INTRODUCTION

THEORITICAL INTRODUCTION TO THE TOPIC

This research is studying about the Consumer’s behavior towards iPhone. The general objective
is to study various dimensions of the iphone users and also to find out their impacts towards
purchase making decisions.

Consumers often buy products not because of their attributes per se but rather because of the
ultimate benefits that these attributes provide, in turn leading to the satisfaction of ultimate
values. And Apple is a type of company which understand their customers & future aspects of
innovation in a way that no other companies do. That’s the reason that apple is at no. 1 place in
Top 50 Most innovative companies. This paper endeavors to recognize the consumer
perception towards iPhone and what is Apple’s ideology. In this paper I have listed down a few
variables which affect the consumer behavior most while purchasing Apple products. I take ___
sample sizes to make this paper and this study is being done in Thane region. To prepare the
factors, I have used Factor analysis test.

The study is aimed to achieve the objectives following:

 To study the significance impact of price on the purchase intention.

 To study the significance impact of perceived quality on the purchase intention.
 To study the significance impact of brand awareness on the purchase intention.
 To study the significance impact of perceived features on the purchase intention.

Consumer Perception Customer perception refers to the process by which a customer selects,
organizes, and interprets information/stimuli inputs to create a meaningful picture of the brand
or the product. It is a three stage process that translates raw stimuli into meaningful
information. Each individual interprets the meaning of stimulus in a manner consistent with
his/her own unique biases, needs and expectations.
 Price – customers have a high probability of favoring a product or service that is
economically priced
 Quality – if the product completely satisfies a customer then it enhances his/her
perception towards it.
 Packaging and branding – these significantly affect customer perceptions depending on
how the product is presented during purchasing. Attractiveness and display quality
increases perceptions.
 Reputation – reputation of products develops over time and depends on the experience
with the product and intensive marketing campaigns that raise the status and brand
identity. This determines customer’s product perceptions.
DEFINITIONS

Consumer behaviour is the study of how individual customers, groups or organizations select,
buy, use, and dispose ideas, goods, and services to satisfy their needs and wants. It refers to the
actions of the consumers in the marketplace and the underlying motives for those actions.

Marketers expect that by understanding what causes the consumers to buy particular goods
and services, they will be able to determine—which products are needed in the marketplace,
which are obsolete, and how best to present the goods to the consumers.

According to Engel, Blackwell, and Mansard, “consumer behaviour is the actions and decision
processes of people who purchase goods and services for personal consumption”.

According to Louden and Bitta, “consumer behaviour is the decision process and physical
activity, which individuals engage in when evaluating, acquiring, using or disposing of goods and
services”.
FEATURES

1. Influenced by various factors:

The various factors that influence the consumer behaviour are as follows:

a. Marketing factors such as product design, price, promotion, packaging, positioning and dis-
tribution.

b. Personal factors such as age, gender, education and income level.

c. Psychological factors such as buying motives, perception of the product and attitudes
towards the product.

d. Situational factors such as physical surroundings at the time of purchase, social surroundings
and time factor.

e. Social factors such as social status, reference groups and family.

f. Cultural factors, such as religion, social class—caste and sub-castes.

2. Undergoes a constant change:

Consumer behaviour is not static. It undergoes a change over a period of time depending on
the nature of products. For example, kids prefer colourful and fancy footwear, but as they grow
up as teenagers and young adults, they prefer trendy footwear, and as middle-aged and senior
citizens they prefer more sober footwear. The change in buying behaviour may take place due
to several other factors such as increase in income level, education level and marketing factors.

3. Varies from consumer to consumer:

All consumers do not behave in the same manner. Different consumers behave differently. The
differences in consumer behaviour are due to individual factors such as the nature of the
consumers, lifestyle and culture. For example, some consumers are technoholics. They go on a
shopping and spend beyond their means.

They borrow money from friends, relatives, banks, and at times even adopt unethical means to
spend on shopping of advance technologies. But there are other consumers who, despite
having surplus money, do not go even for the regular purchases and avoid use and purchase of
advance technologies.

4. Varies from region to region and country to county:

The consumer behaviour varies across states, regions and countries. For example, the
behaviour of the urban consumers is different from that of the rural consumers. A good
number of rural consumers are conservative in their buying behaviours.

The rich rural consumers may think twice to spend on luxuries despite having sufficient funds,
whereas the urban consumers may even take bank loans to buy luxury items such as cars and
household appliances. The consumer behaviour may also varies across the states, regions and
countries. It may differ depending on the upbringing, lifestyles and level of development.

5. Information on consumer behaviour is important to the marketers:

Marketers need to have a good knowledge of the consumer behaviour. They need to study the
various factors that influence the consumer behaviour of their target customers.

The knowledge of consumer behaviour enables them to take appropriate marketing decisions
in respect of the following factors:

a. Product design/model

b. Pricing of the product

c. Promotion of the product

d. Packaging

e. Positioning

f. Place of distribution

6. Leads to purchase decision:

A positive consumer behaviour leads to a purchase decision. A consumer may take the decision
of buying a product on the basis of different buying motives. The purchase decision leads to
higher demand, and the sales of the marketers increase. Therefore, marketers need to
influence consumer behaviour to increase their purchases.

7. Varies from product to product:

Consumer behaviour is different for different products. There are some consumers who may
buy more quantity of certain items and very low or no quantity of other items. For example,
teenagers may spend heavily on products such as cell phones and branded wears for snob
appeal, but may not spend on general and academic reading. A middle- aged person may spend
less on clothing, but may invest money in savings, insurance schemes, pension schemes, and so
on.

8. Improves standard of living:

The buying behaviour of the consumers may lead to higher standard of living. The more a
person buys the goods and services, the higher is the standard of living. But if a person spends
less on goods and services, despite having a good income, they deprives themselves of higher
standard of living.

9. Reflects status:

The consumer behaviour is not only influenced by the status of a consumer, but it also reflects
it. The consumers who own luxury cars, watches and other items are considered belonging to a
higher status. The luxury items also give a sense of pride to the owners.
ADVANTAGES

It’s important for businesses to study consumer behavior because they can learn more about their
target audience. With this information, businesses have the ability to analyze their current trajectory
and see how they can more effectively cater to their consumers. This helps them to drive more sales,
increase their revenue and improve their profitability.

Mitigate Risk for Your Business

One of the major reasons for studying consumer behavior is to reduce the amount of risk for your
business. For any business, the customers are the most important aspect. Without customers, you don’t
have any sales. And without sales, you don’t have a successful business. When businesses take the time
to study consumer behavior, they can get a better understanding of why consumers behave the way
they do.

Consumer behavior can help businesses to better plan their products and services. If a business is
considering releasing a new product, it's best to test consumer sentiment and attitudes towards the
product by releasing it out in a small market. This can save the business a considerable amount of
money because they don’t have to manufacture large amounts of the product only to find out
consumers don’t like something about it.

With their consumer insight in hand, the business can make the necessary adjustments to their product
and their marketing materials before they release the product to the larger market. By understanding
consumer behavior, the company can mitigate economic losses and save their reputation.

Create an Effective Marketing Strategy

One of the key benefits of studying consumer behavior is that it helps businesses to build a successful
marketing strategy. Through this research, businesses can gain a deeper understanding of who they are
catering to. By knowing their audience, they will better understand what their audience needs, why they
need it and what they are not looking for.

A successful marketing strategy includes the four key elements of the Marketing Mix: product, price,
place and promotion. Consumer behavior can provide insight into how each of these elements should
be used:

 What kind of product should the company promote, and how should it be packaged?

 How much should it cost?

 Where should it be sold?

 How should it be promoted?

With consumer behavior research in hand, companies can answer these questions more effectively, and
ensure their product launch is successful.

Create the Right Messaging to Get a Response

The way a business communicates with their prospects and customers is a vital part of their success.
Consumer behavior helps businesses to understand what their consumers value. As a result, businesses
can craft their messaging based on what is most important to the subset of the market they are
targeting.

Not all consumers value the same benefits, so it’s important for businesses to segment their consumer
base. This ensures that they entice their prospects with highly targeted messaging. For example, if a
local bakery wants to reach a health-conscious subset of their market, by studying consumer behavior
they can learn that these consumers want gluten-free and sugar-free treats. By leading with those
benefits, that bakery can better appeal to their market.

On the other hand, if the bakery also has customers who don’t care about health benefits but only care
about how a product looks, they can appeal to those consumers by focusing on their fantastical designs.
While those treats may be gluten-free and sugar-free, if that market segment doesn’t care about those
benefits, they are irrelevant.

Get Invaluable Feedback from Consumers

One of the main benefits of consumer behavior research is that it provides businesses with insight into
what their customers think. Conducting this kind of research doesn’t need to be complicated or
expensive. There are many ways small businesses can get feedback from their customers in order to
improve their business:

 Online surveys sent via email

 Free samples of products in return for feedback

 Focus groups for testing out new products

 Personal interviews with high-value customers

Once you have the data you need, it’s important to analyze the information and apply it to your
business. Refining your strategy can help you to create products and campaigns that appeal directly to
your target market, mitigating risk for your business while improving your chances of success.
DISADVANTAGES

The marketers study the behaviour of consumer to mold it in favour of their product and sometimes
make fancy claims and use objectionable techniques. They also take the help to produce and market
such products which have no utility. In many cases consumers are exploited by sexy or otherwise
attractive advertisements through the media.

They take full advantage of weaknesses of consumers to mold it in their favour whether it is scheme of
exchange, gifts, lotteries or otherwise. For instance certain producers claim that use of their tooth paste
will guard against germs and cavity.

Any number of examples can be given but such claims sometimes even by big companies are only
partially true. High priced products are introduced to take advantage of consumers weakness just by
changing shape, packing etc. Customers are attracted by gifts, lotteries, exchange schemes, etc.

In such cases often claims are exaggerated and benefits in the form of sales promotion scheme is only to
seller and not to buyer. The government in most of the countries has found that though consumer is the
king he is exploited. Hence most of countries have framed and enacted many acts and regulations to
safe guard the interest of consumers.

In India also there are a large number of laws in this direction like Monopoly and Restrictive Trade
Practices Act (MRTP)., Essential Commodities Act., Consumer Protection Act, compulsory printing of
maximum retail price on each packing, weights and Measures Act and Code of Advertising.
INTRODUCTION TO THE COMPANY

Apple Inc belongs to the technology industry, which is the most valuable and growing industry in global
market. The technology industry has two major sectors: hardware and software. On one hand, Dell,
Lenovo, Samsung, Intel, Sony, and Xiaomi are the representatives of the hardware. Their business
includes the personal computer, mobile phone, tablet, music player, and other electronic devices. On
the other hand, IBM, Microsoft, and Android are participating in the software sector. Besides, some
other companies like Apple Inc and Google are playing the important role in the both sectors. In the
technology industry, every large successful company has some similar strategies in quality, price,
innovation, globalization, and consumer spending area. By the development of the science, an
increasing number of companies invest in the technology industry. And the competition is becoming
fiercer between the companies in the maturity markets and emerging markets. Apple Inc was created by
Steve Jobs and Steve Wozniak in 1976. At the beginning, Apple Inc only produced easy-to-use computer
to the PC market. Due to the special designing and revolutionary concepts, Apple Inc became the
industry leader since 1980. At the same year, Apple Inc launched a successful IPO. Nowadays, Apple Inc
is the most valuable company in the history of the world. Apple Inc created a lot of revolutionary
products like Macintosh, iPod, iPhone, iPad, and Apple watch. This company also brought some great
applications and system, like iOS and Apple Pay to consumers as well. In the future, Apple Inc is going to
challenge the unfamiliar industries such as car and cable. After the death of founder Jobs, Apple Inc is
trying to creating the new legendary stories under the lead of new CEO Tim Cook.

Innovation and Apple’s Ideology Apple’s ideology is to make a product which gives people the ability to
do things that they couldn’t do before. Take iPhone X, The portrait portrait-lighting feature. This is
something that you had to be a professional photographer with a certain setup to do in the past. But
with iPhone X, it has become so easy to do a professional photography. And an iPhone X does more than
just take pictures. There are so many parts. With ARKit, we created something that essentially took the
heavy lifting with [augmented reality] and put it in the operating system, which empowers thousands of
developers eventually to be able to build AR into their apps. Some will be very profound, life changing.
There is no doubt about that in my mind.

Apple had implemented something in iOS 11 where it detects if you’re in a car and will shut off your
messages and notifications. That isn’t us playing Big Brother. That’s apple giving us a tool to help us do
the right thing. You can override it; you may be a passenger instead of the driver, and that’s okay. But
apple would like to try as many of those as possible so that they can help people do the right thing.
Apple inc. is a group of people who are trying to change the world for the better.

Apple CEO Time cook said in the Bloomberg that, “We run a very different company. We’re just not
making products to sell. That doesn’t get me up in the morning. I get up in the morning like many of our
people to Change Things. We are not like other companies where the objective is to become a 40 billion
dollar company. But employees don’t get excited about that. This isn’t something you wake up every
morning But Changing the World. These are the things that people work for. This pushes people to go on
extra mile and to create something different.” For us, technology is a background thing. We don’t want
people to have to focus on bits and bytes and feeds and speeds. We don’t want people to have to go to
multiple [systems] or live with a device that’s not integrated. We do the hardware and the software, and
some of the key services as well, to provide a whole system. We do that in such a way that we infuse
humanity into it. We take our values very seriously, and we want to make sure all of our products reflect
those values. There are things like making sure that we’re running our [U.S.] operations on 100%
renewable energy, because we don’t want to leave the earth worse than we found it. We make sure
that we treat well all the people who are in our supply chain. We have incredible diversity, not as good
as we want, but great diversity, and it’s that diversity that yields products like this.”

What makes them unique?

1. The OS and hardware built together, marrying them perfectly, making them a breeze to use. E.g.
Though the iPhone runs only a dual core processor, its performance is comparable to an octa
core in a similar android phone.

2. The ecosystem, the key to Apple's success. With features like Continuity, Handoff, AirDrop,
AirPlay, AirPrint, Apple aims to attract people to buy products to create an ecosystem of
devices. And obviously, you will now start to use SMS on your Mac!

3. Design and build quality. Apple uses precision tools and advanced, lightweight materials in the
construction of their devices. It gives the owner a reputation that's worth all the money you've
spent. And yeah, no plastic.

4. The after service. Though most Apple products barely need service, Apple has an amazing
system for service. Apple store genius bars, for example, an excellent way to explain this. And if
you don't have apple stores around, you can always call them up. Plus they have a huge support
portal where other Apple users can answer all your questions.
VISION, MISSION AND GOALS

Understanding Understanding the mission and vision that drives an organization is the first step to really
appreciating how that company moves toward its short and long-term objectives.
Indeed, where a mission statement focuses more on the business objectives and how to reach them.
The vision is about how that same company sees itself in the long-term.
Thus, for any organization, it is critical to understand how the mission and vision are formulated to have
a deep understanding of how they think about the future.
The simplest way to define a mission and a vision, it is by setting up a mission and vision statement.
We’ll look at the mission and vision statement of Apple.

VISION
“We believe that we are on the face of the earth to make great products and that’s not
changing. We are constantly focusing on innovating. We believe in the simple not the
complex. We believe that we need to own and control the primary technologies behind
the products that we make, and participate only in markets where we can make a
significant contribution. We believe in saying no to thousands of projects, so that we can
really focus on the few that are truly important and meaningful to us. We believe in deep
collaboration and cross-pollination of our groups, which allow us to innovate in a way that
others cannot. And frankly, we don’t settle for anything less than excellence in every
group in the company, and we have the self-honesty to admit when we’re wrong and the
courage to change. And I think regardless of who is in what job those values are so
embedded in this company that Apple will do extremely well.”
- Tim Cook
Back in 2009, when Steve Jobs was in medical leave, Tim Cook set the stage for the Apple
manifesto a long-form vision, that also set the mission the company had to accomplish after
the death of its legendary founder!
This vision set in stone follows a few key and core believes:
 Making great products
 Focusing on innovation
 Simplicity in place of complexity
 Control the primary technologies behind Apple’s products
 Focus on a few key projects
 Excellence as the standard
The vision statement sets the stage to the company’s core believes. These core believes do not
change year over year but instead follow the company life throughout several cycles.
While there are events that shake companies fundamentals and make them rethink the long-
term vision!
MISSION
“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 is defining the future of mobile media and computing devices
with iPad.”
- Steve Jobs

Understanding the elements of Apple mission statement is critical:

 Best user experience

 Innovative hardware
 Innovative software and services

From this element also the way the organizational structure is designed is crafted. Therefore, at
Apple user experience comes first; this gives great power to design and designers over
engineers.

Not surprisingly Apple products are beautifully crafted. Everything about Apple products has to
be designed with maximum attention to details.

At the same time, Apple has leveraged on software, integrated within the hardware that made
its products more valuable for users. An iPhone without its App Store would not be worth
much, even though that is a beautiful device.
GOAL
The ultimate goal of Apple Inc:

“The ultimate goal is to power all Apple facilities entirely by renewable energy."

Being a business in designing and manufacturing electronic devices, Apple experiences constant
competition from other companies. Just recently Amazon has launched their new tablet, proposing a
head-to-head competition with Apple’s iPad. However, Apple continues its research and development in
order to produce user-friendly technology that will make them the leading business in electronic
devices.
All three Goals listed below are very important to Apple.

Goal 1:
To expand their sales to customers who have not yet own any Apple’s products.
Strategy:
Expanding their distribution network to reach more consumers.
Tactics:
 Internet Providers
 Third Party Retail Stores
 Flagship Stores
One of Apple’s objectives is to expand their sales to customers who have not yet own an Apple product.
They do this not only through advertising but by expanding their distribution network as well. In my
opinions, in order to expand their distribution network, Apple has their products such as the iPhone sold
in various Internet providers like Smartone, 3, and CSL. Stores such as Smartone aim to sell long-term
phone plans with the iPhone. By promoting the popular generations of the iPhone they are able to sell
plans along with the iPhone. Apple also offers its products in third party retail stores such as Broadway
and Fortress. Lastly they also sell their products in Flagship stores such as the new store opened in
Central, Hong Kong. The use of a Flagship store eliminates the need for people to visit stores such as
“DGA-Design” in Causeway Bay or the previous “DG” that was located in the IFC Mall. A flagship store
located in the heart of Hong Kong for example is a great way to attract customers. Also they offer
anything Apple related, from products to software and servicing.

Goal 2:
To produce hassle free products that provides service and enjoyment for customers.
Strategy:
To continue investments in Research and Development
Tactics:
 Improved new generations of products
 New features
Another objective for Apple is to produce hassle free products that will provide service and enjoyment
for customers. To reach this goal Apple believes in the continuous investment in their Research and
Development department in order to continue producing quality products. For example, in the past few
years Apple has revolutionized the global networking world through their improved generations of the
iPhone. I believe, with the upcoming fifth generation iPhone coming out, Apple will be attracting more
customers than it has before. In 2007, according to an article in CNN, the first generation iPhone
reached sales of up to US$500,000 in just two days after being launched. Last year, three days after the
launch of the iPhone 4, sales rose to about US$1.7 million. Furthermore the improved generations of the
iPhone offer new features such as Face Time, Voice Control and access to new games and software
updates. Customers are able to enjoy movies and play their favorite games in the palm of their hands
and they are able to connect with friends and families even faster than before.

Goal 3:
Become the leading business in the mobile market
Strategy:
Become an online search machine and platform for online advertising
Tactics:
 Research and Development in online search and advertising
 Monitoring the works of Google and Yahoo
Lastly one of Apple’s biggest objectives is to become the leading business in the mobile market. Their
strategy associated with this goal is to become an online search machine and platform for online
advertising. This strategy involves dividing their market into two categories. The first category would be
for market “common-or-garden mobile phones of the kind we have now — which do voice, text, MP3s
and perhaps radio and TV” (Guardian) and the second category would be the iPhone platform, allowing
people to access the internet and get the computer feel in their own hands. This iPhone platform will be
Apple’s continuous expansion to one-day match Google in becoming a leading search engine for online
advertising. To fuel this strategy, I believe continuous investments in Research and Development would
be a viable tactic as well as monitoring the works of Google and Yahoo very closely in order to see how
they can match their competition.
Apple Products

KEY PRODUCTS
iPhone
iPhone is the Company’s line of smartphones based on its iOS operating system. iPhone includes Siri®,
an intelligent assistant, and Apple Pay, Touch ID® and Face ID® on qualifying devices. In September
2018, the Company introduced three new iPhones. iPhoneXs and Xs Max feature a Super Retina™ OLED
display, an all-screen stainless steel and glass design, faster processors and enhanced cameras, and were
available beginning in September 2018. iPhone XR features a Liquid Retina™ LCD display in an allscreen
aluminum and glass design, and was available beginning in October 2018. The Company’s line of
smartphones also includes iPhone 8, 8 Plus, 7 and 7 Plus models. iPhone works with the iTunes Store,
App Store, Book Store and Apple Music for purchasing, organizing and playing digital content and apps.

iPad
iPad is the Company’s line of multi-purpose tablets based on its iOS operating system, which includes
iPad Pro®, iPad and iPad mini®. iPad includes Siri, Apple Pay and Touch ID. In March 2018, the Company
released a new 9.7-inch iPad with Apple Pencil® compatibility. In October 2018, the Company
introduced a new version of iPad Pro as well as a new Apple Pencil and Smart Keyboard Folio™. The new
11-inch and 12.9-inch iPad Pro models feature a Liquid Retina LCD display in an all-screen aluminum and
glass design and integrate Face ID. iPad works with the iTunes Store, App Store, Book Store and Apple
Music for purchasing, organizing and playing digital content and apps.

Mac
Mac is the Company’s line of desktop and portable personal computers based on its macOS operating
system. Mac includes Siri and supports Apple Pay, and also includes Touch ID on qualifying devices. The
Company’s desktop computers include iMac® 21.5-inch, iMac 21.5-inch with Retina® 4K display, iMac
27-inch with Retina 5K display, iMac Pro®, Mac Pro® and Mac mini®. The Company’s portable computers
include MacBook®, MacBook Air®, MacBook Pro® and MacBook Pro with Touch Bar™. In October 2018,
the Company introduced a new MacBook Air featuring a Retina display and Touch ID, and a new Mac
mini with upgraded performance.
OPERATING SYSTEMS
iOS
iOS is the Company’s mobile operating system that serves as the foundation for iOS devices. Devices
running iOS are compatible with both Mac and Windows personal computers and Apple’s iCloud
services. In September 2018, the Company released iOS 12, which includes improved performance and
responsiveness, new augmented reality capabilities and expressive communication features, and
introduces Siri Shortcuts, enabling Siri to intelligently pair with third-party apps.

macOS
macOS is the Company’s desktop operating system and is built on an open-source UNIX-based
foundation and provides an intuitive and integrated computer experience. Support for iCloud is built
into macOS so users can access content and information from Mac, iOS devices and other supported
devices and access downloaded content and apps from the iTunes Store. macOS Mojave, released in
September 2018, is the 15th major release of macOS and makes apps such as News, Stocks, Voice
Memos and Home available on the Mac for the first time. macOS Mojave also adds desktop and Finder®
enhancements, such as Dark Mode, and introduces a full redesign of the Mac App Store.

watchOS
watchOS is the Company’s operating system for Apple Watch. In September 2018, the Company
released watchOS 5, which helps users stay healthy and connected with new features including Activity
Sharing competitions, auto-workout detection, advanced running features, Walkie-Talkie, Apple
Podcasts and third-party apps on the Siri watch face.

tvOS
tvOS is the Company’s operating system for Apple TV. The tvOS operating system is based on the
Company’s iOS platform and enables developers to create new apps and games specifically for Apple TV
and deliver them to customers through the Apple TV App Store. tvOS incorporates Siri capabilities that
allow searching across apps and services. In September 2018, the Company released tvOS 12, which
supports enhanced sound quality and provides additional 4K high dynamic range (“HDR”) content.
SERVICES
Digital Content and Services
The iTunes Store, available for iOS devices, Mac and Windows personal computers and Apple TV, allows
customers to purchase and download or stream music and TV shows, rent or purchase movies and
download free podcasts. The App Store, available for iOS devices, allows customers to discover and
download apps and purchase in-app content. The Mac App Store, available for Mac computers, allows
customers to discover, download and install Mac applications. The TV App Store allows customers
access to apps and games specifically for Apple TV. The Book Store, available for iOS devices and Mac
computers, features e-books from major and independent publishers. Apple Music offers users a
curated listening experience with on-demand radio stations that evolve based on a user’s play or
download activity and a subscription-based internet streaming service that also provides unlimited
access to the Apple Music library.

iCloud
iCloud is the Company’s cloud service which stores music, photos, contacts, calendars, mail, documents
and more, keeping them up-to-date and available across multiple iOS devices, Mac and Windows
personal computers and Apple TV. iCloud services include iCloud Drive®, iCloud Photos, Family Sharing,
Find My iPhone, iPad or Mac, Find My Friends, Notes, iCloud Keychain® and iCloud Backup for iOS
devices.

AppleCare
The Company offers a range of support options for its customers. These include assistance that is built
into software products, electronic product manuals, online support including comprehensive product
information as well as technical assistance, AppleCare + (“AC+”) and the AppleCare® Protection Plan
(“APP”). AC+ and APP are fee-based services that extend the coverage of phone support eligibility and
hardware repairs. AC+ offers additional coverage for instances of accidental damage and is available in
certain countries for certain products. Additionally, AC+ with theft and loss protection is available for
iPhone in the U.S.

Apple Pay
Apple Pay is the Company’s cashless payment service available in certain countries that offers an easy,
secure and private way to pay. Apple Pay allows users to pay for purchases in participating stores
accepting contactless payments and to pay for purchases within participating apps on qualifying devices.
Apple Pay accepts credit and debit cards across major card networks and also supports reward programs
and store-issued credit and debit cards. In December 2017, the Company released an update to iOS 11
and watchOS 4 introducing Apple Pay Cash in the U.S., allowing peer-to-peer payments using Apple Pay.
OTHER PRODUCTS
Apple TV
Apple TV connects to consumers’ TVs and enables them to access digital content directly for streaming
video, playing music and games, and viewing photos. Content from Apple Music and other media
services is also available on Apple TV. Apple TV allows streaming digital content from Mac and Windows
personal computers through Home Sharing and from compatible Mac and iOS devices through AirPlay®.
Apple TV runs on the Company’s tvOS operating system and is based on apps built for the television.
Additionally, the Apple TV remote features Siri, allowing users to search and access content with their
voice. The Company offers Apple TV and Apple TV 4K, which supports 4K and HDR content.

Apple Watch
Apple Watch is a personal electronic device that combines the watchOS user interface and technologies
created specifically for a smaller device, including the Digital Crown®, a unique navigation tool that
allows users to seamlessly scroll, zoom and navigate, and Force Touch, a technology that senses the
difference between a tap and a press and allows users to access controls within apps. Apple Watch
enables users to communicate from their wrist, track their health and fitness through activity and
workout apps and includes Siri and Apple Pay. In September 2018, the Company introduced Apple
Watch Series 4, with a new design including a larger display and thinner case, and featuring new health
monitoring capabilities.

Other
The Company also sells AirPods, Beats® products, HomePod, iPod touch and other Apple-branded and
third-party accessories.
AirPods are the Company’s wireless headphones that interact with Siri. In February 2018, the Company
released HomePod, a highfidelity wireless smart speaker that interacts with Siri and Apple Music.
LIST OF DIRECTORS

There are currently 8 members on Apple’s board of directors.

1. Tim Cook, The Chief Executive Officer

2. Arthur D. Levinson, Chairperson and CEO of Genentech

3. James A. Bell, Former CFO and President of The Boeing Company

4. Albert A. Gore Jr. Former Vice President of the United States

5. Robert A. Iger, Chairman and CEO of The Walt Disney Company

6. Andrea Jung, President and CEO of Grameen America

7. Ronald D. Sugar, Former Chairman and CEO of The Northrop Grumman Corporation

8. Susan L. Wagner, Co-founder and Director of BlackRock