- Apple has introduced several new products in recent years such as the iPod, iTunes, and iPhone in an effort to expand beyond its traditional PC business into new territories like music distribution and mobile phones. - While these new areas are still in their early stages, Jobs' return as CEO helped solve some of Apple's long-standing problems by shifting to a strategy of "controlled openness". However, sustaining long-term growth will depend on maintaining the company's momentum beyond Jobs' leadership.

1. Moon, Sung Jin Park, Ji Hong Theerawat

2. Agenda Apple Overview Apple in PC industry Problem & Analyze 2

3. Apple History 3 2007, iPhone 2007, Apple TV 2006, MacBook with intel chip 2003, iTunes/ Power Mac G5 2001, iPod / os X 1998, iMac 1997, rehiring Jobs 1996, Acquisition withNeXT 1994, PowerMac family 1991, Powerbook 1987, MacII 1985, First ever quarterly loss, laid of one-fifth of employees 1985, Resignation of Jobs 1984, Macintosh 1983, Apple Lisa 1978, Apple II 1976 Foundation 1976 1989 1985 1980 2005 1993 1997 1991 1995 The Steve Jobs Years The Steve Jobs Years The Sculley Years The Spindler Years The Amelio Years

4. Apple Overview 4 Mac Macs Main Product Line Key Numbers Accessories Revenue $ 32.48 billion (2008) Applications Servers Operating income $ 6.28 billion(2008) Op. Margin 19.82% Wi-Fi Net income $ 4.83 billion(2008) Profit margin 14.88% iPod + iTunes Products Total Assets $ 39.57 billion(2008) ROA 12.21% iTunes Accessories Total Equity $ 21.03 billion(2008) ROE 22.97% iPhone Employees 35,000 (Q1 FY 2009)

5. Apple Core Capabilities 5 Leadership Steve Jobs Business Innovation Performance Sales/Profits Customer Insight Design Innovative Graphic & Design Ease of Use

6. Apple Core Business 6

7. Agenda Apple Overview Apple in PC industry Problem & Analyze 7

8. 8 History The first portable computer The first computer mouse 1963, Douglas Engelbart 1975, IBM 5100 The first IBM PC The first laptop computer 1979, Grid Compass 1100 1981, IBM 5150

9. x86 CPU vs. CPU for MAC 1991, 386 microprocessor 1981 First IBM PC 1982, 80286 1986, 386 microprocessor 1993, Pentium 1999 Pentium III 1989, 486 microprocessor 1996 Pentium II 2006 Intel Core Family 2008 Intel Atom 2000 Pentium IV 2003 Pentium M 1976 1983 1994 2005 9

10. OS VS. MAC OS 1981 DOS 1985, MS Windows 1991, LINUX 1998, MS Windows98 1988, IBM OS/2 1995, MS Windows95 2000, MS Windows ME 2000, MS Windows2000 2001 , MS Windows XP 2006 , MS Windows Vista 1992, MS Windows 3.1 2009 , MS Windows 7 1991 1984~1987 1987 1988 1999 1997 2001 10

12. Overcapacity ; Customer Needs ( Capacity Mobility, Networking, AV)

13. Entry Barrier ↓ Competition↑  Price ↓ = Worse Profitable

14. Red Ocean ; HP, Dell, Renovo(IBM), TOSHIBA etc.

16. Product Performance/Software/Design

17. Design Priority Management

19. Educators

20. Home

21. Students

23. Toshiba

24. Acer / Gateway

26. Graphic Card

27. Software

29. Adesso’sCyberPad

32. 14 Key Success Factor_PCIndustry

34. Lenova (IBM)

36. Questions Has Jobs finally solved Apple’s long-standing problems? Is the iPod different? 17 November 23, 2009 Growth Strategy: Apple Computer 2006

37. Core Business & Business Expansion Home Entertainment (Apple TV) Music Distribution (iTunes) PC Manufacturing Telecommunication (iPhone) MP3 Manufacturing (iPod) 18 November 23, 2009 Growth Strategy: Apple Computer 2006

38. Products & Ecosystem: iMac 19 Alternative Technologies Wintel as the Alternative Technologies Application Software Specifically on Mac OS and OS X, there would be only made to support Mac OS and OS X even today such as iWork, iLife, etc. Operating System Initially, Allow only Mac OS and OS X with non-compatible Lately, OS X is more compatible to MS product Recently, allow Windows to install on “OS X Boost Camp” Device & Microprocessors Initially, Use the G4 as proprietary hardware technology Lately, Use the Intel for better performance and allow more open and compatibility Consider: Controlled Openness November 23, 2009 Growth Strategy: Apple Computer 2006

39. Products & Ecosystem: iPod 20 Alternative Technologies Consider as ecosystem and device synchronization and compatibility, there is no alternative technologies or competitor arises Application Software Open for Music both label and indies Open for Application Development Sell with acceptable price & business model (pay by piece) Operating System iTunes as Platform or OS, which offer free download as well as Mac & PC compatible Device & Microprocessors Serve the different market purpose and functions such as iPod Shuffle, iPod Nano, iPod Touch, iPod limited edition with the price, which is available for everyone. Consider: Openness November 23, 2009 Growth Strategy: Apple Computer 2006

40. Products & Connection 21 November 23, 2009 Growth Strategy: Apple Computer 2006

41. Growth Connection New Value Chain New Geographies OS X on Intel iTunes 5 Mac Related Dev. Content Distribution 9 6 Music Distribution 2 7 New Channel Pixar Animation New Business 3 Apple iPhone 8 1 5 iPod iMac 4 5 Apple TV iMac + Intel New Customer Segment New Products 5 22 November 23, 2009 Growth Strategy: Apple Computer 2006

42. Long-standing problem solved? End of the case Jobs as CEO Jobs return as interimCEO iPod was introduced. iTunes was introduced. In General: All of the new territories and development are on the initial state. However, the long-standing problem may not be completely resolved as controlled openness with business model. 23 November 23, 2009 Growth Strategy: Apple Computer 2006

43. Additional: Leadership 24 Mature Business: Operators Create Value Growth Business: Business Builder Emerging Opportunities: Entrepreneur Invest Time Leadership: The successor of Steve Jobs would be the person to maintain the sustain growth and position Steve Jobs as advisor and/or explore new opportunity. November 23, 2009 Growth Strategy: Apple Computer 2006

44. Thank you