APPLE INC PRESENTATION

Group Members :
Vanita Them Mary Tebby Gibril Sophia

AGENDA
Case summary In-dept Analysis

Apple Today
Suggestion

APPLES FOUNDERS

Steve Jobs 1955 - 2011

Steve Wozniak

FROM BEGINNING
1976 - 1985

Apple II - 1978 Apple I - 1976

Jobss resign - 1985 Mancintosh - 1984

 TO THE STRUGGLE
1985 - 1996
Mid of 1990s: Declined sales and profit

Powerbook -1991 By 1990: Apple was the most profitable PC company in the world

http://en.wikipedia.org/wiki/PowerBook_100 http://en.wikipedia.org/wiki/Wintel

NEW BEGINNING FROM STEVE JOBSS RETURN

1997: Apple joined Microsoft to release new versions of Microsoft Office for the Macintosh 1998: Introduced iMac and gained

profit

iPod

2001: iPod - icon of the Digital Age

2003: iTunes desktop software and

iTunes Music Store were introduced

iPhone
Jan 2007: Apple Inc. June 2007: iPhone Invention of the year

2008: App Store

iPad

Netbook killer

Drive new consumer behavior

In-Depth Analysis of

Inc.

VISION AND MISSION

VISION Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them. MISSION Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.

Value Creation Process

Apple I,II,III

Mac

Focus On Education

C o n v e r g e n c e

eMac
Music Strategy (iTunes)
Video Strategy (iMovie) Internet Strategy (iTools)

Lifestyle Strategy

Adding Value

Digital Hub

iMac

Major Competitors
Products PC iPod series iPhone series iPad competitors IBM, Dell, Acer, HP, Lenovo Samsung , SanDisk , Creative, Microsoft Zune, Napster Amazon.com, Napster Samsung, Google, Motorola Amazons kindle, Dell, HP, Samsung

Operating system

Microsoft windows, Android OS, Linux

Geographic Revenue Breakdown 2011

Sales
Asia pacific 22% Americas 44%

Japan 6%

Europe 28%

Geographic Revenue Breakdown 2012

Sales

Asia pacific 29%

Americas 38%

Japan 8%

Europe 25%

Strategy
Making markets vs. addressing markets The Cool Factor

Vertical integratio n

Differentiated business models

Entering markets after theyve developed

Five Forces Analysis

Bargaining power of the suppliers Low- Large no. of suppliers High substitutability Forward integration is difficult

New Entrants
Threat of new entrants-Low capital intensive industry

Market power is needed

Existing rivalry in the industry- High

Highly competitive market Price features based competition Online music source available Small stylish MP3 players available

Lower net margin

Supplier

Customer Bargaining power of buyers Moderate to high High elasticity of demand Peer to peer file sharing is possible Big dealers can pressurise to reduce cost

Substitute products & services Moderate Alternatives are available

Substitutes

SWOT ANALYSIS
Strengths
Well recognized ,product differentiation unique design, easy to use products 4th largest player in the global mobile phone market Strong brand image, Brand stability ,High brand loyalty Robust financial performance Focused R&D driving innovation Holds 5% market share in mobile phone market 18.5% market share of global smartphone market Complete hardware/software package

Weaknesses
Patent infringement lawsuit may affect financial condition and operating results -January 2010, Nokia filed law suit for patent infringement with US ITC Product recalls, defects may harm reputation and as significant warranty and other expenses - 2010, antennae problems in iPhone 4- replacements free of charge

SWOT ANALYSIS
Opportunities
Strong growth in smartphone and tablet markets to boost Apples revenues Robust outlook for mobile advertising market provides growth opportunity Shipment of smartphones expected to be 850 million by the end of 2013

Threats
Rising popularity of Google Android may affect its market share

- 350,000 Android smartphones are activated daily, 150,000 iPhone activated daily

- Steve Jobs was innovative and iPhone business continues to increases a visionary for Apple. His death may affect further developments Strongest player in mobile apps market (350,000 in Apple apps) Very reliant on specific suppliers Mobile advertising market is forecast to reach and component providers approximately $25 billion by 2015 Increasing demand of online music and other like Intense competition cloud based services. Highly dependent on consumer purchases

Apple Inc
Apple Inc Today

Apple Inc (as of September 2011)

*364 retail stores in thirteen countries e.g 33 UK , 22 Canada etc

*60,400 permanent full-time employees *2,900 temporary full-time employees 1 Infinite Loop Cupertino, California 95014 United States of America Read more:
http://en.wikipedia.org/wiki/Apple_Inc.

Steve launched iCloud June 2011 With iCloud users can store photos, apps, doc, calendars and access songs on iTunes without having them to store in the phones memory. You can create amazing documents and presentations on your iPhone, iPad, and iPod touch. And now with iCloud, you can keep your work up to date across all your iOS devices. You dont have to save your work or transfer any files. And its free with iOS 5.

http://www.apple.com/iphone/icloud/

http://www.youtube.com/watch?v=DCjeSNomXrU

On October 4, 2011, Apple announced the iPhone 4S

http://www.apple.com/iphone/compare-iphones/ http://www.apple.com/iphone/

Price $199 16GB $299 32GB $399 64GB

Recent Acquisitions

August 1, 2011, Apple acquired C3 Technologies US$267

On 20th December 2011, acquired Anobit for $390 million

February 23, 2012, acquired Chomp for US$50 million

Recent Acquisitions (cont)

C3 Technologies A 3D mapping company Based in Sweden, new name Apple Sputnik division 3 employees of C3 have joined Apple Inc CEO Mattias Astrom CFO Kjell Cedestrand PM Ludrig Emgard Anobit
Israeli manufacturer of flash memory founded in 2006 Hq -Herzliya, Israel Anobit provides flash storage solutions for enterprise and mobile markets, based on its proprietary MSP (Memory Signal Processing) technology. Its solutions are designed to improve the speed, endurance and performance of flash storage systems while driving down the cost. Apple relies on the companys solutions for the iPhone, iPad and MacBook Air product lines to boost memory perforamnce

Chomp is a search engine that finds the app you want Founded in 2009 Hq- San Francisco, USA Apple has acquired Chomp, a search engine designed to find and discover apps for iPhone, iPad and Android.

2012 - iBooks
iBook Author iBooks Textbook

On January 19, 2012, Apple's Phil Schiller introduced iBooks Textbooks for iOS and iBook Author for Mac OS X in New York

The new iPad

http://www.apple.com/ipad/

The 3rd generation iPad was announced on March 16, 2012 With the Retina Display feature, text, photos, videos are rich in detail, color more vibrant 44% better color saturation than the iPad 2 Lighter battery that iPad2 reducing the weight of tablet 5mp isight camera with advanced optics Ultrafast 4G LTE connects to fast data networks around the world

Suggestion:
+ -

Apple should change its Ego-Centric Personality now!

Apple Supply Chain Issue

Apple's supplier draw controversies in China

Apple Crisis Management

EX: in 2010 July, Wrong price tagging event

Sweatshop (Labor Problem)

"Apple takes working conditions very, very seriously. We care about every worker. No one in our industry is doing more to improve working conditions than Apple." Tim Cook, CEO, Apple

Wrong price tagging

Environmental pollution

Lake Southern Prince()

Wailing from the residents

Labor problem doesnt belong to Apple : exclusively, why do people act so dramatically against us? Apple has the influence, economically and otherwise. So we anticipate much more from you.

First Step: Put out the fire in China

:
We didnt shirk from the responsibilities which belong to the supplier in the first place.

Carefully clarify the responsibilities and win supports from more people.

1 . What do you think of Apples strategy? 2. What would you do next if you were responsible for Apple? 3. What lessons can other companies learn from Apples strategies over the years?