Presented bySudarshan Kokate M-11- 27Santosh Sakharle M-11-48Zeeshan Shaikh M-11-53

APPLE’S FOUNDERS

Steve Jobs1955 - 2011

Steve Wozniak

VISION AND MISSION

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.”

About the company

• Founded - April 1, 1976

• Industry – Computer hardware , Computer software,

Consumer Electronics , Digital Distribution

• Founder(s) - Steve Jobs , Steve Wozniak , Ronald Wayne

• Headquarters - Apple Campus, Infinite Loop, Cupertino,

California, U.S.

About the company

• Number of locations – 394 retail stores (Nov 2012)

• Key People -

Arthur D. Levinson (Chairman)

Tim Cook (CEO)

• Public Ltd. Company

• Employees - 72,800 (2012)

Products

• Mac• iPad• iPod• iPhone• Apple TV• Software

Products competitors

PC IBM, Dell, Acer, HP, Lenovo

iPod series Samsung , SanDisk , Creative, Microsoft Zune, Napster Amazon.com, Napster

iPhone series Samsung, Google, Motorola

iPad Amazon’s kindle, Dell, HP, Samsung

Operating system Microsoft windows, Android OS, Linux

Major Competitors

Strengths Weaknesses Well recognized ,product differentiation

unique design, easy to use products

4th largest player in the global mobile phone market

Strong brand image, Brand stability ,High brand loyalty

Robust financial performance

Focused R&D driving innovation Holds 5% market share in mobile phone market

18.5% market share of global smartphone market

Complete hardware/software package

Patent infringement lawsuit may affect financial condition and operating results

-January 2010, Nokia filed law suit for patent infringement with US ITC

Product recalls, defects may harm reputation and as significant warranty and other expenses

- 2010, antennae problems in iPhone 4- replacements free of charge

SWOT ANALYSIS

Opportunities Threats Strong growth in smartphone and tablet markets

to boost Apple’s revenues

Robust outlook for mobile advertising market provides growth opportunity

Shipment of smartphones expected to be 850 million by the end of 2013

iPhone business continues to increases

Strongest player in mobile apps market (350,000 apps)

Mobile advertising market is forecast to reach approximately $25 billion by 2015

Increasing demand of online music and other like cloud based services.

Rising popularity of Google Android may affect its market share

350,000 Android smartphones are activated daily, 150,000 iPhone activated daily

Steve Job’s was innovative and a visionary for Apple. His death may affect further developments in Apple

Very reliant on specific suppliers and component providers

Intense competition Highly dependent on consumer

purchases

SWOT ANALYSIS

10

• Reportedly, Apple is one of the most successful technology companies in the world.

• Apple business strategy focuses on research & development in order to compete in technology world.

• Based on Forbes (April 2012), Apple’s market capitalization worth $546 billion, which is:– Almost twice of Microsoft ($273.5 billion)– More than twice of IBM ($238.7 billion)– More than twice of General Electric ($213.7 billion)– More than twice of Wal-Mart ($208.4 billion)– More than twice of Google ($203.2 billion)– More than thrice of Coca Cola ($158.8 billion)

• Apple is the world’s second largest Information technology by revenue after Samsung Electronics , and the world’s third largest mobile phone maker after Samsung and Nokia.

• Fortune magazine named Apple the most admired company in the United States in 2008.

• It is the second-largest publicly traded corporation in the world by market capitalization, with an estimated value of US$414 billion as of January 2013.

Recent Acquisitions

On 20th December 2011, acquired Anobit for $390 million

August 1, 2011, Apple acquired C3 Technologies US$267

February 23, 2012, acquired Chomp for US$50 million

Recent Acquisitions (con’t)

C3 Technologies

• A 3D mapping company

• Based in Sweden, new name “Apple Sputnik division”

• 3 employees of C3 have joined Apple Inc

• CEO – Mattias Astrom

• CFO – Kjell Cedestrand

• PM – Ludrig Emgard

Anobit

• Israeli manufacturer of flash memory founded in 2006

• Hq -Herzliya, Israel• Anobit provides flash storage

solutions for enterprise and mobile markets, based on its proprietary MSP (‘Memory Signal Processing’) technology.

• Its solutions are designed to improve the speed, endurance and performance of flash storage systems while driving down the cost.

• Apple relies on the company’s solutions for the iPhone, iPad and MacBook Air product lines to boost memory perforamnce

Chomp

• is a search engine that finds the app you want

• Founded in 2009 • Hq- San Francisco,

USA• Apple has acquired

Chomp, a search engine designed to find and discover apps for iPhone, iPad and Android.

Financial Aspects of Apple :

Revenue - US $ 156.508 billion (2012)

Operating income - US $ 55.241 billion (2012)

Net income - US $ 41.733 billion (2012)

Total assets - US $ 176.064 billion (2012)

Total equity - US $ 118.210 billion (2012)

15

2009 2010 2011

59.86% 60.62% 59.52%

40.14% 39.38% 40.48%

COGS Gross Profit

Gross Profit Margin

16

Ratio Analysis - Leverage

2009 2010 2011 -

20,000

40,000

60,000

80,000

100,000

120,000

47,048

74,100

111,939

- - -

31,187

46,708

72,183

Total Tangible Assets Total Debt Effective Equity

• Apple is a company with no debt reported at the end of their financial year.

• Most of their liabilities were in current ones which were mainly contributed trade creditors, accrued expenses, and deferred revenue.

• Non-current liabilities consisted of non-current deferred revenue, deferred tax liabilities, and other non-current liabilities.

17

Ratio Analysis – Profitability

2009 2010 2011

100% 100% 100%

40% 39% 40%30% 30% 33%

28% 28% 32%

19% 21% 24%

Apple's Profitability 2009-2011

Total Sales GP (%) EBITDA (%) NPBT (%) NPAT (%)

2009 2010 2011

40% 39% 40%

30%30%

33%

28% 28%32%

19%21%

24%

GP (%) EBITDA (%) NPBT (%) NPAT (%)

Apple’s Profitability:

• GP was steadily maintained at around 40% with slight decline in 2010.

• Operating and other expenses was managed efficiently.

• Thus, EBITDA, NPBT and NPAT remained healthy over the past 3 years.

• Business is seasonal with 1Q and 4Q sales higher than the rest.

• Volatility of revenue stream was low given their outstanding product and service quality.

NASDAQ – Stock Exchange

- AAPL

- Price - $448.97

- Volume traded -

17,820,000

- Data as of 02/26/13

Americas38%

Europe25%

Japan8%

Asia pacific29%

Sales

Geographic Revenue Breakdown 2012

202009 2010 2011

10% 10%6%

22%17%

14%

19%

13%

7%

9%

8%

6%

30%

39%

43%

0%8%

19%

3%3%

2%6% 4% 3%

Desktop Portable iPod Music Sevices iPhone iPad Other Hardware

Other Software

Sales by Products:

• iPhone’s contribution to total sales increased significantly due to expansion of resellers and contract with cellular network carriers.

• iPad’s sales increased dramatically too since its introduction in 3Q 2010.

• Sales of computer (both desktop and portable) increased slightly, and its percentage to total sales decreased moderately.

• Sales of iPod dropped in 2011, net sales per iPod increased due to a shift to iPod Touch from other iPod product mix.

India’s Market Strategy

• Apple does not run branded stores in India because local regulations make that difficult. Until now, Apple has sold the iPhone through Indian telecom providers, who bundle the phones with data services.

• As Indian telecom companies don’t subsidize the cost of iPhone, as in the U.S., these sales have been limited.

• This distribution model, coupled with the iPhone’s high cost, has left Apple’s market share in India in the doldrums.

• Distribution has been limited mainly to large towns.

• Apple has used distributors in the past for products like the iPad, but did not do so for the iPhone as it was concerned that paying third-party distributors would eat into its profit margins on a key product.

• The company saw higher potential in countries other than India, largely because of the high cost of distributing products here.

• The company’s decision to go through distributors perhaps shows the company is willing to see its margins decrease for now in an attempt to get a bigger toe-hold in India for the iPhone

• The move could help make the iPhone more available but will have an uncertain impact on sales because the main deterent to Indian consumers is the high price of the device.

Apple’s Green initiatives

Recycling :• Product recyclability• Longer-lasting batteries

Facilities :• Clean energy

Manufacturing :• Material use• Toxic substance removal• Environmentally conscious materials.

Transportation :• Smaller packaging

Product Use:• Energy efficiency• ENERGY STAR qualification

Thank You