APPLE INC.

By: Kuljinder Singh Nitish Arora

Change the World through Technology

April 1976, Apple Computer, Founders: Steve Jobs and Steve Wozniak. Motto : Think Differently. Industry: Computer Hardware and Software, Consumer Electronics. Apples very first PC introduced in late 70s with user friendly look and feel. 1984, Macintosh Becomes Industry leader both in innovation and market share.

 Early 80s : Steve Wozniak left the company. John Sculley hired as President of the company. 1985 : Steve Jobs left the company due to controversial relations with the president. Downfall of the Apple. Sales : drop steeply to $5 billion, 50% decrease. Share of PCs dropped to 2%.

 Apple engineered a remarkable turnaround in recent years. Sales soared to a record $24 billion. Triple the sales just 3 years earlier. Profit rose to 13 fold in that 3 year period. Gadget geeks crowned Apple the keeper of all things cool.

Cause of this turnaround.

Customer-driven creativity and new-product innovation. Began with the return of Steve Jobs in 1997. Jobs returned to Apple determined to breathe new creative life and customer focus into the company.

iMac
Jobs first task was to give new life to computer business. 1998 : Apple launched the iMac PC with a sleek, egg shaped monitor and HDD all in one unit. One button internet access. Designed specifically for cruising the internet. iMac won raves for design. More than a million units were sold within a year. High promotion strategy ($100 million ad campaign)

Mac OS X
Jobs next unleashed Mac OS X, a new Apple operating system. Served as a launching pad for new generation of Apple Computers and software products. iLife comes with bundle of apps. iMovie(for video editing) iDVD(for recording movies) iPhoto(for photo editing) iWeb(for creating websites and blogs).

 iMac and Mac OS X put Apple back on track. Apple still a nicher, just 6% share of US market. Dominants Competitors : Dell,HP, Microsoft etc. Needs even more creative thinking.

iPod and iTunes

Apple comes with more creative iPod and iTunes. iPod ranked as one of the greatest consumer electronics hits of all times. By March 2008, 119 million iPods were sold. Captures more than 70% of the music player market. 4 billion songs had been downloaded from iTunes store. Number 2 music store after Walmart.

 Macbook Air : the worlds thinnest laptop. Opened more than 200 stylish and gleaming stores. Worlds fastest growing retail chain. New products : iHome (device that powers all your digital home entertainment devices), iPod on Wheels(a digital hub that integrates your iPod with your cars entertainment system)

 Named the Worlds most innovative company for the 3rd straight year in Boston Consulting Groups Most Innovative Company Survey Top the Fortune Magazine list of Americas most admired company.

 Steve Jobs has transformed Apple from a failing niche computer maker to a major force in consumer electronics, digital music etc. Done it through innovation- by helping those around him to Think-Different in their quest to bring values to the customers.

SWOT ANALYSIS
A) STRENGTHS: (i) Produce innovative products by using innovative technology (ii) Produce aesthetic / stylish products (iii)They make diversified products (iv)Customers of Apple computers are brand loyal (v) Have technology of interacting with computer using human Senses. (vii) First company which adapt calligraphic font style (ix) Make music website

 B) WEAKNESSES (i) Apple has high manufacturing and inventory cost (ii) Management is not stable (iii)Has low market share in software industry (iv)Majority of retail stores located in U.S.A. (v) No compatibility options in their softwares (vi)Decline in sales of iMac

 C) OPPORTUNITIES (ii) Should open retail stores in different countries (iii)Should target government and educational institutions (iv)Should make compatible softwares (vi)Should introduce the speech recognition program (vii)They should focus on customized products for customers (viii)Should start making their own microprocessor chips

D) THREATS (i) Merger & acquisitions of competitors (ii) High cost can be a limitation in future (iii)High market share of Microsoft Windows (iv)Competition increases in music downloading sites