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Group 2

Apple Inc. in 2012 was presented by Group 2. The document summarizes Apple's history, competitive advantages, products and industry position in 2012. It discusses how Apple was founded in 1976 and became the industry leader by 1980. It then lost momentum in the 1990s but was saved by Steve Jobs returning as CEO. The document also summarizes Apple's expansion beyond computers with the iPod in 2001 and iPhone in 2007, and how the App Store and iPad further grew Apple's digital ecosystem. It concludes by advising the new CEO Tim Cook on maintaining Apple's innovation and market position.

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52 views22 pages

Group 2

Apple Inc. in 2012 was presented by Group 2. The document summarizes Apple's history, competitive advantages, products and industry position in 2012. It discusses how Apple was founded in 1976 and became the industry leader by 1980. It then lost momentum in the 1990s but was saved by Steve Jobs returning as CEO. The document also summarizes Apple's expansion beyond computers with the iPod in 2001 and iPhone in 2007, and how the App Store and iPad further grew Apple's digital ecosystem. It concludes by advising the new CEO Tim Cook on maintaining Apple's innovation and market position.

Uploaded by

Amit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 22

Apple Inc.

in 2012
Presented By: Group 2

Debanjan Mukherjee 19A1HP032


Abheek Nandi 19A1HP002
Animesh Srivastava 19A1HP034
Roopam Verma 19A1HP043
Ankit Verma 19A1HP068
Shubham Deep 19A3HP607
Vipul Prakash Singh 19A1HP063
1.
History and Competitive
Advantages
History
• Steve jobs and Steve Wozniak, founded Apple computer on April 1976. They built a computer circuit
board in a garage that they named Apple 1. After its successful run Steve jobs wanted to bring an easy-to-
use computer in the market which led to release of Apple 2. In 1980, Apple soon became the industry
leader by selling more than 100,000 Apple 2’s.

• Apple offered its customers a complete desktop solution including Hardware and superior software’s. By
1990, Apple’s worldwide market share reached at around 8% and they became the most profitable PC
company in the world.

• In 1992, 45% of Apple’s sales came from outside the United States. Despite all these efforts Apple lost
momentum and in 1997 few insiders believed that Apple was within 90 Days of bankruptcy. To save the
company, Steve Jobs became the Interim CEO in September 1997.
Competitive Advantage
● Apple’s competitive position changed in the year 1981 when IBM entered the PC market. The
IBM PC which used Microsoft DOS operating system gained more market share and emerged as
the new standard for the industry. Apple responded by introducing the Macintosh in 1984. The
Mac marked a breakthrough in ease of use, design and technical elegance.

● In the mobile phone category, Apple faced competition from Samsung, HTC, Motorola etc. and
its major competition came from Android by Google.
2.
Personal Computer Industry
Personal Computer Industry

● Consolidated Structure

● Effect of US Recession

● China becoming largest in PC Market


3.
The Macintosh and Apple
“Digital Hub”
The Macintosh and Apple “Digital Hub”
● Apple’s 25th anniversary, Jobs presented his vision for the Macintosh in what he called the “digital hub.”
● The Mac could be the preferred “hub” to control, integrate, and add value to these devices. Jobs viewed Apple’s control of
both hardware and software, one of the few remaining in the PC industry, as a unique strength.
● To accomplish his vision, Jobs made four important changes in the Macintosh: he delivered a new OS; he switched to a new chip
architecture; he invested in a new suite of proprietary applications; and he bet on the Apple Store.
4.
Moving Beyond the
Macintosh (iTunes and its
competition)
Moving beyond the Macintosh
● Apple’s shift towards a digital hub strategy was initiated by the
debut of the iPod in 2001, followed by the iPhone in 2007, then
the iPad in 2010.
● iPod became “an icon of the Digital Age” due to its sleek design,
simple user interface, and large storage.
● By 2010, Apple reportedly held more than 70% of the MP3
market in the United States.
● Recognizing the importance of flash memory, Apple agreed to
pay to several memory producers to secure a substantial portion
of their memory output.
● Apple made more efforts in developing and marketing the iPod
than the Macintosh.
iTunes

● Two features which dramatically


differentiated Apple’s iPods were:
 iTunes Desktop software
 iTunes Music store
● Before the advent of iTunes, Apple sold an
average of 78,000 iPods per quarter. After
iTunes’ launch, iPod sales shot up to 304,000
units, and exploded thereafter.
iTunes- Competition
● Online music stores such as Amazon.com, Napster, and Walmart.com
offered individual song downloads at competitive or discounted
prices to iTunes.
● In addition to music streaming services from social networks, Apple
and other MP3 players had to consider other challenges as well.
● Steve Jobs had two responses to these threats:
 In 2009, he bought Lala.com, a music streaming service.
 In June of 2007, he introduced the iPhone.
5.
Smartphone Industry
Smartphone Industry

● Touchscreen

● Customized Operating System

● Updated IPhone every 12 to 15 months.


5.
App Store and Play Store
App Store – The Initial Success
● The amount of revenue generated by Mobile apps made apple
turn it into a nice side business as well.

● Apple made it easier to reach consumers.


App Store vs Play Store
● As more manufacturers entered the market. Innovation on the android platform
exploded.

● Amongst various Android manufacturers, Samsung was Apple’s most direct


competitor.

● The number of Android applications was rapidly approaching iPhone apps –


Software developers found it more challenging to write applications for Android.
7.
The Ipad

18
The iPad

● A combination of hardware and software needs which was easier to use than a
PC.
● Unexpectedly increased the sale of tablets by selling 55 million units in by
Feb 2012.
● The entry retail price of an iPad was lower than wholesale price of an iPhone.
● Reason for earning better gross margin than its competitors was Using its own
CPU, giving the channel a lower Margin and leveraging its scale of purchase.
Competitors:
● Amazon
● Samsung tablet
● Microsoft’s Windows 8 tablets.

19
iPad Way Ahead
● As per Exhibit 1b and 1c, between March 2011 and March 2012 iPad after
selling 47,601 unit and collecting a sales revenue of 28,657 million dollars
was the second largest contributor after iPhone and its related products.

● After being its reasonable price, it was generating more gross margin than
its competitors.

● Apps specially designed for iPads were attracting its client.

● More innovation like Integrating it with phone and operators will make
iPad a device which can maintains and enhances company’s reputation.

20
Our Advice to New CEO Tim cook
● Mr. cook’s performance in 1st one and half year was were above the expectation.
● We appreciate Mr. cooks policy of settlement than a longer Legal battle.
● By innovation in Design like Mr. Jobs used to do Mr. cook can maintain company’s
exclusive separate but high revenue position.
● Mr. cook should try to increase the market share of iPhone as it was generating 50% of
cellphone industry’s total profit by just having an 4% market share.
● iPad being the second highest contributor in Apple’s Revenue should be improvised more
as it is comparatively a less costly product of Apple and hence can attract more
customers.
● Mr. Jobs wanted to make Apple “Digital Hub” iCloud was the new improvised element in
Digital hub which will change its definition. Hence more R&D should be done on iCloud
by Apple can give its consumers more space.
● At the end like its always first mover image Apple should keep innovating so that it can
justify its Slogan of “Think Differently”.
21
THANK YOU

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