Apple inc

History 1976-1978
• Wozniak and Jobs form the Apple Computer Company on April Fool's
Day.
• Wozniak and Jobs finish work on a preassembled computer circuit board.
It has no keyboard, case, sound or graphics. They call it the Apple® I.
• The Apple I board is released for sale to hobbyists and electronics
enthusiasts at the price of $666.66.
• Apple's first formal business plan sets a goal for sales to grow to $500
million in ten years. As it turns out, the company will pass that mark in
half the time.
• Apple I computer boards are sold through 10 retail stores in the U.S.
• Apple moves from Jobs' garage to a building on Stevens Creek
Boulevard in Cupertino, California.
• The new Apple® II is unveiled at the first West Coast Computer Fair. It is
the first personal computer able to generate color graphics and includes
a keyboard, power supply and attractive case.
• The Apple logo as seen today is designed by Rob Janoff, art director for
Regis McKenna Advertising.
• Regis McKenna Advertising launches its first ad campaign for Apple.
Although advertising is initially aimed at electronics enthusiasts, Apple
will soon become the first company to advertise personal computers in
consumer magazines.
• Monthly orders reach a $1 million annual sales rate.

http://www.apple-history.com/frames/?
 History 1978
• Apple introduces various interface cards for connecting
to most printers.
• Apple's Disk II® is introduced at the Consumer
Electronics Show. It is the easiest to use, lowest priced,
and fastest mini-floppy disk drive ever offered by a
computer manufacturer. It will make possible the
development of serious software. Production at first is
handled by just two employees, turning out 30 drives a
day.
• In only its second year, Apple is one of the fastest
growing companies in America. Sales have increased,
and its dealer network has grown to over 300.
 History 1979-1981
• Apple's first printer, the Silentype®, is introduced.
• Apple opens a manufacturing plant in Carrollton, TX. Apple facilities
now occupy more than half a million square feet of floor space in the
U.S. and Europe.
• Apple goes public. Morgan Stanley and Co. and Hambrecht & Quist
underwrite an initial public offering of 4.6 million shares of Apple
common stock at a price of $22 per share. Every share is bought
within minutes of the offering, making this the largest public offering
since Ford went public in 1956.
• Apple's employee count breaks 1,000.
• Apple's distribution network is the largest in the industry-800
independent retailers in the U.S. and Canada, plus 1,000 outlets
abroad.
• Apple's first mass storage system, the 5MB ProFile(tm) hard disk is
introduced, priced at $3,499.
• Apple becomes a household name. Surveys show that public
awareness rose from 10 percent to 80 percent in 1981.
 History 1982-1985
• Apple Dot Matrix printer introduced for $2,195.
• Apple becomes the first personal computer company to reach $1
billion annual sales rate. It throws a "Billion Dollar Party" for
employees.
• Apple University founded to provide employee training programs.
• Apple enters the Fortune 500 at number 411 in under five years.
• EVA (Employee Volunteer Action) is created to match the skills of
Apple employees with community needs.
• Apple is elected to the Consumers Digest Hall of Fame for
responsiveness to consumer needs.
• Apple II receives the 1984 Industrial Design Excellence Award (IDEA)
sponsored by the Product Industrial Designers Society of America.
• Apple announces a computer training scholarship program for
elementary and secondary school educators.
 History 1986-1990
• Apple announces plans to create an independent software company,
to be known later as Claris.
• For the first time, Apple uses its HyperCard technology to distribute a
1987 HyperCard supplement on diskette for Macintosh personal
computers.
• Apple files suit against Microsoft and Hewlett-Packard to protect its
Macintosh audio visual display. The lawsuit is seen as having industry
wide implications regarding copyright laws.
• Apple reports first billion dollar quarter in its history as net
income rises 108 percent.
• Apple reports net sales of $4.07 billion and net income of $400.3
million for fiscal year 1988.
• Apple acquires Coral Software Corp., which markets programming
languages and artificial intelligence tools for Macintosh computers.
• Apple introduces 32-Bit QuickDraw(tm) that allows Macintosh
personal computers to process and display photo-quality documents,
images and visualizations with exceptional color clarity.
• Apple donates $2 million in computers to 23 schools to help at-risk
students.
• Fiscal 1990 revenues surpass $5.5 billion.
 History 1991-1995
• Apple announces it will restructure the company over the next
12 months to reduce operating expenses. Apple's workforce is
reduced approximately 10 percent.
• Apple and IBM sign a letter of intent to cooperate on major
technology initiatives for the 1990s.
• Apple, IBM, and Motorola finalize milestone technology
alliance.
• Apple announces a new Token Ring 4/16 NB Card, for the
Macintosh product line. It is the first product to emerge from
Apple and IBM alliance.
• Apple and Kodak announce that they are working together to
integrate support for Photo CD images into future versions of
QuickTime.
• The U.S. Environmental Protection Agency officially releases
the Energy Star emblem for display with energy-efficient
computers and peripherals. Apple has more than 20 products
that meet the EPA's the technical requirements.
• Apple's Macintosh celebrates 10th birthday!
 1996- 2001: Apple's
Renaissance
• The iMac, iBook, and Power Mac G4
• In 2001, Apple introduced MAC OS X, an
operating system based on NeXT’s NeXT step
 and the Free BSD kernel.
• announced the opening of a line of Apple retail
stores,
• in October 2001, Apple introduced its
first iPod portable digital audio player. The iPod
started as a 5 gigabyte player capable of storing
around 1000 songs.
 Apple in 2002 to present
• in late 2003, Apple opened its first Apple Store abroad,
in Tokyo's Ginza district.
• 2004, however, was a turning point for Apple. After creating a
sizable financial base to work with, the company began
experimenting with new parts from new suppliers. This was why
Apple was able to produce new designs so quickly over a short
amount of time, with the release of the iPod Video, then the iPod
Classic, and eventually the iPod touch and iPhone. Each Apple
product thus far has been under equally high demand. The positive
experimentation with the iPod led Apple to enter the market of high-
end products with the successful iPhone and their newest creation
the iPad.
• On January 10, 2006, Apple released its first Intel
chip computers, 
• Between early 2003 and January 2006, the price of a
share of Apple's stock increased more than tenfold,
from a little more than US$6 per share (split-
adjusted) to more than US$80 per share. On January
13, 2006, Apple's market cap surpassed that of Dell.
• On February 7, 2007, Apple indicated that it would be
willing to sell music on the iTunes store without digital
rights management protection
Mission Statement (actual)
Apple ignited the personal computer revolution in
the 1970s with the Apple II and reinvented the
personal computer in the 1980s with the
Macintosh. 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.
 External Audit
Opportunities
• Increase in worms and
viruses on PCs.
• Large population (Gen X&Y)
which are extremely
individualistic and name
brand conscious.
• Weak ties with Microsoft
products.
• Downloadable music and
MP3 players are highly
marketable.
• Increase sales of computers
online by 25 percent.
• Increase sales of laptops by
20 percent.
Threats
• Companies not seeing Apple
as compatible with their
software.
• Dell and HP are major
competitors.
• Increasing competition with
music downloads.
• Dell does not invent but
provides computers at a more
cost effective rate for
customers.
• Recession—price of Apple
computers are higher.
• Intel’s future Pentium release.
CPM – Competitive Profile Matrix
Apple Computer Market Dell
Critical Success Weight Rating Weighted Rating Weighted Rating Weighted
Factors Score Score Score
Market Share 0.10 1 0.10 3 0.30 4 0.40
Price 0.10 2 0.20 3 0.30 4 0.40
Financial Position 0.15 3 0.45 2 0.30 3 0.45
Product Quality 0.15 3 0.45 2 0.30 4 0.60
Consumer Loyalty 0.15 4 0.60 2 0.30 3 0.45
Advertising 0.04 2 0.08 3 0.12 3 0.12
Management 0.06 4 0.24 3 0.18 3 0.18
Global Expansion 0.06 2 0.12 2 0.12 3 0.18
Innovation 0.14 4 0.56 2 0.28 2 0.28
Web Development 0.05 3 0.15 2 0.10 3 0.15

Total 1.00 2.95 2.30 3.21

 Internal Audit
Strengths Weaknesses
• iTunes Music Store is a good • Weak relationship with Intel and
source of revenue, especially Microsoft.
with the iPod and the availability • Weak presence in business arena.
on Windows platform. • Dependency on new product
• Developing own software and launches.
hardware. • Weak presence in markets other
• Apple’s niche audience provides than education and publishing.
the company with some • Slow turn around on high demand
insulation from the direct price products.
competition.
• Revamping desktop and
notebook lines.
• Web technology can be used to
improve product awareness and
sales.
• Low debt—more maneuverable.
• Good brand loyalty.
 Net Worth Analysis
SE + Additional paid in capital + retained earnings 4,095M + 119M +2,325= 6.5B
9/28/02 Net income x 565M x 5 = 325M
Share price (10/17/03)/ EPS (10/17/03) x avg. net income (3years)
[22.75/ 0.49] x 275M =
12.7B
Number of shares outstanding x share price
358,958,989 x 22.75 = 8.1B
Method average = 6.9B
 SWOT Matrix
S-O Strategies
• Increase awareness through the web
of the immunity of Mac products to
worms and viruses. (S5, O1)
• Advertise using individuals that will link
Generation X & Y to the iTunes and
other related products. (S1, O2, O4,
O5, O6)
• Using movies and music groups that
are geared towards Gen X and Y to
promote computers and laptops. (S3,
S5, O2, O5, O6)
S-T Strategies
• Increase and promote the compatibility
to Window operating system. (S5,T1)
• Promote the originality of Apple
computers and the different style and
stable system that is slightly more but
worth the price difference in style,
stability and speed. (S2, S5, T2, T4,
T5)
W-O Strategies
• Increase ties with Microsoft and
Intel and their products.(W1, W2,
W4 O2, O3)
• Promote to business the safety of
having a worm and virus free
computer by using Mac. (W2, W4,
O1, O5, O6)
W-T Strategies
• Improve relationship with Microsoft
and Intel so that companies will
see them as compatible. (W1, W2
T1)
• Increase productivity and turn
around of high demand products
to compete with Dell and HP (W5,
T2)
 Objectives and Goals
• Over the next 3-4 years Apple would like
to increase their product accessibility (new
stores).
• Increase their market share by 30%
• Eliminate the need for new products in
order to raise sales.