Apple Computer Inc.

Designed to Sell

LifestyleDreams
Mac Book Air
Hopes

iApple

Imagination

Creativity
Design Remix

Innovation iWork iMac Passion iPhoto iPhone iTunes Mission Organization Creates Garage Band iPod Touch iPod Shuffle Build it Bigger Genius Mac Book Pro Rebel

Safari iLife Apple TV

Curb Appeal iPod Nano

Apple Computer Inc. is an American computer technology company. It leads the industry in innovation with its award-winning desktop and notebook computer. Apple also spearheads the digital music revolution with its iPod portable music players and iTunes online music store. Apple played a major role in the introduction of the personal computer in the 1970s, which eventually kicked off the personal computer revolution. Its first big hit, the Apple II, was introduced in 1977 and was a very popular with home consumer. The company has revolutionized the way people and computer companies think about aesthetic design of computers and consumer electronics alike as well as the security and operability of the operating system. In addition, Apples unmatchable success with its iPod mp3 player and revolutionary iTunes music store has left many companies struggling to keep up with the new wave of giving consumers the simplicity they desire in technology.

Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne to sell the Apple I personal computer kit. They were handbuilt by Wozniak and first shown to the public at the Homebrew Computer Club. The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips)less than what is today considered a complete personal computer. The Apple I went on sale in July 1976 and was marketpriced at $666.66. Apple was incorporated January 3, 1977 without Wayne, who sold his share of the company back to Jobs and Wozniak for $800. Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple. By the end of the 1970s, Apple had a staff of computer designers and a production line. The Apple II was succeeded by the Apple III in May 1980 as the company competed with IBM and Microsoft in the business and corporate computing market.

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.

April 1st,1976 - Founded January 3rd,1977 - Incorporated Headquarters - Cupertino, California

Co-founders - Steve Jobs, Steve Wojniak

CEO - Steve jobs Industry - Computer software, computer hardware, consumer electronics. Revenue - US$ 19.3 Billion Employees 21,600 (full time)

19771981: Michael "Scotty" Scott 19811983: A. C. "Mike" Markkula

19831993: John Sculley

19931996: Michael Spindler 19961997: Gil Amelio 1997Present: Steve Jobs (Interim CEO 19972000)

Steve Jobs, Chief Executive Officer

Timothy D. Cook , Chief Operating Officer

Peter Oppenheimer, Chief Financial Officer Philip W. Schiller , Senior Vice President of Worldwide Product Marketing Mark Papermaster , Senior Vice President of Devices Hardware Engineering Jonathan Ive, Senior Vice President of Industrial Design Bertrand Serlet, Senior Vice President of Software Engineering Ron Johnson, Senior Vice President of Retail

Sina Tamaddon, Senior Vice President of Applications

Scott Forstall, Senior Vice President of iPhone Software Bob Mansfield, Senior Vice President Mac Hardware Daniel Cooperman, General Counsel and Secretary

Apple Inc.'s world corporate headquarters are located in the middle of Silicon Valley, at 1 Infinite Loop, Cupertino, California. This Apple campus has six buildings which total 850,000 square feet (79,000 m2) and was built in 1993 by Sobrato Development Cos. In 2006, Apple announced its intention to build a second campus on 50 acres (200,000 m2) assembled from various contiguous plots. The new campus, also in Cupertino, will be about one mile (1.6 km) east of the current campus. Apple office in Fifth Avenue The Cube Store in New York City.

The original Apple logo featuring Isaac Newton under the fabled apple tree. The rainbow Apple logo, used from late 1976 to early 1998. The monochrome Apple logo, used from 1998 to late 2000, used predominantly on hard wares. Still appears on various products in various colours, such as iLife packaging. Stylized Apple logo, used 2001 to around 2007 on Apple software. Logo used from 2007 to present.

19761980: The early years

The Apple I, Apple's first product. Sold as an assembled circuit board, it lacked basic features such as a keyboard, monitor, and case. The owner of this unit added a keyboard and a wooden case.

The Macintosh 128K, the first Macintosh computer. In 1984, Apple next launched the Macintosh. It was directed by Ridley Scott, and launched on January 22, 1984, and is now considered a watershed event for Apple's success and a masterpiece .

The period from 1986 to 1991 though was referred to as The Golden Age of Macintosh but what followed was a set of ill-fated products & unsuccessful ventures into consumer products such as consoles, cameras and audio players. Major product flops & missed deadlines destroyed Apples reputation and stock prices continued to decline. CEO Scully was thereafter replaced by Michael Spindler. The Macintosh Portable was Apple's first "portable" Macintosh computer, released in 1989.

These years saw Apple ally itself with IBM and Motorola to create a new computing platform and the return of Steve Jobs as the Interim CEO after the removal of Spindler and Gil Amelio. In 97 MacExpo Jobs announced an alliance with Microsoft to release versions of OFFICE for Mac and Microsofts $150 million investment in non-voting Apple stock. The Newton was Apple's first foray into the PDA markets, as well as one of the first in the industry. A financial flop, it helped pave the way for the Palm Pilot and Apple's own iPhone in the future. iMac, consumer all-in-one desktop computer that was first introduced by Apple in 1998. Its popularity helped revive the company's fortunes.

These years were marked with the revival of Apple. Under Steve Jobs that Co. came out with a range of new products i.e. iPod, Mac Books, Softwares like iLife, Garage Band and many others. It also saw the partnership with Intel the launch of iTunes and Apples own flagship stores.

 Mac mini MacBook Pro Mac Pro

MacBook Air
iPods iPhone iTV or Apple TV Softwares ( iDVD, iPhoto, iWork, iMovie, iTunes, iWeb, iDisc, GarageBand, etc)

Apples success is based on creating innovative, high-quality products and services and on demonstrating integrity in every business interaction. Apples principles of business conduct define the way we do business worldwide. These principles are: Honesty. Demonstrate honesty and high ethical standards in all business dealings. Respect. Treat customers, suppliers, employees, and others with respect and courtesy. Confidentiality. Protect the confidentiality of Apples information and the information of our customers, suppliers, and employees. Community. Conduct business in a way that benefits the communities in which we operate. Compliance. Ensure that business decisions comply with all applicable laws and regulations.

Apple is one of several highly successful companies founded in the 1970s that bucked the traditional notions of what a corporate culture should look like in terms of organizational hierarchy. Other highly successful firms with similar cultural aspects from the same time period include Southwest Airlines and Microsoft. Originally, the company stood in opposition to staid competitors like IBM more or less by default, thanks to the influence of its founders; Steve Jobs often walked around the office barefoot even after Apple was a Fortune 500 company. By the time of the "1984" TV ad, this trait had become a key way the company attempts differentiated itself from its competitors. As the company has grown and been led by a series of chief executives, each with his own idea of what Apple should be, some of its original character has arguably been lost, but Apple still has a reputation for fostering individuality and excellence that reliably draws talented people into its employ, especially after Jobs' return. To recognize the best of its employees, Apple created the Apple Fellows program. Apple Fellows are those who have made extraordinary technical or leadership contributions to personal computing while at the company.

The Company posted record revenue of $10.17 billion. Record net quarterly profit of $1.61 billion, or $1.78 per diluted share. International sales accounted for 46 percent of the quarters revenue. Apple sold 2,524,000 Macintosh computers during the quarter, representing nine percent unit growth over the year-ago quarter. The Company sold a record 22,727,000 iPods during the quarter, representing three percent unit growth over the year-ago quarter. Quarterly iPhone units sold were 4,363,000, representing 88 percent unit growth over the year-ago quarter. Even in these economically challenging times, we are incredibly pleased to report our best quarterly revenue and earnings in Apple historysurpassing $10 billion in quarterly revenue for the first time ever, said Steve Jobs, Apples CEO.

The Apple brand is not just intimate with its customers, it's loved, and there is a real sense of community among users of its main product lines.
The huge promise of the Apple brand, of course presents Apple with an enormous challenge to live up to. The innovative, beautifully-designed, highly ergonomic, and technology-leading products which Apple delivers are not only designed to match the brand promise, but are fundamental to keeping it. Apple fully understands that all aspects of the customer experience are important and that all brand touch-points must reinforce the Apple brand. Apple Store openings can draw crowds of thousands, with some waiting in line as much as a day before the opening or flying in from other countries for the event. The New York City Fifth Avenue "Cube" store had a line as long as half a mile; a few Mac fans took the opportunity of the setting to propose marriage. The Ginza opening in Tokyo was estimated in the thousands with a line exceeding eight city blocks.

Apple has a branding personality that focuses on the emotions. The Apple brand personality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams and aspirations; and power-to-the-people through technology. The Apple brand personality is also about simplicity and the removal of complexity from people's lives; people-driven product design; and about being a really humanistic company with a heartfelt connection with its customers. Market research indicates that Apple draws its customer base from an unusually artistic, creative, and well-educated population, which may explain the platforms visibility within certain youthful, avant-garde subcultures. There are a huge number of consumers who are loyal to Apple even though the prices of Apple products are higher comparing to its competitors. The attractiveness of Apples products has created a brand of distinction in the computer industry.

Windows OS and media player for playing music and video ( Microsoft) Competition to Mac OS X (Linux) Alternate sources of computer hardware (Dell, HP, Lenovo) Small stylish MP3 players (Creative, Samsung) Online music stores similar to itunes stores (Napster) Suppliers of processors and computer memory (Motorola, IBM, Intel)

Strategic alliance/supplier of Mac (Microsoft)

Supplier of tv and movies (Disney, ABC, Fox, Sony) Sources of music (BMG, Sony, Warner, Universal)

AAPL Market Cap: Employees: Qtrly Rev Growth 34.40% (yoy): Revenue (ttm): 17.31B 54.05B 21600

DELL 57.24B 65,200

HPQ 92.04B 150,000

MSFT 241.97B 61,000

Industry 640.18M 1.80K

6.20%

4.60%

13.30%

13.60%

56.74B

88.89B

42.64B

4.09B

Gross Margin (ttm):

EBITDA (ttm): Oper Margins (ttm): Net Income (ttm): EPS (ttm): P/E (ttm): PEG (5 yr expected): Apple faces

28.60%
2.39B 12.27% 1.73B 1.982 32.06

17.50%
4.63B 7.45% 3.40B 1.417 17.51

23.76%
8.39B .56% 3.17B 1.097 29.66

83.40%
17.51B 38.69% 13.47B 1.262 18.80

17.50%
66.28M -0.16% -195.51K N/A 32.06

1.16 low budget computers 1.51 pressure from its1.40 competitors such 0.98 as Dell and HP. Dells have given 1.40 them the largest market share in personal computers. According to the available data, HP leads the industry with gross revenue of 88.89 billion dollars but Dell has the highest net income. Even though Apples stock price is higher than both Dell and HP, the difference in market share and revenues are far behind them.

50% of Apple Profits are in foreign markets Knowledge of customer base High Quality Products Brand Name Innovation Product Diversification Easy use product Attractive, Small, light Easy to carry Apple is the oldest hardware manufacturer Control over the product by manufacturing both computer and their Operating System.

 Quality Product control

iPod Nano may have a faulty screen Faulty ipod batteries High Price Poor leadership Internal engineering focus rather than a market focus The Scare of LBO Leveraged Buyout No Dividends Constant change in technology so continuous R&D is required.

Less expensive new product lines with quality.

Product line is functional and attractive. Flexibility to its users. iPods are able to communicate with specially designed Nike running shoes where you could receive data such as calories burned and distance ran. New car models with ipod connectivity.

Pressure from competitors. Substitution effect. Technology changes at a rapid rate. Forced to develop new products. Changing Exchange Rates.

Apple can expect a prosperous future Steady increase in sales net earnings over the past 5 years Almost 200% sales increase from 2004-2005 Over 80% market share in iPods

Must continue to develop and acquire new strengths I.e. Innovation, high quality products, good marketing plan Threat of substitution/competition is decreased
Must minimize number of faulty components of its products Increase R&D efforts Maintain customer loyalty

Decrease prices iPod Touch ranges from $300 to $400 Mac desktop starts at $1300 Will result in gaining new customers Pay dividends Stopped paying in 1995 due to 2 for 1 Stock Splits Competitors havent been paying Improve stockholder loyalty