Presented by Sudarshan Kokate M-11- 27 Santosh Sakharle M-11-48 Zeeshan Shaikh M-11-53

APPLES FOUNDERS

Steve Jobs 1955 - 2011

Steve Wozniak

VISION AND MISSION

VISION Man is the creator of change in this world. As such he should be above systems and structures, and not subordinate to them. 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.

About the company

Founded - April 1, 1976 Industry Computer hardware , Computer software, Consumer Electronics , Digital Distribution

Founder(s) - Steve Jobs , Steve Wozniak , Ronald Wayne

Headquarters - Apple Campus, Infinite Loop, Cupertino, California, U.S.

About the company

Number of locations 394 retail stores (Nov 2012) Key People Arthur D. Levinson (Chairman) Tim Cook (CEO) Public Ltd. Company Employees - 72,800 (2012)

Products
Mac iPad iPod iPhone Apple TV Software

Major Competitors
Products PC iPod series iPhone series iPad competitors IBM, Dell, Acer, HP, Lenovo Samsung , SanDisk , Creative, Microsoft Zune, Napster Amazon.com, Napster Samsung, Google, Motorola Amazons kindle, Dell, HP, Samsung

Operating system

Microsoft windows, Android OS, Linux

SWOT ANALYSIS
Strengths
Well recognized ,product differentiation unique design, easy to use products 4th largest player in the global mobile phone market Strong brand image, Brand stability ,High brand loyalty Robust financial performance Focused R&D driving innovation Holds 5% market share in mobile phone market 18.5% market share of global smartphone market Complete hardware/software package

Weaknesses
Patent infringement lawsuit may affect financial condition and operating results -January 2010, Nokia filed law suit for patent infringement with US ITC Product recalls, defects may harm reputation and as significant warranty and other expenses - 2010, antennae problems in iPhone 4- replacements free of charge

SWOT ANALYSIS
Opportunities
Strong growth in smartphone and tablet markets to boost Apples revenues Robust outlook for mobile advertising market provides growth opportunity Shipment of smartphones expected to be 850 million by the end of 2013 iPhone business continues to increases

Threats
Rising popularity of Google Android may affect its market share

350,000 Android smartphones are activated daily, 150,000 iPhone activated daily
Steve Jobs was innovative and a visionary for Apple. His death may affect further developments in Apple Very reliant on specific suppliers and component providers Intense competition Highly dependent on consumer purchases

Strongest player in mobile apps market (350,000 apps) Mobile advertising market is forecast to reach approximately $25 billion by 2015 Increasing demand of online music and other like cloud based services.

 Reportedly, Apple is one of the most successful technology companies in the world. Apple business strategy focuses on research & development in order to compete in technology world. Based on Forbes (April 2012), Apples market capitalization worth $546 billion, which is: Almost twice of Microsoft ($273.5 billion) More than twice of IBM ($238.7 billion) More than twice of General Electric ($213.7 billion) More than twice of Wal-Mart ($208.4 billion) More than twice of Google ($203.2 billion) More than thrice of Coca Cola ($158.8 billion)

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 Apple is the worlds second largest Information technology by revenue after Samsung Electronics , and the worlds third largest mobile phone maker after Samsung and Nokia. Fortune magazine named Apple the most admired company in the United States in 2008. It is the second-largest publicly traded corporation in the world by market capitalization, with an estimated value of US$414 billion as of January 2013.

Recent Acquisitions

August 1, 2011, Apple acquired C3 Technologies US$267

On 20th December 2011, acquired Anobit for $390 million

February 23, 2012, acquired Chomp for US$50 million

Recent Acquisitions (cont)

C3 Technologies A 3D mapping company Based in Sweden, new name Apple Sputnik division 3 employees of C3 have joined Apple Inc CEO Mattias Astrom CFO Kjell Cedestrand PM Ludrig Emgard Anobit
Israeli manufacturer of flash memory founded in 2006 Hq -Herzliya, Israel Anobit provides flash storage solutions for enterprise and mobile markets, based on its proprietary MSP (Memory Signal Processing) technology. Its solutions are designed to improve the speed, endurance and performance of flash storage systems while driving down the cost. Apple relies on the companys solutions for the iPhone, iPad and MacBook Air product lines to boost memory perforamnce

Chomp is a search engine that finds the app you want Founded in 2009 Hq- San Francisco, USA Apple has acquired Chomp, a search engine designed to find and discover apps for iPhone, iPad and Android.

Financial Aspects of Apple :

Revenue - US $ 156.508 billion (2012) Operating income - US $ 55.241 billion (2012) Net income - US $ 41.733 billion (2012)

Total assets - US $ 176.064 billion (2012)

Total equity - US $ 118.210 billion (2012)

Gross Profit Margin

COGS Gross Profit

40.14%

39.38%

40.48%

59.86%

60.62%

59.52%

2009

2010

2011
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Ratio Analysis - Leverage

120,000 100,000 80,000 74,100 111,939

72,183

60,000
47,048 40,000 31,187 46,708

20,000
0 0 0

2009
Total Tangible Assets

2010
Total Debt Effective Equity

2011

Apple is a company with no debt reported at the end of their financial year. Most of their liabilities were in current ones which were mainly contributed trade creditors, accrued expenses, and deferred revenue. Non-current liabilities consisted of non-current deferred revenue, deferred tax liabilities, and other non-current liabilities.
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Ratio Analysis Profitability

Apple's Profitability 2009-2011
Total Sales 100% GP (%) 100% EBITDA (%) NPBT (%) NPAT (%) 100%

Apples Profitability: GP was steadily maintained at around 40% with slight decline in 2010.

40%

39%

40% 30% 28% 21%

30% 28%
19%

33% 32%

24%

Operating and other expenses was managed efficiently. Thus, EBITDA, NPBT and NPAT remained healthy over the past 3 years. Business is seasonal with 1Q and 4Q sales higher than the rest.

2009 GP (%) 40% 30% 28%

2010 EBITDA (%) NPBT (%) 39% 30% 28% 21%

2011 NPAT (%) 40% 33% 32% 24%

19%

Volatility of revenue stream was low given their outstanding product and service quality.

2009

2010

2011

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NASDAQ Stock Exchange

- AAPL

- Price - $448.97
- Volume traded - 17,820,000

- Data as of 02/26/13

Geographic Revenue Breakdown 2012

Sales

Asia pacific 29%

Americas 38%

Japan 8%

Europe 25%

Desktop iPhone 6% 3% 0%

Portable iPad 4% 3% 8%

iPod Other Hardware

Music Sevices Other Software 3% 2%

Sales by Products: iPhones contribution to total sales increased significantly due to expansion of resellers and contract with cellular network carriers. iPads sales increased dramatically too since its introduction in 3Q 2010.

19%

30%

39%

9%

43%

19%

8%

13% 6% 22% 17% 14% 10% 10% 7%

Sales of computer (both desktop and portable) increased slightly, and its percentage to total sales decreased moderately.
Sales of iPod dropped in 2011, net sales per iPod increased due to a shift to iPod Touch from other iPod product mix.

6%

2009

2010

2011

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Indias Market Strategy

Apple does not run branded stores in India because local regulations make that difficult. Until now, Apple has sold the iPhone through Indian telecom providers, who bundle the phones with data services. As Indian telecom companies dont subsidize the cost of iPhone, as in the U.S., these sales have been limited. This distribution model, coupled with the iPhones high cost, has left Apples market share in India in the doldrums. Distribution has been limited mainly to large towns. Apple has used distributors in the past for products like the iPad, but did not do so for the iPhone as it was concerned that paying third-party distributors would eat into its profit margins on a key product.

 The company saw higher potential in countries other than India, largely because of the high cost of distributing products here. The companys decision to go through distributors perhaps shows the company is willing to see its margins decrease for now in an attempt to get a bigger toe-hold in India for the iPhone

The move could help make the iPhone more available but will have an uncertain impact on sales because the main deterent to Indian consumers is the high price of the device.

Apples Green initiatives

Recycling : Product recyclability Longer-lasting batteries

Facilities : Clean energy

Manufacturing : Material use Toxic substance removal Environmentally conscious materials. Transportation : Smaller packaging Product Use: Energy efficiency ENERGY STAR qualification

Thank You