APPLE INCORPORATION

The Company Profile

 History
1976-1980: The Early Years
Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne to sell
the Apple I personal computer kit. The kit were built by Wozniak and first shown to the public at
the Homebrew Computer Club. The Apple I was sold as a motherboard (with CPU, RAM and
basic textual video chips) less than what is today considered a complete personal computer. The
Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,723 in 2012 dollars,
adjusted for inflation)

The Apple I, Apple's first product, was sold

Apple
1977
of
for

the
$8--.

was

as an assembled circuit board and lacked

incorporated January 3rd,

without

basic features such as a keyboard, monitor,

Wayne, who sold his share

company

and case. The owner of this unit added a

back to Jobs and Wozniak

keyboard and a wooden case

millionaire Mike Markkula

Multi-

provided essential business expertise and funding of $250,000 during the incorporation of Apple
The Apple II was introduces on April 16 th , 1977 at the first West Coast Computer Faire. It differed
from its major rivals, the TRS-80 and Commodore PET, because it came with character cell
based color graphics and an open architecture. While early models used ordinary cassette tapes
as storage devices, they were superseded by the introduction of a 5 inch floppy disk drive and
interface, the Disk II
The Apple II was chosen to be the desktop plsttform for the first killer app of the business worldthe VisiCalc spreadsheet prodram. VisiCalc created a business market for the Apple II, and gave
home users an additional reason to buy an Apple II Compatibility with the office. According to

Brian Bagnall, Apple exaggerated its sales figures and was a distant third place to Commodore
and Tandy until VisiCalc came along.
By the end of the 1970s, Apple had a staff of computer designers and a production line. The
company introduced the ill-fated Apple lllin May 1980 in an attempt to compete with IBM and
Microsoft in the business and corporate computing market.
Jobs and several Apple employees including Jef Raskin visited Xerox PARC in December 1979 to
see the Xerox Alto. Xerox granted Apple engineers three days of access to the PARC facilities in
return for the option to buy 100,000 shares (800,000 split-adjusted shares) of Apple at the preIPO price of $10 a share. Jobs was immediately conviced that all future computers would use a
graphical user interface (GUI), and development of a (GUI began for the Apple Lisa. In 1980,
Apple went public, generating more capital than any IPO since Ford Motor Company in 1956 and
instantly creating more millionaires (about 300) than any company industry.
1981-1985: Lisa and Macintosh
Steve Jobs began working on the Apple Lisa in 1978 but in 1982 he was pushed from the Lisa
team due to infighting, and took over Jef Raskin's low-cost-computer project, the Macintosh. A turf
war broke out between Lisa's "corporate shirts" and Jobs' "pirates" over which product would ship
first and save Apple. Lisa won the race in 1983 and became the first personal computer sold to
the public with a GUI, but was a commercial failure due to its high price tag and limited software
titles.

Apple's "1984"

television

ad,

set

in

adystopian future modeled after the George

Orwell novel Nineteen Eighty-Four, set the
tone for the introduction of the Macintosh

In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5
million television commercial "1984". It was directed by Ridley Scott, aired during the third quarter
of Super Bowl XVIII on January 22, 1984 and is now considered a watershed event for Apple's
success and

The

"masterpiece".

Macintosh

initially

follow-up sales were

price
The

and

limited

sold

well,

but

not strong due to its high

The first Macintosh, released in 1984

machine's

range of software titles.

fortunes changed with the

introduction of the LaserWriter, the first PostScript laser printer to be offered at a reasonable
price, and PageMaker, an early desktop publishing package. The Mac was particularly powerful in
this market due to its advanced graphics capabilities, which had necessarily been built in to
create the intuitive Macintosh GUI. It has been suggested that the combination of these three
products was responsible for the creation of the desktop publishing market.
In 1985 a power struggle developed between Jobs and CEO John Sculley who ahd been hired
two years earlier. The Apple board of directors instructed Sculley to contain Jobs and limit his
ability to launch expensive forays into untested products. Rather than submit to Sculleys
direction, jobs attempted to oust him from his leadership role at Apple. Sculley found out that jobs
had been attempting to organize aputsch and called a board meeting at which Apples board of
directors sided with Sculley and removed Jobs from his managerial duties. Jobs resigned from
Apple and founded NeXT Inc. the same year.
1986-1993: Rise and Fall
Having learned several painful lessons after introducing the bulky Macintosh Portable in 1989, Apple
introduced the PowerBook in 1991. The Macintosh Portable was designed to be just as powerful as a
desktop Macintosh, but weighed 7.5 kilograms (17 lb) with a 12-hour battery life. The same year,
Apple introduced System 7, a major upgrade to the operating system, which added color to the

interface and introduced new networking capabilities. It remained the architectural basis for Mac
OS until 2001.

The success of the PowerBook and other products brought increasing revenue. For some time, it
appeared that Apple could do no wrong, introducing fresh new products and generating
increasing profits in the process. The magazine MacAddict named the period between 1989 and
1991 as the "first golden age" of the Macintosh.
Following the success of the Macintosh LC, Apple introduced the Centris line, a low-end
Quadra offering, and the ill-fated Performa line that was sold in several confusing configurations
and software bundles to avoid competing with the various consumer outlets such as Sears, Price
Club, and Wal-Mart, who were the primary dealers for these models. The result was disastrous for
Apple as consumers did not understand the difference between models.

The Macintosh Portable was Apple's first

"portable" Macintosh computer, released in
1989.
During this time Apple experimented with a number of other failed consumer targeted products
including digital
appliances.

cameras, portable

Enormous

resources

CD
were

audio
also

players, speakers, video

invested

in

the

consoles

and TV

problem-plagued Newton

division based on John Sculley's unrealistic market forecasts. Ultimately, all this proved too-littletoo-late, as Apple's market share and stock prices continued to slide.
Apple saw the Apple II series as too expensive to produce, while taking away sales from the low
end Macintosh. In 1990, Apple released the Macintosh LC with a single expansion slot for

the Apple IIe Card to migrate Apple II users to the Macintosh platform. Apple stopped selling
the Apple IIe in 1993.
Microsoft continued to gain market share with Windows focusing on delivering software to cheap
commodity personal computers while Apple was delivering a richly engineered, but expensive,
experience.[53] Apple relied on high profit margins and never developed a clear response. Instead
they sued Microsoft for using a graphical user interface similar to the Apple Lisa in Apple
Computer, Inc. v. Microsoft Corporation. The lawsuit dragged on for years before it was finally
dismissed. At the same time, a series of major product flops and missed deadlines sullied Apple's
reputation, and Sculley was replaced by Michael Spindler.
1994-1997:Attempts Reinvention
By the early 1990s, Apple was developing alternative platforms to the Macintosh, such as
the A/UX. Apple had also begun to experiment in providing a Mac-only online portal which they
called eWorld, developed in collaboration with America Online and designed as a Mac-friendly
alternative to other online services such as CompuServe. The Macintosh platform was itself
becoming outdated because it was not built for multitasking, and several important software
routines were programmed directly into the hardware. In addition, Apple was facing competition
from OS/2 and UNIX vendors like Sun Microsystems. The Macintosh would need to be replaced
by a new platform, or reworked to run on more powerful hardware.

The Newton was Apple's first foray into

the PDA markets, as well as one of the first
In 1994, Apple allied
the AIM
new

alliance.
computing

in the industry. Despite being a financial flop

at the time of its release, it helped pave the
way for the Palm Pilot and Apple's own
iPhone and iPad in the future.

with IBM and Motorola in

The goal was to create a
platform

(the PowerPC

Reference Platform), which would use IBM and Motorola hardware coupled with Apple's software.
The AIM alliance hoped that PReP's performance and Apple's software would leave the PC far
behind, thus countering Microsoft. The same year, Apple introduced the Power Macintosh, the
first of many Apple computers to use Motorola's PowerPC processor.
In 1996, Michael Spindler was replaced by Gil Amelio as CEO. Gil Amelio made many changes at
Apple, including extensive layoffs. After multiple failed attempts to improve Mac OS, first with
the Taligent project, then later with Copland and Gershwin, Amelio chose to purchase NeXT and
its NeXTSTEP operating system, bringing Steve Jobs back to Apple as an advisor. [59] On July 9,
1997, Gil Amelio was ousted by the board of directors after overseeing a three-year record-low
stock price and crippling financial losses. Jobs became the interim CEO and began restructuring
the company's product line.
At the 1997 Macworld Expo, Steve Jobs announced that Apple would join Microsoft to release
new versions of Microsoft Office for the Macintosh, and that Microsoft made a $150 million
investment in non-voting Apple stock.
On November 10th , 1997 Apple introduced the Apple Inline Store, tied to a few build-to-order
manufacturing strategy.
1998-2005: Return to Profitability
On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of the Macintosh
128K: the iMac. The iMac design team was led by Jonathan Ive, who would later design
the iPod and the iPhone. The iMac featured modern technology and a unique design, and sold
almost 800,000 units in its first five months.
Through this period, Apple purchased several companies to create a portfolio of professional and
consumer-oriented digital production software. In 1998, Apple announced the purchase
of Macromedia's Final Cut software, signaling its expansion into the digital video editing
market. The following year, Apple released two video editing products: iMovie for consumers and,
for professionals, Final Cut Pro, which has gone on to be a significant video-editing program, with
800,000 registered users in early 2007.

In 2002 Apple purchased Nothing Real for their

advanced digital compositing application Shake, as well as Emagic for their music productivity
application Logic,

which

led

to

the

development

of

their

consumer-

level GarageBand application. iPhoto's release the same year completed the iLife suite.

Mac OS X, based
NeXT's OPENSTE
released on March

Apple retail stores allow potential customers

to

use floor

models without

making

purchase.

on
P and BSD

Unix was

24, 2001, after several

years of development. Aimed at consumers and professionals alike, Mac OS X aimed to combine
the stability, reliability and security of Unix with the ease of use afforded by an overhauled user
interface. To aid users in migrating from Mac OS 9, the new operating system allowed the use of
OS 9 applications through Mac OS X's Classic environment.
On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California. On
July 9, they bought Spruce Technologies, a DVD authoring company. On October 23 of the same
year, Apple announced the iPod portable digital audio player, and started selling it on November
10. The product was phenomenally successful over 100 million units were sold within six
years. In 2003, Apple's iTunes Store was introduced, offering online music downloads for $0.99 a
song and integration with the iPod. The service quickly became the market leader in online music
services, with over 5 billion downloads by June 19, 2008.
Since 2001 Apple's design team has progressively abandoned the use of translucent colored
plastics first used in the iMac G3. This began with the titanium PowerBook and was followed by
the white polycarbonate iBook and the flat-panel iMac.
2005-2007: The Intel Transition
At the Worldwide Developers Conference keynote address on June 6, 2005, Steve Jobs
announced that Apple would begin producing Intel-based Mac computers in 2006. On January 10,
2006, the new MacBook Pro and iMac became the first Apple computers to use Intel's Core
Duo CPU. By August 7, 2006 Apple had transitioned the entire Mac product line to Intel chips,

over one year sooner than announced. The Power Mac,iBook, and PowerBook brands were
retired during the transition; the Mac Pro, MacBook, and MacBook Pro became their respective
successors. On April 29, 2009, The Wall Street Journal reported that Apple was building its own
team of engineers to design microchips.
Apple also introduced Boot Camp to help users install Windows XP or Windows Vista on their
Intel Macs alongside Mac OS X.

The MacBook Pro (15.4" widescreen) was

Apple's
Apple's

success

evident in its stock

and 2006, the price

first

laptop

with

an Intelmicroprocessor. It was announced in

January

2006

and

is

aimed

at

the

during

this

period

was

price. Between early 2003

of Apple's stock increased

professional market.

more than tenfold,

from around $6 per share

(split-adjusted) to over $80. In January 2006, Apple's market cap surpassed that of Dell. Nine
years prior, Dell's CEO Michael Dell said that if he ran Apple he would "shut it down and give the
money back to the shareholders. Although Apple's market share in computers had grown, it

remained far behind competitors using Microsoft Windows, with only about 8% of desktops
and laptops in the US.
2007-2011: Widespread success
Apple achieved widespread success with its iPhone, iPod Touch and iPad products, which
introduced

innovations

in mobile

phones,

portable

music

players and personal

computers respectively. In addition, the implementation of a store for the purchase of software
applications represented a new business model. Touch screens had been invented and seen in
mobile devices before, but Apple was the first to achieve mass market adoption of such a user
interface that included particular pre-programmed touch gestures. The company's global

prosperity was continuing when its co-founder and chief executive officer Steve Jobs died, and
some speculated that this would lead to Apple's days of technological innovation and compelling
product design to become things of the past.
Delivering his keynote speech at the Macworld Expo 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 mobile electronic
devices. The event also saw the announcement of the iPhone and the Apple TV. The following
day, Apple shares hit $97.80, an all-time high at that point. In May, Apple's share price passed the
$100 mark.
In an article posted on Apple's website on February 6, 2007, Steve Jobs wrote that Apple would
be willing to sell music on the iTunes Store without digital rights management (DRM) (which
would allow tracks to be played on third-party players), if record labels would agree to drop the
technology. On April 2, 2007, Apple and EMI jointly announced the removal of DRM technology
from EMI's catalog in the iTunes Store, effective in May. Other record labels followed later that
year.
In July of the following year, Apple launched the App Store to sell third-party applications for
the iPhone and iPod Touch. Within a month, the store sold 60 million applications and brought in
$1 million daily on average, with Jobs speculating that the App Store could become a billion-dollar
business for Apple. Three months later, it was announced that Apple had become the third-largest
mobile handset supplier in the world due to the popularity of the iPhone.
On December 16, 2008, Apple announced that after over 20 years of attending Macworld, 2009
would be the last year Apple would be attending the Macworld Expo, and that Phil Schiller would
deliver the 2009 keynote in lieu of the expected Jobs. Almost exactly one month later, on January
14, 2009, an internal Apple memo from Jobs announced that he would be taking a sixmonth leave of absence, until the end of June 2009, to allow him to better focus on his health and
to allow the company to better focus on its products without having the rampant media
speculating about his health. Despite Jobs' absence, Apple recorded its best non-holiday quarter
(Q1 FY 2009) during the recession with a revenue of $8.16 billion and a profit of $1.21 billion.
After years of speculation and multiple rumored "leaks" Apple announced a large screen, tabletlike media device known as the iPad on January 27, 2010. The iPad runs the same touch based
operating system that the iPhone uses and many of the same iPhone apps are compatible with
the iPad. This gave the iPad a large app catalog on launch even with very little development time

before the release. Later that year on April 3, 2010, the iPad was launched in the US and sold
more than 300,000 units on that day and reaching 500,000 by the end of the first week. In May of
the same year, Apple's market cap exceeded that of competitor Microsoft for the first time since
1989.
Apple released the fourth generation iPhone, which introduced video calling, multitasking, and a
new uninsulated stainless steel design, which acts as the phone's antenna. Because of this
antenna implementation, some iPhone 4 users reported a reduction in signal strength when the
phone is held in specific ways. After a large amount of media coverage including mainstream
news organizations, Apple held a press conference where they offered buyers a free rubber
'bumper' case, which had been proven to eliminate the signal reduction issue. Later that year
Apple again refreshed its iPod line of MP3 players which introduced a multi-touch iPod
Nano, iPod Touch with FaceTime, and iPod Shuffle with buttons which brought back the buttons
of earlier generations.
In October 2010, Apple shares hit an all-time high, eclipsing $300. Additionally, on October 20,
Apple updated their MacBook Air laptop, iLife suite of applications, and unveiled Mac OS X Lion,
the latest installment in their Mac OS X operating system. On January 6, 2011, the company
opened their Mac App Store, a digital software distribution platform, similar to the existing iOS
App Store. Apple was featured in the documentary Something Ventured which premiered in 2011.
2011-present: Post-Steve Jobs Era
On January 17, 2011, Jobs announced in an internal Apple memo that he would take another
medical leave of absence, for an indefinite period, to allow him to focus on his health. Chief
operating officer Tim Cook took up Jobs' day-to-day operations at Apple, although Jobs would still
remain "involved in major strategic decisions for the company Apple became the most valuable
consumer-facing brand in the world. In June 2011, Steve Jobs surprisingly took the stage and
unveiled iCloud. iCloud is an online storage and syncing service for music, photos, files and
software which replaced Mobile Me, Apple's previous attempt at content syncing. This would be
the last product launch Jobs would attend before his death. It has been argued that Apple has
achieved such efficiency in its supply chain that the company operates as a monopsony (one
buyer, many sellers), in that it can dictate terms to its suppliers.
Briefly in July 2011, due to the debt-ceiling crisis, Apple's financial reserves were greater than
those of the US Government. On August 24, 2011, Jobs resigned his position as CEO of
Apple. He was replaced by Tim Cook and Jobs became Apple's chairman. Prior to this, Apple did

not have a chairman and instead had two co-lead directors, Andrea Jung and Arthur D. Levinson,
who continued with those titles until Levinson became Chairman of the Board in November.
On October 4, 2011, Apple announced the iPhone 4S, which included an improved camera with
1080p video recording, a dual core A5 chip capable of 7 times faster graphics than the A4, an
"intelligent software assistant" named Siri, and cloud-sourced data with iCloud, One day later, on
October 5, 2011, Apple announced that Jobs had died, marking the end of an era for Apple
Inc. The iPhone 4S was officially released on October 14, 2011.
On October 29, 2011, Apple purchased C3 Technologies, a mapping company, for $240 million.
C3 is the third mapping company Apple has purchased to date. On January 10, 2012, Apple for
$390 million acquired Anobit, an Israeli hardware company that developed and supplies a
proprietary memory signal processing technology that improves the performance of flash-memory
used in iPhones and iPads.

On January 19, 2012, Apple's Phil Schiller introduced iBooks Textbooks for iOS and iBook Author
for Mac OS X in New York City. This was the first major announcement by Apple since the
passing of Steve Jobs, who stated in his biography that he wanted to reinvent the textbook and
education. The 3rd generation iPad was announced on March 7, 2012. It includes a Retina
display, a new CPU, a five megapixel camera, and 1080p video recording.
On a July 24, 2012, conference call with investors, Tim Cook said that he loved India, but that
Apple was going to expect larger opportunities outside of India, citing the reason as the 30%
sourcing requirement from India.
On August 20, 2012, Apple's rising stock rose the company's value to a world-record $624 billion
dollars. This beat the non-inflation-adjusted record for market capitalization set by Microsoft in
1999. On August 24, 2012, a US jury ruled that Samsung should pay Apple $1.05 billion (665m)
in damages in an intellectual property lawsuit. Samsung said they will appeal the court ruling.
On September 12, 2012, Apple unveiled the iPhone 5, featuring an enlarged screen, more
powerful processors, and running iOS 6. The latter includes a new mapping application
(replacing Google Maps) that has attracted some criticism. It was made available on September
21, 2012, but has already become Apple's biggest iPhone launch, with over 2 million pre-orders
pushing back the delivery date to late October.

 Vision & Mission

Apple is known for keeping secrets. Many employees and workers who worked for Apple were
most of the times not even aware of what was happening around them. Many of them reported
that they were not even aware of Apples upcoming products and were as much shocked and
surprised to see the product on its launch as any other ordinary person. Same goes with Apples
vision and mission statement. There has been a lot of speculation about Apples vision and
mission statement. Although Apple does not have a formal vision and mission statement, but
some publications provide the following as the companys vision statement:
Vision Statement:
Apple ignited the personal computer revolution in the 1970s with the Apple II and
reinvented the personal computer in the 1980s with the Macintosh. 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.
Mission Statement:
Apple Computer is committed to protecting the environment, health and safety of our
employees, customers, and the global communities where we operate. We recognize that
by integrating sound environmental, health and safety management practices into all
aspects of our business, we can offer technologically innovative products and services
while conserving and enhancing resources for future generations. Apple strives for
continuous improvement in our environmental, health and safety management systems
and in the environmental quality of our products, processes, and services.
(Source: Company documents)

 Business Activities
The Management
Executive Profiles
CEO : Tim Cook
Tim Cook is the CEO of Apple and serves on its Board of
Directors. Before being named CEO in August 2011, Tim was
Apples Chief Operating Officer and was responsible for all of the
companys worldwide sales and operations, including end-to-end
management of Apples supply chain, sales activities, and service
and support in all markets and countries. He also headed Apples
Macintosh division and played a key role in the continued
development of strategic reseller and supplier relationships,
ensuring flexibility in response to an increasingly demanding
marketplace
Senior Vice President, Retail
Senior Vice President Internet Software and Services
Senior Vice President Mac Software Engineering
Senior Vice President iOS Software
Senior Vice President Industrial Design
Senior Vice President
Senior Vice President and Chief Financial Officer
Senior Vice President Hardware Engineering
Senior Vice President Worldwide Marketing
Senior Vice President and general Counsel
Senior Vice President Operations

: John Browett
: Eddy Cue
: Craig Federighi
: Scott Frostall
: Jonathan Ive
: Bob Mansfield
: Peter Oppenheimer
: Dan Riccio
: Philip W. Schiller
: Bruce Sewell
: Jeff Williams

Board of Directors
Chairman of the Board, Apple Chairman and former
CEO Genentech
Chairman And Former CEO Intuit Corp.
CEO Apple Inc.
Chairman and CEO J. Crew
Former Vice President of United States

: Arthur D Levinson, Ph. D

: Bill Campbell
: Tim Cook
: Milliard Drexler
: Albert Gore Jr.

President and CEO Walt Disney Company

Executive Chairman of the Board Avon
Former Chairman and CEO Northrop Grumman

: Robert A. Iger
: Andrea Jung
: Ronald D. Sugar, Ph. D
(Source: Apple Document/Apple Website)
http://www.apple.com/pr/bios/

The Facilities
Carteret, New Jersey
Apple facility in Carteret serves as Apple logistical hub to
all major highways leading to southern New Jersey,
Philadelphia, Baltimore, western Pennsylvania and New
York metropolitan area.
The building, which is brand new, consist of 275,000 square feet of heated warehouse
space and is designed for modem distribution techniques. The ceiling height is 36 feet,
which allows workers to accommodate 34 foot high pallet storage racks and increase the
facilitys usable cubic capacity. The existing lease was consummated in December 2011,
extending over a period of ten years with options to renew every five years.

Elizabeth Seaport, New Jersey

Apples Port facilities, which is consist of 20,000 square feet of heated warehouse space,
is strategically positioned next to the steamship berths. Because there are no state or
federal regulations restricting weight on the roads within the port, the workers are able to
haul overweight containers to this facility and distribute from the warehouse. The present
leases are through 2018.
McLester St. Elizabeth Marine terminal, NJ

This facility is a state of the art trucking and maintenance facility with over 9 acres of open
area and a 15.000 sq. ft. maintenance shop. It, too, is located within the confines of New
Jerseys largest shipping terminal. A high percentage of our customers are large multinational companies, who want to take advantage of the proximity to the worlds largest
container lines.
(Source : http://www.asaaple.com/facilities.htm)

Product
Timeline of Apple Inc. products.

iPad and iPhone

iPad

iPad mini

iPhone

iOS

Mac
AirPort Express

iMac

AirPort Extreme

Apple Keyboard

MacBook Air

MacBook Pro

Displays

MacBook Pro with

Retina Displays

Mac mini

Magic Trackpad

Apperture

iLife

Mac Pro

Magic Mouse

Apple Battery Charger

Apperture Remote
Desktop

iWork

Time Capsule

Safari

Facetime for Mac

Logic Studio

Final Cut
Pro X

OS X

iPod and iTunes

Apple TV

iPod Touch

iPod Classic

iPod Nano

iPod Shuffle

iTunes

iCloud

Apple retail Stores

Sources: Company Website

http://apple.com/products

Apple Products 2012

1. Personal computing products including desktop and

portable computers, Xerve servers, related devices and

Mac Hardware
Products

peripherals, and various third party hardware products

2. Desktop Computers include iMac, Mac Pro, and Mac mini
3. Portable computers include MacBook Pro, and MacBook

Air. MacBook is a portable computer designed for

consumer and education users. MacBook Pro is a
portable

computer

designed

for

professionals

and

consumers.
iTunes digital music management software (iTunes) is an
application for playing, downloading, and organizing digital audio
iTunes

and video files and is available for both Mac and Windows-based
computers. iTunes 10 features Ping, a music-oriented social
network, AirPlay wireless music playback, Genius Mixes, Home
Sharing, and improved syncing functionally with the companys
mobile communication and media devices.
iPhone combines a mobile phone, a widescreen iPod with touch

iPhone

controls and an internet communications device in a single

handheld product.
iPad, a multi-purpose mobile device

iPad
iPod

for browsing the web,

reading and sending e-mail, viewing photos, watching videos,

listening to music, playing games, reading e-books, and more.
Line of portable of digital music and media players is comprised
of iPod touch, iPod nano, iPod shuffle, and iPod classic.
Apple Cinema high Definition Display and a variety of Apple-

Displays & Peripheral

Products

branded and third party Mac-compatible peripheral products,

including printers, storage devices, computer memory, digital
video and still cameras, and various other computing products
and suppliers.
Apple TV is a device that allows customers to rent and watch

Apple TV

movies and television shows on their television. Content from

Netflix, Youtube, Flickr, and MobileMe, as well as music, photos,
and videos from a Mac- or Windows-based computer can be
wirelessly treamed to a television through Apple TV
1. Mac OS X is built on a open-source, UNIX-based

Operating System
Software

foundation. Mac OS X Snow Leopard is the seventh major

release of Mac OS X and became available in August
2009
2. iOS is the companys mobile operating system that serves

as the foundation for iPhone, iPad, iPod touch.

1. iLife 11 is the latest version of the companyys consumeroriented digital lifestyle application suite included with all

Good Corporate Governance (GCG)

Apples Board of Directions oversees the Chief Executive Officer and other senior
management in the competent and ethical operation of Apple on a day-to-day basis and
assures that the long term interests of shareholders are being served. To satisfy the
Boards duties, directors are expected to take a proactive, focused approach to their
positions and set standards to ensure that Apple is committed to business success through
the maintenance of high standards of responsibility and ethics.
The Board has adopted the following committee charters and governance guidelines
that, in conjunction with Apples articles of incorporation and bylaws, form the governance

framework for Apple. The governance structure is designed to foster principled actions,
effective decision-making and appropriate monitoring of both compliance and performance.

Corporate Social Responsibility (CSR)

Apple still needs to embrace the core values that make it a cool company: in short,
that owning an Apple product secures membership in a select group. While Apple is
perhaps overdue for a CSR strategy, the decision to enact donation matching is decidedly
not in Apple Way. The sequence of events surrounding last months announcement as
well as the fundamentally uncreative quality of the program presented imply that Cook is
only responding to media pressure rather than bringing to CSR the same kind of innovative
and inspiring vision for which Apple is so highly regarded. And in that regard, the corporate
matching program is fail.
Developing a CSR strategy around neither a sense of obligation nor calculation but
rather around certain well-defined character virtues is highly effective. In particular,
integrity, empathy and zeal, among others are critical during times of uncertainty; they
need to be well coordinated and implemented from inside-out not the other way around.
Integrity: Any major organizational change is accompanied by insecurity. The transition
from Jobs approach to hiring and firing is bound to create uncertainty among employees,
and in corporate environments uncertainty inevitably creates pernicious manoeuvring and
second guessing at middle management levels. The new CSR initiatives should present
both the company and its new CEO with a unique opportunity to promote an image of
integrity and to differentiate the new leadership from that of the Jobs era. However,
philanthropy is not a good place to start. It should start from inside, promoting trust and
openness, the internal integrity.
Empathy: Empathy creates emotional bonding between the company and stakeholders
allowing companies to endure a difficult time. Apple is currently embroiled in lawsuits that
are likely to restrict consumer choices in the future if it carries on. Publishers are frustrated
by Apples hammerlock over apps and magazine subscriptions on the iPad. There have
been indications that Samsung, Apples most threatening competitor, angered by patent
lawsuits, will finally fight back to counter sue Apple. While from Apples point of view, taking
legal action against competitors may seem necessary as a means of protecting innovation,
public opinion works differently. For multinational companies the legal victory can often end
with a kind of zero sum game, leaving it with a reputation for arrogance and insecurity.

Apple will have to worry about its reputation all the more so if it wins the battles against
competitors.
Zeal: Zeal is perhaps the virtue most-embedded at Apples core and is represented by their
continuous innovation and excitement in terms of products and customer experience. By
emphasizing CSR, Tim Cook would need to bring that famous Apple zeal to social issues,
offering an innovative approach, as competitor Google did, when it famously began
encouraging its employees to spend 20% of their time on their own projects.
It goes without saying that Cook and Apple are standing at a precipice. Product
innovations can be short-lived. A serious CSR Strategy could quietly shift Apples sales
pitch from personal charisma to the great public good, doing Apple good in the long term.
The leaders of innovative organizations that undergo the uncertainty that comes with
change, would be wise to promote both integrity and empathy internally, thus ensuring that
zeal continues to inspire consumers throughout their tenure and for years to come.

The External Assessment

Economic Forces
The global economic depression might have immense impact on Apple Inc. the
inflation rate is high, while consumers incomes didnt have significant changes, moreover
the unemployment rate has increased, leading consumers to spend less, especially on
luxury products, as Apple products might be viewed.
Also, the U.S dollar has fallen to five-year lows against the euro and yen, which
makes US goods cheaper to foreign consumers. Even though the U.S dollar has lost
value, Apple Inc. is not as endangered economically. The corporation has purchase itself
foreign currency, to minimize the economic effects of inflation on Apple Inc. It needs to be
said that the U.S dollars depreciation has in fact increased Apples revenue in the
international market.

Social, Cultural, Demographic & Environment Forces

Social influences: Globalization includes the interaction of people worldwide, for

which technology plays the main role. Todays World cannot be imagined without
technological devices as Computers, mobile phones, gadgets, etc. apple is the globally
seen as the King of technology, not because of most usage, but quality and design.
Another big social influence is the music industry, which over the last decade has
become virtual and set its market to the cyberspace. Apple having developed the biggest
virtual media store, iTunes, is well ahead any other competition of this direction. Web
piracy might be a threat, but most governments punish those behaviors.
All in all, Apples image also portrays the modern individuals lifestyle, combining
functionality with design, leading to brand identification and loyalty. Therefore social
influences have positive effects on Apple Inc.
According to apple in 2001 they began an Apple Recycling Program and by this
program Apple achieved to collect over 90% of electronic equipments. Apple started this
program for our benefit and protection of the environment. Apple is expected in all areas
including being green Also; they are constantly responding people needs and wants.

Political, Governmental & Legal Forces

It is reported that in 2007 52% of sales of Apple were from outside America. Bad
international relations, wars and terrorism might influence Apple in a huge manner;
moreover these are all factors Apple has no ability to control.
Apple Inc. produces many of its parts and products outside the U.S like Ireland,
Czech Republic, Korea, China, and Cork. Political Conflicts between the U.S and any of
these states may have awful outcomes for Apple Inc.

Technological Forces
The technology market for computers and mobile phones has become huge, adding
more competition in the market. Also technology innovations and changes are almost as
fast as light, therefore the products lifecycle is very short.
Investing largely in Research and Product Development, Apple is on top of the
market, regarding innovative products. This includes making the work for the competition
to follow, but its still better because in innovation is a big part of the brand and has shown
to pay out.

Competitive Forces
Apples annual report indicates that its business industry is Computer Hardware and it
sector is Technology. Yet, many analysts consider Apple as being a direct competitor with
other hardware manufacturers such as Hewlett-Packard (another hardware manufacturer)

and even Google (with no hardware manufacturing capacity), yet there is no comparison
between Apple and other phone related manufacturers or devices, through 38 percent of
its business is driven by iPhone and related products. This is always a challenge when
companies have wide product lines with a different marketing mix in each line.
For hardware product lines, direct competitors include International Business
Machines Corporation (IBM), Hewlett-Packard, Dell, Cisco Systems, Xerox, Seagate
Technology Public Limited Company, NCR, EMC, and Toshiba for the US Ranked
Hardware by sales, and for the non-US Ranked Hardware by sales includes Canon, NEC
Corporation, Fujitsu, Hitachi Ltd, Ricoh Company, Seiko Epson Corp., Fujitsu Technology
Solutions Holding (B.V), Okki Electric Industry Company, Limited, Acer Incorporated.

Apple Competitors at Glance

GOOG = Google Inc.

HPQ = Hewlett-Packard Company
RIMM = Research In Motion Limited
Industry = Personal Computers

Computer Hardware Comparisons

 The Internal Assessment

Management
Organizational Structure
Apple has no presidents of divisions and no SBUs. The company is organized
functionally with financially reportable segments being the Americas (North and South),
Europe (including the Middle East and Africa), Japan, Asia-Pacific, and retail (U.S. and
international markets). Tim Cook is the companys CEO, Apples.
Apples Organizational Structure:

Tim Cook
Chief Operating Officer

Eddy Cue
Sr. VP Software and Services

Bob Mansfield
Senior Vice President

Philip W. Schiller
Sr. VP Worldwide Product

Dan Riccio
Sr. VP Mac Hardware Engineering

Peter Oppenheimer
Sr. VP & Chief Financial Officer

Craig Federighi
Sr. VP Mac Software Engineering

Bruce Sewell
Sr. VP and general Counsel

Scott Frostall
Sr. VP iOS Software

Jeff Williams
Sr. VP Operations

Jonathan Ive
Sr. VP Industrial Design

John Browett
Sr. VP Retail

Source: Company Documents

www.apple.com

Marketing
Apple markets its products in many ways, such as through its own retail stores,
online, and some retail channels. It also sells direct to small and mid-sized businesses,
educational institutions, enterprises, governments, and creative organizations. At the end
of fiscal 2010, Apple had over 317 retail stores (233 stores in the United States and 84
stores internationally). The stores come in various sizes and locations, such as high-traffic
shopping malls or urban shopping districts; suitable to the needs and the demand of that
specific market.
Apple invests heavily in marketing and promotional campaigns using direct mail, print
media, TV commercials, Internet advertising, product placements and social networking

websites. Despite its heavy advertising campaign, Apple believes providing direct contact
with its targeted customers is the best way to demonstrate the advantages of its products
over those of its competitors. The stores employ experienced and knowledgeable
personnel who provide product advice, service, and training. The stores offer a wide
selection of third-party hardware, software, and various other accessories and peripherals.
Apples brands loyalty is considered unusual for any product. At one time, Apple
evangelists were actively engaged by the company, but this was after the phenomenon
was already firmly established. Apple evangelist guy Kawasaki has called the brand
fanaticism something that was stumbled upon. Apple has, however, supported the
continuing existence of a network of Mac User groups in most major and many major
centers of population where Mac computers are available.
Apple Store openings can draw crowds of thousands, with some waiting in line as
much as a day before the opening or flying in from other countries for the event. The New
York City Fifth Avenue Cube store had a line as long as half a mile; a few Mac fans took
the opportunity of the setting to propose marriage. The Ginza opening in Tokyo was
estimated in the thousands with a line exceeding eight city blocks.
Research in 2002 by NetRatings indicates that the average Apple consumer was
usually more affluent and better educated than other PC company consumers. the
research indicated that this correlation could stem from the fact that on average Apple Inc.
products are more expensive than other PC products.

Finance
Income Statement

Source: Yahoo Finance October 2012 (EDT)

http://finance.yahoo.com/q/cf?s=AAPL+Income+Statement&annual

Cash Flow

Source : Yahoo Finance October 2012 (EDT)

http://finance.yahoo.com/q/cf?s=AAPL+Cash+Flow&annual

Balance sheets

Production / Operations
Operating Expense

Market and financial statement data provided by NASDAQ, BATS Exchange, SEC and Xignite Inc.
Industry and operating metrics collected from company filings via EDGAR online

Research and Development

According to the company's annual report, which was filed with the U.S. Securities and
Exchange Commission this afternoon, Apple spent $3.4 billion on research and
development during its fiscal year, up $952 million, or 39 percent from last year. The year
prior, the company spent $2.4 billion, up $647 million or 36 percent from the year before.

While the cost went up, the amount Apple spends on R&D versus its overall sales
remained tiny. As in 2011, Apple's tally for 2012 remained at 2 percent.
Apple's R&D spending has been under close watch for years, in no small part because it
spends considerably less than many of its rivals. Microsoft, for instance, spent $9.8 billion
in its fiscal 2012, while Google spent $5.2 billion in its fiscal 2011.
"[Apple] continues to believe that focused investments in R&D are critical to its future
growth and competitive position in the marketplace and are directly related to timely
development of new and enhanced products that are central to the Company's core
business strategy," Apple said in its filing. "As such, the Company expects to make further
investments in R&D to remain competitive."

Management Information System

The Internal and external SWOT Analysis

 The Strategy Formulation Analytical Strategy

The Input Stage

External Factor Evaluation (EFE) Matrix
Competitive Profile Matrix (CPM)
Internal Factor Evaluation (IFE) Matrix

The Matching Stage

Strength, Weaknesses, opportunities, threats (SWOT) Matrix
Strategic Position and Action Evaluation (SPACE) Matrix
Boston Consulting Group (BCG) Matrix
Internal-External (IE) Matrix
Grand Strategy Matrix
The Decision Stage
Quantitative Strategic Planning Matrix (QSPM)

REFERENCES

http://en.wikipedia.org/wiki/Apple_Inc.
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http://ycharts.com/companies/AAPL/r_and_d_expense
http://www.wikinvest.com/stock/Apple_(AAPL)/Data/Total_Operating_Expenses
http://www.scribd.com/doc/67899754/13/APPLE%E2%80%99s-VISION-and-MISSION
http://www.imd.org/research/challenges/corporate-social-responsability-apple-opportunity-rosachun.cfm
http://investor.apple.com/governance.cfm
http://www.apple.com/environment/
http://www.apple.com/environment/#facilities
http://www.documentcloud.org/documents/338407-apple-facilities-report-2012.html
http://www.apple.com/pr/products/
http://finance.yahoo.com/q/co?s=AAPL+Competitors
http://denmark.chsnenu.edu.cn/Apple.pdf
http://finance.yahoo.com/q/co?s=AAPL+Competitors

http://www.asaapple.com/facilities.htm
http://finance.yahoo.com/q/cf?s=AAPL+Cash+Flow&annual
http://www.scribd.com/doc/57773266/118/Apple%E2%80%99s-foreign-operations