 but in 1982 he was pushed from the Lisa team due to infighting. and is now considered a watershed event for Apple's success and a "masterpiece". "1984".5 million television commercial. . Its debut was announced by the now famous $1. A turf war broke out between Lisa's "corporate shirts" and Jobs' "pirates" over which product would ship first and save Apple. Lisa won the race in 1983 and became the first personal computer sold to the public with a GUI. but was a commercial failure due to its high price tag and limited software titles. and took over Jef Raskin's low-cost-computer project.

which added color to the interface and introduced new networking capabilities.[38] The same year. released in 1989. It remained the architectural basis for Mac OS until 2001. which established the modern form and ergonomic layout of the laptop computer. 1994–1997: Attempts at reinvention . Apple introduced System 7. Having learned several painful lessons after introducing the bulky Macintosh Portable in 1989. Apple introduced the PowerBook in 1991.1986–93: Rise and fall Timeline of Apple II family and Timeline of Macintosh models The Macintosh Portable was Apple's first "portable" Macintosh computer. a major upgrade to the operating system.

The Newton was Apple's first foray into the PDA markets, as well as one of the first in the industry. A financial flop, it helped pave the way for the Palm Pilot and Apple's own iPhone in the future. By the early 1990s, Apple was developing alternative platforms to the Macintosh, such as the A/UX. The Macintosh platform was becoming outdated since it was not built for multitasking, and several important software routines were programmed directly into the hardware. In addition, Apple was facing competition from OS/2 and UNIX vendors like Sun Microsystems. The Macintosh would need to be replaced by a new platform, or reworked to run on more powerful hardware. In 1994, Apple allied with IBM and Motorola in the AIM alliance. The goal was to create a new computing platform (the PowerPC Reference Platform), which would use IBM and Motorola hardware coupled with Apple's software. The AIM alliance hoped that PReP's performance and Apple's software would leave the PC far behind, thus countering Microsoft. The same year, Apple introduced the Power Macintosh, the first of many Apple computers to use IBM's PowerPC processor.[45] In 1996, Michael Spindler was replaced by Gil Amelio as CEO. Gil Amelio made many changes at Apple, including massive layoffs. After multiple failed attempts to improve Mac OS, first with the Taligent project, then later with Copland and Gershwin, Amelio chose to purchase NeXT and its NeXTSTEP operating system, bringing Steve Jobs back to Apple as an advisor. On July 9, 1997, Gil Amelio was ousted by the board of directors after overseeing a three-year record-low stock price and crippling financial losses. Jobs became the interim CEO and began restructuring the company's product line. At the 1997 Macworld Expo, Steve Jobs announced that Apple would join Microsoft to release new versions of Microsoft Office for the Macintosh, and that Microsoft made a $150 million investment in nonvoting Apple stock.

On November 10, 1997, Apple introduced the Apple Store, tied to a new build-to-order manufacturing strategy.

1998–2005: Return to profitability

Company headquarters on Infinite Loop in Cupertino, California. On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of the Macintosh 128K: the iMac. The iMac design team was led by Jonathan Ive, who would later design the iPod and the iPhone. The iMac featured modern technology and a unique design. It sold close to 800,000 units in its first five months and returned Apple to profitability for the first time since 1993. Through this period, Apple purchased several companies to create a portfolio of professional and consumer-oriented digital production software. In 1998, Apple announced the purchase of Macromedia's Final Cut software, signaling its expansion into the digital video editing market. The following year, Apple released two video editing products: iMovie for consumers, and Final Cut Pro for professionals, the latter of which has gone on to be a significant video-editing program, with 800,000 registered users in early 2007. In 2002 Apple purchased Nothing Real for their advanced digital compositing application Shake, as well as Emagic for their music productivity application Logic, which led to the development of their consumer-level Garage Band application. iPhoto's release the same year completed the iLife suite.

The entrance of the Apple Store on Fifth Avenue in New York City is a glass cube, housing a cylindrical elevator and a spiral staircase that leads into the subterranean store. Mac OS X, based on NeXT's OPENSTEP and BSD Unix was released on March 24, 2001, after several years of development. Aimed at consumers and professionals alike, Mac OS X aimed to combine the stability, reliability and security of Unix with the ease of use afforded by an overhauled user interface. To aid users in migrating from Mac OS 9, the new operating system allowed the use of OS 9 applications through Mac OS X's Classic environment. On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California. The same year, Apple introduced the iPod portable digital audio player. The product was phenomenally successful — over 100 million units were sold within six years. In 2003, Apple's iTunes Store was introduced, offering online music downloads for $0.99 a song and integration with the iPod. The service quickly became the market leader in online music services, with over 5 billion downloads by June 19, 2008. Since 2001 Apple's design team has progressively abandoned the use of translucent colored plastics first used in the iMac G3. This began with the titanium PowerBook and was followed by the white polycarbonate iBook and the flat-panel iMac. 2005–present: The Intel partnership

The MacBook Pro (15.4" widescreen) was Apple's first laptop with an Intel microprocessor. It was announced in January 2006 and is aimed at the professional market. At the Worldwide Developers Conference keynote address on June 6, 2005, Steve Jobs announced that Apple would begin producing Intelbased Mac computers in 2006. On January 10, 2006, the new MacBook Pro and iMac became the first Apple computers to utilize Intel's Core Duo CPU. By August 7, 2006 Apple had transitioned the entire Mac product line to Intel chips, over 1 year sooner than announced. The Power Mac, iBook, and PowerBook brands were retired during the transition; the Mac Pro, MacBook, and MacBook Pro became their respective successors.. On April 29, 2009, The Wall Street Journal reported that Apple was building its own team of engineers to design microchips. Apple also introduced Boot Camp to help users install Windows XP or Windows Vista on their Intel Macs alongside Mac OS X.

from around $6 per share (split-adjusted) to over $80. 2008.[76] On April 2. and that Phil Schiller would deliver the 2009 keynote in lieu of the expected Steve Jobs. until . Apple's market cap surpassed that of Dell. 2007." Delivering his keynote at the Macworld Expo on January 9. Apple announced 2009 would be the last year Apple would be attending the Macworld Expo. would from that point on be known as Apple Inc. On July 11.[79] Three months later. with Steve Jobs speculating that the App Store could become a billion-dollar business for Apple. The event also saw the announcement of the iPhone and the Apple TV. On February 6. Inc. 2007. Nine years prior. effective in May. it was announced that Apple had become the third-largest mobile handset supplier in the world due to the popularity of the iPhone. Dell's CEO Michael Dell said that if he ran Apple he would "shut it down and give the money back to the shareholders.[78] Within a month. Apple launched the App Store to sell third-party applications for the iPhone and iPod Touch. Apple indicated that it would sell music on the iTunes Store without DRM (which would allow tracks to be played on third-party players) if record labels would agree to drop the technology. 2008. 2009. 2007.[81] On January 14.80. an internal Apple memo from Steve Jobs announced that he would be taking a six-month leave of absence. In January 2006. Between early 2003 and 2006. The following day. In May.[80] On December 16.Apple's success during this period was evident in its stock price. the price of Apple's stock increased more than tenfold. Apple and EMI jointly announced the removal of DRM technology from EMI's catalog in the iTunes Store. an all-time high. Apple's share price passed the $100 mark. Steve Jobs announced that Apple Computer. the store sold 60 million applications and brought in $1 million daily on average. Apple shares hit $97.

Apple creates its product with unique designs to attract the consumer’s eyes and increase its market share because Apple success is based on fulfilling customer’s desires.[82] Despite Steve Jobs' absence. SWOT analysis Strengths: Apple Computer Inc. Apple recorded its best non-holiday quarter (Q1 FY 2009) during the recession with a revenue of $8. is one of the oldest hardware manufacturers that control over the product by manufacturing both computers and their operation system. It is known that Apple has a high Quality product which makes Apple different than its competitors. and 54% of their profits are from foreign markets. Apple has one of the top brand names within the technology industry all over the world. to allow him to better focus on his health and to allow the company to better focus on its products. Most of its products are light. Apple is dedicated to develop new products which will make the use of technology easier and more efficient. small.21 billion. Apple always provides easyuse product to the hand of the consumers. and easy to carry around which make them more .16 billion and a profit of $1.the end of June 2009.

One of the great things about Apple is product diversification. Apple has a large number of product lines to target everyone in the world. In 2005. Weaknesses Apple had difficulties on some of its products quality control. There was an increase in quarterly earnings growth of 41. So far. Some consumers reported faulty screens in the iPod Nano. so investors would bear less risk by holding Apple’s stocks. The attractiveness of Apple’s products has created a brand of distinction in the computer industry. there are a huge number of consumers who are loyal to Apple even though the prices of Apple products are higher comparing to its competitors. the company has done quite well in 2006. Apple is financed mostly by its equity. Apple had reported a net income of 1. When Apple first introduced the iPod.4%. In addition. The company is loaded with extra cash that is ready to acquire any firm that could help enhance the value of the company.competitive.000.000 which equates to an increase of almost 400% from its net income in 2004. consumers faced problems with . Its stock price is the highest in the personal computer industry. In fact Apple does not have any debt.335.

its lack of debt may just be a fatal weakness. Even though Apple may seem so financially strong. Opportunities Apple is known for its innovative thinking. Apple is ranked fourth by sales of hardware. they must invest huge amount of money in their product R&D which has been increasing steadily every year. Their product line has recently expanded to another level. They have developed a product line that is both functional and attractive. In addition to the debt/equity issue. which may cause the investors to lose their confidence in this company. Their iPods will soon be able to communicate with specially designed Nike running . Apple is very vulnerable to a major stock acquisition by other groups or companies. For Apple to remain profitable. They must continue to impress the market with new products. The computer industry is a fast-changing type industry where old products are constantly replaced by newer and more improved innovations. Apple has not issued any dividends to its shareholders for many years. This puts huge pressure for Apple to maintain its position as one of the industry leader.faulty batteries. and it is focusing on internal engineering more than the market.

which gives the user more flexibility. Even though Apple’s stock price is higher than both Dell and HP. HP leads the industry with gross revenue of 88. the difference in market share and revenues are far behind them. These less-expensive computers should help increase sales in the future. Apple has also changed its chip supplier from IBM to Intel. This project can benefit both companies and boost the demand for iPods. According to the available data. In addition to Apple’s integration with other products.89 billion dollars but Dell has the highest net income. In regards to their desktop and notebook sectors. Dell’s low budget computers have given them the largest market share in personal computers. Apple has developed new lines that are less expensive while maintaining its high quality standards.shoes where you could receive data such as calories burned and distance ran. Threats Apple faces pressure from its competitors such as Dell and HP. It enables Apple to run the Windows operating system. . Apple’s iPod line will have a clear advantage over all the other mp3 players in the market. This change would make Apple more compatible with other systems. many cars models from all major automakers have equipped their new models with iPod connectivity.

If another company comes out with a better product. an appreciation in US dollars would increase net receivables but decrease future demand since price would increase. the iPods and iMacs can possibly be replaced by other devices. The depreciation of US dollars could cause a decrease in their net receivables. Another threat for Apple would be the exchange rates which can cause shifts in supply and demand. Future Goals and Expectations Apple can definitely expect a prosperous future especially in the near future. net sales have been steadily increasing with almost a 200% increase from 2004 and 2005. On the other hand. Apple will be forced to develop new products to keep this from happening. Since technology changes at such a rapid rate. this change would not result in the collapse of the company but it would certainly change the kind of role that Apple has in the industry.The substitution effect is another threat for the computer industry. Since Apple has a huge international market. Apple would lose its market share to that company. Over the past five years. However. . their revenues from foreign countries are directly related to exchange rates.

Correspondingly. Apple is known for its high quality products. high quality products that appeal to many markets. Apple must increase its R&D efforts to really minimize the number of . and market share just as long as it keeps developing and acquiring new strengths. innovative forces in the computer industry that has a much diversified. and taking advantage of its opportunities. Competitors will find it difficult to compete against the company if Apple continues to strive for innovation. further developing more high quality products. which puts them into a competitive advantage. Apple owns over 80% of the market share with its iPod product. earnings. For example. With such favorable trends. continuing its well- developed marketing plan. Thus. it is reasonable to assume that Apple will continue to increase in its sales. Apple has established its name as one of the leading. it is best that Apple works on its weaknesses so as to further increase its sales and decrease the possibility of losing its customers to its competitors. the threat of product substitution and high levels of competition would be decreased. net earnings have been increasing as well. although it seems that Apple is not in a position where its favorable future outlook is threatened. For example. However. However some components of its products such as the iPod batteries and the iPod Nano screens are of lesser quality. as it is its mission.

The solution to this weakness is to decrease the prices to the point where profits are still increasing. Another weakness that should be addressed is the lack of paying dividends. Likewise. Apple have not paid dividends since 1995 and because of its increasing earnings.products with faulty components. and a Mac desktop is at least $1300. customers would not be lost and customer loyalty would be maintained. Such high prices discourage potential customers from purchasing Apple’s products. Starting as soon as possible will put Apple in a better competitive advantage because it will definitely improve stockholder loyalty as well as allow for an increase in shares. Another weakness that must be addressed is the high prices of its products. With its already well-established name brand and its positive sales/market share growth. For example. the cost of sales should be decreased but only to the point where the quality of the products is not sacrificed. the iPod nano ranges from $150 to $250 depending on the size. they will eventually start paying dividends. the iPod ranges from $300 to $400. Although other computer companies do not pay dividends. Thus. the company has the ability to pay off dividends. Apple will without a doubt continue to .

Today Apple. Apple next introduced the MacIntosh Computer in 1983 during the Super Bowl. However. The Two collaborated in the development of the “Apple I in the early 1970s.As the growth of home computer use grew. decreasing its prices. Apple grew with it. Apple can tremendously gain a competitive advantage over its competitors. The Apple I was a step ahead of most computers of the time featuring a use of aTV as a display system and a cassette interface for recording programs. and paying dividends.increase their earnings and market share. The computers desktop publishing features provided the foundation for future innovations that have become standard for the company. After obtaining financing for the development of Apple II. by working on at least some of its weaknesses through minimizing the number of faulty components in its products. Inc originated from the friendship and mutual interests of Steve Wozniak and Steve Jobs. In 1980 the company issued its initial public offering of investment stock. Apple Marketing Mix Apple. the Apple Computer Company was formed in 1970. .000 employees and revenues exceeding 42 million dollars. Inc has more than 33.

including Airport Express. Price         Apple is a premium brand computer that does not attempt to compete on price. Led Cinema Display. Periphal products – including Printers. The Apple Mac Book costs $999. Storage devices. MacBook Air. TV shows. The Apple iPod Nano costs $149. iPod – including iPod Shuffle. The Apple iPod Classic is priced starting at $249. iPod Nano. The company has reduced prices after some initial product launches. Accessories – including MagicMouse. The Apple MacBook Pro is priced at $1199. The Apple Quicktime Pro for Windows costs $29. MobleMe. iTunes – including movies.Product          Portable Computers – including Mac products such as Mac Book Pro.99 . The AppleiPad is priced at a minimum of $499. iPhone – including iPhone3GS. Airport Extreme. Keyboard. Mac Program. Time Capsule. audio books. iPhone3G. digital videos and cameras. Xserve Servers – including Xserve. iPad. iPhone Program. It uses skimming and preimuim pricing strategies. iMac. Wi-fi Based Stations . games. Xsan. ipod Classic. MacOS X Ser. The Apple iPhone costs begin at $99. Mac Mini. Developer – including Developer Connection.

This would be consistent with a similar $200 price cut on the iPhone in 2007. and the 8GB iPod Touch. Apple has over 200 retail stores worldwide including the US.S. Apple recently opened a new retail store in Shanghai China. who complete regular Apple training and assessments. Changes are said to be a response to a slower pace of music downloads. Inc authorized Training Centers are located throughout the U. The Apple Consultants Network includes independent professional service providers and technology consulting firms that specialize in Apple and third-party solutions. California. Inc offers special discounts on refurbished MacIntosh computers. 99 cents or $1. and Apple’s professional applications.  Apples iPad pricing strategy includes the flexibility to lower the prices if consumer response dictates such action. They are located in Asia/Pacific. In each case a 1 year warranty is included on the all products. and offer repair services. each provides instruction in Mac systems.29. and exclusive access to genuine Apple parts. He said the "vast majority" of the songs will cost 69 cents. Africa. Inc Headquarters are located at is located at 1 Infinite Loop. Mac OS X. these providers deliver on-site technology services and support to home users and businesses of all sizes. Place      Apple.songs will cost 69 cents. A wide range of certification . Apple service providers are certified technicians. UK and Canada. Cupertino. In 2009 Apple announced a reduced cost pricing structure for iTunes . Apple. the Middle East Europe and Latin America. Certified on Apple technologies. Promotion   Apple. iPod Nanos.

upgrade services. Levinson. Andrea Jung and Author D. Inc Non Executive Board Directors include William V. Jonathan Ivey. and service technicians— delivered exclusively by Apple Certified Trainers.     exams and courses offer innovative learning opportunities for IT and creative professionals. (Industrial Design). The online Apple store offers iTunes gift cards. Cook. Peter Oppenhiemer (Chief Financial Officer). Bruce Sewell (General Counsel). Canada. Robert Mansfield Mac Hardware Engineering). The online Apple Store offers free shipping for orders over $50. The Apple Consultants Network website provides a search tool allowing visitors to locate nearby certified Mac product consultants in the U.S. Millard S. including some aimed at college students. data recovery. Albert Gore. Drexler. Campbell. People o o o o Stephen P. and onsite deployment and installation. (COO). Scott Forestall. Philip W. and a number of international locations. Key Senior Management team members include Timothy D. Apple has packaged back-to-school offers. Apple provides a $100 rebate when you purchase a Mac or specific printers from the online store. and D. Ronald B Johnson (Retail). educators. . Schiller (Worldwide Marketing). Some certified Apple service providers offer additional services beyond repairs and parts such as such as data transfer. Mark Papermaster (Devices Hardware Engineering). Jobs is the Chief Executive Officer of the Executive Board at Apple. Bertrand Serlet (Software Engineering).

apple. iPhone. Apple has expanded its distribution channels in recent years including the addition of Wal Mart . Process o o o Apple converts new customers and secures their loyalty through a corporate emphasis on customer service.com The Apple logo has evolved from its original depiction of Sir Isaac Newton under a tree to the memorable rainbow apple to the present blue Apple with a bite taken out.o o Every Mac. seven days a week. Physical Evidence o o Apple Inc’s main website is located at http://www. and display comes with complimentary telephone technical support for 90 days after your purchase and a one-year limited warranty. Apple seeks to attract its target market through bold public relations events (such as the MacWorld Expo) as well as advertising imagery which borrows from contemporary modern art. The AppleCare Protection Plan extends your service coverage and gives you one-stop service and support from Apple experts. The AppleCare Professional Video Support gives you direct access to Apple's Professional Video Technical Support team via telephone and email 12 hours a day. iPod.

implemented strategies to fulfil these . It lives it by ensuring that its employees understand the vision and strive to reach it. As such he should be above systems and structures. Apple doesn't simply make a statement. It has put systems in place to enable smooth customer interaction.Vision Statement "Man is the creator of change in this world. It strives to make its customers masters of the products they have bought." Explanation of vision Apple lives this vision through the technologies it develops for consumers and corporations. It has put objectives in place to continuously move forward. and not subordinate to them.

Apple vertically integrated both the operating system software and hardware completely under Apple. A consumer running Microsoft Windows can choose from a myriad of systems . Microsoft provides the Windows operating system to separate downstream hardware producers such as Dell. Mission Statement “Apple is committed to bringing the best personal computing experience to students.objectives. software and internet offerings” The Future of Apple Personal Computers – A Shift in Strategy Apple has historically taken a far different path than the traditional Windows and Intel combination. educators. financial and operational structures are in place to apply the strategies. creative professionals and consumers around the world through its innovative hardware. and ensured that the right marketing.

He referred to Mac clone producers as “leeches” and . (Burrows) Jobs traditionally sided against licensing Apple technology. Apple is adjusting this strategy by migrating their microprocessors from IBM and Motorola PowerPC to Intel. With Apple Boot Camp. it would also provide royalty-based revenue that could approach $1 billion annually. “We had the most beautiful operating system. Apple reduced the switching costs for traditional PC users. (Burrows) In addition to switching processors. users may now use Mac OS X or Windows on an Apple computer.By allowing users to run Windows on an Intel Mac. Apple positioned their computers as an immediate option for the traditional Microsoft Windows user. Apple cofounder Steve Wozniak criticizes this strategy. Apple may steal away customers that are willing to pay a premium for a system that runs both Windows and Mac OS X.”Whether Apple would be willing to pursue this reversal of vertical integration is unclear. (Sutherland). and others) failed on accord of Apple’s rigid demands. Analysts believe that the Intel-based Macintosh may be able to run Microsoft Windows applications by the end of 2006. That was a mistake. technology leaders (such as a 1985 letter by Bill Gates to Apple CEO John Sculley) criticized Apple for keeping a closed architecture.based on the Intel processor. while a consumer running Apple’s OS X must purchase Apple hardware. but to get it you had to buy our hardware at twice the price. Many Gateway. Past attempts at licensing Apple technology (to IBM. Apple continues to retain a strategic option to license its technology to clone makers such as Dell. Although such a move would cannibalize a portion of Apple’s own hardware sales.

Product differentiation with focused quality and style also extend to the Jobs Pixar – “Pixar's executives focus on making sure there are no ‘B teams. Ive’s design of the iMac included clear colorful cases that distinguished Apple computers. After Jobs returned in 1997.he personally killed Power Computing (a Mac clone producer) by terminating their license in 1997. External Aanalysis Technological Environment Brand Awareness – Style at a Premium Apple’s products are trendy and stylish. Apple and Pixar limit the number of computer products and movies that they sell.’ that every movie gets the best efforts of Pixar's . Apple retained designer Jonathan Ive to differentiate their computers from the typical beige box. Apple’s iPod (with the trademark white ear buds and simple track wheel) commands a 15%-20% premium over other MP3 players.

it comes encased in a very small and distinctive package.000 threshold. Grover. Dell. and technologists.” (Burrows. (Apple) Likewise. “Apple is struggling to meet demand for its new MacBook Pro laptop despite a $1.” Apple has only recently entered the low-end (below $500) consumer market with the Mac Mini. Apple portrays this computer as “Small is Beautiful”.900 price tag that is nearly twice that of garden-variety rivals. HP.brainy staff of animators. storytellers. its iLife suite provides consumers with easy-to-use software for music and video . the iPod Shuffle was Apple’s first entry into the lower-end ($100 range) of flash-memory-based portable music players. and Green) Apple positions its Macintosh computers as higher quality and higher price. Technology and the Digital Lifestyle Apple not only dominates the music player market. and other PC manufacturers are pricing many systems under the $1. Although the Mac Mini is a base model with few features.

Figure : Porter’s Five Forces Model . Apple’s Garage Band application makes the recording of podcasts and music very easy. software. it had had difficulty in sustaining its leadership position. Industry Analysis Using Porter’s Five Forces Model Apple operates in two primary industries:  Computing .” We use Porter’s Five Forces Model to understand why Apple’s industries are so competitive. With “podcast” a household word..Every time that Apple had jumped into the lead in a product category during the past two decades. “Looking to 2005..composition. and entertainment industries.Hardware and Software  Delivery of Entertainment and Media Apple has always been under intense competition within the computer.

The “Next New entrants with disruptive technology.Threat of New Entrants Bargaini ng power of Supplier s Level of Threat in an Industry Bargaining power of Buyers Threat of Substitutes Figure : Summary of Industry Threats (Computer Equipment and Entertainment Distribution) Type and Organization Examples Severity of Threat Entry High Threat – Verizon Streaming audio and video with V CAST. Google” . They make everything. Amazon Google On demand online services to purchase music (similar to iTunes).

Creative DreamWorks Animated movies. Lenovo iRiver. Entertainment Media.Rivalry High Threat – Microsoft Windows Operating System. Linux Napster. YouTube. HP.com Online video. PS2 Various Satellite Radio for music. Substitutes XM. Internet Streaming Radio and Podcasts. Online music sources – alternatives to iTunes Music Store. Alternate sources for computer hardware. Competition to Mac OS X Operating System. Small. stylish MP3 Players. Sirius – Moderate Threat XBox. Windows Media Player for playing music and video. Rhapsody Dell. Media and Music. Music CDs. Alternative means to acquire music. DVD-Audio and . Samsung.

Sources of music. ABC. online services? Note that this threat is Sony reduced for Disney / Pixar. Sony. but there are sparse profits from the songs being sold over the Net. Suppliers of Television and Movies. they sign exclusive contracts with other Fox. Universal. Threat Samsung Microsoft The Big Five BMG. EMI. memory. “Apple reaps billions from selling its hit music player. Theatres Suppliers – Motorola. and Warner Strategic Alliance / Supplier of Office for Mac. Suppliers of Processors and computer High IBM. . Pixar. Grover.” (Burrows. Intel. CBS. and Green) Disney. Cable. NetFlix. Alternative sources for video.SuperAudio CD Broadcast. Satellite. TiVo. Will NBC. Will they raise prices and break the dollar per song model? Some in the record industry resent Apple’s distribution model.

the release of the Apple Store in 2001 “infuriated longtime independent Apple retailers that didn’t appreciate Cupertino cannibalizing their sales.Buyers – Consumers Consumers share music using peer-to-peer Moderate and Illegal networks without paying for music. Consumer Refresh Cycles Consumers and businesses may continue to use previous-model iPods and Macs rather than upgrade to current iPods. 300) Consumer Consumers or businesses may reduce Attitudes and spending on personal computers or nonBehaviors essential (potentially high elasticity of demand) music players if they fear economic downturns. For example.” (Linzmayer. iMacs. Threat peer-to-peer file sharing Distributors Apple retailers may pressure for lower prices or better terms. or OS .

Apple may be unable to provide some of the music content that they currently offer. the style and ease-of-use of an iPod) and economies of scope (i. Amazon could present a formidable challenge to Apple. If the major record labels (Universal. They . With a wide internet prese presene and a household name. especially in developing markets such as China. and Warner) negotiate better terms with new competitors to iTunes. EMI. offering ABC television shows on iTunes) to maintain their sustained competitive advantage in this industry. free) cost of the software may allow it to overtake Apple and Microsoft.The total industry threat for the industry space that Apple occupies (computer equipment and distribution of entertainment) is a high threat industry.e. The low (often.  Music Products: Major online retailers such as Amazon are considering entry into the online music market. The major music labels dislike Apple’s dollar per song pricing. Apple must continue to pursue product differentiation (i.e. Which External Threats are Most Significant  Computer Hardware and Software: Open Source software such as the Linux Operating System and Open Office applications threaten both Apple and Microsoft. Sony BMG.

Apple should consider additional sources such as Advanced Micro Devices (AMD). With only two companies (Intel and AMD) producing Intel-compatible processors. Lenovo. (Wingfield) With variable pricing.would prefer to earn higher profits with “variable pricing”. the most popular songs would be greater than $1. and Dell. Apple purchasing must now directly compete with HP. Figure: CPU Market Share . Although the labels recently renewed their contracts with Apple. If shortages or exclusive agreements materialize. Apple could face problems with obtaining raw materials. (Wingfield and Smith)  Suppliers: The recent shift to Intel processors could present a significant threat to Apple. and less popular songs would be less than $1. there may be provisions that allow future changes in the pricing model. there is a strong potential for tacit collusion and oligopoly power between these suppliers.

In fact. because their OS X is mature and stable due to its basis on BSD Unix. However. like all large software products. A significant exploitation in the future could damage many businesses and households using Apple computers. In .Additional External Threats Security Apple software. Apple enjoys a competitive advantage. has security vulnerabilities that hackers may exploit. “computer security folks back at FBI HQ use Macs running OS X”. the increased use of Apple computers is prompting hackers to target the platform. This would affect future customer purchasing decisions.

Sony is attempting to vertically integrate forward directly to the music buyer. By using iChat instant messaging. their service could present a formidable challenge to iTunes in additional markets. Apple’s perceived differentiation as the more secure platform may disappear. there was documentation of the first known Apple OS X worm. Vertical Integration of Competitors Sony is an example of a competitor with a unique position against Apple. If Mac OS X becomes as wide of a target as Windows. Sony Music supplies Apple with many of the songs for iTunes. Sony also creates a version of the Walkman portable music player that is a direct competitor to the iPod. it spreads to other users and deletes files from their Mac computers. If Sony can gain additional momentum (such as collaborating with other record labels). (Hall) Mora currently targets Japanese consumers. . Sony integrated their music system (Mora) into the Sony Walkman.February 2006. Sony is exclusively distributing certain songs on Mora.

Production. Apple drives to be the . Sales and Marketing.Value Chain Analysis To determine where Apple developed distinctive capabilities. Primary activities for Apple include Technology and Product Design. Customer Service. Technology and Product Design This component represents the true core (no pun intended) of Apple’s capability. and Legal Services. Apple’s history is rich with cutting-edge technology development. Porter’s generic value chain model provides a systematic framework for identifying Apple’s utilization of resources. From being the first platform to run an electronic spreadsheet (VisiCalc on the Apple II Plus) to the first to establish a “digital lifestyle” hub (the Macintosh product lines).

Apple treats component production as a natural extension of the design process. Sales and Marketing We could simply title this section “Steve Jobs”. Apple achieved unparalleled performance via 64-bit architecture. integrated distinctive styling with the multi-colored translucent iMac cases. iPhoto. The Apple operating system is universally regarded as more stable and reliable than Windows.best. Newton. and redefined intuitive operation with the iPod. Ives best summarizes the entrepreneurial culture within Apple by saying that “it’s very easy to be different. the bundled packages of Apple-developed hardware and software became the cornerstone of Apple’s production process. while the desktop publishing software bundles (iMovie. etc. but very difficult to be better. reviews corresponding marketing campaigns.) are the most comprehensive available to end users. iTunes. While every product introduction has not been a success (Lisa. Jobs personally unveils all new product introductions. and approves new product .” Production Because Apple had long refused to license its operating system to external entities. etc. Since his return as CEO in 1997.). no simply the first.

).development guidelines. Apple continued to command a market premium for producing a “better mousetrap” throughout its history. etc. 290) After years of unimpressive market share growth and cannibalization of a loyal consumer base.” (Linzmayer. the door to the expansive PC market was now more accessible to Apple than ever before. other MP3 players. Jobs “entered into patent cross-licensing and technology agreements with Microsoft. In a departure from their turbulent history. PCs. (Wingfield) In such an environment.Although Apple employs many resources and capabilities to . Customer Service How has Apple retained substantial cash reserves during the explosive growth and dominance of PCs worldwide? Apple created a virtual love affair with their customer base by delivering technically superior products (iPods vs. Apple integrated their primary activities so well that it is transparent to the consumer where one activity begins and the other ends. customer service merely becomes the realization of receiving a little more than expected. and aggressively pursuing hardware and software updates. Macs vs. A perfect example of this is Apple’s willingness to develop software to run Windows XP on its new Intel-based iMac and then post it online free to iMac users.

Later. etc. it is evident that this attitude permeated the company during its peaks of success. It released a highly stable operating system in 1999.support their primary activities (human resources. When reviewing the history of Apple. Apple introduced the easy-touse iMac in 1998. and updates following 1999. the most strategically relevant would be Legal Services. we examine what Apple did historically and then discuss alternatives for Apple’s future. Product Differentiation Apple prides itself on its innovation. Strategy We can describe Apple’s strategy in terms of product differentiation and strategic alliances. and updates following 1998.). supply procurement. This move allowed Apple to have a desktop and a portable computer in both the professional and the consumer segments. Apple pioneered the PDA market by introducing the Newton in 1993. For instance. The matrix is as follows: . This completed their “product matrix”. In each of these strategies. Apple had one of its critical points in history in 1999 when it introduced the iBook. a simplified product mix strategy formulated by Jobs.

Time will tell whether that happens. iMovie. “iPod is going to change the way people listen to music.Professional Segment Desktop G3 Portable PowerBook Consumer Segment iMac iBook In 2001. iPhoto. Then Apple introduced the iPod. “We are going to do for digital creation what Microsoft did for the office suite productivity. In 2003. stated. Apple continued their innovative streak with advancements in flatpanel LCDs for desktops in 2002 and improved notebooks in 2003. In reference to Apple’s recent advancements. Apple then opened its own stores. Philip W.” He was right. . and iTunes. Apple hit another important historical point by launching iTunes. central to the “digital lifestyle” strategy. in spite of protests by independent Apple retailers voicing cannibalization concerns. VP of Worldwide Product Marketing for Apple. Apple released the iLife package. Jobs said. Schiller. containing improved versions of iDVD. This marked the beginning of Apple’s new strategy of making the Mac the hub for the “digital lifestyle”.” That is indeed a bold statement.

which had dual 2. This allowed iTunes Music Store online to offer over 200.000 songs at introduction. Sony Entertainment. it also must bear the costs associated with overcoming the differentiation inherent in the . its links with other firms have been limited. EMI. Apple released the world’s fastest PC (Mac G5). Product differentiation is a viable strategy. However. especially if the company exploits the conceptual distinctions for product differentiation.0GHz PowerPC G5 processors. thus reducing the threat of new entrants. The primary economic value of product differentiation comes from reducing environmental threats. In 2003. especially in the case of monopolistic competition. Apple established a reputation as an innovator by offering an array of easy-to-use products that cover a broad range of segments. There is economic value in product differentiation. as we will discuss in the next section on strategic alliances.Apple continued its digital lifestyle strategy by launching iTunes Music Store online in 2003. Warner. links with other firms. Not only does a company have to bear the cost of standard business. Those that are relevant to Apple are product features. and reputation. The cost of product differentiation acts as a barrier to entry. Universal. obtaining cooperation from “The Big 5” Music companies—BMG. product mix.

For this to occur.incumbent. thus reducing the threat of substitutes. a company with a differentiated product can pass that cost to its customers. the strategy is difficult to imitate. Since companies pursue niche markets. a company may see economic value from a product differentiation strategy. thus reducing the threat of suppliers. difficult to imitate. With all of Porter’s Five Forces lower. there is a reduced threat of buyers. the strategy is rare. A company’s differentiated product will appear more attractive relative to substitutes. Since a company with a differentiated product competes as a quasi-monopoly in its market segment. If there is no direct. . a product differentiation strategy that is economically valuable must also be rare. If there are fewer firms differentiating than the number required for perfect competition dynamics. If suppliers increase their prices. There are four primary organizing dilemmas when considering product differentiation as a strategy. there is a reduced threat of rivalry among industry competitors. and the company must have the organization to exploit this. A company attempts to make its strategy a sustained competitive advantage. easy duplication and there are no easy substitutes. They are as depicted below.

A U-Form organization resolves the inter-functional collaboration dilemma if there are product development and product management teams. Five leadership roles will facilitate the innovation process: Institutional Leader. Critic. Having a policy of experimentation and a tolerance for failure resolves the commitment to market vision dilemma. there must be an appropriate organization structure. Managerial freedom within broad decision-making guidelines will resolve the institutional control dilemma. and Mentor. Sponsor. Entrepreneur.Inter-Functional Collaboration Too Much Slows (Lockstep) Connection to the Innovation Past Too Much (History as Stifles Constraint) Innovation Commitment to Market TooVision Much (Foresight) No Innovation Can Take Place Institutional Control Too Much Lack of Flexibility in Uncertain (Bureaucracy) Market Organizing Dilemmas Too Little (No Collaboration) No learning makes implementation difficult Too Little (No Lack of Direction in History) Innovation Too Little (No Fail to Exploit Historical Sight) Advantage Too Little (Chaos) Lack of Direction in Innovation To resolve these dilemmas. The institutional leader creates the organizational infrastructure necessary for . Combining the old with the new resolves the connection to the past dilemma.

This role also resolves disputes. evidenced by their numerous innovations. when Apple was seeking a CEO acceptable to Jobs. stated. then-editor of California Technology Stock Letter. To continue a product differentiation strategy.” Since Jobs took over as CEO in 1997. and progress. particularly among the other leaders. counsels. advocates. said. goals. ex-Products President at Apple) commented. it would require a bisexual. The entrepreneur manages the innovative unit(s). blond Japanese who is 25 years old and has 15 years’ experience!” Charles Haggerty.000 years ago. Jean-Louis Gassée (then-CEO of Be. then -CEO of Western Digital. “Apple is a company that still has opportunity written all over it.innovation. and advises. The sponsor procures. The mentor coaches. “Apple desperately needs a great day-to-day manager. The only person who’s qualified to run this company was crucified 2. The critic challenges investments. In 1997. Apple must continue its appropriate management of innovation dilemmas and maintain the five leadership roles that facilitate the innovation process. But you’d need to recruit God to get it done.” Michael Murphy. leader and politician. . and champions. Apple seems to have resolved the innovation dilemmas. Apple had issues within its organization. visionary. “Right now the job is so difficult.

Recommendations For Company Lowering the cost of products and maintaining the same quality standards. More number of retail stores for easy access. For Others Do not compromise on price for quality. Continuous innovation to expand. Can form joint – ventures. Knowledge Management. Be unique and different. Choose the products based on individual needs. .

Conclusion .

they will need to continue innovating to expand the boundaries of both media and computers. (Burrows) This very innovative company exploits its second-mover position. Apple must find a way to learn as an organization.Apple should continue pushing the new line of media-centric products.We feel that Apple must focus on several key aspects to continue to grow and succeed. Apple apparently made a commitment to licensing. the reaction of both the market and consumers would be uncertain. In the future.One persistent element of both competitive advantage and risk is Steve Jobs. This will allow the company to withstand a departure by Jobs. If he were to divest his leadership position. push for economies of scope between media and computers. Given his position within the organization as well as the history of the company when he was gone. and become a learning organization. An equity strategic alliance may offer Apple the opportunity to obtain additional competencies. He is both synonymous with Apple’s success and has a large equity interest in Apple and Disney. Meanwhile. They must continue a stable commitment to licensing. Macintosh computers were 39% of Apple’s sales in 2005. Apple may want to consider other forms of strategic alliances. An effective way for a company like Apple to accomplish this would be in the form of a joint venture. Apple should not lose focus on its computers. Although it should continue. Based on the actions of the .

When the Internet happened. ways to make their products stronger by participating in markets that others develop. This is an art that Microsoft has mastered. Apple routinely and often unconsciously forced them out of business by bundling. or declaring that they will bundle a competitive offering. or try to use legal means. there's no reason Apple couldn't have learned the same lessons. they miss obvious marketing opportunities. they often ignore it. we feel that they will continue to succeed and will continue to outperform their peers.0 in the 90s. For this reason.organization. When challenged by a larger market force. we feel that the mid-term performance of Apple will be strong. you'll see that instead of rising to competition. And when dealing with smaller competitors. as with the IBM PC and its clones in the early 80s. to erase it. and with Windows 3.0. 95 and then NT 4. but they didn't. This period allows Apple time to overcome their challenges if they move swiftly. or bundling clout. preferring to invest in technologies that eventually ended . Apple struggled against it instead of embracing it. Apple avoids competition If you look at the history of Apple.

Apple wants to keep their hardware business. Power Computing. I despise companies that use hardball tactics to put their competitors out of business. A wasted lead in content development. entitled to. bigger. for any reason at all. The bottom line. faster. it appears that Apple has the contractual right to forbid them to ship the computers. But they want to do it again. a poor Java implementation on the Mac. because they're cheaper. in my opinion. more powerful machines than Apple's new products. These are the computers that Mac users want and are. the strategy of avoiding competition has been disastrous for Apple. I admire companies that rise to competition. . Motorola. so they exercise that right. IBM and others. The same old strategy The cloners. Even though we haven't seen the license agreements with the cloners. I don't like to buy products that I'm forced to buy. developers going to Windows. I happily buy new products when I have a choice.up on the scrap heap. are poised to ship products that would take Apple out of the hardware business. UMAX.

digital music distribution through its iTunes Music Store.Apple's Branding Strategy Apple Inc. it's loved. The Apple brand personality is about lifestyle. passion. Apple's product strategy is to create innovative products and services aligned with a "digital hub" strategy. the consumer electronics industry with products such as the iPod. cellular phones. not only kept the company alive for much of the 90's (when from a rational economic perspective it looked like a . The Apple brand personality is also about simplicity and the removal of complexity from people's lives. imagination. including the personal computer industry with its Macintosh line of computers and related software. and other electronic devices. and more recently in the smart phone market with the Apple iPhone. including the Apple iPod. uses the Apple brand to compete across several highly competitive markets. The Apple Brand Personality Apple has a branding strategy that focuses on the emotions. whereby Apple Macintosh computer products function as the digital hub for digital devices. hopes. and power-to-thepeople through technology. digital video and still cameras. and about being a really humanistic company with a heartfelt connection with its customers. Apple Brand Equity and Apple's Customer Franchise The Apple brand is not just intimate with its customers. dreams and aspirations. for instance. The brand equity and customer franchise which Apple embodies is extremely strong. innovation. and there is a real sense of community among users of its main product lines. The preference for Apple products amongst the "Mac community". liberty regained. peopledriven product design. personal digital assistants.

It is arguable that without the price-premium which the Apple brand sustains in many product areas. Apple provides Apple Mac-expert retail floor staff staff to selected resellers' stores (such as Australian department store David Jones). Small market share PC vendors with weaker brand equity have struggled to compete with the supply chain and manufacturing economics of Dell. of course presents Apple with an enormous challenge to live up to. Apple has made big advances in becoming more efficient. but are fundamental to keeping it. Apple is expanding and improving its distribution capabilities by opening its own retail stores in key cities around the world in upmarket. The Apple Customer Experience The huge promise of the Apple brand. HP who was selling a co-branded form of iPod and pre-loading iTunes onto consumer PCs and laptops). beautifully-designed. Apple has also increased the accessibility of iPods through various resellers that do not . quality shopping venues. highly ergonomic.dead duck) but it even enables the company to sustain pricing that is at a premium to its competitors. but would still find it difficult to make a profit at the price levels Dell transacts at. The innovative. it has entered into strategic alliances with other companies to co-brand or distribute Apple's products and services (for example. and technology-leading products which Apple delivers are not only designed to match the brand promise. particularly in logistics and operations. the company would have exited the personal computer business several years ago. Apple fully understands that all aspects of the customer experience are important and that all brand touch-points must reinforce the Apple brand.

The list of Apple's Trademarks reflects something of a jumbled past. The very successful Apple retail stores give prospective customers direct experience of Apple's brand values. it is not used for a large number of Apple's consumer products (eg Mac mini. and has increased the reach of its online stores. Apple Store visitors experience a stimulating. Apple has not established an "i" brand. even when investing strongly in the Apple iPod and Apple iTunes products. The overall feeling is one of inclusiveness by a community that really understands what good technology should look and feel like . Safari. no-pressure environment where they can discover more about the Apple family. and let their enthusiasm show without being brash or pushy.everything being associated with the Apple name. QuickTime. and Mighty Mouse). Apple Brand Architecture From a brand architecture viewpoint.currently carry Apple Macintosh systems (such as Harvey Norman). try out the company's products. but iMac. the company maintains a "monolithic" brand identity . MacBook. Airport Extreme. iBook. even though marketing investments around iPod are substantial. Products whose market includes Microsoft computer users (for example . iLife. However. informative. and now iPhone. and get practical help on Apple products at the shops' Guru Bars. The predominant sub-brand since the introduction of the Apple Macintosh in January 1984 has always been the Apple Mac. Apple TV. iWork. Apple retail staff are helpful. Apple's current line-up of product families includes not just the iPod and iTunes.and how it should fit into people's lives. While the "i" prefix is used only for consumer products.

Apple is using iPod. QuickTime. In a so-called iPod halo effect. these product initiatives are growing a highly relevant.MobileMe. Apple's aspirations for the iPod halo effect was was highlighted most strongly when it used the slogan "from the creators of iPod" in its promotion of iMac G5 computers. iTunes. Apple's venture into these product areas was based on a strategy of using the music business to help boost the appeal of Apple's computing business. then leveraged into the consumer electronics market. appealing brand image in the minds of consumer segments that Apple has not previously reached. and then back into the consumer personal computer market. This does seem to have happened. and now iPhone to reinforce and reinvigorate the Apple brand personality.having been built into a branding system that originates in the personal computer market. Since the take-off of the iPod there has been a dramatic rise in Apple's computer sales and market share. and Xserve). The iPod Halo Effect Though Apple's iPhone and iTunes music business is profitable in its own right. Apple hoped that the popularity of iPod and iTunes among these new groups of customers would cause these segments to be interested in Apple's computer products. Bonjour. the Apple brand came full-circle . At the same time. and Safari) have been named so they are somewhat neutral. the Final Cut family. Yet other product have been developed more for a professional market (eg Aperture. and therefore more acceptable to Windows users. In this instance. Apple Brand Strength Now Creating Financial Success . A couple of years ago.

and Apple has achieved several "best ever" quarterly financial results during the past couple of years. By July 2008 the buzz about the 3G iPhone resulted in over 1 million units being sold in the first 3 days of its release in over 20 countries around the world. When Microsoft launched its Excel spreadsheet in 1984 it appeared first on the just-released Apple Mac. the company's sales and margins have been growing strongly since 2006. long time ago (at the end of the 1970's) the first spreadsheet program (VisiCalc) was launched on the Apple II. the next phase of Apple's strategy seems focused on the Corporate marketplace. Apples' branding strategy is bearing fruit. Apple Re-entering the Corporate Market via the iPhone Halo Though no-one at Apple would say so today. Leveraging the success of the iPod. Apple had a fairly strong market share in large companies. Apple's buzz marketing efforts in the first half of 2007 were truly superb. A long time ago. Microsoft still has a vigorous applications development team totally dedicated to writing business software for . Apple launched the iPhone (released in July 07) to extend the brand even further. A long.and launching apple into a completely new market: mobile handsets. such was Apple's presence among accounting and finance departments. culminating in the release of one of the most highly anticipated products for many years . Even though Apple effectively stopped competing for corporate business during the 1990s. For example. Apple reports that half of all computer sales through its retail channel are to people new to Macintosh.So far. the Apple Mac is still used in some corporate environments. The first PC (the IBM PC) to run a Microsoft operating system (PC DOS) did not appear until 1981.

1984). due in 2009) will include features allowing Mac computers to fully support Microsoft Exchange.in the laptop bags of middle and senior managers in most large businesses.the Apple Mac. including the original Apple marketing strategy and the Apple Macintosh product introduction plan written by Regis McKenna. Also. It is now 25 years since the launch of the Apple Macintosh (on January 24. This will enable corporate IT departments to support business users who wish to use Apple Macs for their main email clients. and ultimately have Apple Macs on the desks of large businesses (or more probably . and . Over the next few years it seems likely that Apple will re-focus on the Corporate marketplace: Apple has announced that "Snow Leopard" (the next version of the Apple Mac operating system. Apple's strategy seems clear: to use the popularity of the iPhone to break back into large corporations. As we say.in mid-2008 Apple announced a software upgrade for the iPhone which allows iPhones to be fully supported by Microsoft Exchange email servers. but this is clearly where Apple's branding strategy is headed. The Macbook Air is also clearly aimed at this type of market). Microsoft continues to bring out advanced versions of Microsoft Office for Apple Mac.very significantly . New versions of Microsoft Office for Apple Mac still come out approximately 2 years before similar functionality is placed in the next version of Microsoft Office for the Windows operating system. no one in Apple will currently admit to such ambitions. Apple's Original Apple Macintosh Marketing Strategy Stanford University has published contemporary records and original documents of the marketing strategy for the Apple Macintosh launch in 1984. Having proven itself and already gained considerable . Corporate IT departments can now include iPhones as email clients.

The first Mac (above) had just 128KB of RAM and a 400KB 3.was revolutionary for the time.shown below . aired during the third quarter of Super Bowl XVIII on 22 January 1984. and audio to .5-inch floppy disk drive. and a 9-inch. Apple chose to announce the Apple Mac in one of the most famous-ever commercials. folders. It introduced the use of the mouse and features such as icons. The original Mac graphical user interface was revolutionary in its day. it share's the same screen size (9 inch) as the latest popular PC format: NetBooks. the Mac's industrial design . fonts. Interestingly. In addition to the innovative Apple Mac graphical user interface (based on concepts from Xerox PARC). 512x342 pixel monochrome display.popularity with the Apple II.

it was previously known as the PowerBook.       Mac mini. 15. and 17 inch variants. it was previously known as the PowerMac. MacBook Pro. it was previously known as the iBook. List of Macintosh models grouped by CPU type. introduced in January 2006. ultra-portable notebook. ultra-thin. consumer sub-desktop computer introduced in January 2005. consumer all-in-one desktop computer that was first introduced by Apple in 1998. Mac Pro. workstation-class desktop computer introduced in August 2006. MacBook Air. . and List of Macintosh models by case type The Mac mini. professional portable computer alternative to the MacBook.APPLE PRODUCTS Current products Mac and accessories See also: Timeline of Macintosh models. introduced in January 2008. consumer notebook introduced in 2006. available in white. available in 13. Its popularity helped revive the company's fortunes. low-cost desktop computer. MacBook. iMac.

. 2001. currently available in an 120 GB model. Time Capsule. Apple currently sells four variants of the iPod. portable media player first introduced in 2001. Mighty Mouse. It has evolved to include various models targeting the needs of different users. rack mounted.[84] Apple has partnered with Nike to offer the Nike+iPod Sports Kit enabling runners to synchronize and monitor their runs with iTunes and the Nike+ website. 2007. Apple sells a variety of computer accessories for Mac computers including the AirPort wireless networking products. with more than 100 million units shipped as of April 9. Cinema Display. and the Apple USB Modem. Xserve. the Apple Wireless Keyboard computer keyboard. Apple introduced the iPod digital music player. dual or quad core. iPod iPod Nano On October 23. dual processor 1U server.  iPod Classic (previously named iPod from 2001 to 2007). The iPod is the market leader in portable music players by a significant margin.

0 Manufacturer Apple Inc. iPod Shuffle. i iPod Touch 2nd generation iPod touch with iPhone OS 3. portable media player first introduced in 2005. The iPod Touch (trademarked and marketed as iPod touch) is a portable media player. currently available in 8.   iPod Nano. personal digital assistant. currently available in 1 and 4 GB models. and 32 GB models. iPod Touch. portable media player first introduced in September 2007. digital audio player first introduced in 2005. and Wi-Fi mobile . currently available in 8 and 16 GB models. 16.

[4] The iPod Touch adds the multi-touch graphical user interface to the iPod line and is available with 8. or generations. a built-in speaker. built-in Nike+. The iPod Nano has gone through four models.platform designed and marketed by Apple Inc. but with a 2-inch (diagonal) QVGA display and the "click wheel" found on the iPod Classic. featuring external volume controls. The product was launched on September 5. [1] It uses flash memory. or 32 GB of flash memory. was unveiled on September 9. a contoured back. since its introduction. It is the midrange model in Apple's iPod family. and Bluetooth support. 2007 at an event called The Beat Goes On. Supported audio formats   AAC (16 to 320 kbps) Protected AAC (from the iTunes Store) . 16. The first generation was introduced in 2005. iPod Nano 4th Generation iPod Nano The iPod Nano (marketed lowercase as iPod nano) is a portable media player designed and marketed by Apple Inc. 2008 at the Let's Rock keynote presentation. It also has access to Apple's App Store. The second generation iPod Touch. like the iPod Shuffle. It includes Apple's Safari web browser and is the first iPod with wireless access to the iTunes Store.

38 ounces). introduced on March 11.The iPod Shuffle is the smallest digital audio player ever produced by Apple .     MP3 (16 to 320 kbps. the three generations of the iPod Shuffle. Instead of storing data on a hard disk. 2005.7 grams (0. 2009. It was announced at the Macworld Conference & Expo on January 11. The iPod Shuffle (trademarked as iPod shuffle) is a digital audio player designed and marketed by Apple Inc. It is the budget model in Apple's iPod family. The current third generation model. it was the first iPod to use flash memory. weighs 10. including variable bitrate files) Audible (formats 2. 3 and 4) Apple Lossless AIFF WAV iPod Shuffle From left to right. using the tagline "life is random".

iPod Classic iPod Classic 6th generation The iPod Classic (trademarked as iPod classic and known before its sixth generation as simply the iPod) is a portable media player marketed by Apple Inc. .8-inch hard drive for storage. To date. there have been six generations of the iPod Classic. as well as a spin-off (the iPod Photo) that was later reintegrated into the main Classic line. All generations use a 1.

and $299 for the 16 GB version.[1] prior to this. at Apple's annual worldwide developers conference. the App Store surpassed one billion downloads. an iPod Classic was simply referred to as an iPod. 2007 for $499 (4 GB) and $599 (8 GB) with an AT&T contract. assisted-GPS navigation. and a price cut to $199 for the 8 GB version. 2009.5G quad band GSM and EDGE cellular phone with features found in hand held devices. 4. providing an incremental update to the . The software capabilities changed as well. running a scaled-down versions of Apple's Mac OS X (dubbed iPhone OS). The new version was visually different from its predecessor in that it eliminated the flat silver back. Steve Jobs announced that the iPhone 3G would be available on July 11. On April 24. or 16 GB of memory. with the release of the new iPhone came the release of Apple's App Store. which was available in both black and white. the store provided applications for download that were compatible with the iPhone. 2008.[88] This version added support for 3G networking. It also includes web-based and Dashboard apps such as Google Maps and Weather. Bluetooth. the iPhone 3GS was announced. Following complaints from many people.[86] The iPhone first became available on June 29. at WWDC 2008. with various Mac OS X applications such as Safari and Mail. and large antenna square for a curved glossy black or white back. [89] On June 8. a convergence of an Internetenabled smartphone and iPod.[86] The original iPhone combined a 2. Steve Jobs revealed the long anticipated[85] iPhone. The iPhone features a 3. 2008. the headphone jack was changed from a recessed jack to a flush jack to be compatible with more styles of headphones.5-inch (89 mm) touch screen display.The "Classic" retronym was introduced with the introduction of the sixth-generation iPod Classic on 5 September 2007. iPhone At the Macworld Conference & Expo in January 2007. 2009.[87] On June 9. 8. and Wi-Fi (both "b" and "g").

and a full featured headless TV system with full HD TV features. 2007 a 160 GB drive was released alongside the existing 40 GB model and on January 15. On May 31. The Apple TV originally incorporated a 40 GB hard drive for storage. includes outputs for HDMI and component video. either via Wi-Fi or a wired network. iPhone 3GS. Jobs demonstrated the Apple TV. a set-top video device intended to bridge the sale of content from iTunes with high-definition televisions. both with native Mini DisplayPort connections. Products & Services CinemaView HD TV and Data Displays Announced PR: Collins America announces a group of display and TV products engineered to radically expand the capabilities of today's Apple computer systems. The new products include 24" and 47" HD LCD displays. which allowed media to be purchased directly from the Apple TV. and plays video at a maximum resolution of 720p. as well as Mini DisplayPort connections both in an out. (previously known as the iTV).device including faster internal components. support for faster 3G speeds and video recording capability. currently available in 16 and 32 GB models. 2008 a software update was released. with one computer's iTunes library and streams from an additional four. . The device links up to a user's TV and syncs.   iPhone 3G. Apple TV At the 2007 Macworld conference. currently available in an 8 GB model.

and that Apple will continue to lead and define the path forward for consumer video entertainment. With Apple's implementation of Mini DisplayPort connectors on its computers. and includes easy-to-use onscreen controls. connecting by Mini DisplayPort. or data. and with HDMI on its Apple TV.CinemaView believes that tomorrow's graphics and video experiences simply are not going to be the same as yesterday's. Our CinemaView TV product turns a CinemaView display into a fullblown HD television system. connect your favorite TV peripherals by HDMI. An investment made into a display product to day should lead to many years of easy integration with your home video lifestyle. and routing USB 2.0 through the same cable from the Mac to the display's four port USB 2. Plug a 24" or 47" CinemaView display into the Mini DisplayPort output. . too. and an RF wireless remote. Inserting a CinemaView TV box between a Mac and either an Apple LED LCD Cinema Display or a CinemaView display turns any new Mac system into a complete HD home television system. The two new CinemaView displays have the 16:9 cinematic aspect ratio and 1920 x 1080 resolution that is well suited for viewing either movies. connect your Mac to the Mini DisplayPort input and your Apple TV to an HDMI input.0 hub. composite. these two interfaces define the future of Apple-centric video. HD TV. One of these displays makes a terrific companion to a Mac. in addition to enabling direct connection to both a Mac and an Apple TV. CinemaView TV has dual cable-ready HD tuners with picture-in-picture. or component links.

Much of the software Apple develops is bundled with its computers. email. an advanced effects composition program. the latest version being Mac OS X v10. Pages. and Learning Center online tutorials. there is Aperture for professional RAW-format photo processing. QuickTime media player. Apple also independently develops computer software titles for its Mac OS X operating system. and iWeb. iWork is available. and Software Update are available as free downloads for both Mac OS X and Windows. iSync. page layout and word processing.Software Apple develops its own operating system to run on Macs. MobileMe is a subscription-based internet suite that capitalizes on the ability to store personal data on an online server and thereby keep all web-connected devices in sync. Apple also offers a range of professional software titles. iPhoto. WebObjects.[94] . and Xsan. Safari web browser. a remote systems management application. a Storage Area Network file system. a comprehensive music toolkit and Shake. iMovie. For the professional creative market. GarageBand. Logic. Mac OS X. Apple Remote Desktop. Final Cut Studio. Java EE Web application server. and Numbers. iDisk. Apple also offers online services with MobileMe (formerly . backup. Groups. iTunes. Their range of server software includes the operating system Mac OS X Server.Mac) that bundles personal web pages. An example of this is the consumer-oriented iLife software package that bundles iDVD. a video production suite.6 Snow Leopard. For presentation. iTunes. which includes Keynote.

retrieving your media files may be a challenging experience. Whether you need to export your photos or movies for use in other applications or you just want to archive a part of your library. iPhoto To Disk allows flexible naming of your media files. iPhoto To Disk makes it easy. iWork.Announced at MacWorld Expo 2009. Did you spend time defining relevant names for your iPhoto events? Of course! Did you . You probably don't want the thousands of photos and movies in your library to all be exported to a single folder. iPhoto To Disk exports your media files to a well-structured folder hierarchy. but they are most probably meaningless (they typically depend on your camera settings). Software iPhoto to Disk Freeware Image Management Utility PR: If your iPhoto library contains thousands of photos and movies organized in hundreds of events.com allows iWork users to upload documents for sharing and collaboration. You can keep your original media file names. Using iPhoto To Disk you can automatically organize your export by "event" or by "year and event" in a hierarchical folder structure. That's where iPhoto To Disk can help.

Cupertino. Done! Headquarters Main article: Infinite Loop (street) Apple Inc. iPhoto To Disk is simple. To retrieve your media files.'s world corporate headquarters are located in the middle of Silicon Valley. The . This Apple campus has six buildings that total 850. choose your export preferences and click the "Export" button. drag your selection to the export basket.[114] In 2006.label your photos and movies with titles? Great! Then.000 m2) and was built in 1993 by Sobrato Development Cos. All features are available in a single window. 1 Infinite Loop.000 square feet (79. California. at 1 Infinite Loop.. with iPhoto To Disk.000 m2) assembled from various contiguous plots. you can use this valuable information to automatically rename the exported media files. select iPhoto events in your library. Apple Inc. as shown in the screenshot below. Apple announced its intention to build a second campus on 50 acres (200. Cupertino. CA.

depicts Sir Isaac Newton sitting under an apple tree. also in Cupertino. though. Apple discontinued the rainbow theme — supposedly at the insistence of recently returned . Janoff presented Jobs with several different monochromatic themes for the "bitten" logo. though it has been criticized for the claims of some more recent campaigns. and one theory states that the symbol references his discoveries of gravity (the apple) and the separation of light by prisms (the colors). Advertising Since the introduction of the Macintosh in 1984 with the 1984 Super Bowl commercial to the more modern 'Get a Mac' adverts. The original hand drawn logo features Sir Isaac Newton.6 km) east of the current campus. Almost immediately. While Jobs liked the logo. In 1998. he insisted it be in color. Another explanation exists that the bitten apple pays homage to the mathematician Alan Turing.Turing is regarded as one of the fathers of the computer. and Jobs immediately took a liking to it. particularly 2005 Power Mac ads and iPhone ads in Britain. the now-familiar rainbow-colored silhouette of an apple with a bite taken out of it. this was replaced by Rob Janoff’s “rainbow Apple”. with the roll out of the new iMac. will be about one mile (1. who committed suicide by eating an apple he had laced with cyanide. Logos Apple’s first logo. The rainbow colors of the logo are rumored to be a reference to the rainbow flag. as a way to humanize the company. as a homage to Turing's homosexuality. Apple has been recognized in the past for its efforts towards effective advertising and marketing for its products. designed by Jobs and Wayne.new campus.

the rainbow logo 2001 to 2003 onon Mac OS X used fromtheme it featuring packaging andPanther and late 1976replaced. also on startuntil replacedstill used and Newton and on earlyup of the in 1998 byoften appears in under the versions of MaciPhone.[citation generation products. various apple Panther. fifth themes. subsequent versions of . The "glass"themed The Apple logo. no specific color is prescribed throughout Apple's software and hardware line.Jobs — and began to use monochromatic themes. monochromeused from themed logo The The Aqua-2003 to maintained the original themed Applepresent. as packaging and iPod Nano. suchneeded] tree. The logo's shape is one of the most recognized brand symbols in the world. It is Isaac advertisements. used fromfirst appears "bitten" logo. It The rainbowsame shaped as Apple logo. identifies all Apple products and retail stores (the name "Apple" is not even present) and has been included as stickers in nearly all Macintosh and iPod packages through the years. video iPod. iPod monochrome various colors on fabled OS X beforeTouch. advertisements and all in 2003. However. nearly identical in shape to its previous rainbow incarnation.

and iPod. Slogans Apple's first slogan. "Byte into an Apple". From 1997–2002. Newton. Although the slogan has been retired. "iThink. YouTube. therefore iMac". Apple used the slogan Think Different in advertising campaigns.these products. MobileMe or any Mac OS X or Windows computer running iTunes onto an enhanced-definition or high-definition widescreen television. iMac ("hello (again)"). "Hello" was also used to introduce the original Macintosh. It is a small form-factor network appliance designed to play digital content originating from the iTunes store. marketed and sold by Apple. it is still closely associated with Apple. The slogan had a lasting impact on their image and revived their popularity with the media and customers. was used in 1998 to promote the iMac.[citation needed] Apple TV Apple TV on display pre-release at the Macworld 2007 conference Apple TV is a digital media receiver manufactured. and "Say hello to iPhone" has been used in iPhone advertisements. was coined in the late 1970s. Apple also has slogans for specific product lines — for example. Flickr. Apple TV can function as either a home theater-connected iPod device or a .

users can buy and rent movies.[2] Apple plans to continue offering new features through automatic software upgrades. Features AppleTV is a network device that allows consumers to use an HDTV set to view photos. Internet media services Apple TV offers basic media services with movie previews and YouTube videos. such as viewing favorites.[18] . by Apple CEO Steve Jobs. The devices started shipping on March 21. albums. Internet media services include the iTunes Store. play music and watch video that originates from an Internet media service or a local network. and music videos and subscribe to video and audio podcasts. A second version with a larger 160 GB hard disk started shipping on May 31. 2007. Consumers can browse and view YouTube videos and Flickr or MobileMe photo albums. songs. 2006. The Apple TV provides YouTube integration by receiving direct streams from YouTube. By connecting directly to the iTunes Store. or MobileMe.[16][17] A YouTube account is not required to browse and view YouTube videos. music and video content from a network-connected computer running iTunes. but it is good to configure for personalized options. YouTube. 2007. It was first announced at a special press event in San Francisco. This initial version shipped with 40 GB of storage. California on September 12. much of the content in high definition.[11] Apple TV includes enhanced remote control and AirTunes capabilities.digital media receiver.[10] Apple TV can also sync or stream photo. depending on the needs of the user. Flickr. buy television shows. leaving the door open to further utilization of its hardware capabilities and new software developments.

Apple TV can optionally be paired with one particular remote to prevent conflicts from . Jobs stated. movies. 2009. Movies and TV shows can be restricted based on rating as well as explicit music and podcasts."[19] Users can access the iTunes store directly through Apple TV to purchase movies. In addition. the default setting is unpaired which means any Apple Remote works with the device. [18] Apple TV will display the photos in a slide show. saving podcasts as favorites. The Ken Burns effect can also be configured for transitions. Apple TV became capable of acting as a pure standalone device.[26] Internet photos can be viewed from MobileMe and Flickr accounts.[6][31] Out of the box.[18] Remote control Apple TV comes with the standard Apple Remote. with automatic crossdissolve transitions.[20][21] Customers can also use Apple TV to rent regular or HDquality movies[22] Until mid-March. music. and "Purchase and Rental ".[23][24] Consumers can browse and view podcasts from the iTunes store. music videos.[27] Parental controls allow consumers to limit access to Internet media service content. We learned what people wanted was movies. and television shows.TWiT's Leo Laporte notes that the podcast support in the Apple TV puts podcasts on the same level as other media. movies.With the 'Take 2' software update announced by Steve Jobs at Macworld 2008. Internet media is split into 4 categories: "Internet Photos". "YouTube". no longer requiring a computer running iTunes on Mac OS X or Windows to stream or sync content to it. Each of the 4 categories is configured by a parental control of "Show". It is seen by industry experts as changing podcasts to video on demand services. "Hide" or "Ask" to prompt for a 4-digit preset code. "Apple TV was designed to be an accessory for iTunes and your computer. It was not what people wanted. "Podcasts". iTunes HD movies could only be purchased from Apple TV.[25] and this was substantiated by the fact that the standard podcast subscription process no longer applies with Apple TV.

in the App Store.[32] The remote control allows for adjustment of playback volume. etc).[38][39] Remote's touch and gesture features are similar to the multi-touch interface used on the iPhone and iPod Touch "Music" app.[40] The commands provided on the AppleTV handheld remote are: "play/pause".[34][35][36] The Apple TV can be programmed to recognize commands from virtually any infrared remote control. a free application that allows for a Wi-Fi-based remote control of the iTunes library on the Apple TV and computers of the Mac line using Apple's line of devices with iPhone OS 2.other IR-capable devices. Remote. Look and feel .0 (currently the iPhone and iPod Touch). pictures. There appears to be no way to discretely turn ON or OFF the device with any infrared codes or get to any sub-menu (music. movies. 2008. mainstream universal remotes have been updated for use with Apple TV and can be used to control volume. "-".[2][33][34] Because the Apple Remote is a standard infrared remote. "back". The use of multiple functions for individual buttons or infrared codes is problematic. "menu". but for music only. "+". and "next".[37] On July 10. If the unit is already in standby then any of the buttons on the remote appear to wake the unit. Pressing the menu button multiple times may not consistently get you to the main menu. The "play/pause" button will also send the unit into standby mode when held for approximately 5 seconds. especially for home automation/control systems and universal remotes. and it has been mentioned that in certain versions of software pressing and holding the menu button will get you to the main menu directly. however in newer versions of software you must be in the main menu for this to work. Apple released.

The left/right buttons are used to perform rewind and fast-forward functions while viewing video content. Apple TV presents an interface based on the Front Row software for Mac OS X 10.[55][56] These initial menu options then lead to other submenus.5 (Leopard) computers.The Apple TV's software is based on Front Row used on Mac OS X. includes bookmark functionality.[54] Apple TVs Content is organized into six groups (Movies. Songs. Apple TV software version 1. Podcasts.[57] Rear connectors including power. and is presented in the initial menu along with a "Settings" options option for Apple TV configuration.[57] The "Music" submenu offers similar options to those found on an iPod. Genres. but since then. and video podcasts. TV Shows. including movies. and Composers. Initially. as well as offering a shuffle option and listing available audiobooks. Apple TV periodically moves album art and content info on the TV display to prevent burn-in on video displays. including software updates. the "TV Shows" options allows the user to sort contents by show or date and the "Movies" option also allows the user to view movie trailers for new releases. While playing "audio-only" content such as music and audio podcasts. component video and audio. . Music. and Photos). HDMI. music videos. major Apple TV enhancements ("Take Two" and later) have not been included in the OS X version of Front Row.5 in late 2007. USB for firmware updates. and optical audio.0 was based on an enhanced OS X 10. presenting the available music sorted by Artist.[31] Aside from "Movies" and "TV Shows" content. animated album art is displayed on the side of the display for the contents of the selected category. YouTube. but also perform previous song/next song functionality when selecting audio-only content. As categories are selected with the remote.[18] The included Apple Remote is used to navigate through the menus by using the up or down buttons and selecting options with the play button.4 Front Row. All video content. Apple TV automatically bookmarks video content midstream to continue playback at a later time. TV shows. just as the Front Row software does on a Mac. Ethernet. Album. Apple TVs interface was merged back into OS X 10.

[1] Video and audio cables are not included with Apple TV. 2007) YouTube integration.7x7.09 kg (2. security updates. and keyboards)[67] infrared receiver HDMI Component Video.0 (officially for diagnostic use only.7x1. n wireless networking (AirPort)[1] 1080p/1080i 60/50 Hz (but maximum video resolution is 720p)[1] 720p 60/50 Hz[1] 576p/576i 50 Hz (PAL)[1] 480p/480i (480i is unofficially supported) 60 Hz[1][14] digital optical audio RCA analog stereo audio[1] Networking Output      Audio Power Dimensions Weight Software Updates[2] Built-in universal 48W power supply[1] 197x197x28 mm (7. g.0 GHz "Crofton" Processor[3] NVIDIA GeForce Go 7300 (64 MB VRAM)[66] 256 MB of 400 MHz DDR2 SDRAM[4] 40 or 160 GB hard disk[1][4]  Connectivity        USB 2.1 in)[1] 1. parental controls.1 (June 20. 10BASE-T/100BASE-T Ethernet 802.11 b.Processor Graphics Memory Hard drive Intel[1] Pentium M 1.4 lb)[1] 1.[68][69] . framework updates. mice. slideshow screensaver. though hackers have managed to allow connectivity of hard disks.

Security fixes. New view options. Apple TV standby mode. which had been described by Walt Mossberg before the release as "a modified version of the Mac operating . alternate audio and subtitles. buy TV Shows.[73] 2. Music videos in playlists. 2007) Apple TV Photo Streaming[71] 2. and enhanced parental controls.2 (October 2.[74] 2. 2009) Network Test[75] 2. Podcast directory of over one hundred thousand video and audio podcasts. On-The-Go playlists. 2008) Standalone iTunes Store features (directly from Apple TV through the Internet): rent standard and HD movies with Dolby Digital 5. Updated transport and chapter modes.[33][34] 2. Chapter selection.photo priority and browsing other iTunes stores.[44][45] show everything or only synced content. Content automatically syncs back to the user's computer. Movie description. Support for Remote application.[42] 2. MobileMe protected albums. Playlists. 2009) Remote app directional control.[70] iTunes 7. Third-party Remote Controls. Genius playlists. 2008) AirTunes Streaming from Apple TV. Play iTunes content on the audio system connected to the Apple TV via AirTunes. Podcasts browsable by video and audio. Movie browsing by actor and director. Flickr Search.4 (June 24.3 (June 29. Security fixes.1 (July 10.0 aka "Take Two" (Feb 12. Particular attention was paid to the device's operating system.Mac and Flickr galleries. TV show display tweaks. iPhoto events.1 (February 25. AirTunes receiver. 2008) Movie Wish List. View photos from . Music Volume Control. 2008) HD TV shows.3 (November 24.1 surround sound. Photo browser.[72] limited Internet radio support.[76] Modifications and hacks Hacks for the Apple TV were available within days of the unit's release. music and music videos.3.

[82] Limitations Functionality Concerns have been expressed about the lack of personal video recorder capabilities on Apple TV.[93] full Internet radio support. including rating items.[92] Industry experts feel that the Front Row interface is lacking standard iTunes functionality.[78] The end result was a group of "unofficial" commercial and community-supported add-ons for the Apple TV.[89] One such PVR idea says that Apple should buy TiVo and another mentions that Apple should go a step further and turn Apple TV into a fully-functional cable box.[79][80] Apple is not currently preventing users from installing Apple TV modifications.[35][92] and games. and the ability to download metadata from the IMDB. Major ATV hacks are updated on a regular basis and the Apple TV device can easily be re-hacked. USB hard drive access. support for enhanced remotes. enhanced codec support. but users are warned that applying hacks may void the product's warranty.[77] Users created solutions for remote access. something which the Apple TV interface does not provide today. web browsing.[68] Most Front Row plugins are minor and have not been updated to work with Apple TV 2.x.[90][91] Critics against the DVR/TiVo idea mention that the DVR market is dead and call the DVR the "PDA of the living room". synchronizing from more than one computer.[96] The website Apple TV Junkie was created to "list of all new HD & SD rental titles released on a daily basis".system".[97] . "My Movies"). not search local network movies (i. but a tuner and PVR capability can be applied on the connected home computer through a third party.[94] After the success of the iPhone SDK and the App Store.[31][58] Apple TV does not contain a TV tuner.[81] The Apple TV system software updates will typically remove any software hacks that are installed. enabling scheduled HDTV recordings to automatically appear on Apple TV for playback. The Movies "Search" feature only searches iTunes Store movies. installing a full blown copy of Mac OS X Tiger. it has been mentioned that Apple TV should provide the same functionality so that programmers can provide third party applications using Apple TVs interface without having to hack the Apple TV device.e. AwkwardTV reports 10 plugins out of 32 have been certified to be compatible with the "Take Two" update. The PVR software will connect to iTunes.

although 480i is unofficially supported as long as the TV supports component video connectivity. RCA/composite video and F/RF connectors are not included on the Apple TV device. Apple has teamed up with a third party to provide cables for its customers. The Apple Remote can control volume.[35] sometimes reaching 44° C (111° F). Apple TV comes with only a power cable. Hardware Apple TV content cannot be used with older televisions. but it is reserved for service use only. iPhone or Apple TV for playing. the movie must first be transferred to an iTunes-enabled computer on the network. you will in the future". Content which can be synced or streamed to Apple TV has to be on the local drive or an external drive directly connected to the iTunes-enabled computer. but any movie rented on Apple TV must be watched on Apple TV. and "if you do not have HDTV now.[112] A USB port is included on the device.[22][98] To copy a movie purchased on Apple TV to a video-enabled iPod or iPhone.[106][113] According to Apple.Movie rentals on iTunes can be transferred to any video-enabled iPod. this is normal.[114] There is no off button or function on the Apple TV (although there is a sleep function) so the only way to cool the Apple TV is to unplug it in sleep mode. Reviewers have noted that Apple is "future-proofing".[99] Apple TV/itunes is "not designed" to sync or stream content from networked drives to Apple TV. but only for Music on Apple TV. The Apple TV device runs "very hot". .