APPLE Inc.

A Byte Out Of Apple

OUTLINE
About What is Apple? Historical Perspective Organization Structure Product & Services Marketing Perspective HR Practices Current Scenario and Future Plans Recent News SWOT Analysis Conclusion

About the Company

Vision:

"To make a contribution to the world by making tools for the mind that advance humankind.
Mission: Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings.

What is Apple?
Apple Inc. formerly Apple Computer, Inc. is an American multinational corporation that designs and markets consumer electronics, computer software, and personal computers. Company headquarters on Infinite Loop in Cupertino, California The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad.

What is Apple?
Apple software includes Mac OS X operating system; the iTunes media browser; iLife suite of multimedia and creativity software; iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and filmindustry software products; Logic Studio, a suite of music production tools; the Safari web browser; iOS, a mobile operating system

Timeline of Apple products

Historical Perspective

Apple was founded by Steve Jobs and Steve Wozniak, two college dropouts, on April 1, 1976 1984 was the year of the Macintosh, arguably the first personal computer In 1985, Jobs left the company after losing a power struggle between him and John Sculley, the ex-president of PepsiCola Between 1985 and 1993, Apple had many successes and was positioned as a Personal Computer Industry leader

Historical Perspective

1995-1996 was the worst year ever for Apple, almost leading to their demise. No corporate executive could seem to turn it around Then, in the last month of 1996, Steve Jobs was hired back through the purchase of the NeXT project Steve Jobs quickly returned to the level of upper management and attempted to give hope to the struggling corporation

Historical Perspective (theres more?)

In 1997, the Apple Online Store is created which becomes one of the top e-commerce sites around In the new few years, Apple debuts the iMac, the iBook, the iPod, the Xserve and their own chain of brick & mortar retail stores in an attempt to redefine their business in the Digital Hub Industry

Board Of Directors:
Arthur D. Levinson, Ph.D. Chairman and Chief Executive Officer Genentech, Inc. William V. Campbell Chairman and former CEO Intuit, Inc. Millard S. Drexler Chairman and Chief Executive Officer J. Crew Tim Cook CEO Apple

Albert Gore, Jr. Former Vice President of the United States

Robert A. Iger President and Chief Executive Officer The Walt Disney Company

Andrea Jung Chairman and Chief Executive Officer Avon Products, Inc.

Ronald D. Sugar, Ph.D. Former Chairman and CEO Northrop Grumman Corporation

How is APPLE organized

Tim Cook CEO Eddy Cue Senior Vice President, Internet Software and Services Scott Forstall Senior Vice President, iOS Software Jonathan Ive Senior Vice President, Industrial Design Bob Mansfield Senior Vice President, Mac Hardware Engineering

How is APPLE organized

Peter Oppenheimer Senior Vice President, Chief Financial Officer Phil Schiller Senior Vice President, Worldwide Product Marketing Bruce Sewell Senior Vice President and General Counsel

Jeff Williams Senior Vice President, Operations

Products and Services

Hardware
iMac iBook Power Mac Power Book Xserve XRAID iPod iSight iphone

Software
iLife Suite AppleWorks Utilities itunes

Services - .Mac - iPod Engraving - iPhoto Albums

Products of Apple:

iPod

iMac(Personal Computer)

iPhone

iPad

Apple TV

Brands of Apple ipod:

Ipod Nano Ipod shuffle

Ipod classic

Ipod Touch

Marketing

1975

1977

1997

2006

Heritage
Apple has a tradition of innovating culture and ideas, involving people in history such as Muhammed Ali and Einstein. Their idea of Thinking Different has always made them individuals.

Einsteins photo on Apple Campus

Picasso

Yoko Ono & John Lennon

Unique Packaging

For the iPod

MULTPILE USAGE Apple makes computers, printers, programs that can be used even with Windows computers, the iPods, accessories.

MULTI-POSITIONING STRATEGY The commercials show that the products are for anyone and everyone.

Target Audiences

Business Reliable, innovative, secure, creative, cost-effective, easy to use, can share files with Windows, broad range Professional Design, music/audio, film/video, photo, science, for the artists Education/Younger Audience Student discounts, contests, fun with music, movies, they stand out Everyone Payment deals for practically anyone. Offer a resell program. With the iPods, they are personal.

How Apple meets the expectations of the 4 selling propositions:

USP - unique style/look all to themselves

OSP -employees enjoy the brand, corporate head-quarters looks like a college campus

 Awareness

of the
Measure

Brand-

In 1 to 5, rated a 4

of Successfulness-

In 1 to 5, rated a 3 because the issue of price, what people are used to and willing to spend on products.

How they transcend into other advertising media

Fun upbeat TV advertisements, printed ads in magazines, own website, stores hold demonstrations and free classes

Other Statistics:

In 0-100, Apple scores an 81 for customer satisfaction, which is the highest of all PC makers.(pcworld.com)

HR Practices
Values arent formalized Open lines of communication not hierarchical Pride for the brand Formerly decentralized - autonomy Roots in America

Homogenous across countries

HR Practices

REASON FOR COMPANYS SUCCESS:

Autonomy Skilled and Motivated Staff

Open lines of communication

No formal human resources/organizational policies

Current scenario
Fortune 500 rank: 35th (2011) , earlier 56th (2010). Apple Third Quarter Results: iPhone Sales Grow 142 Percent; iPad Sales Grow 183 Percent As of 2011s 3rd quarter, Apple is the second largest smart phone vendor in the world. It lags behind its competitors in terms of carrier support.

Recent Happenings
Apple Again Tops ACSI Customer Satisfaction Survey September 20, 2011 Apple has topped the American Customer Satisfaction Index (ACSI) in the personal computer category for an eighth consecutive year, achieving a score of 87 points.

Recent Happenings
New Features and Pricing for iPod touch and iPod nano October 4, 2011 Apple today announced great new features and more affordable pricing for both iPod touch and iPod nano. iPod touch, which includes iOS 5 and iCloud, will be available in new black and white models starting at just $199. The new iPod nano is available today starting at just $129 and features a redesigned user interface, 16 new digital clock faces, and improved built-in fitness features

Recent Happenings
Apple Announces iPhone 4S, iOS 5, and iCloud October 4, 2011 Apple today announced iPhone 4S, the most amazing iPhone yet, packed with new features like Apples dualcore A5 chip for blazing fast performance and stunning graphics; an 8MP camera with advanced optics; full 1080p HD resolution video recording; and Siri, an intelligent assistant that helps you get things done just by asking. iPhone 4S also ships with iOS 5 the worlds most advanced mobile operating system, with over 200 new features and iCloud

Recent Happenings
Apple Reports Highest September Quarter Revenue and Earnings Ever October 18, 2011 Apple today announced financial results for its fiscal 2011 fourth quarter ended September 24, 2011. The Company posted quarterly revenue of $28.27 billion and quarterly net profit of $6.62 billion, or $7.05 per diluted share. Gross margin was 40.3 percent compared to 36.9 percent in the year-ago quarter. International sales accounted for 63 percent of the quarters revenue.

Recent Happenings
iPhone 4S: Faster, More Capable, and You Can Talk to It October 26, 2011 Reviewing iPhone 4S at TechCrunch, columnist MG Siegler finds much to like, including its faster speed, improved camera, iOS 5 with Notification Center, and Siri, which he calls the true killer feature of the device. He adds: The iPhone 4 was a great product. The best smartphone ever made. Now it cedes that title to the iPhone 4S.

Recent Happenings
AssistiveTouch Helps the Disabled Use a Smartphone November 11, 2011 New York Times columnist David Pogue reports on AssistiveTouch, an amazingly thoughtful iOS 5 feature that makes it possible to complete Multi-Touch gestures using one finger or a stylus. Writes Pogue: I doubt that people with severe motor control challenges represent a financially significant number of the iPhones millions of customers. But somebody at Apple took them seriously enough to write a complete, elegant and thoughtful feature that takes down most of the barriers to using an app phone.

Recent Happenings
Five Stars for GarageBand for iOS November 11, 2011 In a CNET Editors review, Jason Parker gives the new GarageBand for iPad, iPhone, and iPod touch 5 out of 5 stars, citing the apps uniquely designed and authenticsounding instruments, smart touch interface, and tools that make song creation easy. He adds: Anyone with even a passing interest in creating music should download GarageBand for iOS. Frankly, we wish we could give it more than five stars for the virtually unlimited song possibilities, ease of use, and excellent touch-screen controls

Future plans
Expanding distribution in China On June 7, 2011, Steve Jobs gave a presentation to Cupertino City Council, detailing the architectural design of the new building and its environs. The new campus is planned to house up to 13,000 employees in one central four-storied circular building (with a caf for 3,000 sitting people integrated) surrounded by extensive landscape (with parking mainly underground and the rest centralized in a parking structure). LTE iPhone upgrade cycle and lower priced 3G iPhone in 2012 Larger tablet market and continued Apple market dominance longer-term Potential for Apple to enter the Smart TV market in 2012-13.

 Apple started recycling in 1994 and today they operate recycling programs in countries where more than 82% of all Macs and iPods are sold. By the end of this year, that figure will increase to 93%. Apple recycled 13 million pounds of e-waste in 2006, which is equal to 9.5% of the weight of all products Apple sold seven years earlier.

Weight Recycled as % of Past Sales

SWOT Analysis
Strengths

iTunes Music Store is a good source of revenue, especially with the iPod and the availability on Windows platform. Developing own software and hardware. Apples niche audience provides the company with some insulation from the direct price competition. Revamping desktop and notebook lines. Web technology can be used to improve product awareness and sales. Low debtmore maneuverable. Good brand loyalty.

SWOT Analysis
Weaknesses Weak relationship with Intel and Microsoft. Weak presence in business arena. Dependency on new product launches. Weak presence in markets other than education and publishing. Slow turn around on high demand products.

SWOT Analysis
Opportunities Increase in worms and viruses on PCs. Large population (Gen X&Y) which are extremely individualistic and name brand conscious. Weak ties with Microsoft products. Downloadable music and MP3 players are highly marketable. Increase sales of computers online by 25 percent. Increase sales of laptops by 20 percent.

SWOT Analysis
Threats Companies not seeing Apple as compatible with their software. Dell and HP are major competitors. Increasing competition with music downloads. Dell does not invent but provides computers at a more cost effective rate for customers. Recessionprice of Apple computers are higher. Intels future Pentium release.

Conclusion: