WELCOME TO THE APPLE STORY

Established: on April 1, 1976Founders: Steve Jobs, Steve Wozniak, and Ronald WayneIndustry:

Key People:

Total Revenue: US $ 108.249 billion(FY 2011)Profit: US $ 33.790 billion(FY 2010)Employees:60,400No. of Locations: 393 retail stores (as of August 2012)

COMPANY PROFILE

Computer Hardware computer softwareconsumer electronicsdigital distribution

Previous CEO : Steve JobsCEO: Tim Cook

Apple TV  iPad (Original, 2, NewPad, MiniPad)  iPhone (3G, 3GS, 4, 5)  iPod (Classic, Nano, Shuffle, Touch) Mac (iMac, MacBook, MacBook Air, MacBook

Pro, Mini, Pro)

MAJOR HARDWARE PRODUCTS

Mac OS X iOS  iTunes iWork  QuickTime Safari iLife

MAJOR SOFTWARE PRODUCTS

 Apple Store (online) App Store Certifications Game Center iAd  iBookstore   iTunes Store iWork.com iCloud 

STORES AND SERVICES

Emagic  FingerWorks  Intrinsity  NeXT   Nothing Real  P.A. Semi Silicon Color  Siri Spruce Technologies

ACQUISITIONS

THE EVOLUTION OF APPLE INC.

2006199719771975

Apple’s history starts with the story of two young and exceptional people who began building a computer in

their garage and launched the microcomputer revolution. It’s the story of two ‘Steves’:- Stephen G

Wozniak and Steven P Jobs

THE BEGINNING.

THE BEGINNING

Created in 1976 in Jobs' parents garage Jobs and his friends

design their first computer kit : the Apple I

APPLE I On1976 April 1 –

released the Apple I (for $666) and started Apple Computers. Had 8 KB of RAM It was box wood-made

with a basic motherboard inside.Later a cassette

interface to enable external data storage was added.

12

APPLE II

In 1977, Apple II was released for $1298 Had color graphics – a

first for a personal computer Originally used an audio

cassette drive for storage but later it was replaced by a floppy disk drive Supported the BASIC

program Had 64 KB of memoryAnd with a software called

VisiCalc which was Apple's "killer application" : a spreadsheet program !

Apple III Released May 1980 Had 128K of RAM Designed for businesses – expensive!! > $4300!!! Had lots of problems – didn’t do well..

Apple Lisa Released in 1983 Became the first personal computer sold to the

public with a GUI. Aimed at large businesses Commercial failure due to high price tag (almost

$10,000) and limited software it could run

OTHER EARLY ENDEAVORS

THE LISA

15

THE INTRO OF THE MACINTOSH

Apple introduced the Macintosh in 1984

Sales not initially as strong as desired

Changed with the intro of LaserWriter – first reasonably

priced laser printer PageMaker – early desktop

publishing package(These capitalized on its advanced

graphics capabilities) 128 KB memoryMotorola’s 68000 CPU Sold for $2495

EARLY YEARS – COMPUTER COMPARISON

Product Cost Storage RAM YearApple I $666 --- 8 KB 1976Apple II $1298 Floppy 64 KB 1977

Apple III $4300(for business)

Floppy 128 KB 1980

Apple Lisa

$10,000(for business)

Floppy 1 MB 1983

Macintosh $2495 Floppy 128 KB 1984

1985: due to some power struggle between Jobs and then CEO John Sculley, Jobs resigns from Apple Computers and started a new company NeXT Inc.

EXTRA SHOT…

18

MACINTOSH PORTABLE

Apple’s first attempt at a “portable” computer Released in 1989 8 MB RAM 40 MB Hard drive* Clunky, slow $6500 Failed in market.

19

MORE PORTABLE EFFORTS..

PowerBook 100 Released in 1991 40 MB hard drive 8 MB RAM $2500 Helped Apple to gain

some revenue established  layout of

the laptop computers

1991:System 7- upgraded OS which added colour to interfaces and new networking capabilities The Performa lines of Macintosh LC- a

disaster Apple tastes failures of many other products

including digital cameras, portable CD audio players, speakers, video consoles, and TV appliances Microsoft gains market with cheap

commodity personal computers1994: Apple allied with IBM and Motorola in

the AIM alliance.

1991-’95

RETURN OF STEVE JOBS

1996: acquisition of NEXT Inc. Jobs back to Apple as an advisor. 1997: Steve Jobs –the CEO1997: Steve Jobs announced that Apple

would join Microsoft to release new versions of Microsoft Office for the Macintosh1997:Apple introduced the Apple Store+ new

build-to-order manufacturing strategy 1998: introduced the new iMacwith Mac OS X. Then came the iBook, Apple's new laptop.

REBIRTH OF APPLE

Released in 19982 USB ports4 GB hard drive256 MB RAMAll in 0ne

computer

DESKTOP EVOLUTION

The iMac»

Released in 2007 RAM: 4 GB 320 GB hard drive

25

Product Cost Storage RAM YearMacintosh $249

5 Floppy 128 KB 1984

Mac Plus $2600 Floppy 4 MB 1986

iMac $1799 320 GB 4GB 2007

Mac Portable (laptop)

$6500

40MB hd 8 MB 1989

Powerbook 100 (laptop)

$2500

40MB hd 8 MB 1991

Macbook Air(laptop)

$1799

120GB hd 2GB 2008

LETS HAVE ANOTHER COMPARISON

EVOLUTION OF OS’S… Mac System 1,2,3,4 (1984-1987)

Distinguishable from other OSs from that era in that they used entirely graphical user interfaces

Could only run one application at a time Mac System 5, 6, 7 (1987 – mid 1990’s) Could run multiple applications

Mac OS 8 (8.0 – 8.6) (1997) – better file management Mac OS 9 (9.0 – 9.2.2) (1999) – improved support for

wireless Mac OS X (1999 – today) – UNIX based OS 10.0 – Cheetah (‘01) 10.1 – Puma (‘02) 10.2 – Jaguar (’03)10.3 – Panther (’04) 10.4 – Tiger (’05) 10.5 – Leopard (’08)10.6 – Snow Leopard (’09) 10.7 – Lion(‘11)

iPod- THE BLOCKBUSTER

On October 23, 2001-the iPod CPU: Samsung ARM and Apple

A4 5 GB hard drive that put

"1,000 songs in pocket” New technology: spintronicsInitially , iPod software only

worked with Mac OS;  from 2nd generation onwards

works with Microsoft Windows alsoApple's iTunes Store was

introduced, offering online music downloads for $0.99 a song and integration with the iPod.

Albert Fert and Peter Gruenberg won the 2007 Nobel Prize for physics for work that has allowed hard disks to be made much smaller for everything from laptops to iPodsThe prize was awarded for work on

magnetoelectronics, also known as spintronics.It uses the spin of the electron to store and

transport information instead of the electrical charge, meaning much more information could be kept in a smaller space than before.

EXTRA SHOT..

on January 9, 2007, Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc., because computers were no longer the main focus of the company, which had shifted its emphasis to consumer electronic devices Announced iPhone and Apple TV

SHREDDING DOWN ‘COMPUTER’

iPhone

 a convergence of an Internet- enabled smartphone and iPod.  iOS, (formerly iPhone

OS)- scaled down version of OS X 3.5-inch (89 mm) touch

screen display, 4, 8, or 16 GB of

memory,  Bluetooth, and Wi-Fi

iPad

tablet PCReleased on April 3,

2010Processor: A4256 MB RAMBluetooth n Wi-Fisold more than

300,000 units on that day and reaching 500,000 by the end of the first week.

ICLOUD

June of 2011, Apple unveiled its new online storage and

syncing service for music,

photos, files and software -- iCloud

OS X LION

PRESENT HITS

IPHONE 4

IPAD 2

AND LATEST…

iPhone 5 (this October) iOS5 (Last Year) NewPad3 (Last Year)MiniPad iPhone-low cost version(on lab)

WORK CULTURE

Work Hard, Play Hard Run Your Own Show Nurturing DiversityCulture of Secrecy

MicrosoftLinuxDellHP

LenovoRIM

NokiaHTC

SamsungGooglesony

.

COMPETITORS

WHERE APPLE STANDS NOW?

APPLETWITTER

FACEBOOKNISSAN

GROUPONGOOGLE

DRAWING INFORMATION INDUSTRYNETFLIXZYNGA

EPOCRATES

THE WORLD’S MOST INNOVATIVE COMPANIES

Apple Google

Microsoft

WORLD’S MOST REPUTED IT COMPANIES

SamsungHewlett-Packard (HP)

SonyLG

ToshibaNokia

PanasonicApple

MicrosoftDell

THE CONSUMER ELECTRONICS INDUSTRY OUTLOOK

LETS HAVE SOME MARKET ANALYSIS

MARKET SHARE

OS-X Market Share:Closest

Competitor Windows

Share:Market Growth

Rate:

5.02%

90.29%

32%

i-phone Market Share:Closest

Competitor RIM Blackberry

Share:Market Growth

Rate:

30%

40%

32%

i-pod Market Share:Closest

Competitor Sandisk Share:Market Growth

Rate:

73.8%

7.2%

30%

i-tune Market Share:Closest

Competitor Amazon Share:Market Growth

Rate:

69%

8%

20%

MARKET PRICE

Because Apple thinks Different from others

HOW?

THINK DIFFERENT

THINK DIFFERENT

CONCLUSION

For 35 years Apple has been a trend-setter company able to foresee the future of domestic computer and consumer electronics. it will probably continue during the next decades. because their strength is the innovation . And they know, how to ‘think different’.Apple, go on innovating…..

SWOT analysis (alternately SWOT Matrix) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture.Strengths: characteristics of the business, or project team that give it an advantage over othersWeaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to othersOpportunities: external chances to improve performance (e.g. make greater profits) in the environmentThreats: external elements in the environment that could cause trouble for the business or project

SWOT ANALYSIS

SWOT ANALYSIS

SWOT Analysis

Strengths•Brand name perception•Innovation•Product Diversification with Attractive designs•Market share and global expansion•Increase of retail stores•Low debt —more maneuverable

Weaknesses•High pricing •Non-Compatibility •Quality Product control•Short product life-cycle

Opportunities•Participating in joint venture•Enlarging market share in the industry•Ease of use

Threats•High level of competition •High product substitution•The impact of lasting economic recession

• Brand name perception: •A strong brand is an essential strength of Apple Inc . Apple brand is always being imprinted in people's minds as one of the most established and healthy IT brands worldwide. It has a very loyal set of enthusiastic customers that advocate the brand.• Such a powerful loyalty means that Apple not only attracts new customers, it retains them - they may come back for more products and services from Apple, and the company also has the opportunity to extend new products to them, for example the iPod, from Classic to Nano5, to Shuffle, and to Touch . •It costs far less to keep an existing customer than to lure in a new one.

Strengths

•Innovation: Apple has a strong Research &Development Department, coming up with stylish designs and continuous new products like the iPod series.Through its strong heritage of design excellence coupled with beautiful packaging and backed by brilliant product promotions and marketing, Apple has built very good and easy-to-use user interfaces. Apple Inc’s innovation keeps it a front-runner in electronics.

Strengths

•High pricing: Not reducing costs in the same way as their competitors' means Apple Inc. is outlaying more of their profits. Over pricing, setting too high prices for Apple Inc products/services makes them uncompetitive, which is a major weakness.

•Non-Compatibility : The software of Apple has a Non-Compatibility with Non-Apple Products, so the sales of Apple software is limited by the sales of hardware.The non-compatibility of Apple Computers with other operational system makes Apple Computers more difficult to operate, resulting in the loss of some potential customers.

Weaknesses

•Quality Product control: Products with early iPods had faulty batteries, whereby the company offered customers free battery cases . It was also reported that the Apple iPod Nano might have a faulty screen. These problems in quality may directly lead customer to lose confidence with Apple products.

•Short product life-cycle: The product life cycle of Apple products are very short for that reasons revenues are more depend on launch of new products and services. And Apple receives no profit from resale of preceding goods.

Weaknesses

•Participate in joint venture: The ties of apple with other companies are weak, Apple can form some strategic alliances and joint ventures to get an opportunity to maximise its profit and gain new business.

•Enlarging market share in the industry: Compared to its rivalries such as Dell, Apple has a smaller coverage in the market share. It’s a good opportunity for Apple to expand retail stores for customer convenience.Also, the online sales of electronic products are increasing with rapid speed.

•Ease of use: For certain amount of consumers, the complexity of using an Apple products has been a major obstacle to buy it. If downloads are available via a USB cable it will bring Apple much more business.

Opportunities

High level of competition: The biggest threat to IT companies such as Apple is the very high level of competition in the technology markets. Apple facing strong competition from Dell, HP, Sony and Toshiba in laptop segment. Apples market share is far behind from major competitor Microsoft. High product substitution: There is also a high product substitution effect in the innovative and fast moving IT consumables market. So iPod and MP3 rule today, but only yesterday it was CD, DAT, and Vinyl. Tomorrow's technology might be completely different. Wireless technologies could replace the need for a physical music player.

Threats

The impact of lasting economic recession : The long lasting recession may impact the sales of Apple due to higher prices of the products and services. Since Apple offers no lower-end alternatives, consumers will switch to other manufactures in the face of falling incomes.

Threats

•Lowering the cost of products and maintaining good quality standards•Forming joint ventures•Knowledge Management •More number of retail stores for easy access•Continuous innovation to expand

Recommendations

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