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WAC PresentationApple Inc. CaseGroup 12
Divya Priyanka Sinha
Gunajit Brahma
Jaipal Charan
Rajat Shuvra Sen
Rohit Bele
Sankar Nath Dutta
Soham Roy
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Apples History Founded by Steve Jobs and Steve Wozniak on April
fools Day, 1976 First product computer circuit board that was named
The Apple I
On 1978 launched an easy to use computer calledApple II.Become industry leader with $1billion sales.
Challenge from IBM and Intel during 1981
Introduction of Macintosh on 1984
Faced issues like slow processing speed and lackof compatible software
62% reduction in net income from 1981 to 1984 Steve Job was forced out of Apple on 1985
John Sculley ,a former Pepsi executive wasappointed as CEO
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Steve Jobs and the Apples
turnaround Under the leadership of Steve Jobs Apple
decided to invest $ 150 million for a five yearcommitment with Microsoft in developingcore products like Microsoft Office, for theMac
With the introduction of iMac in 1998,Apples sales outpaced the industrysaverage.
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The personal Computer
Industry The emergence of Wintel computers,
Windows OS plus Intel chips, dominated theindustry initially.
During 2000 portable PC represented 50%share of global shipment and a newsubcategory of Netbooks was launchedwhich drive down the average selling price ofportable computers
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Buyers and Distributors
Home
Small and medium size business
Corporate
Education
Government
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PC Manufacturers
Top four PC vendors; HP, Dell, Acer and
Lenovo accounted for 55% of the worldwideshipments
Acer and Lenovo were emerging marketplayers which entered into PC marketthrough strategic acquisitions
On the other hand China based Lenovoentered into the PC market through
acquisition of loss making IBMs PC business
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Moving beyond the
Macintosh Apples shift towards a digital hub strategy
was initiated by the debut of the iPod in2001, followed by the iPhone in 2007 andthen the iPad in 2010.
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The iPod sensation
Ipod set apple on its explosive growth path.
The iPod was initially one of many portabledigital players based on the mp3 standards
Many analysts also believed that the iPodHALO effect had benefited Apples Macbusiness.
Within the iPod product line the Touch wasApples premier device.
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iTunes
By February 2010 it had sold 10 billion songs
and featured the Worlds largest musiccatalogue.
Before the advent of iTunes, Apple sold andaverage of 113000 iPod per quarter. AfteriTunes launch iPod sales shot up to 733000units and exploded thereafter
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iPhone
Analysts estimated that Apple generated
ASP $562 from its iPhones whilecompetitors ASP on similar handsets rangedbetween $300 to $400
AT&T agreed to an unprecedented revenuesharing agreement with Apple, this gave
Apple control over iPhones distribution,pricing and branding. The first generation ofiPhones sold at about 6 million units.
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App Store
The Apples App store was introduced as
part of iTunes. 3rd party developers as wellas consumers welcomed the launch. Thepopularity of App Store was stunning.
In about 18 months 4 billion applications hadbeen downloaded by iPhone and iPod touchusers worldwide.
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iPad
The launch of the iPad in 2010 was yet
another bold move by Apple to redefine anindustry. It was positioned between aSmartphone and a laptop computer.
Apple took a somewhat different approach tothe iPad compared to the iPod and theiPhone.
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Occasional Failures
Apple also dealt with certain failures with
living up to the expectations. One was the Mac Mini, which was an entry-
level desktop, but with limited features whichresulted in failure.
The other disappointment was Apple TV,which was a set-top box which could notconnect with the customers