Case Study: Apple Platform Policy and its Effect on Diffusion

Resource Person:

Muhammad Nabeel

Submitted By:

Sulaiman Mushtaq 15009065342

Session

2015-2019

University of Management and Technology

C-II Johar Town Lahore Pakistan

Contents

Introduction ...................................................................................................................................... 3
Global Smartphone trend ................................................................................................................. 4
Feature Smartphone sales forecast ................................................................................................... 4
Apple Mission and Vision Statement ............................................................................................. 5
Apple Background ........................................................................................................................... 6
Apple SWOT Analysis .................................................................................................................... 8
Apple summary of PESTEL Analysis ............................................................................................. 9
Porter’s 5 Forces Analysis ............................................................................................................. 11
BCG Matrix Perspective ................................................................................................................ 12
Conclusion ..................................................................................................................................... 13
Recommendations .......................................................................................................................... 14
References ...................................................................................................................................... 15

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Introduction
Platform has expected a noteworthy activity in media transmission industry. As the business creates
from regard chain to regard orchestrate industry, firms can never again look for after headway and
keep up power only by improving worth chain works out. Then again, perhaps, they have to transform
into a phase center individual among various individuals' value framework. Firms that successfully
created and camouflaged the platform as of now lead the media transmission industry: on one side,
there's opened Android organize, and on the contrary side, there is closed iOS arrange.

Mobile arrange is ending up being logically huge considering exponentially extending number of
customers and worth included benefits around it. With the creating mobile phone entrance, convenient
platform changed traditional PDA industry into entirely unexpected industry, which is a blend of
system get to and individualized processing industry, and made new open entryway for IT
associations. Since flexible platform expect a huge activity in such a varying business condition,
competition is wild among contenders and officeholder associations. In that fighting firms have
different establishments and standard focus abilities, each other's strategies and systems are novel.
Coordinated effort between these associations made new help around convenient arrange. Starting
late, as we see from the test of Amazon, Google, Facebook, and Apple, competition between IT
organization firms are consolidating into a couple of winning regions, for instance, promotion, cloud
organization, and fervor.

Each platform provider uses particular organize approaches, and these game plans show different
qualities in the scattering of each platform. To depict, the gathering paces of new working structures
are exceptional: Android has gotten open course of action, so it acknowledged commonly speedy
improvement, yet slacks the determination pace of new structure's presented base far behind that of
iOS. In the meantime, iOS has gotten restrictive game plan, so it the improvement of customer
assignment was decently more delayed than Android. In any case, visit update of Android arrange
came to fruition in supposed crack: while buyers acknowledge increasingly broad determination of
devices under opened platform, not all end customers get bit of leeway of structure upgrade and this at
times takes out surplus made around the platform. We see more diminutive break in progressively
restrictive platform, iOS.

In this assessment, the differentiation in the scattering instances of open and close platforms will be
explored using system components examination, and a while later the regulatory repercussions with
respect to the methodology and spread model will be discussed.(1) The scattering of those two one of
a kind sorts of platforms will be exhibited using structure components showing. To join open and shut
course of action in the model, each model will be worked in parallel. These models will be fit into
chronicled data and used to envision the future example. Foreseen example will be appeared
differently in relation to certifiable data with evaluate the accuracy of the model. (2) As a consequent
development, the effect of open and close platform technique on scattering model will be attempted
with factors used in the illustrating. (3) Lastly, affectability test will be directed to see whether
platform go-betweens or organize individuals can somehow control the speed of spread.

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Global Smartphone trend
T

The general presentation of cell phones has seen an unobtrusive improvement over the past
for an extensive stretch of time. Rivalry has continued everything hot, except the numbers
don't lie. Titan with two improvements is coordinated towards the market, taking in itself the
impossible 92% of the cake. These are Google and Apple. Information on cell phone
contributions developed during the last quarter of 2012 in the course of the most recent two
days, affirming the quantity of individuals overall who need to get their hands on a remote
system. After an insightful take a gander at the data, things being what they are, the general
nature of the telephone window is one of the most foolish oligopolies of the 21st century.
With the presence of the Blackberry 10 only two days away, cash experts are starting to think
about whether there's truly space for Research in Motion's ongoing advancement.

PDAs are removable racks. As the investigation technique appears, all out cell phone
shipments expanded from 490.5 million of every 2011 to 700.1 million out of 2012, which is
commonly 30% on a yearly premise. Regardless, there is cause for compounding inside the
organization: individuals will keep on having more telephones. Notwithstanding, with the
production of the market, Android is likewise a cupcake: Android went from 48.7% of the
market in 2011 to an unexpected pace of 70.1% in the final quarter of 2012. Thus, iOS has
gone from Apple to 22% of treats marginally before completion a comparable period. What is
the rest of the measure of the other person? In the final quarter of 2012, 7.9% had
surrendered.

The acknowledgment of the iPhone, Pre and Blackberry shows the client's eagerness for
shrewd and multifunctional contraceptives. Remote's consideration will convert into new
fundamental compensation streams for transporters and originators, who should attempt to
make new help bundles that work from this advantageous advance with incorporated video,
sound applications and information.

Future Smartphone sales forecast

BI Intelligence analyst Alex is thrilled that mobile phone offers have surpassed the number of
computers sold a year ago and will be about twice as many as computers offered this year.

By 2016, extremely terrifying mobile phone offers will exceed 1.5 billion units a year. An estimated
350 million personal computers and 1.8 billion mobile phones will be sold the year before.

BI Intelligence states that the arrangement of mobile phones will be driven by two key factors:

• Replace almost 5.1 billion "dumbphones" with PDAs (which now start to constitute only 11% of
mobile phones worldwide)

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• Price rot. The typical wireless network charges will drop from around $ 316 a year to $ 201 over a
long period of time

This will undoubtedly have a significant impact on the small Internet economy, which is now
breaking out of the cell phone invasion in the past almost every year. Some highlights of the report:

• The provisions relating to smartphone units will be established in a CAGR of approximately 31%
over the five-year period.

• Smartphones will handle approximately 68% of all PDA purchases by 2012.

Smartphones will be $ 330 billion compared to the market by 2015.

These speculations are much higher than the expectations of other inspectors in the sector, who
generally expect that the provisions of mobile telephony units will reach around 1.1 billion per year
by 2016.

Apple Mission and Vision statement

Apple creates Macs, the best computers in the world, close to OS X, iLife, iWork and major
programming programs. The Macintosh system automatically changes music with its iPod and iTunes

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online store. The Mac has repeated the mobile phone through the iPhone and the dynamic application
store and represents the potential number of media and device registrations that can be adapted with the
iPad.

Express Apple's vision:

Apple strives to provide the best personalized registration experience for innovative alternatives,
trainers, specialists and buyers around the world through its hardware, programming and Internet
commitments.

Wallpaper of Apple
In December 2012, The Economist demonstrated that "Apple has become the most significant
relationship ever (in clear terms), outperforming the record came to by Microsoft in December 1999.
Apple's offer was worth $ 705 preceding to go down 25%, to 510 dollars, they were at that point 410
dollars in 2012 ".

Macintosh Incorporated is an American affiliation that plans and fabricates PCs, programming, and
other customer gadgets. Perceived for its line of Macintosh and Mac OS X PCs, the affiliation is an
amazingly dissuasive client base, the iTunes mixed media application and the selective iPod music
player. Situated in Cupertino, California, Steve Jobs, CEO and First Supporter, has 284 stores in excess
of 10 unique nations (Bright Hub, 2010).

Apple Inc. April 1, 1976 from the Steve Jobs vehicle park and Steve Wozniak. Dynamic operators
passed on unequivocal solidarity to their adolescent affiliation: Jobs had a method for picturing things,
while Luzniak had the uncommon capacity to kick them off (Washington Post, 2012).

Apple I was the primary concern that Apple Inc. (PC) was with the MOS 6502 processor designed
at 1 MHz and 4 KB of memory. In 1977, Apple propelled Apple II, a practical instrument. Accordingly,
the affiliation started broadcasting the Apple II blueprint. Indeed, even Apple II has pursued Apple II,
Apple IIe, Apple IIc, Apple IIGS, Apple IIc Plus and Apple IIe Card.

Macintosh presented the Macintosh in 1984, which turned into a PC maker. The principal was a PC
with a graphical interface and a mouse, obviously. The new PCs are selling great, pushing Apple's 1984
expense arrangements to $ 1.5 billion strange.

In 1985, in any case, Jobs and Scully started to change dependent on the connection mentioned by
the affiliation. After Jobs' duty to discharge Scully fizzled, Jobs left Apple in May to dispatch his new
business, NeXT Computers.

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 In December 1996, Apple at that point guaranteed, during the work process, its improvement to
clarify another operational structure. In the wake of working for over ten years, he came back to the
affiliation he initially established with Wozniak.

In 1998, Apple propelled the hotly anticipated new period of PowerMacs, PowerBooks, iMacs and
iBooks, which were dynamically shrewd PCs for publicizing PCs. Following a year without
demonstrating any preferred position, the base quarter of 1998 began with three years of beneficial
Apple neighborhoods.

Apple has entered the lawful download showcase with the dispatch of the iTunes Music Store in 2001.
ITunes offers downloads at a pre-requested expense without membership or month to month charges.
ITunes offers its clients an assurance of in excess of 6 million tunes, new melodies being always
included.

For music darlings, iPod is the best improvement of your Walkman. With up to 160GB, clients can
stream up to 40,000 tunes or 200 hours of video anyplace. At present, there are four unparalleled iPod
modes: iPod Blend, Super iPod, iPod Nano and iPod. Macintosh alone got 5.615 million iPods in
2012 (APPLE INC., 2012).

Short history:

• In 1976 for $ 1,300, Steve Jobs and Steve Wozniak found Apple Computer, Inc.

• 1980 Apple is changed to open the affiliation.

• 1982 Apple becomes a leading PC association with up to $ 1 billion in annual agreements.

• In 1985, John Scully predicted the leadership guide after a structural adaptation that led to Jobs's
journey and some other Apple executives.

• The PowerBook line was released in 1991 from scratched laptops.

• The Power Macintosh font was released in 1994.

• 1996 NeXT acquires Steve Jobs at Apple as an outstanding assistant.

• 1997 Steve Jobs was named among the CEOs.

• 1998 Whatever your point of view, iMac is marketed.

• 2000 Jobs, all designed as CEO, coordinate a progressive design, even more powerful and subtle
than Apple.

• 2001 Apple releases its first iPod and opens its first store in Virginia.

• 2003 Apple opens its first store in Japan.

• The 2005 video aspect of the iPod, the fifth period of contraception, in 2005 quickly brought the
iPod to 30 million.

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In the main quarter of 2007, Apple has moved the iPhone "dynamic thing". IPhone consolidates three
well known thoughts with its clients: PDA, wide iPod and explicit web gadget. The iPhone has "a
fresh out of the box new UI subject to an enormous multi-contact screen and to begin programming".
Clients can fundamentally control their fingers. The default web programming for iPhone Safari will
be one of a kind. Nonetheless, it is additionally open for different programs. The iPhone goes through
over 8 hours of discussion. Apple sold one million iPhones in under a month after clients approached
this arrangement. Apple predicts that this model will proceed in 2008 and will arrive at an idea of 10
million iPhones, or 1% of the complete number of versatile organizations.

One year after the finish of the issue with Steve Jobs, the affiliation that made and coordinated the
greater part of his grown-up life has all the important safety measures for flourishing and the loss of
any genuine hindrance to his incautious movement in an advancement. in fast development. which is
strengthened.

Different issues can be continually pending for Apple and their suns spin around a constrained
arrangement of things. Also, all in all, the affiliation can feel separated from the earliest starting point
of a pioneer who has an uncommon capacity to see and twist other amazing characters of his own
unrestrained choice.

Roger Kay, the ace of free progress, stated: "An individual who can truly remove bunnies from his
peak is no longer there.

Apple SWOT analysis:

SWOT is an unimaginable sign of the ability of the basic association. This includes the creation of a
cross-section two by one, then its publication in a short time with a summary of the features and of the
customer's incredibly clear deficiencies and another overview of the great possibilities and risks. At
that point, you can stay behind and contemplate this moment of modest incomprehensible words, such

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as "contenders" and "novelties", trying to try an extraordinary new innovative technology of
cooperation. (News: Marketing Magazine, 2005)
The following table provides information on the current position, quality, shortcomings, potential
future conditions, risks and openings of your Apple phone.
strength point
Everywhere, it approves and understands
the brand, which similarly began a kind of
turmoil in the telephony sector.
The accuracy of the brand is superb. People
will organize themselves in the harsh
medium-term cold period just to be one of
the first to control the new iPhone! (Jenette,
2012)
Use high progress. This provides new
features for at least two purposes.
One, the appreciation of the first-class
estimate and two, luxury customer
successes.
Convenience. Apple utilizes
straightforward organized fragments for
both the iPhone programming parts and
apparatuses. The 3.5mm sound jack will be
a genuine model!
Former CEO, Steve Stevens' business in
making iPhone and Macs brought
incredibly to the market.
You have inevitable contests with flexible
vectors included. Such as T-Mobile and
AT&T
Weaknesses
Apple is a big name in the development world.
It brings a lot of commitment and kind of duty
to the associations and its things. The problem
with the new iPhone Map app and customer
frustration will be a real model.
In terms of your commitment, contemplations
like the iPhone contemplate indulging. They
imagine that that kind of epic expense can
gradually go through some basic point.
Use the high progress near the first part of the
gear and change Apple's iPhone more than the
main one. Probably, different people cannot
manage the expense account.
IPhone is furnished with an Apple shut
framework for work, iOS. What's more,
applications running iOS must be downloaded
from the App Store. Various adversaries like
Android have more transport channels.
Steve kicked the bucket in October 2011.
Presently we can see his work and his
considerations on Apple iPhone. Its misfortune
can be a superfluous harm to the affiliation.
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Apple summary of PESTEL Analysis
Political factors  Single source redistribution companies in the United
States, Asia and Europe provide and collect various key
parts. The redistribution of assistants in Asia freely
performs the final concert for the Society's things. The
complexity or coordination in these areas or the journey
towards unquestionable objectives in order to organize
the reasons may include, in any case, typical and non-
man-made catastrophes, disappointments of
disappointment in the structure of information, military
training, budget, business or work Or biological or
public prosperity, or political issues.
The war, the encouragement of panic, the geopolitical
weaknesses, the questions of general reform and the distinctive
inhibitions of the companies, have caused damage or an unstable
impact on the overall exchange and on the general economy, and
in this way can have a terrible impact material on the
organization and its suppliers, suppliers of coordination and
creation of traders. And customers, including channel partners.
The organization's businesses are based on impediments that
occur in catastrophic events, fires, deficiencies in control,
accidents in nuclear power plants, attacks by mental attackers
and other threatened jobs, labor discussions, general repair
problems and various events beyond out of his control.
Economic factors The general downturn truly influences Apple's retail execution

Research on the impacts of worldwide monetary conditions on

FAO providers can influence FAO's capacity to acquire sections.
Along these lines, the Organization stays defenseless against the
key dangers of deficient inventory and expanded expenses. The
Organization might want to see a diminishing in the gross edge
rate in future periods, when it rose uniquely in contrast to the
levels came to in 2012, and as a rule, given a higher blend of
new and imaginative things with the level or put aside
considering that the presence of structures More significant cost
and move of an undeniably significant inspiring power to clients
and to anticipate the expenses of parts and other cost increments.
Future US dollar reactivation could influence the net edge in a
threatening way.

Social factors Crafted by the association necessitates that you have to

utilize and store customers and experts, just as sign in a
little while unambiguous data ("PII"). This can
consolidate names, addresses, telephone numbers, email
locations, contacts and miles, charging obvious check
numbers, and record data. Be that as it may, since
noxious assaults to get to individual data influence
different relationship inside various associations, the
association may confront an inexorably genuine and

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 focal danger of concentrating on them as a result of
their appearance. what's more, the extent of managed
individual information.

Technological factors Apple's research and development costs are slowly expanding. $
1.8 billion for 2010, $ 2.4 billion and $ 3.4 billion for 2012, a
critical path these days in competition.

Environmental factors In addition, the organization offers hardware and

programming to corporate and government customers in
all its geographic segments. The specific objects of the
organization are transmitted in these commercial sectors
from the point of view of their introduction, efficiency,
comfort and reliable combination in the conditions of
information development. The organization is
impeccable with a myriad of untouchable corporate and
business applications and its impediment includes the
optimization and sending of secure applications in a
similar way as the association of remote devices.

Legal Factors The organization is based on laws and rules that affect his family
and complete exercises in different regions. Similarly, these laws
and external rules influence the activities of the Organization,
including, in any case, non-binding in the areas of activity,
advertising, paid materials, customer confirmation, land,
shipping, e-business, progress, nature of organizations,
correspondence, adaptable exchanges Media, television and
property are allowed for advancement and invasion, costs,
importation, necessities, against degeneration, distance exchange
controls, restrictions on cashback, the fundamentals of data
security and hostile to competition, the environment, prosperity
and security.

5 Power Analysis of Porter

Watchman's Five Powers instrument is a basic direct asset for understanding where power
works. This is significant in light of the fact that it enables you to comprehend the idea of your

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present position and the idea of the middle you plan to move.

Bargaining Bargaining
power of power of
suppliers customers

Threat of new Threat of

entrants substitutes
Competiti
ve rivalry

Six years after the month in which Steve Employments presented the first iPhone, the long
periods of primer chip away at the PDA are formally shut. Samsung's lively remarks Friday
featured the message passed on by Apple's most recent quarterly outcomes prior this week:
While new highs are arriving at new statures, the versatile screen is entering a stage where
paces of progress hop. - basically at the pay level - it will be hard to fall.

The situation is to confront a rush of complex gadgets and a nature near the qualities of
telephones instead of the highest point of cell phones that puts Apple and Samsung at the top.

Apple's offerings continued to decline after the announcement of the most accurate offers for
the iPhone in the last quarter of 2012, making Exxon the largest consortium in the world.

Despite having sold 47.8 million iPhones - up 29% from the previous quarter of last year - the
Mac failed to reach a high level of confidence on Money Road, which prompted two scholars
to imagine many of the improvements to guilt. for the iPod. So.

BCG matrix perspective

The structure of progression quotas is a structure initially created by the Boston Consulting Group
(BCG) in the 1960s to help associations meet the needs (and resources) to meet the needs of their
various associations. Typically called the Boston Framework, it groups all the associations of an
organization into one of four groups. The seasons took place indoors and outdoors and received basic
names for dairy animals, stars, dogs and question marks, which led to a perfect knowledge of the
world leader. .

To make a development offer, we need two actions. Relatively a bit of general business and two
functional improvements. I used a layout created by IDC to gather some information on iPhone from

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Apple and its opponents.

According to this framework, the showcase of the Apple offer is 15% of the public announcement for
the second quarter of the last quarter of 2012. Likewise, it is not ashamed of success after Samsung
with 31.3% of the market of offer. We need some cake. This suggests that we should consider the idea
of the brand as one for its biggest discount.

For Market development rate I utilized the table above and determine the table underneath:

Smartphone brands 2012 sales* 2011sales Market growth rate

Apple 158.3 95.1 %63

Samsung 155.4 92.7 %82

Research in motion (Blackberry) 48.3 55.4 -%20.2

HTC 31.9 47.7 -%14.3

Conclusion
In this report, I used the promotion of mechanical assemblies to analyze the market situation of Apple
iPhone and the status of progress. In general, we recognize that Apple is a highly correlated public

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reputation. People are willing to deal with new things and generally settle for results. Regardless,
Apple also has problems. Advancement is an incredibly busy market. Moreover, everything
associations get more research and development to improve things than others.

We examined the quality and the shortcomings of Apple and all the precious things, such as the
strength of the brand, the development of new novels, in particular on the iPhone, noteworthy
interface and app and key compatibility with large associations such as AT&T and cost shortages ,
dealers who monitor problems and enthusiastic competitors like Samsung E Edge. Apple in the
foreground directly from these huge amounts of concentrates, no weakness. However, with the
PESTEL overview, I discussed before you know that there is no belief in these days for the
promotion. Brands devour qualifications and compensation and are preparing to make a courageous
effort.

I greatly evaluated the Apple 10-K architecture. Apple's spending cuts mean everything is great and
progress is more than acceptable. In any case, different things were mentioned in the danger zone to
remind the examiner that it was a difficult matter.

Both Ansoff and BCG are suitable for the iPhone, as Samsung is extremely fast, but Apple continues
to beat the US, and apart from recessionary positions, data show that Apple knows the business.

Brands Samsung Apple RIM ZTE HTC

Market share 33.35% 18% 6.3% 3.2% 7%

Largest competitor 35.35% 33.35% 38.35% 37.35% 37.35%

Relative market share(

1:3 3:2 5:8 4:8 1:6
approximately)

Recommendations
Exam information. There are some tips and approaches for Apple that can be important on a large
scale.

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• iPhone Working Framework It is an element that Apple has a one of a kind structure that takes a
shot at the iPhone, anyway for open source work frameworks like Android.IOS, there are numerous
abnormal highlights that you recall from other working frameworks. IPhone clients generally
guarantee that they can't change to other work frameworks and love Apple and iOS. In any case, the
open source working framework is getting more grounded. Android has an action and we ought to
most likely anticipate that others should come tomorrow or somewhat later. None, applications are
typically costly in the App Store. Some essential programming for care and information securing
additionally have a record on iOS. Apple must hinder or surrender a portion of these components and
enable clients to adapt all the more free or low worth things.

• The iPhone and China market cuts - Morgan Stanley's agent, Katie Hubert - smaller than usual,
valued at $ 330 in China, would shock China's mobile phone offerings. The agent said today that the
low-level iPhone will add from 20% to 10% of Chinese resources in general from the iPhone 5. The
costs of mobile phones have begun to adapt in China; who will open the market to this phone. In any
case, collaboration with China Portable is also essential.

• The mobile phone industry is extremely interesting. As already indicated, another association grows
fiercely. In the Ansoff ranking, we test both existing markets and new announcements. Continuous
progress leads to new orders and new exhibitions, greater development improvements, greater
attractiveness and more important markets. Apple should play the costs cautiously, while continuing
the exceptional picture. So far the creative Apple on top of R&D has to increase because of the odds.

The cost of the innovative workforce increased by $ 952 million or 39% in 2012 in a different way
than in 2011 and $ 647 million or 36% in 2011 has changed since 2010. The Improvements in R & D
costs resulted from an increase in the number of expenditures and related expenditures. The link to
help develop research and development activities. Although the total cost of research and
development increased by 39% and 36% in 2012 and 2011, it remained independent regardless of the
degree of net agreement.

Some parts of the knowledge show that Apple is doing this methodology quite well.

The organization continues to tolerate the attention to research and development, which are necessary
to improve its future and its difficult business focus conditions and is directly related to the fortunate
progress in the new reformed things that are essential for the internal functioning of the 'organization.
In this limit, the organization plans to make research and development interests stronger.

• The exchanges claim both the private valuation and the revision of the head as a potential target of $
340 for Apple. The issue less discussed at this point for Apple is the strong dependence on the
blessings of telephone operators. When a buyer purchases an iPhone 5 from a courier for 199 USD, he
can pay Apple over 600 USD and assist the customer. Recently, AT&T and Verizon have had
negative experiences with the high degree of customization of iPhone devices. Yes on Google
Android phones and fewer Microsoft Windows phones.

The oldest is a totally negative result. Right now, according to our concept of an eclectic idea, the
trend at Apple has fallen to the level of hostility that has been decoded as bullish.

We proposed to buy Apple for $ 131 and we now enjoy 90% of the deal. The game plan is to take
control of the remaining 10% in the form of a complete concentration of the position in the portfolio
and to negotiate around it by means of quick transactions. Friday, the stock fell below the upper range
of our trading area.

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References

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