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Apple
From the iPod to the iPad
A case study in Corporate Strategy




                       Second Edition April 2012

                                   J K Ashcroft
pdate
  U
What does it tell us about
Apple corporate strategy




                             Second Edition April 2012

                                         J K Ashcroft
First a recap

The Digital Hub Strategy
2001




                     Second Edition April 2012

                                 J K Ashcroft
J K Ashcroft
Launch of the iPod




                     J K Ashcroft
Apple looking for a digital consumer device
                        Undertakes a systematic evaluation
                        of alternative product options
                        Video
                        Games
                        DVD players and recorders




                                               J K Ashcroft
using
3D market
profile

      J K Ashcroft
Launches the iPod
“Music on the move”
“1000 tunes in your pocket”




                       “so why music, we all love music
                       It’s a huge market and
                       nobody has got it right”


                                            J K Ashcroft
Music
  ticks all
  the boxes




using
3D market
profile

          J K Ashcroft
Since then ...   sales have soared




                            J K Ashcroft
profits have followed




              J K Ashcroft
as has the ROS




         J K Ashcroft
so too the share price



          and the market cap




                          J K Ashcroft
J K Ashcroft
J K Ashcroft
J K Ashcroft
“EBITDA
off the charts”




                  J K Ashcroft
Sales growth
   gets 3rd
 lease of life




                 J K Ashcroft
Time ...........
Note : [Share price = Earnings(EPS) x PE rating] ; [PE rating (f) Growth Rate]
and : [PEG ratio = PE / Growth rate] Hence rating for high growth stocks falls over time


                                                                           J K Ashcroft
575 million
 Digital Devices Sold
  iPod, iPhone, IPad




                        J K Ashcroft
J K Ashcroft
J K Ashcroft
J K Ashcroft
J K Ashcroft
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J K Ashcroft
Latest in Amsterdam
March 2012




                      J K Ashcroft
J K Ashcroft
J K Ashcroft
J K Ashcroft
auto focus
                                                       auto face detection




3.1 million pixels




                      Voice
                     Dictation
                                 auto focus
                                 auto face detection
J K Ashcroft
1 Retina Display
2 A5X Chip
3 5 MP camera
4 HD1080p video recording
5 Voice Dictation
6 4G LTE wireless tech
7 Battery Life
8 Light @ 1.4 lbs




                     J K Ashcroft
J K Ashcroft
The iPad priced at $499
- the iPad 2 drops to......




                              J K Ashcroft
J K Ashcroft
Prior Premium Pricing - then
Price Point Proliferation




                               J K Ashcroft
as with
                            the iPod




Prior Premium Pricing
Price Point Proliferation
                            J K Ashcroft
iPad is the way ahead




                        J K Ashcroft
J K Ashcroft
iPad brand dominant




          Apps for the iPad




                              J K Ashcroft
Great software like iTunes




                             J K Ashcroft
J K Ashcroft
J K Ashcroft
J K Ashcroft
J K Ashcroft
2012 latest




              J K Ashcroft
Apple
From the iPod to the iPad
A case study in Corporate Strategy




                       Second Edition April 2012

                                   J K Ashcroft

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Apple case study 2012 i pad update

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