Consumer Analysis and Success Factors of Apple Inc.

Akash AggarwalA1802009122

A dissertation submitted in partial fulfillment of the requirements ofMasters in Business Administration – International Business

At theAmity international business school

Amity University, Noida

April 2011

Page 1

Final Report

Consumer Analysis and Success Factors of Apple Inc.

Submitted To: Submitted By:Prof. Alka Maurya Akash Aggarwal

A1802009122

Amity International Business School

2011

Page 2

ACKNOWLEDGEMENT

I express my sincere gratitude to my faculty guide Prof. Alka Maurya of my institute, for her

continued guidance and invaluable encouragement. I also wish to thank Apple store and their staff for giving me useful knowledge which helped me in finishing the project. The faculties at Amity International Business School which taught me useful concept on Consumer Behaviour and Research without which the project couldn’t be completed

Signature

(Akash Aggarwal)

Page 3

Index

S.No. Topic Page No.1. Introduction 52. Objective 63. Review of Literature 64. Area of Study 75. Scope of Study 76. Research Methodology 87. Research Design 98. Research Instrument 109. Consumer Behavior 1310. Social Diffusion of Apple 1411. Marketing Mantra of Apple 1612. Why Apple is so Innovative 1813. Evolution of Ipod 2414. Evolution of Macbook 2915. Evolution of Iphone 3516. Apple TV 3917. Data Analysis 4318. Findings and Analysis 4919. Suggestion and Recommendation 5020. Conclusion 5121. Bibliography 5222. Questionnaire 53

Page 4

Introduction

Apple Computer’s 30-year history is full of highs and lows, which is what we would expect in a highly innovative company. They evolved throughout the years into an organization that is very much a representation of its leader, Steven Jobs. Apple made several hugely successful product introductions over the years. They have also completely fallen on their face on several occasions. They struggled mightily while Jobs was not a part of the organization. Apple reached a point where many thought they would not survive. When asked in late 1997 what Jobs should do as head of Apple, Dell Inc.'s (DELL) then-CEO Michael S. Dell said at an investor conference: "I'd shut it down and give the money back to the shareholders.”

Well, times changed. Less than 10 years later, Business Week ranked Apple as the top performer in its 2008 Business Week 50. Apple attributes their recent success to robust sales of iPod music players (31 million in 2010). They are optimistic about the economies of scope with media giants, such as Disney and Pixar.

Apple rarely introduces a new type of product. Thus, instead of being the pioneer, they are an expert “second mover” by refining existing products. Portable music players and notebook computers are examples. Apple increases the appeal of these products by making them stylish and more functional. They now appear poised to make significant strides in the home computer market and to creating a total digital lifestyle whereby the home is a multimedia hub.

For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world in 2008, 2009, and 2010. The company has also received widespread criticism for its contractors' labor, environmental, and business practices

ObjectivePage 5

The Study tries to find the reason for the success of Apple Product like iPod, iPhone, Mac etc.

To find the reason for the failure of Apple TV.

Consumer loyalty and their perception toward Apple and Steve Jobs

The Critical Business Success Factor of Apple Inc.

Review of Literature

Apple Inc. is an American multinational corporation that designs and markets consumer

electronics, computer software, and personal computers. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; Logic Studio, a suite of music production tools; and iOS, a mobile operating system. As of August 2010, the company operates 301 retail stores in ten countries, and an online store where hardware and software products are sold.

Apple Inc. started with producing only personal computers (first market). Later on, it expanded to producing its own revolutionary operating system (Mac OS X), which left an Apple' “footprint”, in the OS industry (second market). It also produced creativity, productivity, and multimedia programs, such as the “iTunes” (a worldwide known/online music player and store). The company kept on expanding until it came up with the “iPod” in 2001, to enter the portable music players market and become the leader of it (third market). In 2007, Apple Inc. entered its fourth market by launching its new invention, the “iPhone”.

The truth behind the scenes is not that Apple has a large group of customers that are too dedicated and passionate about their products, or the company as a whole. The reality is far more simple and obvious: Apple simply has a large group of very satisfied customers — and that's the secret ingredient left out of nearly every analysis.

The obvious side to Apple's customer satisfaction lies in their attention to detail in every facet of product development. All their products are designed, at every stage, with the customer clearly in mind and each product is tailored to make it as easy to use as possible for the customer, regardless of how technically savvy or not they may be.

Areas of Study

Page 6

The study tries to identify the consumer perception and behavior toward various Apple products. After Steve Jobs was made the CEO of the company again in 1997, no Apple product has failed except Apple TV. The study will consider every product line of Apple and tries to identify how various consumers are attached to their Apple product. The niche segment that is served by their Mac line of desktop and laptop along with mass consumer product like ipod series are the foundation of Apple success. Without huge media advertising Apple is able to sell millions of ipod every year along with billion of songs and application.

Ipod - the iPod isn't simply an updated Walkman. It's an extension of the memory: storing the soundtrack of a lifetime, as well as names, addresses, calendars and notes. The iPod is no longer just an instrument or a tool, but a part of consumer. It's a body extension. It's part of the memory, and if someone loses their ipod they lose part of their identity.

Iphone - The iPhone has changed the way consumers think about cell phones and smartphones. The iPhone integrates cell phone, iPod music player, camera, text messaging, e-mail and Web browsing, while introducing innovative features such as multi-touch screen, visual voicemail, virtual keyboard and an accelerometer that senses screen orientation. The iPhone is undoubtedly the most talked about mobile device in the market.

Ipad - Five year olds don’t need multitasking and neither do they need a phone. Apple suspects many parents will be willing to buy junior’s first computer at a much earlier age if it’s an iPad. It will be easier to justify your kid’s first handheld game machine if it also serves as a book reader and window to the World Wide Web.

Macbook – Macbook is for class of people who consider design above everything else. Thinnovation describes Macbook because of its unique features like, thinnest laptop, single aluminum sheet used etc.

Apple Tv – with the launch of Apple Tv, Apple wanted to become the king of the living room. But due to lack of understanding of product by the prospective consumer, the product failed

Scope of Study

Today in the market consumer have a lot of options for every product, whether it be an IT product or Home PCs or consumer durables or a FMCG product. This study may be helpful for company to know about the factors affecting the consumer behavior and patterns of the consumer. It may also be helpful to know the specific requirement of customer so that the customer can be easily satisfied. Moreover, this study helps to know the buying habits and patterns of customer. The study will help the company to understand the relationship that a

Page 7

consumer have with their Apple product. It will help to ascertain the reason which makes the undisputed leader in almost every segment in which they operate.

Research Methodology

In application of market research the research has to go through several steps or stages and these steps are following:

Step 1: Defining the Problem

Defining the problem is the most important part of the market research process, because wrong definition misdirects research.

The type of research to be carried out, the question to be raised, and the sampling procedure to be followed and the data to be collected, all depends on the current understanding of the problem

Apple is having negligible competition in the Ipod market with other players. There are many factors which influences the buyer for purchasing the PVP or a Laptop. One of these factors is Brand Name.

A major step in the conduction of market research is the decision regarding the nature of research design we are selecting for the purpose of our study.

The benefits of research design are that it evaluates client’s need in terms of results and the analytical work on the gathered data that will convert it to useful findings for the management.

The selection of a particular design depends on the causality of the variables involved.

** (Since I don’t want to calculate any causality between any variables therefore descriptive research is preferable)

For the purpose of my study I intend to take up descriptive design

This covers research design that are intended to produce accurate description of variables relevant to the decision being faced, without demonstrating that some relationship exist between variables.

Decision maker very often choose or are willing to accept descriptive data, which would permit only inferences to be drawn about causation

Here I am using cross-sectional design to produce a picture of the phenomena in which the decision maker is interested – For example, the market share of various firms, consumer preferences regarding various Apple offering etc.

Page 8

Step 2: Develop the Research Plan

The second stage of marketing research calls for developing the most efficient plan for gathering the needed information.

Designing the research plan calls for decision on the data sources, Research approaches, Research instruments, Sampling plan, and other contact methods.

Research Design

Primary Data can be collected in five ways:

Observation Focus Groups Surveys Behavioral Data Experiments

Observation Research

Fresh data can be gathered by, observing the relevant actors and setting.

Focus Groups

A Focus Group is a gathering of six to ten people who are invited to spend a few hours with a skilled moderator to discuss a product, service, organization, or other marketing entity. The moderator needs to be adjective, knowledgeable on the issue and skilled in-group dynamics. Participants are normally paid a small sum for attending. The meeting is typically held in pleasant surrounding and refreshments are served.

Survey research

Surveys are best suited for descriptive research. Companies undertake surveys to learn about people’s knowledge, beliefs, preferences and satisfaction, and to measure these magnitude in general population

Data Sources: The researcher can gather secondary data, primary data, or both. Secondary data are data that were collected for other purpose and already exist some-where. Primary data is gathered for specific purpose or for a specific research project.

Page 9

When the needed data do not exist or are out-dated, inaccurate, incomplete or unreliable, the researcher have to collect primary data. Most marketing research project involve some primary data collection.

Similar is the case in my project. For the purpose of my study I have collected primary data in the form of

1) Nature of data2) Its function is the ultimate interpretation and analysis

Types of Data

Demographic Sociological Psychographic Behavioral

Here I am going to analyze the opinions that how people perceive something what they believe about it and what those believes signify. The most potent form of opinions tends to be attitude, which is a mental state of pre-disposition to act in some manner.

Here in my project I intend to analyze the opinions and attitude of the target population by using appropriate sample. So the data collected in our project is basically demographic and behavioral.

Research Instruments

Marketing researchers have a choice of two main research instruments in collecting primary data: Questionnaire and mechanical devices.

Questionnaire

A questionnaire consists of set of question presented to respondent for their answers. Because of its flexibility, the questionnaire is by far the most common instruments used to collect primary data. Questionnaires need to be carefully developed, tested and debugged before they are administered on large scale.

In preparing a questionnaire the professional marketing researcher carefully chooses the questions and their forms, wording and sequence. The form of the question asked can influence the response. Marketing researchers distinguish between closed-end and open-end question provide answers pre-specify all the possible answers. Open end question provide answers that are easy to interpret and tabulate. Open-end question provide answers that are easy to interpret and

Page 10

tabulate. Open-end question often reveal more because they don’t constrains respondents answers.

Finally, the questionnaire designer should exercise care in the wording and sequencing of question. The questionnaire should be simple, direct, unbiased wording and should be pre-tested with a sample of respondents before it is used. The lead question should attempt to create interest

Data sources

Personal Interviewing is the most versatile method. The interviewer can ask more question and record additional observation about the respondent, such as dress and body language. Personal interviewing takes two form in arranged interviews, respondents are contacted for an appointment

Intercept interviews involves stopping people at a shopping mall or busy street corners and requesting them for an interview

Step 3: Collect the Information

The data collection phase of marketing research is generally the most expensive and most prone to error. The information collected should be both accurate and relevant as per as the requirement of research project. Depending on the requirement has to work out a suitable data collection method.

Data collection method can broadly be classified into two major categories listed below.

Primary Method: When a researcher directly collects data then this method is known as primary data method e.g. interviews and questionnaire method

Secondary Methods: the data are termed secondary data when they are not originally collected for use in the research project under consideration, they were collected rather for use by some person or for some other project.

Step 4: Presentation of Findings

As a last step of market research process, results are extracted from the analysis if information and are presented to the related party. The researcher should present major finding that are relevant to the marketing decision facing management. The findings should be written in a concise, simple and objective oriented language.

For the purpose of my project, the analysis was conducted on the basis of following conditions. I have earlier suggested that I am going to categorize the scores into various intervals. Now I have attached scores to all the parameters according to their importance.

Page 11

Consumer Behavior

Page 12

Consumer Behavior is a mixture between psychology, sociology and economics. It is the analysis of when people purchase, what people purchase, how people purchase individual products, and finally why people purchase. The aim is to appreciate the consumer’s decisions and actions. The point of this process is to determine what it is exactly that the buyer wants by studying demographics, psychographics and behavioral variables. This process will also look at the influence that various categories make, such as; reference groups, friends, family, and general society.

Below I have placed a simple chart of the consumer behavior process of the EKB model designed by Engel, Kollat and Blackwell in 1969, that was based on the Maslow’s hierarchy of needs and Freid’s psychoanalytic theory. This chart shows you the various stages in consumer behavior in its strategically order giving a short description to each individual step.

Problem recognition

This occurs when there is a difference between the consumers desired state and the consumers actual state. This is due to a problem in recognition and can be caused by; new products, related products, stock shortage of item, or the dissatisfaction with a current product or service. Buyers are often compelled to confront these differences and this is what launches them into the buying process. Basically problem recognition is a sort of motivation, meaning an aspect that pushes a consumer to buy.

Information search

Is when the buyer has pin pointed the problem; they look for details on the goods and services that could resolve the obstacle. This process can also be looked on as perception, the way by which the consumer collects, selects, interprets and organizes data to produce a significant concept. The buyer will also decided which promotional message he or she will be receptive to. This is done by the selective perception process as consumers will depict information that relates

Page 13

to their own, cultures, beliefs, experiences, attitudes and motives and will of course remember the message that touches them the most.

Information evaluation

How do consumers choose their products? After having compared each brand and product the buyer will evaluate the functional and psychological advantages that each one offers. This is why companies need to figure out how to be part of the brands that the consumer considers. They need to find out what benefits the consumer to be able to attract the consumer with their product. Companies must also take into consideration what sort of criteria the consumer has to be able to fulfill them.

Purchase decision

This is when the buyer has reached a decision point will he buy or not? The consumer might not always follow his purchase decision and so it is the companies duty to facilitate the purchase to the highest point, the company can do so by introducing sales, credit opportunities, payment plan possibilities, creating competitions that influence one to buy products straight away as you could win a prize or they could even introduce premium plans. But the ultimate goal is to make the purchase look the most attractive as possible to the customer.

Social Diffusion

Page 14

HOW THE PROCESS WORKS:

The cycle starts off with the loyal handful who complete the program and are immediately affected by it. They are known as the Innovators. The true risk takers and quintessential salesmen of their time. And as a result of making the first move in the market, the ball begins to roll and others commence to take notice.

The consumer spending cycle now shifts from the Innovators to the Early Adopters of technology. During this transition, these risk takers see what the Innovators have and grab the opportunity to adopt it and make it there own. These people make the product more palatable to mainstream consumers and really do an outstanding job of advertising its strong points. By doing so, they naturally attract the attention of the 80% who are responsible for turning a new and unnoticed well written novel into a New York Times bestseller.

This classification of heros is further known as the Early Majority. Those who are, undoubtedly, slow to react, but quick to help augment. The characteristic that makes these individuals so crucial, is their conservative and analytical mindset. In order to sell the Early Majority, they have to scrutinize at least eighty percent of the product and then effectively link it to their profile and lifestyle. Upon doing so, brand-equity will be enhanced and market share will be diversified.

The assorted market share brought in from the Early Majority ends up acclimating an additional group of its own; the Late Majority. Slow, persnickety, and traditional are just some of the words used to describe this class of technological laggards. These individuals represent the matured market and are usually not concerned with style or trend, which directly reflects their freakishly late spending habits.

A textbook model of this “go and buy” consumer process is the ever popular and recent five year sales of the Apple iPod. Since its release to the world in the early days of October 2001, this product has undergone and effectively hit every level of purchasers outlined above. The chart below takes a look at some of the unit sales figures throughout its market life and the explicit role each classification of consumers has played on making this product

297,000,000 164%2010

Page 15

Key Points:

1. The Innovators are responsible for the initial fiscal 2002 spark of sales. They introduced the iPod to almost a millions of Early Adopters.

2. These adopters allowed the product to almost triple its previous years figures. Igniting an astonishing 146% growth.

3. As a result of the iPod’s 2003 stunning “fashion show”, the Early Majority capitalized on a chance to sync the portable audio player with their personal life. Therefore, providing a one-way road for the Late Majority to follow.

4. The lagging Late Majority makes its mark on the market and positions the iPod as the ultimate consumer music solution.

Marketing Mantra of Apple

Products don’t sell people do

Look carefully at Apple’s iPod commercials. You’ll see lots of happy, energetic people dancing in silhouette against a colorful and ever-changing background. Notice the distinctive white headphones flowing in unison to the owner’s movements. What you don’t see is a focus on iPod. No close-ups of how you select a song or adjust the volume level. Why would Apple take all the time to make a great user interface only to not show it on television? The reason is simple: Apple isn’t selling you an MP3 player. They are inviting you to experience the Apple lifestyle and to become part of the iPod community. Use any other MP3 player and you’ll hear good music. Use an iPod and you’ll feel good. You’ll fit in. Product features don’t create fans. Focus on what people do and show how they feel using your stuff. Those white iPod headphones were not designed by engineers - they are a pure Apple marketing trick designed to make the visible part of their product a status symbol. Wear white headphones and you are a member of the club. Think back to the first PowerBook - it was a unique dark grey color (it was patterned after a color designed by Whirlpool’s Refrigerator research to hide or eliminate fingerprints) In both cases, the distinctive grey PowerBook case and the more recent white iPod headphones are status symbols (and uniquely Apple.) Even the glowing Apple logo was fixed to be right-side up for others (it’s upside down to you when you open your new MacBook because you are selling the brand to others for Apple. ) Figure out how to add something to your product that does for you what Apple’s white headphones do: give people an easy way to sell for you while making them feel like they are part of an exclusive club.

Never Be First to Market

Conventional wisdom says being first to market is advantageous and that Apple is a leader in creating new categories. Conventional wisdom is wrong on both counts. Apple has never really invented anything new. They didn’t invent the PC, the MP3 player, downloadable music, and certainly not the mobile phone. The Mac, iPod, iTunes and iPhone are all successful because they were late to market and improved on existing designs and functionality. Apple does one thing very well: making complex things easy and elegant. The iPod is successful because it makes getting your music into your pocket dead simple. Apple took existing MP3 player designs

Page 16

and applied their experience and technology to improve it. Plug your iPod in its cradle and it takes care of moving your music to your iPod, organized the same way it is on your computer. You’re done (and your iPod is charged at the same time - bonus!) Other MP3 players are still trying to catch up with this elegant brilliance. On the other hand, Apple’s Newton tried to carve out a whole new category - Portable Digital Assistants - and failed miserably. Even the Mac improved on Apple’s Lisa. Just ask Steve. On paper iMac was no better a computer than the Performa it replaced so it was promoted as the easiest way to get on the Internet. That marketing saved the company, not better technology, Today, the iPod doesn’t make your music sound better, provide better battery life, or save you money, What it does is make Apple fans.

Empower Early Adopters

Early adopters are taking a chance on you and want you to succeed. iPhone users feel what early PowerBook users felt in 1993. If you walked down the aisle of an airplane then you’d notice those distinctive grey Apple laptops standing out in a sea of unremarkable beige ones. Track balls and palm rests were real Apple innovations in the day (other laptops had the keyboard on the front lip - Apple fixed that) but the grey color was more important because it did two things at once: hide grime while differentiating its owner. Having a PowerBook was a status symbol so owners were proud to show them off and help win converts. Apple earned nearly 40% marketshare on the back of early PowerBooks users. Look at how iPhone users today are adding their voice to Apple’s own marketing efforts. Real user’s unbiased, heartfelt reporting will convince more people to choose your product than your own polished collateral ever will. How can happy early adopters market for you? Simply provide something with the product that does it for you. Come up with your own version of Apple’s white headphones to make your product stand out. Or borrow another Apple trick - give away stickers or make T-shirts available from your website so owners can proudly display your logo for you. And in the Web 2.0 world, make part of your website embeddable* on any MySpace or FaceBook profile and make it easy to cut and paste your HTML code anywhere.

Make Your Message Memorable

Before the Internet, marketers reached potential customers via print, billboard, radio and TV ads. Marketers had 30 seconds to tell their story and competition was limited to brands with multi-million dollar budgets. But the web changed all that. Today attention spans are only a few seconds long and anyone with an AdSense account can vie for the same customers as big brands. And while a company’s website is now the primary place to tell a story, many marketers push so much drivel at people that most visitors leave without taking action. Webmasters call it the “bounce rate.” Make sure everyone who comes to your website leaves with clarity about you via a tight, memorable message or image, even if they don’t purchase. Only then can they spread your word. Marketing isn’t what you do to reach your first customers, it’s what you do to help your first customers reach the rest. Tight messages are required. Look at how Apple focuses the message. Mac was “The Computer for the Rest of Us.” iPod was “1,000 Songs in Your Pocket. “ iMac was “3 Steps to the Internet.” And Pepsi challenged Coke only after “Choice of a New Generation” These messages are memorable and transcend product features. Lift occurs only after prospects and customers can easily repeat your message to their friends and colleagues. Great marketing entices people to consider your product and purchase it. Apple’s marketing is so good it creates purchases even before people see it. That happens when people do your

Page 17

marketing for you - 250,000 first day iPhone sales proves the point. Remember, Marketing isn’t about what you say, it’s what others say for you. Make sure you equip them with the right words.

Go One Step Further

Marketing is all about the complete package. Walk into an Apple store and you’ll feel less like you are in a store and more like you’re in a museum. This gives future customers a chance to experience the product among other like-minded people in a safe and fun environment. Make your website feel like an Apple store - surround the product with testimonials and customer feedback. Many marketers forget that their relationship with the customer really starts after they buy from you. Make their first experience memorable. Remember, you are counting on your customers to help spread the word - and they need positive experiences to share. So start with the packaging. Look at the iPhone box: finely crafted, with extra touches like velvet-lining reminiscent of a fine watch box. The iPhone rests in a tiny lucite bed, cradling the object d’art. Included is a tiny pamplet called “Finger Tips” (cute, huh) and a cleaning cloth (along with the all important white Apple stickers) The experience of opening an Apple product becomes one more thing to share with the world - Google the plethora of “unboxing” sites dedicated to sharing the experience of opening a new package. Only Apple and Sony rate a high number of people eager to share with the world. Make great packaging and you’ll have earn your own fans. And remember that fan is shorthand for fanatic. The Mac was not just easier to use than the PC - it also had style. Style is Apple’s brand. Creative people gravitate to it because it frees their brain from having to “use” a computer. Designers, authors, artists and your customers are all fans of good design and respond to those extra, thoughtful touches.

Why Apple is so innovative?

Apple continues to impress and astound both the business community and individual consumers. The reason for their success is their ability to be more innovative than their competitors.

Here is a list of the reasons why Apple has continued to be innovative, according to leading businesses around the world who look in awe at Apple’s ability:

1. Apple has always had the ability to create a demand for a product that was previously unheard of. Take, for example, the original success of the iPod and iTunes. Previously, consumers would listen to music either on a CD or the radio. The invention of the iPod and iTunes allowed consumers to listen to music without the required bulk of CDs. Music could easily be stored on a computer without a need for a CD cabinet.

2. Apple has the ability to dominate in every sector they choose to enter, whether that is in home computers (the Mac), music (iPod, iTunes) or mobile phones (iPhone). They enter a sector and instantly they control it.

3. The key to innovation is the willingness and desire to be different. Every product they ship sells instantly. Apple is not afraid to try something unheard of before. This courage is now synonymous with Apple.

Page 18

4. They lead the way, and never follow. While Apple continue to release new and innovative products, their number one competitor Microsoft, are forced to follow. This leadership is one of the reasons for Apple’s success.

5. While Microsoft continues to target the business market, Apple aims their technology towards the consumer, which is a much larger market.

6. Apple struggled greatly in the mid nineties, but they found a renewed success as a result of this innovation. They chose to redefine themselves as opposed to following the leader at the time (Microsoft). Since their success lies within innovative thought, they will continue to dominate for the same reason.

It is evident that if Apple continues at this pace with its innovation it is more than likely to be one of, if not the most, successful and innovative companies ever.

Weird thing, I was talking with my brother last night and he says that in the economic downturn lots of companies are turning towards team building event london to stimulate the employees. I am a little put off by how I feel about this, I mean it’s a nice thought but it is never going to encourage people as much as a nice big bonus is it?

For decades, Apple was a computer manufacturer of products that (in the early days) easily outperformed its competition, but quickly trailed in the business due to Steve Jobs' ego and his subsequent termination. But within just a few years, Apple lost even more market share and Jobs worked his way back to the top of the company he founded with Steve Wozniak. And by throwing out ill-conceived notions of what the consumer truly wanted from his company, Jobs was able to take Apple from possible destruction to its current prominence in record time.

But perhaps the most interesting aspect of the second coming of Apple is the way they did it. Without a complete focus on computers, Jobs was able to redesign Apple's public perception and make it a multimedia company. It began with music and within a few years, it has become audio and video. And if the company's decision to drop 'Computer' from its name is any indication, Apple may be poised to focus on your home with computers reaping the benefits its other devices have created.

Whether you agree with it or not, Apple's decision to focus on making your home the "Apple Home" while allowing its computers division to take a backseat is the smart play for the company.

If you consider Apple's successes over the past decade, very few people can argue it has been on the computing side. Instead, Apple has succeeded in reviving its image with the help of the iPod and (if Steve Jobs has his way) the iPhone. True, the Apple TV isn't all it was cracked up to be, but it was just another step for the company to move away from the computer and work its way into your living room. Recent rumors have suggested that Apple will be adding more multimedia products to its lineup of devices. And if the past is any indication of the future, expect a whole slew of products to hit Apple shelves over the next few years. That said, the company will still

Page 19

roll out periodic updates of its famed computers, but has anyone else noticed these updates have been released without much fanfare lately?

Steve Jobs is in no way a dumb man. He realized that while other companies were focusing on faster processors and beige desktop boxes, his company had to reinvent the wheel to become a major player in this business. Jobs understood the consumer and realized that they didn't want the same old ugly computers and that boring Sony Walkman. Instead, they wanted cool products that set consumer apart from the average person. Jobs even realized that a computer company's success does not necessarily rest in the hands of computer engineers who need to make machines that outdo competition. Simply put, Steve Jobs knew what consumer wanted before they even knew it, and if his business sense hasn't slipped over the past few years, why should consumer doubt it will in the next decade?

As people look around their home and take a mental inventory of what they own and what they don't, consider how many of their products are made by Apple. And while people are taking that inventory consider the kinds of products they wish they owned, but currently don't for some reason. Chances are, in the next decade or so, many of those products will be made by Apple. Apple is ahead of its time. The company was the first to realize design really matters and is still the only company selling computers that understands how to build significant market share: through the home.

Again and again, Apple has its customers frothing with anticipation as they wait for hours in queues to get their hands on whatever piece of magic has just been launched. Whether it’s the iPod, the iPad or the iPhone, buyers seem willing to do anything to be the first to own the device. And when they get them, they even have unwrapping parties.

No other company, especially Microsoft, has managed to replicate this. Apple just has all the pieces in place. Apple’s success is all the more incredible because the gadgets (it seems sacrilege to call them gadgets or devices) have often been feature-starved. I mean, where do they get off coming out with music players that still have no FM radio when every basic Nokia phone has it; how do they have no microphone when barely-known Taiwanese lipstick MP3 players happily double up as full-fledged recorders? But, not only do they get away with it, some say it’s simplicity is one of the magic ingredients.

The simplicity extends to Apple’s design as well. What is so great about a black or white rectangular slab with a window on top? Well, nothing. And yet, people fall over themselves to get one. I could swear Apple has figured out how to exploit man’s natural affinity for geometry. It spends a lot of time on design, and has come up with amazing desktops, notebooks and the pods and phones.

Apple combines design with functionality (even when features are missing) like no one else does. It opens up new markets and user segments by bringing together the sheer desirability of the product with music and apps. So, smartphones existed before the iPhone, but what you can do with one saw a leap forward because of the apps. Same with the iPods that took off in a direction that made them so much more than music players.

With the entry of the iPad, you can see how Apple gets to new consumer audiences. It’s not just how easy the hardware and software is to use, but how new industries are being involved — the

Page 20

newspaper industry, for instance. Tablets existed before, but Apple gets the world to use them for things such as reading newspapers. It makes every profession look at what the device can do for them.

And all the while, that seductive simplicity is maintained. One function is crafted to be a terrific user experience and is taken to the level of extreme desirability so that sheer appeal ends up overriding any rational evaluation of features. And it has done it so consistently that the expectation of any Apple product is that it will be outstanding.

Another key part of Apple’s philosophy is the ecosystem. On the one hand, it tightly controls its components and internal design and access (no third-party compatible components, no end-user battery changes, and it even refuses to go along with the world’s decision to converge to one single USB charger in a couple of years). On the other, it encourages an ecosystem of third-party apps and accessories, creating markets bigger than the core product’s. For instance, in which other industry would you buy an accessory that costs four times than the product? For instance, a good iPod dock costs Rs 40,000.

Finally, there is the big Steve Jobs factor. He has redefined presentation, elevating it to an art form. When Jobs launches a product, the world takes notice; or rather, it drools. Those who can’t be there, follow every bit online. What someone said about how Apple treats each new product is true — like a celebrity. If we were to try this here, we would get the No. 1 Bollywood star to preen onstage. But Apple’s recipe is to treat the gadget like a star. And it works. Right from the rumours and the official silence to the sizzling ads and the end of the campaign on stage with Jobs. 

The Midas touch isn’t replicated in India, where Apple is invisible. If Jobs’ charisma radiates like the sun, the Indian leadership emulates the third moon of Pluto, and occasionally getting replaced en masse (as it did last year). Recently, though, Apple’s retail presence has become more visible in metros, and the 3G rollout will give the iPhone a boost. With success being repeated so many times, it’s hardly surprising Apple products come with a halo, and so far, that’s prevailed.

Complete solutions, familiar formats and “the cool factor” keep customers coming back.

When shoppers sleep outside of stores just to be one of the first to buy an iPhone, it’s obvious that Apple Inc. is a company that enjoys fanatical brand loyalty. However, this brand success is not a result of dumb luck or forces beyond Apple’s control; it’s part of a well-thought-out plan to deliver strong products and create an Apple culture. Find out more about these and other strategies that Apple employs to achieve its tremendous customer loyalty.

1. A store just for Apple: Apple has historically been troubled by big-box sales staffers that are “tragically ill-informed” about its products, a problem that made it difficult for Apple to set its very different products apart from the rest of the computing crowd. By creating a store strictly devoted to Apple products, the company has not only eliminated this problem but has made an excellent customer-loyalty move. Apple stores are a friendly place where Mac and PC users alike are encouraged to play with and explore the technology that the company offers. This is a space where Macheads can not only get service but also hang out with others

Page 21

who enjoy Apple products just as much as they do. By creating this space, Apple encourages current and new customers to get excited about what it has to offer.

2. Complete solutions: Apple’s products complement and complete each other. Buy an iPod, and you can download music via iTunes. For the average user, most Mac programs are produced by Apple. This sort of control over the entire user process, from hardware to software, strengthens customer loyalty. Apple users generally don’t have to stray to find products and solutions they want.

3. Are you a Mac?: Let’s face it, Apple is a hip brand. It pushes a strong identification with everything young, up-to-the-minute and smart. Consider Apple’s I’m a Mac campaign. The Mac guy is smooth and confident, while PC appears uptight and old. Once you’ve become smooth, would you want to go back to uptight?

4. Varied products: Many consumers may not be ready to buy an Apple computer, but they’re willing to give gadgets like the iPod or iPhone a try. By selling products with lower entry costs, it creates an opportunity for new users to be introduced to Apple. If these users enjoy their gadgets, they’re more likely to consider buying an Apple computer in the future.

5. Proprietary formats: Apple products are often not compatible for use with other systems, at least where customer transitions are concerned. If a user has a digital music collection comprised entirely of .aac files, it’s not likely he’ll want to start from scratch with a new MP3 player that won’t accept them. Instead, this customer will probably look at replacing his old Mac with a new Apple model when the time comes.

6. Media fodder: Media outlets, especially bloggers, love to write about Apple. Why? Because Apple makes it so easy. With leaked rumors about new developments, its very own expo and mysterious shutdowns of its online store, Apple gift wraps news stories that are just begging for speculation and hype. By perpetuating this cycle of media frenzy, Apple reminds its customers that they’re excited about buying new Apple products now and in the future.

7. Education sales: By selling its products to schools and universities, Apple turns classrooms into showrooms. If students go through school using Apple products, they become comfortable with the interface and familiar with the superior performance the brand offers. By creating this early exposure, Apple captures customers before they even know that they are customers.

8. Products that deliver: Apple carefully considers what consumers are looking for, so its products are a result of both extensive research and strong design. This meticulous planning is a large contributor to Apple’s high customer-satisfaction rates. It’s plain and simple: robust and easy-to-use products not only make your customers happy, but also make them want to buy more products from you in the future.

9. Outsourcing unpleasantness: With Apple products, the average consumer’s interaction with the company is likely to be low. Unless something goes wrong, you don’t have any reason to

Page 22

speak with an Apple customer service representative. Of course, the iPhone presented an opportunity that could have made Apple much more involved, similar to administering iTunes for the iPod. With a phone, interaction becomes multifaceted. You have to consider billing errors, quality of wireless service, contracts and a number of other factors that often lead to customer frustration. With the iPhone, Apple was wise to stick with building a good product and letting AT&T handle the service.

10. Consistency: All of Apple’s products have the same basic architecture. Because of this consistency, customers who already own Apple products have a good idea of what they’ll be getting before they make a purchase. They know that it will be easy to adapt to new hardware, and this makes them more open to making a repeat purchase.

11. New innovations: Although the architecture of Apple products is consistent, its portfolio is not. The company offers consumers a number of different ways to enjoy its products. By giving customers an opportunity to employ Apple in their living rooms, pockets and offices, Apple makes it easy to stay loyal to a brand they already like.

12. Attractiveness: From packaging to aesthetic design to user-interface experience, Apple makes its products accessible and attractive. Bright colors, a smiling icon and slick-looking hardware remind customers every time they use Apple products that what Apple offers is appealing.

Page 23

Evolution of Ipod

The world’s best-selling music player has changed a lot from the time it got launched to the current period. The day it got launched i.e. October 23, 2001 the whole world was amazed with this awesome Gizmo which was in a white color panel with 5 GB Memory Hard Disk to store upto 1000 songs along with the Revolutionary Click Wheel. It had a 160×128 pixel monochrome LCD Display along with a price of 399$ which seemed to be quite high and a gadget which only The Rich could afford because it offered just music and spending this amount in 2001 was quite a news.

Apple Ipod 2001

By the year 2002, the iPod started getting very much famous among the youth and the sales started increasing and Apple launched few features like back text engrave option costing 50$ and a price of 499$ for a new 20Gb Model with touch wheel, flap for Firewire Port and software upgrades. These updates did look good but the iPod looked more like a Dummy one along with a price hike was a No-No. Also Apple launched the iTunes for Windows along with Mac and made the iPod available for Sync to transfer music.

Apple Ipod 2002

Next in the year 2003, Apple increased the Hard Disk on their 2 available models to 20GB & 40Gb models along with a decrease in the overall size of the iPod. The controls around the Click Wheel were adjusted and this time there were few buttons added next to it for the control of music.

Page 24

Apple Ipod 2003

Now since Apple had already upgraded the Memory of these music players, it was time for some extra enhancements which included super think iPods and a new product called the iPod Mini. This was a lighter product with 4Gb of memory and a small size available in five colors. In the same year the Fourth Generation iPod’s were announced with iPod Photo which allowed users to store and display photos in full colour, making the music player a full featured smart music player and the memory being increased to 40Gb & 60Gb models.

Apple Ipod 2004

2005 is the year Apple launched the iPod Shuffle, a attempt to cater the low budget buyers who are looking for a high quality low priced music player for themselves and also for gifting others. The iPod Shuffle was available in 512Mb & 1Gb models. Along with this there were updates to the iPod Mini in terms of memory space and few product discontinuations. The very same year the iPod Photo got merged into the normal iPod’s making the screen bigger and the space expanded upto 32Gb which is seriously large memory. Since Apple didn’t stop here, the very same year it again launched the iPod Nano followed by the end of iPod Mini because most of the features were same but this supported a new Glossy finish for more stylish looks. The final launch in the same year was of the 5th Generation iPods which allowed users to Play Videos on their players along with Photos at 30Frames/Second Speed which means awesome quality for this small player in H.264 format. The iTunes Software was upgraded and the iPod’s were available in 30Gb & 60Gb Models.

Apple Ipod 2005Page 25

Apple Ipod Shuffle 2005

2006 was the year of Apple iPod Shuffle, where it was reduced to half of its size and it was just a simple player with controllers and no display screen. This was a excellent player for Joggers, Sportsmen, Bikers etc since it had a clip on the behind and you could use it anywhere. There was no built-in USB plug but an external dock was provided on which you had to set the ipod to charge it up. Along with this the iPod Nano 2nd Generation was launched on the same day with aluminium finish and scratch proof surface for more life and multiple colors.

Apple Ipod Shuffle 2006

The Beginning of 2007 saw iPod Shuffle available in four more colours ie orange, pink, blue and green following which at the mid-year the colours were dimmed a bit and the iPod Nano got a bigger 2″ display with QVGA[320x240px] resolution allowing the users to play music, view videos. The most important of this year was the launch of iPod Touch which was a total Touch screen based player with no buttons on the front screen. The users could also browse the Internet, check Emails, Use Google Maps and also install Applications which would be available through the iTunes. It was like the Apple iPhone minus the Phone.

Apple Ipod Shuffle 2007

Apple Ipod Touch 2007

Page 26

2008 didnt see any big updates in this Music Player except memory addition in the iPod Shuffle upto 2Gb and the iPod Nano Chromatic getting new interface along with games, accelerometer, Auto-Rotated User Interface, Shake to Shuffle Songs etc. Along with this a series of colours were available in this year and few iPod models were discontinued. iPod touch was redesigned in terms of shape with the sides becoming more thinner and the player getting hidden bluetooth feature which was available only when it was upgraded to OS3.0 version.

Apple Ipod Nano 2008

The 3rd Generation iPod Shuffle was launched in 2009 which was more small in size but bigger in length with no controls on the players because the earphones cable was going to handle that. It came with a feature called ‘VoiceOver’ which would tell you the name of the track which is being placed and this is quite useful because there is no display to read the track names. Available in just 2 colors Black & silver it had a 4Gb memory capacity. Another big update was in the iPod Nano series where in it got a Video Camera inbuilt within it to record videos at 30Frames/Second with a bigger display of 2.2″. Also featured a built-in FM Radio and live pause feature in radio so that you dont miss any thing if you stop in the middle of any play. There have been huge price drops and also changes in the speed of processor of the iPod Touch to make sure its 50%+ more faster helping the users play games or run multiple applications easily.

Apple Ipod Shuffle 2009

At Apple's September 9, 2009 event, a fifth generation iPod Nano was unveiled with reduced prices on the larger model (at the time of release, the 8GB was priced at $149 and the 16GB at $179), a larger, 56.3 millimeters (2.22 in) diagonal screen (up from 50.8 millimeters (2.00 in) in third and fourth generation iPod Nanos), which is also wider, integrated video camera with 16 special effects, microphone, FM Radio with iTunes tagging (via RDS) multiple radio regions including Americas, Asia, Australia, Europe, and Japan.

Apple Ipod Nano 2009

Page 27

The device now features a smaller 1.54 inch multi-touch screen with a lower resolution of 240x240 pixels but a higher pixel density of 220 pixels per inch, as opposed to the larger 2.2 inch screen on the iPod Nano 5G. The device has a 0.39 watt-hour battery rated at 3.7 volts, giving a capacity of 105mAh, and specified to give 24 hours of music playback on a single charge.

Page 28

Evolution of Macbook

The Macintosh Portable - September 1989

This computer wasn't exactly a laptop, but it was the first Apple computer to be considered truly portable in that it folded up and could be (somewhat?) carried away. It's hard to believe that one of the available models had no backlit screen, and the thing set you back $6,500. Which these days will buy you a 12-core Mac Pro with a few add-ons at the Apple Store. 

Powerbook 100 Series - October 1991

These were Apple's first real laptop. The design set the standard for what would later become part of the typical consumer notebook. It added the space for the palm rests and placed the trackball (later replaced with trackpads) in the middle, where it would sit between the wrists.

PowerBook Duo - 1992

This laptop was definitely compact for the time, and may be more along the lines of the MacBook Air today. Wikipedia describes them as "very thin and lightweight laptops with a minimum of features." How small was it? Try 4.1 pounds and about 10.9 x 8.5 at 1.4-inch thick. That's a smaller footprint than many of today's laptops, but it's pretty thick and very heavy compared to what many of us are used to these days. 

Page 29

PowerBook 5300 Series - August 1995

These are described as the first Apple laptop to be equipped the PowerPC line of processors that would power Apple computers for many years to come. Despite being a major upgrade over previous generations of Apple laptops, this was regarded as one of Apple's worst products of all time. It was notorious for its exploding batteries, hinge problems and heating issues. 

PowerBook 1400, 2400 and 3400 - October/November 1996

These laptops were released about a year after the poorly-received PowerBook 5300 (also known as theFireBook) and ran for $2,499. These notebooks were the first in Apple's line to feature a CD-Rom Drive (Zip and the floppy drives were also available at the time). What was most interesting about the computer was that the drive was swappable, so you could use any of the three disc types with the computer. The feature was introduced with the 5300 line, which was short-lived thanks to the problems it had. 

PowerBook G3 - November 1997

This is when laptops started becoming more attractive. They were available with 12-, 13- and 14-inch displays and featured a nicer, curvy design unlike past laptops from Apple, which were very boxy in appearance.

Page 30

 

PowerBook G4 Titanium (TiBook) January 2001

This is when Apple started using metals for the outer-housing of their laptops. It was made out of titanium, and became known lovingly by its owners as the TiBook. They were very slim for the time at just one inch, and had the slot-loading optical drive. 

PowerBook G4 Aluminum (AlBook) - January 2003

This was Apple design at its best, and would eventually set the tone for their future professional laptops. Though looking back at our old Aluminum PowerBook G4 12-inch, the poor thing is barely functional and looks ancient by today's standards, it was still one of our favorite laptops ever. Apple stuck to this basic design while upgrading their processors over the years until the MacBook Pro line was introduced. 

MacBook Pro LineWhen the laptops made the switch to Intel rather than PowerPC the name also changed. Apple ditched the name PowerBook, and named their professional-grade laptops MacBook Pros. 

Original MacBook Pro - January 2006

Page 31

There weren't very major changes as far as appearance went when the MacBook Pro was first introduced. The name changed, the processor became an Intel (and became a good deal faster), and Apple introduced their MagSafe power supplies. 

MacBook Pro Unibody - October 2008 to present

This is the current model of MacBook Pro. The laptops have seen minor increases in performance over the years, but the body has remained largely the same. It's the popular unibody construction of the current Apple laptops, and has become the standard for the company's notebooks. 

The iBook LineApple's iBook line was introduced as a more consumer-friendly cost-effective line of computers. 

iBook G3 (Clamshell) - July 1999

Yet another popular design by Apple. This laptop was the first in Apple's more consumer-friendly approach to computing. The curvy, colorful design attracted several users. It was definitely a fun, friendly design. Even if just aimed at non-professional computer users.

iBook G3 (Dual USB) - May 2001

Page 32

This color scheme would be used for future consumer-grade Apple Notebooks. It was a simple white plastic casing. This particular model had the transparent finish, which would later be abandoned. Still, the simple white design has stuck since. 

iBook G4 - October 2003

The keys were greatly improved on this model. Anyone who remembers the iBook G3 (Dual USB) knows that the laptop had a pretty funky keyboard. It was a strange design molded from a single piece of plastic...or at least it felt that way. It was pretty tough to describe, but it didn't feel right. This was a vast improvement over its predecessor. 

MacBook LineThen was the jump to Intel. Like the PowerBook line, the iBooks took on a new name. They became MacBooks. Let's take a look at those. 

Original MacBook - May 2006

This computer came in both white and black. The particular model shown above was an interesting design choice for Apple, because it was the only laptop they had released in black since the PowerBook G3 almost ten years before. When the MacBooks were updated, the black plastic design was also dropped.

Aluminum Unibody MacBook - October 2008

Page 33

This laptop was very short-lived, in a sense. It was the unibody aluminum MacBook. It took the best of theMacBook Pro (metal casing) and the best of the MacBook (more consumer-friendly cost) and put them together to make this laptop. Unfortunately, this didn't last long as it was later rebranded as the new, base-line MacBook Pro. The bright side is that this smaller model kept the pricing while picking up the Pro name.  

Plastic Unibody MacBook - October 2009

Having personally skipped a few generations (PowerBook G4 up until this model) there was a lot I hadn't seen in the evolution of Apple's notebooks. This is the model that currently sits on my desk, and it's a pretty nice little computer. In fact, we like the design and price a bit better than we do the introductory-level MacBook Pro. Works well enough for anything we do with the computer. 

MacBook Air Line

MacBook Air - January 2008

Apple introduced the MacBook Air in January 2008. The laptop was extremely thin, but users were still reluctant to say goodbye to the optical drive. That, combined with the asking price and slower speeds made it a very undesirable computer (and issues that would plague it later). Yes, it was slim, but that alone wasn't enough to entice most users. 

Page 34

MacBook Air (Current Model) - October 2010

This is a sweet little computer. It's everything that the original was hoping to be and more. The price was greatly reduced, with the introductory model setting users back $999, which is about as much as the current MacBook, and it made huge improvements over the original by adding a solid state drive (SSD) as standard and slimming down even further. Some criticize the weak storage capabilities of the computer, but it makes for a very nice travel companion.

Iphone Evolution

The iPhone was released on June 29, 2007 in the United States where hundreds of people were

reported to have queued outside Apple and AT&T retail stores days before the device's

launch; with many stores reporting stock shortages within an hour. To prevent a repeat of

the PlayStation 3's launch, which caused burglaries and even a shooting, off-duty police officers

were hired to guard stores overnight. It was later made available in the United Kingdom, France,

and Germany in November 2007, and the Republic of Ireland and Austria in the spring of 2008.

In the United Kingdom, the original iPhone was released at 6.02pm to relate to the exclusive

carrier 02 who were the only original carriers to supply the phone in the UK. Six out of ten

Americans surveyed said they knew the release date of the iPhone.

Page 35

The iPhone 3G is the second generation of iPhone. It was the successor to the original iPhone,

and is succeeded by the iPhone 3GS. Introduced on June 9, 2008 at the WWDC 2008 at

the Moscone Center, San Francisco. The 3G was very similar to its predecessor, containing the

same 2 MP camera and no support for video recording, and its performance was limited by the

same 128 MB eDRAM memory unit. Nevertheless, the 3G featured several improvements over

the original. It supported Assisted GPS, 3G data and Tri-band UMTS /HSDPA.

The iPhone 3G runs Apple’s iOS operating system, the same operating system used on

previous iPhones, the iPad, the Apple TV, and the iPod Touch. It is primarily controlled by a

user’s fingertips on the multi-touch display, which is sensitive to fingertip contact. Without

modification, the iPhone restricts users from running any software that is not explicitly approved

by Apple and distributed via its App Store. Doing so could potentially cause issues with software

functionality which may not be covered under warranty.

The iPhone 3G no longer receives software updates from Apple as of March 11, which was the

date iOS 4.3 was released. It is no longer supported.

The iPhone 3GS is the third generation of iPhone designed and marketed by Apple Inc. It was

introduced on June 8, 2009 at the WWDC 2009 which took place at the Moscone Center, San

Francisco.

Its features primarily consist of faster performance, a camera with higher resolution and video

capability, voice control, and support for 7.2 Mbit/s HSDPA downloading (but remains limited

Page 36

to 384 kbps uploading as Apple had not implemented the HSUPA protocol). It was released in

the U.S., Canada and six European countries on June 19, 2009, in Australia and Japan on June

26, and internationally in July and August 2009.

The iPhone 3GS runs Apple's iOS operating system, as is used on the iPad and the iPod touch. It

is primarily controlled by a user's fingertips on a multi-touch display.

The iPhone 4 is a touchscreen smartphone developed by Apple. It is the fourth

generation of iPhone, and successor to the iPhone 3GS. It is particularly marketed for video

calling, consumption of media such as books and periodicals, movies, music, and games, and for

general web and e-mail access. It was announced on June 7, 2010, at the WWDC 2010 held at

the Moscone Center, San Francisco, and was released on June 24, 2010, in the United States, the

United Kingdom, France, Germany and Japan.

The iPhone 4 runs Apple's iOS operating system, the same operating system as used on previous

iPhones, the iPad, and the iPod Touch. It is primarily controlled by a user's fingertips on

the multi-touch display, which is sensitive to fingertip contact.

The most noticeable difference between the iPhone 4 and its predecessors is the new design,

which incorporates an uninsulated stainless steel frame that acts as the device's antenna. The

internal components of the device are situated between two panels of chemically

strengthened aluminosilicate glass. It has an Apple A4 processor and 512 MB of eDRAM, twice

that of its predecessor and four times that of the original iPhone. Its 3.5-inch (89 mm) LED

backlit liquid crystal display with a 960×640 pixel resolution is marketed as the "Retina

Display".

Page 37

The iPad is a line of tablet computers designed, developed and marketed by Apple Inc. primarily

as a platform for audio-visual media including books, periodicals, movies, music, games, and

web content. Its size and weight falls between those of contemporary smart

phones and laptop computers. The iPad runs the same operating system as the iPod Touch and

iPhone—and can run its own applications as well as iPhone applications. Without modification,

and with the exception of websites, it will only run programs approved by Apple and distributed

via its online store.

Like iPhone and iPod Touch, the iPad is controlled by a multitouch display—a departure from

most previous tablet computers, which used a pressure-triggered stylus—as well as a virtual

onscreen keyboard in lieu of a physical keyboard. The iPad uses a Wi-Fi data connection to

browse the Internet, load and stream media, and install software. Some models also have

a 3G wireless data connection which can connect to HSPA data networks. The device is

managed and synced by iTunes on a personal computer via USB cable.

Apple released the first iPad in April 2010, and sold 3 million of the devices in 80 days. During

2010, Apple sold 14.8 million iPads worldwide, representing 75 percent of tablet PC sales at the

end of 2010. By the release of the iPad 2 in March 2011, more than 15 million iPads had been

sold — more than all other tablet PCs combined

Page 38

Apple TV

First generation

Within the first week of presales in January 2007, Apple TV was the top selling item at

the Apple Store. Orders exceeded 100,000 units by the end of January and Apple began ramping-

up to sell over a million units before the 2007 holiday season. Analysts began calling it a

"DVD killer" that could enable multiple services. Analysts also predicted that Apple could sell

up to 1.5 million units in the first year. Besides the Apple Store, Best Buy was one of the first

retailers to carry the device; Target and Costco followed shortly thereafter.

Two months into sales, Forrester Research predicted that Apple would only sell a million Apple

TV units, because consumers prefer advertisement-supported content over paid content. Forrester

predicted that cable companies would be the clear winners over content providers such as the

iTunes Store. Shortly after, Apple released YouTube functionality and Jobs stated that Apple TV

was a "DVD player for the Internet". Market analysts immediately saw that YouTube on Apple

TV "provides a glimpse of this product's potential and its future evolution", but overall, analysts

had mixed reactions regarding the future of Apple TV. Some negative reactions followed after

Jobs referred to the device as a "hobby", implying it was less significant than the Macintosh,

iPod, and iPhone.

In the fourth quarter of 2008, sales were triple that of the fourth quarter of 2007.

In Apple's first-quarter 2009 financial results conference call, acting chief executive Tim Cook

stated that Apple TV sales increased three times over the same quarter a year ago. Cook

mentioned that the movie rental business was working well for Apple, Apple would continue

investment in movie rentals and Apple TV, but Apple TV is still considered a hobby for the

company. Due to the growth of digital TV and consumers turning to Internet media services, an

analyst predicted sales of 6.6 million Apple TVs by the end of 2009.

Page 39

Second generation

In September 2010, Apple announced a second-generation version of the Apple TV. About one quarter of the size and one third of the price of the original Apple TV, the new device can stream rented content from iTunes and video from computers or iOS devices via AirPlay. The new version no longer has the hard drive; however, it does have an undocumented internal 8 GB flash storage, speculated to be used for smoother playback of streamed media. All content is drawn from online or locally connected sources.

The second generation sold 250,000 units in the first two weeks it was available. On December

21, 2010, Apple announced that they had sold 1 million units.

The Apple TV has been a bust for several reasons. The Apple TV is fettered to the embarrassingly anemic and expensive library of third-rate movies available in the iTunes Store.

People already had huge amounts of music when the iPod came along. The Apple TV could have been in a similar situation with modern file-sharing technologies like BitTorrent and Usenet, but it’s designed to play video encoded only in H.264 and protected H.264 (the locked format used by the iTunes Store).

These limited video formats aren’t commonly found on the file-sharing networks. One of the main hacker forums, AwkwardTV, makes it clear it does not advocate using Apple TV to watch pirated content.

The problem is that iTunes on Windows is just terrible for watching videos, It’s super easy to acquire almost any video content, from popular Korean soap operas to obscure science documentaries. There’s been an explosion recently of TV shows and movies online.

Apple TV is an odd device. It can't browse the Web for online video, and what it draws from iTunes is tied up with movie studios' distribution rules. However, at the moment, it doesn't need to be everything to everyone. Consider it Apple's foot in the living room door. Regardless of whether Apple TV makes an appearance on Sept. 9, odds are it's waiting for just the right time to reinvent itself.

Various industry experts have been predicting for years that Apple would eventually produce an all-in-one Apple TV unit -- the screen, the hardware, the software. Basically, glue an Apple TV to the back of a flat-screen TV and integrate the remote.

Either way, it's been more than two years since there's been any significant hardware update, though Apple has released a few software updates from time to time.

So what about the Apple TV? CEO Steve Jobs once famously dismissed it as a "hobby," but Apple lovin' fans tend not to believe him. In financial reports to Wall Street, Apple is noncommittal about the product, and writers and analysts who tend to have beefs with Apple or affiliations with other companies have a tendency to note it as an example of an Apple failure, most usually in passing when they're talking about something else, like a possible Apple tablet

Page 40

device or some other HDTV extender or similar media device that's been released by another company.

Why Is the Apple TV Hobbled?

The Apple TV an astoundingly easy-to-use and powerful HDTV extender device ... and yet it's irritatingly hobbled at the same time. It links seamlessly to iTunes, lets you buy and rent movies and TV shows online via iTunes or the Apple TV device itself, and it lets you move those movies to and from iPods and iPhones for your viewing pleasure. You can even watch video in 720p HD, which upscales surprisingly well on 1080p HDTVs, and the standard definition content is very watchable, too. It's not as good as Blu-ray, of course, but the Apple TV and iTunes ecosystem is much more portable than Blu-ray and DVDs. It's all about convenience.

While we're talking video, there are also a lot of free podcasts, video podcasts, and university-quality lectures ready to run on the Apple TV. The point: There's plenty of available high-quality content.

Meanwhile, the Apple TV does a superb job of showing off photos. It syncs automatically with iPhoto, and when you add new photos to iPhoto, the Apple TV will wirelessly snag them and have them ready for viewing. The built-in slide show options are slick, and while most newer HDTVs have SD card slots that will let you pop in and display photos, the Apple TV has a hard drive that will hold thousands of high-quality photos -- and in my experience, tends to create a more pleasing slide show, too.

And there's music. It's easy to listen to tunes, which can be hooked up to your home theater speaker system, and let a photo slideshow run at the same time. Nice. Instead of snapshots that are taken and lost to some computer hard drive (because, really, who's printing them out and putting them in albums these days?), they show up for the viewing pleasure of friends and family. Besides, your photos -- at least, my photos -- have a tendency to remind me what's really important about life. Once you try making your slide shows ubiquitous in the your daily life, you'll understand what I mean.

It also lets you view YouTube videos or MobileMe or Flickr galleries, but it doesn't let you access other streaming video Web sites, run a browser, or let you check your email. It's not a home theater PC, just this weird box in the middle, and I think that's why it gets flack.

There's also a tendency to criticize the limitations the Apple TV as if they were Apple's limitations -- and this happens to other devices, too. Take, for instance, the fact that users can only rent movies for a 24-hour period after they start watching them. This is not Apple's limitation; this is a movie industry rights management limitation. Want to rent a movie on-demand from Dish Network? Same rules apply.

So what about a Web browser that could run Flash or Silverlight and let you stream online video content to your HDTV? Here's an area where Apple seems disinclined to play ball -- assuming the Apple TV hardware components are capable of delivering a long-term joyful experience,

Page 41

online streaming lets consumers leave Apple's iTunes playground. I'm sure Apple isn't interested in that.

Of course, online streaming would mean that Internet service delivery problems or cable ISP traffic throttling could create a bad user experience for Apple TV owners, who might blame the device and not their carrier. (In-home streaming over your WiFi network is excellent, by the way -- the quality is great and I've never had a hiccup.)

So Where Does That Leave Consumer Today?

The Apple TV enjoys what I would call a healthy enthusiast community of users who've hacked and upgraded the hard drives in their devices. Google "Apple TV hack" and you'll see what I mean.

Meanwhile, Apple may be caught between a rock and a hard place. An upgraded model capable of browsing the Web would let consumers bypass iTunes purchases, and if it came with a nice keyboard option, it could replace some Macs in the home. If Apple could navigate the byzantine digital rights issues with movie studios and production companies and offer a subscription solution to content, the Apple TV could take off and be more profitable than via a simple hardware margin.

Regardless, it's really clear that Apple is a consumer-focused company and has made billions on selling media, and where's the next generation of convergence? The living and in mobile devices. So somehow, some way, Apple is going to ensure that it has a solution that plays well with HDTVs ... and at some point, when the manufacturing costs and content management rights issues converge in a way that makes sense, Apple will just build its own all-in-one Apple TV.

Page 42

Data Analysis

For Apple Users – 50 Apple users were given the questionnaire to be filled. Due to lack of sample size, the samples are mainly confined to students in the age group of 20-30.

Table - IApple Products used By Consumer

Product No. Of UserMacpro 6Macbook 8Iphone 11Ipod 23Ipad 2Apple Tv 0Total 50

Conclusion – The most used product from Apple is Ipod which is also their highest selling product. Few people use Iphone and number of people who use Macbook or Macpro is very limited confined to business class and devoted consumer only. Apple tv is not used by anyone in the sample size.

Table IIUsage of Apple Product

Period No. Of UserLess than 6 Months 86 months – 2 years 17

2 – 4 years 13

More than 4 years 12Total 50

Conclusion – Most of the consumer have been using their Apple product for 6 month – 2 years. Consumer who have been using Apple product for 2-4 years and more are the ones which have older version as ipod have a life of around 4 years.

Page 43

Table IIIConsumer responses toward various statements about Apple and Themselves

Question Strongly Disagree

Disagree Neutral Agree Strongly Agree

Total

I am proud to tell others that I own Apple Product

0 2 5 17 26 50

I would recommend Apple to other

4 6 12 14 14 50

I prefer to pay more for high quality of Apple Product

13 9 11 8 9 50

Compare to other Brand Apple has highest quality

0 0 9 17 24 50

Apple provide value added feature on its product

16 13 8 9 4 50

For me it is hard to switch to other brands

6 4 13 9 18 50

Apple offers good value for the price I paid

8 6 13 15 8 50

Apple fulfills his obligation towards the customer

5 13 14 10 8 50

Apple product matches my lifestyle and taste.

0 0 9 16 25 50

Overall I am a customer who is very loyal to Apple.

7 11 8 13 11 50

Conclusion – Apple product owners are very loyal to its brand and feel proud in showing of their Apple product. One common complaint that almost all consumer have is that of value added features and price of their product. They find that competitor offers the same features in their product at fewer prices. Apple charges more for their innovative design and feel.

Table IVWords describing relationship between Apple and Consumer

Statement No. of People

A brand for me 17

A brand that helps to live life the way I want

23

A fun brand 14

A brand that fits all my areas of lifestyle 32

An innovative brand 11

Page 44

A brand that keeps me connected 17

A brand for business people 9

A brand that I am proud to own 27

Total 150

Conclusion – Most of the people find that Apple product are very trendy and match their lifestyle. It makes them more fashionable and product also fulfills their need. The consumers are proud to own an Apple product which let them have fun on the go.

Page 45

For Non Apple Users – 50 Non-Apple users were given the questionnaire to be filled. Due to lack of sample size, the samples are mainly confined to students in the age group of 20-30.

Table IBrand which comes to consumer mind when they think of High-end MP3/PVP

Features Reliability Service Accessibility SafetyApple 18 11 13 19 16Creative 17 12 7 12 11Cowon 4 9 9 4 13Sony 6 14 13 9 7Philips 5 4 8 6 3

Conclusion – Most of the Non-consumer rank Apple high in terms of features, service, Accessibility and Safety. The only close competitor is creative and Sony

Table IIBrand which comes to consumer mind when they think of High-end cell phones

Features Reliability Service Accessibility SafetyApple 14 13 8 5 5Blackberry 18 9 8 13 19Nokia 7 16 20 17 8HTC 9 8 5 6 10Sony Ericsson

2 6 9 9 8

Conclusion – The non-consumer rank Blackberry and Nokia high when it comes to High-end Phones. Apple lack features of Blackberry while Nokia score in terms of Service and Accessibility

Table IIIBrand which comes to consumer mind when they think of High-end desktops

Features Reliability Service Accessibility SafetyApple 19 17 10 6 19Dell 23 18 24 27 16HP 8 15 16 17 15Acer 0 0 0 0 0Asus 0 0 0 0 0

Conclusion – Dell and HP being the market leader scores high when it comes to high-end desktop. Also Dell features customized desktop which is not offered any other competitor

Page 46

Table IVBrand which comes to consumer mind when they think of High-end Laptops

Features Reliability Service Accessibility SafetyApple 14 17 6 6 5Dell 14 14 24 21 16HP 13 8 13 16 18Acer 0 0 0 0 0Sony 9 11 7 7 11

Conclusion – When it comes to high-end Laptops, Dell and Hp scores the highest again, Followed by Sony and Apple.

Table VBrand used by consumer in Various Product categories

BrandMP3/PVP player Sony – 12 ConsumerDesktop Dell – 27 ConsumerLaptop Lenovo – 38 ConsumerCell Phone Blackberry – 13 Consumer

Conclusion – Lenovo being provided from college is used by majority of students and also Blackberry is mostly used by non-apple user. In MP3/PVP segment most consumer uses Sony while Dell is used in the most household as desktop

Table VIConsumer responses toward various statements about Apple and Themselves

Question Strongly Disagree

Disagree Neutral Agree Strongly Agree

Apple products have high technology. 13 12 9 11 5

Apple products use good material in manufacturing.

4 7 8 13 18

I can quickly recall the symbol or logo of Apple.

0 0 0 14 36

When I think of Apple brand, it provides concept of the best product in my mind.

9 13 4 10 14

I have the positive attitude toward Apple

3 7 12 16 12

Apple offers good value for the price they charge.

11 8 4 14 13

When I want to change to another 18 11 3 6 12

Page 47

brand, it incurs cost to meCompared to other product, Apple product have more features

17 15 4 8 6

Conclusion – Most of the Non Consumer agree that though Apple product have high build quality and design they lack features. They are best in what they do but they do very less.

Finding and Analysis

Page 48

Main aim of any research, which is conducted in the market place, is to bring in the light hidden and basic facts, which effect or can affect the business of company in any mode directly and indirectly. These hidden truths and basic facts, which are outcomes of the research conducted, are known as findings. The information gathered from the market, which can be accountable in the achievement of the objective for the company is also a part of the findings. The result of the assigned project in management studies is also a part of it.

The findings of the project are as follows:

1. Aggressive promotional strategy is used by Apple2. Apple is the market leader in MP3/PVP segment with almost no competitor though it

competed heavily with Dell and HP in Desktop and Laptop segment3. People are not very much aware about other offerings like software Development. They

think that Apple deals only in Desktop, laptops and MP3/PVP sector4. Apple, Sony, Dell, HP are the companies that are top in the minds of brand oriented and

Brand Aware Customer.5. Cost and quality are two major factors that are taken into consideration by people making

the purchase.6. People are concerned more about after sale service which is a USP for Apple along with

its wide distribution.7. Apple scores heavily on design and they are the best at what they do, though they do less.8. Apple being very expensive and though they don’t have huge markets share in Desktop

and Laptop Segment.

Suggestions and Recommendations

Page 49

1. Apple has good brand image in the field of MP3/PVP. But Apple is not popular in Laptops and Pcs. Company should also promote these products and utilize its brand image.

2. Apple is not advertising much for its product frequently in television channel etc. advertising should be made frequent to let the people remembered the name of Apple.

3. Relation between the customer and company is the base of growth for any company. Company should maintain good relationship with its big customers such as institution, corporate, school, colleges and should also have good relation with the end users. Company can send cards and invitation to the customer from time to time or on certain occasion.

4. Hoarding of company product should be kept at prime location where maximum people can see it.

5. Until and unless after sale service of the company is not good, it is not possible for the company to increase the sale. Apple though has very efficient and effective after sale service but there are areas of improvement.

6. iPod is considered to be a trend setter and one of the most wanted items for the teenagers. This image must be enhanced to even adults owning an iPod and associating with it. It is also meant for people who like to be simple, and that is why the design of the iPod is simple. But this aspect is forgotten by the consumers and should be revived.

Conclusion

Page 50

Apple is a market leader in the fields of MP3/PVP. It is No. 1 Company from the inception of the product and it hopes to continue this trend in future. But to sustain this leadership company has to improve its advertising policy.

Most of the people associate Apple with hardware products and very few know that Apple also provide software services. They believe that Apple is typically a hardware company hence; Apple has to break its myth and provide itself in other fields too.

The marketing strategies used by Apple Inc. to promote iPod are not sufficient as the competitors are rising. There are many aspects of iPod which are yet to be explained to the remaining market. These aspects can be shown by applying different marketing strategies explained below.

1) iPod has created a niche of its own, and formed a community which includes all iPod owners sharing music files, podcasts, videos, etc. This aspect must be highlighted in the marketing strategies, as the people today are in search of belonging to a group and want to get rid of the isolated world they are in. Therefore, more events, competitions, group meetings, fun fairs should be organized by Apple where people of similar interest can meet up and share their interests.

2) The advertisements for iPod mostly consist of teenagers and people who are stressed and want to comfort them by listening to music. This target market is very limited as travelers, people exercising and playing sports, working, walking, doing any form of outdoor activity, and also people indoors can be users of iPods. If advertisements targeting these groups are shown on television and newspapers, it can increase the sales of the iPod.

3) Apple is well known for not keeping discount offers or bundles. This can be positive and negative. The positive is the brand image is not hurt and therefore, it shows high price=high quality. But there are a lot of people who buy products only when there is a discount offer or a sale going on. To attract such customers, Apple should provide seasonal sales.

4) Apple should concentrate more on emotional appeal of the consumers. The iPod accessories are introduced by 3rd party and not by Apple itself. This way, apple is losing on a big chunk of market which can generate heavy revenues for the company as many consumers like accessorizing their iPod according to their likings.

5) There are many versions of iPods and each iPod has its own specialty. iPod should provide proper product differentiation in its catalogues, internet, and television ads, so that the consumers can make a rational decision and associate the iPod with their lifestyle.

Bibliography

Page 51

Books Consumer Behavior: Building Marketing Strategy (Irwin/Mcgraw-Hill Series In

Marketing) Research Methodology – C.R. Kothari Marketing Research – G.C.Berry

Websites

Apple - http://www.apple.com Wikipedia - http://www.en.wikipedia.org PC magazine - http://www.pcmag.com/article2/0,2817,2037089,00.asp Computer World - http://www.computerworlduk.com/indepth/infrastructure/1099/macworld-

apples-macbook-air--evolution-not-revolution/ Maclist - http://www.maclist.net/2010/03/19/why-apple-is-so-innovative/ Ibummed - http://ibummed.com/uncategorized/consumer-behavior-report-apple-ipod/

Magazine

Business Today - 1. Apple Integrated Music offering………. 2. Fresh Apples

Business World – 1. How does Apple do it by Mala Bhargava 2. Apple Has 95% of Tablet Market

Outlook - 1. Apple of the Eye by REIHAN SALAM 2. Apple’s No-show

Questionnaire (For Apple Users)

1. Gender

Page 52

Male Female

2. AgeLess than 20 years20 – 30 years31-40 yearsMore than 40 years

3. OccupationStudentBusinessmanGovernment OfficerPrivate Officer

4. Which Apple Product do you use?MacPro

MacBook Iphone IPad

IPodApple tv

5. You have used Apple products forLess than 6 months6 months – 2 years2 – 4 yearsMore than 4 years

6. Please rate your response toward Apple by making a choice in the box that is corresponding with your feeling.

Question Strongly Disagree

Disagree Neutral Agree Strongly Agree

I am proud to tell others that I own Apple ProductI would recommend Apple to otherI prefer to pay more for high quality of Apple ProductCompare to other Brand Apple has highest qualityApple provide value added feature on its productFor me it is hard to switch to other brandsApple offers good value for the price I paid

Page 53

Apple fulfills his obligation towards the customerApple product matches my lifestyle and taste.Overall I am a customer who is very loyal to Apple.

7. Which is Apple’s biggest competitor in Consumer electronics segment and why?

8. Which is Apple’s biggest competitor in software segment and why?

9. Select 3 words which describe your relationship with Applea) A brand for meb) A brand that helps to live life the way I wantc) A fun brandd) A brand that fits all my areas of lifestylee) An innovative brandf) A brand that keeps me connectedg) A brand for business peopleh) A brand that I am proud to own

For Non Apple User

1. GenderMale

Page 54

Female

2. AgeLess than 20 years20 – 30 years31-40 yearsMore than 40 years

3. OccupationStudentBusinessmanGovernment OfficerPrivate Officer

4. You didn’t bought Apple Product because

5. Which brand comes to you mind when you think of high end MP3/PVP player and why?

Features Reliability Service Accessibility SafetyAppleCreativeCowonSonyArchos

6. Which brand comes to you mind when you think of high end cell phone and why?

Features Reliability Service Accessibility SafetyAppleBlackberryNokiaHTCSony Ericsson

7. Which brand comes to your mind when you think of high end desktop and why

Features Reliability Service Accessibility SafetyApple

Page 55

DellHPAcerAsus

8. Which brand comes to you mind when you think of high end laptops and why?

Features Reliability Service Accessibility SafetyAppleDellHPAcerSony

9. Which brand do you use for

BrandMP3/PVP playerDesktopLaptopCell Phone

10. Please rate your responses in regard to the following question

Question Strongly Disagree

Disagree Neutral Agree Strongly Agree

Apple products have high technology. Apple products use good material in manufacturing.I can quickly recall the symbol or logo of Apple.When I think of Apple brand, it provides concept of the best product in my mind.I have the positive attitude toward AppleApple offers good value for the price they charge.When I want to change to another brand, it incurs cost to meCompared to other product, Apple product have more features

Page 56