Download - Apple Inc. Analysis for Strategy Class
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Strategy Group 2
Apple Inc. Analysis
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TABLE OF CONTENTS
• Company overview
• Hardware
• Software
• Supply Chain
• Summary
• Q&A
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COMPANY OVERVIEW
$532.18b
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175
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525
700
1981 1990 2000 2012
SHARE PRICE
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HARDWARE
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iPhone
Pros:
• Revolutionised the mobile phone
• 250m iPhones sold since inception
• The highest user engagement amongst all smartphone brands
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iPhone
Vendor 2011 Q2 2012 Q2 Change
Samsung 17% 32.6% 15.6%Apple 18.8% 16.9% -1.9%Nokia 15.4% 6.6% -8.8%HTC 10.7% 5.7% -5%ZTE 1.8% 5.2% 3.4%
Others 36.2% 32.9% -3.3%Total 100% 100%
Smartphone Market Share
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iPhone
Solutions:
• Invest more into R&D
• Integrate latest technology such as NFC, Wireless Charging
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iPad
Pros:
• Created the tablet market
• Content consumption platform
• Over 100m units sold
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iPadCons:
• Strong competition from Microsoft Surface, Samsung Galaxy Tab & Google Nexus
• Blackberry Playbook for enterprise
• iPad Mini - small profit margins and might cannibalise iPad 4 sales
• iPad 4 launch was rushed
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iPad
Suggestions:
• Improve iPad Mini specs
• Cut down the production cost for iPad Mini
• Introduce more enterprise-level features (e.g. better video-conferencing)
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iPod
Problem: Too many models & the market is shrinking
Solution: Streamline the diverse iPod portfolio
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SOFTWARE
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iOS
Pros:
• Apple mobile OS released in 2007
• Integrations with Twitter & Facebook
• Passbook App
• Improved Siri with restaurant info
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iOS
Cons:
• Problem with WIFI connectivity
• Apple Maps disaster
• No radical updates
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iOS
Solutions:
• Hire top mapping experts to work on the Maps App
• Use crowd-sourcing to improve the map data
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MAC OS X
Pros:
• 3m downloads in 4 days
• Penetrated 10% users in 1 month
• Integration with Twitter, Facebook
• Positive reviews
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MAC OS X
Cons:
• Slower speeds
• Problems downloading the OS
• Mac OS X now is vulnerable to viruses
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iTunes, iCloud...
• Acts as a hub for media and apps
• 30 billion apps sold as of Mar 2012
• iTunes generated $7.5b in sales in 2012
• Secure and safe - all data is encrypted
• Competitors: Amazon & Google Play
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ACQUISITIONS
• Apple acquired a number of companies including
• FingerGesture
• Siri
• Anobit
• AuthenTec
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SUPPLY CHAIN
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FOXCONNPros:
• Low production costs
• Good quality production
• Large scale production ability
• Create a lot of jobs in China
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FOXCONNCons:
• 1000s of workers gone on strike over working conditions
• Factory shut in Northern China after a mass brawl
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ENVIRONMENTAL IMPACT
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APPLE STORES
Strengths:
• Key element of strategy
• Hub for ecosystem
• $4.23 billion for the final quarter of 2012
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APPLE STORES
Weaknesses:
• Apple stores in only 6% of the world
• Competition from Microsoft, borrowed ideas: "Guru Bar”
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SUPPLY CHAIN
Solutions:
• Continue expansion into BRIC (Brazil, Russia, India & China)
• Review contracts with suppliers
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SUMMARY
•Invest cash reserves into R&D
•Continue to proactively target CSR issues
•Continue expansion into BRIC countries
•Keep the continuous collaboration across all devices
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“We need to innovate our way out of this.”
-Steve Jobs
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QUESTIONS & ANSWERS