Apple

INTRODUCTION

Mission Statement

“Apple is committed to bringing the

best personal computing experience to

students, educators, creative

professionals and consumers globally

through innovative hardware, software

and Internet offerings.”

1Apple Inc.

• Frontrunner in the PC revolution

• Transformed PC industry with 1st Mac

• Expansion in consumer technology

• Continued innovation in tech industry

History 1976-1978• Steve Wozniak and Steve Jobs form the Apple Computer Company on April Fool's Day on 1976 in GARAGE. • Wozniak and Jobs finish work on a preassembled

computer circuit board. It has no keyboard, case, sound or graphics. They call it the Apple® I….The Apple I board is released for sale to hobbyists and electronics enthusiasts at the price of $666.66.

• Apple's first formal business plan sets a goal for sales to grow to $500 million in ten years. As it turns out, the company will pass that mark in half the time.

• Apple I computer boards are sold through 10 retail stores

in the U.S.• Apple moves from Jobs' garage to a building on Stevens

Creek in Cupertino, California. • The new Apple® II is unveiled at the first West Coast

Computer Fair. It is the first personal computer able to generate color graphics and includes a keyboard, power supply and attractive case .

• Regis McKenna Advertising launches its first ad campaign for Apple. Although advertising is initially aimed at electronics enthusiasts, Apple will soon become the first company to advertise personal computers in consumer magazines.

• Monthly orders reach a $1 million annual sales rate.

Focus On Education

iMac,1998

Adding

Lifestyle Strategy

Digital Hub

Music Strategy (iTunes)

Video Strategy (iMovie)

Internet Strategy (iTools)

Convergence

Apple II, 1977)

Apple I(april 1st 1976)

Apple III, 1980 Lisa,1983

Power Book (1st laptop 1991)

MAC,1984

It had 1st floppy disk drive

Mac book Air-worlds 1st slimmest notebook,2006

iPods(2001)

values

Mac pro, 2004

Apple tv,2007

i-phone,2007

i-pad,2010

VARIOUS PRODUCT

CYCLE

BEFORE & AFTER Iphone in 2007

APPLE’S C.S.R

Sources of Competitive Advantage

Sustainable Competitive Advantage

• Digital business strategy• Strategic alliance• Intellectual Capital

PROMOTIONAL

strategy

Apple has been very active in its promotional endeavours. Its logo has become one of the most recognizable symbols nationwide. The company uses two primary methods of promotional strategies towards its public.

1.The first promotional tool it uses is advertising. Investing heavily into this area, Apple has managed to create a large amount of advertisements that can be found on any television network, in any technology magazine, and all over the Internet.

The second promotional tool that Apple uses extensively is personal selling. The company's Apple Stores are home to many young and knowledgeable sales representatives who are trained thoroughly in both product information and customer service. With the release of new products and upgrades the company produces every few months or so, it is important for sales representatives to stay abreast of the latest technologies entering the market. Walking into any Apple Store will reveal that employees are often young and most likely fall within the Generation Y or X age range.

Strengths

• Strong cash base• Intellectual capital• Technology leader• Brand image• Charismatic leadership• iTunes Store

Weaknesses

• Lower profit margins• Dividends rarely paid• Lack of succession planning• Presence in business arena • Underdeveloped customer relationships

Opportunities

• Digital business strategies• Customized user experience• Strengthen brand• Expand strategic alliance• Global expansionS

Threats

• Technology• Volatile customers• Competition• Google

Financial Analysis

Financial News

• April 20, 2010: Apple announced fiscal 2010 Q2 results:

- Revenue of $13.5 billion

- Quarterly profits of $3.07 billion

• Stock price $252.36/share

• Holds over $40 billion of cash reserves

Source: World of Apple; BusinessWeek; Hoovers

Some Facts About Apple

The Apple Store on Fifth Avenue in Manhattan (the cube) is said to be one of the most photographed landmarks in the world.

• Steve Jobs’ birth father was a Syrian Muslim, Abdulfattah Jandali.

• Apple was established on April Fools Day.

• Apple’s original logo in 1976 featured Isaac Newton sitting under an apple tree.

• Apple was the first company to introduce the mouse and the trackpad.

• In 2001, Apple’s stock price was less than $8 per share. In April 2010 the price reached $272

• Apple wasn’t started in a garage, it was started in a bedroom at 11161 Crist Drive in Los Altos.

• Steve Jobs pays himself an annual salary of $1

• Steve Jobs’ annual income from Disney shares is $48 million.

• Steve Jobs was a college drop out.

• Steve Jobs commonly dons a black long-sleeved mock-turtleneck made by St. Croix, Levi’s 501 blue jeans (he owns more than 100), and New Balance 992 sneakers.

• Steve Jobs is dyslexic

• While Steve Jobs worked at Atari, he was moved to the night shift because he had poor personal hygiene and smelled bad.

• Apples are Steve Jobs’ favorite food.