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
1955 - 2011
Steve Wozniak

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

5. … TO THE STRUGGLE
1985 - 1996
By 1990:
Apple was the most profitable PC company in
the world
Mid of 1990s:
Declined sales and profit
Powerbook -1991
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
Focus On Education
eMac
Adding Value
Lifestyle Strategy
iMac
Digital Hub
Apple I,II,III Mac
Music Strategy (iTunes)
Video Strategy (iMovie)
Internet Strategy (iTools)
C
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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
Americas
44%
Europe
28%
Japan
6%
Asia pacific
22%
Sales

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

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

17. Five Forces Analysis
New Entrants
Substitutes
Customer
Existing rivalry in
the industry- High
Highly competitive
market
Price features based
competition
Online music source
available
Small stylish MP3
players available
Threat of new entrants-Low
capital intensive industry
Market power is needed
Lower net margin
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
Bargaining power of the suppliers
Low- Large no. of suppliers
High substitutability
Forward integration is difficult
Supplier
Substitute products & services
Moderate – Alternatives are available

18. SWOT ANALYSIS
Strengths Weaknesses
 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
 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

19. SWOT ANALYSIS
Opportunities Threats
 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
cloud based services.
 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
 Intense competition
 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
photos, apps, doc,
calendars and access songs
on iTunes without having
them to store in the
phone’s memory.
http://www.youtube.com/watch?v=DCjeSNomXrU
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 don’t have to
save your work or transfer any
files. And it’s free with iOS 5.
http://www.apple.com/iphone/icloud/

23. On October 4, 2011,
Apple announced
the iPhone 4S
Price
$199 16GB
$299 32GB
$399 64GB
http://www.apple.com/iphone/compare-iphones/
http://www.apple.com/iphone/

24. Recent Acquisitions
On 20th December 2011,
acquired Anobit for
$390 million
August 1, 2011, Apple
acquired C3 Technologies
US$267
February 23, 2012, acquired
Chomp for US$50 million

25. 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
•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
company’s 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.

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 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
The new iPad
http://www.apple.com/ipad/

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?