MINOR PROJECT REPORT

ON

APPLE INC.

Submitted in Partial Fulfilment for the Award of the

Degree of bachelor of business administration 2019-2022

SUBMITTED BY
ARYAN CHAWLA
04214901819

DEPARTMENT OF BUSINESS ADMINISTRATION

Maharaja Surajmal Institute

C-4, Janak Puri, New Delhi, Delhi 110058

Affiliated To: Guru Gobind Singh Indraprastha University

(Recognized by UGC U/S 2/F)

 ACKNOWLEDGEMENT

Exchange of ideas generates a new object, which helps a person to work in a better
way. When a person is helped and provided guidance by others, his heart is found to
pay gratitude and commutative appreciation.

This report bears the imprints of many people for this I first express my deep sense of
gratitude to our PROJECT GUIDE; MR.JASBIR DESHWAL has been a constant
source of inspiration to us.

I express my profound sense of gratitude to my guide, for all the encouragement and
inspiration given to me during the preparation of this report and having made valuable
critical comment on it.

I would be failing from my duties if I do not express my gratitude all my faculty

members, for all the encouragement and inspiration given to me during the preparation
of the project report and for their valuable teaching and guidance throughout.
 CERTIFICATE

This is to certify that the project titled “A STUDY ON MARKETING

STRATEGIES OF APPLE IN INDIA ” is an academic work done by
“ARYAN CHAWLA” submitted in the partial fulfilment of the requirement
for the award of the degree of BBA from Maharaja Surajmal Institute, Delhi,
under my guidance & direction. To the best of my knowledge and belief the
data & information presented by him/her in the project has not been
submitted earlier.

DR. JASBIR DESHWAL

 PREFACE
This project report has been prepared as per the requirement of the
syllabus of BBA cou rse stru cture und er wh ich th e stud en ts are th e
required to undertake project.

It was a first hand experience for us as that we were exposed to the

professional set-up and were facing the market, which was really a great
experience.

During project period, I had very touching experiences. When business is

involved, experiences counts a lot, as we know, experience are an instrument,
which leads toward success.

Now I take this opportunity to present the project report and sincerely hope that it
will be as much knowledge enhancing to the readers as it was to use
during the fieldwork and the compilation of the report.
 TABLE OF CONTENTS
CHAPTER NO. PARTICULARS PAGE NO.
1. INTRODUCTION
OBJECTIVES OF STUDY 7
RESEARCH METHODOLOGY 7
LIMITATIONS 7
2. COMPANY PROFILE
ABOUT THE ORGANISATION 9-10
APPLE PRODUCTS 10-13
CRITICISM OF APPLE 13-15
VISSION AND MISSION 15-16
HISTORY OF COMPANY/LEADERSHIP 16-24
SWOT ANALYSIS 24-26
3. ANALYSIS AND INTERPRETETION
MARKET SHARE 28
GROWTH RATE 29-30
MARKET STRATEGIES 31-36
SURVEY CONDUCTED 37-43
FINDINGS AND SUMMARY 44
4. CONCLUSION AND RECOMMENDATIONS
RECOMMENDATIONS 48
CONCLUSIONS 49

BIBLOGRAPHY
ANNEXURE
 CHAPTER 1
INTRODUCTION
 OBJECTIVE OF THE PROJECT REPORT
➢ To study the history of APPLE.INC.

➢ To study the strength, weakness and threats that APPLE faces.

➢ To find out the customer satisfaction level through questionnaire.

➢ To study different sales strategies of APPLE.

RESEARCH METHODOLOGY

➢ Sources of data: - PRIMARY DATA AND SECONDARY DATA

➢ a) Primary data: Primary data for the study is been collected from consumers of APPLE Product users.

➢ b) Secondary data: This research has been based on secondary data sources which were subject related the
source used were books, journals, newspapers and website.

For this report both PRIMARY METHOD and SECONDARY METHOD of data collection has been used.

Limitations

• Time factor was the main limitations for the study as the project was restricted to small period.
• Since the project has to be completed within a short period of time the information collected could be
biased.
• The questionnaire did not cover the whole aspect of the market potential of APPLE Products.
 CHAPTER 2
COMPANY PROFILE
ABOUT THE ORGANIZATION

Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that
designs, develops, and sells consumer electronics, computer software, and online services. It is considered
one of the Big Five technology companies, alongside Microsoft, Amazon, Google, and Facebook.

The company's hardware products include the iPhone smartphone, the iPad tablet computer, the Mac
personal computer, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media
player, the AirPods wireless earbuds and the HomePod smart speaker. Apple's software includes macOS,
iOS, iPadOS, watchOS, and tvOS operating systems, the iTunes media player, the Safari web browser, the
Shazam acoustic fingerprint utility, and the iLife and iWork creativity and productivity suites, as well as
professional applications like Final Cut Pro, Logic Pro, and Xcode. Its online services include the iTunes
Store, the iOS App Store, Mac App Store, Apple Music, Apple TV+, iMessage, and iCloud. Other services
include Apple Store, Genius Bar, AppleCare, Apple Pay, Apple Pay Cash, and Apple Card.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell
Wozniak's Apple I personal computer, though Wayne sold his share back within 12 days. It was incorporated
as Apple Computer, Inc., in January 1977, and sales of its computers, including the Apple II, grew quickly.
Within a few years, Jobs and Wozniak had hired a staff of computer designers and had a production line.
Apple went public in 1980 to instant financial success. Over the next few years, Apple shipped new
computers featuring innovative graphical user interfaces, such as the original Macintosh in 1984, and
Apple's marketing advertisements for its products received widespread critical acclaim.
However, the high price of its products and limited application library caused problems, as did power
struggles between executives. In 1985, Wozniak departed Apple amicably and remained an honorary
employee, while Jobs and others resigned to found NeXT

As the market for personal computers expanded and evolved through the 1990s, Apple lost market share to
the lower-priced duopoly of Microsoft Windows on Intel PC clones. The board recruited CEO Gil Amelio to
what would be a 500-day charge for him to rehabilitate the financially troubled company— reshaping it with
layoffs, executive restructuring, and product focus. In 1997, he led Apple to buy NeXT, solving the
desperately failed operating system strategy and bringing Jobs back. Jobs pensively regained leadership
status, becoming CEO in 2000. Apple swiftly returned to profitability under the revitalizing Think different
campaign, as he rebuilt Apple's status by launching the iMac in 1998, opening the retail chain of Apple
Stores in 2001, and acquiring numerous companies to broaden the software portfolio. In January 2007, Jobs
renamed the company Apple Inc., reflecting its shifted focus toward consumer electronics, and launched the
iPhone to great critical acclaim and financial success. In August 2011, Jobs resigned as CEO due to health
complications, and Tim Cook became the new CEO. Two months later, Jobs died, marking the end of an era
for the company. In June 2019, Jony Ive, Apple's CDO, left the company to start his own firm, but stated he
would work with Apple as its primary client.

Apple is well known for its size and revenues. Its worldwide annual revenue totaled $265 billion for the
2018 fiscal year. Apple is the world's largest technology company by revenue and one of the world's most
valuable companies. It is also the world's third-largest mobile phone manufacturer after Samsung and
Huawei. In August 2018, Apple became the first publicly traded U.S. company to be valued at over
$1 trillion.The company employs 123,000 full-time employees and maintains 504 retail stores in 24
countries as of 2018. It operates the iTunes Store, which is the world's largest music retailer. As of
January 2018, more than 1.3 billion Apple products are actively in use worldwide. The company also
has a high level of brand loyalty and is ranked as the world's most valuable brand. However, Apple
receives significant criticism regarding the labor practices of its contractors, its environmental practices
and unethical business practices, including anti-competitive behavior, as well as the origins of source
materials.

APPLE PRODUCTS
Macintosh
iMac: Consumer all-in-one desktop computer, introduced in 1998.
Mac Mini: Consumer sub-desktop computer, introduced in 2005.
MacBook Pro: Professional notebook, introduced in 2006.

Mac Pro: Workstation desktop computer, introduced in 2006.

MacBook Air: Consumer ultra-thin, ultra-portable notebook, introduced in 2008.
Apple sells a variety of computer accessories for Macs, including Thunderbolt Display, Magic Mouse,
Magic Trackpad, Magic Keyboard, the AirPort wireless networking products, and Time Capsule.

iPod
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 390 million units have shipped as of September 2015.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.

In late July 2017, Apple discontinued its iPod Nano and iPod Shuffle models, leaving only the iPod Touch
available for purchase

iPhone

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

At the Macworld Conference & Expo in January 2007, Steve Jobs introduced the long-anticipated iPhone,
a convergence of an Internet-enabled smartphone and iPod. The first-generation iPhone was released
on June 29, 2007, for $499 (4 GB) and $599 (8 GB) with an AT&T contract. On February 5, 2008, it was
updated to have 16 GB of memory, in addition to the 8 GB and 4 GB models. It combined a 2.5G quad
band GSM and EDGE cellular phone with features found in handheld devices, running a scaled-down
version of OS X (dubbed iPhone OS after the launch and later renamed to iOS), with various Mac OS X
applications such as Safari and Mail. It also includes web-based and Dashboard apps such as
Google Maps and Weather. The iPhone features a 3.5-inch (89 mm) touchscreen display,
Bluetooth, and Wi-Fi (both "b" and "g

A second version, the iPhone 3G, was released on July 11, 2008, with a reduced price of $199 for
the 8 GB model and $299 for the 16 GB model.[258] 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 Aprovided iPhone-
compatible applications to download. On April 24, 2009, the App Store surpassed one billion
downloads 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
redesigned iPhone 4. It featured a 960 × 640 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. On October 4, 2011, Apple unveiled the iPhone 4S, which was
first released on October 14, 2011. It features the Apple A5 processor and Siri voice assistant
technology, the latter of which Apple had acquired in 2010 from SRI International Artificial
Intelligence Center.

iPad
On January 27, 2010, Apple introduced their much-anticipated media tablet, the iPad.It offers
multi- touch interaction with multimedia formats including newspapers, e-books, photos,
videos, music, word processing documents, video games, and most existing iPhone apps using a
9.7-inch screen.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.AT&T was initially the
sole U.S. provider of 3G wireless access for the iPad
iPad Air 2 in gold
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. The availability of the iPad 2 was initially limited as a result of a devastating earthquake
and tsunami in Japan in March 2011.

The third-generation iPad was 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.
Apple Watch

The Apple Watch quickly became the best-selling wearable device, with the shipment of 11.4
million smart watches in the first half of 2015, according to analyst firm Canalys.[
The original Apple Watch smartwatch was announced by Tim Cook on September 9, 2014,
being introduced as a product with health and fitness-tracking] It was released on April 24,
2015.

The second generation of Apple Watch, Apple Watch Series 2, was released in September 2016,
featuring greater water resistance, a faster processor, and brighter display. It was also released
alongside a cheaper Series 1.

On September 10, 2019, Apple introduced the Apple Watch Series 5, featuring a new
magnetometer, a faster processor, and a new always-on display. The Series 4 was discontinued.

Apple TV
At the 2007 Macworld conference, Jobs demonstrated the Apple TV (Jobs accidentally referred
to the device as "iTV", its codename, while on stage), a set-top video device intended to bridge
the sale of content from iTunes with high-definition televisions.The device, running a variant of
Mac OS X, links up to a user's TV and syncs over the wireless or wired network with one
computer's iTunes library and can stream content from an additional four. The Apple TV
originally incorporated a 40 GB hard drive for storage, included outputs for HDMI and
component video, and played video at a maximum resolution of 720p.On May 30, 2007, a 160
GB hard disk drive was released alongside the existing 40 GB model. A software update
released on January 15, 2008, allowed media to be purchased directly from the Apple TV

In September 2009, Apple discontinued the original 40 GB Apple TV but continued to produce
and sell the 160 GB Apple TV. On September 1, 2010, Apple released a completely redesigned
Apple TV running on an iOS variant and discontinued the older model, which ran on a Mac OS
X variant. The new device is one-fourth 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 downloaded media. Like the iPad and the iPhone,

Software
Apple Worldwide Developers Conference is held annually by Apple to showcase its new
software and technologies for software developers.
Apple develops its own operating systems to run on its devices, including macOS for Mac
personal computers, iOS for its iPhone, iPad and iPod Touch smartphones and tablets, watchOS
for its Apple Watch smartwatches,and tvOS for its Apple TV digital media player.
For iOS and macOS, Apple also develops its own software titles, including Pages for writing,
Numbers for spreadsheets, and Keynote for presentations, as part of its iWork productivity suite.
For macOS, it also offers iMovie and Final Cut Pro X for video editing,and GarageBand and
Logic Pro X for music creation.
Apple's range of server software includes the operating system macOS Server;Apple Remote
Desktop, a remote systems management application; and Xsan, a storage area network file
system.
Apple also offers online services with iCloud, which provides cloud storage and synchronization
for a wide range of user data, including documents, photos, music, device backups, and
application data, and Apple Music, its music and video streaming service.

CRITICISM AND CONTROVERSIES OF THE COMPANY

Though Apple is one of the biggest and most admired companies in the world, it has never been
far from controversy.

From clashing with rival companies and authorities to criticisms over work conditions, here are
seven of the biggest controversies to hit Apple over the years.

1. Holy War on Google

As part of a court case between Apple and Samsung in 2014, an email from Steve Jobs came to
light that showed the Apple co-founder wanted to wage a “Holy War” with rival technology firm
Google, as he looked to push Apple to compete with Google in every way possible.

Before his death in 2011, Jobs also said that if Google ever copied any of Apple’s designs he
would go “thermonuclear” on the company.

2. Anti-competitive
The Apple insistence, driven by Jobs, that the company has complete control over its products
from start to finish has led to claims of anti-competitive behaviour.

Apple’s sealing of some products, including the 2012 MacBook Pro with Retina display,
which was heavily, physically sealed, was criticised for locking out customers and
eliminating their ability to self- repair.

In the early days of iTunes, the European Union also raised concerns over restrictions Apple
placed on sales from the iTunes Store, which were dictated by the country the user’s payment
details were based in, leading to cases where some paid higher prices.

3. Adobe Flash
Apple caused a stir on both the iPhone and iPad when with the launch of iOS 4, when the use of
programs written in coding languages not approved by Apple was prohibited – one of which was
Abode Flash – meaning the program that powered many animations and videos on websites at
the time would
not work on Apple’s mobile products.

Adobe called the move anti-competitive as it forced many developers to reconsider using the
program if they wanted Apple users to see their content.

4. Foxconn
The majority of Apple’s product assembly takes place in China through contractors, and there
have been several investigations that allege staff are forced to work in “sweatshop conditions”,
with further allegations of a spate of suicides linked to exhausted staff emerging in 2010.

Apple has since introduced yearly auditing that it says monitors working and living conditions,
though concerns remain in some quarters.

5. Tax
Like many large multinational corporations, Apple has been accused of using tax shelters in
order to protect its revenues.

The company has been accused of using Ireland and Luxembourg to get tax breaks, allegations
which the European Commission is investigating. Chief executive Tim Cook called the move
“political crap” in a recent interview.

6. Patent wars
In an on-going battle with Samsung, Apple has been locked in a host of patent infringement
lawsuits and counter suits with the Korean technology giant over the alleged copying of designs
for smartphones.

Apple has attempted to have some Samsung’s removed from sale in the US, while a recent 120
million US dollar ruling in favour of Apple has since been overturned in the US Court of
Appeals. Another case is due to go to the Supreme Court shortly.

7. FBI and encryption

Apple’s most recent battle came with the US government and FBI. The latter asked the US
Department of Justice to force Apple to help law enforcement unlock the iPhone of a terror
suspect.

Apple refused on privacy grounds, adding that any work done to weaken encryption on this one
device could be applied anywhere, thus weakening iPhone security as a whole.
Cook called the demand “chilling” and a breach of customer privacy, before the FBI used a third
party to gain access and dropped the court proceedings.

MISSION AND VISON OF THE ORGANISATION

Apple Inc.’s Mission Statement and Vision Statement (An Analysis)
Apple corporate mission statement, corporate vision statement, consumer electronics,
computer technology, cloud services business case study
Some of Apple’s products. Apple Inc.’s corporate vision statement and corporate mission
statement align to support the company’s success in the computer technology, consumer
electronics, and online digital services industries. (Photo: Public Domain)
Apple Inc.’s mission statement and vision statement are bases for the company’s success as one
of the most valuable businesses in the world. Established in 1976, the firm has become a symbol
of innovation and elegance in design. This condition supports the brand, which is one of the
major business strengths identified in the SWOT analysis of Apple Inc. The company’s corporate
mission and vision statements motivate employees to support and contribute to innovation for
competitive advantage. Apple Inc.’s generic strategy and intensive growth strategies define such
competitive advantage, especially to counteract the effects of competitors like Samsung, Google,
Amazon.com, Dell, Lenovo, Sony, and PayPal. Apple has changed its corporate vision and
mission statements over time, to reflect changes in the company from the time of Steve Jobs to
the current leadership of Tim Cook. The vision statement and mission statement now represent
the company’s efforts in addressing business opportunities in the computer technology, consumer
electronics, cloud computing, digital distribution services, and semiconductors industries.

Apple Inc.’s corporate mission and corporate vision are linked in terms of how they push for the
company’s continuous growth despite challenges in the competitive landscape. Considering the
variety of industries where the business operates, it is essential that the diversity of strategic
approaches for these industries be embodied in the corporate mission and the corporate vision.
Porter’s Five Forces analysis of Apple Inc. shows that the business deals with strong competition.
The company must ensure that its mission statement defines the strategies to keep the business
competitive. In relation, Apple’s vision statement must direct business efforts toward a future of
leadership in the global market.

Apple’s Corporate Mission Statement

Apple Inc.’s corporate mission has changed over time. The company considers the changing
business landscape, which influences the possibilities of what the business can do. The
company recognizes the changing market and industry environment. Apple’s current mission
statement is as follows:

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

Apple’s Corporate Vision Statement

Apple Inc.’s corporate vision influences strategic management in terms of the decisions that the
company’s managers make to reach a future of leadership in the various industries where the
business operates. Apple introduced a new vision statement under the leadership of Tim Cook,
who stated the following:

"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."

HISTORY OF APPLE
FOUNDING MEMBERS:
Apple Inc. was incorporated by Steve Jobs and Steve Wozniak in 1976. However, it took around a
years’ time for the founders of Apple Inc. to get it registered as a company in the United States.
Prior or to January 1977, Apple Inc. was an idea started as a random, but the commercial effort to
secure this idea was made on January 3, 1977. The place where this wonderful idea was
registered was Cupertino, California.

DIFFERENT PHASES OF THE HISTORY OF APPLE INC.:

Here are the different phases of the history of Apple Inc.:

EARLY PHASE OR PRE-FORMATION STAGE OF APPLE:

This was the time when both the Steves who founded the company actually met. Both of them
completed their degrees in 1975 from different colleges. But one of the things that were common
in both of them was their aptitude for technology. Both of them had a keen interest in how the
existing things worked and how could they be improvised in order to generate better working
technology for themselves.
FORMATION OF COMPANY AND APPLE 1:
Both Steves had the idea about the creation of computers but they could not commercialize,
especially at a large scale without any orders or investment. So, one of the first orders that
Steve Jobs managed to get was from a local computer store. The terms of this order are
particularly interesting.

ORDER GENERATION:
There was no sample available with Steve Jobs to show the history of Apple Inc. or the products
that he or his team could make. But he entered in an arrangement where a working computer was
acceptable by the management of the local store. The condition was that if Steve Jobs and his
team really managed to relate something workable, the local store would buy 50 more pieces
from them at a rate of $500 each. This was a huge amount at that time, so the deal was finalized.

PROCUREMENT:
But now the question was where they would get the spare parts for making the machines. In
order to resolve this problem, Steve Jobs went to Cramer Electronics. For them relying on a
random individual was not possible. But when he showed his order slip and asked to get the
spare parts on a 30-day credit term, the credit manager agreed, and he was able to procure all
the necessary parts that were required for the initial creation of the computer. This was the
initiation of the soon to be a billionaire company. The best part of this setting was the strategy
used by the partners to finance their computers. They did not have to give away any of the
shares or stock holdings to anyone but still managed to get the necessary financing.

STRUGGLE DURING THE PHASE:

Despite getting the initial 50 orders from Byte store, it wasn’t possible for both the partners to
create their own vicinity or factory line where they could manufacture the computers. So one of
the things that they did was borrowing the space from mutual friends, and selling a number of
electronic and technology goods at varied rates. However, this was not a feasible model for the
company to flourish. This is why Steves tried to get loans from the bank for this purpose.
Neither the banks one the individual lenders were willing to provide funds for the project that
no one was willing to use. You’ll have to be in the shoes of the people of the 70s decade to
relate to this point.

There was no scope of using computers at a personal level at that time. Even the businesses
weren’t used to have computers. The conglomerates’ or the large organizations were the
legitimize users of the computers. So investing in the creation of computers seemed absurd to
the users.
ENTRY AND EXIT OF RONALD WAYNE:

Initially, Ronald Wayne also became the partner of the company. It was the time when both the
Steves, Wayne and Mike Mark Kula were able to find a bank loan and signed it together. They
were the initial days of the company, and its ups and downs in the company were the part of the
routine. However, Wayne did not want to be a part of the company with high risk and left the
business at quite an early stage. Such a setting left both the Steves to be the prominent and active
partners of the venture.

APPLE 2:
Once the formal company was established and it had enough money to manage the computers in
a better way, Wayne wanted to introduce new features to the computers. These computers were
named as Apple 2. Most of the design features that Apple 1 had been due to the limited
resources available with the owner. As soon the resources issues were settled, Wayne
experimented the inclusion of new features that could offer better functionality.

This was the time when the company made direct contact with the public. West Coast
Computer Fare was chosen for this purpose, which was a two day fair for highlighting the
different types of computers. This fare came with huge success for the company because this
was the place where a Japanese chemist got impressed with the design and features of Steve
Jobs and Steve Wozniak. He was the first authorized dealer of Apple 2in Japan.

APPLE 3:
This version of Apple computers was released in 1980. It was by far the most sophisticated
version and was intended for the business users. One of the design innovations that the managers
and the creators of Apple 3 introduced was the removal of cooling fan from the hardware
components. The main idea was that Apple computer would dissipate the amount of heat
generated through chassis. But this did not work as planned. The removal of fan and no proper
working of chassis for the removal of extra heat resulted in the creation of disintegration of the
chips from the motherboard.

There was a definite resentment in the people who were using this version of Apple computers.
The people who were asking for the solutions to fix the problem were asked to lift up the
computer six inches and then leave it. The purpose of such a rash treatment was to allow the
integrated circuits to get back to the original position.

If you are finding such a solution funny, it actually was! You wouldn’t have seen it coming from
one of the best companies in the IT sector today. The history of Apple contains a few such
incidents that could actually provide you with the struggling stories that Apple had to face in
order to reach the current level.
NEXT VERSIONS OF APPLE:
We are not going to get in detail for every version of Apple computers that were previously
produced. The new technology and the features were constantly included in the computers to
create a good brand reputation in the market. The brand name that Apple created for itself in the
initial days helped in the creation of the competitive advantage, making the company stand out
from the other companies existing at that time.

As we mentioned in the above section that the third series of Apple computers had the problem.
So it would be appropriate to mention Apple 4 here. Apple 4 came with a solution to the
problem that was being faced by the users of Apple 3. This new version was released in 1983.
Although, it was a good measure to manage the problems created the previous version with
problems made the users skeptical about the company already.

INITIAL PUBLIC OFFERING OR IPO:

One of the milestones in the history of Apple Inc. is its initial public offering or IPO. The
company became available for the public to invest in it in 1980. The IPO was far more successful
in comparison to some of the leading brands that existed in the market at that time. One of the
examples was Ford’s iPod. Apple’s IPO generated a huge sum of investment, which triggered a
new era in the history of Apple.

One of the important things that you would want to know from the first meetings with the
shareholders is that Steve Jobs wanted to deliver a great speech about the company and its
products etc. But as there were too many interruptions, he left this idea and started talking about
the emotional content. That speech had a great audience. And he became prominent for his
public speaking skills at that time too.

1984 AND THE SUCCESS OF APPLE:

After the formal iPod, changes with the design of the computer and inclusion of a number of
technologies in the creation process of the computer and the computer itself, Apple Inc. quite
prominent in the industry.

ROLE OF ADVERTISEMENT:
It was the first time in 1984 when Apple released its first TV commercial. By spending a lot of
money for this purpose, Apple Inc. managed to spend $1.5 million to air the commercial in the
third quarter of Super Bowl XVIII.

Additionally, 1984 did not only mark the history of video commercials, but the magazine
advertisements also got a prominent place in the history of Apple. The post-election edition of
Newsweek was all booked by Apple. Yes, all of it. It was a huge investment and had an
important role in establishing the image of the company at that time. You can surely say that
this was the era when Apple started its branding formally and started taking out the campaigns
to generate one in the best possible way.

The purpose of going for extreme marketing was the launch of Macintosh. Because of the best
commercial aired two days earlier to the launch, the new product of the company received a
great response from the buyers as well. However, for a particular part of the audience, the new
Macintosh was a toy. The reason for such a statement was that there was no backend interface
where users could make changes. It was all about the graphical user interface. This is what
created problems for some of the users.

APPLE WITHOUT STEVE JOBS:

In the growth phase of a company, it has to face a number of challenges. One of the most
prominent ones is to manage growth. The increasing number of individuals associated with the
business can have different visions, and that creates a conflict in governing the company. It was
being faced by Apple in 1985. President Steve Jobs wanted to work on Macintosh and provide it
as the solution to the business whereas the aim of CEO Sculley had an inclination towards the
Apple 2 generation computers.

Although initially it was agreed that company will go with the Macintosh division. But at the end
when it failed, it improved the position of Sculley in the company.

Jobs had no influence left in the company, so he decided to set part his ways from the company.
Once Jobs left the company, he started investing in other technological companies. Many of
those companies have the importance in terms of existence, but none of them made it to
commercial success.

HISTORY OF APPLE: 1985 – 1977:

When the original founder of the company left Apple Inc. Sculley was the first boss that the
company had. In the consequent year of his leadership, the company declared a dividend that
showed the maintenance of the high standard. In the next year, the stock was split by the ratio
2:1. Till 1989, five different acquisitions were made by Apple Inc., thus adding to the success of
the company.

Moreover, the Macintosh and Apple 2 range both were continued under the leadership of
Sculley in order to enhance the profit. However, the newer versions and features was another
thing that the company had to incorporate in the business line. This is why new versions of the
existing computer ranges became a part of the company.

Even the Mac, which was performing less than Apple 2 range of computers but still it, was
establishing itself as a special division in the company. Premium and latest versions of this range
of computer were also being introduced in the market, targeting the business users. According to
MacAddict magazine, the period of 1989 to1991 was considered as the first golden age of the
Macintosh range of computers.

ADAPTATION OF APPLE TO THE INTERNET:

Internet, which was one of the newer products at that time, had a place for Apple or you can
say that Apple capitalized the opportunity and became one of the 100 companies to buy
the .com extension domain. For most of you, it won’t come with a surprise, if we would say that
the existing apple.com domain is about 32 years old.

THE DOWNFALL OF THE COMPANY:

The study of the history of Apple shows that like most of the companies, Apple has faced the
upstream and downstream as in the entire journey as well. By 1996, the great reputation that the
company was building up over time seemed to halt. There were no new products in the market.
Moreover, the existing products were facing immense competition from the other companies
existing in the market. It seemed difficult that with the same situation, Apple computers would
be able to secure their position in the industry for the long run. But that was not the end of the
company.

REHIRING OF STEVE JOBS:

In 1977, Steve Jobs came back to Apple Inc. as an interim CEO. On his return, he started
restructuring the company. And this restructuring was on a massive level. When he rejoined
Apple, he made significant changes to the structure of the company. Moreover, changes in the
governance were also made. This helped in generating the success, which is extending till date.

The creation of Apple Store, new and latest version of the personal gadgets, partnership with
Microsoft. All of these ventures was part of the leadership of Steve Jobs. He actually brought
back the company from its down phase to the success again. The history of Apple was
transformed once again. In August 2011, he resigned from the position of CEO because of his
health condition. Later, in October he died dealing with pancreatic cancer.

HISTORY OF THE COMPANY: 1977- 2011:

This version of Apple company is what most of you would have often read about. From the
introduction of Apple Watches and sophisticated technology in personal gadgets, this era of
Apple and its product brought real glory to the company. The extended version of this era is
what we are seeing even today.
Leadership
Jobs’ vs. Sculley’s Strategies

Jobs’ Strategies
Strategy: Steve Jobs was obsessed with producing high-quality products and
revolutionary design. In creating his products, Jobs emphasized technical elegance,
industrial design and “ease of use; user-friendly” functionality. Jobs hired British designer
Jonathan Ive, who became the head of Apple’s in-house Industrial Design group and was
chiefly responsible for the beautiful design of the company’s products. Jobs vocally and
ideologically opposed the groupthink mentality, once saying that “it’s better to be a pirate
than join the navy.” Steve Jobs’ mentality established a company culture among
employees focused on “changing the world.” Furthermore, Jobs focused on pushing the
company to innovate, also famously saying that “innovation distinguishes between a
leader and a follower.” His strong drive towards innovation is what has ultimately
differentiated Apple most from its competitors.
Along with an emphasis on innovation, Jobs further restructured Apple by
outsourcing manufacturing to Taiwan and scaling down the distribution system by ending
relationships with smaller outlets. He increased direct Apple sales by launching a new
website to increase direct sales of Apple products and creating unique retail stores, as
well as a build-to-order manufacturing strategy.

Rationale: Jobs was focused on differentiating Apple by emphasizing design and user-
interface. He began with designing the Macintosh to be the best personal computer,
something that was easy to use and appealed to the everyday consumer. The theme of
ease-of-use for the everyday consumer continued on with the iPod, iPhone, and iPad.
Jobs wanted to eradicate any trace of groupthink because he felt that it was
counterproductive to the company’s drive to innovate and “think different.”

Results:
Under Jobs’ leadership, several revolutionary products were brought to market:
• The iPod/iTunes revolutionized how people listened to and purchased music
• The iPhone basically created the mobile platform (apps etc.) and invented the idea of
the smartphone.
• The iPad revolutionized how people browsed the web
Because of Jobs’ emphasis on creativity and innovation, not only did Apple actually
innovate more than any of its competitors, but it also spent the least on R&D (2.24% of
revenues in 2011, which equals $2.4 billion) in comparison to its competitors (Microsoft:
12.93% of 2011 revenues, totalling $9.0 billion) (Google: 13.62% of revenues totalling
$5.1 billion). Apple became the most valuable public company of all time, reaching a peak
market cap of $700 billion in February 2015.
Sculley’s Strategies
Strategy: Sculley redesigned Apple’s business strategy under Jobs by attempting to reduce costs. Products were
no longer high-priced because Sculley transitioned Apple into producing a low-cost product with a mass-market
appeal in order to directly compete with IBM.

Rationale: Sculley believed that high cost of products prevented future growth for a company. Lower prices
would open up a new target segment that was more price-sensitive but still wanted to experience Apple’s
innovations and style. In other words, Sculley rationalized that affordability was more important to customers.

Results: Sculley’s strategy was a blatant failure that resulted in “dismal sales and declining net income.” The
brand image and mystique of Apple had nearly disappeared. With the face/brains, of Apple gone, Microsoft
leapt ahead with its GUI based operating system.

Is Apple the same without Jobs?

Apple will never be the same without Steve Jobs, its chief visionary and innovator. Jobs was a leader and
personality that defined Apple’s culture of innovation and “thinking differently,” one who had the vision to
create products that would change the world. Ultimately, this is what would set Apple apart from its competitors,
which began competing with Apple by creating their own versions of Apple’s revolutionary products. Under the
leadership of Tim Cook, the company’s new CEO, Apple has seen continued success, and in the eyes of
consumers, it still has the same mystical, revolutionary brand image that Jobs had left behind. The question of
whether Apple will still be able to be revolutionary, however, is a difficult one to answer. In the years since Jobs’
passing, Apple has continued to grow in both sales and profitability, becoming the highest-valued company on
Earth and reaching revenues that it had never seen before. Much of this continued success can be attributed to
Jobs’ pride and joy, the iPhone. The legacy that Jobs left behind in the form of the revolutionary products that he
spearheaded will continue to maintain Apple’s financial success in the near future. Furthermore, Apple still has
Jony Ive, the company’s Chief Design Officer. Ive has been responsible for much of the beautiful design of
Apple’s products, a key focus in Apple’s product strategy. As long as Ive remains with Apple, beautiful design
will continue to be a major aspect of the company’s USP. For this reason, we would still buy Apple stock right
now, betting on the continued growth of the company’s already-successful product portfolio.
SWOT ANALYSIS

Apple SWOT analysis, strengths, weaknesses, opportunities, threats, internal external factors
computer hardware software business case study

This SWOT analysis of Apple Inc. presents the strategic factors that influence the decisions of
CEO Tim Cook and managers in developing the business. With its operations in various markets
around the world, the company deals with different sets of SWOT factors based on regional
situations. Also, the Porter’s Five Forces analysis of Apple Inc. establishes that the company faces
the strong force of competition linked to the aggressiveness of other technology firms, such as
Google, IBM, Amazon.com, Samsung, Sony, Lenovo, Dell, and PayPal. This competitive
landscape requires innovative strategies and tactics to achieve continuous business growth and
development, and to fulfill Apple’s corporate mission statement and corporate vision statement.

Apple’s Strengths (Internal Strategic Factors)

This aspect of the SWOT analysis framework identifies the strengths that enable the company to
overcome weaknesses, take advantage of opportunities, and withstand threats in its business
environment. These strengths are internal factors specific to the conditions within the business
organization. In this case, the following are the most noTable strengths of Apple Inc.:
Strong brand image
High profit margins
Effective rapid innovation processes

Apple is one of the most valuable and strongest brands in the world. In the context of this SWOT
analysis, the company is capable of introducing profitable new products by virtue of its strong
brand image. In addition, Apple’s marketing mix or 4P involves the premium pricing strategy,
which comes with high profit margins. This internal strategic factor is a major strength because it
maximizes profits, even when sales volumes are limited. Moreover, the generic competitive
strategy and intensive growth strategies of Apple Inc. involve effective rapid innovation, which
enables the business to keep abreast with the latest technologies to ensure competitive
advantages. Based on this aspect of the SWOT analysis of Apple Inc., the company’s strengths
are difficult to compete with, thereby supporting continued leadership in the global industry
environment.

Apple Inc.’s Weaknesses (Internal Strategic Factors)

In this aspect of the SWOT analysis, the emphasis is on the weaknesses or inadequacies of the
company. Weaknesses are internal factors that are obstacles to business growth. The following
business weaknesses are the most notable in the case of Apple:
Limited distribution network
High selling prices
Dependence of sales on high-end market segments

Apple Inc. has a limited distribution network because of the company’s policy of exclusivity. For
example, the company carefully selects the authorized sellers of its products. The SWOT analysis
framework considers this exclusivity strategy as a factor that limits market reach. This weakness
exists despite exclusivity’s advantages, such as Apple’s strong control on the distribution of
products. In addition, because of its premium pricing strategy, the company has the weakness of
the dependence of sales on high-end market segments. High prices attract customers from the
middle- and high-income brackets, while preventing customers from low-income brackets to
easily purchase the company’s products. This internal strategic factor is a considerable weakness
because high-end market segments represent only a minority of the global market.
Based on the internal factors in this aspect of the SWOT analysis, Apple Inc.’s pricing and
distribution strategies impose limitations or weaknesses in the business.

Opportunities for Apple Inc. (External Strategic Factors)

This aspect of the SWOT analysis of Apple Inc. pinpoints the most significant opportunities that
are available to the business. Opportunities are external factors based on the industry
environment. These factors influence the strategic direction of business organizations. In Apple’s
case, the following are the most significant opportunities:
Expansion of the distribution network
Higher sales volumes based on rising demand
Development of new product lines

Apple Inc. has the opportunity to expand its distribution network. Such opportunity directly
relates to the weakness of the company’s limited distribution network. This SWOT analysis
emphasizes the need for the company to change its distribution strategy. An expanded
distribution network can help Apple reach more customers in the global market. In relation, the
company has the opportunity to increase its sales volumes through aggressive marketing,
especially for mobile products. This opportunity is linked to the rising demand for mobile
access, as illustrated in the PESTEL/PESTLE analysis of Apple Inc. Furthermore, the company
has the opportunity to explore new product lines. Its current product lines are highly successful.
However, with further innovation, the company can develop and introduce new products, like
what it has already achieved with the Apple Watch. Developing new product lines can support
business growth in the international market. Thus, this aspect of the SWOT analysis of Apple
indicates that the business has major opportunities for further growth despite aggressive
competition.

Threats Facing Apple Inc. (External Strategic Factors)

In this aspect of the SWOT analysis, the focus is on the threats that the company experiences
from various sources, such as competitors. Threats are external factors that limit or reduce the
financial performance of businesses. In Apple’s case, the following threats are the most
significant:
Aggressive competition
Imitation
Rising labor cost in various countries
Tough competition in the industry is partly because of the aggressiveness of firms. Apple
competes with firms like Samsung, which also uses rapid innovation. In the context of this SWOT
analysis, aggressive competition has a limiting effect on Apple Inc. Because of the aggressive
behaviors of competing firms, it is necessary to have strong fundamentals for maintaining
competitive advantages. In addition, the company faces the threat of imitation. This threat is
significant because of the large number of local and multinational firms that imitate the design
and features of Apple’s products. Moreover, rising labor costs involving contract manufacturers,
such as those in China, reduce profit margins or push selling prices even higher. Based on the
external strategic factors in this SWOT analysis, Apple Inc.’s performance could suffer because of
aggressive competition and imitation of product design.
 CHAPTER 3
ANALYSIS AND
INTERPRETETION
MARKET SHARE OF APPLE

Market share of Apple iPhone smartphone shipments worldwide 2007-2019

The statistic depicts the market share of Apple in regards to sales of the iPhone within the smartphone segment from
2007 to 2019. In the fourth quarter of 2019, 20 percent of all smartphones sold worldwide were an Apple iPhone.

Apple iPhone market share – additional information

Apple has been amongst the top 5 smartphone vendors in the world since 2009. With the decline of Nokia and RIM,
market leaders at one point, both Apple and Samsung grew their presence in the market. Samsung took the lead, and
has held a share of 20 to 30 percent since 2012. The Korean electronics company shipped more than 317.3 million
smartphones worldwide in 2017. Apple has consistently been Samsung’s closest competitor, maintaining the position
of second most popular smartphone vendor in the world since 2012. Apple's iPhone sales have consistently increased
over the last few years, rising from almost 170 million units in 2014 to almost 216 million iPhones sold in 2017.

Much of this recent growth can be attributed to the stable performance of the iPhone 6 and 6s, as well as the release of
iPhone 8 and 8s, as well as the full-screen iPhone X. With the introduction of these new models to the market, iPhone
sales improved considerably. Apple’s share of global new smartphone sales reached almost 19 percent in the last
quarter of 2017. The company registered a new record in terms of iPhone sales in the first quarter of 2017 (4Q '16
calendar year), with over 78 million units sold in that quarter.

MARKET SHARE APPLE 07-19

https://www.statista.com/statistics/216459/global-market-share-of-apple-iphone/
 GROWTH RATE

Apple annual/quarterly revenue history and growth rate from 2006 to 2020. Revenue can be defined as the
amount of money a company receives from its customers in exchange for the sales of goods or services.
Revenue is the top line item on an income statement from which all costs and expenses are subtracted to
arrive at net income.

Apple revenue for the quarter ending March 31, 2020 was $58.313B, a 0.51% increase year-over-year.
Apple revenue for the twelve months ending March 31, 2020 was $267.981B, a 3.67% increase year-over-
year.
Apple annual revenue for 2019 was $260.174B, a 2.04% decline from 2018.
Apple annual revenue for 2018 was $265.595B, a 15.86% increase from 2017.
Apple annual revenue for 2017 was $229.234B, a 6.3% increase from 2016.

https://www.macrotrends.net/stocks/charts/AAPL/apple/revenue
CURRENT GROWTH IN INDIA

Apple logs 71% growth in India smartphone market in Q1 2020

Apple increased its market share in India in the whole quarter, after registering over 55% growth in iPhone
shipments for the India market in January and February this year compared to the same period in 2019.

The Cupertino-based iPhone maker has seen a dramatic shift in its fortunes in India since mid-2019, with
increased ‘Make in India’ manufacturing giving the impetus required for iPhones. (REUTERS)

Buoyed by super response to its iPhone XR and iPhone 11 series, Apple logged an impressive 71% growth
(year-on-year) in India in the first quarter of 2020, a new report said on Thursday.

Apple increased its market share in India in the whole quarter, after registering over 55% growth in iPhone
shipments for the India market in January and February this year compared to the same period in 2019.

"The iPhone XR and iPhone 11 accounted for 70% of iPhone sales in India with its prudent pricing, attractive
discounts and strong shipments getting consumer acceptance," said Prabhu Ram, Head-Industry Intelligence
Group (IIG), CMR.

The Cupertino-based iPhone maker has seen a dramatic shift in its fortunes in India since mid-2019, with
increased 'Make in India' manufacturing giving the impetus required for iPhones

"In 2019, Apple's shipments grew 17% (year-on-year), on the back of the successful iPhone 11, and the iPhone
XR," said Ram.
Once the lockdown opens, the thrust on manufacturing high-end iPhones locally would give Apple a boost in the
price-sensitive smartphone market.
Given that the smartphone is an extension of one's lifestyle, affluent Indian consumers, and mostly early tech
adopters, are seeking the latest and the best.
"For instance, Apple iPhone loyalists have embraced the latest iPhone 11 Pro Max," Ram noted.
Apple is now eying to grab more India market share with the new iPhone SE which is packed with top-of-the-
line hardware and has the potential to create much room in the aggressive ₹40,000-₹50,000 segment.
MARKETING STRATEGIES

STP of Apple: Marketing Strategy/ USP

Apple is positioned as a premium brand that demands a high price but provides customers with an easy-to-use, high-
quality, and beautifully designed product. The company is targeting a less price-sensitive customer that is more concerned
with owning the best product.
Apple prides itself most of all in “changing the world” by creating the most innovative, game changing products that were
also thoughtfully designed and optimized for their intended functions.

5Cs of Apple:
Customers: Apple’s products appeal to a variety of groups with different demographics. Overall, its products are
catered toward middle/upper-class customers who are youthful, Tec savvy and have a higher willingness-to-pay
for premium products. Apple devices such as the iPad are further being integrated into the business community
due to their ubiquity and familiarity with workers, who are often consumers as well. The iPad’s unique app-based
platform allows companies to develop their own apps that cater specifically to functions that they need
performed.

Competition: Samsung, Microsoft, Google, Amazon, Blackberry, and Nokia have attempted to take market share
away from Apple:
Dell—Hardware
Google—Technology
Microsoft – operating systems
Samsung—mobile phones

*in ranking order High Quality Low Quality

High Price 1. Apple 1. Palm

2. Google
3. Blackberr
y
4. Microsoft
5. Samsung
Low Price 1. Dell 3. Nokia
2. HP

Collaborators:
•Microsoft- collaborated to make Microsoft Office application compatible with Apple Products
•LG- LCD Panels for iPhones
•Samsung- Chips used in the iPhone.
•TSMC- DRAM & Flash Memory
•Music Companies- Partnered with music label companies and artists to release and sell on iTunes
•Foxconn- Competitive pricing is enabled by the low production costs from outsourcing to FoxConn in China.
Company:

Strengths
-Leading innovator in the market
-Leaders in research and development
-Strong brand awareness, representation, and
reputation
-Strong customer loyalty
-Excellent marketing and advertising strategies
-Positioned in an accelerating growth market
-California based company, an American product
Weaknesses
-High price for products compared to other top companies
-Doesn’t work well with all other (non-Apple) additional
applications
-Many changes in management, clash of different
CEOs and company cultural norms
-Main supplier issues
-Steve Jobs was the leading innovator for Apple

Opportunities
-Continued growth and market interest in the
tablet and iPhone appliances -No restrictions in
market innovation
-Ability to target market segment’s desires for
innovation
- Expansion to more international countries
Threats
-Economic instabilities
-Other companies are catching up to Apple’s innovations
-The start-up of foreign companies that are coming out
with lower market prices
-Product differentiation is decreasing with the increase of
new product releases by competitors
-Increase of government restrictions

Context: More so than at any time in the past several years, Apple has had to deal with competition
that has begun to close the gap of differentiation that Apple had created through its products.
Continuing legal action between Apple and competitors has the potential to cost the losing side a
significant dollar loss. In the international market (particularly Asia), Apple deals with entrenched
loyalty to local brands offering similar products. Additionally, tariffs make already-expensive Apple
products even less viable to consumers in developing markets like Brazil. The existing Apple
products have come to a near plateau in developed markets, so Apple must rely on continued
innovation, new products, and new markets in order to continue expansion.
4Ps of Apple:

Products: Mix of innovative products: iPod, iPhone, iPad, and Mac. Apple also utilizes an operating system
that can be used across all Apple products.

Price: The high prices of its products and services reinforce the company’s premium brand image. Apple sets
the price of each product in its respective industry.

Place: Convenience of online-shopping at apple.com. Apple products can also be purchased at third-party
retail stores and Apple stores. The shopping experience at Apple stores is differentiated with remarkable
customer service, the Genius Bar for product troubleshooting, and hands-on display of the company’s entire
product line.

Promotion:
• Products have generally sold themselves
• Traditional advertisements (TV, print, billboards, iPod people)
• Word-of-mouth
• Cult of Apple: Loyal customers who buy all Apple products upon release
• Keynotes: Press conferences and events where Apple announces/unveils new products, product
redesigns and upgrades. Keynotes generate buzz over products, which gives Apple free advertising until the
products’ official release dates.

Brand equity in the Marketing strategy of Apple

Apple has the highest brand equity in the world as of 2016 and it is the topmost ranked brand in
the world. The brand worth of Apple is 118.9 billion dollars. The brand has done a lot to reach
this brand equity, but a major contributing factor was its ability to give hit products back to back,
and to reach across the globe with these excellent products. The combination of both with the
excellent marketing communications of the brand help Apple reach the highest brand equity
possible.
Segmentation targeting and positioning of the brand

There are three major segments which Apple targets. It generally uses lifestyle segmentation as Apple is the most
premium brand out there. The segment is usually the urban population with enough buying power for purchasing
Apple products. These are people who are early adopters in life but the brand equity of Apple is such that even
laggards have started adopting the products.

In the Marketing strategy of Apple, it has three target groups

One is the music lovers who are targeted by the Apple Ipod and Itunes.
Another target the professionals or even teenagers who are targeted for Apple Iphone, Tablets, Macbook and
other such gadgets which can be used by anyone, irrespective of age.
And third is the crowd which can use their other products and services like Apple TV and Apple Iwatch. They
also use Ibooks, Apple pay etc.

Vision in the Marketing strategy of Apple

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.

Tagline – “Think Different” is one of the best slogans in the tech industry. Many people assume that Apple
launched the slogan “Think different” in response to IBM’s slogan “Think”. However, since 2002, Apple stopped
using the slogan in its marketing. But from time to time, the slogan has bounced back on Apple’s website or in
their marketing and it has never left the mind of Apple loyal consumers.
Competitive advantage in the Marketing strategy of Apple

Apple has several competitive advantages over its competitors

Superior technology products – Macbook and Iwatch are clearly leaders in their market space because of the
OS and the technology used.
Brand equity – Apple has repeatedly taken the top spot for its brand equity and has a cult following since ages.
Revenue over time – Apple has deep pockets due to its high margins.
R&D – A major competitive advantage of Apple is the amount it spends on R&D keeping its eyes on the
future rather than on the present.
BCG matrix of Apple

When plotting the BCG matrix of Apple, the product portfolio of Apple is clearly divided into four
parts.

The Cash cows are products which are existing since ages and which cannot be challenged in the
current market conditions and have a majority market share when the global data is referred –
These are Macintosh, Iphone, Iwatch (50% market share in 2015) and Itunes (a solid support
service to all Apple products)
The stars are Ipad and Ibooks where there is a lot of competition and Apple has to invest a lot to
keep these businesses on top.
The question mark is Apple TV which has low market share in an industry which is showing
great potential and might grow at a rapid pace in the future.
The dog is Ipod because although it has a high market share, the industry itself is rapidly
degrowing because Smartphones have replaced Ipods.
Distribution in the Marketing strategy of Apple

Apple has a very smart retailing setup. It has around 450 stores within the US. And these retail outlets are
such that they are more focused in helping the customer and making him comfortable with using Apple
rather then selling the product and stuffing the product down customers throat.

Apple has also introduced the Apple Genius Bar, which is a walk-in service center and can help any
customer in problems they are facing in MacBook or iphone or ipad. Overall, the company owned Retail and
Service outlets are great.

Along with company owned stores, Apple has set trade partners like Ingram Micro and Redington which are
responsible for the sales and distribution of the brands. These trade partners will buy in bulk from the brand
and then distribute the product in the market. Thus, besides its own retail stores, Apple is found present in
other modern and premium retail stores. These stores are covered by its retail partners.

Competitive analysis in the Marketing strategy of Apple

Although on a company level there is very less competition for Apple, on product levels, there is repetitive
competition for each of its individual products. Ipad faces competition from Samsung tablets, Iphone faces
major competition from Android based phones, Macbook is facing stiff competition from Dell which also
has superior products.

The unique services offered by Apple such as Itunes also face competition from other online music players
which are cropping up every day. Ibooks faces strong competition from Amazon and even Apple TV faces
competition from Fire TV of Amazon. Samsung gear and other smart watches are rising competitors to
Iwatch although Iwatch still holds a majority market share.

Promotions in the Marketing strategy of Apple

Apple is one of the most elegant advertisers as can be seen from any of its print ads in newspapers. You will
commonly find Apple ads to be clear and crisp in their message. Their background will be white and there
will be a splash of colors on the print ad introducing the product or differentiating the product.

And that is one major strength of the brand. Apple has so many differentiation points that it can have a slew
of ads, all targeted towards differentiating the products that it is offering. Not only the print ads, even the
video ads do the same. They tell you one point which highlights the product features.
SURVEY CONDUCTED FOR CONSUMERS OF
APPLE

Ques 1. Do you own any apple product, if so list here:

a) iPhone
b) iPad
c) iMac/MacBook
d) Apple TV
e) Apple Watch
f) None
Ques 2. Are you satisfied with the price of apple products
a) Normal
b) Underpriced
c) Overpriced
Ques 3.Are apple products reliable?
a) Yes
b) No
c) Sometimes
d) Never
Ques 4.What is the most attractive feature of an apple product
a) Camera
b) Processor
c) Design
d) Screen
Ques 5.Is the apple service centre/customer care helpful?
a) Sometimes
b) No
c) Yes
Ques 6.Do you think apple products are user friendly?
a) Yes
b) No
c) Never Used any product
Ques 7.Are you satisfied with apple?
a) Yes
b) No
c) Sometimes
SUMMARIZATION AND FINDINGS OF SURVEY

A quick survey of 30 people of taken on whether they use any apple product or not and if they are
satisfied with the pricing, services and overall quality of the product.
Here are the summarized results and follow up of the survey

1. The most purchased product of apple in India is its iPhone because of its sleek style, features
,camera and processor followed by apple iPhone
2. though people considers apple products a bit overpriced but still grab them because of their
reliability and customer satisfaction.
3. Apple can expand its product range and the technology offered because of its rising competition.
4. More than 62% of total apple product users and happy and satisfied with the service offered by
the company
 CHAPTER 4
CONCLUSION AND
RECOMMENDATION
 Future Plans for Apple
Management Strategy Problem/Question:
• How show Apple respond to the constant pressure of advancing competitors?
• Where is Apple’s future growth going to come from?

Mission:
• Apple’s main mission is to maintain a competitive edge in the market. Objective:
• Apple’s goal is to improve the positioning of its computer and cellular devices, become the leading
competitive brand for those devices, and continue to be the leading brand for music devices

Company Problems/Issues:
• The market segment that Apple is competing in is growing exponentially, so Apple must be sure to
keep up with the changing technology market
• There has been an increase in the number of competitors, and these competitors have closed the
distance between their products and Apple’s
• There is a tandem management and perception issue associated with the loss of Steve Jobs as a
visionary and as a figurehead

Business Strategy Options

Option One: Pause
Stop and take time to reposition management without the need for Steve Jobs’ leadership and power ideas

Pros Cons

Encourages Apple employees to innovate
which will help break Apple’s
“reliance” on Jobs for the “next big thing”
Will show that Apple is more than just
Jobs, and that Apple can still be a leading
competitive company without his help
• Removes the “Steve Jobs” iconology of the
Apple brand, Apple relies heavily on its
unique brand position
• Does little to address current threats posed
by rising competitors
Option Two: Product Expansion “Up,” not “Out”
•Increase vertical growth of innovation instead of expanding outward and stretching its resources too thin
•Instead of creating more innovations and products, Apple could focus on upgrading their pre-existing systems.
•“Refurbishing” older products
•Building innovation based on already-existing products
•Instead of tailoring the products for personal/individual use, Apple could expand to help businesses,
organizations, or educational uses (Similar to Google and Microsoft)
•Outsource more services

Pros Cons

Will lower the costs of research and development • Loses the “innovation” of new products, USP
Will have better and faster operating systems • Loses brand positioning Doesn’t follow Steve Jobs’
within current product lines Breaks up some revolutionary image of the company
responsibilities like marketing development • Breaks one of the core value ideas by keeping
sources internal
• Focuses predominantly on market maintenance and
turns away from growth, a purely defensive strategy

Option Three: Innovation

•Diversification growth strategy
•Continue finding the “next big thing”
•Continue to make revolutionary improvements to current product lines.
•Capitalized on Apple’s strength of innovation and diversify into other markets

Pros Cons

Apple does the best (in terms of profit) • High research and development costs
when it comes out with new products and • High marketing costs
continues to innovate • Risk of failure would have a greater impact
Continue being known as a leading on company image
innovator • Greater frequency of failure
Already have strong brand representation
Ride off customer loyalty
Continue using companies strong
R&D and marketing skills
Will have possible long term benefits
RECOMMENDATIONS

The internal and external factors discussed in this SWOT analysis indicate that Apple Inc. possesses major strengths to
effectively address organizational weaknesses. The company can also use these strengths to exploit opportunities, such
as the expansion of its distribution network. Moreover, the company can use its strong brand image and rapid
innovation processes to successfully develop and launch new product lines. However, Apple faces the significant
threats of aggressive competition and imitation, which are major challenges affecting players in the global market for
consumer electronics, computer hardware and software, and online digital content distribution services.

Based on the strategic issues highlighted in this SWOT analysis of Apple Inc., a recommendation is to continue the
aggressive and rapid innovation involved in developing the company’s products. Such innovation reduces the adverse
effects of imitation on revenues. Also, it is recommended that the company further enhance the automation of its
production processes, and support the automation of its contract manufacturers, as a way of addressing the rising
labour costs involving Apple product manufacturers. Another recommendation is to establish partnerships with more
distributors to improve the overall market reach of the company’s distribution network.

The recommended strategy for Apple to take in order to maintain its growth in the future is to continue to
focus on innovation. There exists an assumption among many consumers that
Apple’s ability to innovate died with Steve Jobs. It is imperative for Apple to disprove this assumption and
maintain its brand image as a company that, more than anything, innovates and creates revolutionary
products. Innovation has defined Apple through the years and has been the main differentiating function
for the company. In order for Apple to continue to “wow” consumers with game-changing products, the
company must take advantage of its immense amount of assets and continue to invest in R&D, and, most
importantly, in new thinkers who could take the company in new directions.
 CONCLUSION

Apple Inc. is very strong in the promotion and the place. iPhone is massively marketed using online and
retail promotions. In first few years, apple smashed the whole market of the mobile phone. Apple is in
continuous efforts to lower the prices of the device to target as many possible potential buyers. One of the
major reasons which make users reluctant to buy the Apple products, in general, is the strategy of keeping
their technology closed and intact, and not allowing the developers to explore the horizons to the next
level. If Apple can stretch the iPhone product line in both ways, such as releasing the device with lower
prices with the process optimization and increased efficiency as well as coming up with the new 7
models in the upper segment of the product range to target the corporates and professionals, then it will
ensure that the company grows in terms of user base and revenues. Apple can also consider filling the
product line with the new developments in the current product mix by adding variations such as new
version with 64 or more Gigs memory, smarter and powerful camera lens technology etc. Apple strives for
the innovation and new technology; the product range Apple currently offers consists of many high end
products such as iPhone, iMac, iPad and others. Apple advertises its products massively using push and
pull promotion strategies. With the innovation, the promotion and place become one of the key platforms
to market the product to the targeted segment. To conclude, Apple is positioned as "High quality = High
price". If the company can perform at par with the striking new technology, high class design and stability,
company has a bright future in coming years. With its remarkable marketing strategy going in hand with
the powerful innovation and pioneering technology, there are lot of opportunities and market segments, in
which Apple can penetrate and secure the pole-position
BIBLOGRAPHY:

PAPERS:

Hindustan times

“Business and Marketing Analysis of Apple Inc.”

by Payam Babazadeh Kurdistani

“Apple Case Midterm”

By Jorge Gonzalez
Nathan Ong
Merveille Kazimoto
Kelsey Pearson
G rant Richman

WEBSITES:

www.statista.com
www.macrotrends.net
www.coursehero.com
https://neilpatel.com
www.marketing91.com
https://jobbuzz.timesjobs.com
https://in.investing.com
www.Wikipedia.org
ANNEXURE:
Ques 1. Do you own any apple product,
if so list here:
a) iPhone
b) iPad
c) iMac/MacBook
d) Apple TV
e) Apple Watch
f) None

Ques 2. Are you satisfied with the price

of apple products
a) Normal
b) Underpriced
c) Overpriced

Ques 3.Are apple products reliable?

a) Yes
b) No
c) Sometimes
d) Never

Ques 4.What is the most attractive

feature of an apple product
a) Camera
b) Processor
c) Design
d) Screen
Ques 5.Is the apple service
center/customer care helpful?
a) Sometimes
b) No
c) Yes

Ques 6.Do you think apple products are

user friendly?
a) Yes
b) No
c) Never Used any product

Ques 7.Are you satisfied with apple?

a) Yes
b) No
c) Sometimes