WELCOME TO THE APPLE STORY COMPANY PROFILE Established: on April 1, 1976 Founders: Steve Jobs, Steve Wozniak, and Ronald Wayne Industry: Computer Hardware computer software consumer electronics digital distribution Key People: Previous CEO : Steve Jobs CEO: Tim Cook Total Revenue: US $ 108.249 billion(FY 2011) Profit: US $ 33.790 billion(FY 2010) Employees:60,400 No. of Locations: 393 retail stores (as of August 2012) MAJOR HARDWARE PRODUCTS Apple TV iPad (Original, 2, NewPad, MiniPad) iPhone (3G, 3GS, 4, 5) iPod (Classic, Nano, Shuffle, Touch) Mac (iMac, MacBook, MacBook Air, MacBook Pro, Mini, Pro) MAJOR SOFTWARE PRODUCTS Mac OS X iOS iTunes iWork QuickTime Safari iLife STORES AND SERVICES Apple Store (online) App Store Certifications Game Center iAd iBookstore iTunes Store iWork.com iCloud ACQUISITIONS Emagic FingerWorks Intrinsity NeXT Nothing Real P.A. Semi Silicon Color Siri Spruce Technologies THE EVOLUTION OF APPLE INC. 1975 1977 1997 2006 THE BEGINNING. Apple’s history starts with the story of two young and exceptional people who began building a computer in their garage and launched the microcomputer revolution. It’s the story of two ‘Steves’:- Stephen G Wozniak and Steven P Jobs THE BEGINNING Created in 1976 in Jobs' parents garage Jobs and his friends design their first computer kit : the Apple I APPLE I On1976 April 1 – released the Apple I (for $666) and started Apple Computers. Had 8 KB of RAM It was box wood-made with a basic motherboard inside. Later a cassette interface to enable external data storage was added. APPLE II In 1977, Apple II was released for $1298 Had color graphics – a first for a personal computer Originally used an audio cassette drive for storage but later it was replaced by a floppy disk drive Supported the BASIC program Had 64 KB of memory And with a software called VisiCalc which was Apple's "killer application" : a spreadsheet program ! 12 Apple III Released May 1980 Had 128K of RAM Designed for businesses – expensive!! > $4300!!! Had lots of problems – didn’t do well.. Apple Lisa OTHER EARLY ENDEAVORS Released in 1983 Became the first personal computer sold to the public with a GUI. Aimed at large businesses Commercial failure due to high price tag (almost $10,000) and limited software it could run THE LISA THE INTRO OF THE MACINTOSH Apple introduced the Macintosh in 1984 Sales not initially as strong as desired Changed with the intro of LaserWriter – first reasonably priced laser printer PageMaker – early desktop publishing package (These capitalized on its advanced graphics capabilities) 128 KB memory Motorola’s 68000 CPU Sold for $2495 15 EARLY YEARS – COMPUTER COMPARISON Product Cost Storage RAM Year Apple I $666 --- 8 KB 1976 Apple II $1298 Floppy 64 KB 1977 Apple III $4300 Floppy 128 KB 1980 Apple Lisa $10,000 Floppy 1 MB 1983 Macintosh $2495 128 KB 1984 (for business) (for business) Floppy EXTRA SHOT… 1985: due to some power struggle between Jobs and then CEO John Sculley, Jobs resigns from Apple Computers and started a new company NeXT Inc. MACINTOSH PORTABLE Apple’s first attempt at a “portable” computer Released in 1989 8 MB RAM 40 MB Hard drive* Clunky, slow $6500 Failed in market. 18 MORE PORTABLE EFFORTS.. PowerBook 100 Released in 1991 40 MB hard drive 8 MB RAM $2500 Helped Apple to gain some revenue established layout of the laptop computers 19 1991-’95 1991:System 7- upgraded OS which added colour to interfaces and new networking capabilities The Performa lines of Macintosh LC- a disaster Apple tastes failures of many other products including digital cameras, portable CD audio players, speakers, video consoles, and TV appliances Microsoft gains market with cheap commodity personal computers 1994: Apple allied with IBM and Motorola in the AIM alliance. RETURN OF STEVE JOBS REBIRTH OF APPLE 1996: acquisition of NEXT Inc. Jobs back to Apple as an advisor. 1997: Steve Jobs –the CEO 1997: Steve Jobs announced that Apple would join Microsoft to release new versions of Microsoft Office for the Macintosh 1997:Apple introduced the Apple Store+ new buildto-order manufacturing strategy 1998: introduced the new iMac with Mac OS X. Then came the iBook, Apple's new laptop. DESKTOP EVOLUTION » The iMac Released in 1998 2 USB ports 4 GB hard drive 256 MB RAM All in 0ne computer Released in 2007 RAM: 4 GB 320 GB hard drive LETS HAVE ANOTHER COMPARISON Product Macintosh Mac Plus Cost Storage $2495 Floppy $2600 Floppy RAM 128 KB 4 MB Year 1984 1986 iMac $1799 320 GB 4GB 2007 Mac Portable $6500 40MB hd 8 MB 1989 Powerbook 100 $2500 40MB hd 8 MB (laptop) 1991 Macbook Air 2008 (laptop) (laptop) $1799 120GB hd 2GB 25 EVOLUTION OF OS’S… Mac System 1,2,3,4 (1984-1987) Distinguishable from other OSs from that era in that they used entirely graphical user interfaces Could only run one application at a time Mac System 5, 6, 7 (1987 – mid 1990’s) Could run multiple applications Mac OS 8 (8.0 – 8.6) (1997) – better file management Mac OS 9 (9.0 – 9.2.2) (1999) – improved support for wireless Mac OS X (1999 – today) – UNIX based OS 10.0 – Cheetah (‘01) 10.1 – Puma (‘02) 10.2 – Jaguar (’03) 10.3 – Panther (’04) 10.4 – Tiger (’05) 10.5 – Leopard (’08) 10.6 – Snow Leopard (’09) 10.7 – Lion(‘11) iPod- THE BLOCKBUSTER On October 23, 2001-the iPod CPU: Samsung ARM and Apple A4 5 GB hard drive that put "1,000 songs in pocket” New technology: spintronics Initially , iPod software only worked with Mac OS; from 2nd generation onwards works with Microsoft Windows also Apple's iTunes Store was introduced, offering online music downloads for $0.99 a song and integration with the iPod. EXTRA SHOT.. Albert Fert and Peter Gruenberg won the 2007 Nobel Prize for physics for work that has allowed hard disks to be made much smaller for everything from laptops to iPods The prize was awarded for work on magnetoelectronics, also known as spintronics. It uses the spin of the electron to store and transport information instead of the electrical charge, meaning much more information could be kept in a smaller space than before. SHREDDING DOWN ‘COMPUTER’ on January 9, 2007, Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc., because computers were no longer the main focus of the company, which had shifted its emphasis to consumer electronic devices Announced iPhone and Apple TV iPhone a convergence of an Internetenabled smartphone and iPod. iOS, (formerly iPhone OS)scaled down version of OS X 3.5-inch (89 mm) touch screen display, 4, 8, or 16 GB of memory, Bluetooth, and Wi-Fi iPad tablet PC Released on April 3, 2010 Processor: A4 256 MB RAM Bluetooth n Wi-Fi sold more than 300,000 units on that day and reaching 500,000 by the end of the first week. ICLOUD June of 2011, Apple unveiled its new online storage and syncing service for music, photos, files and software -iCloud OS X LION PRESENT HITS IPHONE 4 IPAD 2 AND LATEST… iPhone 5 (this October) iOS5 (Last Year) NewPad3 (Last Year) MiniPad iPhone-low cost version(on lab) WORK CULTURE Work Hard, Play Hard Run Your Own Show Nurturing Diversity Culture of Secrecy COMPETITORS Microsoft Linux Dell HP Lenovo RIM Nokia HTC Samsung Google sony . WHERE APPLE STANDS NOW? THE WORLD’S MOST INNOVATIVE COMPANIES APPLE TWITTER FACEBOOK NISSAN GROUPON GOOGLE DRAWING INFORMATION INDUSTRY NETFLIX ZYNGA EPOCRATES WORLD’S MOST REPUTED IT COMPANIES Apple Google Microsoft THE CONSUMER ELECTRONICS INDUSTRY OUTLOOK Samsung Hewlett-Packard (HP) Sony LG Toshiba Nokia Panasonic Apple Microsoft Dell LETS HAVE SOME MARKET ANALYSIS MARKET SHARE MARKET PRICE HOW? Because Apple thinks Different from others THINK DIFFERENT THINK DIFFERENT CONCLUSION For 35 years Apple has been a trend-setter company able to foresee the future of domestic computer and consumer electronics. it will probably continue during the next decades. because their strength is the innovation . And they know, how to ‘think different’. Apple, go on innovating….. SWOT ANALYSIS SWOT analysis (alternately SWOT Matrix) is a strategic planning method used to evaluate the Strengths, Weaknesses/Limitations, Opportunities, and Threats involved in a project or in a business venture. Strengths: characteristics of the business, or project team that give it an advantage over others Weaknesses (or Limitations): are characteristics that place the team at a disadvantage relative to others Opportunities: external chances to improve performance (e.g. make greater profits) in the environment Threats: external elements in the environment that could cause trouble for the business or project SWOT ANALYSIS SWOT Analysis Strengths •Brand name perception •Innovation •Product Diversification with Attractive designs •Market share and global expansion •Increase of retail stores •Low debt —more maneuverable Weaknesses •High pricing •Non-Compatibility •Quality Product control •Short product life-cycle Opportunities Threats •Participating in joint venture •Enlarging market share in the industry •Ease of use •High level of competition •High product substitution •The impact of lasting economic recession Strengths • Brand name perception : •A strong brand is an essential strength of Apple Inc . Apple brand is always being imprinted in people's minds as one of the most established and healthy IT brands worldwide. It has a very loyal set of enthusiastic customers that advocate the brand. • Such a powerful loyalty means that Apple not only attracts new customers, it retains them - they may come back for more products and services from Apple, and the company also has the opportunity to extend new products to them, for example the iPod, from Classic to Nano5, to Shuffle, and to Touch . •It costs far less to keep an existing customer than to lure in a new one. Strengths •Innovation: Apple has a strong Research &Development Department, coming up with stylish designs and continuous new products like the iPod series.Through its strong heritage of design excellence coupled with beautiful packaging and backed by brilliant product promotions and marketing, Apple has built very good and easy-to-use user interfaces. Apple Inc’s innovation keeps it a front-runner in electronics. Weaknesses •High pricing: Not reducing costs in the same way as their competitors' means Apple Inc. is outlaying more of their profits. Over pricing, setting too high prices for Apple Inc products/services makes them uncompetitive, which is a major weakness. •Non-Compatibility : The software of Apple has a NonCompatibility with Non-Apple Products, so the sales of Apple software is limited by the sales of hardware.The non-compatibility of Apple Computers with other operational system makes Apple Computers more difficult to operate, resulting in the loss of some potential customers. Weaknesses •Quality Product control: Products with early iPods had faulty batteries, whereby the company offered customers free battery cases . It was also reported that the Apple iPod Nano might have a faulty screen. These problems in quality may directly lead customer to lose confidence with Apple products. •Short product life-cycle: The product life cycle of Apple products are very short for that reasons revenues are more depend on launch of new products and services. And Apple receives no profit from resale of preceding goods. Opportunities •Participate in joint venture: The ties of apple with other companies are weak, Apple can form some strategic alliances and joint ventures to get an opportunity to maximise its profit and gain new business. •Enlarging market share in the industry: Compared to its rivalries such as Dell, Apple has a smaller coverage in the market share. It’s a good opportunity for Apple to expand retail stores for customer convenience.Also, the online sales of electronic products are increasing with rapid speed. •Ease of use: For certain amount of consumers, the complexity of using an Apple products has been a major obstacle to buy it. If downloads are available via a USB cable it will bring Apple much more business. Threats High level of competition: The biggest threat to IT companies such as Apple is the very high level of competition in the technology markets. Apple facing strong competition from Dell, HP, Sony and Toshiba in laptop segment. Apples market share is far behind from major competitor Microsoft. High product substitution: There is also a high product substitution effect in the innovative and fast moving IT consumables market. So iPod and MP3 rule today, but only yesterday it was CD, DAT, and Vinyl. Tomorrow's technology might be completely different. Wireless technologies could replace the need for a physical music player. Threats The long lasting recession may impact the sales of Apple due to higher prices of the products and services. Since Apple offers no lowerend alternatives, consumers will switch to other manufactures in the face of falling incomes. The impact of lasting economic recession : Recommendations •Lowering the cost of products and maintaining good quality standards •Forming joint ventures •Knowledge Management •More number of retail stores for easy access •Continuous innovation to expand THANK YOU FOR YOUR SUPPORT!