Think Different

Apple Inc. Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977.
wholly-owned subsidiaries design, manufacture, and market - Personal Computers - Portable Digital Music Players - Mobile communication Devices - Sell a variety of related Software, Services, Peripherals and Networking Solutions. Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wojniak

CEO Tim Cook

VISION
An Apple on every desk

MISSION Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and internet offerings.

The company's best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. Its software includes the Mac OS X operating system; The iTunes media browser; The iLife suite of multimedia and creativity software; The iWorksuite of productivity software; Aperture, a professional photography package;

Present Position
Pace
Apples Profit in Q4 2011 is 13.1 $ Billion is equaled their Revenue in Q4 2010. The revenues from just iPhone is greater than total revenues of Microsoft. A company this big is not supossed to be able to double revenue year on year. Nor are they supposed to more than double profit BUT APPLE DID BOTH

Cash Counter
97.6 $ Billion in cash and equivalent can buy entire RIL and 90% of ONGC with less than half of its cash and equivalent.

 Competition
Apple sold three times as many ipads as amazon sold kindle fires and at twice the price

Peripheral Is Big Too

iTunes store of Apple alone generated 50 % more revenue than all of Yahoo did last Quarter.

35 Years old Apples Revenue at end of 2011 is 108 $ Billion with 13 $ Billion quarterly Profit . Wal-Mart's Revenue at the end of the 2011 is 105 $ Billion revenue and 3 $ Billion quarterly Profit . 100 Years old IBMs Revenue at end of 2011 is 106 $ Billion

Apple in the Digital Age

 In 2001, Apple sales fell by a third and the company reported an operating loss of $350 million some 6% of sales. In the same year the iPod was launched and Apples move into the Mainstream consumer market.

Sales have increased from $5bn in 2001 to $65bn in 2010 and rest is History

So Apple is Good at ?
Innovation Customers need Quality Product Design Brand Creation Technology

APPLE IN 2001
Critical year for apple. U.S economy in recession. Operating income had turned from profit of $522 million to a loss of $344 million. Sales of Apple declined from $8 billion in 2000 to $5.7 billion in 2001 Power Mac sales were down by 35%. Profit generating Power Mac was at the wrong side of the product life cycle curve.

On other hand i-Mac sales were down too by 35%.

Should Apple develop further into consumer market?

Launch of i-Pod
Music on the move had been pioneered by Sony with Walkman and Discman. These players offered offered great storage capacity of 100MB but at a price. Early players in the market were Saehan, Pontis and Diamond Rio.

 Why Music, Because we love music and its always good to do something you love"

 Pontis ceased production in 2002 and Diamond Rio filled for bankruptcy in same year. Apple wanted to tap into the market for consumer digital devices. Apples design could improve the product offer in a fragmented market . Key success factors for market were identified as design, size, capacity, battery life, software and download facility.

 First i-Pod launced in 2001 with 5Gb Toshiba Hard drive a capacity for 1000 tunes at a price of $399 followed by a 10Gb version in the same year .

Apple followed premium price entry strategy. In 2002 Apple had 33% of Hard drive market. In 2003,the i-Tunes store opened.

 Apple now had 64% of Hard drive market and its sales doubled while rest of the market did not grow at all. In 2004 Apple had 82% of the hard drive market with a sales of 2 million in winter quarter while competitors sold less than half million units combined . I think you can draw parallels with the computer: here ,here,too,Apple was at first in an extremely strong position with its Macintosh and graphic possibilitiesas with i-pod todayand then let its position slip.

 In 2006 Microsoft launched Zune which had 30Gb of memory, priced at $299 with built in FM-Radio.

Successful Launch as they acquired 9% of digital music player market in U.S in first week of sales itself. By 2008 the brand could just claim 4% of market share.

Brand Development and Product Extension

2005-2006 Launced I-pod nano with 2Gb and 4Gb version. http://cdn.yourdigitalspace.com/wpcontent/uploads/First-Generation-iPodnano.jpg

 Also 5th generation i-pod appeared with 30Gb and 60Gb capacity and video playback capability. i-pod shuffle was also launched with with 512Mb and 1Gb memory priced at $99 and $149 respectively.

 In 2007 fist i-pod touch was launced.

By now apple had complete array of products ranging from $99 shuffle to the top end 80Gb i-pod priced at $399. In mid 2010 Apple introduced Face time feature for i-pod touch.

 The first iPhone was launched in 2007 but almost before you could fill the address book, the iPhone 3G was on the way in 2008 The iPhone 2G only supported WiFi, GSM, and Bluetooth. The iPhone 3G introduced third generation speeds to the original flagship model.
Better experience surfing, watching Youtube videos, and Downloading data

The iPhone 3GS launched in 2009 complete with video camera. More features, much faster and with the new iPhone 3.0 software.

 In 2010, Apple introduced the iPhone 4, longer battery life, extended talk time, better camera with 5 megapixels. In 2008 revenues were $1.8 billion, by 2010 revenues increased to $25 billion.
The iPhone had captured some 25% of the US smart phone market challenging the RIM Blackberry and pushing Nokia.

Apple Kaizen mantra. Constant improvement one infinite loop

 Apple revealed the iPad in a further extension of the digital hub strategy in Jan 2010. Computer with no physical keyboard but a touch screen device offering internet connectivity with WiFi and on the move 3G capability. Enables users to
Read Newspapers, Books and Magazines, e-mails Play music, store photos and watch videos as well as download contains from iTunes store.

 In 2010, Apple also launched the iBook store with the capability to down load e-books and the opportunity to use the iPad as an e-book reader. The launch of the Apps store brought some 140,000 applications and games to the iPad owner including a Kindle App.

 iPod and iPhone halo effect

iPhone and iPod are many consumers first exposure to Apple, leading them to purchase other Apple products

Market Segmentation
Business and Creative Professionals
Apple core product strengths were in the areas of CAD, Computer Aided Design and DTP, Desk top Publishing.

Education High-End consumers. In 2000, some 75% of sales were Business and Professional markets. By 2010, the situation had reversed with approximately 70% of sales in consumer markets.

 Make the customer king Make the product king Break the marketing mold

 Apple is market driven - Understands market dynamics Has strong design ethos - Has strong Kaizen instinct Has strong leadership - direction. Premium price entry program - Price adjustment follows iPod family - product extension Great software and support for the Digital hub

Having created a vision of the Digital Hub, the product offer has been extended to along a Golden Staircase to fulfil mission and strategy.

Apple Differentiation Strategy

1. Hardware and Software Integration

Windows computers are made by dozens of different manufacturers, and Microsoft cannot control either the minimum baseline of the hardware, or the variety of components which may be included in a computer intended for Windows use. Apple, on the other hand, has complete control over the variety and range of Macintosh hardware, which minimizes end-user technical support issues and guarantees that every Macintosh owner will have a common hardware platform creating their user experience.

2. Design Quality

Apple computers and electronics are frequently designed to be ahead of the curve of contemporaneous public opinion.
The iMac line of computers was the first home computer to omit a floppy drive. Even failed Apple products show innovative design planning, such as the Macintosh Cube, a physically small desktop computer which paved the way to the more successful Mac mini-line.

3. Targeting High Profit Margins Apple's cheapest computers and electronics are consistently in the midrange, but include sufficient hardware and software features to ensure a high quality user experience.

iThanks