WAC Presentation

Apple Inc. Case

Group 12
Divya Priyanka Sinha
Gunajit Brahma
Jaipal Charan
Rajat Shuvra Sen
Rohit Bele
Sankar Nath Dutta
Soham Roy
Apple’s History
• Founded by Steve Jobs and Steve Wozniak on April
fool’s Day, 1976
• First product computer circuit board that was named
The Apple I
• On 1978 launched an easy to use computer called
Apple II.Become industry leader with $1billion sales.
• Challenge from IBM and Intel during 1981
• Introduction of Macintosh on 1984
• Faced issues like slow processing speed and lack
of compatible software
• 62% reduction in net income from 1981 to 1984
• Steve Job was forced out of Apple on 1985
• John Sculley ,a former Pepsi executive was
appointed as CEO
Steve Jobs and the Apple’s
turnaround
• Under the leadership of Steve Jobs Apple
decided to invest $ 150 million for a five year
commitment with Microsoft in developing
core products like Microsoft Office, for the
Mac
• With the introduction of iMac in 1998,
Apples’ sales outpaced the industry’s
average.
The personal Computer
Industry
• The emergence of ‘Wintel’ computers,
Windows OS plus Intel chips, dominated the
industry initially.
• During 2000 portable PC represented 50%
share of global shipment and a new
subcategory of Netbooks was launched
which drive down the average selling price of
portable computers
Buyers and Distributors
• Home
• Small and medium size business
• Corporate
• Education
• Government
PC Manufacturers
• Top four PC vendors; HP, Dell, Acer and
Lenovo accounted for 55% of the worldwide
shipments
• Acer and Lenovo were emerging market
players which entered into PC market through
strategic acquisitions
• On the other hand China based Lenovo
entered into the PC market through acquisition
of loss making IBMs PC business
Moving beyond the
Macintosh
• Apple’s shift towards a digital hub strategy
was initiated by the debut of the iPod in
2001, followed by the iPhone in 2007 and
then the iPad in 2010.
The iPod sensation
• Ipod set apple on its explosive growth path.
The iPod was initially one of many portable
digital players based on the mp3 standards
• Many analysts also believed that the iPod
“HALO” effect had benefited Apple’s Mac
business.
• Within the iPod product line the Touch was
Apple’s premier device.
iTunes
• By February 2010 it had sold 10 billion songs
and featured the World’s largest music
catalogue.
• Before the advent of iTunes, Apple sold and
average of 113000 iPod per quarter. After
iTune’s launch iPod sales shot up to 733000
units and exploded thereafter
iPhone
• Analysts estimated that Apple generated ASP
$562 from its iPhone’s while competitor’s ASP
on similar handsets ranged between $300 to
$400
• AT&T agreed to an unprecedented revenue
sharing agreement with Apple, this gave
Apple control over iPhones’ distribution,
pricing and branding. The first generation of
iPhones sold at about 6 million units.
App Store
• The Apple’s App store was introduced as
part of iTunes. 3rd party developers as well
as consumers welcomed the launch. The
popularity of App Store was stunning.
• In about 18 months 4 billion applications had
been downloaded by iPhone and iPod touch
users worldwide.
iPad
• The launch of the iPad in 2010 was yet
another bold move by Apple to redefine an
industry. It was positioned between a
Smartphone and a laptop computer.
• Apple took a somewhat different approach to
the iPad compared to the iPod and the
iPhone.
Occasional Failures
• Apple also dealt with certain failures with
living up to the expectations.
• One was the Mac Mini, which was an entry-
level desktop, but with limited features which
resulted in failure.
• The other disappointment was Apple TV,
which was a set-top box which could not
connect with the customers