Project Report on

Success Story of Apple Inc.

CONTENTS

SNo.

Particulars

1.

Chapter 1- Company Overview

f

Page No.

- SWOT Analysis of Company

- Product Portfolio
- History and Evolution
- Management Hierarchy

2.

Chapter 2- Industry Overview

11

- Competitor Analysis
- Market Share of each player
- Industrial SWOT
3.

Chapter 3- Research Objectives

21

- Research Methodology
- Scope of Study
- Limitations
4.

Chapter 4- Case Analysis

23

5.

Findings

29

6.

Recommendations

30

7.

Conclusion

31

8.

Bibliography

32

Chapter-1
Company Overview

Apple Inc. is an American multinational technology company whose headquarters are situated in
Santa Clara, California that designs and manufactures computer software and online services.
The head office of Apple in India is in Bangalore.
The multinational company Apple was founded by Steve Jobs, Steve Wozniak and Ronald
Wayne together on April 1, 1976 and was renamed as Apple Inc. on January 9, 2007 as it
eliminated the word computer from its whole name Apple computer Inc.

Both Steve Jobs and Steve Wozniak were dropped out from college after a semester and renewed

their friendship at America who both lived in Silicon Valley, California and wanted to establish a
company which could change the vision the way people view computers. They founded a
company which works with the computers and later extended their scope into mobile devices.
Both Jobs and Wozniak sacrificed multiple things like a microbus and HP calculator respectively
to gather $1350 as a capital to start Apple.
Mainly the company comprises of two types, i.e.
1. Hardware products:
It

includes

the

following

computer, iPod portable

devices

media

Products

such

as iPhone ,

player,

and

iPad tablet,
the

Mac personal

Apple smartwatch.

offered

2. Apple'-software:
It includes the mac OS and iOS operating systems, the iTunes media player, the Safari web
browser. Its online services include the iTunes Store, iOS App Store and Mac App Store,
and iCloud

which

helps

in

backup

of

data

or

storage

of

any

information.

iOS Operating System

iCloud-System

iTunes is an application that facilitates several functions such as purchasing, organizing,

downloading audios and videos which works for both mobile models and Mac computers.
Apple also supports home sharing among its devices and syncing of data with IOS devices.
iPhone includes many in- built applications such as iBooks which consists of thousands of
books or novels to read for free and to store them in the application only. Another application
is Health application which facilitates heart rate, calorie intake and steps are counted of a
person using it. There is another device which is connected to the phone i.e. Apple Watch
which helps in easy access as it includes texting, clock, notifications, accepting rejecting
calls,

etc.

which

made

access

uncomplicated

Apple Watch

and

effortless

for

the

people.

Health App

More than 470 retail stores are being operated by the company in around 17 countries. It is
the largest company which holding the total assets and also in information technology by
revenue and the world's second-largest mobile phone manufacturer company. More than
1,15,000 employees are being employed by the company all over the world. Since the past
5

decade, the number of apple jobs has more than quadrupled in U.S. which was around 10,000
in 2002 to more than 55000 today which shows how the company has grew so vastly.
The multinational company became the first U.S. company whose total revenue is valued at
$182,795,000 on 27th of September, 2014 and has revenue of $233,715,000 which was noted
last on 26th of September, 2015. Apple made over one billion customers by march 2016. Also,
the foremost aim of Apple Inc. was not to make money but to make great products for the
utmost utility of its customers.
Around 1.25% of total US GDP is constituted by the annual revenue of Apples company
which totaled $233 billion ending in September 2015 for fiscal year. As it is one of the most
renowned and valuable brand company which also enjoys a peak level of goodwill, it was
awarded the worlds most valuable brand by Inter Best global brand report of 2014 edition
which holds a valuation of $118.9 billion
Around 60% of its revenue is derived from overseas sales, whereas China accounts for 20%
of the total revenue. Devices like iPhones helps in accounting most of the revenue. Apple
currently has a two percent market share in smartphones technology in India. China is
growing at

a rapid

pace in

taking

over much

of the companys revenue.

The five largest markets where Apple provide its products and services are North and South
America which generates more than one-third of apples sales. The following countries where
Apple dominates are Europe, China, Japan which constitutes of 22%, 20%, 8% of the Apples
revenue respectively. And the rest which includes Asia- pacific region brought in 6%.

VISION AND MISSION STATEMENT

The current CEO of the company Tim Cook introduced the current vision statement which
states-that,
We believe that we are on the face of the earth to make great products and thats not
changing. We believe in the simple not the complex. We believe that we need to own and
6

control the primary technologies behind the products that we make, and participate only in
markets where we can make a significant contribution. We believe in saying no to thousands
of projects, so that we can really focus on the few that are truly important and meaningful to
us. And frankly, we dont settle for anything less than excellence in every group in the
company, and we have the self- honesty to admit when were wrong and the courage to
change."

Apple Logos Formed

The logo of the company is a very significant part as it represents the face of the company so in
the case of Apple, Rob Janoff is the person who designed the iconic rainbow logo which also
made re-appearances in 2014. Many designs took place for the logo of Apple in several years but
the latest logo is a classic version of apple logo which is black in colour.

1976

1976 1998

2002 2013

Current

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".
When market analysts look at which brands are most valuable, Apple is often high on the list.
Apples logo has helped build the brand they have today

SWOT ANALYSIS
SWOT is an acronym for strengths, weaknesses, opportunities and threats related to
organizations. The following data illustrates Apple SWOT analysis
STRENGTHS

WEAKNESSES

High profits margin

High prices as compared to competitors

Better Financial strength

Features restricted

Inviolable brand image

Less variety and narrow product range

Leading market for supply of products

No Steve Jobs anymore

Consumer loyalty

Major improvements are below expectations

OPPORTUNITIES

THREATS

Geographic expansion

Intense competition

Accessories

Increase of manufacturing costs

More dependent on digitalization

Android, another software

Investments in research and developments

Declining PC Sales

Developing nations, e.g. India, China

Lack of innovation

APPLE PRODUCT PORTFOLIO

When it comes to consumer electronics and computing technology, one of the most recognizable
names in the world is Apple. It is one of the worlds largest information technology company,
and ranks in the top three manufacturers of mobile phones in the world.

The products that are identified with Apple are the following:
Hardware

Mac computers i.e. iMac, Mac Mini, MacBook, MacPro, MacBook Air, and MacBook
Pro.

iPods i.e. iPod Shuffle, iPod Nano, and iPod Touch

iPhone smartphones, as follows:

o

First generation iPhone

iPhone 3G

iPhone 4

iPhone 4S

iPhone 5

iPhone 5S

iPhone 5C

iPhone 6s

iPhone 6s Plus

iPad tablets, as follows:

o

iPad (iPad first generation, iPad 2, iPad 3, iPad 4)

iPad Mini (iPad Mini first generation, iPad Mini 2, iPad Mini 3, iPad Mini 4)

iPad Air (iPad Air first generation, iPad Air 2)

iPad Pro

Apple Watch smartwatch

Apple TV

Computer accessories

10

Software

Operating systems (OS X and iOS)

iTunes (media player)

Safari (web browser)

Creativity and productivity suites (iWork and iLife)

Services

iTunes Music Store

App Store (for Mac and iOS)

iCloud

Apple SIM (SIM card service for iPad

11

HISTORY AND EVOLUTION OF APPLE

Jobs and Wozniak

Apple was established on April 1st, 1976 by Steve Jobs, Steve Wozniak and Ronald Wayne to sell
the Apple I personal computer kit. Steve Jobs was said to own 45% of the company, Steve
Wozniak with 45% and Wayne with the remaining 10%. While Jobs and Wozniak were young
with little to no assets, Ronald Wayne was older with personal assets and was scared to put these
12

at risk. This resulted in Wayne selling his share of the company back to Jobs and Wozniak for a
reported 800$. Today Waynes share of the company would be worth over 3 billion dollars.
With the release of the iMac on August 15, 1998 Apple was able to put to rest some its past
failures. These failures included the first Apple Portable, which was bulky and awkward and the
Newton, Apples first attempt to enter the PDA market. In 2001, after several years of
development, Apple released Mac OS X, an operating system that targeted both consumers and
professionals. Mac OS X was a complete redesign from Mac OS 9 The iMac line of personal
computers paired with Mac OS X returned Apple to profitability and the release of the iPod
portable digital audio player later that year was the icing on the cake

MANAGEMENT HIERARCHY
Apple company follows matrix structure in its management hierarchy. Under CEO, there are 10
Vice Presidents: CFO, COO, Hardware, Operations, Retail, etc.

13

Top Executives
Chief Executive Officer - Tim Cook
Senior Vice President - Angela Ahrendts
Chief Design Officer - Jonathan Ive
Chief Financial Officer - Luca Maestri
Chief Operating Officer - Jeff Williams

Second Tier Management/ Vice Presidents

Vice President, Senior Projects - Paul Deneve
Vice President, User Interface Design - Alan Dye

Vice President, Communications - Steve Dowling

Vice President, Industrial Design - Richard Howarth
Vice President, Worldwide HR - Denise Young Smith
Vice President and Dean, Apple University - Joel Podolny

14

Chapter 2
INDUSTRY OVERVIEW
Apple is defined as one of the leading digital asset management company and global smart
phone provider. It is the only one company who runs both soft wares and hard wares. It allows
consumers to buy and share contents like applications, music and movies through Apple devices
i.e. iPad, iPhone, Mac and iPod by a platform called iTunes. The Consumer Electronics industry
includes electronic appliances that are used every day, mostly for communication, entertainment,
and office purposes. The Industry is committed to bring the best user experience to its customers
through its innovative hardware, software and services. The Companys business strategy
leverages its unique ability to design and develop its own operating systems, hardware,
application software and services to provide its customers products and solutions with innovative
design, superior ease-of-use and seamless integration. The Company believes a high-quality
buying experience with knowledgeable salespersons who can convey the value of the Companys
products and services greatly enhances its ability to attract and retain customers
COMPETITORS ANALYSIS
Competitors analysis can be defined as to see if there is anything which you can imbibe from
other people in our industry or to be able to pinpoint key factors that separates us from our rivals.
As everyone knows that Apple is a big industry and it is running so many products. Here are
some key competitors of Apple, according to cell phone industry and other products are
following: Google, HP (Hewlett-Packard), RIM, Samsung, HTC and Nokia.
Intensity of rivalry within the industry
The Apple Inc. has done a great job by providing technical support, creating customer loyalty
and producing products. So Apple has not to worry about that factor because Apple products
never go on sale. It maintains its productivity without ever marking down a product by
generating superior products from Android phones

15

Bargaining power of suppliers

Bargaining power of suppliers can make the profits down of Apple by indicating high prices for
supplies. Thus, the company looking for new suppliers because there is no doubt that Apple
Company is still growing. The company allows new suppliers to reduce the bargaining power of
suppliers by registering online on the Apples website.
As a result of this Apple can decrease their bargaining power through more competitive among
large number of suppliers
Bargaining power of buyers
The Apple Company should meet the expectations of their customers in order to achieve the
majority shares of market by different segments which come from educational level, age and
income. One another thing is that buyers are more prices sensitive and they can switch to another
retailer if the products are not differentiated. Apple holds around 75% of profit in industry so the
chances

of

Apples

customer

to

switch

another

brand

are

very

less

because of its strong brand loyalty. Whereas, competition is very high now a days and competing
companies trying to attract new customers because this has been done by picking off RIM again,
climb of Nokia and Androids rise.
Threat of new entrance
Entering more companies in the market means decreasing the market share of Apple. Company
can maintain the market share and generate profit through differentiation of brand and product as
well as making strong marketing strategy like competitive advantage. As a new company it is
very difficult to compete a company like Apple which has a strong brand image, innovation,
perceived value and good customer services.

16

Threat of new substitute product

If the need of consumers is same, then the product can be substituted otherwise not. Therefore,
threat of substitute might have two factors i.e. price and performance which allows customer to
switch the product as well as willingness of buyers to switch. Threat of substitute can be reduced
as much as buyers become loyal to the products. No company can present an ecosystem which
has created by Apple. People buy iPhone for standard and other Apples product for
upgradeability and stability which gives customer the ability to transfer knowledge and apps
among devices.
Brand Awareness
Apple is one of the brands that have strong brand awareness; nearly 90% of consumers are aware
of it. Which gives Apple an opportunity to present customers with different products with an
effective position, which increases Apples market shares because many consumers will choose
apple products over similar product of different company because of the company high
awareness. Apple awareness tool is the logo, the most recognized brand all over the world, it
demonstrated that its effective and easy to remember

Key competitors
Apple Inc. offers a broad range of products and services and the company is a leading competitor
in several industries, ranging from mobile phones, personal computers to entertainment medias.
As the company indulges and competes in many segments such as Smartphones, Laptops,
Personal computers, Tablets, software system, Application store. It has a broad range of
competition in the market but in our case we will study in brief about the segment of
Smartphones as Apple leads in this segment as compared to others and will also study about
different platforms.
Smartphone has revolutionized the way we do thing, the role Smartphone play in todays
society is phenomenal. Todays Smartphone is taking the role of computer, making it possible to
do a lot with this small hand held device. It has a broad use such as sharing information, paying

17

for products, browsing, and shopping. Virtually every activity today has a Smartphone
application for it.

Here is a list of the technology main competitors in Smartphone segments:

Apple VS Samsung

This research study compares between two major Smartphone brands, Apple and Samsung, these
are the two largest Smartphone brands producers, who are constantly competing and challenging
18

each other and in result of this competition they are providing consumers with best quality and
cheaper products.
For three years, Apple and Samsung have clashed on a scale almost unprecedented in business
history, their legal war costing more than a billion dollars and spanning four continents. The
battle between technological giants; US owned Apple and Korean owned Samsung results in
more innovative products for mobile phone users around the world. It is affecting everything
from the price we pay for our phones, to what they are capable of doing and whether we have
freedom to choose between the rival brands. Apple is widely regarded as a great innovator in the
consumer electronics industry. It is famous for beautiful designs and new applications.

Samsung has a market capitalization of about $154 billion, barely a quarter the size of Apples.
But if you believe that a company should be measured by how much it sells, rather than
collective market opinion, its Apple thats the second-largest electronics multinational in the
world, behind only Samsung. The former sold $171 billion worth of phones, tablets, and related
devices last year; the latter, $213 billion.
Apple and Samsung Lawsuit

19

Apple and Samsung have a turbulent relationship, one thats only gotten more agitated with time.
Nor is that dislike without justification. In 2011 Apple sued Samsung, arguing that the Galaxy S
and Galaxy Tab ripped off the iPhone and iPad respectively. Samsung countersued a week later,
claiming that Apple stole its wireless networking technology. The companies ended up suing
each other half a dozen times that year, in courts on four continents. In 2014 Apple won a $929
million judgment in its initial North American suit, which Samsung then appealed. Later, Apple
won a second lawsuit.
Net Worth
Apple, the tech giant is worth $154.1 billion which rose by 12% in 2016 as compared to last year
which leads behind the Samsung whose net worth is $28.5 billion

Apple VS Google

To succeed in tech, you must be a master of innovation. No two companies understand this better
than Apple and Google, which have become kings of the industry thanks to a string of incredible
ideas that have shaped the technology we rely on today. But which company is continuing to
innovate? Is it Apple, with its fitness-focused Apple Watch, Apple Pay, and a new streaming
service that hopes to save the music industry? Or is it Google, with Google Glass, self-driving
cars, and secret.

20

Version

Google's Android and Apple's iOS are operating systems used primarily in mobile technology,
such as smartphones and tablets. Android, which is Linux-based and partly open source, is
more PC - like than iOS, in that its interface and basic features are generally more customizable
from top to bottom. However, iOS' uniform design elements are sometimes seen as being more
user-friendly. Both Apple and Google use their developer conferences to introduce updates to
their mobile operating systems. Google IO, held in March, 2016, introduced Googles latest
version N of Android, along with new apps. Apple has done the same this week at its World
Wide Developer Conference, introducing iOS 10.
Navigation
Coming to maps, Apple Maps gets upgraded in iOS 10 but still generally lags behind Google
Maps as Google maps has to lot to offer in India as it tells about the live traffic and each route is
available to reach a particular location which incurs less time. In the meantime, Apple has added
traffic information (for certain countries) and alternative routes based on that information;
features Google Maps has had for some time.
Photos
Changes to Apple Photos brings it more into line with Googles Photos app. Photos will be
automatically arranged into suggested albums based on a range of information including
automatically recognized faces. Photos will also create automatic presentations with
accompanying music to create memories. Again, this is similar to features in Google Photos.
21

Security
If you really value security and privacy, Apple would have the edge. If you use other Apple
products, using an Android phone would put you at more of a disadvantage. As apple also
offered fingerprint security to unlock the phone.
Net Worth
Apples net worth is $495 billion as of May, 2016 where, as Google holds of $498 billion.

Apple VS Others

According to the pie chart analysis, the world market share of Apple Inc. is 50%. On the second
position is Samsung capturing 26% of the world market share. Whereas LG stand on third
holding 11%. Companies like Motorola, HTC, Nokia, and others holds 4%, 2%, 2%, 4%
respectively. It has been analyzed that Blackberry has lost completely in the world marketing
competition.

22

In the above graph, nodes denote existing user base (size is proportional to the number of users)
Arrows denote users switching to a new device (width is proportional to the percentage of
switching users during a month).

23

Industrial Swot Analysis

Strengths
Consumers are ready to pay for the cutting edge services.
Telecom software, telecom professionals, telecom infrastructure and telecom services are
shaping world's economy.
Fastest growing market.
Lowest tariff in the world.
Weaknesses
Concerns over user habit/work style.
Mobile enablement brings the need for additional security policies.
Low income countries cannot afford to replicate.
Existence of entry barriers for private companies.

Opportunities
Income level increasing in rural areas due to robust agriculture output.
Mobile brings an opportunity for increased collaboration and ideation.
Work/ life balance can be enhanced with greater access to corporate data via mobile
platforms.
Timely policy and regulatory initiatives taken by government to encourage foreign
players.

Threats
Increasing security risks (data leakage, malware, resource and service ability abuse)
Lines can blur between work and 'personal' and impact productivity and potentially lead
to burnout.
Financial risk to potential exposure to unauthorized access to corporate resource.

24

Chapter 3
RESEARCH OBJECTIVES

Research methodology mainly refers to collection of data and information for the purpose of
making business decisions. It may include interviews, publication research, surveys and research
techniques. It could include both historical and present information. The data which is collected
may assist a company by measuring, discussing and assessing the results of data.
Apple may not research about what customers are looking for in future products, they research
on their own consumers and what makes them stand in the first place.
Methods for collecting data:
Mainly, there are two methods to gather the relevant data which are:
1. Primary Data
2. Secondary Data
And for this project I have chosen secondary method as my research methodology i.e.
Case study. Case studies are used as a tool to facilitate learning on the part of the
participants by the trainer in the session. Case studies portray real life situations involving
decision making by participants. Using a case study for research also has a lot of
advantages:
1. The most important advantage of using a case study is that it simplifies complex
concepts.
2. Case studies expose the participants to real life situations which otherwise is
difficult.

25

3. The many solutions which come out of the case act as ready reference when
participants face similar problems at work place.
SCOPE OF STUDY
The scope of this project is to primarily focus on the study of Apple Inc. and its various segments
in the world market. Apple Inc. is spreading its wings and widening its business horizon to reach
and serve its customers at new centers in the years ahead. The company products are backed by a
highly motivated and technology driven team to achieve customer need, product expertise and
geographical reach.
The study is oriented towards the concept of different brands offered by Apple and its
competitors to its customers. The company has endeavoured to move fast in providing market
solution, which maximize customer needs and convenience, using multiple delivery channels
in composing the agency network.

LIMITATIONS

It is not possible to include all aspects of a particular problem which is stated in

the case analysis.
Too wide area of investigation is impractical and will lead to problems.
Case study requires lot of time to analyze its interpretation thus making it time
consuming.
Interpretation and analysis relating to the case study can be bias as it depends on
how the person perceives the case.

26

Chapter - 4
CASE ANALYSIS
APPLE VS SAMSUNG

BACKGROUND
On January 4, 2007, four days before the iPhone was introduced to the world, Apple filed a suite
of 4 design patents covering the basic shape of the iPhone. These were followed up in June of
that year with a massive filing of a color design patent covering 193 screen shots of various
iPhone graphical user interfaces. It is from these filings along with Apple's utility patents,
registered trademarks and trade dress rights, that Apple selected the particular intellectual
property to enforce against Samsung. Apple sued its component supplier Samsung, alleging that
several of Samsung's Android phones and tablets, including the Nexus S, Epic 4G, Galaxy S 4G,
and the Samsung Galaxy Tab, infringed on Apples intellectual property: its patents, trademarks,
user interface and style.
A claim of $2 million was kept in front of court by the Apple Inc. The proceedings regarding the
biggest tech war ever began in California court on March 31st.
Apple's evidence submitted to the court included side-by-side image comparisons of iPhone 3GS
and i9000 Galaxy S to illustrate the alleged similarities in packaging and icons for apps.
However, the images were later found to have been tampered with in order to make the
dimensions and features of the two different products seem more similar, and counsel for
Samsung accused Apple of submitting misleading evidence to the court.

27

PROBLEM STATEMENT
The problem stated in this case is that Apple filed suit against Samsung on Feb. 8, 2012, accusing
it of infringing several patents Samsung then filed counterclaims against Apple. In Apple's
original suit, the company said Samsung has systematically copied Apple's innovative
technology and products, features, and designs, and has deluged markets with infringing devices
in an effort to btake over market share from Apple.

Involved participants
Samsung: It is a tech powerhouse. Not only does it make many of the components used in
devices from many vendors, it owns key patents related to wireless communication technology
and is the most successful Android device maker by a massive margin.
Apple: It was one of the first company to invent modern smartphone and tablet It tries to protect
its products by dotting every i and crossing every t with patents on from outward design to that
rubber-band stretchy effect you get on iOS when you scroll past the edge of a page or photo.
Therese used to be time when these two companies used to get along great. Their legal battle
started long after Samsung started selling Android devices. Apple founder Steve Jobs hated
Android and once called it a stolen product a ripoff of the iPhone. Apples first major
clashes in the smartphone wars started with Nokia and HTC in 2009 and 2010. Also, because of
a friendly relationship between Apple and Samsung, apple used to spend billions on Samsung
flash memory, screens, processors, and other components.

28

EXECUTION TAKES PLACE

Apple warns Samsung it believes some Samsung phones and tablets infringe on Apple patents.
Since Samsung is a major Apple supplier and a trusted partner, Apple wants to work out a deal.
Apple meets with Samsung to propose a licensing deal where Samsung would pay Apple up to
$30 per phone and $40 per tablet. In comparison, six months earlier HTC agreed to pay
Microsoft a reported $5 for every Android device sold but Samsung declines.
The first lawsuit, and the countersuit
Apple sues Samsung, claiming Samsung slavishly copied its product designs. Within days,
Samsung countersues over 3G technology patents, and takes the fight international by filing
claims against Apple in Japan, Germany, and Korea.
Products pulled from shelves
Apple has sales of Samsungs Galaxy Tab 10.1 put on hold in Australia and secures an injunction
on Galaxy Tab 10.1 sales in the EU, claiming its design too closely resembled the iPad. The EU
injunction is quickly scaled back to just Germany, but Apple gets the German ban extended to
the Galaxy Tab 7.7.
In the U.S., a San Jose court orders Samsung to share samples of offending devices and source
code with Apple by the end of the year as part of the evidence-gathering process. Samsung tries
to get the court to order Apple to disclose information about the forthcoming iPhone 5 and iPad
3; the court does not agree to this request.
Both companies start to get specific about patents at play. Apples patents include design
elements as well as slide-to-unlock, rubber-banding, and universal search features; Samsungs
complaints center on standards-essential patents for 3G mobile technology that are supposed to
be available to anyone on fair, reasonable, and non-discriminatory (FRAND) terms.
29

Australia allows the Galaxy tablet to go on sale many months after its planned debut, but
Samsung changes the design to get around the sales ban in Germany. Samsung manages to get
iPhones and iPads banned in Germany for a few hours, and Apple loses a bid to block sales of
specific Samsung 4G phones in the United States.
More cases get filed. The fight now spans about 30 cases spanning North America, Asia, Europe,
and Australia. In the United States, Apple claims Samsung violated court orders by only turning
over one device with source code as part of discovery. Judge Lucy Koh orders the companies
into settlement talks in late May; but a week beforehand, a U.S. appeals court says sales of the
Galaxy Tab 10.1 should be blocked until a trial. To no ones surprise, talks go nowhere, although
Koh eventually rules any sales ban on the Galaxy Tab 10.1 would have to wait until the trial
ended.
Apple publicly admits Samsung didnt copy
Samsung and Google are forced to scale back the universal search bar on the Galaxy Nexus and
Galaxy S3 in response to an injunction granted by Judge Koh.
A UK court orders Apple to post public notice that Samsung didnt copy the iPads design
ostensibly because Samsungs tablets just werent as cool.
Apples $1 billion victory
After three days of deliberation the U.S. jury sides with Apple, awarding over $1 billion in
damages and finding that 26 Samsung products infringed on both Apple software and design
patents. The decision is controversial, generating debate about whether the jury acted properly
and if lay juries should sit on patent cases at all.
Apple quickly files a second U.S. lawsuit against Samsung, asserting 21 more devices released
since August 2011 infringe on Apple patents, including the Galaxy S3 and Galaxy Note.
An appeals court lifts an injunction on U.S. sales of the Samsung-made Galaxy Nexus, which
had been Apples strongest blow against a flagship Android product.

30

Apples patents called into question

The U.S. Patent of Trademark Office tentatively rejects all claims of Apples 915 pinch-tozoom patent, one of the most valuable multi-touch patents in Apples case against Samsung.
While a final ruling may be years away, if the patent is invalidated it could trigger a full retrial of
the first U.S. Apple-Samsung conflict. Apple maintains the patent will hold up; Samsung says
they have a workaround.
Judge Koh denies Apples motion for a permanent injunction against Samsung. Despite Apples
court victory, Samsungs infringing products remain on sale.
Apples victory shrinks, retrial set
Judge Koh finds the U.S. jury calculated damages incorrectly, so she invalidates $450 million of
the $1 billion awarded to Apple and orders a retrial to determine proper damages. In a surprise
win for Samsung, the U.S. International Trade Commission rules older iPhones and iPads should
be barred in the United States for infringing on a standards-essential patent belonging to
Samsung.
The United States Trade Representative outright vetoes the June ITC ruling two days before
going into effect. Some view the decision as Apple pulling strings in Washington D.C., while
others call it a victory for not allowing companies to use standards-essential patents as weapons
in litigation.
A few days later, the ITC blocks some older Samsung phones from sale in the United States for
violating two Apple patents.
Retrial starts, Apple seeks $379.8 million

31

The retrial on damages invalidated by Judge Koh gets underway. Apple seeks $379.8 million;
Samsung argues the amount should be $52 million. A Samsung representative concedes in court
some of its devices contain some elements of Apples property. Judge Koh awards Apple $290
million in damages, bringing the Samsungs total penalty in the first U.S. case down from $1.05
billion to $929 million.

Samsung asked for $1 billion, immediately appeals

The $929 million judgement against Samsung in the first U.S. trial becomes official. The next
day, Samsung files a formal appeal.
Steve Jobs hated Android and once called it a stolen product a ripoff of the iPhone.
The second U.S. trial gets underway on March 31. Apple seeks roughly $2 billion in damages.
The second trial mostly concerns different patents and different products than the first trial.
Unlike the first trial, Google may be a significant presence in the courtroom. Samsung claims
four of the five patent claims against it are licensed from Google as part of Android. Samsung
has withdrawn its standards-essential patents from the case.
New $2 billion trial underway
During the first days of April, the jury was selected and Apples Phil Schiller sat in the hot seat.
Heres what to expect in the coming weeks and months:

An initial decision (or mistrial) in the second U.S. case.

Samsungs appeal of the first U.S. case, expected to hinge on the validity of key Apple
patents. However, the appeals process will likely run ahead of the patent review process, putting
the whole thing into question.

Samsung or Apple appealing the second U.S. case.

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Final rulings on the validity of key Apple patents in the first U.S. case. Even if theyre
invalidated, Apple thinks the process will take at least until mid-2017.

Effects
As of early 2014, Apple has been largely successful against Samsung, with the bulk of rulings
and court decisions going in Apples favor. Apple has also struck a blow against companies (like
Motorola) using predatory licensing on standards-essential patents to seek bans on competing
products, and can perhaps claim a moral victory with Samsung outright admitting some of its
products copied Apple technology.
However, Apple has almost nothing concrete to show for its efforts with Samsung. Apple hasnt
managed to get Samsungs key products banned in major markets, Apple hasnt collected a
penny of damages from the high-profile first U.S. trial, and the ongoing international litigation is
at best a distraction and at worst a long-term drain on the company.

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Chapter 5
FINDINGS
After assessing the overall market scenarios what came in picture was as follows:

Samsung has had more success outside the US, and Apple hasn't succeeded in receiving
sales ban on Samsung products in the U.S
Apple products like mobile phones manufacturing cost is actually one third of the
products actual cost because of the company brand image.
Apple products are mainly sold as a brand image, it may not consist of everything but
people buys it because of its logo, brand reputation and loyalty.
Consumer reaction suggests that Apple is the market leader among all its close
competitors in smartphones segments
Most of the categories of age groups like iPhones models because of their easy access
and security reasons.

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 When Apple unveils a new iPhone, it generally drops the prices of the earlier models by
approximately $100. It has a tiered pricing system

Chapter - 6
RECOMMENDATIONS
Following things are recommended for a better growth and expansion of branches of Apple Inc.
Though its an established company, some recommendations are presented below so that it can
stand first among its competitors.

Complete focus on differentiated lifestyle branding: Apple has successfully developed

a differentiated lifestyle brand and it must continue to build in the same way by resisting
pressure to move to the middle to directly compete with Dell and HP.

Continue the expansion of Apple stores: The stores represent an important source of
revenue for Apple and serve as an interactive advertisement for the Apple brand. The
success of Apple Inc. cannot be matched till date by any other industry player. The more
apple stores will be, the more it wins amongst its competitors.

Emphasize the integrated system in advertisements: Apple's integrated system holds a

significant advantage over other industry systems relying on Microsoft Windows, yet
some customers have not experienced the seamless interoperability of all Apple products.
This marketing angle will result in cross selling of more products to new and existing
customers. Apple should continue to support the educational and creative professional
markets.

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Design innovation: If additional emphasis will be put on design development with

internal resource allocation, it will result in better and more customer and like always,
becoming the first and best in industry design.

Consumer electronics diversification: While the PC market has grown increasingly

crowded with competitors and customers saturated other areas of consumer electronics
continue to grow. Development of more products in other categories will result in more
revenue by accessing more customers in markets with less intense competition. Apple
should consider all work related to its operations in the iPod, iTunes, iSync, and iChat
sectors.

Chapters - 7
CONCLUSION
This project was of great importance to me, I have learnt a lot in this project, as we know that
Apple is a very big organization and market leader in tech - products. It has maximum market
share in smartphones, which is its main/core product, but tablet, laptop industry is also a
profitable industry. With the help of research, it can be found out that its weak points in the
pricing strategy which creates obstacles in achieving the largest market share and can increase its
market share through redefining price related decisions. The main conclusion that can be drawn
about Apple is how they are very innovative and early adapters. Apple is usually the first
company to come out with a new product line before anyone else which makes it a leader. It is
risky too but it seems to be an Apple advantage.
Although Apple is considered a shopping product, where people plan to buy it after considering
competitors prices, it is priced as a prestigious product in the technology industry. It is
considered the technology industry high price leader, which simply means they sell their
products at a higher end value, knowing that their loyal customers will pay this price. According
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to me, they should market to sell their products at a slightly lower price, to still make profit but
also to synchronize with customer satisfaction.

Chapter - 8
BIBLIOGRAPHY
BOOKS

Lashinsky Adam, Inside Apple, John Murray (Publisher), taken (Steve Jobs History),
Retrieved on 2nd August 2016

WEBLINKS

About Apple company overview, Retrieved on 26 th July, 2016 from

http://www.wikipedia.com/
About Apple history, Retrieved on 30th July 2016 from
http://www.macworld.co.uk/
About Apple Management Hierarchy, Retrieved on 1 st September 2016 from
http://www.apple.com/in/
About Apple company Swot Analysis, Retrieved on 20 th August 2016 from
www.computerworld.com

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