Apple Inc.

•Kayla Baumann

Background

•Apple Inc. is an American corporation that designs and manufactures computer hardware, software, and other computer electronics.

•Apple was established on April 1st, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne.

•Steve Jobs was said to own 45% of the company, Steve Wozniak with 45% and Wayne with the remaining 10%.

Background Cont…

•Number of Employees – 60, 400•Apple Inc. has been in business for thirty-

four years. •Apple’s opening stock price was just

$22.oo.•Apple’s Headquarters take up 32 acres

and is located in Cupertino, CA.

History Timeline

•In 1976, the company was founded. •1977 – The Apple logo was designed by

Rob Janoff.•1980 – Apple goes public with 4.6 million

shares.•1984 – Mac is introduced.•1985 – Windows 1.01 is released. •1999 – iBook tops notebook sales.•2003 – iTunes music store opens.

History Timeline Cont…

•2005 – iTunes downloads top 500 million.•2006 – March Madness is offered on

iTunes.•2008 - Added new MacBook, MacBook

Pro, and MacBook Air.•2010 – Original iPad released. •2011 – iPad 2 is released.

Income - iPod

•The Apple iPod was the main source of income in 2006. However, that has drastically changed since then.

• iPod sales as a percentage of total revenue:▫2006-55.55%▫2007-48.11%▫2008-38.32%▫2009-28.38%▫End of 2010-8.36%

iPhone

•In 2011, 250 million i0s devices were activated.

iPhone Distribution

Stocks and Dividends

•The recent high stock price is $636.23.•The opening stock price was $22.00.•Apple paid dividends from June 15, 1987

to December 15, 1995. •Subject to declaration by the Board of

Directors, the Company plans to initiate a quarterly dividend of $2.65 per share sometime in the fourth quarter of its fiscal 2012, which begins on July 1, 2012

Profit Margin

Current Stock Price

$604.72DIVIDEND:A distribution of a portion of a company's earnings,

decided by the board of directors, to a class of its shareholders. The dividend is most often quoted in terms of the dollar amount each share receives (dividends per share). It can also be quoted in terms of a percent of the current market price, referred to as dividend yield.

Strengths

•Apple is a very successful company. iPod gives the company access to a whole new series of segments that buy into other parts of the Apple brand. Sales of its notebooks products is also very strong, and represents a huge contribution to income for Apple. Apple is one of the most established and healthy IT brands in the World, and has a very loyal set of enthusiastic customers that advocate the brand. 

Weaknesses• It is reported that the Apple iPod Nano may

have a faulty screen.•There is pressure on Apple to increase the

price of its music download file, from the music industry itself. 

•Early in 2005 Apple announced that it was to end its long-standing relationship with IBM as a chip supplier, and that it was about to switch to Intel. Some industry specialists commented that the swap could confuse Apple's consumers.

Opportunities• Apple has the opportunity to develop its iTunes

and music player technology into a mobile phone format. 

• A version of Apple's iTunes music store has been developed for the phone so users can manage the tracks they store on it. New technologies and strategic alliances offer opportunities for Apple.

•  The listener can subscribe to Podcasts for free, and ultimately revenue could be generated from paid for subscription or through revenue generated from sales of other downloads.

Threats

•The biggest threat to IT companies such as Apple is the very high level of competition in the technology markets. 

•The popularity of iPod and Apple Mac are subject to demand, and will be affected if economies begin to falter and demand falls for their products.

•There is also a high product substitution effect in the innovative and fast moving IT consumables market. Tomorrow's technology might be completely different.

Citations• HISTORY-http://www.brighthub.com/computing/mac-

platform/articles/65346.aspx

• TIMELINE- http://news.cnet.com/2009-1041-6054524.html

• EMPLOYEES-http://www.pcworld.com/article/245806/apple_vs_google_by_the_numbers.html

• INCOME- http://www.appleinsider.com/articles/10/07/02/special_report_the_end_of_apples_ipod_era.html

• SWOT-http://www.marketingteacher.com/swot/apple-swot.html