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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