Apple and the
iPad®
New Mexico Highlands University
Mission
Apple is committed to bringing the best
personal computing experience to students,
creative professionals and consumers around
the world through its innovative hardware,
software and Internet offerings.
History
iPad Model
Release Date (United States)
iPad®
April 3, 2010
iPad 2®
March 11, 2011
iPad 3®
March 16, 2012
iPad 4®
November 2, 2012
iPad mini®
November 2, 2012
iPad Air®
November 1, 2013
iPad mini® (with Retina display)
November 12, 2013
Market Analysis
United States
Macro-environment




Gross Domestic Product 15.68 trillion
Growth Rate
2.8
Inflation Rate
1.51
Unemployment Rate
7.3%
IBIS Industry Report
Apple Inc. 13.0%
Amazon 35.3%
Dell Inc. 6.5%
Other 45.2%
Product
iPad Air
Wi-Fi
16 GB $ 499
32 GB
599
64 GB
699
128 GB
799
iPad 2
Wi-Fi
16 GB $ 399
iPad mini
(Retina)
Wi-Fi
16 GB $ 399
32 GB
499
64 GB
599
128 GB
699
iPad mini
Wi-Fi
16 GB $ 299
Wi-Fi + Cellular
Wi-Fi + 3G
Wi-Fi + Cellular Wi-Fi + Cellular
16 GB $ 629 16 GB $ 529 16 GB $ 529 16 GB $ 429
32 GB
729
32 GB
629
64 GB
829
64 GB
729
128 GB
929
128 GB
829
Product
Weight
Display
Chip
Cameras
Videos
iPad Air
1 pound
Retina display
9.7' LED
A7
FaceTime HD
iSight Camera
1080p HD
iPad 2
1.33 pounds
9.7' LED
A5
FaceTime
Back Camera
720p HD
iPad mini
(Retina)
0.73 pound
Retina display
7.9" LED
A7
FaceTime HD
iSight Camera
1080p HD
iPad mini
0.68 pound
7.9" LED
A5
FaceTime HD
iSight Camera
1080p HD
Marketing
 Apple relies on brand loyalty
 Media publicity is a form of advertising
 Celebrity appeal and product placement in movies
and television shows
Research & Development
 Apple’s current R&D is secretive
 Rumors of an iPad 6 in development
 2013 R&D budget was $4,475,000
 Apple’s innovation is embodied in its
Intellectual Property, including Patents,
Trademarks, and Copyrights
 Protects intellectual property aggressively
Stakeholders
Governments
Schools
Families
Businesses
Environmental &
Social Impact
30.9
18.849
1.545
9.27
all values in million metric tons
0.618
0.618
Regulatory Compliance
 Required to file reports with the Securities and
Exchange Commission (SEC)
 Bound by Sarbanes-Oxley Act of 2002 (SOX)
standards
 Compliant with trade agreements and embargoes
Corporate Structure
Bruce Sewell
General Counsel
Peter Oppenheimer
Chief Financial Officer
Jeff Williams
Operations
Jonathan Ive
Design
Philip Schiller
Worldwide Marketing
Graig Federighi
Software Engineering
Tim Cook
Eddy Cue
Software Service
Dan Riccio
Hardware Engineering
Board of Directors
 Tim Cook
 Arthur D.
Levinson
 Albert Gore Jr.
 Robert A. Iger
 Bill Campbell
 Andrea Jung
 Millard Drexler
 Ronald D. Sugar
Financial Statements
Net sales
Net income
Earnings per share:
Basic
Diluted
Cash dividends declared per share
Shares used in computing earnings per share:
Basic
Diluted
Total cash, cash equivalents and marketable
securities
Total assets
Long-term debt
Long-term obligations (3)
Total liabilities
Total shareholders' equity
2013
170,910
37,037
2012
156,508
41,733
2011
108,249
25,922
40.03
39.75
11.40
44.64
44.15
2.65
28.05
27.68
-
925,331
931,662
934,818
945,355
924,258
936,645
146,761
121,251
81,570
207,000
16,960
20,208
83,451
123,549
176,064
16,664
57,854
118,210
116,371
10,100
39,756
76,615
(in millions, except number of shares, which are reflected in thousands, and per share
data amounts)
Financial Performance
Current Ratio
Acid-test Ratio
Gross Profit Margin
Operating Profit Margin
Return on Assets (ROA)
Return on Average Equity (ROE)
Debt-Equity Ratio
Interest Coverage Ratio
Operating Cash Flow/Sales Ratio
Earnings per share (EPS)
Price / Earnings Ratio
(P/E Ratio)
Apple (2013)
1.68
1.23
37.62%
28.67%
19.34%
30.64%
67.54%
369.79
31.40%
$ 40.03
$ 39.75
14.15
Industry
1.20
0.67
6.39%
13.55%
112.00%
$ 10.07
24.33
SWOT Analysis
Strengths
Weaknesses
 Brand loyalty Innovative
technology
 Low manufacturing costs
 Environmental policies
 Strong financial position
 Market share
 Marketing strategy
 Technology compatibility
Opportunities
Threats
 Increase market share
 Innovation leader
 Market competition
Objectives & Strategies
 Focus on developing new models
 Investments into research and development
 Modifications to market strategy
 Ethical leadership