1

CPP Report

TITLED

‘Apple Pvt. Ltd.’

For fulfilling the requirement of the award of degree of BBA

Subject: CPP (IMS-306)

Under the supervision of

Dr.Rajan Kumar

Assistant professor

Submitted to -Submitted by-

The director Simran

MBA (3rdsemester)

Roll no -48

Institute of management studies

KurukshetraUniversity,Kurukshetra

September 2015
 2

DECLARATION

I, SIMRAN hereby declare that I have completed the report entitled assigned to me by the
Institute, to be submitted in the partial fulfillment of the MBA 5 Year Degree from Kurukshetra
University. Further, I declared that this is original work done by me and the information
provided in the study is authentic to the best of my knowledge and belief.

Signature
(Simran)
 3

ACKNOWLEDGEMENT

In this project, I have made an honest and dedicated attempt to make the Project Report so easy
to understand for a person who is willing to get knowledge about theApple Pvt. Ltd.

I am deeply indebted to my esteemed teacher & our chairman P because he gave me

opportunity of making project report. I am also thankful to my lecturer as well as my supervisor
(Guide) Dr.Rajan Sharma for their kind support & suggestion for making project report.

Signature

Simran

MBA 5yrs. 3rdsem.

Roll no. 48
 4

CONTENTS

CHAPTER TITLE OF CHAPTER PAGE NUMBER

NO

1 ASSEST MANAGEMENT COMPANY 6-14

SECTOR

1.1INTRODUCTION

1.2PLAYERS IN SECTOR

2 APPLE PRIVATE COMPANY 15-52

LIMITED

2.1INTRODUCTION

2.1.1 APPLE MISSION

2.1.2 HISTORY OF APPLE

2.1.3APPLE BOARD OF DIRECTORS

2.2 APPLE – AN OVERVIEW

2.3 APPLE ORGANISATIONAL STRUCTURE

2.4 APPLE PRODUCTS AND SERVICES

 5

2.5 OTHER INFORMATION ABOUT APPLE

3 ANALYSIS AND DISCUSSION 53-67

3.1FINANCIAL ANALYSIS OF APPLE

PROFIT AND LOSS ACCOUNT

KEY FINANCIAL RATIO OF FINANCE

BALANCE SHEET

3.2 AWARDS AND SERVICES

3.3 BUSINESS STRATERGIES

4 SWOT ANALYSIS 68-69

4.1SWOT ANALYSIS

4.2 PORTER’S FIVE FORCES ANALYSIS

FINDING FROM REPORT

 6

LEARNING FROM REPORT

SUGGESTIONS

REFERENCES

CONCLUSION

ANNEXTURE
 7

CHAPTER – 1

INFORMATION TECHNOLOGY SECTOR

1.1) Introduction

Information technology has been around for a long, long time. Basically as long as people have
been around, information technology has been around because there were always ways of
communicating through technology available at that point in time. There are 4 main ages that
divide up the history of information technology. Only the latest age (electronic) and some of the
electromechanical age really affects us today, but it is important to learn about how we got to the
point we are at with technology today.

Information technology (IT) is the application of computers and telecommunications

equipment to store, retrieve, transmit and manipulate data, often in the context of a business or
other enterprise.

The term is commonly used as a synonym for computers and computer networks, but it also
encompasses other information distribution technologies such as television and telephones.
Several industries are associated with information technology, including computer
hardware,software, electronics, semiconductors, internet, telecom
equipment, engineering,healthcare, e-commerce and computer services.

Humans have been storing, retrieving, manipulating and communicating information since
the Sumerians in Mesopotamia developed writing in about 3000 BC, but the terminformation
technology in its modern sense first appeared in a 1958 article published in theHarvard Business
Review; authors Harold J. Leavitt and Thomas L. Whisler commented that "the new technology
does not yet have a single established name. We shall call it information technology (IT)." Their
definition consists of three categories: techniques for processing, the application of statistical and
mathematical methods to decision-making, and the simulation of higher-order thinking through
computer programs.
 8

Based on the storage and processing technologies employed, it is possible to distinguish four
distinct phases of IT development: pre-mechanical (3000 BC – 1450 AD), mechanical (1450–
1840), electromechanical (1840–1940) and electronic (1940–present).[5] This article focuses on
the most recent period (electronic), which began in about 1940.

Ages

Premechanical

The premechanical age is the earliest age of information technology. It can be defined as the time
between 3000B.C. and 1450A.D. We are talking about a long time ago. When humans first started
communicating they would try to use language or simple picture drawings known as petroglyths
which were usually carved in rock. Early alphabets were developed such as the Phoenician
alphabet.
 9

Petroglyph

As alphabets became more popluar and more people were writing information down, pens and
paper began to be developed. It started off as just marks in wet clay, but later paper was created out
of papyrus plant. The most popular kind of paper made was probably by the Chinese who made
paper from rags.

Now that people were writing a lot of information down they needed ways to keep it all in
permanent storage. This is where the first books and libraries are developed. You’ve probably
heard of Egyptian scrolls which were popular ways of writing down information to save. Some
groups of people were actually binding paper together into a book-like form.

Also during this period were the first numbering systems. Around 100A.D. was when the first 1-9
system was created by people from India. However, it wasn’t until 875A.D. (775 years later) that
the number 0 was invented. And yes now that numbers were created, people wanted stuff to do
with them so they created calculators. A calculator was the very first sign of an information
processor. The popular model of that time was the abacus.

Mechanical

The mechanical age is when we first start to see connections between our current technology and
its ancestors. The mechanical age can be defined as the time between 1450 and 1840. A lot of new
technologies are developed in this era as there is a large explosion in interest with this area.
Technologies like the slide rule (an analog computer used for multiplying and dividing) were
invented. Blaise Pascal invented the Pascaline which was a very popular mechanical computer.
Charles Babbage developed the difference engine which tabulated polynomial equations using the
method of finite differences.
 10

Difference Engine

There were lots of different machines created during this era and while we have not yet gottent to a
machine that can do more than one type of calculation in one, like our modern-day calculators, we
are still learning about how all of our all-in-one machines started. Also, if you look at the size of
the machines invented in this time compared to the power behind them it seems (to us) absolutely
ridiculous to understand why anybody would want to use them, but to the people living in that time
ALL of thse inventions were HUGE.
 11

1.2) COMPETITIVE PARTNERS OF APPLE PVT. LTD.

MICROSOFT

Microsoft Corporation is the most valuable IT company in the world and it offers wide range of
software products, hardware devices and services. The company also offers training to computer
system integrators and developers. It was.founded in 1975, when Bill Gates and Paul Allen
developed an interpreter for programming language at Micro Instrumentation and Telemetry
Systems. Now it is headquartered in Redmond, Washington and it has 99,000 employees.

After the change in organisational structure in July 2013, the company has five operating
segments: Devices and Consumer hardware, Devices and Consumer licensing, Devices and
Consumer other, commercial licensing and commercial other. Devices and Consumer hardware
segment provides Xbox gaming and entertainment consoles and accessories, its subscription and
PC accessories and video game royalties. Deices and Consumer licensing segment offers
Windows OS and related software, their licensing, Windows original equipment manufacturing
 12

licensing and Microsoft office products for consumers. Resale of Windows store, Xbox live
transaction, Windows phone store and advertising are the operating areas of Devices and
Consumer other segment.

LENOVO

Lenovo Group Ltd. /lɛnˈoʊvoʊ/ is a Chinese multinational computer technology company with
headquarters in Beijing, China, and Morrisville, North Carolina, United States.[3] It designs,
develops, manufactures and sells personal computers, tablet
computers, smartphones, workstations, servers, electronic storage devices, IT management
software and smart televisions. In 2014, Lenovo was the world's largest personal computer
vendor by unit sales.[4] It markets the ThinkPad line of notebook computers and
the ThinkCentre line of desktops.[5]

Lenovo has operations in more than 60 countries and sells its products in around 160 countries.
Lenovo's principal facilities are in Beijing, Morrisville and Singapore, with research centers in
those locations, as well as Shanghai, Shenzhen, Xiamen, and Chengdu in China, and Yamato in
Kanagawa Prefecture, Japan. It operates a joint venture with EMC, LenovoEMC, which
sells network-attached storage solutions. It also has a joint venture with NEC, Lenovo NEC
Holdings, which produces personal computers for the Japanese market.

Hewlett-Packard

The Hewlett-Packard Company (HP) is an American global information technology

company headquartered in Palo Alto, California, United States. It develops and provides a wide
variety of hardware components as well as software and related services to consumers, small-
and medium-sized businesses (SMBs) and large enterprises, including customers in the
government, health and education sectors.

The company was founded in a one-car garage in Palo Alto by William "Bill" Redington
Hewlett and David "Dave" Packard starting with a line of electronic test equipment. HP was the
 13

world's leading PC manufacturer from 2007 to Q2 2013, after which Lenovo remained ranked
ahead of HP.[2][3][4] It specializes in developing and manufacturing computing, data storage, and
networking hardware, designing software and delivering services. Major product lines include
personal computing devices, enterprise and industry standard servers, related storage devices,
networking products, software and a diverse range of printers and other imaging products. HP
markets its products to households, small- to medium-sized businesses and enterprises directly as
well as via online distribution, consumer-electronics and office-supply retailers, software
partners and major technology vendors. HP also has services and consulting business around its
products and partner products.

ACER PVT. LTD.

Acer Inc. Acer

Inc. (/ˈeɪsər/; Chinese: 宏碁股份有限公司; pinyin: HóngqiGǔfènYǒuxiànGōngsī,
 14

lit.HongqiCorporation) (commonly known as Acer, stylized as acer, or formerly as acer) is

aTaiwanese multinational hardware and electronics corporation specializing in advanced
electronics technology and is headquartered in Xizhi, New Taipei City, Taiwan. Acer's products
include desktop and laptop PCs, tablet computers, servers, storage devices, displays, LED, LCD
and plasma televisions, smartphones and peripherals. It also providese-business services to
businesses, governments and consumers. In 2014 Acer was thefourth-largest personal computer
vendor in the world.[2] In the early 2000s, Acer implemented a new business model, shifting from
a manufacturer to a designer, marketer and distributor of products, while performing production
processes via contract manufacturers.[3] In addition to its core business, Acer owns the largest
franchised computer retail chain in Taipei, Taiwan.[4]

Dell

Dell Inc. is an American privately owned multinational computer technology company based
in Round Rock, Texas, United States, that develops, sells, repairs, and supports computers and
related products and services. Bearing the name of its founder, Michael Dell, the company is one
of the largest technological corporations in the world, employing more than 103,300 people
worldwide.[3]

Dell sells personal computers (PCs), servers, data storage devices, network switches,software,
computer peripherals, HDTVs, cameras, printers, MP3 players, and electronics built by other
manufacturers. The company is well known for its innovations in supply chain
management and electronic commerce, particularly its direct-sales model and its "build-to-order"
or "configure to order" approach to manufacturing—delivering individual PCs configured to
customer specifications.[4][5] Dell was a pure hardware vendor for much of its existence, but with
 15

the acquisition in 2009 of Perot Systems, Dell entered the market for IT services. The company
has since made additional acquisitions in storage and networking systems, with the aim of
expanding their portfolio from offering computers only to delivering complete solutions for
enterprise customers.[6][7]

Samsung

Samsung was founded by Lee Byung-chul in 1938 as a trading company. Over the next three
decades, the group diversified into areas including food processing, textiles, insurance, securities
and retail. Samsung entered the electronics industry in the late 1960s and the construction and
shipbuilding industries in the mid-1970s; these areas would drive its subsequent growth.
Following Lee's death in 1987, Samsung was separated into four business groups – Samsung
Group, ShinsegaeGroup, CJ Group and Hansol Group. Since 1990s, Samsung has increasingly
 16

globalized its activities and electronics, particularly mobile phones and semiconductors, have
become its most important source of income.

Notable Samsung industrial subsidiaries include Samsung Electronics (the world's largest
information technology company measured by 2012 revenues, and 4th in market
value),[2] Samsung Heavy Industries (the world's 2nd-largest shipbuildermeasured by 2010
revenues),[3] and Samsung Engineering and Samsung C&T(respectively the world's 13th and
36th-largest construction companies).[4] Other notable subsidiaries include Samsung Life
Insurance (the world's 14th-largest life insurance company),[5] Samsung Everland (operator of
Everland Resort, the oldesttheme park in South Korea)[6] and Cheil Worldwide (the world's 15th-
largest advertising agency measured by 2012 revenues).
 17

CHAPTER NO 2

APPLE PVT. LTD.

2.1) INTRODUCTION

Apple Inc. (commonly known as Apple) is an American multinational technology

company headquartered in Cupertino, California, that designs, develops, and sellsconsumer
electronics, computer software, and online services. Its best-knownhardware products are
the Mac personal computers, the iPod portable media player, the iPhone smartphone,
the iPad tablet computer, and the Apple Watch smartwatch. Apple's consumer software includes
the OS X and iOS operating systems, the iTunesmedia player, the Safari web browser, and
the iLife and iWork creativity and productivity suites. Its online services include the iTunes
Store, the iOS App Storeand Mac App Store, and iCloud.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to
develop and sell personal computers.[5] It was incorporated as Apple Computer, Inc. on January
3, 1977, and was renamed as Apple Inc. on January 9, 2007, to reflect its shifted focus towards
consumer electronics. Apple (NASDAQ: AAPL) joined the Dow Jones Industrial Average on
March 19, 2015.[6]

Apple is the world's second-largest information technology company by revenue afterSamsung

Electronics, the world's largest technology company by total assets, and the world's third-largest
mobile phone manufacturer. On November 25, 2014, in addition to being the largest publicly
traded corporation in the world by market capitalization, Apple became the first U.S. company to
be valued at over US$700 billion.[7] As of July 2015, Apple employs 115,000 permanent full-
time employees;[4]maintains 453 retail stores in sixteen countries;[1] and operates the online
Apple Store and iTunes Store, the latter of which is the world's largest music retailer.

Apple's worldwide annual revenue in 2014 totaled $182 billion for the fiscal yearending in
October 2014.[8] The company enjoys a high level of brand loyalty and, according to the 2014
 18

edition of the Interbrand Best Global Brands report, is the world's most valuable brand with a
valuation of $118.9 billion.[9] By the end of 2014, the corporation continued to receive
significant criticism regarding the labor practices of its contractors and its environmental and
business practices, including the origins of source materials.

The Company also sells various other application software including Final Cut Pro, Logic
Studio, Logic Pro and its FileMaker Pro database software. The Company manufactures the
Apple LED Cinema Display and Thunderbolt Display. The Company also sells a range of Apple-
branded and third-party Mac-compatible `and iOS-compatible peripheral products, including
printers, storage devices, computer memory, digital video and still cameras and various other
computing products and supplies. Apple TV allows customers to watch movies and television
shows on their high definition television. Content from iTunes, Netflix, YouTube and Flickr, as
well as music, photos, videos and podcasts from a Mac or Windows-based computer can also be
wirelessly streamed to a television throughApple TV.
 19

Apple was founded as a partnership on April Fool’s Day 1976 by three people who originally
worked at Atari: Steven Gary Wozniak (1950- ), Steven Paul Jobs (1955-2011), and Ronald
Gerald Wayne (1934- ). Apple was incorporated on January 3, 1977, without Wayne, who sold
his shares back for $800. Wayne wrote the Apple I manual, drafted the partnership agreement,
and drew the first Apple logo.h

To raise capital for their new company, Steve Jobs sold his Volkswagen van and Steve Wozniak
sold his Hewlett-Packard scientific calculator for $500.h

Steve Wozniak credits entrepreneur and investor Mike Markkula (1942- ) for the success of
Apple. He provided initial funding and managerial support, and he served as chairman for Apple
from 1985 to 1997. He wrote several early software programs for the Apple II and freely
distributed them under the alias “Johnny Appleseed.”g

For the first 30 years, Apple was called Apple Computer, Inc. On January 9, 2007, it removed
the word “Computer” to reflect its expanding electronic market.c

Steve Jobs set the list price of the original 4K Apple 1 at $666.66 ($2,572 in 2011 dollars),
doubling the cost of manufacturing. Fundamentalist Christians were quick to complain that 666
was the “mark of the beast.”h

Apple’s first computer, the Apple 1 (1976), did not include a keyboard, monitor, or case and was
basically an assembled circuit board. The Apple II was introduced on April 16, 1977, and has
been widely credited with popularizing the home computer.h

In 2010, Apple surpassed Microsoft to become the most valuable technology company in the
world. In 2010, Apple was valued at $222.12 billion, while Microsoft was valued at $219.18
billion. In August 2011, Apple pushed past Exxon as the most valuable public company in the
world.f,l

In July 2011, the U.S. Treasury had an operating cash balance of $73.7 billion. Apple, however,
reported its reserves higher than the government, at $76.4 billion. While the U.S. is spending
around $200 billion more than it collects in revenue every month, Apple, on the other hand, is
making money.b
 20

Ronald Wayne, one of the original founders of Apple Inc., designed the first logo for Apple,
which was a pen-and-ink drawing of Sir Isaac Newton leaning against an apple 1tree with a
portion of a William Wordsworth poem: “Newton . . . . A mind forever voyaging though strange
seas of thought . . . alone.” Jobs thought the logo was “too cerebral” and a single apple was
chosen with a bite (byte), partly to prevent it from looking like a cherry tomato.h

Jean-Louise Gassee (1944- ), former executive of Apple Computer, suggested that the Apple
logo is a symbol of lust and knowledge, “bitten into, all crossed with the colors of the rainbow in
the wrong order. You couldn’t dream of a more appropriate logo: lust, knowledge, hope, and
anarchy.” In 1997, Jobs replaced the rainbow color of the apple logo with solid white.h

Apple generated approximately $625 of revenue from each of the 40 million iPhones it sold in
2009. It generated $164 of revenue for every iPod sold, $1,279 for every Mac, and $665 for
every iPad.

Most of Apple’s annual revenue (approximately $65 billion) is generated from the products
Apple has invented during the last 10 years, such as iPods, iPhones, iPads, and iTunes. Almost
half of its annual revenue, or $30 billion, comes from products invented in the past 4 years.c

At the time, Apple’s initial public offering on December 12, 1980, was the largest IPO since the
Ford Motor Company went public in 1956. It sold out in minutes. Apples shares rose 32%,
making 40 Apple employees instant millionaires.g

iTunes, Apple’s online music, video, and app store, generated sales of $4 billion in 2010. That’s
over $1 billion more than one of the world’s largest music companies, Warner Music Group.d

In 1983, Apple entered the Fortune 500 at #411 after being in existence for only five years,
making it the fastest growing company in history.h

Apple stores each sell an average of $93,150 worth of products every day, which is equivalent to
$3,900 an hour or $65 a minute every day of the year.a

In 2009, Apple sold 40 million iPhones. That’s 4,583 sold per hour, 76 per minute, or 1.27 per
second. The iPhone is sold in 89 countries.a

In 1989, the Macintosh Portable became Apple’s first “portable” Mac computer.g
 21

In 1984, the Macintosh was introduced by the famous “1984” commercial, which showed a
young, female rebel (Apple) striking a blow against corporate “Big Brother” (presumably IBM).h

Today, twice as much revenue is generated from Apple’s hand-held devices and music than from
Apple computers.a

In 2010, a British newspaper reported sweatshop conditions at an iPod factory in China. Apple
also admitted to using child labor.j

Environmentalists have criticized Apple for not providing a full-fledged computer recycling
program, unlike its competitors.e

Apple Corp, the Beatles’ record company, has repeatedly taken Apple Computer to court over
trademark infringement. The first time was in 1978, shortly after Apple Computer was founded
in 1976. The parties settled in 1981, on the contingency that Apple Computer would never enter
the music industry. However, Apple Corp again took the computer giant to court in 1989 when
Apple Computer introduced computers capable of music playback, and then again in 2003 after
the iPod and iTunes hit the market in 2001 and 2002, respectively. The companies ultimately
reached an agreement concerning the use of the word “Apple” in 2007.

iPhones account for 39% of Apple’s overall revenue.c

Steve Wozniak (a.k.a. “Woz” and the “Wizard of Woz”) designed and built the first Apple
computers. Even though he left Apple in 1985 to start his own company, he is still on the payroll
of Apple and sometimes represents the company at events. According to Wozniak, “Steve [Jobs]
didn’t know very much about electronics.”g

2.1.2) APPLE MISSION

It was widely reported that a famous quote from Steve Jobs in the 1980's was the Apple company
mission statement: "Man is the creator of change in this world. As such he should be above
systems and structures, and not subordinate to them."

The "official" mission statement on the Apple corporation website, however, is not really a
mission statement at all, but rather a list of products and past accomplishments. As stated,
 22

Apple's "mission" is…

"Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork
and professional software. Apple leads the digital music revolution with its iPods and iTunes
online store.

Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and has
recently introduced iPad 2 which is defining the future of mobile media and computing devices."

Apple ends its press releases with a statement that resembles what a traditional mission statement
is expected to be…

"Apple is committed to bringing the best personal computing experience to students, educators,
creative professionals and consumers around the world through its innovative hardware, software
and Internet offerings."

2.1.3) HISTORY OF APPLE

1969–1984: Jobs and Wozniak[edit]

Pre-foundation[edit]

Garage of Steve Jobs' parents' home in Los Altos, California

Steve Jobs and Steve Wozniak had withdrawn from Reed College and UC Berkeley, respectively
by 1975. Wozniak designed a video terminal that he could use to log on to the minicomputers at
Call Computer. Alex Kamradt commissioned the design and sold a small number of them
through his firm. Aside from their interest in up-to-date technology, the impetus for "the two
 23

Steves" seems to have had another source. In his essay From Satori to Silicon Valley (published
1986), cultural historianTheodoreRoszak made the point that the Apple Computer emerged from
within the West Coast counterculture and the need to produce print-outs, letter labels, and
databases. Roszak offers a bit of background on the development of the two Steves’s prototype
models.

In 1976, Wozniak started attending meetings of the Homebrew Computer Club. New
microcomputers such as the Altair 8800and the IMSAI inspired him to build a microprocessor
into his video terminal and have a complete computer.

At the time the only microcomputer CPUs generally available were the $179 Intel 8080 ($785.00
in present-day terms[12]), and the $170 Motorola 6800 ($745.00 in present-day terms[12]).
Wozniak preferred the 6800, but both were out of his price range. So he watched, and learned,
and designed computers on paper, waiting for the day he could afford a CPU.

When MOS Technology released its $20 ($83.00 in present-day terms[12]) 6502 chip in 1976,
Wozniak wrote a version of BASIC for it, then began to design a computer for it to run on. The
6502 was designed by the same people who designed the 6800, as many in Silicon Valley left
employers to form their own companies. Wozniak's earlier 6800 paper-computer needed only
minor changes to run on the new chip.

Wozniak completed the machine and took it to Homebrew Computer Club meetings to show it
off. At the meeting, Wozniak met his old friend Jobs, who was interested in the commercial
potential of the small hobby machines.

The Apple I was sold as an assembled circuit board and lacked basic features such as a keyboard,
monitor, and case. The owner of this unit added a keyboard and a wooden case.
 24

The very first Apple Computer logo, drawn byRonald Wayne, depictsIsaac Newton under an
apple tree.

Created by Rob Janoffin 1977, the Apple logo with the rainbow scheme was used from April of
that year[13] until August 26, 1999. Steve Jobs has asserted the apple logo was inspired by the
story of his childhood.

Steve Jobs and Steve Wozniak had been friends for some time, having met in 1971, when their
mutual friend, Bill Fernandez, introduced 21-year-old Wozniak to 16-year-old Jobs. They began
their partnership when Wozniak, a talented, self-educated electronics engineer, began
constructing boxes which enabled one to make long-distance phone calls at no cost, and sold
several hundred models.[14] Later, Jobs managed to interest Wozniak in assembling a computer
machine and selling it.

Jobs approached a local computer store, The Byte Shop, who said they would be interested in the
machine, but only if it came fully assembled. The owner, Paul Terrell, went further, saying he
would order 50 of the machines and pay US $500 ($2.07 thousand in present-day terms[12]) each
 25

on delivery.[15] Jobs then took the purchase order that he had been given from the Byte Shop to
Cramer Electronics, a national electronic parts distributor, and ordered the components he
needed to assemble the Apple I Computer. The local credit manager asked Jobs how he was
going to pay for the parts and he replied, "I have this purchase order from the Byte Shop chain of
computer stores for 50 of my computers and the payment terms are COD. If you give me the
parts on a net 30-day terms I can build and deliver the computers in that time frame, collect my
money from Terrell at the Byte Shop and pay you."[16][17]

The credit manager called Paul Terrell who was attending an IEEE computer conference at
Asilomar in Pacific Grove and verified the validity of the purchase order. Amazed at the tenacity
of Jobs, Terrell assured the credit manager if the computers showed up in his stores Jobs would
be paid and would have more than enough money to pay for the parts order. The two Steves and
their small crew spent day and night building and testing the computers and delivered to Terrell
on time to pay his suppliers and have a tidy profit left over for their celebration and next order.
Steve Jobs had found a way to finance his soon-to-be multimillion-dollar company without
giving away one share of stock or ownership.

The machine had only a few notable features. One was the use of a TV as the display system,
whereas many machines had no display at all. This was not like the displays of later machines,
however; text was displayed at 60 characters per second. However, this was still faster than the
teleprinters used on contemporary machines of that era. The Apple I also included bootstrap code
on ROM, which made it easier to start up. Finally, at the insistence of Paul Terrell, Wozniak also
designed a cassette interface for loading and saving programs, at the then-rapid pace of
1200 bit/s. Although the machine was fairly simple, it was nevertheless a masterpiece of design,
using far fewer parts than anything in its class, and quickly earning Wozniak a reputation as a
master designer.

Joined by another friend, Ronald Wayne, the three started to build the machines. Using a variety
of methods, including borrowing space from friends and family, selling various prized items
(like calculators and a VW bus) and scrounging, Jobs managed to secure the parts needed while
Wozniak and Wayne assembled them. But the owner of the Byte Shop was expecting complete
computers, not just printed circuit boards. The boards still being a product for the customers
Terrell still paid them.[18] Eventually 200 of the Apple I's were built.Steve Jobs and Steve
 26

Wozniak had withdrawn from Reed College and UC Berkeley, respectively by 1975. Wozniak
designed a video terminal that he could use to log on to the minicomputers at Call Computer.
Alex Kamradt commissioned the design and sold a small number of them through his firm. Aside
from their interest in up-to-date technology, the impetus for "the two Steves" seems to have had
another source. In his essay From Satori to Silicon Valley (published 1986), cultural
historianTheodoreRoszak made the point that the Apple Computer emerged from within the
West Coast counterculture and the need to produce print-outs, letter labels, and databases.
Roszak offers a bit of background on the development of the two Steves’s prototype models.

In 1976, Wozniak started attending meetings of the Homebrew Computer Club. New
microcomputers such as the Altair 8800and the IMSAI inspired him to build a microprocessor
into his video terminal and have a complete computer.

At the time the only microcomputer CPUs generally available were the $179 Intel 8080 ($785.00
in present-day terms[12]), and the $170 Motorola 6800 ($745.00 in present-day terms[12]).
Wozniak preferred the 6800, but both were out of his price range. So he watched, and learned,
and designed computers on paper, waiting for the day he could afford a CPU.

When MOS Technology released its $20 ($83.00 in present-day terms[12]) 6502 chip in 1976,
Wozniak wrote a version of BASIC for it, then began to design a computer for it to run on. The
6502 was designed by the same people who designed the 6800, as many in Silicon Valley left
employers to form their own companies. Wozniak's earlier 6800 paper-computer needed only
minor changes to run on the new chip.

Wozniak completed the machine and took it to Homebrew Computer Club meetings to show it
off. At the meeting, Wozniak met his old friend Jobs, who was interested in the commercial
potential of the small hobby machines.
 27

The Apple I was sold as an assembled circuit board and lacked basic features such as a keyboard,
monitor, and case. The owner of this unit added a keyboard and a wooden case.

The very first Apple Computer logo, drawn byRonald Wayne, depictsIsaac Newton under an
apple tree.

Created by Rob Janoffin 1977, the Apple logo with the rainbow scheme was used from April of
that year[13] until August 26, 1999. Steve Jobs has asserted the apple logo was inspired by the
story of his childhood.

Steve Jobs and Steve Wozniak had been friends for some time, having met in 1971, when their
mutual friend, Bill Fernandez, introduced 21-year-old Wozniak to 16-year-old Jobs. They began
their partnership when Wozniak, a talented, self-educated electronics engineer, began
constructing boxes which enabled one to make long-distance phone calls at no cost, and sold
several hundred models.[14] Later, Jobs managed to interest Wozniak in assembling a computer
machine and selling it.
 28

Jobs approached a local computer store, The Byte Shop, who said they would be interested in the
machine, but only if it came fully assembled. The owner, Paul Terrell, went further, saying he
would order 50 of the machines and pay US $500 ($2.07 thousand in present-day terms[12]) each
on delivery.[15] Jobs then took the purchase order that he had been given from the Byte Shop to
Cramer Electronics, a national electronic parts distributor, and ordered the components he
needed to assemble the Apple I Computer. The local credit manager asked Jobs how he was
going to pay for the parts and he replied, "I have this purchase order from the Byte Shop chain of
computer stores for 50 of my computers and the payment terms are COD. If you give me the
parts on a net 30-day terms I can build and deliver the computers in that time frame, collect my
money from Terrell at the Byte Shop and pay you."[16][17]

The credit manager called Paul Terrell who was attending an IEEE computer conference at
Asilomar in Pacific Grove and verified the validity of the purchase order. Amazed at the tenacity
of Jobs, Terrell assured the credit manager if the computers showed up in his stores Jobs would
be paid and would have more than enough money to pay for the parts order. The two Steves and
their small crew spent day and night building and testing the computers and delivered to Terrell
on time to pay his suppliers and have a tidy profit left over for their celebration and next order.
Steve Jobs had found a way to finance his soon-to-be multimillion-dollar company without
giving away one share of stock or ownership.

The machine had only a few notable features. One was the use of a TV as the display system,
whereas many machines had no display at all. This was not like the displays of later machines,
however; text was displayed at 60 characters per second. However, this was still faster than the
teleprinters used on contemporary machines of that era. The Apple I also included bootstrap code
on ROM, which made it easier to start up. Finally, at the insistence of Paul Terrell, Wozniak also
designed a cassette interface for loading and saving programs, at the then-rapid pace of
1200 bit/s. Although the machine was fairly simple, it was nevertheless a masterpiece of design,
using far fewer parts than anything in its class, and quickly earning Wozniak a reputation as a
master designer.

Joined by another friend, Ronald Wayne, the three started to build the machines. Using a variety
of methods, including borrowing space from friends and family, selling various prized items
(like calculators and a VW bus) and scrounging, Jobs managed to secure the parts needed while
 29

Wozniak and Wayne assembled them. But the owner of the Byte Shop was expecting complete
computers, not just printed circuit boards.

Apple II[edit]
Main article: Apple II series

Wozniak had already moved on from the Apple I. Many of the design features of the I were due
to the limited amount of money they had to construct the prototype, but with the income from the
sales he was able to start construction of a greatly improved machine, the Apple II; it was
presented to the public at the first West Coast Computer Faire on April 16 and 17, 1977. On the
first day of exhibition, Jobs introduced Apple II to a Japanese chemist named Toshio Mizushima
who became the first authorized Apple dealer in Japan.

The main difference internally was a completely redesigned TV interface, which held the display
in memory. Now not only useful for simple text display, the Apple II included graphics, and,
eventually, color. Jobs meanwhile pressed for a much improved case and keyboard, with the idea
that the machine should be complete and ready to run out of the box. This was almost the case
for the Apple I machines sold to The Byte Shop, but one still needed to plug various parts
together and type in the code to run BASIC.

Building such a machine was going to be financially burdensome. Jobs started looking for cash,
but Wayne was somewhat gun-shy due to a failed venture four years earlier, and eventually
dropped out of the company. Banks were reluctant to lend Jobs money; the idea of a computer
for ordinary people seemed absurd at the time. Jobs eventually met Mike Markkula who co-
signed a bank loan for US$250,000, and the three formed Apple Computer on April 1,
1976.[1] The name Apple was chosen because the company to beat in the technology industry at
the time was Atari, and Apple Computer came before Atari alphabetically and thus also in the
phone book. Another reason was that Jobs had happy memories of working on an Oregon apple
farm one summer.[19]

With both cash and a new case design in hand thanks to designer Jerry Manock, the Apple II was
released in 1977 and was one of the three "1977 Trinity" computers generally credited with
creating the home computer market (the other two being the Commodore PET and the Tandy
Corporation TRS-80).[20] Millions were sold well into the 1980s. A number of different models
 30

of the Apple II series were built, including the Apple IIe and Apple IIGS, which continued in
public use for nearly two decades thereafter.

Apple III[edit]
Main article: Apple III

Apple III

While the Apple II was already established as a successful business-ready platform because of
Visicalc, Apple was not content. The Apple III was designed to take on the business
environment. The Apple III was released on May 19, 1980.

The Apple III was a relatively conservative design for computers of the era. However, Steve Jobs
did not want the computer to have a fan; rather, he wanted the heat generated by the electronics
to be dissipated through the chassis of the machine, forgoing the cooling fan.

Unfortunately, the physical design of the case was not sufficient to cool the components inside it.
By removing the fan from the design, the Apple III was prone to overheating. This caused
the integrated circuit chips to disconnect from the motherboard. Customers who contacted Apple
customer service were told to "raise the computers six inches in the air, and then let go", which
would cause the ICs to fall back into place.

Thousands of Apple III computers were recalled and, although a new model was introduced in
1983 to rectify the problems, the damage was already done.
 31

Apple IPO[edit]
In the July 1980 issue of KilobaudMicrocomputing, publisher Wayne Green stated that "the best
consumer ads I've seen have been those by Apple. They are attention-getting, and they must be
prompting sale."[21] In August, the Financial Times reported that

Apple Computer, the fast growing Californian manufacturer of small computers for the
consumer, business and educational markets, is planning to go public later this year. [It] is the
largest private manufacturer in the U.S. of small computers. Founded about five years ago as a
small workshop business, it has become the second largest manufacturer of small computers,
after the Radio Shack division of the Tandy company.[22]

On December 12, 1980, Apple launched the Initial Public Offering of its stock to the investing
public. When Apple went public, it generated more capital than any IPO since Ford Motor
Company in 1956 and instantly created more millionaires (about 300) than any company in
history.[23] Several venture capitalists cashed out, reaping billions in long-term capital gains.

In January 1981, Apple held its first shareholders meeting as a public company in the Flint
Center, a large auditorium at nearby De Anza College, which is often used for symphony
concerts. (Previous meetings were held quietly in smaller rooms, because there had only been a
few shareholders.) The business of the meeting had been planned (or choreographed) so that the
voting could be staged in 15 minutes or less. In most cases, voting proxies are collected by mail
and counted days or months before a meeting. In this case, after the IPO, many shares were in
new hands.

Steve Jobs started his prepared speech, but after being interrupted by voting several times, he
dropped his prepared speech and delivered a long, emotionally charged talk about betrayal, lack
of respect, and related topics.[citation needed]

The IBM PC[edit]

By August 1981 Apple was among the three largest microcomputer companies, perhaps having
replaced Radio Shack as the leader.[24] IBM entered the personal computer market that month
with the IBM PC,[25] but Apple had many advantages. While IBM began with one
microcomputer, little available hardware or software, and a couple of hundred dealers, Apple had
five times as many dealers in the US and an established international distribution network. The
 32

Apple II had an installed base of more than 250,000 customers, and hundreds of independent
developers offered software and peripherals; at least ten databases and ten word processors were
available, while the PC had no databases and one word processor.[26] After examining a PC and
finding it unimpressive, Apple confidently purchased a full-page advertisement in The Wall
Street Journal with the headline "Welcome, IBM. Seriously". Microsoft head Bill Gates was at
Apple headquarters the day of IBM's announcement and later said "They didn't seem to care. It
took them a full year to realize what had happened".[25]

By 1983 the PC surpassed the Apple II as the best-selling personal computer.[27] By 1984 IBM
had $4 billion in annual PC revenue, more than twice that of Apple and as much as the sales of it
and the next three companies combined,[28] and a Fortune survey found that 56% of American
companies with personal computers used IBM PCs, compared to Apple's 16%.[29]

1985: Jobs leaves Apple[edit]

Sculley and Jobs' visions for the company greatly differed. The former favored open
architecture computers like the Apple II, sold to education, small business, and home markets
less vulnerable to IBM. Jobs wanted the company to focus on the closed architecture Macintosh
as a business alternative to the IBM PC. President and CEO Sculley had little control over
Chairman of the Board Jobs' Macintosh division; it and the Apple II division operated like
separate companies, duplicating services.[44] Although its products provided 85% of Apple's sales
in early 1985, the company's January 1985 annual meeting did not mention the Apple II division
or employees. Many left including Wozniak, who stated that the company had "been going in the
wrong direction for the last five years" and sold most of his stock.[45]

The Macintosh's failure to defeat the PC strengthened Sculley's position in the company. In June
1985, the board of directors sided with Sculley and Jobs was stripped of all duties. Jobs, while
taking the position of Chairman of the firm, had no influence over Apple's direction and
subsequently resigned. Sculley reorganized the company, unifying sales and marketing in one
division and product operations and development in another.[46][44] In a show of defiance at being
set aside by Apple Computer, Jobs sold all but one of his 6.5 million shares in the company for
$70 million. Jobs then acquired the visual effects house, Pixar for $5M ($10.8 million in present-
day terms[12]). He also went on to found NeXT Inc., a computer company that built machines
with futuristic designs and ran the UNIX-derived NeXTstep operating system.
 33

NeXTSTEPwouldeventually be developed into Mac OS X. While not a commercial success, due

in part to its high price, the NeXT computer would introduce important concepts to the history of
the personal computer (including serving as the initial platform for Tim Berners-Lee as he was
developing the World Wide Web).[47]

1985–1997: Sculley, Spindler, Amelio[edit]

Early-mid-1990s[edit]
In the late 1980s, Apple's fiercest technological rivals were the Amiga and Atari ST platforms.
But computers based on the IBM PC were far more popular than all three, and by the 1990s, they
finally had a comparable GUI thanks to Windows 3.0, and were out-competing Apple.

Apple's response to the PC threat was a profusion of new Macintosh lines

including Quadra, Centris, and Performa. Unfortunately, these new lines were marketed poorly
by what was now "arguably one of the worst-managed companies in the industry".[55] For one,
there were too many models, differentiated by very minor graduations in their tech specs. The
excess of arbitrary model numbers confused many consumers and hurt Apple's reputation for
simplicity. Apple's retail resellers like Sears and CompUSA often failed to sell or even
competently display these Macs. Compounding matters was the fact that, although the machines
were cheaper than a comparable PC (when taken into account all the components built-in which
had to be added to the 'bare bones PC'), the poor marketing gave the impression that the
 34

machines were more expensive.[citation needed] Inventory grew as Apple consistently underestimated
demand for popular models and overestimated demand for others.[55]

In 1991, Apple partnered with long-time competitor IBM and Motorola to form the AIM
alliance. The ultimate goal was to create a revolutionary new computing platform, known
as PReP, which would use IBM and Motorola hardware and Apple software. As the first step
toward the PReP platform, Apple started the Power Macintosh line in 1994,
using PowerPC processors from Motorola and IBM. These processors used a RISC architecture,
which differed substantially from the Motorola 680X0 series that were used by all previous
Macs. Parts of Apple's operating system software were rewritten so that most software written
for older Macs could run in emulation on the PowerPC series.[citation needed] Apple also refused
IBM's offer to purchase the company, but later unsuccessfully sought another offer from
IBM,[56] and at one point was "hours away" from an acquisition by Sun Microsystems.[55][57]

In addition to computers, Apple has also produced consumer devices. In 1993, Apple released
the Newton, an early personal digital assistant (PDA). It defined and launched the PDA category
and was a forerunner and inspiration of devices such as Palm Pilot and Pocket PC.[citation needed]

During 1995, a decision was made to (officially) start licensing the Mac OS and Macintosh
ROMs to 3rd party manufacturers who started producing Macintosh “clones”. This was done in
order to achieve deeper market penetration and extra revenue for the company. This decision
lead to Apple having over a 10% market share until 1997 when Steve Jobs was re-hired as
interim CEO to replace Gil Amelio. Jobs promptly found a loophole in the licensing contracts
Apple had with the clone manufacturers and terminated the Macintosh OS licensing program
ending the Macintosh clone era. The result of this action was that Macintosh computer market
share quickly fell from 10% to around 3%.

In 1996, the struggling NeXT company beat out Be Inc.'s BeOS in its bid to sell its operating
system to Apple. Apple purchased Steve Jobs' company, NeXT on December 10, 1996, and its
NeXTstep operating system. This would not only bring Steve Jobs back to Apple's management,
but NeXT technology would become the foundation of the Mac OS X operating system.

1997–2001: Apple's comeback[edit]

 35

Return of Steve Jobs[edit]

On July 9, 1997, Gil Amelio was ousted as CEO of Apple by the board of directors. Jobs stepped
in as the interim CEO to begin a critical restructuring of the company's product line. He would
eventually become CEO and served in that position until August 2011. On August 24, 2011
Steve Jobs resigned his position as chief executive officer of Apple before his long battle with
pancreatic cancer took his life on October 5, 2011.[58]

On November 10, 1997, Apple introduced the Apple Store, an online retail store based upon
the WebObjects application server the company had acquired in its purchase of NeXT. The new
direct sales outlet was also tied to a new build-to-order manufacturing strategy.[59][60]

iMac, iBook, and Power Mac G4[edit]

The original iMac

While discontinuing Apple's licensing of its operating system to third-party computer

manufacturers, one of Jobs's first moves as new acting CEO was to develop the iMac, which
bought Apple time to restructure. The original iMac integrated a CRT display and CPU into a
streamlined, translucent plastic body. The line became a sales smash, moving about one million
units each year. It also helped re-introduce Apple to the media and public, and announced the
company's new emphasis on the design and aesthetics of its products.

In 199
 36

9, Apple introduced the Power Mac G4, which utilized the Motorola-made PowerPC 7400
containing a 128-bit instruction unit known as AltiVec, its flagship processor line. Also that year,
Apple unveiled the iBook, its first consumer-oriented laptop that was also the first Macintosh to
support the use of Wireless LAN via the optional AirPort card that was based on the 802.11b
standard; it helped popularize the use of Wireless LAN technology to connect computers to
networks.

Mac OS X[edit]
Main article: Mac OS X

Company headquarters on Infinite Loop in Cupertino

In 2001, Apple introduced Mac OS X, an operating system based on NeXT's NeXTstep and
incorporating parts of theFreeBSD kernel.[65] Aimed at consumers and professionals alike, Mac
OS X married the stability, reliability and security ofUnix with the ease of a completely
overhauled user interface. To aid users in transitioning their applications from Mac OS 9, the
new operating system allowed the use of Mac OS 9 applications through
the Classic environment. Apple's Carbon API also allowed developers to adapt their Mac OS 9
software to use Mac OS X's features.

Retail stores[edit]
Main article: Apple Store

In May 2001, after much speculation, Apple announced the opening of a line of Apple retail
stores, to be located throughout the major U.S. computer buying markets. The stores were
designed for two primary purposes: to stem the tide of Apple's declining share of the computer
market and to respond to poor marketing of Apple products at third-party retail outlets.
 37

2001–2007: iPods, iTunes Store, Intel transition[edit]

iPod[edit]
Main article: iPod

A 2nd generation iPod

 38

iPod mini with the user interface set to German

In October 2001, Apple introduced its first iPod portable digital audio player. The iPod started as
a 5 gigabyte player capable of storing around 1000 songs. Since then it has evolved into an array
of products including the Mini (now discontinued), theiPod Touch, the Shuffle, the iPod Classic,
the Nano, the iPhone and the iPad. Since March 2011, the largest storage capacity for an iPod
has been 160 gigabytes.[66] Speaking to software developers on June 6, 2005, Steve Jobs said the
company's share of the entire portable music device market stood at 76%.[citation needed]

The iPod gave an enormous lift to Apple's financial results.[67] In the quarter ending March 26,
2005, Apple earned US$290 million, or 34¢ a share, on sales of US$3.24 billion. The year before
in the same quarter, Apple earned just US$46 million, or 6¢ a share, on revenue of US$1.91
billion.

Apple and "i" Web services[edit]

In 2000, Apple introduced its iTools service, a set of free web-based tools that included an email
account, internet greeting cards called iCards, a service callediReview that gave internet users a
place to read and write reviews of Web sites, and a tool called KidSafe which promised to
prevent children from browsing inappropriate portions of the web. The latter two services were
eventually canceled because of lack of success, while iCards and email became integrated into
Apple's .Mac subscription based service introduced in 2002 and discontinued in mid-2008 to
make way for the release of the new MobileMe service, coinciding with the iPhone 3G release.
MobileMe, which carried the same US$99.00 annual subscription price as its .Mac predecessor,
featured the addition of "push" services to instantly and automatically send emails, contacts and
calendar updates directly to users' iPhone devices. Some controversy surrounded the release of
MobileMe services to users resulting in expected downtime and a significantly longer release
window. As a result of this, Apple extended the subscriptions of existing MobileMe subscribers
by an additional 30 days free-of-charge.[70] At the WWDC event in June 2011, Apple announced
its most up to date cloud service, iCloud, replacing MobileMe. This service kept most of the core
services that MobileMe offered, however dropping iDisk, Gallery, and iWeb. Additionally, it
added a number of other features to the group, including Find my Mac, iTunes Match, Photo
Stream, Documents & Data Backup, and iCloud backup for iOS devices. The service requires
users to be running iOS 5 and OS X 10.7 Lion.
 39

iTunes Store[edit]
Main article: iTunes Store

The iTunes Music Store was launched in April 2003, with 2 million downloads in the first 16
days. Music was purchased through the iTunes application, which was initially Macintosh-only;
in October 2003, support for Windows was added. Initially, the music store was only available in
the United States due to licensing restrictions.

In June 2004 Apple opened their iTunes Music Store in the United Kingdom, France, and
Germany. A European Union version opened October 2004 (actually, aEurozone version; not
initially available in the Republic of Ireland due to the intransigence of the Irish Recorded Music
Association (IRMA) but eventually opened Thursday January 6, 2005.) A version for Canada
opened in December 2004. On May 10, 2005, the iTunes Music Store was expanded
to Denmark, Norway,Sweden, and Switzerland.

On December 16, 2004, Apple sold its 200 millionth song on the iTunes Music Store to Ryan
Alekman from Belchertown, Massachusetts. The download was The Complete U2, by U2.[71] Just
under three months later Apple sold its 300 millionth song on March 2, 2005.[72] On July 17,
2005, the iTunes Music Store sold its 500 millionth song.[citation needed] At that point, songs were
selling at an accelerating annualized rate of more than 500 million.

On October 25, 2005, the iTunes Store went live in Australia, with songs selling for A$1.69
each, albums at (generally) A$16.99 and music videos and Pixar short films at A$3.39. Briefly,
people in New Zealand were able to buy music off the Australian store. However, that loophole
was quickly closed.

On February 23, 2006, the iTunes Music Store sold its 1 billionth song.[73]

The iTunes Music Store changed its name to iTunes Store on September 12, 2006 when it began
offering video content (TV shows and movies) for sale. Since iTunes' inception it has sold over 2
billion songs, 1.2 billion of which were sold in 2006. Since downloadable TV and movie content
was added 50 million TV episodes and 1.3 million movies have been downloaded.
 40

In early 2010, Apple celebrated the 10 billionth song downloaded from the iTunes Music
Store.[74]

2007–2011: Apple Inc., iPhone, iOS, iPad[edit]

On January 9, 2007, Apple Computer, Inc. shortened its name to simply Apple Inc. In
his Macworld Expo keynote address, Steve Jobs explained that with their current product mix
consisting of the iPod and Apple TV as well as their Macintosh brand, Apple really wasn't just a
computer company anymore. At the same address, Jobs revealed a product that would
revolutionize an industry in which Apple had never previously competed: the Apple iPhone. The
iPhone combined Apple's first widescreen iPod with the world's first mobile device boasting
visual voicemail, and an internet communicator able to run a fully functional version of Apple's
web browser, Safari, on the then-named iPhone OS (later renamed iOS).

2011–present: Restructuring and Apple Watch[edit]

On March 2, 2011, Apple unveiled the iPad's second generation model, the iPad 2. Like the 4th
generation iPod Touch and iPhone, the iPad 2 comes with a front-facing camera as well as a rear-
facing camera, along with three new apps that utilize these new features: Camera, FaceTime, and
Photobooth (only on iPad2).

On August 24, 2011, Steve Jobs resigned from his position as CEO[88] with Tim Cook taking his
place. On October 29, 2012, Apple announced structural changes to increase collaboration
between hardware, software and services.[89] This involved the departure of Scott Forstall,
responsible for the launch of iOS (iPhone OS at the time of launch), who was replaced with
Craig Federighi as head of iOS and OS X teams. JonyIve became head of HI (Human Interface),
whilst Eddy Cue was announced as head of online services including Siri and Maps. The most
notable short term difference of this restructuring was the launch of iOS 7, the first version of the
operating system to use a drastically different design to its predecessors, headed by
JonyIve.,[90] followed by OS X Yosemite a year later with a similar design.
 41

During this time, Apple released the iPhone 5, the first iPhone to have a screen larger than
3.5",[91] the iPod Touch 5, also with a 4" screen, the iPhone 5S with fingerprint scanning
technology in the form of Touch ID, and iPhone 6 and iPhone 6 Plus, with screens at 4.7" and
5.5". They released the iPad 3rd generation with Retina Display, followed by the iPad 4 just half
a year later. The iPad Mini was announced alongside the iPad 4th gen, and was the first to
feature a smaller screen than 9.7". This was followed by the iPad Mini 2 with Retina Display in
2013, alongside the iPad Air, a continuation of the original 9.7" range of iPads, which was
subsequently followed by the iPad Air 2 with Touch ID in 2014. Apple also released various
major Mac updates, including the MacBook Pro with Retina Display,[92]whilst also discontinuing
the original MacBook range for a short period, before reintroducing it in 2015 with various new
features, a Retina Display and a new design notably absent of ports other than USB-C.[93] They
also updated the Mac Pro and iMac lines with a drastically different smaller/thinner, but more
powerful designs.

On November 25, 2013, Apple acquired a company called PrimeSense.[94] On May 28, 2014,
Apple acquired Beats Electronics, producers of the popular Beats by Dre headphone and speaker
range, as well as streaming service Beats Music.

On September 9, 2014, Apple announced the Apple Watch, the first new product range since the
departure of Steve Jobs.[95] The product cannot function beyond basic features without being
within Bluetooth or WiFi range to an iPhone, and contains basic applications (many acting as a
remote for other devices, such as a music remote, or a control for an Apple TV) and fitness
tracking. The Apple Watch received mixed reviews, with critics suggesting that whilst the device
showed promise, it lacked a clear purpose, similar to many of the devices already on the
market.[96] The Apple Watch was released on April 24, 2015.[97]
 42

2.1.3) APPLE

Board of Directors

Arthur D. Levinson, Ph. D.

Chairman of the Board, Apple

Former Chairman and CEO
Genentech

Tim Cook

CEO
Apple

Albert Gore Jr.

Former Vice President of the

United States

Robert A. Iger

Chairman and CEO

The Walt Disney Company

Andrea Jung

President and CEO

Grameen America, Inc.
 43

Ronald D. Sugar, Ph. D.

Former Chairman and CEO

Northrop Grumman

Susan L. Wagner

Co-founder and Director

BlackRock

2.2) APPLE –AN OVERVIEW

Apple Brings Innovation Back to Television with The All-New Apple TV

The App Store, Siri Remote &tvOS are Coming to Your Living Room

SAN FRANCISCO — September 9, 2015 — Apple® today announced the all-new Apple TV®,
bringing a revolutionary experience to the living room based on apps built for the television.
Apps on Apple TV let you choose what to watch and when you watch it.The new Apple TV’s
remote features Siri®, so you can search with your voice for TV shows and movies across
multiple content providers simultaneously.

The all-new Apple TV is built from the ground up with a new generation of high-performance
hardware and introduces an intuitive and fun user interface using the Siri Remote™. Apple TV
runs the all-new tvOS™ operating system, based on Apple’s iOS, enabling millions of iOS
developers to create innovative new apps and games specifically for Apple TV and deliver them
directly to users through the new Apple TV App Store™.

“There has been so much innovation in entertainment and programming through iOS apps, we
 44

want to bring that same excitement to the television,” said Eddy Cue, Apple’s senior vice
president of Internet Software and Services. “Apps make the TV experience even more
compelling for viewers and we think apps represent the future of TV.”

The new Siri Remote dramatically simplifies how you select, scroll and navigate through your
favorite content while bringing unique interactivity to the new Apple TV by using a glass touch
surface that handles both small, accurate movements as well as big, sweeping ones. Adding
touch to Apple TV creates a natural, connected experience, even if the TV screen is on the other
side of the room. Developers can take advantage of the built-in accelerometer and gyroscope,
and the touch surface on the Siri Remote to create games and other app experiences that have
never been seen on TV before.

With Siri, you can use your voice to search TV shows and movies by title, genre, cast, crew,
rating or popularity, making it easy to say things like “Show me New Girl,” “Find the best funny
movies from the ‘80s,” “Find movies with Jason Bateman” and “Find popular TV shows for
kids.” Apple TV will search iTunes® and popular apps from Netflix, Hulu, HBO and Showtime,
displaying all the ways the resulting TV shows and movies can be played. Siri also offers
playback control and on-screen navigation, as well as quick access to sports, stock and weather
information.*

tvOS is the new operating system for Apple TV, and the tvOS SDK provides tools and APIs for
developers to create amazing experiences for the living room the same way they created a global
app phenomenon for iPhone® and iPad®. The new, more powerful Apple TV features the
Apple-designed A8 chip for even better performance so developers can build engaging games
and custom content apps for the TV. tvOS supports key iOS technologies including Metal™, for
detailed graphics, complex visual effects and Game Center, to play and share games with friends.

Pricing & Availability

The new Apple TV will be available at the end of October starting at $149 (US) for a 32GB
model and $199 (US) for a 64GB model from Apple.com, Apple’s retail stores and select Apple
Authorized Resellers. A new Xcode® beta is available for developers today that includes the
 45

tvOS SDK at developer.apple.com/xcode/downloads. Developers can request an Apple TV

developer kit at developer.apple.com/tvos/.

*Siri availability and functionality varies by country. Subscription required for some content.

Apple revolutionized personal technology with the introduction of the Macintosh in 1984.
Today, Apple leads the world in innovation with iPhone, iPad, the Mac and Apple Watch.
Apple’s three software platforms — iOS, OS X and watchOS — provide seamless experiences
across all Apple devices and empower people with breakthrough services including the App
Store, Apple Music, Apple Pay and iCloud. Apple’s 100,000 employees are dedicated to making
the best products on earth, and to leaving the world better than we found it.

2.3) ORGANIZATIONAL STRUCTURE OF APPLE

Organizational structure of apple

The organizational structure of Apple during the time of Steve jobs was very focused on Steve
jobs as the leader and he would make all of the decisions in apple and most of the Ideas came
from him. As many people have known especially the employees of apple, that the products
research and development process is kept very secretive with in apple and Steve jobs really
wants to maintain it very secretive to avoid a give away of apples ideas.

A con to Steve jobs organizational structure is that the company often encounters the bottleneck
situations of having ideas that are sourced only from the leader and what ever Steve jobs tends to
have a habits of only focusing on one product at a time too much that he disregards the other
products. Even his board of directors had also mentioned that he often talks about what he is
currently working on only during the enterprise meetings. However the positive side of having
this structure of organization is that product.
 46

As you can see in the organizational structure above, Steve jobs really is the backbone of the
whole company and he plays a big role in Managing the company among the board of directors.
Blue represents vice presidents, orange represents the executive team and grey represents vp
reports to jobs. The way he organizes his company is quite unique as he is the one that keep the
company going as he is he the main source of motivation and is what basically drives the whole
company and has proven to be a very successful organizational structure.

What would I change?

 47

In my opinion I would probably change some aspect of the company to make it more of a
democratic leadership. I would personally allow people to have free diverse opinions on the
aspects of a problem, a design the product or anything that involve making decisions. I think
giving people the freedom to have that privilege would motivate them to branch out much more
Ideas for apple and maybe many more successful Ideas, as Steve jobs had said himself that, no
matter how good you are, you will always need a group of talented people by your side to work
with and I think that he should have given the type of privilege with in that idea to the
employees, because the people at apple are already employed to love apple and want to see it
branch out new and innovative ideas and I don’t see much wrong in that, although it may take
longer to process all the ideas and onions on projects since there would be many people working
on it to improve the product together. However either way even though he didn’t use the
democratic style of management he still motivated and inspired his employees greatly and Steve
jobs has still made apple as magnificent and amazing as it is today.

2.4) APPLE PRODUCTS AND SERVICES

Mac
Main article: Macintosh
See also: Timeline of Macintosh models, List of Macintosh models grouped by CPU type and List
of Macintosh models by case type
Macs that are currently being sold are:
MacBook: Consumer ultra-thin, ultra-portable notebook, introduced in 2015.
MacBook Air: Consumer ultra-thin, ultra-portable notebook, introduced in 2008.
MacBook Pro: Professional notebook, introduced in 2006.
Mac Mini: Consumer sub-desktop computer, introduced in 2005.
iMac: Consumer all-in one desktop computer, introduced in 1998.
Mac Pro: Workstation desktop computer, introduced in 2006.
 48

Apple sells a variety of computer accessories for Macs, including Thunderbolt Display, Magic
Mouse, Magic Trackpad, Wireless Keyboard, Battery Charger, the AirPort wireless networking
products, and Time Capsule.
iPod
Main article: iPod

iPod line as of 2014. From left to right: iPod Shuffle, iPod Nano, iPod Touch.

On October 23, 2001, Apple introduced the iPod digital music player. Several updated models
have since been introduced, and the iPod brand is now the market leader in portable music
players by a significant margin. More than 350 million units have shipped as of September
2012.[169] 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.

Apple currently sells three variants of the iPod:

iPod Shuffle: Ultra-portable digital audio player, currently available in a 2 GB model, introduced
in 2005.

iPod Nano: Portable media player, currently available in a 16 GB model, introduced in 2005.
Earlier models featured the traditional iPod click wheel, but the current generation features
amulti-touch interface and includes an FM radio and a pedometer.

iPod Touch: Portable media player that runs iOS and was released on July 15, 2015 and is
currently available in 16, 32, 64, and 128 GB models. The current generation features the Apple
A8 processor, a Retina display, Siriand dual cameras on the front (1.2 megapixel sensor) and
 49

back (8 megapixel iSight). The latter camera supports HD video recordingat 1080p and slow
motion video at 120fps in 720p.[170]

iPhone

The first-generation iPhone, 3G, 4, 5, 5C and5S to scale.

Main article: iPhone

At the Macworld Conference & Expo in January 2007, Steve Jobs introduced the long-
anticipated[171]iPhone, a convergence of an Internet-enabled smartphone and iPod.[172] The first-
generation iPhone was released on June 29, 2007 for $499 (4 GB) and $599 (8 GB) with
an AT&T contract.[173] On February 5, 2008, it was updated to have 16 GB of memory, in
addition to the 8 GB and 4 GB models.[174] It combined a2.5G quad
band GSM and EDGE cellular phone with features found in handheld devices, running scaled-
down versions of Apple's Mac OS X (dubbed iPhone OS, later renamed iOS), with various Mac
OS X applications such as Safari and Mail. It also includes web-based and Dashboard apps such
 50

as Google Mapsand Weather. The iPhone features a 3.5-inch (89 mm) touchscreen
display, Bluetooth, and Wi-Fi (both "b" and "g").[172]

A second version, the iPhone 3G, was released on July 11, 2008 with a reduced price of $199 for
the 8 GB version and $299 for the 16 GB version.[175] This version added support
for 3G networking and assisted-GPS navigation. The flat silver back and large antenna square of
the original model were eliminated in favor of a glossy, curved black or white back. Software
capabilities were improved with the release of the App Store, which provided iPhone-compatible
applications to download. On April 24, 2009, the App Store [176]surpassed one billion
downloads.[177] On June 8, 2009, Apple announced the iPhone 3GS. It provided an incremental
update to the device, including faster internal components, support for faster 3G speeds, video
recording capability, and voice control.

At the Worldwide Developers Conference (WWDC) on June 7, 2010, Apple announced the
redesignediPhone 4.[178] It featured a 960x640 display, the Apple A4 processor, a gyroscope for
enhanced gaming, a 5MP camera with LED flash, front-facing VGA camera and FaceTime video
calling. Shortly after its release, reception issues were discovered by consumers, due to the
stainless steel band around the edge of the device, which also serves as the phone's cellular signal
and Wi-Fi antenna. The issue was corrected by a "Bumper Case" distributed by Apple for free to
all owners for a few months. In June 2011, Apple overtook Nokia to become the world's biggest
smartphone maker by volume.[179] On October 4, 2011, Apple unveiled the iPhone 4S, which was
first released on October 14, 2011.[180] It features the Apple A5 processor and Siri voice assistant
technology, the latter of which Apple had acquired in 2010.[181] It also features an updated 8MP
camera with new optics. Apple sold 4 million iPhone 4S phones in the first three days of
availability.[182]

On September 12, 2012, Apple introduced the iPhone 5.[183] It added a 4-inch display, 4G LTE
connectivity, and the upgraded Apple A6chip, among several other improvements.[184] Two
million iPhones were sold in the first twenty-four hours of pre-ordering[185] and over five million
handsets were sold in the first three days of its launch.[186] Upon the launch of the iPhone
5S and iPhone 5C, Apple set a new record for first-weekend smartphone sales by selling over
nine million devices in the first three days of its launch.[187] The release of the iPhone 5S and 5C
was the first time that Apple simultaneously launched two models.[188]
 51

A patent filed in July 2013 revealed the development of a new iPhone battery system that uses
location data in combination with data on the user's habits to moderate the handsets power
settings accordingly. Apple is working towards a power management system that will provide
features such as the ability of the iPhone to estimate the length of time a user will be away from a
power source to modify energy usage and a detection function that adjusts the charging rate to
best suit the type of power source that is being used.[189]

In a March 2014 interview, Apple designer Jonathan Ive used the iPhone as an example of
Apple's ethos of creating high-quality, life-changing products. He explained that the phones are
comparatively expensive due to the intensive effort that is used to make them:

We don’t take so long and make the way we make for fiscal reasons ... Quite the reverse. The
body is made from a single piece of machined aluminium ... The whole thing is polished first to a
mirror finish and then is very finely textured, except for the Apple logo. The chamfers
[smoothed-off edges] are cut with diamond-tipped cutters. The cutters don’t usually last very
long, so we had to figure out a way of mass-manufacturing long-lasting ones. The camera cover
is sapphire crystal. Look at the details around the sim-card slot. It’s extraordinary![57]

iPad

Main article: iPad

On January 27, 2010, Apple introduced their much-anticipated media tablet, the iPad, which runs
a modified version of iOS. It offers multi-touch interaction with multimedia formats including
newspapers, ebooks, photos, videos, music, word processing documents, video games, and most
existing iPhone apps.[190] It also includes a mobile version of Safari for web browsing, as well as
access to the App Store, iTunes Library, iBookstore, Contacts, and Notes. Content is
downloadable via Wi-Fi and optional 3G service or synced through the user's
computer.[191] AT&T was initially the sole U.S. provider of 3G wireless access for the iPad.[192]

On March 2, 2011, Apple introduced the iPad 2, which had a faster processor and a camera on
the front and back. It also added support for optional 3G service provided by Verizon in addition
to AT&T.[193] The availability of the iPad 2 was initially limited as a result of a
devastating earthquake and tsunami in Japan in March 2011.[194] The third-generation iPad was
 52

released on March 7, 2012 and marketed as "the new iPad". It added LTE service from AT&T or
Verizon, an upgraded A5X processor, and Retina display. The dimensions and form factor
remained relatively unchanged, with the new iPad being a fraction thicker and heavier than the
previous version and featuring minor positioning changes.[195]

On October 23, 2012, Apple's fourth-generation iPad came out, marketed as the "iPad with
Retina display". It added the upgraded A6Xprocessor and replaced the traditional 30-pin dock
connector with the all-digital Lightning connector.[196] The iPad Mini was also introduced. It
featured a reduced 7.9-inch display and much of the same internal specifications as the iPad
2.[197] On October 22, 2013, Apple introduced the iPad Air and the iPad mini with Retina
Display, both featuring a new 64 bit Apple-A7 processor.[198] The iPad Air 2was unveiled on
October 16, 2014. It added better graphics and central processing and a camera burst mode as
well as minor updates. The iPad Mini 3 was unveiled at the same time.[198]

Since its launch, iPad users have downloaded three billion apps. The total number of App Store
downloads is over 75 billion.[199][200][201]

Apple Watch

Main article: Apple Watch

The Apple Watch smartwatch was launched by Cook on September 9, 2014, and released on
April 24, 2015.[202] The wearable device consists of fitness-tracking capabilities that are similar
to Fitbit, and must be used in combination with an iPhone to work (only the iPhone 5, or later
models, are compatible with the Apple Watch).[203][204][205]

Apple TV

Main article: Apple TV

At the 2007 Macworld conference, Jobs demonstrated the Apple TV (previously known as the
iTV),[206] a set-top video device intended to bridge the sale of content from iTunes with high-
definition televisions. The device links up to a user's TV and syncs, either via Wi-Fi or a wired
network, with one computer's iTunes library and streams content from an additional four. The
Apple TV originally incorporated a 40 GB hard drive for storage, included outputs
 53

for HDMI and component video, and played video at a maximum resolution of 720p.[207]On May
31, 2007, a 160 GB drive was released alongside the existing 40 GB model.[208] A software
update released on January 15, 2008 allowed media to be purchased directly from the Apple
TV.[209]

In September 2009, Apple discontinued the original 40 GB Apple TV and now continues to
produce and sell the 160 GB Apple TV. On September 1, 2010, Apple released a completely
redesigned Apple TV. The new device is 1/4 the size, runs quieter, and replaces the need for a
hard drive with media streaming from any iTunes library on the network along with 8 GB
of flash memory to cache media downloaded. Like the iPad and the iPhone, Apple TV runs on an
A4 processor. The memory included in the device is half of that in theiPhone 4 at 256 MB; the
same as the iPad, iPhone 3GS, third and fourth-generation iPod Touch.[210]

It has HDMI out as the only video out source. Features include access to the iTunes Store to rent
movies and TV shows (purchasing has been discontinued), streaming from internet video
sources, including YouTube and Netflix, and media streaming from an iTunes library. Apple also
reduced the price of the device to $99. A third generation of the device was introduced at an
Apple event on March 7, 2012, with new features such as higher resolution (1080p) and a new
user interface.

At the September 9, 2015 event, Apple unveiled an overhauled Apple TV, introducing the App
Store and a new "Siri Remote" with a touchpad.

Software

See also: List of Macintosh software

 54

Apple Worldwide Developers Conference is held annually by Apple to showcase its new
software and technologies for software developers.

Apple develops its own operating system to run on Macs, OS X, the latest version being OS X
Yosemite (version 10.10). Apple also independently develops computer software titles for its OS
X operating system. Much of the software Apple develops is bundled with its computers. An
example of this is the consumer-oriented iLife software package that
bundles iMovie, iPhoto andGarageBand. For presentation, page layout and word
processing, iWork is available, which includes Keynote, Pages, and Numbers.
iTunes, QuickTime media player, and Software Updateare available as free downloads for both
OS X and Windows.

Apple also offers a range of professional software titles. Their range of server software includes
the operating system OS X Server; Apple Remote Desktop, a remote systems management
application; and Xsan, a Storage Area Network file system. For the professional creative market,
there is Aperture for professional RAW-format photo processing; Final Cut Pro, a video
production suite; Logic Pro, a comprehensive music toolkit; and Motion, an advanced effects
composition program.

Apple also offers online services with iCloud, which provides cloud storage and syncing for a
wide range of data, including email, contacts, calendars, photos and documents. It also offers
iOS device backup, and is able to integrate directly with third-party apps for even greater
functionality. iCloud is the fourth generation of online services provided by Apple, and was
preceded by MobileMe, .Mac and iTools, all which met varying degrees of success.

Apple SIM

Apple launched a SIM card service that can be used by iPad owners in 90 countries.[211]

Electric vehicles

Main article: Apple electric car project

According to the Sydney Morning Herald, Apple wants to start producing an electric
car with autonomous driving as soon as 2020. Apple has made efforts to recruit battery experts
 55

and other electric automobile workers from A123 Systems, LG Chem, Samsung
Electronics,Panasonic, Toshiba, Johnson Controls, and Tesla Motors

Other Application Software

The Company also sells various other application software including Final Cut Pro, Logic
Studio, Logic Pro and its FileMaker Pro database software. The Company manufactures the
Apple LED Cinema Display and Thunderbolt Display. The Company also sells a range of Apple-
branded and third-party Mac-compatible `and iOS-compatible peripheral products, including
printers, storage devices, computer memory, digital video and still cameras and various other
computing products and supplies. Apple TV allows customers to watch movies and television
shows on their high definition television. Content from iTunes, Netflix, YouTube and Flickr, as
well as music, photos, videos and podcasts from a Mac or Windows-based computer can also be
wirelessly streamed to a television throughApple TV.

Apple was founded as a partnership on April Fool’s Day 1976 by three people who originally
worked at Atari: Steven Gary Wozniak (1950- ), Steven Paul Jobs (1955-2011), and Ronald
Gerald Wayne (1934- ). Apple was incorporated on January 3, 1977, without Wayne, who sold
his shares back for $800. Wayne wrote the Apple I manual, drafted the partnership agreement,
and drew the first Apple logo.h

To raise capital for their new company, Steve Jobs sold his Volkswagen van and Steve Wozniak
sold his Hewlett-Packard scientific calculator for $500.h

Steve Wozniak credits entrepreneur and investor Mike Markkula (1942- ) for the success of
Apple. He provided initial funding and managerial support, and he served as chairman for Apple
from 1985 to 1997. He wrote several early software programs for the Apple II and freely
distributed them under the alias “Johnny Appleseed.”g

For the first 30 years, Apple was called Apple Computer, Inc. On January 9, 2007, it removed
the word “Computer” to reflect its expanding electronic market.c
 56

Steve Jobs set the list price of the original 4K Apple 1 at $666.66 ($2,572 in 2011 dollars),
doubling the cost of manufacturing. Fundamentalist Christians were quick to complain that 666
was the “mark of the beast.”h

Apple’s first computer, the Apple 1 (1976), did not include a keyboard, monitor, or case and was
basically an assembled circuit board. The Apple II was introduced on April 16, 1977, and has
been widely credited with popularizing the home computer.h

In 2010, Apple surpassed Microsoft to become the most valuable technology company in the
world. In 2010, Apple was valued at $222.12 billion, while Microsoft was valued at $219.18
billion. In August 2011, Apple pushed past Exxon as the most valuable public company in the
world.f,l

In July 2011, the U.S. Treasury had an operating cash balance of $73.7 billion. Apple, however,
reported its reserves higher than the government, at $76.4 billion. While the U.S. is spending
around $200 billion more than it collects in revenue every month, Apple, on the other hand, is
making money.b

Ronald Wayne, one of the original founders of Apple Inc., designed the first logo for Apple,
which was a pen-and-ink drawing of Sir Isaac Newton leaning against an apple 1tree with a
portion of a William Wordsworth poem: “Newton . . . . A mind forever voyaging though strange
seas of thought . . . alone.” Jobs thought the logo was “too cerebral” and a single apple was
chosen with a bite (byte), partly to prevent it from looking like a cherry tomato.h

Jean-Louise Gassee (1944- ), former executive of Apple Computer, suggested that the Apple
logo is a symbol of lust and knowledge, “bitten into, all crossed with the colors of the rainbow in
the wrong order. You couldn’t dream of a more appropriate logo: lust, knowledge, hope, and
anarchy.” In 1997, Jobs replaced the rainbow color of the apple logo with solid white.h

Apple generated approximately $625 of revenue from each of the 40 million iPhones it sold in
2009. It generated $164 of revenue for every iPod sold, $1,279 for every Mac, and $665 for
every iPad.
 57

Most of Apple’s annual revenue (approximately $65 billion) is generated from the products
Apple has invented during the last 10 years, such as iPods, iPhones, iPads, and iTunes. Almost
half of its annual revenue, or $30 billion, comes from products invented in the past 4 years.c

At the time, Apple’s initial public offering on December 12, 1980, was the largest IPO since the
Ford Motor Company went public in 1956. It sold out in minutes. Apples shares rose 32%,
making 40 Apple employees instant millionaires.g

iTunes, Apple’s online music, video, and app store, generated sales of $4 billion in 2010. That’s
over $1 billion more than one of the world’s largest music companies, Warner Music Group.d

In 1983, Apple entered the Fortune 500 at #411 after being in existence for only five years,
making it the fastest growing company in history.h

Apple stores each sell an average of $93,150 worth of products every day, which is equivalent to
$3,900 an hour or $65 a minute every day of the year.a

In 2009, Apple sold 40 million iPhones. That’s 4,583 sold per hour, 76 per minute, or 1.27 per
second. The iPhone is sold in 89 countries.a

In 1989, the Macintosh Portable became Apple’s first “portable” Mac computer.g

In 1984, the Macintosh was introduced by the famous “1984” commercial, which showed a
young, female rebel (Apple) striking a blow against corporate “Big Brother” (presumably IBM).h

Today, twice as much revenue is generated from Apple’s hand-held devices and music than from
Apple computers.a

In 2010, a British newspaper reported sweatshop conditions at an iPod factory in China. Apple
also admitted to using child labor.j

Environmentalists have criticized Apple for not providing a full-fledged computer recycling
program, unlike its competitors.e

Apple Corp, the Beatles’ record company, has repeatedly taken Apple Computer to court over
trademark infringement. The first time was in 1978, shortly after Apple Computer was founded
in 1976. The parties settled in 1981, on the contingency that Apple Computer would never enter
 58

the music industry. However, Apple Corp again took the computer giant to court in 1989 when
Apple Computer introduced computers capable of music playback, and then again in 2003 after
the iPod and iTunes hit the market in 2001 and 2002, respectively. The companies ultimately
reached an agreement concerning the use of the word “Apple” in 2007.

iPhones account for 39% of Apple’s overall revenue.c

 59

2.5) OTHER INFORMATION ABOUT APPLE

Company Background

Name Apple, Inc.

Logo

Computer hardware
Computer software (iOS, OS X, Safari, iLife, iWork,
iMovie, iPhoto)
Industries served Consumer electronics (iPod, iPhone, iPad, Apple TV
and Mac products)
Digital distribution (iTunes store, iCloud, App
StoreSM, Mac App Store)

Geographic areas Worldwide (retail stores in 16 countries and online

served stores in 39 countries)[1]

Headquarters Cupertino, California, United States

Current CEO Tim Cook

$182.795 billion (2014) 6.95% increase over $170.910

Revenue
billion (2013)[2]

$39.510 billion (2014) 6.67% increase over $37.037

Profit
billion (2013)[2]
 60

Employees 92,600 (2015)

Samsung Electronics Co., Ltd., Amazon.com, Inc.,

International Business Machines Corporation, Cisco
Systems, Inc., Google Inc., Microsoft Corporation, Dell
Main Competitors
Inc., LG Electronics, Lenovo Group Limited, Hewlett-
Packard Company, Sony Corporation and many other
technology companies.

Business description

This is an Apple business description taken from the company’s financial report: “The Company
designs, manufactures, and markets mobile communication and media devices, personal
computers, and portable digital music players, and sells a variety of related software, services,
peripherals, networking solutions, and third-party digital content and applications. The
Company’s products and services include iPhone®, iPad®, Mac®, iPod®, Apple TV®, a
portfolio of consumer and professional software applications, the iOS and OS X® operating
systems, iCloud®, and a variety of accessory, service and support offerings. The Company also
sells and delivers digital content and applications through the iTunes Store®, App Store™,
iBooks Store™, and Mac App Store. The Company sells its products worldwide through its retail
stores, online stores, and direct sales force, as well as through third-party cellular network
carriers, wholesalers, retailers, and value-added resellers. In addition, the Company sells a
variety of third-party iPhone, iPad, Mac and iPod compatible products, including application
software, and various accessories, through its online and retail stores. The company sells to
consumers; small and mid-sized businesses (“SMB”); and education, enterprise and government
customers.”[2]
 61

CHAPTER NO:3

3.1 FINANCIAL ANALYSES OF APPLE PVT.LTD.

PROFIT AND LOSS ACCOUT OF OF APPLE PVT.LTD

……………………in Rs. Cr…………………………………

Mar
Mar '13 Mar '12 Mar '11 Mar '10
'14

12 12 mths 12 mths 12 mths 12 mths

mth
 62

Income

Sales Turnover 0.00 0.00 0.00 0.12 1.80

Excise Duty 0.00 0.00 0.00 0.00 0.00

Net Sales 0.00 0.00 0.00 0.12 1.80

Oth
er
1.87 1.46 1.69 6.18 8.85
Inco
me

Stock Adjustments 0.00 0.00 0.00 0.00 0.00

Total Income 1.87 1.46 1.69 6.30 10.65

Expenditure

Raw Materials 0.00 0.00 0.00 0.00 0.00

Mar
Mar '14 Mar '12 Mar '11 Mar '10
'13

0.03 0.03 0.04 0.03 0.00

12
12 mths mth 12 mths 12 mths 12 mths 0.28
s

Other Manufacturing
0.00 0.00 0.00 0.00 0.00
Expenses
 63

Selling and Admin

0.00 0.00 0.00 0.00 1.02
Expenses

Miscellaneous Expenses 0.83 0.93 0.91 1.14 0.35

Preoperative ExpCapitalised 0.00 0.00 0.00 0.00 0.00

Total Expenses 1.30 1.35 1.33 1.45 1.65

-
Operating Profit -1.35 -1.33 -1.33 0.15
1.30

PBDIT 0.57 0.11 0.36 4.85 9.00

Interest 0.00 0.00 0.00 0.29 2.00

PBDT 0.57 0.11 0.36 4.56 7.00

Depreciation 0.20 0.20 0.21 0.22 0.24

Other Written Off 0.00 0.00 0.00 0.00 0.00

Profit Before Tax 0.37 -0.09 0.15 4.34 6.76

Extra-ordinary items 0.00 0.00 0.02 0.77 2.15

PBT (Post Extra-ord Items) 0.37 -0.09 0.17 5.11 8.91

Tax 0.00 0.00 0.00 0.00 0.00

Reported Net Profit 0.37 -0.09 0.17 5.09 8.90

Total Value Addition 1.30 1.36 1.34 1.46 1.66

Preference Dividend 0.00 0.00 0.00 0.00 0.00

 64

Equity Dividend 0.00 0.00 0.00 0.00 0.00

Corporate Dividend Tax 0.00 0.00 0.00 0.00 0.00

Per share data (annualised)

556.
Shares in issue (lakhs) 556.73 556.73 556.73 556.73
73

Earning Per Share (Rs) 0.07 -0.02 0.03 0.91 1.60

Equity Dividend (%) 0.00 0.00 0.00 0.00 0.00

Book Value (Rs) 4.73 4.67 4.68 4.65 3.74

 65

Cash Flow of Apple Finance ------------------- in Rs. Cr. -------------------

Mar
Mar '14 Mar '13 Mar '12 Mar '11
'10

12
12 mths 12 mths 12 mths 12 mths
mths

Net Profit Before Tax 0.37 -0.04 0.14 4.32 9.40

Net Cash From Operating Activities -1.27 -1.18 -0.53 10.19 -0.75
Net Cash (used in)/from
1.79 1.42 3.71 4.76 11.90
Investing Activities
Net Cash (used in)/from Financing -
0.00 0.00 0.00 -10.00
Activities 11.06
Net (decrease)/increase In Cash and Cash
0.51 0.24 3.18 4.96 0.08
Equivalents
Opening Cash & Cash Equivalents 18.48 18.24 15.06 10.10 10.02
Closing Cash & Cash Equivalents 19.00 18.48 18.24 15.06 10.10
 66

Key Financial Ratios of Apple

Finance

Mar '13 Mar '12 Mar '11 Mar '10 Mar '09

Investment Valuation Ratios

Face Value 10.00 10.00 10.00 10.00 10.00
Dividend Per Share -- -- -- -- --
Operating Profit Per Share
-0.24 -0.24 -0.24 0.04 0.27
(Rs)
Net Operating Profit Per Share
0.00 0.00 0.02 0.32 0.00
(Rs)
Free Reserves Per Share (Rs) -- -- -- -17.60 -19.19
Bonus in Equity Capital -- -- -- -- --
Profitability Ratios
Operating Profit Margin(%) -- -- -1,152.49 12.65 20,266.69
Profit Before Interest And Tax
-- -- -24.89 -0.39 660.79
Margin(%)
Gross Profit Margin(%) -- -- -1,344.89 -0.61 17,017.66
Cash Profit Margin(%) -- -- 72.15 -27.95 254.69
Adjusted Cash Margin(%) 10.16 20.83 72.15 -27.95 254.69
 67

Net Profit Margin(%) -7,178.89 13,315.36 4,370.71 318.14 44,345.57

Adjusted Net Profit
-- -- 80.90 318.14 44,345.57
Margin(%)
Return On Capital
-- -- 17.80 3.20 4.34
Employed(%)
Return On Net Worth(%) -- -- 19.66 42.78 704.51
Adjusted Return on Net
-0.17 0.55 16.67 -4.90 2.04
Worth(%)
Return on Assets Excluding
4.67 4.68 4.65 3.74 2.14
Revaluations
Return on Assets Including
4.67 4.68 4.65 3.74 2.14
Revaluations
Return on Long Term
-0.16 0.55 17.80 3.20 4.34
Funds(%)
Liquidity And Solvency Ratios
Current Ratio 2.82 2.87 2.57 3.30 1.59
Quick Ratio 2.51 2.55 2.25 2.98 1.48
Debt Equity Ratio -- -- -- 0.48 1.77
Long Term Debt Equity Ratio -- -- -- 0.48 1.77
Debt Coverage Ratios
Interest Cover -- -- 15.77 0.49 1.22
Total Debt to Owners Fund -- -- -- 0.48 1.77
Financial Charges Coverage
-- -- 16.54 0.61 1.43
Ratio
Financial Charges Coverage
-- -- 19.19 5.56 72.90
Ratio Post Tax
Management Efficiency Ratios
Inventory Turnover Ratio -- -- 0.05 -- --
Debtors Turnover Ratio -- -- -- -- --
 68

Investments Turnover Ratio 0.00 0.00 0.05 0.73 --

Fixed Assets Turnover Ratio -- -- 0.01 -- --
Total Assets Turnover Ratio -- -- -- 0.06 --
Asset Turnover Ratio -- -- 0.00 0.06 --

Average Raw Material

-- -- -- -- --
Holding
Average Finished Goods Held -- -- -- -- --
Number of Days In Working
3,797,495.08 3,938,332.88 32,559.10 3,593.24 820,663.09
Capital
Profit & Loss Account Ratios
Material Cost Composition -- -- -- -- --
Imported Composition of Raw
-- -- -- -- --
Materials Consumed
Selling Distribution Cost
-- -- -- -- --
Composition
Expenses as Composition of
-- -- -- -- --
Total Sales
Cash Flow Indicator Ratios
Dividend Payout Ratio Net
-- -- -- -- --
Profit
Dividend Payout Ratio Cash
-- -- -- -- --
Profit
Earning Retention Ratio -- 100.00 100.00 100.00 100.00
Cash Earning Retention Ratio 100.00 100.00 100.00 100.00 100.00
AdjustedCash Flow Times -- -- -- 1.04 43.71

Mar '14 Mar '13 Mar '12 Mar '11 Mar '10

Earnings Per Share 0.07 -0.02 0.03 0.91 1.60

Book Value 4.73 4.67 4.68 4.65 3.74
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Annual Financials for Apple Inc.

Assets

Fiscal year is October- 5-

September. All values USD 2010 2011 2012 2013 2014 year
millions. trend

Cash & Short Term

25.62B 25.95B 29.13B 40.55B 25.08B
Investments

Cash Only 1.69B 2.9B 3.11B 8.71B 10.23B

Short-Term Investments 23.93B 23.05B 26.02B 31.84B 14.85B

Total Accounts Receivable 9.92B 11.72B 18.69B 20.64B 27.22B

Accounts Receivables,
5.51B 5.37B 10.93B 13.1B 17.46B
Net

Accounts Receivables,
5.57B 5.42B 11.03B 13.2B 17.55B
Gross

Bad Debt/Doubtful
(55M) (53M) (98M) (99M) (86M)
Accounts

Other Receivables 4.41B 6.35B 7.76B 7.54B 9.76B

Inventories 1.05B 776M 791M 1.76B 2.11B

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Fiscal year is October- 5-

September. All values USD 2010 2011 2012 2013 2014 year
millions. trend

Finished Goods 1.05B 776M 791M 1.08B 1.64B

Work in Progress 0 0 0 0 0

Raw Materials 0 0 0 683M 471M

Progress Payments &

- - - - -
Other

Other Current Assets 5.08B 6.54B 9.04B 10.34B 14.12B

Miscellaneous Current
4.93B 5.82B 7.84B 10.34B 14.12B
Assets

Total Current Assets 41.68B 44.99B 57.65B 73.29B 68.53B

5-year
2010 2011 2012 2013 2014
trend

Net Property, Plant &

4.77B 7.78B 15.45B 16.6B 20.62B
Equipment

Property, Plant &

7.23B 11.77B 21.89B 28.52B 39.02B
Equipment - Gross

Buildings 1.47B 2.06B 2.44B 3.31B 4.86B

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5-year
2010 2011 2012 2013 2014
trend

Land & Improvements - - - - -

Computer Software and

- - - - -
Equipment

Other Property, Plant &

2.17B 2.78B 3.71B 3.97B 4.51B
Equipment

Accumulated Depreciation 2.47B 3.99B 6.44B 11.92B 18.39B

Total Investments and

25.39B 55.62B 92.12B 106.22B 130.16B
Advances

Other Long-Term
25.39B 55.62B 92.12B 106.22B 130.16B
Investments

Long-Term Note Receivable 0 0 0 0 0

Intangible Assets 1.08B 4.43B 5.36B 5.76B 8.76B

Net Goodwill 741M 896M 1.14B 1.58B 4.62B

Net Other Intangibles 342M 3.54B 4.22B 4.18B 4.14B

Other Assets 2.26B 3.56B 5.48B 5.15B 3.76B

Tangible Other Assets 1.46B 1.96B 2.48B 5.15B 3.76B

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5-year
2010 2011 2012 2013 2014
trend

Total Assets 75.18B 116.37B 176.06B 207B 231.84B

Liabilities & Shareholders' Equity

5-year
2010 2011 2012 2013 2014
trend

ST Debt & Current Portion

0 0 0 0 6.31B
LT Debt

Short Term Debt 0 0 0 0 6.31B

Current Portion of Long

0 0 0 0 0
Term Debt

Accounts Payable 12.02B 14.63B 21.18B 22.37B 30.2B

Income Tax Payable 210M - - - -

Other Current Liabilities 8.5B 13.34B 17.37B 21.29B 26.94B

Dividends Payable - - - - -

Accrued Payroll 436M 590M 735M 959M 1.21B

Miscellaneous Current
8.06B 12.75B 16.63B 20.33B 25.74B
Liabilities
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5-year
2010 2011 2012 2013 2014
trend

Total Current Liabilities 20.72B 27.97B 38.54B 43.66B 63.45B

Long-Term Debt 0 0 0 16.96B 28.99B

Long-Term Debt excl.

0 0 0 16.96B 28.99B
Capitalized Leases

Non-Convertible Debt 0 0 0 16.96B 28.99B

Convertible Debt 0 0 0 0 0

Capitalized Lease
0 0 0 0 0
Obligations

Provision for Risks &

0 0 0 0 0
Charges

Deferred Taxes 4.3B 8.16B 13.85B 16.49B 20.26B

Deferred Taxes - Credit 4.3B 8.16B 13.85B 16.49B 20.26B

Deferred Taxes - Debit 0 0 0 0 0

Other Liabilities 2.37B 3.63B 5.47B 6.34B 7.6B

Other Liabilities (excl.

1.23B 1.94B 2.82B 3.72B 4.57B
Deferred Income)
 74

5-year
2010 2011 2012 2013 2014
trend

Deferred Income 1.14B 1.69B 2.65B 2.63B 3.03B

Total Liabilities 27.39B 39.76B 57.85B 83.45B 120.29B

Non-Equity Reserves 0 0 0 0 0

Preferred Stock (Carrying

0 0 0 0 0
Value)

Redeemable Preferred
0 0 0 0 0
Stock

Non-Redeemable
0 0 0 0 0
Preferred Stock

Common Equity (Total) 47.79B 76.62B 118.21B 123.55B 111.55B

Common Stock
10.67B 13.33B 16.42B 19.76B 23.31B
Par/Carry Value

Retained Earnings 37.17B 62.84B 101.29B 104.26B 87.15B

ESOP Debt Guarantee 0 0 0 0 0

Cumulative Translation
Adjustment/Unrealized (217M) 313M (232M) (280M) 1.12B
For. Exch. Gain
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5-year
2010 2011 2012 2013 2014
trend

Unrealized Gain/Loss
171M 130M 731M (191M) (40M)
Marketable Securities

Revaluation Reserves 0 0 0 0 0

Treasury Stock 0 0 0 0 0

Total Shareholders' Equity 47.79B 76.62B 118.21B 123.55B 111.55B

Accumulated Minority
0 0 0 0 0
Interest

Total Equity 47.79B 76.62B 118.21B 123.55B 111.55B

Liabilities & Shareholders'

75.18B 116.37B 176.06B 207B 231.84B
Equity
 76

3.2 AWARDS AND SERVICES

WWDC: 2015 PRESENTING THE APPLE DESIGN AWARD WINNER

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At every WWDC, Apple takes some time to recognize the best that the App Store and Mac App Store have to offer—apps and
developers that go above and beyond, and serve as examples of what Apple’s platforms are capable of. Let’s meet this year’s cream of
the crop: Here are the 2015 Apple Design Award winners.

3.3 BUSINESS STRATERGIES

Managerial Value of a Well-Conceived Strategic Vision and Mission

Crystallizes long-term direction

Reduces risk of rudderless decision-making

Conveys organizational purpose and identity

Keeps direction-related actions of lower-level managers on common path

Helps organization prepare for the future

A strategic vision concerns a firm’s future business path -- “where we are going”

Markets to be pursued

Future technology product-customer focus

Kind of company that management is trying to create

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CHAPTER: 4

4.1 SWOT ANALSES

79
 80

Conclusion
Over the past 30 years Apple has amplified from computer design to developing consumer
electronics. The company was started by Steve Jobs, Steve Wozniak, and Ronald Wayne in the
1970’s. Steve Jobs is the current CEO of Apple and is doing a very efficient job in running the
company. Apple uses a differentiation business strategy, which means that all employees and
departments work together in the creation of their products. Since the employees work together
our products tend to be more productive. Apples main business initiative is customer relationship
management. When working with or purchasing from Apple you are promised top notch
customer service and assistance.

Apple uses many different types of internet business models. Business to Business e-commerce
is used in the selling of computers to help operate everyday proficiency in other businesses.
Business to Consumer e-commerce is the selling of iPods, computer, and other products to
different individuals rather than businesses. Business to Government e-commerce is the process
of selling of any Apple products to government operated organizations. As you can tell Apple
works with many different groups of customers. When purchasing from Apple you are offered
many different payment options. One payment option is electronic bill presentment and payment,
this system sends bills over the internet and helps to provide an easy method for you to pay them.
This method is most convenient for customers so that they can purchase and pay for their items
without ever leaving their home.

In running their business Apple finds it very important to use database warehouses. They feel
this way because it is a huge collection of business information that is collected from many
different databases. They also utilize data marts, which helps them to focus on certain operations
throughout the business rather than the overall summary of the business. In the analytical
processing databases and operational databases which Apple uses the most consists of many
different files. Some of these files are Costumer files, order files, sales files, and supplier files. In
having these files it makes the entire business process for Apple more convenient and more
efficient.
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Apples product line has grown rapidly in the past few years. We are selling products in the
following categories; input devices, output devices, storage devices, computers, and connecting
devices. For more detail on our products read the section titles hardware and software, or visit
our website at http://www.apple.com/ .

Apple is known to use a network called AirPort Extreme card. Airport Extreme card picks up a
wiFi signal rather than a broadcast network. Apple is related to Bonjor connection. It is an
automatic connection where computers and devices automatically broadcast their own services
and listen for services being offered for the use of others. AirPort Utility for Mac and Windows
guides you through the process of connecting to the internet, and you’ll have your network up
and running in minutes.

Apple applies the four principles of network security by offering a valid source of confidentiality
with their terms and agreement statement. Apple has their terms and agreement which explains
their integrity and availability. Whether looking up online or calling the store via telephone any
answer to any question is answered honestly. Their security and access controls explain Mac OS
X Server is built on an advanced architecture to deliver the features you want with the security
you need.

What we found to be the most interesting about Apple is how they are very innovative and early
adapters. Apple is usually the first company to come out with a new product line before anyone
else. This is very risky but it seems to be working to Apples advantage. This shows that taking
risks can sometimes make or break you.
 82

Reference
www.moneyconrol.com
www.wikipedia.com
www.apple.com
www.google.finance.com