Project Report

On
“Marketing Strategies of Apple”
A project report submitted in the partial fulfillment of the
requirements for the award of the degree of

BACHELOR OF BUSINESS ADMINISTRATION

BY
RUT

Roll No: - 02290201820

UNDER THE GUIDANCE OF

Ms. RIPLEEN KAUR

SRI GURU TEGH BAHADUR INSTITUTE OF MANAGEMENT

AND INFORMATIONAL TECHNOLOGY

(AFFILITED TO GGSIPU UNIVERSITY, DELHI)

ACADEMIC YEAR 2020-2023

1
PREFACE

A man can become perfect with a perfect knowledge and experience. As a student
of business management, we have studied many theories in the classroom but any
professional degree is incomplete without practical knowledge of concerned field.
And the same case is with management studies, management is incomplete without
knowing practical application of theories studied. I have experienced and understood
the practical importance of these theories on this training. More books and
theoretical knowledge can’t help you in any field whether it is management or
technical. Only thing can help you is practical knowledge.
This development day provides a golden opportunity to the students for getting a
perfect knowledge and experience. -+*
I come to know how the management of company is actually being done. How
decisions are made? How people behave and decide what to purchase?
As a part of my learning in management field and requirement of MMM program, I
have been given an opportunity to grab practical knowledge in the area of marketing
and I had selected “APPLE”. I have made my best efforts to get knowledge and
experience. During the day, I had collected necessary information, and I present all
the necessary information to understand well.

2
ACKNOWLEDEMENT

The project work is pursued as a part of SGTBIMIT curriculum at GGSIPU

University DELHI. I would greatly rejoice to express emphatically with profound
sense of gratitude and highest veneration, my sincere thanks to Ms. RIPLEEN
KAUR for giving me guidance for this Project.

I am short of words to express my respect & honor to my parents and family

members & friend who showered their blessings, affection, encouragement, &
inspiration, without which this report would not have been finalize.

I also express my sincere thanks to my friends who helped me differently in the

completion of my work.

Last but not least, I also thank all those people whom I met at APPLE during my
project report and helped me to accomplish my assignments in the most efficient and
effective manner.

3
CERTIFICATE

This is to certify that RUT student of Sri Guru Tegh Bahadur Institute Of
Management And Informational Technology of course BBA B&I Batch (2019-
22) has completed his research work title “Marketing Strategies of Apple”
under my guidance and supervision. The work is genuine and
authentic .

…………..……….
Signature of H.O.D
Mrs. BIPASHA CHAUDHARY

……………………
Signature of guide
Ms. RIPLEEN KAUR

Place: Delhi …………………….

Signature of scholar
Date: RUT

4
DECLARATION

I hereby declare that the project work entitled “ANALYZING MARKETING

STRATEGIES OF APPLE” submitted to the Guru Gobind Singh
Indraprastha University is record of an original work done by me under the
guidance of Ms. RIPLEEN KAUR, faculty member, Sri Guru Tegh Bahadur
Institute of Management And Informational Technology.

……………...
SIGNATURE

Place: Delhi RUT

Date: 02290201820

5
EXECUTIVE SUMMARY

“A comparative study of effectiveness of different promotional strategies

(schemes) with reference to Apple”
All this information has collected regarding the project through primary and
secondary data.
This report highlights on the understanding the marketing strategies of Apple and
their effect on sales of the products.
The objective of this this is understood marketing strategies of Apple and its effect
on the sales of its services and products.
The finding of the thesis is that customer is interested in products and services given
by Apple & give different type of promotional activity for the effective market
potential.

6
TABLE OF CONTENTS
S.NO. CONTENTS PAGE
NO.
1. Preface 2
2. Acknowledgement 3
3. Declaration 4
4. Certificate 5
5. Executive Summary 6
6. Chapter 1. Introduction 8-18
Introduction of Public Company and Apple
Components of Public Company
Advantages and Disadvantages
Objective of study
7. Chapter 2. Introduction of the Apple 19-29
8. Chapter 3. Research Methodology 30-32
9. Chapter 4. Findings and Discussion 33-39
10. Chapter 5. Conclusion 40-45
11. Chapter 6. Suggestions and Recommendation 46-62
12. Chapter 7. Bibliography 63

7
CHAPTER 1. INTRODUCTION

Introduction to public company:

A public company—also called a publicly traded company—is a corporation whose
shareholders have a claim to part of the company's assets and profits. Through the
free trade of shares of stock on stock exchanges or over-the-counter (OTC) markets,
ownership of a public company is distributed among general public shareholders.

Many Americans invest directly in public companies, and if you have any type of
pension plan or own a mutual fund, it's likely that the plan or fund owns some stock
in public companies.

KEY TAKE-AWAYS
•
A public company—also called
a publicly traded company—is a
corporation whose shareholders
have a claim to part of the
company's assets and profits.
• Ownership of a public company
is distributed among general public
shareholders through the free trade
of shares of stock on stock
exchanges or over-the-counter
(OTC) markets.
• In addition to its securities
trading on public exchanges, a
public company is also required to disclose its financial and business
information regularly to the public.

Apple Inc. is an American multinational technology company that specializes

in consumer electronics, computer software, and online services. Apple is
the world's largest technology company by revenue (totaling $274.5 billion in 2020)
and, since January 2021, the world's most valuable company. As of 2021, Apple is
the world's fourth-largest PC vendor by unit sales and fourth-
largest smartphone manufacturer. It is one of the Big Five American information
technology companies, along with Amazon, Google, Microsoft, and Facebook.

8
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976 to
develop and sell Wozniak's Apple I personal computer. It was incorporated by Jobs
and Wozniak as Apple Computer, Inc. in 1977, and sales of its computers, including
the Apple II, grew quickly. They went public in 1980 to instant financial success.
Over the next few years, Apple shipped new computers featuring
innovative graphical user interfaces, such as the original Macintosh, announced with
the critically acclaimed advert "1984". However, the high price of its products and
limited application library caused problems, as did power struggles between
executives. In 1985, Wozniak departed Apple amicably, while Jobs resigned to
found NeXT, taking some Apple co-workers with him.
As the market for personal computers expanded and evolved through the 1990s,
Apple lost considerable market share to the lower-priced duopoly of Microsoft
Windows on Intel PC clones. The board recruited CEO Gil Amelio, who prepared
the struggling company for eventual success with extensive reforms, product focus
and layoffs in his 500 day tenure. In 1997, Gil bought NeXT, to resolve Apple's
unsuccessful OS strategy and bring back Steve Jobs, who replaced Amelio as CEO
later that year. Apple returned to profitability under the revitalizing "Think different"
campaign, launching the iMac and iPod, opening a retail chain of Apple Stores in
2001, and acquiring numerous companies to broaden their software portfolio. In
2007, the company launched the iPhone to critical acclaim and financial success. In
2011, Jobs resigned as CEO due to health complications, and died two months later.
He was succeeded by Tim Cook.
In August 2018, Apple became the first publicly traded U.S. Company to be valued
at over $1 trillion and the first valued over $2 trillion two years later. It has a high
level of brand loyalty and is ranked as the world's most valuable brand; as of January
2021, there are 1.65
billion Apple
products in use
worldwide.
However, the
company receives
significant
criticism regarding
the labor practices of
its contractors, its
environmental
practices, and
business ethics,

9
including anti-competitive behavior, and materials sourcing.

COMPONENTS OF PUBLIC COMPANY

A public company, publicly traded company, publicly held company, publicly listed
company, or public limited company is a company whose ownership is organized
via shares of stock which are intended to be freely traded on a stock exchange or
in over-the-counter markets. A public company can be listed on a stock exchange
(listed company), which facilitates the trade of shares, or not (unlisted public
company). In some jurisdictions, public companies over a certain size must be listed
on an exchange.
Public companies are formed within the legal systems of particular states, and
therefore have associations
and formal designations
which are distinct and
separate in the polity in which
they reside. In the United
States, for example, a public
company is usually a type
of corporation (though a
corporation need not be a
public company), in
the United Kingdom it is
usually a public limited company (plc), in France a "société anonyme" (SA), and in
Germany an Aktiengesellschaft (AG). While the general idea of a public company
may be similar, differences are meaningful, and are at the core of international
law disputes with regard to industry and trade.

ADVANTAGES:
• Publicly traded companies are able to raise funds and capital through the sale
(in the primary or secondary market) of shares of stock. This is the reason
publicly traded corporations are important; prior to their existence, it was very
difficult to obtain large amounts of capital for private enterprises - significant
capital could only come from a smaller set of wealthy investors or banks
willing to risk typically large investments. The profit on stock is gained in
form of dividend or capital gain to the holders.

10
• The financial media, analysts, and the public are able to access additional
information about the business, since the business is commonly legally bound,
and naturally motivated (so as to secure further capital), to publicly
disseminate information regarding the financial status and future of the
company to its many shareholders and the government.
• Because many people have a vested interest in the company's success, the
company may be more popular or recognizable than a private company.
• The initial shareholders of the company are able to share risk by selling shares
to the public. If one were to hold a 100% share of the company, he or she
would have to pay all of the business's debt; however, if an individual were to
hold a 50% share, they would only need to pay 50% of the debt. This increases
asset liquidity and the company does not need to depend on funding from a
bank. For example, in 2013 Facebook founder Mark Zuckerberg owned
29.3% of the company's class A shares,[15] which gave him enough voting
power to control the business, while allowing Facebook to raise capital from,
and distribute risk to, the remaining shareholders. Facebook was a privately
held company prior to its initial public offering in 2012.[16]
• If some shares are given to managers or other employees, potential conflicts
of interest between employees and shareholders (an instance of principal-
agent problem) will be remitted. As an example, in many tech companies,
entry-level software engineers are given stock in the company upon being
hired (thus they become shareholders). Therefore, the engineers have a vested
interest in the company succeeding financially, and are incentivized to work
harder and more diligently to ensure that success.

DISADVANTAGES:
Many stock exchanges require that publicly traded companies have their accounts
regularly audited by outside auditors, and then publish the accounts to their
shareholders. Besides the cost, this may make useful information available to
competitors. Various other annual and quarterly reports are also required by law. In
the United States, the Sarbanes–Oxley Act imposes additional requirements. The
requirement for audited books is not imposed by the exchange known as OTC
Pink. The shares may be maliciously held by outside shareholders and the original
founders or owners may lose benefits and control. The principal-agent problem, or
the agency problem is a key weakness of public companies. The separation of a

11
company's ownership and control is especially prevalent in such countries as the UK
and the US

OBJECTIVE OF STUDY
• To understand the different marketing strategies being followed by
APPLE
• To learn their marketing mix.

SIMPLICITY IS KEY
Complicated marketing strategies and campaigns with information overload can
overwhelm customers and prospects; this is something you want to avoid because
Apple certainly has. From early on, the Apple brand has understood that simplicity
is key when communicating its products to its audience.

12
APPLE BRAND LOGO WITH THINK DIFFERENT TEXT
In Apple's marketing strategies, you won't typically find a lot of voice-overs, special
effects, long product feature lists or colourful graphics that distract from the actual
product being
marketed. Rather,
Apple choose to use
ads and marketing
copy that is simple
yet straightforward,
giving way for their
products to do all
the talking instead.
If you want to
incorporate this aspect into your own marketing, keep it simple - leave out the special
effects that make it difficult to focus on your product, and use graphics and content
that easily translate the message you are trying to bring across.

FOCUS ON YOUR UNIQUE VALUE PROPOSITION

One thing you hardly see Apple engage with is the pricing of their products. No
matter how many people think they are higher than their competitors, Apple doesn't
budge because they focus on selling their unique value proposition - creating high
quality, innovative products that are an experience from the moment you open the
box. With this in mind, Apple has also managed to focus on creating unique
customer experiences that other competitors simply cannot replicate. From features
to applications and the overall Apple ecosystem that works harmoniously to create
a seamless experience across all of its products, Apple knows how to make

13
customers feel like they are getting value for money. For brands wanting to do
something similar, simply focus on what makes your brand unique.

Then, sell that.

IT'S NOT JUST A PRODUCT; IT'S AN EXPERIENCE

To elaborate on the previous point of creating unique customer experiences, this is
something that Apple has done really well. From their 1984 Super Bowl ad, to their
annual #AppleEvent, it's not just about the products. It's also about creating
experiences for the customer that are memorable and give them a reason to keep
coming back.

An important part of creating a memorable customer experience lies in using the art
of storytelling to create these experiences that connect with customers and audiences
through the sensors. It's the high quality images that draw your eye when you see an
Apple ad, or the feel of the products you get when you're in an iStore. This all helps
immerse customers in an experience that doesn't necessarily feel like you're
shopping for just a product but rather for something that excites you, and will
14
continue to excite you long after you've made the purchase. Knowing how to speak
to your audience in a language that they understand is important for creating
meaningful connections with your audience, and encouraging more sales for your
business. This is where doing your research into who your audience is or having an
Audience Insights tool to help gather this information, will greatly benefit you.

SOCIAL SHARING ON MOBILE PHONE

You want to avoid using terms, phrases and explanations that will confuse or
overwhelm your customers. Instead, be like Apple and take the time to fully
understand your audience, how they talk about your brand online and the features or
products they mention in these conversations. Learn to listen to what your audience
is most interested in and use the language they use to better communicate with them.

CREATE VISUAL CONTENT WITH EMOTIONS

One of the ways that
Apple has managed to
create such loyal
customers to their
brand is thanks to their
ability to reach out and
connect with their
customers through
emotions. If you think about the Apple ads and visual marketing material that you
see, it shows people happy to use their products, that they are having a good time
using the iPhone or MacBook. Apple highlights this in their marketing efforts more
often than focusing on the battery life or screen size of their products.

15
MARKETING MIX
Apple Inc.’s marketing mix (4P) indicates how the company matches its business
activities to the conditions of the global market for information technology,
consumer electronics, and online services. A company’s marketing mix involves the
strategies and tactics pertaining to the implementation of a marketing plan. The focus
of the marketing mix is on the 4P variables, namely, Product, Place, Promotion, and
Price. In this business case, the marketing mix is specific to the technological nature
of Apple’s business. For example, the company’s 4Ps encompass multinational
operations in the consumer electronics market, the information technology market,
the Internet services market, and the digital content distribution market. Such
diversity in operations brings Apple Inc. in competition with a variety of firms, such
as Google, Amazon.com, Samsung, Dell, Lenovo, Sony, and PayPal, as well
as Microsoft, IBM and Intel. These competitors are known for their aggressiveness
in innovation and marketing. As a result, Apple has a marketing mix that involves
various strategies and tactics that correspond to the approaches of these other firms.

In developing its marketing mix, Apple Inc. uses an approach that focuses on
premium branding. This approach involves capitalizing on the premium brand, and
ensuring that all of the 4P elements support the maintenance of a strong brand image.
For example, Apple’s prices match its premium brand, as well as the corresponding
consumer perception that equates the company’s products with high value and high
quality. Reinforced with appropriate 4Ps, such response to the market enables the
corporation to keep its wide profit margins. These conditions help fulfill Apple Inc.’s
corporate vision and mission statements.

Also called the marketing communications mix, this element of the marketing mix
determines the communications tactics that the company uses to reach its target

16
customers. Apple Inc. promotes its products in various ways, involving different
communications channels and parties. In addressing this 4P element, the company
emphasizes the premium brand image and premium quality of its products. The
following communications tactics are in Apple’s promotional mix:

1. Advertising
2. Personal Selling
3. Sales Promotion
4. Public Relations

Apple Inc.’s marketing mix includes advertising, such as on Google’s digital

advertising network and on technology news websites. The company has agreements
with various prominent websites to advertise and promote Apple products. In
addition, the company uses personal selling in the form of Apple Store employees
who provide product-specific information in the aim of convincing store visitors to
make a purchase. Also, among the 4Ps, this element involves sales promotion, which

17
usually happens at the Apple Store locations and authorized reseller locations. For
example, some locations offer old models at discounted prices when bundled with
larger or more expensive products. Moreover, the company uses public relations to
optimize its corporate image. For instance, Apple Events, leaks of new product
features, press releases, and exclusive interviews are carefully executed to maximize
positive publicity. The company is also involved in various initiatives, such as
ConnectED, which aims to improve formal education outcomes, while promoting
the business and its products. These efforts are linked to Apple’s corporate social
responsibility strategy and stakeholder management efforts. The company uses such
communications tactics to satisfy this element of the marketing mix, pertaining to
business needs in reaching more customers worldwide.

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CHAPTER 2. INTRODUCTION TO APPLE

Apple Inc. had its genesis in the lifelong dream of Stephen G. Wozniak to build his
own computer—a dream that was made suddenly feasible with the arrival in 1975
of the first commercially successful microcomputer, the Altair 8800, which came as
a kit and used the
recently invented
microprocessor
chip. Encouraged
by his friends at the
Homebrew
Computer Club, a
San Francisco Bay
area group centred
around the Altair, Wozniak quickly came up with a plan for his own microcomputer.
In 1976, when the Hewlett-Packard Company, where Wozniak was an engineering
intern, expressed no interest in his design, Wozniak, then 26 years old, together with
a former high-school classmate, 21-year-old Steve Jobs, moved production
operations to the Jobs family garage. Jobs and Wozniak named their company Apple.
For working capital, Jobs sold his Volkswagen minibus and Wozniak his
programmable calculator. Their first model was simply a working circuit board, but
at Jobs’s insistence the 1977 version was a stand-alone machine in a custom-molded
plastic case, in contrast to the forbidding steel boxes of other early machines. This
Apple II also offered a colour display and other features that made Wozniak’s
creation the first microcomputer that appealed to the average person.
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COMMRERCIAL SUCCESS
Though he was a brash business novice whose appearance still bore traces of his
hippie past, Jobs understood that in order for the company to grow, it would require
professional management and substantial funding. He convinced Regis McKenna, a
well-known public relations specialist for the semiconductor industry, to represent
the company; he also secured an investment from Michael Markkula, a wealthy
veteran of the Intel Corporation who became Apple’s largest shareholder and an
influential member of Apple’s board of directors. The company became an instant
success, particularly after Wozniak invented a disk controller that allowed the
addition of a low-cost floppy disk drive that made information storage and retrieval
fast and reliable. With room to store and manipulate data, the Apple II became the
computer of choice for legions of amateur programmers. Most notably, in 1979 two
Bostonians—Dan Bricklin and Bob Frankston—introduced the first personal
computer spreadsheet, VisiCalc, creating what would later be known as a “killer
app” (application): a software program so useful that it propels hardware sales.
While
VisiCalc
opened up
the small-
business
and
consumer
market for
the Apple
II, another

20
important early market was primary educational institutions. By a combination of
aggressive discounts and donations (and an absence of any early competition), Apple
established a commanding presence among educational institutions, contributing to
its platform’s dominance of primary-school software well into the 1990s.

COMPETITION FROM IBM

Apple’s profits
and size grew at
a historic rate: by
1980 the company
netted over $100
million and had
more than 1,000
employees. Its public offering in December was the biggest since 1956, when the
Ford Motor Company had gone public. (Indeed, by the end of 1980, Apple’s
valuation of nearly $2 billion was greater than Ford’s.) However, Apple would soon
face competition from the computer industry’s leading player, International Business
Machines Corporation. IBM had waited for the personal computer market to grow
before introducing its own line of personal computers, the IBM PC, in 1981. IBM
broke with its tradition of using only proprietary hardware components and software
and built a machine from readily available components, including the Intel
microprocessor, and used DOS (disk operating system) from the Microsoft
Corporation. Because other manufacturers could use the same hardware components
that IBM used, as well as license DOS from Microsoft, new software developers
could count on a wide IBM PC-compatible market for their software. Soon the new
system had its own killer app: the Lotus 1-2-3 spreadsheet, which won an instant

21
constituency in the business community—a market that the Apple II had failed to
penetrate.

MACINTOSH AND THE FIRST AFFORDABLE GUI

Apple had its own plan to regain leadership: a sophisticated new generation of
computers that would be dramatically easier to use. In 1979 Jobs had led a team of
engineers to see the innovations created at the Xerox Corporation’s Palo Alto
(California) Research Center (PARC). There they were shown the first functional
graphical user interface (GUI), featuring on-screen windows, a pointing device
known as a mouse, and the use of icons, or pictures, to replace the awkward protocols
required by all other computers. Apple immediately incorporated these ideas into
two new computers: Lisa, released in 1983, and the lower-cost Macintosh, released
in 1984. Jobs
himself took over
the latter project,
insisting that the
computer should be
not merely great but
“insanely great.”
The result was a
revelation—
perfectly in tune with the unconventional, science-fiction-esque television
commercial that introduced the Macintosh during the broadcast of the 1984 Super
Bowl—a $2,500 computer unlike any that preceded it.

22
DESKTOP PUBLISHING REVOLUTION
Despite an ecstatic reaction from the media, the Macintosh initially sold below
Apple’s expectations. Critics noted that the Mac, as it came to be known, had
insufficient memory and storage and lacked standard amenities such as cursor keys
and a colour display. (Many skeptics also doubted that adults would ever want to use
a machine that relied on the GUI, condemning it as “toylike” and wasteful of
computational
resources.) In the
wake of the poor
sales performance,
Jobs was ousted from
the company in
September 1985 by
its chief executive
officer (CEO), John
Sculley. (Wozniak
had left Apple in
February 1985 to
become a teacher.)
Under Sculley, Apple
steadily improved the machine. However, what saved the Mac in those early years
was Apple’s 1985 introduction of an affordable laser printer along with Aldus
Corporation’s PageMaker, the Mac’s first killer app. Together these two innovations
launched the desktop publishing revolution. Suddenly, small businesses and print
shops could produce professional-looking brochures, pamphlets, and letters without

23
having to resort to expensive lithographic processes. The graphic arts and publishing
industries quickly became the Mac’s single most important market.

Another innovation was a software database called HyperCard, which Apple

included free with every Macintosh starting in 1987. Using a technique called
hyperlinking, this program, written by Bill Atkinson, was employed by many
teachers to organize multimedia elements for classroom presentations—an idea that
anticipated the HTML (hypertext markup language) underpinnings of the World
Wide Web.

APPLE LITIGATES WHILE PCS INNOVATE

This was a golden age for Apple;
the company’s revenues
approached $10 billion, and it
sold more than a million
computers a year. Still, Apple’s
profits obscured the fact that its
share of the market was falling,
despite the technological
superiority of its products. The Mac’s incompatibility with Apple II software, a
problem initially ignored, slowed educational sales and compelled the retention of
the outmoded Apple II line through 1993. Consumer sales suffered as the company
discouraged game development out of fear that the Mac would not be taken seriously
in the business community. Moreover, Microsoft, after an unsuccessful attempt to
secure an agreement to market the Mac OS on the Intel processor, introduced
Windows, its own graphical operating system. Apple litigated for years, in vain, to

24
stop Microsoft from copying the “look and feel” of its operating system, though the
Mac OS itself drew upon the PARC GUI. Meanwhile, as successive versions of
Windows were improved and as competition among multiple PC manufacturers led
to greater innovation and lower prices, fewer people were willing to pay the
premiums that Apple had been able to command owing to its reputation for quality.

APPLE–IBM RAPPROCHEMENT
In a rather surprising development, Apple and IBM announced an alliance in 1991.
In addition to signing a technology agreement with Motorola, Inc., to develop a next-
generation RISC (reduced-instruction-set computing) chip, known as the PowerPC,
Apple and IBM created two new software companies, Taligent, Inc., and Kaleida
Labs, Inc., for the development of operating system software. Taligent was expected
to enable versions of both the Mac OS and the IBM OS/2 to run on a new computer
hardware standard, the common hardware reference platform (CHRP), and Kaleida
Labs was to develop multimedia software. However, as Apple and IBM began to
quarrel over CHRP’s engineering specifications and as costs mounted to
approximately $400 million for Taligent and $200 million for Kaleida Labs, Apple
pulled out with little to show for its investment.

NEWTON AND CLARIS

Sculley also promised more than Apple could deliver with Newton, a personal digital
assistant (PDA) that suffered from poor handwriting recognition and that diverted
company engineering and financial resources. In addition, the company vacillated
over Claris Corporation, its software division, first reorganizing it as an independent
company and then reabsorbing it when it began shifting more resources to Windows
software.
25
APPLE CONTINUES TO FLOUNDER
Sculley was replaced by Michael Spindler in 1993. Spindler’s most notable
achievements as CEO were the successful migration of the Mac OS to the PowerPC
microprocessor and the initiation of a shift away from Apple’s proprietary standards.
Nevertheless, Apple struggled with marketing projections, accumulating large
unsalable inventories of some models while simultaneously being unable to meet a
billion dollars in orders for other models. Combined with drastic quality control
problems, notably a defective line of monitors and some highly publicized
combustible portable computers, these failings brought an end to Spindler’s reign in
early 1996 with the appointment of Gilbert F. Amelio.

THE RETURN OF JOBS: IMAC, IPOD, ITUNES, IPHONE, AND IPAD

Apple cut
operating costs
and reestablished
quality controls,
but by that time
only a small
percentage of new
computer buyers
were choosing
Macs over
machines running Windows, and Apple’s financial situation was dire. In December
1996, in order to secure a replacement for the Mac’s aging operating system
following the collapse of CHRP and the company’s protracted inability to produce

26
one internally, Apple purchased NeXT Software, Inc., the company formed by Jobs
after his 1985 departure. Jobs himself was retained as an advisor to the CEO, but he
quickly became disenchanted and sold all but one share of the Apple stock he had
received in the NeXT sale. When Apple failed to become profitable under Amelio
and its worldwide market share fell to roughly 3 percent, the board of directors, in
mid-1997, recruited a surprising temporary replacement: Jobs, for the first time the
undisputed leader of the company he cofounded.

Jobs set about revitalizing the company. He quickly announced an alliance with
erstwhile foe Microsoft; ended a half-hearted (and profit-draining) program to
license the Mac OS; streamlined what had become a confusing product line to focus
on the company’s traditional markets of education, publishing, and consumers; and
helped oversee the introduction of more affordable computers, notably the
distinctively designed all-in-one iMac.

Before the introduction of the iMac in 1998, all Macs were built with a special read-
only memory (ROM) chip that contained part of Apple’s operating system and
27
enabled the Mac OS to run only on particular machines. The new machine, based in
part on the scuttled CHRP design, with PC-standard memory and peripheral
interface, was a continuation of Apple’s shift away from hardware-specific, or
proprietary, standards. With built-in high-speed networking capabilities, the iMac
was designed to revive Apple’s consumer and educational market sales.
In 2001 Apple introduced iTunes, a computer program for playing music and for
converting music to the compact MP3 digital format commonly used in computers
and other digital devices. Later the same year, Apple began selling the iPod, a
portable MP3 player, which quickly became the market leader. (The term
podcasting, combining iPod
and broadcasting, is used as both a noun
and a verb to refer to audio or video
material downloaded for
portable or delayed playback.) Later
models added larger storage
capacities or smaller sizes,
colour screens, and video playback
features. In 2003 Apple began selling
downloadable copies of major record company songs in MP3 format over the
Internet. By 2006 more than one billion songs and videos had been sold through
Apple’s Web site.
In 2007 Apple introduced the touch-screen iPhone, a cellular telephone with
capabilities for playing MP3s and videos and for accessing the Internet. The first
models were available only in conjunction with AT&T’s wireless service and could
not be used over the latest third-generation (3G) wireless networks. Apple rectified
the latter limitation in 2008 with the release of the iPhone 3G, or iPhone 2.0, which
also included support for the global positioning system (GPS). Like other
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“smartphones” such as the BlackBerry, from the Canadian company Research in
Motion, the new iPhone included features geared toward business users. In
particular, the storage memory in the units could be remotely “wiped” if the unit
were lost. As with the original iPhone, demand was very high, and the new iPhone
3G sold one million units in the first three days after its introduction. That same year,
Apple introduced the App Store, where iPhone users could purchase applications.
By June 19, 2009, when Apple released the iPhone 3G S, which also sold one million
units in the first three days after its release, the company’s share of the smartphone
market had reached about 20 percent (compared with about 55 percent for the
BlackBerry line of smartphones). In addition to hardware changes such as a three-
megapixel digital camera that can record digital videos and an internal digital
compass (capable of working with various mapping software), the iPhone 3G S
included a new operating system, the iPhone OS 3.0. The new system included
support for voice-activated controls and peer-to-peer (P2P) play of electronic games
with other iPhone users over Wi-Fi Internet connections. The latter feature was part
of Apple’s strategy to compete in the portable gaming market with the Nintendo
Company’s DS and the Sony Corporation’s PSP. The iPhone can also be used for
reading electronic books, or e-books. E-books in iPhone-compatible formats can be
purchased over the Internet from electronic book dealers, such as the iTunes store
and Amazon.com.

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CHAPTER 3. RESEARCH METHODOLOGY

Definition of Research

The word research is derived from the Latin word meaning to know. It is a
systematic and a replicable process, which identifies and defines problems, within
specified boundaries. It employs well-designed method to collect the data and
analyses the results. It disseminates the findings to contribute to generalize able
knowledge. The characteristics of research presented below will be examined in
greater details later are:
➢ Systematic problem solving which identifies variables and tests
relationships between them,
➢ Collecting, organizing and evaluating data.
➢ Logical, so procedures can be duplicated or understood by others
➢ Empirical, so decisions are based on data collected
➢ Reductive, so it investigates a small sample which can be generalized to a
larger population
➢ Replicable, so others may test the findings by repeating it.
➢ Discovering new facts or verify and test old facts.
➢ Developing new scientific tools, concepts and theories, this would
facilitate to take decision.
For the proper analysis of data simple statistical techniques such as percentage were
use. It helps in making more generalization from the data available. The data which
was collected from a sample of population was assumed to be representing entire
population was interest. Demographic factors like age, income and educational
background was used for the classification purpose.

30
2.1 Research Design:
It was important to collect detailed information on various aspects for effective
analysis.
Research design can be of three forms:
• Descriptive Research: It is
conducted to ascertain certain
magnitudes and to provide an
accurate snapshot of some aspect of
the market environment. For
example: Determining the size of
the market, market share,
availability of distributors, sales
analysis, studies of consumer
attitude etc.
• Exploratory Research: This is
used when one is seeking insight into the general nature of a problem, the
possible decision alternatives, and relevant variables that need to be
considered. Little prior knowledge is required. Research methods are highly
flexible, unstructured and qualitative. For example: What new product should
be developed, what should be the positioning of our product, etc.
• Causal Research: Causal studies are designed to determine whether one or
more variables cause or determine the value of other variables. It is an
evidence of relationships of variables. For example: Whether decrease in price
will lead to an increase in the sales of a product, or whether the presence of a
sales person will help in increasing the sales in a retail outlet, etc.

31
• These three types can be viewed as cumulative. The research design adopted
for project research is Causal Research.
• Once the researcher has decided the ‘Research Design’, the next job is of data
collection. For data to be useful, our observation needs to be organized so that
we can get some patterns and come to logical conclusions.

Depending upon the sources utilized, whether the data has come from actual
observations or from records that are kept for normal purposes.
The research methodology involves the following major steps namely-
2.3.1 Defining data source
2.3.2 Research approach

32
CHAPTER 4. FINDINGS AND DISCUSSION

FINDINGS
1. The choice of a store location has a profound effect on the entire business life
of a retail operation. A bad choice may all but guarantee failure, a good choice,
and success.
2. Choosing a retail
location is, at best, a
risky undertaking.
Considering the
consequences of
choosing a location
that proves to be
unsuitable, it pays
to get as much
assistance as possible. According to a survey more than 60% of the customer
prefers to shop in a retail store which is easily accessible to them.
3. Advertising plays a very important role in achieving growth for any retail
company. This is evident from the fact that Advertising by Retail Industry
registered a rise of 12 percent during January - May 2007 over January - May
2006.
4. The right location, trained manpower, software assistance, product with a
distinct differentiation, a strong value proposition, efficient supply chain
management - these are the factors that influence the success of a retail outlet.

33
With competition in this segment increasing, differentiation and a strong value
proposition assume significance. Retail chains are realizing that they cannot
be another ‘me-too’ store. The differentiation today among the 5-6 retail
chains has come through private labels, which in some cases account for as
much as 70 per cent of the total merchandise in the outlet.
5. Variety offered by any retail store is of very much important to attract all type
of customers in the stores.
6. Shopping experience within a store also has a great impact on selecting a
product from a particular retail store. Overall ambience includes infrastructure
facilities provided by the store such as air conditioners, lighting etc.
7. Pricing is in fact a dramatic controller of at least 3 key strategic elements to
any company's success: Company’s image, the product and services company
sells and consumer behavior. The Importance of Pricing their Products' will
give them an insight into developing appropriate costing methods and the
impact of getting it wrong in today's competitive creative market. This topic
should be of interest to anyone who is unsure if they are getting it right.
Remember the difference between over or under-pricing their work can mean
a very short future for any business. Approximately 60% customers think that
Price is the most important factor while they go for shopping in a retail stores
8. Quality in everyday life and business, engineering and manufacturing has a
pragmatic interpretation as the non-inferiority, superiority or usefulness of
something. This is the most common interpretation of the term. The quality of
a product or service refers to the perception of the degree to which the product
or service meets the customer's expectations. Quality has no specific meaning
unless related to a specific function and/or object. Quality is a perceptual,
conditional and somewhat subjective attribute. And in addition to that, more

34
than 90% of customers place quality as the most important factor than
anything else in the list to shop in a retail store.
9. More than 70% of customers place variety as an important factor to shop in a
particular retail store.
10.Brands name bears an important role while shopping of any type of goods. So
building a brand for a retail store is important as 80% of customer still prefer
to buy branded clothes in the retail store instead of local or unbranded clothes.

35
DISCUSSION
Siri is designed to protect your information and enable you to choose what you
share.

Siri Analyzes How You Use Your Devices and Apps to Provide Personalized
Suggestions and Better Search Results Using Local, On-Device Processing, and Syncs
Across Your Devices with End-to-End Encryption Using iCloud

Siri uses local, on-device processing to learn how you use your devices and apps in order
to personalize your experience. Using information stored on your device, such as your
Safari browsing history,
emails, messages,
notifications, and contacts,
as well as information
donated or contributed by
other installed apps, Siri can
suggest shortcuts and
provide suggestions in
searches, share sheet, calendar, Look Up, Safari, apps, and more. Suggestions may be
used to personalize Apple services but are not stored on Apple servers or shared with
other third-party apps. When you run a Siri-suggested shortcut, you are subject to the
app’s terms and conditions and privacy policy.

Siri uses iCloud to sync personalization across your Apple devices using end-to-end
encryption.

To Make Suggestions and Search Results More Relevant, Some Information Is Sent to
Apple and Not Associated with You.

36
When you use Siri Suggestions or Look Up, or type in Search, Spotlight, Safari search,
or #images search in Messages, any information sent to Apple does not identify you, and
is associated with a 15-minute random, rotating device-generated identifier. Your device
may send information such as location, topics of interest (for example, cooking or
basketball), your search queries, suggestions you have selected, apps you use, and
related device usage data to Apple. This information does not include search results that
show files or content on your device. If you subscribe to music or video subscription
services, the names of these services and the type of subscription may be sent to Apple.
Your account name, number, and password will not be sent to Apple.

This information is used to process your request and provide more relevant suggestions
and search results, and is not linked to your Apple ID, email address, or other data Apple
may have from your use of other Apple services.

Aggregated information may be used to

improve other Apple products and
services. Common search queries may
be shared with a web search engine to
improve search results.

Search Engine Suggestions in Safari

Safari has a single field for searches and

web addresses so you can browse the
web from one convenient place. When
Search Engine Suggestions are enabled,
Safari will ask your selected search
engine for suggestions based on what
you’ve typed.

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Preload Top Hit in Safari

With Preload Top Hit enabled, as soon as Safari determines a Top Hit based on your
bookmarks and browsing history, Safari will begin loading the webpage in the
background. If you disable this option, the page will load normally.

You Have Choice and Control

If you do not want Siri Suggestions to send your information to Apple, you can disable
Siri Suggestions in Search and Siri Suggestions in Look Up by going to Settings > Siri
& Search. To disable Safari Suggestions, go to Settings > Safari and tap to turn off Safari
Suggestions.

You can see

and control
the full list of
features that
Siri
personalizes
and apps that
Siri suggests
shortcuts for
in Settings >
Siri &
Search. To stop apps from contributing information to personalize Siri, go to Settings >
Siri & Search and tap the app name, then tap to turn off Learn from this App. To stop
app clips from contributing information to personalize Siri, go to Settings > Siri &
Search > App Clips and tap to turn off Learn from App Clips. You can also control

38
whether Siri can send you suggestions on the lock screen for each app by going to
Settings > Siri & Search and tapping to turn off Suggestions on Lock Screen.

You can disable Location Services for Siri Suggestions in Search by going to Settings >
Privacy > Location Services > System Services and tapping Location-Based
Suggestions to turn off Location Services. If you turn off Location Services on your
device, your location will not be sent to Apple. To deliver relevant suggestions, Apple
may use the IP address of your internet connection to approximate your location by
matching it to a geographic region.

If you do not want Siri personalization to sync across your devices, you can disable Siri
by going to Settings > [your name] > iCloud and tapping to turn off Siri.

By using Siri Suggestions in Search, you agree and consent to Apple’s and its
subsidiaries’ and agents’ transmission, collection, maintenance, processing, and use of
this information.

39
CHAPTER 5. CONCLUSION
The main conclusion that can be drawn is we found to be the most interesting about
Apple is how they are very innovative and early adapters. Apple is usually the first
company to come out with a new product line before anyone else. This is very risky
but it seems to be working to Apples advantage. This shows that taking risks can
sometimes make or break you and Apple has great potential and has a lot to improve.
Currently, Apple is demonstrating negative aspects of TNCs, contributing to
international debt crisis through exploitation of workers. In a way, Apple is
promoting
debt crisis in
LDCs by
accessing their
labour and raw
materials on
the cheapest
possible terms.
If it is willing
to play the role
of a beneficial
TNC, the global economy can certainly benefit. Furthermore, people in the least
developed countries, and the environment, will benefit as well. This requires a
change from all stakeholders: the company itself, the consumers, the shareholders,
and the workers. It is important for a TNC to progress towards beneficial behaviour
because this can determine people's view on progressing towards further
globalization, as influenced by neo-liberalism.

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Apple is a strong market contender with a diversified product line within the
computer and electronic gadget market. Apple's products and services are clearly
differentiated from those of its competitors. The company is economically in a good
position and can expect to have growing stream of revenue and an increase in its
share of the market every year for the near future

One of Apple's main strengths lies in its extensive brand equity. The company has a
strong advertising and branding program which has been greatly successful in
helping the company develop its strong brand image.
Another source
of strength for
Apple is its
technological
advantage over
its competitors.
The company
spends a lot
more on
research and
development activities than its competitors do. Apple has also benefitted greatly
from the strong leadership of CEO Steve Jobs who has been at the head of the
company since its very beginning.
A further factor which creates a competitive advantage for Apple is the fact that its
products have acquired a fashionable and trendy image. Apple is not only perceived
as a leader in technological achievement but is also considered to be an arbiter of
aesthetic values and its products are the leading edge of style and aesthetical design.

41
One of the unique characteristics of Apple Inc. is its reduced reliance on suppliers
as compared to its competitors. The company manufactures all or most of the parts
of its hardware and most of the software is developed in-house.
As a result of stronger branding and customer loyalty, Apple is able to charge more
for its products than its competitors do for similar products and still maintain its
market share.
One of the side-effects of Apple being a market leader in terms of technological
innovation is that Apple’s products are frequently rushed out into the market without
extensive testing which results in the first versions of Apple products being bug
ridden
which often
leads to
product
recalls.
Another
source of

considerable problems for Apple is the extensive amount of litigation the company
has been involved in both as a plaintiff and as a defender. A number of legal cases
involving Apple are currently pending.
A great opportunity for Apple comes in the form of the increasing demand for
‘Smartphones’ with such capabilities as internet access and multimedia recording
and playback etc. The iPhone is an attempt by Apple to seize this opportunity.

42
The high level of competition among technology companies means that Apple is
constantly under threat from its competitors. This threat is especially great within
the market for personal computers.
Another threat to Apple is from some of the suppliers to whom the supply of
materials and the manufacture of some components have been outsourced. The threat
can take the form of poor quality output from these suppliers.
Political factors
influencing Apple
include the increased
taxes in the current
era which force
consumers to restrict
their spending. The
recent economic
downturn has also
contributed to a drop
in sales. Social
factors affecting Apple include its image as the producer stylish and fashionable
products. Technological factors include need to have multiple features in one
product. Environmental factors influencing the company include the need for
emissions control in the manufacture of electronic products. Legal factors affecting
the company include the large number of cases the company is involved in seeking
to limit infringement of its copyright. The company has also been the subject of
copyright litigation and other litigation in various countries which has resulted in
limitations being placed on the various products and services the company offers.

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Apple’s major resources include effective leadership, its reputation in the market as
a leader in technology and style, its research work and technological expertise and
its skilled and dedicated workforce and competent management.
Recommendations to Improve Apple’s Standing in the Market
In order to improve
its standing in the
market, Apple needs
to improve product
testing prior to
launch. This should
however, not come at
the expense of
Apple’s
technological
leadership. Apple
needs to come up with speeded up testing methodologies which would enable
thorough testing and early launches, both at the same time. Apple needs to maintain
its technological leadership and its trendy image in order to remain competitive in
the high technology products market. Apple may also need to reduce its litigation
activities in order to prevent being established as a litigation happy company.
There are many avenues for further studies into Apple’s business available to
researchers. Further studies could be done to determine whether there are significant
differences between Apple’s strategy in the United States and its strategy in the rest
of the world, to compare Apple’s business strategy to that of its main competitors,
to compare the performance of Apple and its affiliates in various countries and to
determine the reasons for any differences in performance. In addition research can

44
be undertaken to study Apple’s performance and strategy in each of the international
markets the company operates in.

45
CHAPTER 6. SUGGESTIONS AND RECCOMENDATION
Apple Inc.’s success is linked to the ability to use business strengths to overcome
weaknesses and threats, and to exploit opportunities in the industry environment. A
SWOT analysis of the technology company gives strategic insights on maximizing
business growth based on its strengths and opportunities. The SWOT analysis
framework is a strategic management decision-making tool that determines the most
pressing issues facing the company, based on the internal business conditions and
the external environment. In this case, the SWOT analysis of Apple Inc. scans the
business for relevant strengths, weaknesses, opportunities, and threats (SWOT
variables), with reference to various industries and markets. The company operates
in the computing technology (hardware and software), consumer electronics, cloud
computing services, and online digital content distribution services industries. This
condition necessitates that Apple develop a diverse set of strategies to ensure its
competitiveness and business growth.

This SWOT analysis of Apple Inc. presents the strategic factors that influence the
decisions of CEO Tim Cook and managers in developing the business. With its
operations in various markets around the world, the company deals with different
sets of SWOT factors based on regional situations. Also, the Porter’s Five Forces
analysis of Apple Inc. establishes that the company faces strong competitive force
linked to the aggressiveness of other technology firms, such
as Google, IBM, Amazon.com, Samsung, Microsoft, Sony, Lenovo, Dell, and
PayPal. This competitive landscape requires innovative strategies and tactics to
achieve continuous business growth and development, and to fulfill Apple’s
corporate mission statement and corporate vision statement.

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APPLE’S STRENGTHS (INTERNAL STRATEGIC FACTORS)
This aspect of the SWOT analysis framework identifies the strengths that enable
Apple to overcome weaknesses, take advantage of opportunities, and withstand
threats in its technology business environment. These strengths are internal factors
specific to the conditions within the business organization and its technological
capabilities. In this case, the following are the most notable strengths of Apple Inc.:

1. One of the world’s strongest brands

2. High profit margins based on premium pricing
3. Effective rapid innovation processes based on long history of technological
innovation

Apple is one of the most valuable and strongest brands in the world. In the context
of this SWOT analysis, the company is capable of introducing profitable new
products, such as new lines of mobile devices, by virtue of its strong brand image.
In addition, Apple’s marketing mix or 4P involves a premium pricing strategy,
which comes with high profit margins. This internal strategic factor is a major
strength because it maximizes profits, even when sales volumes are limited, such as
in the case of MacBook laptops. Moreover, the generic competitive strategy and
intensive growth strategies of Apple Inc. involve effective rapid innovation, which
enables the business to keep abreast with the latest technologies to ensure
competitive advantages. Based on this aspect of the SWOT analysis of Apple Inc.,
the company’s strengths are difficult to compete with, thereby supporting continued
leadership in the global industry environment.

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WEAKNESSES (INTERNAL STRATEGIC FACTORS)
In this aspect of the SWOT analysis, the emphasis is on the weaknesses or
inadequacies of Apple and its technological product development and marketing
capabilities. Weaknesses are internal factors that are obstacles to business growth,
with consideration for relative performances of other technology businesses. The
following business weaknesses are the most notable in the case of Apple:

1. Limited distribution network for its goods

2. High selling prices
3. Dependence of sales in high-end market segments

Apple Inc. has a limited distribution network because of its policy of exclusivity.
For example, the company carefully selects the authorized sellers of its products,
such as iPhones and Macs. The SWOT analysis framework considers this exclusivity
strategy as a factor that limits market reach, making the company’s consumer
electronics not readily available in all areas. This weakness exists despite
exclusivity’s advantages, such as Apple’s strong control on the distribution of
products. In addition, because of its premium pricing strategy, the technology
company has the weakness of sales dependence on high-end market segments. High
prices attract customers from the middle- and high-income brackets, and prevent
customers from low-income brackets from easily purchasing Apple’s consumer
electronics. This internal strategic factor is a weakness because high-end segments
represent only a minority of the global market. Based on the internal factors in this
aspect of the SWOT analysis, Apple Inc.’s pricing and distribution strategies impose
limitations or weaknesses in the business.

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OPPORTUNITIES FOR APPLE INC. (EXTERNAL STRATEGIC
FACTORS)
This aspect of the SWOT analysis of Apple Inc. pinpoints the most significant
opportunities that are available to the business. Opportunities are external factors
based on the industry environment, such as the on-demand digital content market.
These factors influence the strategic direction of business organizations. In Apple’s
case, the following are the most significant opportunities:

1. Expansion of the distribution network for wider consumer electronics market reach
2. More widespread and aggressive marketing for higher sales volumes based on rising
demand
3. Development of new product lines in consumer electronics and online services

Apple Inc. has the opportunity to expand its distribution network. Such opportunity
relates to the weakness of the limited distribution of the company’s products, such
as smartphones and tablets. This SWOT analysis emphasizes the need to modify the
technology company’s distribution strategy. An expanded distribution network can
help Apple reach more customers in the global market. In relation, the company has
the opportunity to increase its sales volumes through aggressive marketing,
especially for mobile products. This opportunity is linked to the rising demand for
mobile access, as illustrated in the PESTEL/PESTLE analysis of Apple Inc.
Furthermore, the company has the opportunity to explore new product lines to
complement existing ones, such as online services. With further innovation, the
business can develop and introduce new products, like what it has already achieved
with the Apple Watch. Developing new product lines supports business growth,
especially against other technology firms in the international market. Thus, this

49
aspect of the SWOT analysis of Apple indicates that the business has major
opportunities for further growth despite aggressive competition.

THREATS FACING APPLE INC. (EXTERNAL STRATEGIC

FACTORS)
In this aspect of the SWOT analysis, the focus is on the threats that Apple
experiences from various sources, such as competitors like Samsung. Threats are
external factors that limit or reduce the financial performance of the technology-
focused business. The following threats are the most significant to Apple Inc.:

1. Aggressive competition involving large multinationals like Samsung, Amazon, and

Microsoft
2. Imitation involving firms that compete based on low prices
3. Rising labor costs in various countries where the company maintains production
facilities

Tough competition in the technology industry is partly because of the aggressiveness

of firms. For example, Apple competes with firms like Samsung, which also uses
rapid innovation. In the context of this SWOT analysis, aggressive competition has
a limiting effect on the business, indicating the necessity for strong fundamentals for
maintaining competitive advantages in computer software and hardware, and online
services. In addition, Apple faces the threat of imitation of some products, such as
the iPhone. Local and multinational firms could imitate the design and features of
Apple’s products. Also, rising labor costs involving contract manufacturers, such as
those in China, reduce profit margins or push selling prices even higher. Based on
the external strategic factors in this SWOT analysis, Apple Inc.’s performance is
threatened by aggressive competition and the imitation of product design.

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The internal and external factors discussed in this SWOT analysis indicate that
Apple Inc. possesses major strengths to effectively address organizational
weaknesses. The company can also use these strengths to exploit opportunities, such
as the expansion of its consumer electronics distribution network. Moreover, the
company can use its strong brand image and rapid innovation processes to
successfully develop and launch new technology product lines. However, Apple
faces the threats of aggressive competition and imitation, which are challenges
affecting players in the global market for consumer electronics, computer hardware
and software, and online digital content distribution services.

Based on the strategic issues highlighted in this SWOT analysis of Apple Inc., a
recommendation is to continue the aggressive and rapid innovation in developing
the company’s products. Technological innovation reduces the adverse effects of
imitation. Also, it is recommended that Apple further enhance the automation of its
production processes, and support the automation of its contract manufacturers, as a
way of addressing rising labor costs. Another recommendation is to establish
partnerships with more distributors to improve the overall market reach of the
company’s consumer electronic products.

SWOT ANALYSIS OF APPLE

Here’s a detailed analysis of Apple’s strengths, weaknesses, opportunities, and
threats.

Apple’s Strengths

1. Most valuable brand

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Apple is ranked # 1 for the 8th consecutive year by Interbrand – with a brand value
of $322 billion.

2. Globally Iconic

Apple is one of the most reliable company when it comes to personalized advanced
computers and smart technology devices. It has millions of loyal customers with
steady increment.

3. Top Technology

Apple was the first to introduce some of the most innovative products that have
changed the world (iPhones, iPads). Apple is still determined to build and craft
better, more proficient technology devices.

4. Brand Of Choice

It isn’t big news that Apple is a demanded brand in corporate offices. Apple has a
specific business page that offers top quality technology solutions for every
corporation’s needs.

5. Proficient Research

Apple puts dedication into its product designs. Careful study is initiated and further
research is performed to help understand customer needs and requirements.

6. Sustainability made Possible through Liam

Liam is an iPhone recycling robot that breaks down and dissects an iPhone. It strips
them all the way down to a single bolt. Most parts of an iPhone can be reused.

52
Liam is designed to yield as many reusable parts as possible. These reusable parts
are then categorized and safely stored so they can be used for new manufacturing.

7. Expansion in services

Apple has been expanding its services portfolio for many years. For example,
about 19% of Apple’s annual revenue ($53 B out of $274 B in FY 20) came from its
services, which is the second biggest contributor to its revenue after the iPhone (50%
of its revenue).

Apple’s services include digital content stores, streaming services, iCloud,

AppleCare etc. In addition, Apple has introduced many new services in 2019, such
as Apple TV+ (launched in Nov 2019), Apple news+ and Apple Card (credit card
services), Apple Arcade (game subscription).

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Apple’s Weaknesses

1. High Priced Products

Apple’s products can be considered a luxury due to their premium prices. The
products are priced for middle and high-income consumers. Low-Income consumers
can’t simply afford Apple products.

Due to their premium pricing, only middle or high-class individuals can afford their
products.

2. Limited advertisement & promotions

Apple has solidified their grounds by establishing loyal customers, even with limited
advertising resources. Apple marketing relies heavily on its iconic and flagship retail
stores.

Because of their success, Apple does not feel the need to have excessive spending
towards advertisement in comparison to other big brands such as P&G, Coca
Cola and Samsung technology.

3. Entering into area of non-competency

Apple is rapidly expanding into new services such as video content streaming, game
streaming, credit card – competing with the dominant players such
as Netflix, Disney, Citi, Chase, Paypal, etc.

They might be entering into areas in which they lack competencies; remember
the failure of Apple maps.

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4. Incompatibility With Other Software

When a customer buys an apple product, they enter the Apple universe. Apple’s
products do not support other software or technologies making them incompatible
with other devices.

Customers have to exclusively purchase Apple apps or accessories to continue using

their Apple products.

5. Allegations of Tracking

Tracking users undermines trust. Apple has been accused of using tracking apps in
its phones, which revealed the precise location of users.

Even though the latest version of Apple’s phones gives users the right to decline the
tracking, trust is difficult to regain once it is lost.

6. Unfair business practices

Apple is under investigation for unfair business practices after receiving payments
to make Google’s search engine as the default search engine for its Safari web
browser. Collusion between the two giants makes it difficult for rivals to enter and
expand into the search engine market.

Apple’s Opportunities

1. Consistent Customer Growth

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Apple has been dominating the technology sector for years now. They provide top
quality and cutting-edge technology that offers a breakthrough in customer
experience.

Their customer retention rate of 92% is phenomenal. Apple can always rely on the
power of the internet for future opportunities to gain new customers and form new
alliances.

2. Qualified Professionals

Apple’s researchers, developers, and product specialists are a team of highly

qualified professionals that have years of experience in branding consumer products.
With the expansion of their team, Apple can continuously build new opportunities.

3. Expansive Distribution Network

Apple Inc. has the opportunity to expand its distribution network. Currently, the
distribution network that Apple has is very limited and leaves room for minimal
growth.

Apple can generate higher revenue and sales if it focused on creating an expansive
distribution network. Furthermore, the company can benefit from diligent marketing
and promotions.

4. Lack of Green Technology

Apple is yet to launch products that are created using green technology. The
company has not yet implemented or participated in creating sustainable
technology that is eco-friendly.

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5. Smart Wearable Technology

Smart wearable technology will soon dominate the world. According to Forbes,
smart wearable technology device sales will double by 2022. It will become a $27
billion+ market with 233 million unit sales.

Apple has the opportunity to continue to grow beyond just Apple

watch and AirPods into other wearable categories.

6. Utilize Artificial intelligence

To increase its profit margins and have a strong market position, Apple should utilize
artificial intelligence. Recently, the company has extended its AI portfolio.

In the year 2017, Apple acquired Regaind, a French AI startup and DeskConnect, an
AI tool. The former acquisition helps Apple to integrate intelligent search to the
photos app on the iPhone, while the latter acquisition automates tasks by helping the
consumers to arrange apps and features with a string of commands.

The company should focus on extending its AI portfolio to have a strong foothold in
the future.

7. Expand Music Streaming Services

The youthful population and rapid economic growth in emerging economies offer
immense opportunities for expansion. Apple is already planning to expand its music
streaming services to 52 emerging markets in Africa and the Middle East.

8. Deliver Self-Driving Software Technology

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The demand for autonomous is increasing rapidly. Apple has the expertise needed
to deliver self-driving car technology rather than fully-functional autonomous or
electric cars.

Apple has the opportunity to focus on delivering self-driving software

technology instead of building an actual car like Tesla does.

On a Bloomberg interview, Apple CEO Tim Cook says:

” We are focusing on autonomous systems. And clearly, one purpose of autonomous

systems is self-driving cars. There are others. And we start to see it as a mother of
all A.I. projects. It’s probably one of the most difficult A.I. projects actually to work
on.”

9. Kia Motors to build Apple’s driverless car.

Apple has partnered with Kia Motors (parent company – Hyundai) to assemble
driverless electric cars in Georgia. According to the Wall Street Journal, Kia will
begin production by 2024 and produce about 100,000 vehicles in the first year.

Apple’s Threats

1. Coronavirus Outbreak

Apple is highly dependent on China for its manufacturing and supply chain. In
addition, about 14.5 % of its $274 billion in revenue came from China (a big market
for Apple). The outbreak has significantly affected and may continue to
disrupt Apple’s sales in the fiscal year 2021.

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2. Supply Chain Disruption

The recent events have significantly affected and disrupted its operations. It reported
flat revenue in Q2 of 2020 and declined to offer annual revenue estimates for
FY2020 due to supply chain uncertainties.

3. Apple Bullied By Counterfeits

Apple has become vulnerable to third world countries illegally utilizing the brand
image to sell counterfeit products. The illegal dealers sell Apple counterfeit products
at the same value as an original Apple product.

Counterfeit products can make potential customers believe that it is a product made
by Apple with low quality. big news can result in negative reviews and bad
publicity for the company.

4. Increasing Competition

Although Apple as a brand has solidified itself, it still faces threats from competitors.
With the advancement in technology, brands like Samsung, Google, and Dell are
giving Apple tough competition.

As the competition is getting stronger, Apple either has to introduce new

technologies or revise its pricing policy to stay ahead of its competition.

5. Market Penetration

There has been a significant change in market penetration by other brands in the
smartphone market. Companies like Samsung, HTC, and Lenovo are using Android
software to create new smartphones.
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Currently, Android has captured 72.23% of the market share, while Apple has
only 24.55% of the market share globally.

6. China Tariffs

US government has imposed a higher tariff on imports from China, increasing the
overall cost of the products. Consequently, it adversely affects the gross margin on
the products and may make the product more expensive for customers.

7. Lawsuits

60 class-action lawsuits have been filed against Apple. Consumers were upset and
baffled when Apple announced that it deliberately throttles CPU performance on
iPhone models with older and degraded batteries.

The tech giant said that it did so to prevent unexpected shutdowns. Despite the
clarification, consumers felt betrayed because they that Apple does not believe in
transparency. This led to a number of people filing lawsuits against the company.

The first class-action lawsuit was filed on December 21st, 2017 and alleged that
Apple’s actions not only negatively affect the resale value of their products but also
forces its users to upgrade to newer versions prematurely.

8. Backdoor Mechanism

Apple has been under constant pressure by government agencies to unlock the
iPhone via a backdoor, which means unlocking the encryption of the iPhone and
giving access to its data.

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In several instances, Apple has denied providing the backdoor mechanism because
it can be exploited by the bad guys, which eventually exposes the security of millions
of iPhone users.

9. Mark Zuckerberg criticized monopoly of iPhone’s app store

In a recent webcast, Mark Zuckerberg, Facebook’s CEO, criticized Apple for its
monopoly on App Store and hefty charges.

Mark Zuckerberg states that:

iPhone App Store ” blocks innovation, blocks competition,” and “allows Apple to
charge monopoly rents.”

Apple charges a 30% cut for in-app purchases through its app-store. The company
is often criticized because a 30% cut is a significant commission for small businesses
or app developers.

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FINAL THOUGHTS

Through this Apple SWOT Analysis report, one can learn the exclusive details of
Apple. This SWOT report is ideal for case studies. This report closely examines
Apple’s strengths, weaknesses, opportunities, and threats.

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CHAPTER 7. BIBLIOGRAPHGY

WEBSITES:
WWW.GOGGLE.COM
WWW.WIKIPEDIA.COM
HTTPS://BSTRATEGYHUB.COM

BOOKS REFFERED:
NONE

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