Group Members :VanitaThem MaryTebbyGibril Sophia

APPLE INC PRESENTATION

AGENDA

Case

summary

In-dept

Analysis

Apple Today

Suggestion

APPLE’S FOUNDERS

Steve Jobs1955 - 2011

Steve Wozniak

Apple I - 1976Apple II - 1978

FROM BEGINNING…

Mancintosh - 1984

Jobs’s resign - 1985

1976 - 1985

… TO THE STRUGGLE1985 - 1996

By 1990: Apple was the most profitable PC company in the world

Mid of 1990s:Declined sales and profit

Powerbook -1991

http://en.wikipedia.org/wiki/PowerBook_100http://en.wikipedia.org/wiki/Wintel

NEW BEGINNING FROM STEVE JOBS’S RETURN

1997: Apple joined Microsoft to release new versions of Microsoft Office for the Macintosh 1998: Introduced iMac and gained profit

2001: iPod  - icon of the Digital Age

2003: iTunes desktop software and iTunes Music Store were introduced

iPod

iPhone

Jan 2007: Apple Inc.June 2007: iPhone – Invention of the year2008: App Store

iPad

Netbook killerDrive new consumer behavior

In-Depth Analysis of Inc.

VISION AND MISSIONVISION - “Man is the creator of change in this world.

As such he should be above systems and structures, and not subordinate to them.”  MISSION - “Apple is committed to bringing the best

personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.”

Value Creation Process

Focus On Education

eMac

Adding Value

iMac

Lifestyle Strategy

Digital Hub

Music Strategy (iTunes)

Video Strategy (iMovie)

Internet Strategy (iTools)

Convergence

Apple I,II,III Mac

Products competitors

PC IBM, Dell, Acer, HP, Lenovo

iPod series Samsung , SanDisk , Creative, Microsoft Zune, Napster

Amazon.com, NapsteriPhone series Samsung, Google, Motorola

iPad Amazon’s kindle, Dell, HP, Samsung

Operating system

Microsoft windows, Android OS, Linux

Major Competitors

Americas43%

Europe28%

Japan6%

Asia pacific22%

Sales

Geographic Revenue Breakdown 2011

Americas38%

Europe25%

Japan8%

Asia pacific29%

Sales

Geographic Revenue Breakdown 2012

Vertical integra

tion

Making markets

vs.  addressing markets 

The Cool

Factor

Entering markets

after they’ve

developed 

Differentiated

business models 

Strategy

Substitutes

New Entrants

Customer

Existing rivalry in the industry- HighHighly competitive

marketPrice features based

competitionOnline music source

availableSmall stylish MP3 players available

Threat of new entrants-Low

capital intensive industry

Market power is needed

Lower net margin

Bargaining power of buyers

Moderate to high

High elasticity of demand Peer to peer file sharing is

possible

Big dealers can pressurise to reduce costSubstitute products & services

Moderate – Alternatives are available

Bargaining power of the suppliers

Low- Large no. of suppliers

High substitutability

Forward integration is difficult

Supplier

Five Forces Analysis

Strengths Weaknesses Well recognized ,product

differentiation unique design, easy to use products

4th largest player in the global mobile phone market

Strong brand image, Brand stability ,High brand loyalty

Robust financial performance

Focused R&D driving innovation Holds 5% market share in mobile phone market

18.5% market share of global smartphone market

Complete hardware/software package

Patent infringement lawsuit may affect financial condition and operating results

-January 2010, Nokia filed law suit for patent infringement with US ITC

Product recalls, defects may harm reputation and as significant warranty and other expenses

- 2010, antennae problems in iPhone 4- replacements free of charge

SWOT ANALYSIS

Opportunities Threats Strong growth in smartphone and tablet

markets to boost Apple’s revenues

Robust outlook for mobile advertising market provides growth opportunity

Shipment of smartphones expected to be 850 million by the end of 2013

iPhone business continues to increases

Strongest player in mobile apps market (350,000 apps)

Mobile advertising market is forecast to reach approximately $25 billion by 2015

Increasing demand of online music and other like cloud based services.

Rising popularity of Google Android may affect its market share

- 350,000 Android smartphones are activated daily, 150,000 iPhone activated daily

- Steve Job’s was innovative and a visionary for Apple.  His death may affect further developments in Apple

Very reliant on specific suppliers and component providers

Intense competition Highly dependent on

consumer purchases

SWOT ANALYSIS

Apple Inc Apple Inc Today

Apple Inc (as of September 2011)

*60,400 permanent full-time employees *2,900 temporary full-time employees

*364 retail stores in thirteen countriese.g 33 UK , 22 Canada etc

1 Infinite Loop Cupertino, California 95014United States of America Read more:

http://en.wikipedia.org/wiki/Apple_Inc.

Steve launched iCloud – June 2011

http://www.youtube.com/watch?v=DCjeSNomXrU

With iCloud users can store photos, apps, doc, calendars and access songs on iTunes without having them to store in the phone’s memory.

You can create amazing documents and presentations on your iPhone, iPad, and iPod touch. And now with iCloud, you can keep your work up to date across all your iOS devices. You don’t have to save your work or transfer any files. And it’s free with iOS 5.

http://www.apple.com/iphone/icloud/

On October 4, 2011, Apple announced the iPhone 4S

Price$199 16GB$299 32GB$399 64GB

http://www.apple.com/iphone/compare-iphones/http://www.apple.com/iphone/

Recent Acquisitions

On 20th December 2011, acquired Anobit for $390 million

August 1, 2011, Apple acquired C3 Technologies US$267

February 23, 2012, acquired Chomp for US$50 million

Recent Acquisitions (con’t)C3 Technologies

• A 3D mapping company

• Based in Sweden, new name “Apple Sputnik division”

• 3 employees of C3 have joined Apple Inc

• CEO – Mattias Astrom

• CFO – Kjell Cedestrand

• PM – Ludrig Emgard

Anobit• Israeli manufacturer of

flash memory founded in 2006

• Hq -Herzliya, Israel• Anobit provides flash

storage solutions for enterprise and mobile markets, based on its proprietary MSP (‘Memory Signal Processing’) technology.

• Its solutions are designed to improve the speed, endurance and performance of flash storage systems while driving down the cost.

• Apple relies on the company’s solutions for the iPhone, iPad and MacBook Air product lines to boost memory perforamnce

Chomp• is a search engine

that finds the app you want

• Founded in 2009 • Hq- San Francisco,

USA• Apple has acquired

Chomp, a search engine designed to find and discover apps for iPhone, iPad and Android.

2012 - iBooks

On January 19, 2012, Apple's Phil Schiller introduced iBooks Textbooks for iOS and iBook Author for Mac OS X in New York

iBook Author iBooks Textbook

The 3rd generation iPad was announced on March 16, 2012With the Retina Display feature, text, photos, videos are rich in detail, color more vibrant44% better color saturation than the iPad 2Lighter battery that iPad2 reducing the weight of tablet5mp isight camera with advanced opticsUltrafast 4G LTE – connects to fast data networks around the world

The new iPad

http://www.apple.com/ipad/

Suggestion:

+ -

Apple should change its Ego-Centric Personality now!

Apple Supply Chain IssueApple's supplier draw controversies in China

Apple Crisis ManagementEX: in 2010 July, Wrong price tagging event

"Apple takes working conditions very, very seriously. …We care about every worker. …No one in our industry is doing more to improve working conditions than Apple."—Tim Cook, CEO, Apple

Sweatshop (Labor Problem)

Wrong price tagging

F ! Apple

tempers

my order!!!!

Environmental pollution

Apple’s supplier

polluting map

Lake Southern Prince(南太子湖 )

Wailing from the residents

Labor problem doesn’t belong to Apple exclusively, why do people act so dramatically against us?

:

Apple has the influence, economically and otherwise. So we anticipate much more from you.

First Step: Put out the fire in China

: We didn’t shirk from the responsibilities which belong to the supplier in the first place.

Carefully clarify the responsibilities and win supports from more people.

1 . What do you think of Apple’s strategy?

2. What would you do next if you were responsible for Apple?

3. What lessons can other companies learn from Apple’s strategies over the years?