Apple, Inc.

Technological innovation meets savvy marketing

The Beginning: 1976 - 1980

• Founders– Steve Wozniak, Steve Jobs and Ronald

Wayne (whoops!) working out of basement– Apple I sold in July 1976 (all 200 of them)

The Beginning: 1976 - 1980

• Apple II– Much improved on the Apple I– Built with the average person in mind

Macintosh 1981 – 1990

• First computer to use a GUI

• First to use a mouse and 3 ½ floppy

• Marketing campaign to introduce

The Macintosh 128k (aka “The Beige Toaster)

Growth and Decline: 1991 - 1997

• First usable laptop – the PowerBook

• Attack of the Clones leads to slumping sales

• CEO revolving door

Restructuring Apple

• Ended Macintosh licensing program

• Consolidated products lines from 15 to 3

• Outsourced Manufacturing

• Revamped distribution

Restructuring Apple

• Launched web site for direct to consumer sales

• Reduced Inventory

• Increased R & D spending

• Opened Retail Stores

• Partnerships

Restructuring Apple

• Image– Hip alternative– Not just a technology

company– Cultural force

Technology & Innovation

• Learning from past mistakes

• Incremental design improvements

• Improving on current technology

Technology & Innovation

• Computers – Mac– MacBook– Intel-based Mac

• Software– iMovie– Final Cut Pro– GarageBand– iPhoto– Mac OS X

Technology & Innovation

• Other Technologies– iPod

• What can we do to get more people to buy Macs• Developed from existing technologies• Developed in less than 1 year• iPod synonymous with MP3 player “Icon status”

– iTunes

Technology & Innovation

• Other Technologies (cont.)– iPhone

• Developed from existing technologies• User friendly interface

– Apple TV

Apple Net Sales

Sales (millions of $)

$0

$5,000

$10,000

$15,000

$20,000

$25,000

1981 1984 1987 1990 1993 1996 1999 2002 2005 2008

Total Sales Computer Hardware

Apple Share Price

iPod & iTunes Sales

Apple Inc

• Changed name from Apple Computer, Inc to Apple Inc.– Reflects the change in focus to consumer

electronic market.

• Why has Jobs been so successful?– Innovation:

• Not just new products• “reinventing business processes and building

entirely new markets that meet untapped consumer needs”

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