BUSINESS

ECONOMICS
Topic – monopolistic
competition
APPLE INC
 Name – Shravani Sumukh Bapat
Class- fy b.com
Div – A
Roll no – 30
Email Id – 30shravanibapat@gmail.com
Contact no- 830011903

Project by - Subject – Economics

Name of Subject Teacher – Saloni Joshi
Name of Co-ordinator – Dr .Deepa Sathe
Date of Submission – 3 june 2022
 INDEX
Sr no. Title
1 Introduction
2 Historical Background of the Organization
3 Case Evaluation
4 Conclusion
5 Reference
 INTRODUCTION
 Apple is an American corporation that develops and sells computer electronics,
software, personal computers and portable devices internationally. Founders Steve
Jobs, Steve Wozniak and Ronald Wayne established Apple in 1976, with its
incorporation in 1977. Apple has a history that spans over 30 years, and during that
time the company has experienced its ups and downs in financial performance. It
was after 2007 when Apple finally achieved widespread success with the launch of
the iPhone, the iPod touch and the iPad. It is traded on the NASDAQ under the
ticker AAPL. It is also a part of the NASDAQ-100 and S&P 500. The Organization
Today As of August 2012, Apple has 393 retail stores in fourteen countries. Apple is
also the third-largest mobile phone maker after Nokia and Samsung. Recently, it
introduced a variety of new products such as the iPhone 5, iPad mini, iPad 4 and the
All-new iMac. The reported net income of the fourth quarter is about 24% higher
than that in the year-ago quarter. Sales of iPhones represent 58% unit growth over
the year-ago quarter. However, those high numbers in earnings have not met
investors’ expectations. The share price of Apple dropped after the fourth quarter
earnings report and also recently following the iPad mini launch.
 HISTORY OF APPLE COMPANY
 Apple Inc., formerly Apple Computer, Inc., is multinational corporation  that creates 
consumer electronics, personal computers, servers, and computer software, and is a digital distributor
 of media content. The company also has a chain of retail stores known as Apple Stores. Apple's core
product lines are the iPhone smartphone, iPad tablet computer, and Macintosh computer line.
Founders Steve Jobs, Steve Wozniak, and Ronald Wayne created Apple Computer Co. on April 1,
1976, to market Wozniak's Apple I desktop computer,[1] and Jobs and Wozniak incorporated the
company on January 3, 1977,[2] in Cupertino, California.
 For more than three decades, Apple Computer was predominantly a manufacturer of personal
computers, including the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and low
market share during the 1990s. Jobs, who had been ousted from the company in 1985, returned to
Apple in 1997 after his company NeXT was bought by Apple.[3] The following year he became the
company's interim CEO,[4] which later became permanent.[5] Jobs subsequently instilled a new
corporate philosophy of recognizable products and simple design, starting with the original iMac in
1998.
 With the introduction of the successful iPod music player in 2001 and iTunes Music Store in 2003,
Apple established itself as a leader in the consumer electronics and media sales industries, leading it
to drop "Computer" from the company's name in 2007. The company is now also known for its iOS
 range of smart phone, media player, and tablet computer products that began with the iPhone,
followed by the iPod Touch and then iPad. As of June 30, 2015, Apple was 
the largest publicly traded corporation in the world by market capitalization,[6] with an estimated
value of US$1 trillion as of August 2, 2018.[7] Apple's worldwide annual revenue in 2010 totaled
US$65 billion, growing to US$127.8 billion in 2011 [8] and $156 billion in 2012.[9]
 ACHIEVEMENTS
 Achievements of the Apple Inc company
 When we look into the success of Apple Inc, it is inevitable to fail to notice its success in the computer industry. It
has taken the computer and music gargets as well as software’s into a higher level than before. The company has
achieved this through the quality products in the market from the company. One of the factors behind the success of
the organization is the adequate understanding of the customer needs and working hard to achieve them. The success
of the organization can also be credited to the hardworking and skills of the founder Steve Jobs (Paul 2003, P.146).
The organization has also contributed immensely to offering fresh graduates a platform to develop their skills in the
line of technology. From the humble start by the founder Steve Jobs; it gives new people (employees) in the
organization the urge to work hard for better achievements in one's career. Despite the death of the founder, the
organization is continuing to perform in the market. This is due to the effective way of leadership that was laid by
Steve.
 The organization selection criterion for new or experienced employees is varied. However, there are some attributes
that are considered vital at Apple. These are high esteem, confidence, ability to come up with innovations and a great
team player. The company does not have set up committees to come up with new ideas. Rather, the employees meet
every morning to brain storm and come up with new ideas (Gitman et al 2009, P.284). The HR policy states that,
‘give the company necessary personnel that will ensure perfect performance’. Employees at all times should aim for
the highest quality in everything they do. This will promote internal career progression (Ireland et al, 2008 P .56).
Where else will a new graduate want to work at if not at Apple Inc.? This is admirable as a new employee will be able
to settle down and get on with business fast. Various careers can be expounded through the company ranging from the
sales and marketing employees and the software developers. It gives challenging environments to new graduates'
which is an advantage as they develop as well as putting their knowledge into practice'. Through their products, they
have managed to make their customers life easier (Gitman et al 2009, P.456). For example, the iPhone is a
combination of a mobile phone, iPod and interment communications device.
 PRICING STRATEGY
 Apple is a well-known household name today and most all households own at least one Apple device. In
2013, Apple’s CEO Tim Cook told Bloomberg Businessweek, “We never had an objective to sell a low-cost
phone. Our primary objective is to sell a great phone and provide a great experience, and we figured out a
way to do it at a lower cost.”
 Steve Job’s original strategy for apple was founded on the following four principles:
 Offer a small number of products
 Focus on the high end
 Give priority to profits over market share
 Create a halo effect that makes people eager for new Apple products
 Apple’s pricing strategy relies on product differentiation, which focuses on making products unique and
attractive to its consumer base. Apple has been successful at differentiation and thus creating demand for its
products. This combined with their brand loyalty, allows the company to have power over their pricing. By
establishing the loyal customer base and keeping their prices high, Apple has set up an artificial barrier to
entry for their competitors.
 Apple utilizes a minimum advertised price, or MAP, retail strategy. This strategy prevents retailers from
pricing their Apple products below the MAP. By ensuring the price for Apple products never drop below a
specific price, Apple can maintain their product popularity. This enables Apple to keep its distribution
channels clear while ensuring their profits don’t see a decrease. This all lends hand to keeping Steve Job’s
original strategy in place, which was creating premier products that sell for premium prices.
 MARKETING PROBLEM IN APPLE
 One of the most serious problems that apple Inc is facing and which to a large extent
contributes to the occasional failures of the company is a marketing problem due to stiff
competition in the industry. Initially, Apple was dealing with Macintosh computers
when it started facing stiff competition from other PC manufacturers such as IBM.
Later on, Apple decided to shift from PC industry into mobile phone industry.
 The company wanted to go beyond Macintosh computers and embrace a digital hub
strategy. This shift was marked by the introduction of iPod in 2001 and the iPhone in
2007. Later in 2010, the company introduced the iPad. After these developments the
company changed its name from Apple computers to Apple Inc. one of the
distinguishing features of Apple Inc iPods is the iTunes software that they incorporated
(Yoffie and Kim 9).
 Despite the success of the iTunes Apple Inc has enjoyed, it has had strained
relationships with content companies. These companies are in strong opposition of the
fact that Apple Inc has dominated the digital music market and its structure of fixed
prices.
 In addition, music labels are seeing the threat posed by Apple Inc because there high
priced CDs are being faced out of the market. Apple Inc faces strong competition from
online music stores such as Napster, amazon.com and Walmart.com which often
inconveniences the marketing strategies of company.
 INNOVATIONS
 Apple is widely considered as the #1 innovative company in the world. The company’s innovation strategy
 involves terrific new products and innovative business models.
 The company delivers consumers with a succession of presents – great software in fabulous hardware in
beautiful packaging (“really good ideas wrapped up in other really good ideas,” as Michael Lopp, senior
engineering manager at Apple puts it). Apple also pioneers into a new business spaces and creates new
market niches. The company createdgame-changing innovations such as the iPod, iTunes, iPhone, and iPad.
 Apple innovation leaders think in terms of platforms and pipelines and relentlessly push the pace of
innovation. Competitors that chase Apple's latest release find themselves behind when just a few months
later Apple introduces its latest and greatest offering.
 Focusing on where they can make a significant contribution Apple hires → great innovators who want to
make the best things in the world.
 Innovative Business Models
 Apple doesn’t just focus on building innovative and beautiful products. It builds innovative business models
 too. The iPod and iPhone would not have had nearly as much impact if they hadn't been matched with
iTunes and the App Store respectively... More
 Apple’s Innovation System
 Apple’s commitment to innovation is cultural, not process driven. The most successful products at Apple
were started with only a few people with no formal structure or hierarchy and little corporate oversight. Yet,
“to turn really interesting ideas and fledgling technologies into a company that can continue to innovate for
years, it requires a lot of disciplines,” advised → Steve Jobs. Apple has built an effective innovation system
 to harnesses creativity in its people, stimulate new ideas, streamline the design process, and launch
successful, profitable new innovations.
  
BALANCE SHEET
LAST YEAR
BALANCE SHEET
LAST YEAR
ASSET AND
LIABILITY
BALANCE SHEET
MAIN COMPETITORS OF APPLE IN
SMARTPHONE MARKET
 Apple is the second largest smartphone company in the world. iPhone is one of its main products.
However, it faces a number of powerful competitors in the global smartphone markets. According to
StatCounter (2021), its global market share is 26.91% and its main competitors and their global
market shares are as follows: Samsung: 29.14%
 Xiaomi: 10.02%
 Huawei: 09.83%
 Oppo: 5.02%
 It is worth mentioning that Apple is the market leader in the USA with 61.07% market share, while
Samsung is in the second position with 24.12% market share. Apple’s other three big competitors in
the country are LG, Motorola, and Google. Apple is also the market leader in the UK with 50.85%
market share, and its two nearest competitors are Samsung, and Huawei.
 Needless to say that an epic war is at play between Apple and Samsung. Long ago, Samsung was a
supplier of Apple; however, it decided to challenge the latter. This infuriated the then Apple boss
Steve Jobs who announced launching ‘thermonuclear war’ on Android, the operating system used in
Samsung phones (Cain, 2020). However, it seems that Samsung is undeterred and its remarkable
ability and efficiency to produce superior hardware extremely swiftly has played a big role behind its
success.
 CONCLUSION
 To sum up, Apples has a number of big global names to compete with in different
markets. Technology is changing rapidly and consumers in many countries are
becoming less brand loyal. This is changing the rule of the game. Therefore, Apple
must keep very close eyes on its competitors. Surely, there is no room for
complacency.
 Apple is very much loved by millions of customers around the world. The excellent
design of some of its products, and innovation have mesmerised many people over
the years.  However, with sales of some of its products falling, many analysts are
arguing that Apple is no longer innovative. They point out that Apple has not
brought anything new in some of its key products in the last few years.
 Absence of innovation is a big problem in the world of information technology, and
this may give Apple’s competitors an upper hand.  Therefore, Apple must now focus
on bringing about innovative products and adding fundamentally new features to
some of its products. Otherwise, the prospect of losing further market share is real.

 REFERENCE
 https://en.wikipedia.org/wiki/Apple_Inc.
 https://www.apple.com/newsroom/pdfs.