APPLE INC.

Apple Inc. previously Apple Computer, Inc. is an American multinational corporation that designs and markets consumer electronics computer software and personal computer. The company's best-known hardware products include the Macintosh line of computers, the iPod, the iPhone and the iPad. As of September 2011, Apple is the largest publicly traded company in the world by market capitalization and the largest technology company in the world by revenue and profit. Established on April 1, 1976 in Cupertino , California, and incorporated January 3, 1977, the company was previously named Apple Computer, Inc., for its first 30 years, but removed the word "Computer" on January 9, 2007, to reflect the company's ongoing expansion into the consumer electronic market in addition to its traditional focus on personal computers. As of September 2010, Apple had 46,600 full time employees and 2,800 temporary full time employees worldwide and had worldwide annual sales of $65.23 billion. Apple was established on April 1, 1976 by Steve Jobs, Steve Woznaik, and Ronald Wayne, to sell the Apple I personal computer kit. 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. When Apple went public, it generated more capital than any IPO since Ford Motor Company in 1956 and instantly created more millionaires (about 300) than any company in history.

Products
Apple Notebooks Mac Mini iPad iPod iPhone Apple TV

Apple thru the Years

Competition

STRENGTHS
Brand Name Strong International Presence

Strong Consumer Base mainly in United States

Strong Financial Position Strong Research & Development Department

WEAKNESS
Expensive as compared to competitor High R&D and Channel cost

Defective products
Life cycle of products are very small Apple operating system supports limited software

OPPORTUNITIES
Advancement in technology Diversification such as Security devices, Service provider Forward & Backward integration will lead to lower cost Increase Consumer base Developing Countries

THREATS
Very high level of competition in the technology markets High product substitution effect Slow economic periods

Political instability, Govt. regulations, etc

Worldwide market share 2009-2010

Worldwide market share 2010-2011

According to the report, Apples iPhone shipments went from 8.7 million in the first quarter of 2010 to 18.7 million in the first quarter of 2011. That brings Apples market share from 2.8% in 2010 to 5.0% in 2011.

Future Growth

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Gartner.inc (Research Organisation) has these predictions for the years 2011 to 2015. You will be amazed to see what goes on there. In 2011, Android will grow by 167% and iOS will grow by 94%. Going forward Androids growth will slow down. Growth of iOS is also slowing down by 2015.

Marketing Strategies
1) iPhones marketing strategy is to differentiate the iPhone from other PDAs on the market 2) Primary customer targets is the middle-upper income professional that need one portable device to coordinate their busy schedules and communicate with colleagues, friends and family 3) Our secondary consumer targets are high school, college and graduate students who need one portable multifunction device. Mainly this market will be replacing their iPod and cell phone with the iPhone. 4) Our primary business target is to partner with large cell phone service providers, AT&T, Verizon, Sprint and Cellular One; As well as large enterprise software firms where information is critical to the end user 5) .Secondary business target is mid-to mid-size corporations that want to help managers and employees stay in communication or access critical data on the go

Target Segment

Marketing Strategies
POSITIONINGThe iPhone will be promoted as both professional and hip

Product: The iPhone will have a full year warranty along with an optional threeyear Apple Care warranty Larger, removable disk storage capacity Significantly longer battery life Peer to peer wireless exchange Lets you easily share your music and pictures. Improved camera For more detailed pictures and high quality video conferencing.

Marketing Strategies
Distribution & promotion We are aiming for massive rollout worldwide at all reputable major retailers Various Apple stores at big station in big cities for product demonstration Eye catching displays will be found at all physical stores featuring the iPhone to make the product stand out from the pack Apple store is designed to lure consumers into Apple stores and see the whole range of products Apple can offer Loyalty Programme 10% discount for Apple user (Except for Ipod) Marketing and Communication: We will also emphasize our brand prominently and associated the iPhone with the iPods groundbreaking lineage . Our ads need to be original but tasteful at the same time A massive TV campaign is planned for the month for next product i.e. iphone 5, Ipad 3

Marketing Strategies
Marketing Research High School and College aged people will demonstrate social uses The 25-45 years group will be used to determine business application and social/personal use 45 years and above will give us a plan to market to more senior wellrefined group

Tools Research will be done through surveys (via email campaign through portals such as, iTunes and other on-line application developed for the iPhone. Interviews in APPLE store. .

Key Success factors

Consumer-oriented Factors
Technology
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Marketing
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Skill and Capability

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Distribution
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- Value added - Internet driven - A strong network of - Well-know and (cheaper, faster, force wholesale well-respected brand more convenient distributors/ dealers name - Replacing than the alternatives) - Fast introduction communication tools - Market - Design and and application of segmentation - Next generation innovation expertise services experience - Targeting and Pricing effectiveness

What happened

In September 2007, barely 10 weeks after the launch of iPhone, Apple announced a steep price cut for the product.
The 4GB version was made inoperable while the 8GB version was available at US $ 399 and a 16 GB version was to be introduced at US $ 499. The early adopters who had waited in queues to buy the product at a much greater price were discontented and annoyed and they therefore took a legal action against Apple and AT&T for the price cut. This issue had a negative effect on Apples share prices.