This document analyzes Apple Inc.'s strategy, hardware, software, supply chain, and provides a summary. It discusses Apple's $532 billion market capitalization and the success of the iPhone, noting competition from Samsung and suggestions to invest more in R&D and integrate new technologies. The iPad is analyzed along with the need to improve the iPad Mini and add more enterprise features. Issues with iOS maps are also summarized. The document reviews Apple's acquisitions and supply chain, including Foxconn factories. It concludes with recommendations to invest cash in R&D, address CSR issues, expand into emerging markets, and maintain collaboration across devices.

1. Apple Inc. Analysis
Strategy Group 2

2. TABLE OF CONTENTS
•
Company overview
•
Hardware
•
Software
•
Supply Chain
•
Summary
•
Q&A

3. COMPANY OVERVIEW
$532.18b

4. SHARE PRICE
700
525
350
175
0
1981
1990
2012
2000

5. HARDWARE

6. iPhone
Pros:
• Revolutionised
• 250m
• The
the mobile phone
iPhones sold since inception
highest user engagement
amongst all smartphone brands

7. iPhone
Smartphone Market Share
Vendor
2011 Q2
2012 Q2
Change
Samsung
Apple
Nokia
HTC
ZTE
Others
Total
17%
18.8%
15.4%
10.7%
1.8%
36.2%
100%
32.6%
16.9%
6.6%
5.7%
5.2%
32.9%
100%
15.6%
-1.9%
-8.8%
-5%
3.4%
-3.3%

8. iPhone
Solutions:
• Invest
more into R&D
• Integrate
latest technology
such as NFC, Wireless
Charging

9. iPad
Pros:
• Created
the tablet market
• Content
consumption platform
• Over
!
!
!
100m units sold

10. iPad
Cons:
• Strong
competition from Microsoft Surface,
Samsung Galaxy Tab & Google Nexus
• Blackberry
Playbook for enterprise
• iPad
Mini - small profit margins and might
cannibalise iPad 4 sales
• iPad
!
4 launch was rushed

11. iPad
Suggestions:
• Improve
iPad Mini specs
• Cut
down the production cost
for iPad Mini
• Introduce
more enterprise-level
features (e.g. better videoconferencing)

12. iPod
Problem: Too many models & the market is shrinking
Solution: Streamline the diverse iPod portfolio

13. SOFTWARE

14. iOS
Pros:
• Apple
mobile OS released in 2007
• Integrations
Facebook
with Twitter &
• Passbook App
• Improved
Siri with restaurant info

15. iOS
Cons:
• Problem
• Apple
• No
!
!
with WIFI connectivity
Maps disaster
radical updates

16. iOS
Solutions:
• Hire
top mapping experts to work on the
Maps App
• Use
crowd-sourcing to improve the map
data
!
!

17. MAC OS X
Pros:
• 3m
downloads in 4 days
• Penetrated
10% users in 1
• Integration
with Twitter,
month
Facebook
• Positive
reviews

18. MAC OS X
Cons:
• Slower
speeds
• Problems
• Mac
downloading the OS
OS X now is vulnerable to
viruses
!

19. iTunes, iCloud...
• Acts
• 30
as a hub for media and apps
billion apps sold as of Mar 2012
• iTunes
2012
generated $7.5b in sales in
• Secure
and safe - all data is
encrypted
• Competitors: Amazon
& Google Play

20. ACQUISITIONS
• Apple
acquired a number
of companies including
• FingerGesture
• Siri
• Anobit
• AuthenTec

21. SUPPLY CHAIN

22. FOXCONN
Pros:
• Low
production costs
• Good
quality production
• Large
scale production ability
• Create
!
!
a lot of jobs in China

23. FOXCONN
Cons:
• 1000s
of workers gone on strike
over working conditions
• Factory
shut in Northern China
after a mass brawl
!
!

24. ENVIRONMENTAL IMPACT

25. APPLE STORES
Strengths:
• Key
element of strategy
• Hub
for ecosystem
• $4.23
!
!
!
!
billion for the final quarter of 2012

26. APPLE STORES
Weaknesses:
• Apple
stores in only 6% of the world
• Competition
from Microsoft, borrowed
ideas: "Guru Bar”
!
!

27. SUPPLY CHAIN
Solutions:
• Continue
expansion into BRIC (Brazil, Russia,
India & China)
• Review
!
!
!
contracts with suppliers

28. SUMMARY
• Invest
cash reserves
into R&D
• Continue
• Continue
• Keep
to
proactively target
CSR issues
expansion
into BRIC countries
the continuous
collaboration across
all devices

29. “We need to innovate
our way out of this.”
-Steve Jobs

30. QUESTIONS & ANSWERS