Apple

BY:
Willis Howard

Company Overview
Apple is a American company
that designs, manufactures,
and markets mobile
communication and media
devices, personal computers,
and high tech portable
devices.

Apple Inc. was founded by

Steve Jobs, Steven Wozniak
and Ronald Wayne on April 1,
1976.

The company is
headquartered in Cupertino,
California.

Company Overview contd

The companys products and
services include IPhone, iPad,
Mac, IPod, Apple TV, a portfolio
of consumer and professional
software applications, the iOS
and OS X operating system,
iCloud, and a variety of
accessory, service and support
offerings.

The company sells and delivers

digital content and applications
worldwide through the iTunes
store, app store, iBooks store,
and Mac App store.

SWOT Analysis
SWOT defined
Role in analyzing a company
The future of Apple

S
Strengths
-Strong Marketing and
advertising capabilities
-Strong and extensive
distribution channels in the US
-Vertical integration
-Brand reputation and awareness

-Customer loyalty
-Strong financial performance
-Leading innovator in mobile
device technology
-Retail sores

W
Weaknesses
-High Price
-Lack of product breadth and
offerings at different price points
-Weak direct distribution
channels in China and India
-Decreasing market share

-Patent infringements
-Further changes in
management
-Dependence on iPhone and iPad
sales
-Incompatibility with other OS
-Defects on new products
-Long-term gross margin decline

Opportunities

Threats

-Acquisition of valuable
companies
-Obtaining patents through
acquisitions
-Damages from patent
infringements
-Mobile payments
-Strong growth of mobile
advertising market

-Competition for other

computers companies
-Lawsuit over patent
infringement
-Rapid technological change
-2013 taxes increase
- Rising pay levels for Foxconn
workers

-Increasing demand for cloud

based services
-Wearable gadgets
-High demand of iPad mini and
IPhone
-iTV launch
-Emergence of the new provider
of application processors
-Growth of tablet and
smartphones markets

-Breached IP rights
-Price pressure from Samsung
over key components
-Strong dollar
-Android OS growth
-Competitors moves in online
music market

Strategic Marketing Plan

According to Tim Cook, the current
CEO, Steve Jobs original structured
marketing strategy for Apple had
four (4) sections:

Offer a limited number of

products.

Focus on high end consumers.

Prioritize profits over market
share.

Create a halo effect that makes

people starve for new Apple
products.

Apple Inc.
Major Direct Stakeholders
Holder
LEVINSON ARTHUR

Shares Reported
1,138,886 AUG 8, 2014

COOK TIMOTHY

950,767 SEP 22, 2014

FEDERIGHI CRAIG

237,048 NOV 24, 2014

GORE ALBERT JR

62,523 FEB 1, 2014

MANSFIELD ROBERT L

49,543 JUN 21, 2013

Top Institutional Holders

Holder

Shares Reported

Vanguard Group, Inc. (The)

327,063,967 SEP 30, 2014

State Street Corporation

242,255,909 SEP 30, 2014

FMR, LLC

173,987,606 SEP 30, 2014

BlackRock Institutional Trust

Company, N.A.

158,746,999 SEP 30, 2014

Bank of New York Mellon Corporation

89,007,388 SEP 30, 2014

Northern Trust Corporation

83,437,298 SEP 30, 2014

Invesco Ltd.

70,230,794 SEP 30, 2014

BlackRock Fund Advisors

67,124,320 SEP 30, 2014

Wellington Management Company,

LLP

60,062,760 SEP 30, 2014

JP Morgan Chase & Company

58,519,182 SEP 30, 2014

** % of Shares Held by Institutional & Mutual Fund Owners: 62% **

Top Mutual Fund Holders

Holder

Shares Reported

Vanguard Total Stock Market Index

Fund

98,049,200 SEP 30, 2014

Vanguard 500 Index Fund

62,164,243 SEP 30, 2014

SPDR S&P 500 ETF Trust

61,425,804 SEP 30, 2014

Vanguard Institutional Index FundInstitutional Index Fund

60,664,513 SEP 30, 2014

Powershares Exhg Traded Fd TrPowershares QQQ Tr, Series 1

56,575,140 SEP 30, 2014

Fidelity Contrafund Inc

31,448,349 SEP 30, 2014

Vanguard Growth Index Fund

29,450,196 SEP 30, 2014

College Retirement Equities FundStock Account

26,491,114 JUN 30, 2014

Spartan 500 Index Fund

26,216,310 SEP 30, 2014

Fidelity Growth Company Fund

21,537,648 SEP 30, 2014
** % of Shares Held by Institutional & Mutual Fund Owners: 62% **

Apples Contribution to
the Tech World
Macintosh
OS X (Operations System X)
iPod
iPhone
App Store
pad
Apple TV