AppleInc.

AppleInc.isanAmericanmultinationaltechnologycompanyheadquarteredinCupertino,California,that
designs,develops,andsellsconsumerelectronics,computersoftware,andonlineservices.Its
bestknownhardwareproductsaretheMacpersonalcomputers,theiPodportablemediaplayer,
theiPhonesmartphone,theiPadtabletcomputer,andtheAppleWatchsmartwatch.Apple'sconsumer
softwareincludestheOSXandiOSoperatingsystems,theiTunesmediaplayer,theSafariwebbrowser,
andtheiLifeandiWorkcreativityandproductivitysuites.ItsonlineservicesincludetheiTunesStore,
theiOSAppStoreandMacAppStore,andiCloud.
ApplewasfoundedbySteveJobs,SteveWozniak,andRonaldWayneonApril1,1976,todevelopandsell
personalcomputers.ItwasincorporatedasAppleComputer,Inc.onJanuary3,1977,andwasrenamed
asAppleInc.onJanuary9,2007,toreflectitsshiftedfocustowardconsumerelectronics.Apple
(NASDAQ:AAPL)joinedtheDowJonesIndustrialAverageonMarch19,2015.
Appleistheworld'ssecondlargestinformationtechnologycompanybyrevenueafterSamsungElectronics,
theworld'slargesttechnologycompanybytotalassets,andtheworld'sthirdlargestmobilephone
manufacturer.OnNovember25,2014,inadditiontobeingthelargestpubliclytradedcorporationinthe
worldbymarketcapitalization,ApplebecamethefirstU.S.companytobevaluedatoverUS$700billion.As
ofJuly2015,Appleemploys115,000permanentfulltimeemployeesmaintains453retailstoresinsixteen
countriesandoperatestheonlineAppleStoreandiTunesStore,thelatterofwhichistheworld'slargest
musicretailer.
Apple'sworldwideannualrevenuein2014totaled$182billionforthefiscalyearendinginOctober
2014.Thecompanyenjoysahighlevelofbrandloyaltyand,accordingtothe2014editionof
theInterbrandBestGlobalBrandsreport,istheworld'smostvaluablebrandwithavaluationof$118.9
billion.Bytheendof2014,thecorporationcontinuedtoreceivesignificantcriticismregardingthelabor
practicesofitscontractorsanditsenvironmentalandbusinesspractices,includingtheoriginsofsource
materials.

197684:Foundingandincorporation

ApplewasestablishedonApril1,1976,bySteveJobs,SteveWozniakandRonaldWaynetoselltheApple
Ipersonalcomputerkit.TheAppleIkitswerecomputerssinglehandedlydesignedandhandbuiltby
WozniakandfirstshowntothepublicattheHomebrewComputerClub.TheAppleIwassoldas
amotherboard(withCPU,RAM,andbasictextualvideochips),whichwaslessthanwhatisnowconsidered
acompletepersonalcomputer.TheAppleIwentonsaleinJuly1976andwasmarketpricedat$666.66
($2,763in2015dollars,adjustedforinflation).
ApplewasincorporatedJanuary3,1977,withoutWayne,whosoldhisshareofthecompanybacktoJobs
andWozniakfor$800.MultimillionaireMikeMarkkulaprovidedessentialbusinessexpertiseandfundingof
$250,000duringtheincorporationofApple.Duringthefirstfiveyearsofoperationsrevenuesgrew
exponentially,doublingabouteveryfourmonths.BetweenSeptember1977andSeptember1980yearly
salesgrewfrom$775,000to$118m,anaverageannualgrowthrateof533%.
TheAppleII,alsoinventedbyWozniak,wasintroducedonApril16,1977,atthefirstWestCoastComputer
Faire.Itdifferedfromitsmajorrivals,theTRS80andCommodorePET,becauseofitscharactercellbased
colorgraphicsandopenarchitecture.WhileearlyAppleIImodelsusedordinarycassettetapesasstorage
devices,theyweresupersededbytheintroductionofa51/4inchfloppydiskdriveandinterfacecalled
theDiskII.TheAppleIIwaschosentobethedesktopplatformforthefirst"killerapp"ofthebusiness
world:VisiCalc,aspreadsheetprogram.VisiCalccreatedabusinessmarketfortheAppleIIandgavehome
usersanadditionalreasontobuyanAppleII:compatibilitywiththeoffice.BeforeVisiCalc,Applehadbeen
adistantthirdplacecompetitortoCommodoreandTandy.

Bytheendofthe1970s,Applehadastaffofcomputerdesignersandaproductionline.Thecompany
introducedtheAppleIIIinMay1980inanattempttocompetewithIBMandMicrosoftinthebusinessand
corporatecomputingmarket.JobsandseveralAppleemployees,includingJefRaskin,visitedXerox
PARCinDecember1979toseetheXeroxAlto.XeroxgrantedAppleengineersthreedaysofaccesstothe
PARCfacilitiesinreturnfortheoptiontobuy100,000shares(800,000splitadjustedshares)ofAppleatthe
preIPOpriceof$10ashare.
Jobswasimmediatelyconvincedthatallfuturecomputerswoulduseagraphicaluserinterface(GUI),and
developmentofaGUIbeganfortheAppleLisa.In1982,however,hewaspushedfromtheLisateamdueto
infighting.JobstookoverJefRaskin'slowcostcomputerproject,theMacintosh.Aracebrokeoutbetween
theLisateamandtheMacintoshteamoverwhichproductwouldshipfirst.Lisawontheracein1983and
becamethefirstpersonalcomputersoldtothepublicwithaGUI,butwasacommercialfailureduetoits
highpricetagandlimitedsoftwaretitles.
OnDecember12,1980,Applewentpublicat$22pershare,generatingmorecapitalthananyIPO
sinceFordMotorCompanyin1956andinstantlycreatingmoremillionaires(about300)thananycompany
inhistory.

198491:SuccesswithMacintosh
Seealso:TimelineofMacintoshmodels

ThefirstMacintosh,releasedin1984

Apple's"1984"televisionad,setinadystopianfuturemodeledaftertheGeorgeOrwellnovelNineteen
EightyFour,setthetonefortheintroductionoftheMacintosh.
In1984,ApplelaunchedtheMacintosh,thefirstpersonalcomputertobesoldwithoutaprogramming
languageatall.Itsdebutwassignifiedby"1984",a$1.5milliontelevisioncommercialdirectedbyRidley
ScottthatairedduringthethirdquarterofSuperBowlXVIIIonJanuary22,1984.Thecommercialisnow
hailedasawatershedeventforApple'ssuccessanda"masterpiece".

TheMacintoshinitiallysoldwell,butfollowupsaleswerenotstrongduetoitshighpriceandlimitedrangeof
softwaretitles.Themachine'sfortuneschangedwiththeintroductionoftheLaserWriter,the
firstPostScriptlaserprintertobesoldatareasonableprice,andPageMaker,anearlydesktop
publishingpackage.Ithasbeensuggestedthatthecombinationofthesethreeproductswereresponsible
forthecreationofthedesktoppublishingmarket.TheMacintoshwasparticularlypowerfulinthedesktop
publishingmarketduetoitsadvancedgraphicscapabilities,whichhadnecessarilybeenbuiltintocreatethe
intuitiveMacintoshGUI.
In1985,apowerstruggledevelopedbetweenJobsandCEOJohnSculley,whohadbeenhiredtwoyears
earlier.TheAppleboardofdirectorsinstructedSculleyto"contain"Jobsandlimithisabilitytolaunch
expensiveforaysintountestedproducts.RatherthansubmittoSculley'sdirection,Jobsattemptedtooust
himfromhisleadershiproleatApple.SculleyfoundoutthatJobshadbeenattemptingtoorganize
acoupandcalledaboardmeetingatwhichApple'sboardofdirectorssidedwithSculleyandremovedJobs
fromhismanagerialduties.JobsresignedfromAppleandfoundedNeXTInc.thesameyear.
AfterJobs'departure,theMacintoshproductlineunderwentasteadychangeoffocustohigherpricepoints,
thesocalled"highrightpolicy"namedforthepositiononachartofpricevs.profits.Jobshadarguedthe
companyshouldproduceproductsaimedattheconsumermarketandaimedfora$1000priceforthe
Macintosh,whichtheywereunabletomeet.Newermodelssellingathigherpricepointsofferedhigherprofit
margin,andappearedtohavenoeffectontotalsalesaspoweruserssnappedupeveryincreaseinpower.
Althoughsomeworriedaboutpricingthemselvesoutofthemarket,thehighrightpolicywasinfullforceby
themid1980s,notablyduetoJeanLouisGasse'smantraof"fiftyfiveordie",referringtothe55%profit
marginsoftheMacintoshII.
ThispolicybegantobackfireinthelastyearsofthedecadeasnewDTPprogramsappearedonPC
clonesthatofferedsomeormuchofthesamefunctionalityoftheMacintoshbutatfarlowerpricepoints.
Thecompanylostitsmonopolyinthismarket,andhadalreadyestrangedmanyofitsoriginalconsumer
customerbasewhocouldnolongeraffordtheirhighpricedproducts.TheChristmasseasonof1989was
thefirstinthecompany'shistorythatsawdecliningsales,andledtoa20%dropinApple'sstock
price.Gasse'sobjectionswereoverruled,andhewasforcedfromthecompanyin1990.Laterthatyear,
Appleintroducedthreelowercostmodels,theMacintoshClassic,MacintoshLCandMacintoshIIsi,allof
whichsawsignificantsalesduetopentupdemand.
In1991AppleintroducedthePowerBook,replacingthe"luggable"MacintoshPortablewithadesignthatset
thecurrentshapeforalmostallmodernlaptops.Thesameyear,AppleintroducedSystem7,amajor
upgradetotheoperatingsystemwhichaddedcolortotheinterfaceandintroducednewnetworking
capabilities.ItremainedthearchitecturalbasisforMacOSuntil2001.ThesuccessofthePowerBookand
otherproductsbroughtincreasingrevenue.Forsometime,Applewasdoingincrediblywell,introducing
freshnewproductsandgeneratingincreasingprofitsintheprocess.ThemagazineMacAddictnamedthe
periodbetween1989and1991asthe"firstgoldenage"oftheMacintosh.
ApplebelievedtheAppleIIserieswastooexpensivetoproduceandtookawaysalesfromthelowend
Macintosh.In1990,ApplereleasedtheMacintoshLC,whichfeaturedasingleexpansionslotfortheApple
IIeCardtohelpmigrateAppleIIuserstotheMacintoshplatformtheAppleIIewasdiscontinuedin1993.

199197:Decline,restructuring,acquisitions
Seealso:TimelineoftheAppleIIfamily
ThesuccessofApple'slowercostconsumermodels,especiallytheLC,alsoledtocannibalizationoftheir
higherpricedmachines.Toaddressthis,managementintroducedseveralnewbrands,sellinglargely

identicalmachinesatdifferentpricepointsaimedatdifferentmarkets.ThesewerethehighendQuadras,
themidrangeCentrisline,andtheillfatedPerformaseries.Thisledtosignificantmarketconfusion,as
customersdidnotunderstandthedifferencebetweenmodels.
Applealsoexperimentedwithanumberofotherunsuccessfulconsumertargetedproductsduringthe
1990s,includingdigitalcameras,portableCDaudioplayers,speakers,videoconsoles,theeWorldonline
service,andTVappliances.EnormousresourceswerealsoinvestedintheproblemplaguedNewton
divisionbasedonJohnSculley'sunrealisticmarketforecasts.Ultimately,noneoftheseproductshelpedand
Apple'smarketshareandstockpricescontinuedtoslide.
Throughthisperiod,MicrosoftcontinuedtogainmarketsharewithWindowsbyfocusingondelivering
softwaretocheapcommoditypersonalcomputers,whileApplewasdeliveringarichlyengineeredbut
expensiveexperience.Applereliedonhighprofitmarginsandneverdevelopedaclearresponseinstead,
theysuedMicrosoftforusingaGUIsimilartotheAppleLisainAppleComputer,Inc.v.Microsoft
Corp..Thelawsuitdraggedonforyearsbeforeitwasfinallydismissed.Atthistime,aseriesofmajor
productflopsandmisseddeadlinessulliedApple'sreputation,andSculleywasreplacedasCEObyMichael
Spindler.

TheNewtonwasApple'sfirstforayintothePDAmarkets,aswellasoneofthefirstintheindustry.Despite
beingafinancialflopatthetimeofitsrelease,ithelpedpavethewayforthePalmPilotandApple's
owniPhoneandiPadinthefuture.
Bytheearly1990s,ApplewasdevelopingalternativeplatformstotheMacintosh,suchasA/UX.The
Macintoshplatformitselfwasbecomingoutdatedbecauseitwasnotbuiltformultitaskingandbecause
severalimportantsoftwareroutineswereprogrammeddirectlyintothehardware.Inaddition,Applewas
facingcompetitionfromOS/2andUNIXvendorssuchasSunMicrosystems.TheMacintoshwouldneedto
bereplacedbyanewplatformorreworkedtorunonmorepowerfulhardware.
In1994,ApplealliedwithIBMandMotorolaintheAIMalliancewiththegoalofcreatinganewcomputing
platform(thePowerPCReferencePlatform),whichwoulduseIBMandMotorolahardwarecoupledwith
Applesoftware.TheAIMalliancehopedthatPReP'sperformanceandApple'ssoftwarewouldleavethePC
farbehindandthuscounterMicrosoft.Thesameyear,AppleintroducedthePowerMacintosh,thefirstof
manyApplecomputerstouseMotorola'sPowerPCprocessor.
In1996,SpindlerwasreplacedbyGilAmelioasCEO.AmeliomadenumerouschangesatApple,including
extensivelayoffsandcutcosts.AfternumerousfailedattemptstoimproveMacOS,firstwith
theTaligentprojectandlaterwithCoplandandGershwin,AmeliochosetopurchaseNeXTand
itsNeXTSTEPoperatingsystemandbringSteveJobsbacktoApple.

19972007:Returntoprofitability
TheNeXTdealwasfinalizedonFebruary9,1997,bringingJobsbacktoAppleasanadvisor.OnJuly9,
1997,Ameliowasoustedbytheboardofdirectorsafteroverseeingathreeyearrecordlowstockpriceand
cripplingfinanciallosses.JobsactedastheinterimCEOandbeganrestructuringthecompany'sproduct

lineitwasduringthisperiodthatheidentifiedthedesigntalentofJonathanIve,andthepairworked
collaborativelytorebuildApple'sstatus.]
Atthe1997MacworldExpo,JobsannouncedthatApplewouldjoinMicrosofttoreleasenewversions
ofMicrosoftOfficefortheMacintosh,andthatMicrosofthadmadea$150millioninvestmentinnonvoting
Applestock.OnNovember10,1997,AppleintroducedtheAppleOnlineStore,whichwastiedtoanew
buildtoordermanufacturingstrategy.
OnAugust15,1998,AppleintroducedanewallinonecomputerreminiscentoftheMacintosh128K:
theiMac.TheiMacdesignteamwasledbyIve,whowouldlaterdesigntheiPodandtheiPhone.TheiMac
featuredmoderntechnologyandauniquedesign,andsoldalmost800,000unitsinitsfirstfivemonths.
Duringthisperiod,Applecompletednumerousacquisitionstocreateaportfolioofdigitalproductionsoftware
forbothprofessionalsandconsumers.In1998,ApplepurchasedMacromedia'sKeyGripsoftwareproject,
signalinganexpansionintothedigitalvideoeditingmarket.ThesalewasanoutcomeofMacromedia's
decisiontosolelyfocusuponwebdevelopmentsoftware.Theproduct,stillunfinishedatthetimeofthesale,
wasrenamed"FinalCutPro"whenitwaslaunchedontheretailmarketinApril1999.Thedevelopmentof
KeyGripalsoledtoApple'sreleaseoftheconsumervideoeditingproductiMovieinOctober1999.Next,
ApplesuccessfullyacquiredtheGermancompanyAstarte,whichhaddevelopedDVDauthoringtechnology,
aswellasAstarte'scorrespondingproductsandengineeringteaminApril2000.Astarte'sdigitaltool
DVDirectorwassubsequentlytransformedintotheprofessionalorientedDVDStudioProsoftwareproduct.
ApplethenemployedthesametechnologytocreateiDVDfortheconsumermarket.In2002,Apple
purchasedNothingRealfortheiradvanceddigitalcompositingapplicationShake,aswellasEmagicforthe
musicproductivityapplicationLogic.ThepurchaseofEmagicmadeApplethefirstcomputermanufacturerto
ownamusicsoftwarecompany.TheacquisitionwasfollowedbythedevelopmentofApple's
consumerlevelGarageBandapplication.ThereleaseofiPhotointhesameyearcompletedtheiLifesuite.
MacOSX,basedonNeXT'sOPENSTEPandBSDUnix,wasreleasedonMarch24,2001afterseveral
yearsofdevelopment.Aimedatconsumersandprofessionalsalike,MacOSXaimedtocombinethe
stability,reliabilityandsecurityofUnixwiththeeaseofuseaffordedbyanoverhauleduserinterface.Toaid
usersinmigratingfromMacOS9,thenewoperatingsystemallowedtheuseofOS9applicationswithin
MacOSXviatheClassicEnvironment.
OnMay19,2001,AppleopenedthefirstofficialAppleRetailStoresinVirginiaandCalifornia.[71]OnOctober
23ofthesameyear,AppledebutedtheiPodportabledigitalaudioplayer.Theproduct,whichwasfirstsold
onNovember10,2001,wasphenomenallysuccessfulwithover100millionunitssoldwithinsixyears.In
2003,Apple'siTunesStorewasintroduced.Theserviceofferedonlinemusicdownloadsfor$0.99asong
andintegrationwiththeiPod.TheiTunesstorequicklybecamethemarketleaderinonlinemusicservices,
withover5billiondownloadsbyJune19,2008.

Mainarticle:Apple'stransitiontoIntelprocessors

TheMacBookPro,Apple'sfirstlaptopwithanIntelmicroprocessor,introducedinJanuary2006.

AttheWorldwideDevelopersConferencekeynoteaddressonJune6,2005,JobsannouncedthatApple
wouldbeginproducingIntelbasedMaccomputersin2006.OnJanuary10,2006,thenewMacBook
ProandiMacbecamethefirstApplecomputerstouseIntel'sCoreDuoCPU.ByAugust7,2006,Apple
madethetransitiontoIntelchipsfortheentireMacproductlineoveroneyearsoonerthan
announced.ThePowerMac,iBookandPowerBookbrandswereretiredduringthetransitiontheMac
Pro,MacBook,andMacBookProbecametheirrespectivesuccessors.OnApril29,2009,TheWallStreet
JournalreportedthatApplewasbuildingitsownteamofengineerstodesignmicrochips.Applealso
introducedBootCampin2006tohelpusersinstallWindowsXPorWindowsVistaontheirIntelMacs
alongsideMacOSX.
Apple'ssuccessduringthisperiodwasevidentinitsstockprice.Betweenearly2003and2006,thepriceof
Apple'sstockincreasedmorethantenfold,fromaround$6pershare(splitadjusted)toover$80.InJanuary
2006,Apple'smarketcapsurpassedthatofDell.Nineyearsprior,Dell'sCEOMichaelDellhadsaidthatif
heranApplehewould"shutitdownandgivethemoneybacktotheshareholders."AlthoughApple'smarket
shareincomputershadgrown,itremainedfarbehindcompetitorsusingMicrosoftWindows,accountingfor
about8%ofdesktopsandlaptopsintheUS.
Since2001,Apple'sdesignteamhasprogressivelyabandonedtheuseoftranslucentcoloredplasticsfirst
usedintheiMacG3.ThisdesignchangebeganwiththetitaniummadePowerBookandwasfollowedby
theiBook'swhitepolycarbonatestructureandtheflatpaneliMac.

200711:Successwithmobiledevices
DuringhiskeynotespeechattheMacworldExpoonJanuary9,2007,JobsannouncedthatApple
Computer,Inc.wouldfromthatpointonbeknownas"AppleInc.",becausethecompanyhadshiftedits
emphasisfromcomputerstomobileelectronicdevices.Thiseventalsosawtheannouncementof
theiPhoneandtheAppleTV.Thefollowingday,Appleshareshit$97.80,analltimehighatthatpoint.In
May,Apple'ssharepricepassedthe$100mark.Applewouldachievewidespreadsuccesswithits
iPhone,iPodTouchandiPadproducts,whichintroducedinnovationsinmobilephones,portablemusic
playersandpersonalcomputersrespectively.Furthermore,byearly2007,800,000FinalCutProuserswere
registered.
InanarticlepostedonApple'swebsiteonFebruary6,2007,JobswrotethatApplewouldbewillingtosell
musicontheiTunesStorewithoutdigitalrightsmanagement(DRM),therebyallowingtrackstobeplayedon
thirdpartyplayers,ifrecordlabelswouldagreetodropthetechnology.OnApril2,2007,Apple
andEMIjointlyannouncedtheremovalofDRMtechnologyfromEMI'scatalogintheiTunesStore,effective
inMay2007.OtherrecordlabelseventuallyfollowedsuitandApplepublishedapressreleaseinJanuary
2009toannouncethecorrespondingchangestotheiTunesStore.
InJuly2008,ApplelaunchedtheAppStoretosellthirdpartyapplicationsfortheiPhoneandiPod
Touch.Withinamonth,thestoresold60millionapplicationsandregisteredanaveragedailyrevenueof$1
million,withJobsspeculatinginAugust2008thattheAppStorecouldbecomeabilliondollarbusinessfor
Apple.ByOctober2008,Applewasthethirdlargestmobilehandsetsupplierintheworldduetothe
popularityoftheiPhone.
OnDecember16,2008,Appleannouncedthat2009wouldbethelastyearthecorporationwouldattendthe
MacworldExpo,aftermorethan20yearsofattendance,andthatseniorvicepresidentofWorldwide
ProductMarketingPhilipSchillerwoulddeliverthe2009keynoteaddressinlieuoftheexpectedJobs.The
officialpressreleaseexplainedthatApplewas"scalingback"ontradeshowsingeneral,includingMacworld
TokyoandtheAppleExpoinParis,France,primarilybecausetheenormoussuccessesoftheAppleRetail
Storesandwebsitehadrenderedtradeshowsaminorpromotionalchannel.
OnJanuary14,2009,aninternalmemofromJobsannouncedthathewouldbetakingasixmonth
medicalleaveofabsencefromAppleuntiltheendofJune2009andwouldspendthetimefocusingonhis
health.Intheemail,Jobsstatedthat"thecuriosityovermypersonalhealthcontinuestobeadistractionnot
onlyformeandmyfamily,buteveryoneelseatAppleaswell",andexplainedthatthebreakwouldallowthe
company"tofocusondeliveringextraordinaryproducts".DespiteJobs'sabsence,Applerecordeditsbest

nonholidayquarter(Q1FY2009)duringtherecessionwithrevenueof$8.16billionandprofitof$1.21
billion.
Afteryearsofspeculationandmultiplerumored"leaks",Appleannouncedalargescreen,tabletlikemedia
deviceknownastheiPadonJanuary27,2010.TheiPadranthesametouchbasedoperatingsystemas
theiPhone,andmanyiPhoneappswerecompatiblewiththeiPad.ThisgavetheiPadalargeappcatalog
onlaunch,despiteverylittledevelopmenttimebeforetherelease.LaterthatyearonApril3,2010,theiPad
waslaunchedintheUS.Itsoldmorethan300,000unitsonitsfirstday,and500,000bytheendofthefirst
week.InMayofthesameyear,Apple'smarketcapexceededthatofcompetitorMicrosoftforthefirsttime
since1989.
ApplealsoreleasedtheiPhone4,whichintroducedvideocalling,multitasking,anda
newuninsulatedstainlesssteeldesignthatactedasthephone'santenna.Laterthatyear,Appleagain
refresheditsiPodlineofMP3playersbyintroducingamultitouchiPodNano,aniPod
TouchwithFaceTime,andaniPodShufflethatbroughtbackthebuttonsofearliergenerations.Additionally,
onOctober20,AppleupdatedtheMacBookAirlaptop,iLifesuiteofapplications,andunveiledMacOSX
Lion,thelastversionwiththenameMacOSX.
InOctober2010,Appleshareshitanalltimehigh,eclipsing$300.
OnJanuary6,2011,thecompanyopeneditsMacAppStore,adigitalsoftwaredistributionplatformsimilar
totheiOSAppStore.
AlongsidepeerentitiessuchasAtariandCiscoSystems,Applewasfeaturedinthe
documentarySomethingVenturedwhichpremieredin2011andexploredthethreedecadeerathatledto
theestablishmentanddominanceofSiliconValley.
OnJanuary17,2011,JobsannouncedinaninternalApplememothathewouldtakeanothermedicalleave
ofabsence,foranindefiniteperiod,toallowhimtofocusonhishealth.ChiefOperatingOfficerTim
CookassumedJobs'sdaytodayoperationsatApple,althoughJobswouldstillremain"involvedinmajor
strategicdecisions".Applebecamethemostvaluableconsumerfacingbrandintheworld.InJune2011,
JobssurprisinglytookthestageandunveilediCloud,anonlinestorageandsyncingserviceformusic,
photos,filesandsoftwarewhichreplacedMobileMe,Apple'spreviousattemptatcontentsyncing.
ThiswouldbethelastproductlaunchJobswouldattendbeforehisdeath.IthasbeenarguedthatApplehas
achievedsuchefficiencyinitssupplychainthatthecompanyoperatesasamonopsony(onebuyer,many
sellers)andcandictatetermstoitssuppliers.InJuly2011,duetotheAmericandebtceilingcrisis,Apple's
financialreserveswerebrieflylargerthanthoseoftheU.S.Government.
OnAugust24,2011,JobsresignedhispositionasCEOofApple.HewasreplacedbyCookandJobs
becameApple'schairman.Priortothis,Appledidnothaveachairmanandinsteadhadtwocolead
directors,AndreaJungandArthurD.Levinson,whocontinuedwiththosetitlesuntilLevinsonbecame
ChairmanoftheBoardinNovember.

2011present:PostJobsera
OnOctober5,2011,AppleannouncedthatJobshaddied,markingtheendofaneraforApple.Apple'sfirst
majorproductannouncementbyApplefollowingJobs'spassingoccurredonJanuary19,2012,when
Apple'sPhilSchillerintroducediBooksTextbooksforiOSandiBookAuthorforMacOSXinNewYork
City.[122]
Jobshadstatedinhisbiographythathewantedtoreinventthetextbookindustryandeducation.
From2011to2012,ApplereleasedtheiPhone4SandiPhone5,whichfeaturedimprovedcameras,an
"intelligentsoftwareassistant"namedSiri,andcloudsourceddatawithiCloudthethirdandfourthgeneration
iPads,whichfeaturedRetinadisplaysandtheiPadMini,whichfeatureda7.9inchscreenincontrasttothe
iPad's9.7inchscreen.Theselaunchesweresuccessful,withtheiPhone5(releasedSeptember21,2012)
becomingApple'sbiggestiPhonelaunchwithover2millionpreordersandsalesof3millioniPadsinthree
daysfollowingthelaunchoftheiPadMiniandfourthgenerationiPad(releasedNovember3,2012).Apple

alsoreleasedathirdgeneration13inchMacBookProwithaRetinadisplayandnewiMacandMac
Minicomputers.
OnOctober29,2011,ApplepurchasedC3Technologies,amappingcompany,for$240million,becoming
thethirdmappingcompanyApplehaspurchased.OnJanuary10,2012,Applepaid$500millionto
acquireAnobit,anIsraelihardwarecompanythatdevelopedandsuppliedaproprietarymemorysignal
processingtechnologythatimprovedtheperformanceoftheflashmemoryusediniPhonesandiPads.On
July24,2012,duringaconferencecallwithinvestors,TimCooksaidthathelovedIndia,butthatApplewas
goingtoexpectlargeropportunitiesoutsideofIndia.Cookcitedthereasonasthe30%sourcingrequirement
fromIndia.
OnAugust20,2012,Apple'srisingstockrosethecompany'svaluetoaworldrecord$624billion.Thisbeat
thenoninflationadjustedrecordformarketcapitalizationsetbyMicrosoftin1999.OnAugust24,2012,a
USjuryruledthatSamsungshouldpayApple$1.05billion(665m)indamagesinanintellectual
propertylawsuit.Samsungappealedthedamagesaward,whichtheCourtreducedby$450million.The
CourtfurthergrantedSamsung'srequestforanewtrial.OnNovember10,2012,Appleconfirmedaglobal
settlementthatwoulddismissalllawsuitsbetweenAppleandHTCuptothatdate,infavorofatenyear
licenseagreementforcurrentandfuturepatentsbetweenthetwocompanies.ItispredictedthatApplewill
make$280millionayearfromthisdealwithHTC.
ApreviouslyconfidentialemailwrittenbyJobsayearbeforehisdeath,waspresentedduringthe
proceedingsoftheAppleInc.v.SamsungElectronicsCo.lawsuitsandbecamepubliclyavailableinearly
April2014.Withasubjectlinethatreads"Top100A,"theemailwassentonlytothecompany's100most
senioremployeesandoutlinesJobs'svisionofAppleInc.'sfutureunder10subheadings.Notably,Jobs
declaresa"HolyWarwithGoogle"for2011andschedulesa"newcampus"for2015.
InMarch2013,Applefiledapatentforanaugmentedreality(AR)systemthatcanidentifyobjectsinalive
videostreamandpresentinformationcorrespondingtotheseobjectsthroughacomputergenerated
informationlayeroverlaidontopoftherealworldimage.Laterin2013,AppleacquiredEmbarkInc.,asmall
SiliconValleybasedmappingcompanythatbuildsfreetransitappstohelpsmartphoneusersnavigate
publictransportationinU.S.cities,andPrimeSense,anIsraeli3DsensingcompanybasedinTelAviv.In
December2013,AppleInc.purchasedsocialanalyticsfirmTopsy.Topsyisoneofasmallnumberoffirms
withrealtimeaccesstothemessagesthatappearonTwitterandcan"dorealtimeanalysisofthetrends
anddiscussionshappeningonTwitter".Thecompanyalsomadeseveralhighprofilehiringdecisionsin
2013.OnJuly2,2013,ApplerecruitedPaulDeneve,BelgianPresidentandCEOofYvesSaintLaurentasa
vicepresidentreportingdirectlytoTimCook.AmidOctober2013announcementrevealed
thatBurberryexecutiveAngelaAhrendtswillcommenceasaseniorvicepresidentatAppleinmid2014.
AhrendtsoversawBurberry'sdigitalstrategyforalmosteightyearsand,duringhertenure,salesincreased
toaboutUS$3.2billionandsharesgainedmorethanthreefold.
AttheWorldwideDeveloper'sConferenceonJune10,2013,AppleannouncedtheseventhiOSoperating
systemalongsideOSXMavericks,thetenthversionofMacOSX,andanewInternetradioservice
callediTunesRadio.iTunesRadio,iOS7andOSXMaverickswerereleasedfall2013.OnDecember6,
2013,AppleInc.launchediBeaconacrossits254U.S.retailstores.UsingBluetoothwirelesstechnology,
iBeaconsensestheuser'sexactlocationwithintheApplestoreandsendstheusermessagesabout
products,eventsandotherinformation,tailoredtotheuser'slocation.
AlongsideGooglevicepresidentVintCerfandAT&TCEORandallStephenson,Cookattendeda
closeddoorsummitheldbyPresidentObamaonAugust8,2013,inregardtogovernmentsurveillanceand
theInternetinthewakeoftheEdwardSnowdenNSAincident.OnFebruary4,2014,Cookmet
withAbdullahGl,thePresidentofTurkey,inAnkaratodiscussthecompany'sinvolvementintheFatih
project.CookalsoconfirmedthatTurkey'sfirstAppleRetailStorewouldbeopenedinIstanbulinApril2014.
AnanonymousAppleemployeerevealedtotheBloombergmediapublicationthattheopeningofaTokyo,
Japan,storewasplannedfor2014.AJapaneseanalysthasstated,"ForApple,theJapanesemarketis
appealingintermsofquantityandprice.ThereisroomtoexpandtabletsalesandapossibilitytheJapanese
marketexpandsifApplesmobilecarrierpartnersincrease."AsofJune13,2014,Appleoperatedthree

storesinTokyo.OnOctober1,2013,AppleIndiaexecutivesunveiledaplantoexpandfurtherintothe
Indianmarket,followingCook'sacknowledgmentofthecountryinJuly2013whensalesresultsshowedthat
iPhonesalesinIndiagrew400%duringthesecondquarterof2013.
AppleInc.reportedthatthecompanysold51millioniPhonesintheQ1of2014(analltimequarterlyrecord),
comparedto47.8millionintheyearagoquarter.Applealsosold26millioniPadsduringthequarter,alsoan
alltimequarterlyrecord,comparedto22.9millionintheyearagoquarter.TheCompanysold4.8million
Macs,comparedto4.1millionintheyearagoquarter.OnMay28,2014,Appleconfirmeditsintentto
acquireDr.DreandJimmyIovine'saudiocompanyBeatsElectronicsproduceroftheBeatsbyDr.
Drelineofheadphonesandspeakerproducts,andoperatorofthemusicstreamingserviceBeats
Musicfor$3billion,andtoselltheirproductsthroughApple'sretailoutletsandresellers.Iovinefeltthat
Beatshadalways"belonged"withApple,asthecompanymodeleditselfafterApple's"unmatchedabilityto
marrycultureandtechnology."InAugust2014,anApplerepresentativeconfirmedtothemediathatAnand
LalShimpi,editorandpublisheroftheAnandTechwebsite,hadbeenrecruitedbyApplewithoutelaborating
onLalShimpi'srole.

1Whattypeofbusinessorganisationisit?
1Public.
2Whatisthenameofthebusinessorganisation?
2AppleInc.
3Whereisitlocated?
3Cupertino,California

4WhoarethetopManagementOwnersofthisorganisation?
4ArthurD.Levinson(Chairman),TimCook(CEO),JonathanIve(CDO),LucaMaestri(CFO)
5Whoisthepersoninchargeofitsdaytodayoperations?
5TimCook(ChiefExecutiveOfficer)
6Doesthisorganisationhaveawebsite?Ifyesrecordit.
6Yes.www.apple.com
7DoesthisorganisationsellProduct(s)orService(s)?
7ThisOrganisationsells:
Products

Mac
iPod
iPhone
iPad

Services

iPadMini
AppleTV
AppleWatch
OSX
iLife
iWork
iOS
watchOS
AppleStore
AppleStoreonline
MacAppStore
iOSAppStore
iTunesStore
iBooks
iCloud
AppleMusic

8Findoutthevariouscertificatesoftheorganization.

8Apple Inc. is registered with the United States Copyright Office as a Service Provider (refer to the Digital

Millennium Copyright Act 17 USC 512). If you believe that your work has been copied in a way that constitutes
infringement on Apples Web site, please provide the information below.

To file a copyright infringement notification with us, you will need to send a written
communication that includes the following (please consult your legal counsel or see Section
512(c)(3) of the Digital Millennium Copyright Act to confirm these requirements):

A physical or electronic signature of a person authorized to act on behalf of the owner of an exclusive
right that is allegedly infringed.

Identification of the copyrighted work claimed to have been infringed or, if multiple copyrighted works at
a single online site are covered by a single notification, a representative list of such works at that site.

Identification of the material that is claimed to be infringing or to be the subject of infringing activity and
that is to be removed or access to which is to be disabled, and information reasonably sufficient to permit
the service provider to locate the material. Providing URLs in the body of an email is the best way to help
us locate content quickly.

Information reasonably sufficient to permit the service provider to contact the complaining party, such as
an address, telephone number, and, if available, an electronic mail address at which the complaining
party may be contacted.

A statement that the complaining party has a good faith belief that use of the material in the manner
complained of is not authorized by the copyright owner, its agent, or the law.

A statement that the information in the notification is accurate and, under penalty of perjury, that the
complaining party is authorized to act on behalf of the owner of an exclusive right that is allegedly
infringed.

GlobaltaxespaidbyASI,20092011[353]

2011

Pretaxearnings US$22billion

2010

2009

US$12
billion

US$4billion US$38billion

Globaltax

US$10
million

US$7million

US$4
million

US$21
million

Taxrate

0.05%

0.06%

0.1%

0.06%

9- Identify the various functional areas within the organisation.

9-

Industry

Computerhardware
Computersoftware
Consumerelectronics
Digitaldistribution

Total

10Whattaxesdoesthisorganisationpay?
10ThisorganisationpaysGlobaaltaxesasmentionedabove.
11Whoarethemajorsuppliersofthisorganisation?

18 Final Assembly
Facilities

11

Get detailed information about our 18 final assembly facilities. And download
a list of our top 200 suppliers, including component providers and others
representing at least 97 percent of procurement expenditures for materials,
manufacturing, and assembly of our products worldwide in 2014.

Apple Inc.
Hollyhill Industrial Estate, Hollyhill, Cork, Ireland

Mac

BYD Company
No. 1, BaoPing Road, Baolong Industrial Town, Longgang, Shenzhen, China

Accessories

Compal Electronics Inc.

No. 68-2, Suyuan Road, Nanjing Export Processing Zone (South Area), Nanjing,
Jiangsu, China

iPad
Flextronics
12455 Research Blvd., Austin, TX, USA

Mac

Hon Hai Precision Industry Co. LTD. (Foxconn)

Foxconn Guanlan Technology Park North site, Dashuikeng Village, Guanlan Town,
Baoan District, Shenzhen City, China 518110

iPhone

iPod
Hon Hai Precision Industry Co. LTD. (Foxconn)
Foxconn Longhua Technology Park, No. 2, 2nd Donghuan Road, 10th Yousong
Industrial District, Longhua, Baoan, Shenzhen, Guangdong, China

Mac

iPad

Accessories
Hon Hai Precision Industry Co. LTD. (Foxconn)
No. 888, Hezuo Road, Comprehensive Bonded Zone, Chengdu High Technology
Western Park, Chengdu, Sichuan, China

iPad

Hon Hai Precision Industry Co. LTD. (Foxconn)

No. 1925, Nanle Road, Songjiang Export, Processing Zone, Shanghai, China

Accessories

Hon Hai Precision Industry Co. LTD. (Foxconn)

Comprehensive Bonded Area, East of Zhenxing Road, Zhengzhou Airport District,

Henan Province, China

iPhone

Hon Hai Precision Industry Co. LTD. (Foxconn)

No. 1, Longfei Street, Economic Development Zone, Taiyuan, Shanxi, China

iPhone

Hon Hai Precision Industry Co. LTD. (Foxconn)

Avenida Caminho de Gois 100, Rodovia Anhanguera km 66, Bairro dos Fernandes,
Bloco A, Jundia, So Paulo, Brazil

iPhone

iPad
Inventec Appliances Corporation
No. 789, Puxing Road, Shanghai, China

iPod

Pegatron Corporation
West of Rose Road and South of Bailing Road, Kunshan Economic and Technologic
Development Zone, Kunshan, Jiangsu, China

iPhone

Pegatron Corporation
No. 3668, Xiuyan Road, Kang Qiao Town, Pu Dong New District, Shanghai, China

iPhone

iPad
Quanta Computer Inc.
No. 68, Sanzhuang Road, Songjiang Export Processing Zone, Shanghai, China

Mac

Quanta Computer Inc.

No. 8, Jinzhou Road, High Technology Industrial Park, Changshu Economic
Development Zone, Changshu, Jiangsu, China

iPod

Quanta Computer Inc.

44350 Nobel Drive, Fremont, CA, USA

Mac

Wistron Corporation
No. 168, First Avenue, Kunshan Integrated Free Trade Zone, Kunshan, Jiangsu, China

12Whoarethebankersofthisorganisation?
12Finance

Appleistheworld'ssecondlargestinformationtechnologycompanybyrevenueafterSamsung
Electronics,andtheworld'sthirdlargestmobilephonemaker.Itisalsothelargestpubliclytraded
corporationintheworldbymarketcapitalization,withanestimatedmarketcapitalizationof$446
billionbyJanuary2014.OnFebruary17,2015,ApplebecamethefirstUScorporationtobevalued
atover$750B.AsofDecember2014,Applemaintains447retailstoresincluding182infourteen
countries,aswellastheonlineAppleStoreandiTunesStore,thelatterofwhichistheworld's
largestmusicretailer.AsofSeptember29,2012,itemploys72,800permanentfulltimeemployees
and3,300temporaryfulltimeemployeesworldwide.
InitsfiscalyearendinginSeptember2011,AppleInc.reportedatotalof$108billioninannual
revenuesasignificantincreasefromits2010revenuesof$65billionandnearly$82billionin
cashreserves.OnMarch19,2012,Appleannouncedplansfora$2.65persharedividend
beginninginfourthquarterof2012,perapprovalbytheirboardofdirectors.OnSeptember2012,
Applereachedarecordsharepriceofmorethan$705andclosedatabove700.With936,596,000
outstandingshares(asofJune30,2012),
Thecompany'sworldwideannualrevenuein2013totaled$170billion.InMay2013,Appleentered
thetoptenoftheFortune500listofcompaniesforthefirsttime,rising11placesaboveits2012
rankingtotakethesixthposition.Asof2015,Applehasaround$200billionofcashequivalents,of
which90%islocatedoutsidetheUnitedStatesfortaxpurposes.
13Whoarethecustomersofthisorganisation?
13Customerservice

In1999AppleretainedEightInc.asastrategicretaildesignpartnerandbegancreatingtheApple
retailstores.TimKobeofEightInc.preparedan"AppleRetail"whitepaperforJobs,outliningthe
abilityofseparateAppleretailstorestodirectlydrivetheApplebrandexperienceKobeusedtheir
recentlycompletedworkwithTheNorthFaceandNikeasabasisforthewhitepaper.Thefirsttwo
AppleStoresopenedonMay19,2001inTysonsCorner,Virginia,andGlendale,California.More
than7,700peoplevisitedApplesfirsttwostoresintheopeningweekend,spendingatotalof

US$599,000.AsofJune2014,Applemaintains425retailstoresinfourteencountries.Inadditionto
Appleproducts,thestoressellthirdpartyproductslikesoftwaretitles,digitalcameras,camcorders
andhandheldorganizers.
AmediaarticlepublishedinJuly2013provideddetailsaboutApple's"AtHomeAppleAdvisors"
customersupportprogramthatservesasthecorporation'scallcenter.Theadvisorsareemployed
withintheU.S.andworkremotelyafterundergoingafourweektrainingprogramandtestingperiod.
TheadvisorsearnbetweenUS$9and$12perhourandreceiveintensivemanagementtoensurea
highqualityofcustomersupport.
14Doesthisorganisationhaveanycompetetors?
14Yes,Samsung.
15Istheorganisationtechnoligicallyadvanced?
15Yesitisoneofthemostdevelopedtechnologicalorganisationsoftheworld.
16IstheorganisationcomputerisedandwhichAccountingPackagedotheyuse?
16YesAppleusesQuickBooksforMacandOracleforWindows.
17Doestheorganisationhaveinternalauditors?
17Yes,theorganisationhasabout633auditsby1.5millionworkers.
18Aretheaccountsoftheorganisationpreparedinhouseorpreparedbyexternalcharteredaccountants?
18Theorganisationhasitsaccountspreparedbyinternalauditors.
19Arethefinancialstatementspreparedbytheorganisationbeenaudited?
19Yesin19Countriesthefinancialstatementshavebeenaudited.
20Howmanyworkersareworkinginthisorganisation?
20Thereare1,15,000(asofJuly2015)workersinthisorgaisation.
21Whatmeasuresaretakenbytheorganisationtotakecareoftheenvironmentalissues?
21Environmentalpractices

Energy
FollowingaGreenpeaceprotest,ApplereleasedastatementonApril17,2012committingtoending
itsuseofcoalandshiftingto100%cleanenergy.By2013Applewasusing100%renewableenergy
topowertheirdatacenters.Overall,75%ofthecompany'spowercamefromrenewablesources.
In2010,ClimateCounts,anonprofitorganizationdedicatedtodirectingconsumerstowardthe
greenestcompanies,gaveAppleascoreof52pointsoutofapossible100,whichputsAppleintheir
topcategory"Striding".ThiswasanincreasefromMay2008,whenClimateCountsonlygaveApple
11pointsoutof100,whichplacedthecompanylastamongelectronicscompanies,atwhichtime
ClimateCountsalsolabeledApplewitha"stuckicon",addingthatAppleatthetimewas"achoiceto
avoidfortheclimateconsciousconsumer".

Toxins
FollowingfurthercampaignsbyGreenpeace,in2008Applebecamethefirstlaptopmanufacturerto
eliminatetheinclusionofPVCandBFRsinitsdevices.InJune2007,Applebeganreplacing
thecoldcathodefluorescentlamp(CCFL)backlitLCDdisplaysinitscomputers
withmercuryfreeLEDbacklitLCDdisplaysandarsenicfreeglass,startingwiththe
upgradedMacBookPro.Appleoffersinformationaboutemissions,materials,andelectricalusage
concerningeachproduct.InJune2009,Apple'siPhone3GSwasfreeofPVC,arsenic,BFRsand
hadanefficientpoweradapter.AllApplecomputersnowhavemercuryfreeLEDbacklitdisplays,
arsenicfreeglassandlackPVCcables.AllApplecomputersalsohaveElectronicProduct
EnvironmentalAssessmentTool(EPEAT)Goldstatus.
InOctober2011,ChineseauthoritiesorderedanApplesuppliertoclosepartofitsplant
inSuzhouafterresidentslivingnearbyraisedsignificantenvironmentalconcerns.
InNovember2011,ApplefeaturedinGreenpeace'sGuidetoGreenerElectronics,whichranks
electronicsmanufacturersonsustainability,climateandenergypolicy,andhow"green"their
productsare.Thecompanyrankedfourthoffifteenelectronicscompanies(movingupfiveplaces
fromthepreviousyear)withascoreof4.6/10downfrom4.9.GreenpeacepraisesApple's
sustainability,notingthatthecompanyexceededits70%globalrecyclinggoalin2010.Itcontinues
toscorewellontheproductsratingwithallAppleproductsnowbeingfreeofPVCvinylplasticand
brominatedflameretardants.However,theguidecriticizesAppleontheEnergycriteriafornot
seekingexternalverificationofitsgreenhousegasemissionsdataandfornotsettingoutanytargets
toreduceemissions.InJanuary2012,Applerequestedthattheircablemaker,Volex,begin
producinghalogenfreeUSBandpowercables.