this slideshare is about history of apple. actually, this was my minor project in college on company analysis of Apple Inc.

2. Chapter-1
Introduction

3. a) Overview of the Organisation
The company was founded on April 1, 1976, and
incorporated as AppleComputer, Inc. on January 3, 1977.
The word "Computer" was removed from its name on
January 9, 2007, the same day Steve Jobs introduced the
iPhone, reflecting its shifted focus towards consumer
electronics.
Apple Inc., formerly Apple Computer, Inc., is an American
multinational corporation headquartered in Cupertino,
California that designs, develops, and sells consumer
electronics, computer software and personal computers.
Apple is the world’s-second largest information company by
revenue after Samsung Electronics, and the world’s-Third
largest 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 criticism for its
contractor’s labor practices, and for Apple's own
environmental and business practices.
As of May 2013, Apple maintains 408 retail stores in
fourteen countries as well as the online Apple Store and
iTunes Store, the latter of which is the world's largest music
retailer.

4. b) Profile Of The Organisation
Founded: April 1, 1976
Founder(s): Steve Jobs
: Steve Wozniak
: Ronald Wayne
Type: Public
Industry: Computer Hardware: Computer Software
: Consumer Electronics
: Digital Distribution
Headquarters: Apple Campus, 1 Infinite Loop, Cupertino California, U.S.
Number of locations:406 retail stores
Area served: Worldwide
Key people(s): Tim Cook (CEO)
: Arthur D. Levinson(Chairman)
: Steve Jobs(Founder, former CEO)
Revenue: US$ 156.508 billion (2012)
Operating income: US$ 055.241 billion (2012)
Net income: US$ 41.733 billion (2012)
Total assets: US$ 176.064 billion (2012) Employees: 80,000 (2013)
Website: Apple.com

5. Products: 1.
Mac
a) MacBook Air
b) MacBook Pro
c) Mac Pro
d) Mac Mini
e) iMac
2.
iPad
3.
iPad Mini
4.
iPod
a) iPod Shuffle
b) iPod Nano
c) iPod Classic
d) iPod Touch

6. 5.
iPhone
a) iPhone 4
b) iPhone 4s
c) iPhone 5c
d) iPhone 5s
6.
Apple TV
7.
iWatch
Softwares: 1. Safari
2. iPhoto
3. iTunes
4. Facetime
5. Siri

7. c) Issues Of The Organisation
Increasing competition
Apple’s key competitors are Google, Samsung, Microsoft and
many more. Google’s Android has more marketshare than Apple’s
iOS and in the phone making Apple is facing strong competition
from Samsung.
Criticism for Apple maps
Apple launched its Google Maps replacement and while that’s not
much time to overhaul such a massive undertaking. Apple Maps
were a catastrophe as they majority of the times were not accurate
and directed its users or stranded them at some unknown place.
Patent War

8. d) SWOT Analysis
Strengths
Weaknesses
Customer loyalty combined with expanding
High price
closed ecosystem
Incompatibility with different OS
Apple is a leading innovator in mobile device
Decreasing market share
technology
Patent infringements
Strong financial performance
Further changes in management
($10,000,000,000 cash, gross profit margin
Defects of new products
43.9% and no debt)
Long-term gross margin decline
Brand reputation
Retail stores Opportunities
Threats
Strong marketing and and iPhone 5
High demand of iPad mini advertising teams
Rapid technological change
iTV launch
2013 tax increases
Emergence of the new provider of application
Rising pay levels for Foxconn workers
processors
Breached IP rights
Growth of tablet and smartphone markets
Opportunities
Price pressure from Samsung over key
Threats
High demand of iPad through acquisitions
Obtaining patents mini and iPhone 5
Rapid technological change
components
iTV launch from patent infringements
Damages
2013 taxdollar
Strong increases
Emergence of the new provider of application processors
Rising pay levels for Foxconn workers
Growth of tablet and smartphone markets
Breached IP rights
Obtaining patents through acquisitions
Price pressure from Samsung over key
Strong growth of mobile advertising market
Increasing demand for cloud based services
Android OS growth
Competitors moves in online music
Damages from patent infringements
market
components
Strong growth of mobile advertising market
Strong dollar
Increasing demand for cloud based services
Android OS growth
Competitors moves in online music market

9. Strengths
1. Customer loyalty combined with expanding closed ecosystem.
While at first Apple’s closed ecosystem was a weakness for the
business, this has now changed. First, Apple now has a full range of
apps, software and products that are interlinked and support each
other. Second, new products and supplements will be released
soon (iTV), hence expanding the ecosystem. Third, Apple has a
strong customer loyalty, which increases due to Apple’s closed
ecosystem, which, in turn, is supported by customer loyalty. So the
combination of Apple’s expanding closed ecosystem and customers’
loyalty increases firm’s competitive advantage.
2. Apple is a leading innovator in mobile device technology. Apple has
been chosen as the most innovative business in the world for the 3rd
time in 2012. Company’s core competency of producing innovative
products is the strength the company builds upon and is able to bring
the most innovative products to the market.
3. Strong financial performance ($10,000,000,000 cash, gross profit
margin 43.9% and no debt). Apple’s financial performance is one of
the best among many companies. Currently Apple has no debt and is
not directly affected by interest rates or credit markets.

10. Weaknesses
1.High price. Apple’s products cost much more than its competitors
devices. Some critics argue that the price is not justified. When there’s
such a fierce competition, Apple products price becomes a weakness
because consumers can easily opt for similar quality but lower price
products.
2.Incompatibility with different OS. The iOS and OS X are quite
different from other OS and uses software that is unlike the software
used in Microsoft OS. Due to such differences, both in software and
hardware, users often choose to stay with their accustomed software
and hardware (Microsoft OS and Intel hardware).
3.Decreasing market share. The less market share Apple has, the less
it can influence its potential customers and persuade them to jump into
using Apple’s closed ecosystem products.
Opportunities
1. High demand of iPad mini and iPhone 5.iPad mini sales will
increase Apple’s market share in the tablet market and, will
strengthen firm’s competitive advantage.
2. iTV launch.iTV launch will support Apple TV sales and the
products’ ecosystem.
3. Growth of tablet and smartphone markets. Growth of tablet and
smartphone markets is a good opportunity to expand firm’s share
in these markets.

11. Threats
1. 2013 tax increases. Tax increases in USA in 2013 will negatively
affect Apple.
2. Rising pay levels for Foxconn workers. Pay levels for Foxconn’s
workers already rose 3 times from 2010 to 2012. Foxconn is the
main manufacturer of Apple products and the rising pay level for
Foxconn’s workers will likely raise the prices for Apple products.
3. Breached IP rights. The companies that breach Apple patents
might not be discovered soon and may benefit from it, while
weakening Apple at the same time.
Major players in this field: 1. Google
2. Microsoft
3. Samsung
1. Google: o Google Inc. is an American multinational corporation
specializing in Internet-related services and products.
o Google was founded by Larry Page and Sergey Brin while
they were Ph.D. students at Stanford University.
o Vision

12. Focus on the user and all else will follow.
o Mission
Google’s mission is to organize the world’s information
and make it universally accessible and useful.
2. Microsoft: o Microsoft Corporation is an American
multinationalsoftware corporation headquartered in
Redmond, Washington that develops, manufactures,
licenses, and supports a wide range of products and services
related to computing.
o The company was founded by Bill Gates and Paul Allen on
April 4, 1975. Microsoft is the world's largest software
maker measured by revenues. It is also one of the world's
most valuable companies.
3. Samsung: o Samsung Groupis a South Korean
multinationalconglomerate company headquartered in
Samsung Town, Seoul. It comprises numerous subsidiaries
and affiliated businesses, most of them united under the
Samsung brand, and is the largest South Korean chaebol
(business conglomerate).
o Samsung was founded by Lee Byung-chul in 1938 as a
trading company. Over the next three decades the group
diversified into areas including food processing, textiles,
insurance, securities and retail.
o Notable Samsung industrial subsidiaries include Samsung

13. Electronics (the world's largest information technology
company measured by 2012 revenues, and 4th in market
value).

14. Chapter-2
Research
Methodology

15. Objectives:To analyze the consumer electronics and find the future growth
opportunities.To set up different parameters on the basis of which the
consumer electronics companies will becompared so as to select one best
company.To carry out the company analysis of the selected company and
to suggest whether it is aviable investment option.To look at the historical
performance data of the company and estimate the future performanceof
stocks. Looking at this information to gain an insight on the company s
future performance. Itis a method of evaluating a security by attempting
to measure its future performance byexamining related economic,
financial and other qualitative and quantitative factors. To estimatea
value that an investor can compare with the security's current price and
figure out what sort ofposition to take with that security.
Scope: The scope of this project is limited to only one sector i.e. Consumer
Electronics.
This project is concerned with only one sector of companies in the stock
market. The projectdoes not extend its scope to any other sector of
companies.Source of information for this project is only secondary data.
LIMITATIONS OF THE STUDY
Since the road to improvement is never ending, so this study also suffers
from certain limitations. Some of them are as follows:

16. Scope of project is limited in the sense that only Apple has
been taken for consumer research.
The extent of the survey was New Delhi only. So the
suggestions or arguments given in the report may not hold
true for other locations in India.
Questionnaire method involves some uncertainty of response. Cooperation on the part of informants, in some cases, was difficult to
presume.
Because of time constraints and reserve constraints, a mix of
convenient sampling and Judgement (Probability & Random)
sampling was used.
Also because of above-mentioned constraints, the sample size
chosen for the survey was 100 people.
RESEARCH METHODOLOGY: Research is often described as an active, diligent and systematic process
of inquiry aimed at
Discovering, interpreting and revising facts. This intellectual
investigation produces a greaterunderstanding of events, behaviors or
theories and makes practical applications through lawsand theories. The
term research is also used to describe a collection of information about
aparticular subject, and is usually associated with science and scientific
method.

17. BASIC RESEARCH:
Basic research is also called as fundamental or pure research. Its primary
objective is theadvancement of knowledge and the theoretical
understanding of the relations among thevariables. It is exploratory and
often driven by researcher’s curiosity or interest. It is conductedwithout
any practical end in mind. Basic research often lays down the foundation
for furtherapplied research.

18. Chapter-3
Analysis Of The
Organisation

19. Foundation and Incorporation(1970-80)
Apple was incorporated January 3, 1977,without Wayne, who sold
his share of the company back to Jobs and Wozniak for $800.
Multi-millionaire Mike Markkula provided essential business
expertise and funding of $250,000 during the incorporation of
Apple.
During the first five years of operations, revenues doubled every
four months, an average growth rate of 700%.The Apple I was sold
as a motherboard, which is less than what is today considered a
complete personal computer. The Apple I went on sale in July
1976 and was market-priced at $666.66 ($2,690 in 2013 dollars,
adjusted for inflation)
The Apple II, also invented by Wozniak, was introduced on April
16, 1977, at the first West Coast Computer FaireIt differed from its
major rivals, the TRS-80 and Commodore PET, due to its character
cell-based color graphics and an openarchitecture.
While early models used ordinary cassette tapes as storage devices,
they were superseded by the introduction of a 5 1/4 inch floppy
disk drive and interface, the Disk II.
In the end of the 1970s, Apple had a staff of computer designers
and a production line. The company introduced the Apple III in
May 1980 in an attempt to compete with IBM and Microsoft in the
business and corporate computing market.
On December 12, 1980, Apple went public at $22 per share,
generating more capital than any IPO since Ford Motor Company
in 1956 and instantly creating more millionaires (about 300) than
any company in history.

20. Lisa and Macintosh (1981–85): Apple began working on the Apple Lisa in 1978. In 1982, Jobs was
pushed from the Lisa team due to infighting. Jobs took over
JeffRankin’s low-cost-computer project, the Macintosh. A race
broke out between the Lisa team and the Macintosh team over
which product would ship first.
Lisa won the race in 1983 and became the first personal computer
sold to the public with a GUI, but was a commercial failure due to
its high price tag and limited software titles.
In 1984, Apple next launched the Macintosh. Its debut was
announced by the now famous $1.5 million television commercial
"1984". It was directed by Ridley Scott and was aired during the
third quarter of Super Bowl XVIII on January 22, 1984.
The Macintosh initially sold well, but follow-up sales were not
strong due to its high price and limited range of software titles. The
Macintosh was the first personal computer to be sold without a
programming language at all.
In 1985 a power struggle developed between Jobs and CEO John
Sculley, who had been hired two years earlier. The
Apple board of directors instructed Sculley to "contain" Jobs and
limit his ability to launch expensive forays into untested products.
Rather than submit to Sculley's direction, Jobs attempted to oust
him from his leadership role at Apple.

21. Decline (1986–97): During this time Apple experimented with a number of other failed
consumer targeted products including digital cameras, portable CD
audio players, speakers, video consoles, and TV appliances.
Enormous resources were also invested in the problem-plagued
Newton division based on John Sculley's unrealistic market
forecasts.
Ultimately, none of these products helped, as Apple's market share
and stock prices continued to slide. Microsoft continued to gain
market share with Windows focusing on delivering software to
cheap commodity personal computers while Apple was delivering
a richly engineered, but expensive, experience.
Apple relied on high profit margins and never developed a clear
response. Instead, they sued Microsoft for using a graphical user
interface similar to the Apple Lisa in Apple Computer, Inc. v.
Microsoft Corporation.The lawsuit dragged on for years before it
was finally dismissed. At the same time, a series of major product
flops and missed deadlines sullied Apple's reputation, and Sculley
was replaced as CEO by Michael Spindler
In 1996, Michael Spindler was replaced by Gil Amelio as CEO.
Gil Amelio made many changes at Apple, including extensive
layoffs.[64] After numerous failed attempts to improve Mac OS,
first with the Taligent project, then later with Copland and
Gershwin, Amelio chose to purchase NeXT and its NeXTSTEP
operating system, bringing Steve Jobs back to Apple as an advisor.
On July 9, 1997, the board of directors ousted Gil Amelio after
overseeing a three-year record-low stock price and crippling

22. financial losses. Jobs became the interim CEO and began
restructuring the company's product line.
Return to profitability (1998–2005):
On August 15, 1998, Apple introduced a new all-in-one computer
reminiscent of the Macintosh 128K: the iMac. The iMac design
team was led by Jonathan Ive, who would later design the iPod and
the iPhone.The iMac featured modern technology and a unique
design, and sold almost 800,000 units in its first five months.
On May 19, 2001, Apple opened the first official Apple Retail
Stores in Virginia and California.On July 9, they bought Spruce
Technologies, a DVD authoring company. On October 23 of the
same year, Apple announced the iPod portable digital audio player,
and started selling it on November 10. The product was
phenomenally successful — over 100 million units were sold
within six years.
In 2003, Apple's iTunes Store was introduced, offering online
music downloads for $0.99 a song and integration with the iPod.
The service quickly became the market leader in online music
services, with over 5 billion downloads by June 19, 2008.
Transition to Intel (2005–07):At the Worldwide Developers Conference keynote address on June
6, 2005, Steve Jobs announced that Apple would begin producing
Intel-based Mac computers in 2006.On January 10, 2006, the new
MacBook Pro and iMac became the first Apple computers to use
Intel's Core Duo CPU.

23. By August 7, 2006 Apple had transitioned the entire Mac product
line to Intel chips, over one year sooner than announced.The Power
Mac, iBook, and PowerBook brands were retired during the
transition; the Mac Pro, MacBook, and MacBook Pro became their
respective successors.
On April 29, 2009, The Wall Street Journal reported that Apple
was building its own team of engineers to design microchips.Apple
introduced Boot Camp to help users install Windows XP or
Windows Vista on their Intel Macs alongside Mac OS X.
Apple's success during this period was evident in its stock price.
Between early 2003 and 2006, the price of Apple's stock increased
more than tenfold, from around $6 per share (split-adjusted) to
over $80. I
n January 2006, Apple's market cap surpassed that of Dell.Nine
years prior, Dell's CEO Michael Dell said that if he ran Apple he
would "shut it down and give the money back to the shareholders."
Although Apple's market share in computers had grown, it
remained far behind competitors using Microsoft Windows, with
only about 8% of desktops and laptops in the US.

24. Widespread success (2007–11):Apple achieved widespread success with its iPhone, iPod Touch
and iPad products, which introduced innovations in mobile phones,
portable music players and personal computers respectively. In
addition, the implementation of a store for the purchase of software
applications represented a new business model.
Touch screens had been invented and seen in mobile devices
before, but Apple was the first to achieve mass-market adoption of
such a user interface that included particular pre-programmed
touch gestures.
On April 2, 2007, Apple and EMI jointly announced the removal
of DRM technology from EMI's catalog in the iTunes Store,
effective in May, Other record labels followed later that year.
Post–Steve Jobs era (2011–present):In June 2011, Steve Jobs surprisingly took the stage and unveiled
iCloud, an online storage and syncing service for music, photos,
files and software which replaced MobileMe, Apple's previous
attempt at content syncing.
Apple has achieved such efficiency in its supply chain that the
company operates as a monopsony (one buyer, many sellers), in
that it can dictate terms to its suppliers.
On August 20, 2012, Apple's rising stock rose the company's value
to a world-record $624 billion. This beat the non-inflation-adjusted
record for market capitalization set by Microsoft in 1999. On
August 24, 2012, a US jury ruled that Samsung should pay Apple
$1.05 billion(£665m) in damages in an intellectual property
lawsuit.

25. In March 2013, Apple announced a patent for an augmented reality
(AR) system that can identify objects in a live video stream and
present information corresponding to these objects through a
computer-generated information layer overlaid on top of the realworld image.

26. Chapter-4
Findings &
Recommendations

27. Findings:-
Apple cannot market iPhones in Brazil because another company
owns the trademark.
The Brazilian telecommunications company IGM Electronica owns
the brand Gradiente, which filed for exclusive rights to the name
“iPhone” in 2000, before Apple had produced its iPhone. It took
seven years but eventually the rights were granted, and the GGradiente iPhone was launched in 2007.
According the Financial Post, Apple Inc. grew richer than Uncle
Sam, having more cash on hand than the entire U.S. had spending
room. This was due to the debt ceiling crisis of July 2011. Apple
Inc. boasted cash reserves of $75.88 billion while Washington had
an operating balance of $73.77 billion.
A major difference, however, is that Apple’s figure refers to its
reserve of cash, the government’s value is the amount of spending
room it has before reaching an arbitrary debt ceiling.
Apple now has the highest market value of any private company in
the world. Apple once had more cash in the bank than the US
Treasury had money to spend.Apple Inc. is sitting at $416.6 billion.
Exxon-Mobile is second at $400.4 billion.
Apple has more than 300 stores in 11 countries, and its retail
division has become a hugely important part of the company's
business, selling millions of iPods, Macs, iPhones, and iPads.

28. Recommendations:Scale up its production capabilities.
Every time Apple releases a hot new gadget, customers can't get it. This
is a consequence of Apple's legendarily precise just-in-time
manufacturing system. Apple never wants to make more devices than it
will sell, so it ramps up manufacturing in lock step with demand. That
reduces its inventory costsand thus boosts its profit, but Apple's
production is still too slow to keep up with instant spikes in demand. Is it
possible for Apple to build products any faster than it does now? If
money is no object, sure: It could set up factories in many different
countries and it could invest in next-generation production capabilities
that might pump out iPhones even faster (for instance, robotic assembly
lines, which have the added benefit of not raising any concerns about
factory conditions).
Build or buy a cellular carrier.
The iPhone is Apple's biggest product, but Apple sells almost all of its
phones in partnership with carriers whose prices it doesn't control. Those
costs are the biggest piece of a smartphone purchase, and, in the U.S. and
many other places around the world, they have remained relatively stable
for years. Your cellular carrier's technology and customer service also
leave a lot to be desired.Steve Jobs once said that Apple's goal is to "own
and control the primary technology in everything we do." Cellular data
service is a key such technology, and Apple should make it a goal to own
and improve that service. It could start small, building infrastructure that
boosts iPhone service in congested cities, but with enough investments it

29. could build a network of its own, thus improving current carriers' service
and pricesthrough competition.
High demand of iPad mini and iPhone 5.
iPad mini sales will increase Apple’s market share in the tablet market
and, will strengthen firm’s competitive advantage.
iTV launch.
iTV launch will support Apple TV sales and the products’ ecosystem.
Growth of tablet and smartphone markets.
Growth of tablet and smartphone markets is a good opportunity to expand
firm’s share in these markets.

30. Bibliography
1. http://en.wikipedia.org/wiki/Apple_Inc.
2. http://www.strategicmanagementinsight.com/swotanalyses/apple-swot-analysis.htm
3. http://www.forbes.com/companies/apple/
4. http://www.strategicmanagementinsight.com/swotanalyses/apple-swot-analysis.html
Books:1.Steve Jobs by Walter Isaacson