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I evolutionApple’s annual report

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What is evolution?

The theory of evolution is one of the great intellectual revolutions of human history, drastically changing our perception of the world and of our place in it. Charles Darwin put forth a coherent theory of evolution and amassed a great body of evidence in support of this theory. In Darwin’s time, most scientists fully believed that each organism and each adaptation was the work of the creator. Linneaus established the system of biological classification that we use today, and did so in the spirit of cataloguing God’s creations.

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evolution 1Our valeurs

evolution 3 Statistics

evolution 2Story

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Our Valeurs

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Evolution valeurs

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 to create an Apple culture. Find out more about these and other strategies that Apple employs to achieve its tremendous customer loyalty.

A Store Just for Apple: Apple has historically been troubled by big-box sales staffers who are 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.

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Apple stores are a friendly place where Mac and PC users alike are

Apple evolution

Complete Solutions: Apple’s pro-ducts 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 en-tire user process, from hardware to software, strengthens custo-mer loyalty. Apple users generally don’t have to stray to find pro-ducts and solutions they want.

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?

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Natural evolution by Jean-Baptiste de Lamarck

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When environments changed, organisms had to change their behavior to survive.

First evolution

Lamarck was struck by the similarities of many of the animals he studied, and was impressed too by the burgeoning fossil record. It led him to argue that life was not fixed.

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« In all that nature operates, it does nothing abruptly. »*

Species evolutionby Charles Darwin

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Darwin’s Theory

Darwin’s theory of evolution entails the following fundamental ideas. The first three ideas were already under discussion among earlier and contemporaneous naturalists working on the “species problem” as Darwin began his research. Darwin’s original contributions were the mechanism of natural selection and copious amounts of evidence for evolutionary change from many sources.

He also provided thoughtful explanations of the consequences of evolution for our understanding of the history of life and modern biological diversity. Species (populations of interbreeding organisms) change over time and space.

When shoppers sleep outside of sto-res just to be one of the first to buy an iPhone, it’s obvious that Apple Inc. is a company that enjoys fanati-cal 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 to crea-te an Apple culture. Find out more about these and other strategies that Apple employs to achieve its tremendous customer loyalty.

A Store Just for Apple: Apple has historically been troubled by big-box sales staffers who are 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 ex-plore the technology that the com-pany offers. This is a space where Macheads can not only get service but also hang out with others who enjoy Apple products just as much

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Species lawSimilarities among groups of organisms were considered evidence of relatedness, which in turn suggested evolutionary change. Darwin’s intellectual predecessors accepted the idea of evolutionary relationships among organisms, but they could not provide a satisfactory explanation for how evolution occurred.

« The species that survive are not the strongest species, nor the most intelligent, but those that adapt best to changes. »

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Space evolutionby Edwin Hubble

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The existence of galaxies

Edwin Powell Hubble (November 20, 1889 – September 28, 1953)was an American astronomer who is known for Hubble’s law. He is incorrectly credited with the existence of galaxies other than the Milky Way and galactic red shift- discoveries made by the astronomer Vesto Slipher in 1912.

He popularized Vesto Slipher’s discovery that the loss in frequency—the redshift—observed in the spectra of light from other galaxies increased in proportion to a parti-cular galaxy’s distance which was based Slipher’s data became known as Hubble’s law.

« Fashion is the science of appearances, therefore, it gives us the desire to seem rather than being. »

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Technologic evolutionby Gordon Earle Moore

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Moore’s law Moore was born in San Francisco, California, but his family lived in nearby Pescadero where he grew up. He received a B.S. degree in Chemistry from the University of California, Berkeley in 1950 and a PhD in Chemistry and minor in Physics from the California Institute of Technology (Caltech) in 1954.

Prior to studying at Berkeley, he spent his freshman and sophomore years at San José State University, where he met his future wife Betty. Moore completed his post-doctoral work at the Johns Hopkins Univer-sity Applied Physics Laboratory until 1956.

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the infinitesimal He joined Caltech alumnus William Shockley at the Shockley Semiconductor Laboratory division of Beckman Instruments, but left with the «Traitorous Eight», when Sherman Fairchild agreed to back them and created the influential Fairchild Semiconductor corporation.

Moore co-founded Intel Corporation in July 1968, with Bob Noyce, serving as Executive Vice President until 1975 when he became President. In April 1979, Dr. Moore became Chairman of the Board and Chief Executive Officer, holding that position until April 1987, when he became Chairman of the Board. He was named Chairman Emeritus of Intel Corporation in 1997

« I remember the difficulty we had in the beginning replacing magnetic cores in memories and eventually we had both cost and performance advantages. But it wasn’t at all clear in the beginning. »

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Evolution by Steve Jobs

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Simple evolution

Steven Paul «Steve» Jobs February 24, 1955 – October 5, 2011 was an American businessman, designer and inventor. He is best known as the co-founder, chairman, and chief executive officer of Apple Inc. Through Apple, he was widely recognized as a charismatic pioneer of the personal computer revolution and for his influential career in the computer and consumer electronics fields. Jobs also co-founded and served as chief executive of Pixar Animation Studios; he became a member of the board of directors of The Walt Disney Company in 2006, when Disney acquired Pixar.

In the late 1970s, Apple co-founder Steve Wozniak engineered one of the first commercially successful lines of personal computers, the Apple II series. Jobs was among the first to see the commercial potential of Xerox PARC’s mouse-driven graphical user interface, which led to the creation of the Apple Lisa and, one year later, the Macintosh.

During this period he also led efforts that would begin the desktop publishing revolution, notably through the introduction of the LaserWriter and the associated PageMaker software.After losing a power struggle with the board of directors in 1985, Jobs left Apple and founded NeXT, a computer platform development company specializing in the higher-education and business markets. In 1986, he acquired the computer graphics division of Lucasfilm, which was spun off as Pixar. He was credited in Toy Story (1995) as an executive producer. He remained CEO and majority shareholder at 50.1 percent until its acquisition by The Walt Disney Company in 2006, making Jobs Disney’s largest individual shareholder at seven percent and a member of Disney’s Board of Directors.After difficulties developing a new Mac OS, Apple purchased NeXT in 1996 in order to use NeXTSTEP as the basis for what became Mac OSX.

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* « Innovation is a situation we choose because you have a burning passion for something. »

Apple’s future

Apple is not just crushing its rivals through superiority in design, Steve Jobs’s deep experience in hardware mass production (early Apple, NeXT) has been brought to bear in creating an unrivaled exclusive supply chain of advanced technology literally years ahead of anyone else on the planet. If it feels like new Apple products appear futuristic, it is because Apple really is sending back technology from the future.

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3Statistics

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Table of Contents Company Stock Performance

The following graph shows a five-year compa-rison of cumulative total shareholder return, calculated on a dividend reinvested basis, for the Company, the S&P 500 Composite Index, the S&P Computer Hardware Index, and the Dow Jones U.S. Technology Index. The Company has added the Dow Jones U.S. Technology Index to the graph to capture the stock performance of companies whose products and services more closely relate to those of the Company. The Dow Jones U.S. Technology Index incorporates software and computer services companies, as well as technology hardware and equipment companies. The graph assumes $100 was inves-ted in each of the Company’ s common stock, the S&P 500 Composite Index, the S&P Com-puter Hardware Index, and the Dow Jones U.S. Technology Index on September 30, 2005. Data points on the graph are annual. Note that histo-ric stock price performance is not necessarily indicative of future stock price performance.

Apple Inc S&P Hadware DW US Technology S&P 500

Apple IncS&P 500S&P Computer HadwareDow Jones US Technology

100100100100

2005 2006 2007 2008 2009 2010

144111107106

286129158131

34694157111

529103186124

212101132100 $

$$

$

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DesktopsPortablessubtotal CPUs

iPodMusiciPhoneiPadHardwareSoftware

Total Apple

1,1552,7923,947

7,535

20,3449,246

1,2422,6433,885

9,051

14,1024,188

1,2783,6164,894

6,620

17,07311,123

1,5803,5255,105

1,3321,505

13,3316,046

517696

28,571

1,6263,1984,866

1,4771,2438,8222,792

477662

20,343

AmericaEuropeJapanAsian PacificRetail

Total Operating

1,487922150620768

3,947

CPUUnits K

CPUUnits K

CPUUnits K

1,460978118455874

3,885

1,7161,176

175731

1,096

4,894

10,1267,0981,510

6,3323,505

28,251

Revenue$M

Q3 2011 Q4 2010 Q4 2011

Revenue$M

Revenue$M

7,1865,4581,4102,7323,566

20,343

9,6487,3971,111

6,5303,584

28,270

Units

Sequential Change Year/Year Change

Units

15%28%17%18%43%

24%

18%20%48%61%25%

26%

Revenue Revenue

--5%4%

-26%3%2%

---1%

34%36%21%

139%1%

39%

Units

Sequential Change Year/Year Change

Units

11%30%24%

-12%

-16%20%

3%37%26%

-27%

21%166%

Revenue Revenue

7%30%23%

-17%7%

-18%14%24%

5%

-1%

1%44%29%

-25%35%24%

146%34%10%

39%

1,6874,5856,272

1,1031,405

10,9806,868

640729

28,270