Company Analysis: Apple

Tyler Halloran, Brandon Carr, Ryan DiSimone

Origins of Apple

•Founded by Steve Jobs and Steve Wozniak

•Garage start up

1971

•First product: Apple I•CPU

Speed 1 Megahertz and RAM of 8 kilobytes

•Sold 250 units to local retailers and computer hobbyists

1976

Evolution of Apple

Evolution of Apple

Garage start up to world’s largest company (in 2012). World’s leading consumer tech

company Apple’s products are considered

the industry standard. Revered for appearance and

function iPhone- Best Selling Phone▪ Music▪ Apps▪ Navigation▪ Digital photography▪ Cellular communication▪ Easy to use format

MacBook Pro

MacBook Air

iPad

iPad mini

iPhone

iPod

Future for Apple

Questions surrounding future Speculation that company cannot continue its

innovative track record has led the stock down from $700 to $460

Potential future moves Video streaming service? Mergers and Acquisitions Activity? Apple TV? Something we cannot even imagine??

Despite pessimism, Apple has still been able to capture 53.3% of the US cellphone market

Porters 5

Hyper competition: The marketplace Apple exists in is always changing and they need to do the same in order to survive. Disruptive technologies and DYB/GYB mentalities are necessary for apple to succeed in the future.

Bargaining Power: Buyers

New Entrants

Substitutes

Value Chain: Product Design

Apple takes care of design themselves Known for sleek and

minimalist design approach Designed for human hand

Unique iPhone capabilities App Store, iTunes, iCloud,

Siri, and an easy to use interface

Value Chain: Supplier/Manufacturing

Apple does not supply their own materials

Manufactured in China Lower cost FoxConn

Factories are bigger and faster

Keeps price down for customers

No middleman

Value Chain: Retailer

Unique retail experience No register Apple Genius Bar Seminars on products

Organizational and IS strategy work together Organizational structure

works well with technology in Apple stores