1. Apple, Inc. BA 361 Donald Ulrich Matthew Vital Maggie Wesolowski

3. Apple, Inc. Products

4. The Industry

5. Computers

6. Mp3 Competition

7. Media Players

8. SWOT

12. Internal Environment Sustainability & Eco-friendly Constant innovations & product re-inventions In relation to customer and economy shifts Gain market share from competition to maintain profitability (esp. product expansion) Mission & Opportunity Statements

13. Statements Mission Statement Committed to bringing the best personal computing experience Students, educators, creative professionals and consumers Around the world Hardware, software and internet offerings Opportunity Statement Highly competitive & technological-driven consumer electronics-computer industries. Further leverage the intellectual capital & brand image with new digital business strategies Create new sources of sustainable competitive advantage

14. Apple Products

16. External Environment

17. The Personal Computer Industry

18. Apple Computers Over the Years First Computer was the Apple I It was a kit sold as a motherboard with a CPU, RAM, and basic textual video chips The user was required to provide two different types of A/C input voltages, wire an ASCII keyboard to a DIP connector and to wire video output pins to a monitor or RF modulator if a TV set was used Went on sale in July of 1976 at $666.66

19. Continued The Apple II introduced April 16, 1977 for $1295 Differed from rivals TRS-80 and Commodore PET because it came with color graphics and an open architecture Early models used cassette tapes for storage which switched to the 5 ¼ floppy disk drive and interface, disk II, after it was introduced

20. Continued The Apple III introduced in 1980 Had no cooling fan as per Jobs’ specifications Thousands recalled Apple III+ had the fan and was updated but did not sell – wary buyers and bad press

21. Continued The Apple Lisa introduced in 1983 First personal computer sold to public with a graphical user interface (GUI) Was a failure due to high price ($9,995) and limited software

22. Continued The Apple Macintosh introduced 1984 Initially sold well, follow up sales not so good until introduction of the Laserwriter (first reasonably priced laser printer) & Pagemaker (desktop publishing software) The Apple Macintosh portable was a derivative of this in a portable version-sales were terrible

23. iMac & iMac Flat panel iMac was an all in one pc introduced in 1998 Included cases in a variety of colors Was the start of Apple getting back ahead and to a steady growth as before The flat panel is the same all in one pc but in a flat screen version. Has evolved from the original G3 version to the now G5* and Core 2*, Core i5*, & Core i7*. *The newer versions use Intel core duo technology

24. iMac & iMac Flat Panel

25. Mac Mini Takes the original desktop (where the monitor sits on a horizontal box which holds the components) and shrinks it to a mini size. (Uses Intel’s core duo chips)

26. PowerBook, iBook, and MacBook Powerbook-original laptop from apple Evolved into many different versions Began to gain popularity along with the iMac iBook- replaced the Powerbook and continued to help Apple gain popularity MacBook- replaced the power book and iBook which sparked a boom on sales for apples “book” sector due to a much faster speed from using Intel’s chips The MacBook Pro version was a huge hit in the professional sector

27. PowerBook, iBook, and MacBook

28. Chart of Apple Computers Over Time

29. The Personal Computer Competition

30. HP One of the biggest computer providers Make everything from computers to monitors, printers, scanners, and cell phones Compete with Apple in many markets including computers and smart phones Provide computers and service on an at home, small business, corp. business, and government level Provide their computers a low price Allows customizable options

31. Dell A large provider of computers Allows customers to build their computer packages Offer many types of products from computers to monitors, printers, HDTVs, and cell phones Provide a wide variety of computers a varying prices depending on the components added Low cost

32. Acer A large provider of laptop computers to conusmers Provide many products such as laptops, desktops, servers, projectors, TVs Provides their computers in a few configurations

33. Mp3 Player Competition Industry Creative Sound Blaster sound cards The Zen, The Zen Stone Line Reigncom Ltd. South Korea: iRiver iRiverClix Lplayer Microsoft Zune SanDisk Sansa: View, Connect, Fuze, Clip, Express

34. Personal Media Players Sony: First Walkman 1979 in Japan Tape player w/out recording function 1995: more than 150 million sold, CD player PDAs: Apple was the first Newton Best functionality, sync with PC software

35. Goodbye to the PDA By fourth quarter 2007, PDA sales fell 53.2% from same quarter 2006 New convergence between PDAs and cell phones Continual demand for portable electronics, better functionality

36. Apple’s Movement in MP3 +100 manufacturers offering digital music and person media players 2001: User-friendly iPod introduced “Thousands of songs in your pocket.” 5-10 GB

37. Innovation + Functionality iTunes attributed to majority of iPod’s success 2001: Created to store CDs on computer hard drives, burn CDs on Macs syncing between music software and new music player 2003: Software released for Windows users

38. Impacts on iPod Sales 4th edition, April 2004 Introduced of iTunes Music Store Large library Legitimate online source for music, reduce piracy October 2005: Videos for purchase Released in conjunction with video iPod

39. iTunes Online service launched in April 2003 Number one music retailer in U.S. Catalog of 8 million songs Recorded 5 billion songs downloaded since 2001 Apple reports of 2003: .99 cents per song Net revenues $6.2 billion Net income $69 million

40. Apple iPhone

41. iPhone (cont’d) Smartphone Media Player Email Web browsing Multi-touch and virtual keyboard Apps

42. SWOT Strengths Design & innovation capabilities Ease of Use Windows-friendly Online Presence Products/Services Brand loyalty/Reliability Creative marketing Ads & testimonials Weaknesses Expensive compared to competitors Wi-Fi capabilities on products Declining market shares Weak presence in markets other than in education and publish

43. SWOT (con’t) Opportunities Social Trends Product evolution Home entertainment & digital TV International opportunities Threats Competition: MP3 industry Computer industry Apple product substitutes

44. Strategic Analysis 3 Strategic Recommendations: Integration of social media Technological advances and product expansion Open service market providers

45. #1. Focus Integrationof Social Media Pros More consumer market approach Trendy Showcase new products or re-inventions exclusively Marketing and advertising boost Cons Lose customer basis Failure with marketing and advertising approaches

46. #2. Technological advances and product expansion Pros New product sector development Digital cameras and camcorders Risk & Redefinition Cons Faulty Brand Image/Reputation Troubleshooting

47. #3. Open service market providers Pros Readily available products Trendy Aid in phone service providers expansion (possible merger) Cons Monotonous Out-dated Competition increase (i.e. AT&T vs. Verizon, etc.)

48. Our Best Strategic Recommendation: Technological Advances and Product Expansion

49. References http://appleinnovation.blogspot.com/ http://forums.macrumors.com/showthread.php?t=420550 http://hubpages.com/hub/The-NEW-iPhone-4G-Coming-2010 http://www.apple.com http://www.buzzbiznews.com/033796/verizon-iphone-release-date-4/ http://www.dvorak.org/blog/2006/06/23/mac-wishes-apple-dreams-ideas-for-new-apple-products-contest/ http://www.fool.com/investing/general/2010/06/07/apple-strengths-weaknesses-opportunities-threats.aspx http://www.jimharrer.com/blog/archive/2010/08/10/apple-swot.aspx http://www.mba-tutorials.com/marketing/273-apple-swot-analysis.html http://www.my3cents.com/showReview.cgi?id=70301

50. Questions? Thank you.