apple case study 2012 i pad update

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J K Ashcroft Second Edition April 2012 Apple From the iPod to the iPad A case study in Corporate Strategy Saturday, 31 March 12

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Apple Case Study - update for the iPad March 2012. What can we learn about Apple Corporate Strategy from the iPad 3?

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Page 1: Apple case study 2012   i pad update

J K Ashcroft

Second Edition April 2012

Apple From the iPod to the iPadA case study in Corporate Strategy

Saturday, 31 March 12

Page 2: Apple case study 2012   i pad update

J K Ashcroft

Second Edition April 2012

Update

What does it tell us about Apple corporate strategy

Saturday, 31 March 12

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Second Edition April 2012

The Digital Hub Strategy 2001

First a recap

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Launch of the iPod

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Undertakes a systematic evaluation of alternative product optionsVideoGamesDVD players and recorders

Apple looking for a digital consumer device

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using3D market profile

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“so why music, we all love musicIt’s a huge market andnobody has got it right”

Launches the iPod“Music on the move”“1000 tunes in your pocket”

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using3D market profile

Musicticks all the boxes

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Since then ... sales have soared

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profits have followed

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as has the ROS

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so too the share price

and the market cap

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“EBITDAoff the charts”

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Sales growthgets 3rd

lease of life

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Time ...........

Note : [Share price = Earnings(EPS) x PE rating] ; [PE rating (f) Growth Rate] and : [PEG ratio = PE / Growth rate] Hence rating for high growth stocks falls over time

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575 millionDigital Devices SoldiPod, iPhone, IPad

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Latest in AmsterdamMarch 2012

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3.1 million pixels

auto focusauto face detection

auto focusauto face detection

Voice Dictation

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1 Retina Display2 A5X Chip3 5 MP camera4 HD1080p video recording5 Voice Dictation6 4G LTE wireless tech7 Battery Life8 Light @ 1.4 lbs

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The iPad priced at $499- the iPad 2 drops to......

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Prior Premium Pricing - then Price Point Proliferation

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Prior Premium PricingPrice Point Proliferation

as with the iPod

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iPad is the way ahead

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Apps for the iPad

iPad brand dominant

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Great software like iTunes

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2012 latest

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Second Edition April 2012

Apple From the iPod to the iPadA case study in Corporate Strategy

Saturday, 31 March 12