APPLE INC PRESENTATION

Group Members :
Vanita
Them
Mary
Tebby
Gibril
Sophia
AGENDA

Case summary

In-dept Analysis

Apple Today

Suggestion
 APPLE’S FOUNDERS

Steve Jobs Steve Wozniak

1955 - 2011
 FROM BEGINNING…
1976 - 1985

Apple II - 1978
Apple I - 1976

Jobs’s 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 JOBS’S 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 eMac
v
e Music Strategy (iTunes)
r Lifestyle Strategy
g Video Strategy (iMovie) Adding Value
e
n Internet Strategy (iTools)
c Digital Hub
e iMac
 Major Competitors
Products competitors

PC IBM, Dell, Acer, HP, Lenovo

iPod series Samsung , SanDisk , Creative, Microsoft

Zune, Napster Amazon.com, Napster

iPhone series Samsung, Google, Motorola

iPad Amazon’s kindle, Dell, HP, Samsung

Operating system Microsoft windows, Android OS, Linux

Geographic Revenue Breakdown 2011
Sales

Asia pacific
22%

Americas
43%
Japan
7%

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
Entering
markets
after
they’ve
Differentiated
developed
business
models
 Five Forces Analysis
New Entrants
Bargaining power of the suppliers Threat of new entrants-Low

Low- Large no. of suppliers capital intensive industry

High substitutability Market power is needed

Forward integration is difficult Existing rivalry in Lower net margin

the industry- High
Highly competitive
market
Price features based Customer
Supplier competition
Online music source Bargaining power of buyers
available Moderate to high
Small stylish MP3
players available 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 Apple’s revenues
 Robust outlook for mobile advertising market
provides growth opportunity
 Shipment of smartphones expected to be 850
million by the end of 2013
 iPhone business continues to increases
 Strongest player in mobile apps market (350,000
apps)
 Mobile advertising market is forecast to reach
approximately $25 billion by 2015
 Increasing demand of online music and other like  Intense competition
cloud based services.
Threats
 Rising popularity of Google
Android may affect its market
share
 - 350,000 Android smartphones
are activated daily, 150,000
iPhone activated daily
 - Steve Job’s was innovative and
a visionary for Apple. His death
may affect further developments
in Apple
 Very reliant on specific suppliers
and component providers
 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 You can create amazing

photos, apps, doc, calendar documents and presentations
s and access songs on on your iPhone, iPad, and iPod
iTunes without having them touch. And now with
to store in the phone’s iCloud, you can keep your
memory. work up to date across all
your iOS devices. You don’t
have to save your work or
transfer any files. And it’s free
with iOS 5.

http://www.apple.com/iphone/icloud/
http://www.youtube.com/watch?v=DCjeSNomXrU
On October 4, 2011,
Apple announced Price
$199 16GB
$299 32GB
the iPhone 4S $399 64GB

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

August 1, 2011, Apple On 20th December February 23, 2012, acquired

acquired C3 Technologies 2011, acquired Anobit Chomp for US$50 million
US$267 for $390 million
 Recent Acquisitions (con’t)
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 Chomp
•Israeli manufacturer of flash •is a search engine that finds the app
you want
memory founded in 2006
•Founded in 2009
•Hq -Herzliya, Israel •Hq- San Francisco, USA
•Anobit provides flash storage •Apple has acquired Chomp, a search
solutions for enterprise engine designed to find and discover
apps for iPhone, iPad and Android.
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
company’s solutions for the
iPhone, iPad and MacBook
Air product lines to boost
memory perforamnce
 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

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
http://www.apple.com/ipad/ 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(南太子湖)

Wailing from the residents

 Labor problem doesn’t 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 didn’t 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 Apple’s
strategy?

2. What would you do next if you were

responsible for Apple?

3. What lessons can other companies

learn from Apple’s strategies over the
years?