Apple Inc.

Team Members: Dimitriadis Savvas Gazis Nikolaos Koukou Katerina Teterina Xenia

Case Abstract
Apple Inc., originally Apple Computer, Inc., is an American multinational corporation headquartered in California that designs, develops, and sells consumer electronics, computer software and personal computers. The company was founded on April 1, 1976, and incorporated on January 3, 1977. The word "Computer" was removed from its name on January 9, 2007, to reflect its shifted focus towards consumer electronics. Its bestknown hardware products are the Mac line of computers, the iPod, the iPhone and the iPad. Its software includes the OSX and iOS operating systems, iCloud, the iTunes media browser, the iLife and iWorkcreativity and production suites.
Apple is the world's third-largest mobile phone maker after Samsung and Nokia. Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012. However, the company has received widespread criticism for its contractors' labor practices, and for its environmental and business practices. As of August 2012, Apple has 393 retail stores in fourteen countries as well as the online Apple Store and iTunes Store. It is the largest publicly-traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of September 2012. The Apple market cap is larger than that of Google and Microsoft combined. As of September 24, 2011, the company had 60,400 permanent full-time employees and 2,900 temporary full-time employees worldwide; its worldwide annual revenue in 2010 totaled $65 billion, growing to $108 billion in 2011.

Vision Statement
We believe that we are on the face of the earth to make great products and that's not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and 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. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don't settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when we're wrong and the courage to change. And regardless of who is in what job those values are so embedded in this company that Apple will do extremely well.
Timothy D. Cook Apples CEO

Mission Statement

Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.

EFE Matrix
Opportunities 1 2 3 4 5

Global smartphone market is on fire

Global smartphone market is on fire Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple Possible ventures with other companies Downloadable music and MP3 players are highly marketable

The demand for tablets is The online computers sales is rapidly increasing increasing over the years. 6 The laptop and tablet market growth is high Globally, tablet shipments are 7 Constant growth of PC and mobile phone industry expected to touch 150 million 8units Huge untapped market to expand to by 2013. Apple launched 9the Growing demand for internet iPad in January 2010. music In and other online programs 0,02 2 0,04 (cloud based FY2010, the services) iPad generated $5 billion in revenues and advertising market 10 Robust outlook for mobile 3 0,15 The0,05 laptop and tablet showed unit sales of 7.5 segment. 11 Strong growth in smartphone 0,07 3 0,21 market growth is high million. In the quarter 12 Open market in first gaming consoleof industry to compete with PS3 and 0,01 1 0.01 2011, iPad sales were 7.33 Xbox million. 13 Growing market of Green and energy efficient products 0,01 2 0.02

The worldwide smartphones market segment is forecast to Weight Rating Weighted record strong growth in Score coming years. The shipments for smartphones 0,10 4 are expected 0,40 to exceed 400 million globally. 4 0,20 The0,05 number is expected to reach approximately 850 0,02 2 0,04 million by the end of 2013. 0,02 2 0,04 Apple is the third largest 0,04 3 0.12 player in the smart phone 0,07 segment 3 in the 0.21 market US since launching mobile 0,05 4 its first 0.20 device, 0,07 iPhone, 3 in 2007. 0,21

Increasing popularity of Android may affect the attractiveness of Apples iOS affecting the Threats Weight Rating Weighted market share of Apple. The Google Android Score operating system (OS) for smartphone is 1 Economic recession can have a significant negative effect on the rapid popularity. With the acquisition gaining 0,09 2 0,18 company due to higher prices of its products of Android Inc. in 2005, and the subsequent Rising popularity of Google launch of Googles mobile OS Android 2Android Rising popularity of Google Android and Windows ecosystems in the competitive landscape of and Windows ecosystems changed 0,06 2 0,12 the mobile and tablet space in the mobile and tablet space smartphone business globally. Moreover, the online application store for Android 3 Intense competition from Dell, HP, Sony and Toshiba applications Android Market is growing at a 0,03 2 0,06 rapid pace. The Android Market currently 4 Dependence on specific suppliers 0,02 2 0,04 offers approximately 250,000 apps, compared to 350,000 offered App Store, 5 Companies not seeing Apple as compatible with their software 0,04 by Apples 1 0,04 although Android has been a late entrant in the 6 Downloading free music from other online source without paying market. 0,02 1 0.02 Apple several legal costis is involved common itin may impact the iTunes sales including lawsuits alleging 7actions, Microsoft launched Microsoft Windows 7 and 8 which are gaining 0,05 2 0.10 patent infringement and antitrust market share violations. Many of the suits are from 8 The growing tablet market is competing with ipad Apple is involved in several smaller companies, but notable plaintiffs 0,02 3 0,06 include Nokia. These lawsuits present a legal actions 9threat Apple is involved in several legal actions 0,06 3 0,18 because of the possibility of 10 High product substitution unfavorable judgments and the ongoing 0,03 2 0,06 costs associated with legal defenses.
TOTAL 1,00 2.71

Apple has a strong focus on research and development (R&D) as continual Strengths Weight Weighted investment in R&DRating is critical for the Score development and enhancement of 1 iTunes Music Store is an excellent source of revenue, especially with innovative the products and technologies. In 0,03 3 0,09 iPod and the accessibility on Windows platform. addition to evolving its PCs and related 2 Apple Computers have good brand loyalty and image by setting high solutions, the company continues to 4 0,36 capitalize 0,09 on the convergence of the PC, standards for quality and use. Strong Research & Development digital consumer electronics and mobile 3 Partnership with Intel Computers in 2006 Present (Intel's Department driving innovation, creating communications and 0,08 0,04 by creating 2 microprocessors) its own software (free of viruses) and refining innovations, such as hardware 4 Strong Research & Development Department driving innovation, creating the iPod, iPhone, iTunes Store, Apple 0,10The companys 4 0,40 its own software (free of viruses) and hardware TV and iPad. R&D expenditure was $1,782 million, $1,333 5 Creators of high tech technology such as iphone or imac 0.07 4 0.28 million and $1,109 million in FY2010, 2009 and 2008, respectively. The 6 Holds 5%brand marketimage share and is 4th largest player in mobile phone market. Strong provides an edge over 0.08 3 development 0.16 companys research and regional and global competitors. The spending is focused on 7 18.5% market share of global smartphone market 0.09 3 further 0.27 Apple brand is well recognized among developing its existing Mac line of 8 Robust performance. (strengthens investors confidence and most financial consumers. Apples products enjoy a personal computers. provides capital future growth avenues) high level of for brand awareness and brand 0.08 4 0.32 Low debtmore maneuverable. recognition throughout all its markets. This is evident with the rapid sales of new 9 Entering into new product lines ex: Laptops to iPhones and iPads 0,03 3 0,09 Apple launches. For instance, net sales of iPad distribution and related products and services 10 Excellent network globally to make its products accessibleApple Computers have good brand 0.04 4 setting high 0.16 loyalty and image by was $5 online andbillion stores and unit sales of iPad were standards for quality and use. 7.5 million during 2010

IFE Matrix

11 The iOS has given it a lead as compare to its competitors

0.02

0.06

Weaknesses Weak relationship with Microsoft. (low product 1 compatibility) 2 3 Apples market share is far behind from major competitor Microsoft. Its high priced products and accessories make them inaccessible to many of customers

Weight

AS

TAS

AS Patent TASinfringement AS TAS

Patent infringement.
0,05 0,07 0,04 0 0 3 0,00 0,00 0,12 0 3 2

It has less presence in B2B market, as compare to its competitors like Dell and HP. It can be seen that Apple 4 mainly focuses on B2C so its losing large chunk of market 5 Comes without expandable memory and the battery is fixed (in mobile products) Coming off of the failure of two items apple tv and mac mini

0,03

0,00

0,01 0,04 0,02 0,02 0,04 0,01

0 3 3 1 0 2

0,00 0,12 0,06 0,02 0,00 0,02 2,36

0 1 0 0 0 0

6 Former CEO Steve Jobs died 7

Apples market share is 8 Patent infringement. far behind from major Not shareholder friendly (did not declare or pay cash 9 competitor Microsoft.
dividends in either 2011 or 2010) 10 Product recalls. TOTAL

lawsuit may affect financial condition and 0,00 0 0,00 operating results. The company is involved in 0,21 2 0,14 legal complaints relating to patent infringement. 0,08 4 0,16 For example, in January 2010, Nokia filed a revised 0,00 suit 0 against 0,00 Apple with the US International Trade Commission 0,00 0 (ITC), 0,00 alleging that Apple has 0,04 0 0,00 infringed Nokias patent s in0,00 almost0all of its 0,00 mobile phones, 0,00 music 0 0,00 portable players, and0,00 computers. 1 0,04
0,00 2,10 0 0,00 3,02

Competitive Profile Matrix

CPM Critical Success factors Apple Microsoft Dell Samsung Nokia

Weight Rating Score Rating Score Rating Score Rating Score Rating Score 0,10 0,12 0,10 0,11 0,07 0,09 0,11 0,08 0,10 0,06 0,06 4 4 4 3 3 2 2 4 1 4 4 0,40 0,48 0,40 0,33 0,21 0,18 0,22 0,32 0,10 0,24 0,24 3 4 2 4 4 3 4 3 3 4 3 0,30 0,48 0,20 0,44 0,28 0,27 0,44 0,24 0,30 0,24 0,18 2 2 2 2 2 3 2 4 3 2 3 0,20 0,24 0,20 0,22 0,14 0,27 0,22 0,32 0,30 0,12 0,18 2 2 3 4 3 4 3 3 3 2 2 0,20 0,24 0,30 0,44 0,21 0,36 0,33 0,24 0,30 0,12 0,12 3 2 3 3 3 4 3 2 4 1 3 0,30 0,24 0,30 0,33 0,21 0,36 0,33 0,16 0,40 0,06 0,18

Store Locations Financial profit Consumer loyalty Market penetration Advertising Product variety Market Share Product quality Price competitiveness e-commerce Employee dedication

Totals

1,00

3,12

3,33

2,41

2,86

2,87

Financial Ratio Analysis

Apples Annual Report indicates that its business industry is Computer Hardware and its sector is technology. Yet, many analysis consider Apple as being a direct competitor with other hardware manufacturers such as Hewlett-Packard and even Google, yet there is no comparison between Apple and other phone-related manufacturers or devices, through 38% of its business is driven by iPhone and related products. So, such competitors like Samsung or Nokia, should be strongly considered due to the fact that they run its businesses in the same field. This usually happens and is always a challenge when companies have wide product lines with a different marketing mix in each line, like Apple which both belongs to the industry of Computer Hardware and Telecommunication Services.

Financial Ratio Analysis

Ratios Market Cap % Qtrly Rev Growth $ Revenue %Gross Margin $ EBITDA %Operating_Margin $ Net Income $ EPS Employees Price / Earnings Dividend yield%

Apple 498.3 82.70 108.249 39.07 36.02 29.02 25.92 27.68 46,600 11.9 1.0

Google 174.48 26.60 31.12 64.97 12.16 34.35 8.85 27.29 26,316 20.1 N/A

HP 89.80 3.60 127.16 24.14 18.25 10.49 9.12 3.92 324,600 -4.9 3.9

Industry 320.58 24.30 87.45 39.07 26.73 31.92 N/A 20.99 100,300 13.6 1.3

Financial Ratio Analysis

Ratios Revenue Net-sales(mil) Gross margin % Operating income Operating margin % Net income Earnings per Share Apple 108,249 40.5 33,790 31.2 25,922 27.68 Microsoft 69,943 77.7 27,161 38.8 23,150 2.69 Dell 61,494 18.5 3,433 5.6 2,635 1.35 Samsung 86,860 25.2 8,413 9.7 7,210 48.03 Nokia 30,376 29.3 -0,843 -2.8 -0,915 -0.24

Dividends
Net margin % Asset Turnover (Avg) Return on Assets Financial Lvrg (Avg) Return on equity Return on invested Capital Current ratio Quick ratio Receivable turnover (efficiency

N/A
23.95 1.13 27.07 1.52 41.67 41.67 1.61 1.35 19.9

0.61
33.10 0.72 23.77 1.90 44.84 38.23 2.60 2.35 5.00

N/A
4.29 1.70 7.29 4.97 39.31 22.44 1.49 1.26 9.97

N/A
8.3 1.08 8.93 1.32 11.89 11.88 1.46 0.72 7.60

0.26
-3.01 1.03 3.09 3.05 -8.87 -6.24 1.46 1.04 5.24

ratio)

Financial Ratio Analysis

Ratios APPLE DELL HP SAMSUNG GOOGLE INDUSTRY Profitability Ratios Gross Margin (%) 40,05 29,02 27,07 41,67 35,6 1,5 1.61 1,35 20.32 22,3 5,6 6,9 41,86 6,4 4,5 1,49 1,26 7.44 24,14 10,49 -4,7 19,8 -3,1 25,2 9,7 8,93 11,89 N/A 64,97 34,35 11,8 15,5 28,1 1,3 3,9 3,7 128.99 39,07 31,92 8,03 23,9 16,75 2,75 1,9 1,5 38.9

Operating Margin (%)

Return on Assets (%) Return on equity (%) EBIT Margin (%) Leverage Current Ratio Quick Ratio Working Capital per share ($) Earnings per share Receivable Turnover Assets Turnover Interest Coverage

3,7 N/A Liquidity Ratios 1,1 0,6 2.7 Other Ratios 1,46 0,72 N/A

27.68 19.9 1.1 15.6

3.49 9.97 1.4 15.6

3.21 6.1 1.0 N/A

48.03 7.60 1.2 N/A

6.53 7.0 0.6 161.1

15.5 10.1 1.06 64

Financial Ratio Analysis

The table below shows some financial statement data for Apple during the last five years
Financial Year Earnings per share ($)
50

2012 44.15
45 40 35

2011 27.68 23.95 41.67 22.28 2.92 12.31 4.12 82.64

2009

2010 15.15 21.48 35.28 18.64 3.20 15.10 4.37 52.31

2011

2009 6.29 19.19 31.27 17.34

Return on Equity

2008 9.08 14.88 27.19 12.22 4.41 30.17 6.81 23.74 34.3 6,271 19.3 1.00

Trend of Apples basic ratios during 08-12

26.67 42.84 23.70
30
25 20 15

Profit Margin (%) Return on equity (%) Return on Assets (%) Price per sales Price per Earnings Price to book Value Ratio Book Value per share ($) Gross Margin (%) Operating Income ($ mil) Operating Margin (%) Assets Turnover

3.50 11.89 4.16

2.5 Gross Margin

Operating Margin

19.04 Return on Assets 3.39 35.32 40.1 11,744 27.4 0.99

10 5 0

126.1
2008

43.9

40.5 2010 33,792 31.2 1.13

34.4 2012 18,387 28.2 1.06

55,241 35.3 1.07

SPACE MATRIX
Below are provided the most important determinants of the organization overall strategic position.
Internal Analysis Financial Position (FP) Liquidity Earnings per share Sales Revenues Return on equity 7 6 7 7 5 Stability Position (SP) Technological changes Price elasticity of demand Competitive pressure Barriers to entry into Market -1 -6 -3 -4 External Analysis

Financial Position (FP) Average

5,8

Stability Position (SP) Average

-3,5

Liquidity: according to the current ratio Apple is one of the most reliable corporations within the Industry with minimum investment risk Earnings per share: the trend during the last years shows that Apple from 2008 to 2012 this has been increased four times. In comparison to the Industry this ratio shows that Apple is extremely shareholders friendly corporation, which indicates great internal strength Sales: is far better from all Apples competitors Revenues: Apples consolidated income statements and balance sheets note that Apples revenues increased a whopping 52 percent in 2010, while its net income increased 70 percent. Also, notice that Apple has zero long-term debt on its balance sheet Return on equity: Apple is second among its competitor on return on equity

Technological changes: the Company has been an innovator in the area of computer hardware and telecommunications since its recovery Price elasticity of demand: high prices of Apples products is a major weakness Competitive pressure: the companies which Apple is competing with, are urban corporations with dynamic strategies, both in computer hardware & telecommunication sector Barriers to entry into market: the extreme competence advantages of the already existing companies in computer hardware sector, makes it very hard for new companies to enter the market

SPACE MATRIX
Below are provided the most important determinants of the organization overall strategic position.
Internal Analysis Competitive Position (CP) Market Share Product Variety Product quality Customer loyalty Control over suppliers and distributors Competitive Position (CP) Average -6 -2 -1 -1 -3 -2,6 Industry Position (IP) Average 5,5 Industry Position (IP) Profit Potential Growth Potential Financial Stability Resource Utilization 6 6 5 5 External Analysis

Market share: Apple has a very low market share according to S&P industry survey for 2009 Product variety: Apple offers a wide range of technological products, including iPads, iPods, iPhones, iTunes, PCs and more. Apple is perhaps the best known first mover company ever, as the firm has a 35-year history of being the first to introduce blockbuster, successful new products. Product quality: Apple meanly focuses on its products quality using the most recent technologies and innovations Costumer loyalty: The i-halo effect has been synonymous with Apple for the last years. In basic terms its definition is customers who buy an i-product, become hooked on Apples products and their ease of use. Control over suppliers and distributors: Apple already has a very efficient network of distributors and suppliers and intents to develop it further

Profit potential: today Apples profit potential is at the same level as industry but according to the trend observed from 2008-2012 it shows that Apple will soon exceed the industry Growth potential: demand in computer hardware products is expected to increase Financial stability: Apple has minimum long-term debts and liabilities that shows its financial stability Resource Utilization: Apple makes reasonable management of its human and material resources

SPACE MATRIX
After illustrating the SPACE Matrix it is obvious that the company should follow aggressive strategies. This means that Apple should implement backward, forward, horizontal integration, as well as market penetration, market development, product development and diversification (related or unrelated). XX 5,5 + (-2,6) = 2,9 YY 5,8 + (-3,5) = 2,3

(X,Y) = (2,9 , 2,3)

QSPM: Quantitative Strategic Planning Matrix It determines the relative attractiveness of various strategic alternatives

Acquire Red Create a new Develop new Hat Linux game console product lines in or/and Maxtor China and (strong R&D or Western India department) Digital

Opportunities
1 Global smartphone market is on fire 2 Increase in worms and viruses on PCs so the antivirus solution can be developed by Apple

Weight
0,10 0,05 0,02 0,02

AS
0 0 4 2

TAS
0,00 0,00 0,08 0,04

AS
0 4 3 0

TAS
0,00 0,20 0,06 0,00

AS
2 0 1 0

TAS
0,20 0,00 0,02 0,00

3 Possible ventures with other companies 4 Downloadable music and MP3 players are highly marketable

5 The online computers sales is rapidly increasing

6 The laptop market growth is high 7 Constant growth of PC and mobile phone industry

0,04
0,07 0,05

0
0 0

0,00
0,00 0,00

3
3 1

0,12
0,21 0,05

0
2 4

0,00
0,14 0,20

8 Huge untapped market to expand to

9 Growing demand for internet music and other online programs (cloud based services)

0,07
0,02 0,05 0,07 0,01 0,01

2
3 0 0 4 0

0,14
0,06 0,00 0,00 0,04 0,00

0
0 0 0 0 0

0,00
0,00 0,00 0,00 0,00 0,00

4
0 0 2 0 1

0,28
0,00 0,00 0,14 0,00 0,01

10 Robust outlook for mobile advertising market 11 Strong growth in smartphone segment. 12 Open market in gaming console industry to compete with PS3 and Xbox

13 Growing market of Green and energy efficient products

QSPM: Quantitative Strategic Planning Matrix It determines the relative attractiveness of various strategic alternatives

Acquire Red Create a new Develop new Hat Linux game console product lines in or/and Maxtor China and (strong R&D or Western India department) Digital AS 2 TAS 0,18 AS 3 TAS 0,27 AS 4 TAS 1

Threats 1 Economic recession can have a significant negative effect on the company due to higher prices of its products Rising popularity of Google Android and Windows ecosystems in the mobile and tablet space

Weight 0,09

0,06 0,03 0,02 0,04 0,02

0 3 0 3 0

0,00 0,09 0,00 0,12 0,00

2 2 1 2 0

0,12 0,06 0,02 0,08 0,00

0 4 3 0 0

2 3 4 5 6

3 Intense competition from Dell, HP, Sony and Toshiba 4 Dependence on specific suppliers 5 6 Companies not seeing Apple as compatible with their software Downloading free music from other online source without paying cost is common it may impact the iTunes sales Microsoft launched Microsoft Windows 7 and 8 which are gaining market share

0,05 0,02 0,06

0 0 0

0,00 0,00 0,00

2 0 0

0,10 0,00 0,00

0 0 0

7 8 9

8 The growing tablet market is competing with ipad 9 Apple is involved in several legal actions

10 High product substitution

0,03

0,03

0,00

10

QSPM: Quantitative Strategic Planning Matrix It determines the relative attractiveness of various strategic alternatives

Acquire Red Create a new Develop new Hat Linux game console product lines in or/and Maxtor China and (strong R&D or Western India department) Digital
AS 0 2 1 TAS 0,00 0,18 0,04 AS 0 0 3 TAS 0,00 0,00 0,12 AS 0 0 2 TAS 1 2 3

Strengths 1 2 3 iTunes Music Store is an excellent source of revenue, especially with the iPod and the accessibility on Windows platform. Apple Computers have good brand loyalty and image by setting high standards for quality and use. Partnership with Intel Computers in 2006 Present (Intel's microprocessors)

Weight 0,03 0,09 0,04

Strong Research & Development Department driving 4 innovation, creating its own software (free of viruses) and hardware 5 Creators of high tech technology such as iphone or imac Holds 5% market share and is 4th largest player in mobile phone 6 market. 7 18.5% market share of global smartphone market Robust financial performance. (strengthens investors 8 confidence and provides capital for future growth avenues) Low debtmore maneuverable. 9 10 Entering into new product lines ex: Laptops to iPhones and iPads Excellent distribution network globally to make its products accessible online and stores

0,10 0.07 0.08 0.09

4 2 0 0

0,40 0,14 0,00 0,00

2 0 0 0

0,20 0,00 0,00 0,00

1 0 2 2

4 5 6 7

0.08

0,24

0,16

0,03 0.04 0.02

4 3 0

0,12 0,12 0,00

0 0 0

0,00 0,00 0,00

2 4 0

9 10 11

11 The iOS has given it a lead as compare to its competitors

QSPM: Quantitative Strategic Planning Matrix It determines the relative attractiveness of various strategic alternatives

Acquire Red Create a new Develop new Hat Linux game console product lines in or/and Maxtor China and (strong R&D or Western India department) Digital

Weaknesses
1 2 3 Weak relationship with Microsoft. (low product compatibility) Apples market share is far behind from major competitor Microsoft. Its high priced products and accessories make them inaccessible to many of customers

Weight
0,05 0,07 0,04

AS
0 0 3

TAS
0,00 0,00 0,12

AS
0 3 2

TAS
0,00 0,21 0,08

AS
0 2 4

TAS
0,00 0,14 0,16

It has less presence in B2B market, as compare to its 4 competitors like Dell and HP. It can be seen that Apple mainly focuses on B2C so its losing large chunk of market 5 Comes without expandable memory and the battery is fixed (in mobile products) Coming off of the failure of two items apple tv and mac mini Not shareholder friendly (did not declare or pay cash dividends in either 2011 or 2010)

0,03

0,00

0,00

0,00

0,01 0,04 0,02 0,02 0,04 0,01

0 3 3 1 0 2

0,00 0,12 0,06 0,02 0,00 0,02 2,36

0 1 0 0 0 0

0,00 0,04 0,00 0,00 0,00 0,00 2,10

0 0 0 0 1 0

0,00 0,00 0,00 0,00 0,04 0,00 3,02

6 Former CEO Steve Jobs died 7

8 Patent infringement. 9

10 Product recalls. TOTAL

Develop new product lines in China and India

This strategy aims to handle the high cost structure of products, as well as to expand the product lines, which is a major opportunity. By establishing new product lines in China and India, Apple will implement its high technological competencies, which combined with the low labor cost of China and India, will manage to reduce the overpricing of its products and will gain a competitive advantage among other companies. Apple has to focus on the global market, and both China and India are two of the most populated countries in the world and they are experiencing lately, increased use of computers and computer technology products. The economies of the said countries are rapidly improving with more disposable income than ever before. Currently, all of Asia, accounts for about 5% of Apples total revenue; however, with more advertising and focus on China and India, can be fully exploited because the market has no prejudices yet. If tapped properly, these two countries can provide significant revenues for Apple in the future. This is the alternative strategy that should be followed by Apple among the other two, due to the highest total attractive score it took, at the QSPM process.

Epilogue

Apple, is arguably the most successful company ever in many respects. But there are major financial risks with being the premier first mover in any industry. Rival firms across the globe are getting better and better at quickly duplicating successful Apple products and offering them at lower prices. Success of Apples iPad, iPhone and Macs new versions, helped Apple to replace Microsoft as the worlds most valuable technology company in 2010. Apple thinks that there is yet room for improvement, to substitute the already created wonders.

Innovation never stops.

The Technology of the Future

Coming Straight from the Past