1. APPLE INC PRESENTATION
Group Members :
Vanita
Them
Mary
Tebby
Gibril
Sophia

2. AGENDA
Case summary
In-dept Analysis
Apple Today
Suggestion

3. APPLE’S FOUNDERS
Steve Jobs Steve Wozniak
1955 - 2011

4. FROM BEGINNING…
1976 - 1985
Apple II - 1978
Apple I - 1976
Jobs’s resign - 1985
Mancintosh - 1984

5. … 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

6. 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

7. iPod
2001: iPod - icon of the Digital Age
2003: iTunes desktop software and
iTunes Music Store were introduced

8. iPhone
Jan 2007: Apple Inc.
June 2007: iPhone – Invention of
the year
2008: App Store

9. iPad
Netbook killer
Drive new consumer behavior

10. In-Depth Analysis of Inc.

11. 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.”

12. 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

13. 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

14. Geographic Revenue Breakdown 2011
Sales
Asia pacific
22%
Americas
43%
Japan
7%
Europe
28%

15. Geographic Revenue Breakdown 2012
Sales
Asia pacific
29%
Americas
38%
Japan
8%
Europe
25%

16. Strategy
Making
markets
vs. addressing
markets The Cool
Factor
Vertical
integratio
n
Entering
markets
after
they’ve
Differentiated
developed
business
models

17. 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

18. SWOT ANALYSIS
Strengths Weaknesses
 Well recognized ,product differentiation  Patent infringement lawsuit may
unique design, easy to use products affect financial condition and
operating results
 4th largest player in the global mobile phone
market  -January 2010, Nokia filed law suit for
 Strong brand image, Brand stability ,High patent infringement with US ITC
brand loyalty
 Product recalls, defects may harm
 Robust financial performance reputation and as significant
warranty and other expenses
 Focused R&D driving innovation Holds 5%
market share in mobile phone market  - 2010, antennae problems in iPhone
4- replacements free of charge
 18.5% market share of global smartphone
market
 Complete hardware/software package

19. SWOT ANALYSIS
Opportunities Threats
 Strong growth in smartphone and tablet  Rising popularity of Google
markets to boost Apple’s revenues Android may affect its market
share
 Robust outlook for mobile advertising market
provides growth opportunity  - 350,000 Android smartphones
are activated daily, 150,000
 Shipment of smartphones expected to be 850 iPhone activated daily
million by the end of 2013
 - Steve Job’s 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

20. Apple Inc
Apple Inc Today

21. 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.

22. 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

23. 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/

24. 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

25. Recent Acquisitions (con’t)
C3 Technologies Anobit Chomp
•A 3D mapping company •Israeli manufacturer of flash •is a search engine that finds the app
•Based in Sweden, new name “Apple you want
Sputnik division”
memory founded in 2006
•Founded in 2009
•3 employees of C3 have joined Apple •Hq -Herzliya, Israel •Hq- San Francisco, USA
Inc •Anobit provides flash storage •Apple has acquired Chomp, a search
• CEO – Mattias Astrom solutions for enterprise engine designed to find and discover
•CFO – Kjell Cedestrand apps for iPhone, iPad and Android.
and mobile markets, based
• PM – Ludrig Emgard
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

26. 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

27. 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

28. Suggestion:
+ -
Apple should change its Ego-Centric Personality
now!

29. Apple Supply Chain Issue
Apple's supplier draw controversies in China
Apple Crisis Management
EX: in 2010 July, Wrong price tagging event

30. 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

31. Wrong price tagging

32. Environmental pollution
Lake Southern Prince(南太子湖)
Wailing from the residents

33. 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.

34. 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.

35. 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?