A Byte Out Of Apple

APPLE Inc.

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 film-industry 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 Pepsi-Cola

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 (there’s 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 OfficerGenentech, Inc.

William V. Campbell

Chairman and former CEOIntuit, Inc.

Millard S. DrexlerChairman and Chief

Executive OfficerJ. Crew

Tim CookCEO

Apple

Albert Gore, Jr.Former Vice

President of the United States

Robert A. IgerPresident and Chief

Executive OfficerThe Walt Disney

Company

Andrea JungChairman and Chief

Executive OfficerAvon Products, Inc.

Ronald D. Sugar, Ph.D.

Former Chairman and CEO

Northrop Grumman Corporation

How is APPLE organizedTim Cook

CEO

Eddy CueSenior Vice President, Internet Software and Services

Scott ForstallSenior Vice President, iOS Software

Jonathan IveSenior Vice President, Industrial Design

Bob MansfieldSenior Vice President, Mac Hardware Engineering

How is APPLE organized

Peter OppenheimerSenior Vice President, Chief Financial Officer

Phil SchillerSenior Vice President, Worldwide Product Marketing

Bruce SewellSenior Vice President and General Counsel

Jeff WilliamsSenior 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:

iMac(Personal Computer)

iPod

iPhone

Apple TV

iPad

Brands of Apple ipod:

Ipod shuffle

Ipod Nano

Ipod classic Ipod Touch

Marketing

Logo Design The Apple logo is the 6th most recognized logo in the world. The original logo with Isaac Newton under an apple treeThe rainbow "bitten" logo, used from late 1976 to 1998The monochrome logo, used since 1997

The Apple logo is the 6th most recognized logo in the world. First was the rainbow apple, now a glossy white apple.

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.

Yoko Ono & John LennonEinstein’s photo on Apple Campus Picasso

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 Brand-◦In 1 to 5, rated a 4

Measure 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 aren’t formalized

• Open lines of communication – not hierarchical

• Pride for the brand

• Formerly decentralized - autonomy

• Roots in America

• Homogenous across countries

HR Practices

REASON FOR COMPANY’S 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 2011’s 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 SurveySeptember 20, 2011Apple 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 nanoOctober 4, 2011Apple 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 iCloudOctober 4, 2011Apple today announced iPhone 4S, the most amazing iPhone yet, packed with new features like Apple’s dual-core 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 world’s most advanced mobile operating system, with over 200 new features — and iCloud

Recent Happenings

• Apple Reports Highest September Quarter Revenue and Earnings EverOctober 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 quarter’s revenue.

Recent Happenings

• iPhone 4S: Faster, More Capable, and You Can Talk to ItOctober 26, 2011Reviewing 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 iPhone’s 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 app’s “uniquely designed and authentic-sounding 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 café 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

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. • Apple’s 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 debt—more 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

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.• Recession—price of Apple computers are

higher.• Intel’s future Pentium release.

Conclusion: