PROJECT REPORT

ON

CONSUMER PREFERENCE TOWARDS APPLE PRODUCTS

A PROJECT REPORT SUBMITTED IN THE PARTIAL FULFILLMENT OF THE

REQUIREMENTS FOR THE AWARD OF THE DEGREE OF
BACHELOR OF BUSINESS ADMINISTRATION (GEN.)

TO
GURU GOBIND SINGH INDRAPRASTHA UNIVERSITY
BY
RAJAT GUPTA
ENROLLMENT NO. 10290201712
UNDER THE GUIDANCE OF
Ms. Amanpreet Luthra

SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT AND

INFORMATION TECHNOLOGY
1

2011-2013

DECLARATION
I RAJAT GUPTA of BBA (GEN.) Course in SRI GURU TEGH BAHADUR
INSTITUTE

OF

TECHNOLOGY

MANAGEMENT

AND

Hereby declares that the project

INFORMATION
report entitled-

CONSUMER PREFERENCE TOWARDS APPLE PRODUCTS is an

original work and the same has not been submitted to any other institute for
award of any other degree or diploma.

----------------------------------------------SIGNATURE OF THE SCHOLAR

PLACE: DELHI
DATE

RAJAT GUPTA
ENROLLMENT NO.- 10290201712

CERTIFICATE
This is to certify that Mr. RAJAT GUPTA, Enrollment No. 10290201712 has
worked under my supervision to prepare this project report on CONSUMER
PREFERENCE TOWARDS APPLE PRODUCTS. The work embodied in
this report is original and is of the standard expected of a BBA (GEN.) student
and has not been submitted in part or full to this or any other university for the
award of any other degree or diploma. She has completed all requirements of
guidelines for research project and the work is fit for evaluation.
-------------------------------------SIGNATURE OF DIRECTOR
(Prof.) Dr. P.L.SETHI
-------------------------------------SIGNATURE OF TEACHER
INCHARGE
MS. INDERPREET KAUR
-------------------------------------SIGNATURE OF GUIDE
MS. AMANPREET LUTHRA
-------------------------------------PLACE: DELHI

SIGNATURE OF SCHOLAR

DATE:

RAJAT GUPTA
3

ACKNOWLEDGMENT
At the successful completion of our summer project I would like to express my
gratitude and thanks to Ms. Amanpreet Luthra for the guidance, support and
help, without which the completion of this project was not possible.
I would also like to take this opportunity to express my gratitude to all our
BBA (GEN.) Teachers, who were the source of inspiration and motivation all
through the diagram.
Finally, I would also like to take this opportunity to express my gratitude to all
the Faculty Members of S.G.T.B.I.M & I.T for sharing their helpful ideas during
this project.

--------------------------------------------SIGNATURE OF SCHOLAR
PLACE: DELHI

RAJAT GUPTA

DATE:

ENROLLMENT NO. - 10290201712

TABLE OF CONTENT
4

Chap No.

PARTICULARS

Page
No.

Declaration

ii

Certificate

iii

Acknowledgement

1
2
3
4
5
6
7

Introduction
Products and Market
Finance
Organisational Integrity
Research Methodology
Findings and Analysis
Conclusion
Annexure
Questionnaire
Bibliography

CHAPTER 1
INTRODUCTION
Apple Computers 30 years history is full of highs and lows, which is what we
would expect in a highly innovative company. They evolved throughout the
years into an organization that is very much a representation of its leader,
Steven Jobs. Apple made several hugely successful product introductions over
the years.
They have also completely fallen on their face on several occasions. They
struggled mightily while Jobs was not a part of the organization. Apple reached
a point where many thought they would not survive. When asked in late 1997
what Jobs should do as head of Apple, Dell Inc.'s (DELL) then-CEO Michael S.
dell said at an investor conference: Id shut it down and give the money back
to the shareholders. (Burrows, Grover , and Green).
Well, times changed. Less than 10 years later, Business Week ranked Apple as
the top performer in its 2008 Business Week 50. Apple attributes their recent
success to robust sales of iPod music players (62 million in 2008). They are
optimistic about the economies of scope with media giants, such as Disney and
Pixar.
Apple rarely introduces a new type of product. Thus, instead of being
the pioneer,

they

are

existing products. Portable

an expert
music players

second mover
and

notebook

by

refining

computers

are

examples. Apple increases the appeal of these products by making them stylish
and more functional. They now appear poised to make significant strides in the
6

home computer market and to creating a total digital lifestyle whereby the home
is a multimedia hub.

1.1 HISTORY
Apple was established on April 1, 1976
by Steve

Jobs, Steve

Wozniak,

and Ronald Wayne, to sell the Apple

I personal computer kit. They were
hand-built by Wozniak and first shown
to

the

public

at

the Homebrew

Computer Club. The Apple I was sold

as 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.)

APPLE1
Apple was incorporated January 3, 1977 without Wayne, who sold his share of
the company back to Jobs and Wozniak for $800. Multi-millionaire Mike
Markkula provided essential business expertise and funding of $250,000 during
the incorporation of Apple.
The Apple II was introduced on April 16, 1977 at the first West Coast
Computer Faire. The Apple II was chosen to be the desktop platform for the
first "killer app" of the business world. By the end of the 1970s, Apple had a
staff of computer designers and a production line. The company introduced the
ill-fated Apple III in May 1980 in an attempt to compete with IBM and
Microsoft in the business and corporate computing market.
7

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 a
"masterpiece"
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 12hour battery life.

MACHINTOSH PORTABLE
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 iPhone. The iMac featured modern technology
and a unique design, and sold almost 800,000 units in its first five months.
In 1998, Apple announced the purchase ofMacromedia's Final Cut software,
signaling its expansion into the digital video editing market.
Mac OS X, based on NeXT's OPENSTEP and BSD Unix was released on March
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.
8

On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia
and California.

1.2 Vision Statement

Man is the creator of change in this world. As such he should be
above systems and structures, and not subordinate to them.
Explanation of vision
Apple lives this vision through the technologies it develops for consumers and
corporation. It strives to make its customer masters of the products they have
bought. Apple doesnt simply make a statement. It lives it by ensuring that its
employees understand the vision and strive to reach it. It has put systems in
place to enable smooth customer interaction. It has put objectives in places to
continuously move forward; implemented strategies to fulfil these objectives;
and ensured that the right marketing, financial and operational structures are in
place to apply the strategies.

MISSION
Apple ignited the personal computer revolution in the 1970s with the Apple II
and reinvented the personal computer in the 1980s with the Macintosh. Today,
Apple continues to lead the industry in innovation with its award-winning
computers, OS X operating system and iLife and professional applications.
Apple is also spearheading the digital media revolution with its iPod portable
music and video players and iTunes online store, and has entered the mobile
phone market with its revolutionary iPhone.

10

CHAPTER 2
PRODUCTS& MARKET
2.1Product

Personal Computers

MacBook Pro
MacBook
MacBook Air
Mac Pro
iMac
Mac mini
Xserve

Mobile Devices

iPhone
iPhone3G
iPhone3GS

Portable Digital Music and Video Players

iPod shuffle
iPod nano
iPod classic
iPod touch

Other Products & Services

iTunes 9
11

Apple TV
iLife 09
iWork 09
Final Cut Studio
Logic Studio
FileMaker Pro
Safari:
QuickTime
MobileMe
AppleCare
iPhone 3GS

MAC AND ACCESSORIES

iMac, consumer all-in-one desktop computer introduced in 1998.
Mac Mini, consumer sub-desktop computer and server introduced
in 2005.
Mac Pro, workstation-class desktop computer introduced in 2006,
replacing the Power Macintosh.
MacBook Pro, professional notebook introduced in 2006,
replacing the PowerBook.
MacBook Air, ultra-thin, ultra-portable notebook introduced in
2008.
12

Apple also sells a variety of computer accessories for Mac computers

including

the

AirPort

wireless

networking

products, Time

Capsule, Thunderbolt Display, Magic Mouse, Magic Trackpad,Wireless

Keyboard, and the Apple Battery Charger

13

i PAD
On January 27, 2010, Apple
introduced
anticipated

their

much-

media tablet,

the iPad running a modified

version of iOS. It offers
multi-touch interaction with
multimedia formats including newspapers, magazines, ebooks, textbooks,
photos, movies, TV shows videos, music, word processing documents,
spreadsheets, video games, and most existing iPhone apps.It also includes a
mobile version ofSafari for web browsing, as well as access to the App
Store, iTunes Library, iBooks Store, contacts,

and notepad. Content is

downloadable via Wi-Fi and optional 3G service or synced through the user's
computer.
On March 2, 2011, Apple introduced an updated iPad model which had a
faster processor and two cameras on the front and back respectively.
The iPad 2 also addedsupport for optional 3G service provided
by Verizon in addition to the existing offering by AT&T.
On March 7, 2012, Apple introduced the third generation iPad (dubbed
"the new iPad" by Apple). The third-generation iPad added LTEservice
from AT&T or Verizon and an upgraded
processor, the A5X.
The

dimensions

and

form

factor

remained relatively unchanged, with the

14

new iPad being a fraction thicker and heavier than the previous version, and
minor positioning changes.
Since the tablet launched in 2010, iPad users have downloaded 3 billion
apps, while the total App Store downloads is up to over 25 billion
downloads.

i POD
On October 23, 2001,
Apple

introduced

the iPod digital music

player. It has evolved
to

include

various

models targeting the

wants

of

different

users. The iPod is the market leader in portable music players by a

significant margin, with more than 220 million units shipped as of
September 2009.
Apple has partnered with Nike to offer the Nike+iPod Sports Kit enabling
runners to synchronize and monitor their runs with iTunes and the Nike+
website. Apple currently sells four variants of the iPod.

iPod Shuffle, ultraportable digital audio player first introduced in

2005, currently available in a 2 GB model.

iPod Nano, portable media player first introduced in 2005,
currently available in 8 and 16 GB models. The latest generation has
a FM radio, apedometer, and a new multi-touch interface that replaced
15

the

traditional iPod

click

wheel.

iPod Classic (previously named iPod from 2001 to 2007), portable

media player first introduced in 2001, currently available in a 160 GB
model.
iPod Touch, portable media player that runs iOS, first introduced
in September 2007 after the iPhone went on sale. Currently available in 8,
32, and 64 GB models. The latest generation features the Apple
A4 processor, a Retina Display, and dual cameras on the front and back.
The back camera allows for HD video recording at 720p.

i PHONE
16

At the Macworld Conference & Expo in January 2007, Steve Jobs revealed
the long anticipated iPhone, a convergence of an Internet-enabled smart
phone and iPod.
The original iPhone combined a 2.5G quad band GSM and EDGE cellular
phone with features found in hand held devices, running scaled-down
versions of Apple's Mac OS X (dubbed iOS, formerly iPhone OS), with
various Mac OS X applications such
as Safari and Mail. It also includes
web-based and Dashboard apps such
as Google

Maps and Weather.

The

iPhone features a 3.5-inch (89 mm)

touch screen display, 4, 8, or 16 GB of memory, Bluetooth, and Wi-Fi (both
"b" and "g").
The iPhone first became available on June 29, 2007 for $499 (4 GB) and
$599 (8 GB) with an AT&T contract.[141]
On February 5, 2008, Apple updated the original iPhone to have 16 GB of
memory, in addition to the 8 GB and 4 GB models.
On

June

9,

2008,

at WWDC 2008, Steve Jobs announced

that the iPhone 3G would be available
on July 11, 2008.This version added
support

for 3G networking, assisted-

GPS navigation, and a price cut to $199

for the 8 GB version, and $299 for the
16 GB version, which was available in both black and white.
17

On June 8, 2009, at Apple's annual worldwide developers conference,

the iPhone 3GS was announced, providing an incremental update to the
device including faster internal components, support for faster 3G speeds,
video recording capability, and voice control.

On June 7, 2010, at WWDC 2010,

the iPhone 4 was announced, which
Apple says is its "'biggest leap we've
taken" since the original iPhone.
In

June

overtook Nokia to

2011,
become

Apple
the

world's biggest smartphone maker by volume.

On October 4, 2011, Apple unveiled

the iPhone 4S, which was released
in

the

United

States,

Canada,

Australia, United Kingdom, France,

Germany, and Japan on October 14,
2011, with other countries set to
follow later in the year.
On October 19, 2011, Apple announced an agreement with C Spire Wireless to
sell the iPhone 4S with that carrier in the near future, marking the frst time the
iPhone was officially supported on a regional carrier's network.

18

Apple sold 4 million iPhone 4S phones in the first three days after its
release, which made it not only the best iPhone launch in Apple's history, but
the most-successful launch of any mobile phone ever.
A new iPhone 5 back plate leaked in early May - they were acquired by 9to5
Mac, but look like the combination of a lot of the other rumours we've heard
about the shape and size of the new handset. These feature bigger speaker grills
as well as a four inch screen and a two-tone back with brushed aluminum.

Apple won its legal battle with Samsung, and in our eyes is the biggest victory
when it comes to its stock bump. Apple shares are up to a staggering $14 after
the smartphone firms win last Friday, this is where the iPhone 5 price alter and
stock bump comes into play, and there could be a possibility that Apple could
alter the price of the next-generation iPhone.

APPLE TV

At the 2007 Macworld conference, Jobs demonstrated the Apple TV,

(previously known as the iTV), a set-top video device intended to bridge the
19

sale of content from iTunes with high-definition televisions. The device links up
to a user's TV and syncs, either
via Wi-Fi or a wired network,
with

one

computer's

iTunes

library and streams from an

additional four.
Apple with the Apple TV has
added another device to its
portfolio that runs on its A4
processor along with the iPad and
the

iPhone.

The

memory

included in the device is the half of the iPhone 4 at 256 MB; the same as
the iPad, iPhone 3GS, iPod touch 3G, and iPod touch 4G. It has HDMI out
as the only video out source. Features include access to the iTunes Store to rent
movies and TV shows (purchasing has been discontinued), streaming from
internet video sources, including YouTube and Netflix, and media streaming
from an iTunes library.
2.2 MARKETING
Apple brand and brand community. 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.
Steve Jobs, Apples co-Founder, described Apple as a mobile devices
company the largest one in the world (Apples revenues are bigger than
Nokia, Samsung, or Sonys mobility business).
20

Applesbranding strategy is bearing fruit. For example, Apple reports that

half of all computer sales through its retail channel are to people new to
Macintosh, the companys sales and margins have been growing strongly since
2006, and Apple has achieved several best ever quarterly financial results in
recent years, and in early 2012 when Apples share price passed $500 per share
for the first time, the company was the most valuable business in the world with
a market capitalization which exceeded oil company Exxon, the previous top
business.

NAME
According to Steve Jobs, Apple was so named because Jobs was coming back
from an apple farm, and he was on a fruitarian diet. He thought the name
was fun, spirited and not intimidating

21

LOGO

Apples first logo, designed by Ron Wayne, depicts Sir Isaac Newton sitting
under an apple tree.
This was replaced by Rob Janoffs rainbow Apple, the now-familiar
rainbow-colored silhouette of an apple with a bite taken out of it.
The Apple logo was designed with a bite so that it would not be recognized as
another fruit. The colored stripes were conceived to make the logo more
accessible, and to represent the fact the Apple II could generate graphics in
color.
In 1998, with the roll-out of the new iMac, Apple discontinued the rainbow
theme and began to use monochromatic themes, nearly identical in shape to its
previous rainbow incarnation, on various products, packaging and advertising.
An Aqua-themed version of the monochrome logo was used from 20012003,
and a Glass-themed version has been used since 2003.

22

SLOGANS
Apples first slogan, Byte into an Apple, was coined in the late 1970s.
From 19972002, Apple used the slogan Think Different in advertising
campaigns. Although the slogan has been retired, it is still closely associated
with Apple.
Apple also has slogans for specific product lines for example, iThink,
therefore iMac was used in 1998 to promote the iMac, and Say hello to
iPhone has been used in iPhone advertisements.
Hello was also used to introduce the original Macintosh, Newton, iMac
(hello (again)), and iPod.

ADVERTISING
Since the introduction of the Macintosh in 1984 with the 1984 Super Bowl
commercial to the more modern Get a Mac adverts, Apple has been
recognized in the past for its efforts towards effective advertising and marketing
for its products, though its advertising has been criticized for the claims of
some more recent campaigns, particularly 2005 Power Mac ads and iPhone ads
in Britain.
Apples product commercials gained fame for launching musicians into stardom
as a result of their eye-popping graphics and catchy tunes. First, the company
popularized Canadian singerFeists 1234 song in its ad campaign. Later,
Apple used the song New Soul by French-Israeli singer-songwriter Yael
Nam to promote the MacBook Air. The debut single shot to the top of the
charts and sold hundreds of thousands of copies in a span of weeks.
23

In the past two decades, Apple Inc. has become well known for its
advertisements. Its most significant ad campaigns include the 1984 Super
Bowl commercial, the 1990s Think Different campaign, and the iPod
people of the 2000s.
Since the original Macintosh Super Bowl commercial in 1984, which
mimicked imagery from George Orwells 1984, Apple has maintained a style of
homage to contemporary visual art in many of its more famous ad campaigns.
For example, the Think Different campaign linked Apple to famous social
figuresincluding artist John Lennon and freedom fighter Mahatma Gandhi.
Several lawsuits have been filed against Apple by artists and corporations alike,
such as visual artist Louie Psihoyos and shoe company Lugz.
In 1997 the Think Different campaign introduced a new Apples slogan. This
was followed in 2002 by the Switch campaign. Another recent advertising
campaign by Apple is Get a Mac.

24

CHAPTER 3
FINANCE
In its fiscal year ending in September 2011, Apple Inc. hit new heights
financially with $108 billion in revenues (increased significantly from $65
billion in 2010) and nearly $82 billion in cash reserves. Apple achieved these
results while losing market share in certain product categories.
On March 19, 2012, Apple announced plans for a $2.65 per share dividend
beginning in fourth quarter of 2012, per approval by their board of directors.
On August 20, 2012 Apple closed at a record share price of $665.15. With
936,596,000 outstanding shares (as of June 30, 2012), it had a market
capitalization of $622.98 billion. This is the highest nominal market
capitalization ever reached by a publicly traded company and surpasses a
record set by Microsoft in 1999.

25

SHARE PRICE IN PREVIOUS 3 YRS

Fig. 1.1
Apple 2012 1Q results continues to impress. Revenue has jumped from 24,7 bn.
$ to 39,2 bn.$ or by 59% compared to 2011 Q1. High revenue increase lead to
even more rapid Net Income before depreciation increase. Which has risen from
6,4 bn.$ to 12,4 bn.$ or almost dubbed. This was lead by slower revenue cost
(+43%) and operating cost increase (+36%) then revenue.
Gene Munster and Michael Olson of Piper Jaffray are the main analysts who
track Apple stock. Piper Jaffray estimate future stock and revenue of Apple
annually, and have been doing so for several years

26

Fig. 1.2
Companies sales by geography is good. 1/3 of sales are from US and 1/3 is from
Asia which are the regions with highest estimated growth. Europe takes 22% of
sales. Asia sales has dubbed compared to last year so this market has grown the
most. Most of companies iPad where revenue has increased by +132% and now
contains 17% of companies income, this is a defiantly income growth segment
while Mac and special y iPod (-25%) are the products of the past.

27

Fig. 1.3Fig. 1.4

Balance sheet continues to be very strong. Equity level has increased to 68%.
That did not effect high return on Equity level which is 45% at Q1. Since
company announced dividend payments and share repurchases companies
Equity should not increase in the future.
Liquidity ratio is 1,6 which is good. Company has cash surplus of 110 bn.$
which has increased from 97 bn.$ from Q4. Companies inventory and
Account receivables are minimal so as liabilities.

Fig. 1.5

3.1 STOCK
'AAPL'

is

the stock

symbol under

which Apple

Inc. trades

on

the NASDAQ stock market. Apple originally went public on December 12,
1980, with an initial public offering at US$22.00 per share. The stock has split 2
for 1 three different times on June 15, 1987, June 21, 2000 and February 28,
2005. Apple initially paid dividends from June 15, 1987 to December 15, 1995.
On March 19, 2012, Apple announced that it would again start paying a
28

dividend of $2.65 per quarter (beginning in the quarter that starts in July 2012)
along a $10 billion share buyback which would commence September 30,
2012, the start of its fiscal 2013 year.

Fig. 1.6

29

3.2 FINANCIAL HISTORY

On May 19, 2001, the first two Apple Retail Stores opened their doors
in McLean, Virginia, and Glendale, California. Since then, Apple has opened
more than 300 stores worldwide. The stores not only provide a showcase for
Apples products, but also contribute significantly to Apples bottom line.
When Apple first announced its retail plans, the company had $4 billion in cash
on hand. Retail is an expensive investment, however, and some analysts
questioned Apples decision to open stores.
Among the naysayers was David Goldstein, then president of consulting firm
Channel Marketing. "I give them two years before they're turning out the lights
on a very painful and expensive mistake," said Goldstein in a 2001
BusinessWeek article. Arne Alsin of Alsin Capital Management said in
an article for TheStreet.com, It's desperation time in Cupertino, Calif., and,
this move is fraught with problems.
Other analysts were optimistic. Daniel T. Niles, then a Lehman Brothers
analyst, said in 2001, Apple has the ability to start attracting new customers
with the launch of their higher-end retail store strategy." George Rosenbaum of
market research firm Leo J. Shapiro & Associates, said in 2001 that the Apple
Retail Store was a "brilliant idea."
Apple was optimistic, too. Even after opening more than 20 stores in 2001, the
chief financial officer at the time, Fred Anderson, said that Apple could break
even on its retail investment by the end of the holiday shopping seasonless
than a year after the first store opening in May.
30

As cash reserves increased significantly in 2006, Apple created Braeburn

Capital on April 6, 2006 to manage its asset.

31

Table1
Financial
period

Net sales (Mil Net profits (Mil

USD)

USD)

Revenue

Return on net

growth

sales

FY 1981

335

unknown

---

---

FY 1982

583

61

74%

10%

FY 1983

983

77

69%

8%

FY 1984

1,516

64

54%

4%

FY 1985

1,918

61

27%

3%

FY 1986

1,902

154

-1%

8%

FY 1987

2,661

218

40%

8%

FY 1988

4,071

400

53%

10%

FY 1989

5,284

454

30%

9%

FY 1990

5,558

475

5%

9%

FY 1991

6,309

310

12%

5%

FY 1992

7,087

530

12%

7%

FY 1993

7,977

87

13%

1%

FY 1994

9,189

310

46%

3%

FY 1995

11,062

424

20%

4%

FY 1996

9,833

-816

-11%

-8%

FY 1997

7,081

-1,045

-28%

-15%

32

FY 1998

5,941

309

-16%

5%

FY 1999

6,134

601

3%

10%

FY 2000

7,983

786

30%

10%

FY 2001

5,363

-25

-33%

0%

FY 2002

5,247

65

-2%

1%

FY 2003

6,207

57

18%

1%

FY 2004

8,279

266

33%

3%

FY 2005

13,931

1,328

68%

10%

FY 2006

19,315

1,989

39%

10%

FY 2007

24,578

3,495

27%

14%

FY 2008

37,491

6,119

53%

16%

FY 2009

42,905

8,235

14%

19%

3.3 COMPETITIVE ANALYSIS

LIQUIDITY RATIO ANALYSIS
The liquidity ratio analysis is the measure of a companys
capability to meet short term financial obligations.
33

 Includes: current ratio, quick ratio, accounts receivable turnover,

inventory turnover, and cash to cash cycle.
When analyzing liquidity ratios it is ideal to have as high of a
number as possible because that will demonstrate that the company has
the adequate resources to pay all of their financial responsibilities.
Apple historically held very little long-term debt. The table below
compares Apples liquidity measures to their competitors, their industry,
and the general market. During the period of strong financial
performance, Apple accumulated cash. This strengthens Apples position
should they choose to access the capital markets.

Fig. 1.7

34

Fig. 1.8

Fig. 1.9

35

Fig. 1.10

Fig. 1.11
36

37

PROFITABILITY RATIO ANALYSIS

The profitability ratio analysis shows the effectiveness of a firms
ability to produce profits.
Include: net profit margin, return on assets, and return on equity.
Apple substantially improved in its key measures of profitability in
the last few fiscal years. In terms of return on assets, return on equity and
profit margin, Apple strengthened financially and now has similar ratios
to that of its competitors and the overall computer hardware industry .

Fig. 1.12

38

Fig. 1.13

39

Fig. 1.14
CAPITAL STRUCTURE ANALYSIS
A capital structure analysis is used to show how well a company
can finance itself through the use of their own assets which are show by
the debt and equity of the firm
The most important capital structure ratio is the debt to equity ratio
which is shown below

40

Fig. 1.15

41

CHAPTER 4
ORGANISATIONAL INTEGRITY
4.1 ORGANISATINAL LIFE STYLE OF APPLE

Apple believes its unique ability to create its

own state-of-the art products gives it leverage on the competition. To do

this continued investment in research and development of these products
is crucial.

Apple spent $1.3 billion in research and

development expenditures in 2009.

Apple supports third-party products that

compliment its offerings through developer programs.

Apple's

strategy

includes

growing its

distribution network to reach more customers and to provide them

with high-quality products and post sale support.

Apple manages its business mainly on a

geographic basis.

Segments in the Americas (North & South

Americas), Europe (European countries, the Middle East, and

Africa), Japan, and Retail.

The U.S. is Apple's largest geographic

marketplace, approximately 54% net sales to customers in 2009

42

Apple distributes its products by wholesalers,

resellers, national and regional retailers and catalogers.

Apple has noticed that historically sales in the

first and fourth quarters are substantially higher than the other two
quarters in the fiscal year.

Compliance with federal, state, local, and

foreign laws for the protection of the environment has no material effect
on Apple's capital expenditures, competitive position, or earnings.
However, in the future it could become material.

An instance of how this may become material

is customers having the ability to return the product at the end of its
useful life, making Apple responsible for environmentally safe
disposal or recycling of the products.

4.2 Value Chain Analysis

To determine where Apple developed distinctive capabilities, Porters genericva
lue chain model provides a systematic framework for identifying Applesutilizat
ion of resources. Primary activities for Apple include Technology and Product
Design, Production, Sales and Marketing, Customer Service, and Legal
Services.

4.2.1 Technology and Product Design

This component represents the true core (no pun intended) of Apples capability
from being the first platform to run an electronic spreadsheet (VisiCalc on the
Apple II Plus) to the first to establish a digital lifestyle hub (the Macintosh
43

product lines), Apples history is rich with cutting-edge technology development

Apple drives to be the best, no simply the first.
The Apple operating system is universally regarded as more stable and reliable
than Windows, while the desktop publishing software bundles (i Movie, iPhoto,
itune etc) are the most comprehensive available to end users. Ives best
summarizes the entrepreneurial culture within Apple by saying that its very
easy to be different, but very difficult to be better.
When it comes to industrial design, few consumer electronics or computer
makers have the legacy or influence of Apple, Inc. In the last 35 years, Apple
has introduced a myriad of products and devices, some very successful,
some, not so much.

4.2.2 Production
Because Apple had long refused to license its operating system to external
entities,the bundled packages of Apple- developed hardware and software
became the cornerstone of Apples production process. Apple achieved
unparalleled performance via 64-bit architecture, integrated distinctive styling
with the multi-coloured translucent iMac cases, and redefined intuitive
operation with the iPod.
While every product introduction has not been a success (Lisa, Newton,
etc.),Apple treats component production as a natural extension of the design
process.
Rumor has it that Sharp has fallen behind schedule on production of screens for
Apple Inc.'s (NASDAQ: AAPL) latest iPhone, just weeks before a planned
launch. In fact, Sharp has not started mass producing screens for Apple's next44

generation smartphone, signaling potential supply problems for the U.S.

company.
Apple has tapped two other suppliers for its screens - Japan Display and South
Korea's LG Display - and is still planning a major product launch on Sept. 12,
which many believe will be the next iPhone.
But the delay in Sharp's delivery raises questions about whether Apple can
secure enough iPhone screens to meet the strong demand expected for the new
model. There is a lot at stake for Apple with this new iPhone. Despite its recent
court victory over rival Samsung, Apple is still battling the South Korean
company for dominance in the smart phone market.

4.2.3 Sales and Marketing

We could simply title this section Steve Jobs. Since his return as CEO in
1997,
Jobs personally unveils all new product introductions, reviews corresponding
marketing campaigns, and approves new product development guidelines. In
adeparture from their turbulent history, Jobs entered into patent cross-licensing
and technology agreements with Microsoft.
(Linzmayer, 290) After years of unimpressive market share growth and
cannibalization of a loyal consumer base,the door to the expansive PC market
was now more accessible to Apple than ever before. Apple continued
to command a market premium for producing a better mousetrap throughout
its history.

4.2.4 Customer Service

45

How has Apple retained substantial cash reserves during the explosive growth
anddominance of P C s worldwide? Apple created a virtual love affair with their
customer bases by delivering technically superior products (iPods vs. other MP3
players, Macs vs. PCs, etc.)and aggressively pursuing hardware and
softwareupdates. Apple integrated their primary activities so well that it
is transparent tothe consumer where one activity begins and the other ends.
A perfect example of this is Apples willingness to develop software to run
Windows XP on its newIntel-based iMac and then post it online free to iMac
users. (Wingfield) In such anenvironment, customer service merely becomes the
realization of receiving a littlemore than expected.
Although Apple employs many resources and capabilities tosupport their
primary activities (human resources, supply procurement, etc.), themost
strategically relevant would be Legal Services.

4.2.5 Legal Services

In a market climate of constant change and innovation, it is inevitable that the
driveto expand product and service offerings will subject Apple to patent and
copyrightinfringement claims. The dispute over the Apple logo on its iTunes
Music

Store,for

example,

continues

despite a

previously

reached

settlement with Beatles AppleCorps Ltd. in 1991.

(Dow Jones Newswires) While such litigation as MicrosoftsWindows
infringement on Mac OS patents has been highly publicized, use of legal
guidance to drive acquisition versus internal development strategies for such
product as Garage Band and iMusic have proven highly valuable. Intellectual
property is sacred to Apple. There was a recent attempt to uncover the identities
46

of internal sources who leaked confidential information aboutan unreleased

productto online media outlets in 2008.

4.3 Product Differentiation

Apple prides itself on its innovation. When reviewing the history of Apple, it
isevident that this attitude permeated the company during its peaks of
success. For instance, Apple pioneered the PDA market by introducing the
Newton in 1993.Later, Apple introduced the easy-to-use iMac in 1998,
and updates following 1998.It released a highly stable operating system in 1999,
and updates following 1999.Apple had one of its critical points in history in
1999 when it introduced the iBook. This completed their Product matrix , a
simplified product mix strategy formulated by Jobs. This move allowed Apple
to have a desktop and a portablecomputer in both the professional and the
consumer segments
In

2001,

Apple

hit

another

important

historical

point

by

launching iTunes. Thismarked the beginning of Apples new strategy of making

the Mac the hub for the digital lifestyle. Apple then opened its own stores, in
spite of protest by independent Apple retailers voicing cannibalization concerns.
Then Apple introduced the iPod, central to the digital lifestyle strategy. Philip
W. Schiller,VP of Worldwide Product Marketing for Apple, stated, iPod is
going to changethe way people listen to music. He was right.Apple continued
their innovative streak with advancements in flat-panel LCDs for desktops in
2002 and improved notebooks in 2003. In 2003, Apple released their Life
package, containing improved versions of iDVD,iMovie, iPhoto, andiTunes.In
reference to Apples recent advancements, Jobs said, We are going to do
for digital creation what Microsoft did for the office suite productivity. That
is indeed bold statement. Time will tell whether that happens.Apple continued
47

its digital lifestyle strategy by launching iTunes Music Storeonline in 2003,

obtaining cooperation from The Big 5 Music companiesBMG,EMI, Sony
Entertainment, Universal, Warner. This allowed iTunes Music Storeonline to
offer over 200,000 songs at introduction. In 2003, Apple released theworlds
fastest PC (Mac G5), which had dual 2.0GHz PowerPC G5 processors.
Product differentiation is a viable strategy, especially if the company exploits
theconceptual distinctions for product differentiation. Those that are relevant
to Appleare product features, product mix, links with other firms, and
reputation.
Appleestablished a reputation as an innovator by offering an array of

easy-to-

use products that cover a broad range of segments. However, its links with other
firmshave been limited, as we will discuss in the next section on strategic
alliances.
There is economic value in product differentiation, especially in the case of mon
opolistic

competition. The

primary

economic

value

of

product

differentiationcomes from reducing environmental threats. The cost of product

differentiationacts as a barrier to entry, thus reducing the threat of new
entrants. Not only does accompany have to bear the cost of standard business, it
also must bear the costsassociated with overcoming the differentiation inherent
in the incumbent. Since companies pursue niche markets, there is a reduced
threat of rivalry among industry competitors.
A companys differentiated product will appear more attractive relative to
substitute, thus reducing threat of the substitute. If supplier increase their prices,
a company with a differentiated product can pass that cost to its customers, thus
reducing threat to suppliers. Since a company with a differentiated product
48

competes as a quasi-monopoly in its market segment, there is reduced threat of

buyer.
With all of Porters Five forces lower, a company may see economic value from
a product differentiated strategy. A company attempts to make its strategy a
sustained competitive advantage. For this to occur, a product differentiation
strategy that is economically valuable mustalso be rare, difficult to imitate, and
the company must have the organization toexploit this. If there are fewer firms
differentiating than the number required for perfect competition dynamics, the
strategy is rare. If there is no direct, easyduplication and there are no easy
substitutes, the strategy is difficult to imitate. There are four primary organizing
dilemmas when considering product differentiation as a strategy.
To resolve these dilemmas, there must be an appropriate organization
structure. AU-Form organization resolves the inter-functional collaboration
dilemma

if

thereare

product

development

and

product

management

teams. Combining the old with the new resolves the connection to the past
dilemma. Having a policy of experimentation and a tolerance for failure
resolves the commitment to marketvision dilemma. Managerial freedom within
broad decision-making guidelineswill resolve the institutional control dilemma.
Five leadership roles will facilitate the innovation process: Institutional Leader,
Critic, Entrepreneur, Sponsor, and Mentor. The institutional leader creates the
organizational infrastructure necessary for innovation. This role also resolves
disputes, particularly among the other leaders. The critic challenges
investments, goals, and progress. The entrepreneur manages the innovative
unit(s). The sponsor procures, advocates, and champions. The mentor coaches,
counsels, and advises. Apple had issues within its organization. In 1997, when
Apple was seeking a CEO acceptable to Jobs, Jean-Louis Gasse (then-CEO of
49

Be, ex-Products President at Apple) commented, Right now the job is so

difficult, it would require a bisexual, blond Japanese who is 25 years old and
has 15 years experience! Charles Haggerty, then-CEO of Western Digital,
said, Apple is a company that still has opportunity written all over it. But youd
need to recruit God to get it done.Michael Murphy, then-editor of California
Technology Stock Letter, stated, Apple desperately needs a great day-to-day
manager, visionary, leader and politician. The only person whos qualified to
run this company was crucified 2,000 years ago.Since Jobs took over as CEO
in 1997, Apple seems to have resolved the innovation dilemma evidenced by
their numerous innovations. To continue a product differentiation strategy,
Apple must continue its appropriate management of innovation dilemma and
maintain the five leadership roles that facilitate the innovation process.

50

4.4 Strategic Alliances

Apple has a history of shunning strategic alliances. On June 25, 1985, Bill
Gatessent a memo to John Sculley (then-CEO of Apple) and Jean-Louis Gasse
(then-Products President). Gates recommended that Apple license Macintosh
technologyto 3-5 significant manufacturers, listing companies and contacts such
as AT&T,
DEC, Texas Instruments, Hewlett-Packard, Xerox, and Motorola. (Linzmayer,
245-8) After not receiving a response, Gates wrote another memo on July 29,
naming three companies and starting, I want to help in a way I can with the
licensing. Please give me a call. In 1987, Sculley refused to sign licensing
contract with Apollo Compute. He felt that up-and-coming rival Sun
Microsystems would overtake Apollo Computer, which did happen.
Then, Sculley and Michael Spindler (COO) partnered Apple with IBM andMoto
rola on the PowerPC chip. Sculley and Spindler were hoping IBM would
buyApple and put them in charge of the PC business. That never came to
fruition, because Apple (with Spindler as the CEO) seemed contradictory and w
asextraordinarily difficult in business dealings.Apple turned the corner in 1993.
Spindler begrudgingly licensed the Mac to Power Computing in 1993 and
toRadius (who made Mac monitors) in 1995. However, Spindler nixed Gateway
in1995 due to cannibalization fears. Gil Amelio, an avid supporter of licensing,
took over as CEO in 1996. Under Amelio, Apple licensed to Motorola and IBM.
In1996, Apple announced the $427 million purchase of NeXT Software,
marking thereturn of Steve Jobs. Amelio suddenly resigned in 1997, and the
stage was set for Jobs to resume power.Jobs despised licensing, calling cloners
leeches. He pulled the plug, essentiallykilling its largest license (Power
51

Computer). Apple subsequently acquired Power Computings customer

database, Mac OS license, and key employees for $100 million of Apple stock
and $10 million to cover debt and closing costs. The business was worth $400
million.A massive reversal occurred in 1997 and 1998. In 1997, Jobs overhauled
the boardof directors and then entered Apple into patent cross-licensing and
technologyagreements with Microsoft.
In 1998, Jobs stated that Apples strategy is to focusall of our software
development resources on extending the Macintosh operatingsystem. To realize
our ambitious plans we must focus all of our efforts in onedirection. This
statement was in the wake of Apple divesting significant softwareholdings
(Claris/FileMaker

and

Newton).There

is

economic

value in

strategic

alliances. In the case of Apple, there was theopportunity to manage risk and
share costs facilitate tacit collusion, and manage certainty. It would have been
applicable to the industry in which Apple operated.
Tacit collusion is a valid source of economic value in network industries,which
the computer industry is. Managing uncertainty, managing risk, and
sharingcosts are sources of economic value in any industry. Although Apple
eventuallyrealized the economic value of strategic alliances, it should have
occurred earlier.The following are some comments about Apples no-licensing
policy.If Apple had licensed the Mac OS when it first came out,
Window wouldnt exist today.Jon van Bronkhorst, The computer was never
the problem. Thecompanys strategy was. Apple saw itself as a hardware
company; in order to protect our hardware profits, we didnt license our
operating system. We had themost beautiful operating system, but to get it you
had to buy our hardware at twicethe price. That was a mistake. What we should
have done was calculate anappropriate price to license the operating system. We
52

were also nave to think thatthe best technology would prevail. It often
doesnt.Steve Wozniak, Applecofounder If we had licensed earlier, we
would be the Microsoft of today.Ian W. Diery,Apple Executive VP, I am
aware that I am known as the Great Satan on licensingI was never for or
against licensing. I just did not see how it would make sense.But my approach
was stupid. We were just fat cats living off a business that hadno
competition.Jean-Louis Gasse, Be CEO and ex-CEO of Apple, admittinghe
made a strategic mistake.
A strategic alliance can be a sustained competitive advantage if it is rare,
difficult to imitate, and the company has an organization to exploit it. If the
number of competing firms implementing a similar strategic alliance is
relatively few, the strategy is rare. If there are socially complex relations among
partners and there isno direct duplication, the strategy is difficult to
imitate.When organizing for strategic alliances, a firm must consider whether
the alliance is non-equity or equity. A non-equity alliance should have explicit
contracts and legal sanctions. An equity alliance should have contracts
describing the equity investment. There are some substitutes for an equity
alliance, such as internal development and acquisitions. However, the
difficulties with these drive the formation of strategic alliances. It is vital to
remember, Commitment, coordination, and trust are all important determinants
of alliance success.

CONSUMER POINT OF-VIEW

We feel that Apple must focus on several key aspects to continue to grow and
succeed. They must continue a stable commitment to licensing, push for
economies of scope between media and computer, and become a learning
organization.
53

Apple apparently made a commitment to licensing. Although it should continue,

Apple may want to consider other forms of strategic alliances. An equity
strategic alliance may

offer Apple the opportunity to obtain additional

competencies. An effective way for a company like Apple to accomplish this

would be in the form of a joint venture.Apple should continue pushing the new
line of media-centric products. Meanwhile, Apple should not lose focus on its
computers. Macintosh computers were 39% of Apples sales in 2005. (Burrows)
This very innovative company exploits its second-mover position.
In the future, they will need tocontinue innovating to expand the boundaries of
both media and computers.One persistent element of both competitive
advantage and risk is Steve Jobs. He is bothsynonymous with Apples success
and has a large equity interest in Apple andDisney. If he were to divest his
leadership position, the reaction of both the marketand consumers would be
uncertain. Given his position within the organization aswell as the history of the
company when he was gone, Apple must find a way tolearn as an
organization. This will allow the company to withstand a departure by Jobs.
Based on the reaction of the organization, we feel that the mid-termperformance
of Apple will be strong. This period allows Apple time to overcome their
challenges if they move swiftly. For this reason, we feel that they willcontinue
to succeed and will continue to outperform their peers.

4.5 SWOT ANALYSIS

SWOT stands for Strength Weakness Opportunity Threat analysis
Here we will study the SWOT analysis of AppleCompany:

54

Fig. 1.16

STRENGTH
Apple is a very successful company. Sales of its iPod music
player had increased its second quarter profits to $320 (June 2005). The
favourable brand perception had also increased sales of Macintosh
computers. So iPod gives the company access to a whole new series of
segments that buy into other parts of the Apple brand. Sales of its
notebooks products is also very strong, and represents a huge contribution
to income for Apple.
Brand is all-important. Apple is one of the most established
and healthy IT brands in the World, and has a very loyal set of
enthusiastic customers that advocate the brand. Such a powerful loyalty
means that Ample not only recruits new customers, it retains them i.e.
they 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.
55

 Technical savvy: Product lines are easy to use and stable.

Recent integration with Microsoft products lines and Intel processors
demonstrate ability and willingness to adapt to a diverse customer base.
Such innovation, however, would not be sustainable without a
learningenvironment

tolerant

of mistakes. While

the

pure

technical expertise aloneis not a valuable or rare resource, it becomes

very costly to imitate when itexists within the socially complex,
entrepreneurial culture of Apple.
Steve Jobs As discussed earlier, Jobs proved to be a vital
component

to

Apples success. During

his absence

(1985-1996),

Apple experienced the most turbulent (financial and innovative) timeline

in its history. Immediately upon his return, he replaced most of the Board
of Directors, pruned and focused the new product ideas, and delivered
seven consecutive quarters of positive earnings to shareholders. As such,
Jobs is certainly a valuable, rare, and hard to imitate resource that Apple
fully exploits.

WEAKNESS
It is reported that the Apple iPod Nano may have a faulty
screen. The company has commented that a batch of its product has
screens that break under impact, and the company is replacing all faulty
items. This is in addition to problems with early iPods that had faulty
batteries, whereby the company offered customers free battery cases.
There is pressure on Apple to increase the price of its music
download file, from the music industry itself. Many of these companies
make more money from iTunes (i.e. downloadable music files) than from
56

their original CD sales. Apple has sold about 22 million iPod digital
music players and more than 500 million songs though its iTunes music
store. It accounts for 82% of all legally downloaded music in the US. The
company is resolute, but if it gives in to the music producers, it may be
perceived as a commercial weakness.
Early in 2005 Apple announced that it was to end its longstanding relationship with IBM as a chip supplier, and that it was about to
switch to Intel. Some industry specialists commented that the swap could
confuse Apple's consumers.
Market share: Apple has historically been strongest in the
US geographical and educational vertical markets. With the educational
market facing tightening budget constraints and the US approaching a PC
saturation point, Apple may need to burn cash more quickly and succumb
to market cos pressures on its product without a strategic innovation,
integration or divesture.
Steve Jobs: For virtually the same reasons Jobs is a strength,
he is simultaneously a weakness. The aggressive drive to bring innovative
visionsto life was noticeably absent and painfully felt (especially by
shareholders)during

his

departure. The

apparent

absence

of

succession planning coupledwith a lust for the limelight positioned Jobs

as Apples single consciousnessin the eyes of consumers and
shareholders.

OPPORTUNITY
Apple has the opportunity to develop its iTunes and music
player technology into a mobile phone format. The Rocker mobile phone
57

device was developed by Motorola. It has a colour screen, stereo speakers

and a advance camera system. A version of Apple's iTunes music store
has been developed for the phone so users can manage the tracks they
store on it. Downloads are available via a USB cable, and software on the
handset pauses music if a phone call comes in. New technologies and
strategic alliances offer opportunities for Apple.
Podcasts are downloadable radio shows that can be
downloaded from the Internet, and then played back on iPods and other
MP3 devices at the convenience of the listener. The listener can subscribe
to Podcasts for free, and ultimately revenue could be generated from paid
for subscription or through revenue generated from sales of other
downloads.
Consumer electronics With the startling success of the
iPod and iTunes,Apple entered the consumer electronics market. By
expanding the iTunesconcept to downloadable mobile phone features and
movies (podcasts), the door is now open to develop new and potentially
profitable strategic alliances with peripheral component manufacturers
(speaker, home stereo,etc.) and media transmission giants (Disney, TBS,
Verizon, etc.).
PC hardware and software market growth: With croslicensing of operating system platforms in place, Apple entered the highvolume business and environment traditionally dominated by windows
based PCs. The introduction of Intel based processors prompted
businesses to replace PCswith iMacs. They did this to gain a level
of stability and reliability in their business applications that PCs failed to
provide. An example is JapansAozora Bank Ltd., who is replacing 2,300
58

PCs with iMacs. (Wingfield)Apple must establish themselves as a

credible player in business desktopapplications to overcome the desktop
publishing stereotype.

THREATS
The biggest threat to IT companies such as Apple is the very
high level of competition in the technology markets. Being successful
attracts competition, and Apple works very hard on research and
development and marketing in order to retain its competitive position.
The popularity of iPod and Apple Mac are subject to demand, and will be
affected if economies begin to falter and demand falls for their products.

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.

CHAPTER 5
RESEARCH METHODOLOGY
The research methodology comprised of primary and secondary data collection
through questionnaires and various other means. The observations were specific
in nature and were subject to certain predefined attributes.

5.1 OBJECTIVES OF THE STUDY

59

 Major objective of the study is to get insight regarding consumer

preference towards Apple products with regard to factorssuch as Price
,Quality ,Customer satisfaction ,Popularity of products etc
To get information about companys brand, its image and
awareness.
To study the marketing strategies of Apple
To study the weaknesses and the loopholes in the strategy of the
company and give valuable suggestions.

5.1.1 PRIMARY OBJECTIVE

The primary objective of the Problem is to find out the consumer preferences.

5.1.2 SECONDARY OBJECTIVE

Secondary objective is to find out the strengths and weaknesses of Apple.

60

5.2 MODE OF DATA COLLECTION

Broadly there are two methods of data collection: Primary data collection method
Secondary data collection method
Primary data collection method: - Primary source of data implies
collection of data from its source of origin. It offers you first-hand
quantitative information relating to your statistical study.
I have collected primary data through:

Questionnaires

Interaction with the respondents

Secondary data collection method: - secondary source of data

implies collection of data from some agency or institution which already
happens to have collected the data through statistical survey(s). It does
not offer you first-hand information relating to your statistical study. You
are to rely on the information which already exists.
I have collected secondary data from: Internet
Books
Magazines

61

62

5.3 SAMPLE DESIGN

For the research activity to turn out into a success, I surveyed 50 respondents
that include our college students, customers in Delhi region.

5.4 LIMITATIONS
The main limitations are:
Sample Size: To know the market, the sample size of
customers should be big enough so that it represents the
POPULATION.
The above was not possible because of shortage of time and less number of
customers in the market who can give authentic information about Accord
segment market.
Area Covered: I covered our college, and Delhi region. The
analysis of this area was not enough to know the whole Indian Market.
Time factor: Research has been undertaken in 8 weeks time.
This is too less to study and analyze the market.
Cost factor: Questionnaire has been filled by those only
which could be easily accessed. Those who can be important to this
research may have been left out because of Cost constraints.

63

CHAPTER-6
FINDINGS AND ANALYSIS
Interpretation and Analysis On The Basis Of Above Data
1. Used Apple products?
Use Apple
Products

Percentage

Yes

57

No

43

Fig 1.17
INTERPRETATION
The above graph shows that a majority of 57% people have used the Apple
64

products, while a minority of 43% has not used the any of the Apple product
ever.
2. Usage duration of Apple Products
Usage Duration

Percentage

Less than 1 yr

33

1-2 years

34

3-4 years

23

5 years or more

10

Fig 1.18
INTERPRETATION:
The above graph shows that a majority of 34% people have been using the
Apple products from 1-2 years, while a minority of 10% has been using the
operating system from 5 years.
65

66

3. Product Satisfaction
Product

Percentage

Satisfaction
Yes

86

No

14

Fig 1.19
INTERPRETATION:
The above graph shows that a majority of 86% people are completely satisfied
with the Apple Devices, while minority of 14% people are still remain
unsatisfied with the Apple products and devices.

67

4. Apple prices compared to other industries

Prices

Percentage

Higher

35

Similar

58

Lower

Fig 1.20
INTERPRETATION:
The above graph shows that a majority of 58% people find the prices of Apple
product almost similar to that of products of other industries, while 7% people
find the prices of Apple product to be lower where as 35% consider Apple
products to be costlier than other firms Product.
68

69

5. Choose Apple products for?

Preference

Percentage

Fashionable Design

16

Appropriate Price

10

Multiple Functions

19

Fame of Brand

34

High Quality

26

Fig 1.21
INTERPRETATION:
The above graph shows that a majority of 34% people buy Apple products due
to its fame of Brand while only 10% people consider the Apple products to have
70

appropriate price n buy on basis of it. Other 19% prefer it for multiple
functioning n 21% for its Quality.

6. Apple news
News

Percentage

Sometimes

53

Often

25

Never

22

Fig 1.22
INTERPRETATION:
The above graph shows that a majority of 53% people sometimes focus on
Apple news while a minority of 22% of people never focuses on Apple news.
71

72

7. Apple firmware
Apple firmware

Percentage

iOS 3

11

iOS 4

25

Mac OSX

38

iOS 5

26

Fig 1.23
INTERPRETATION:
The above graph shows that a majority of 35% people like Mac OSX while a
minority of 5% of people likes Apple iOS 5 .
73

8. Apples Competitor
Apple competitor

Percentage

Samsung

32

Dell

29

LG

11

Sony

21

Toshiba

Fig 1.24
INTERPRETATION:
The above graph shows that a majority of 32% people prefer Samsung devices
over Apple, while a minority 7% of people prefers Toshiba devices over Apple,
where as just 29% ; 11% ; 21% feel dell, LG and Sony to be its competitor
respectively.
74

75

9. Will to purchase Apple Products in future

Will to purchase

Percentage

Yes

67

No

33

Fig 1.25
INTERPRETATION:
The above graph shows that a majority of 67% people will purchase an Apple
device in future, while a minority of 33% wont do so.

76

10.

Which mobile company do you think has better performance rather

than you?
Company

Percentage

Sony

25

Nokia

15

Samsung

50

Tata

10

INTERPRETATION
77

Out of 100 sample 50% respondent were looking to Samsung, 25% to Sony, 15% to Nokia
and 10% were looking to Tata for better mobile performance.

CONCLUSION
Microsoft
Controls about 94% of Operating Systems
Makes products that last a long time, although not
hip
OS is compatible with everything

Hewlett-Packard
Top competitor in PC sales
Controls large segment of business market
Does not offer other products other than PCs and
accessories

Dell
Weakest competitor of top 3
Provides computers for businesses, schools
Behind HP in PC sales
Does not offer other products other than PCs and
accessories

78

ANNEXURE
QUESTIONNAIRE
Rate the following on a scale
1. Have you ever owned any Apple products?
Y
es
N
o

2. How long have you been using Apple products?

less than one
year
1~2 years
3~4 years
5years or more
3. Are you satisfied with product quality?
Y
es
N
o
4. Apples price as compared to other industries?
highe
r
Simil
ar
Lowe
r
79

5. Why do you choose Apple products? [Multiple Selection]

Fashionable
design
Appropriate
price
Multiple
functions
Fame of brand
High quality
6. Do you focus on Apples news?
Never
Sometim
es
Often
7. Which Apple Firmware do you prefer most?
iOS 3
iOS 4
Mac
OSX
iOS 5
8. Which company is best competitor to Apple?
Toshib
a
LG
Dell
Sony
Samsu
ng
9. Are you planning to buy any Apple products in the future?
Son
y
Nok
80

ia
10.

Which mobile company do you think has better performance rather

than you?
Sony
Nokia
Samsu
ng
Tata

81

BIBLOGRAPHY
Books

William L.Simon, Gil Amelio (1999);My 500 Days At Apple

Carlton Jim, Apple : The Inside Story Of Intrigue, Egomania

and Business

Blunders

Deutschman Alan (2000), The Second Coming of Steve Jobs

Broadway

Hertzfeld Andy (2004), Revolution In the Valley

www.apple.com/in/

http://www.google.co.in/#hl=en&sclient=psy-

Websites

ab&q=APPLE&oq

http://en.wikipedia.org/wiki/History_of_Apple_Inc.

http://apple-history.com/

82