APPLE INC.

1.1 BRIEF HISTORY OF THE ORGANIZATION

Apple Inc., formerly known as Apple Computer, Inc., is a multinational
corporation that creates consumer electronics, personal computers, servers,
and computer software, and is a digital distributor of media content. The
company also has a chain of retail stores known as Apple Stores. Apple's core
product lines are the iPhone smartphone, iPad tablet computer, and
Macintosh computer line. Founders Steve Jobs, Steve Wozniak, and Ronald
Wayne created Apple Computer Co. on April 1, 1976, to market Wozniak's
Apple I desktop computer, and Jobs and Wozniak incorporated the company
on January 3, 1977, in Cupertino, California.

Steve Jobs and Steve Wozniak first met in mid-1971, when their
mutual friend, Bill Fernandez, introduced then 21-year-old Wozniak to 16-
year-old Jobs. Their first business partnership began later that year when
Wozniak, a self-educated electronics engineer, started to build his original
“blue boxes” that enabled one to make long-distance phone calls at no cost.
Jobs managed to sell some two hundred blue boxes for $150 each, and split
the profit with Wozniak. Jobs later told his biographer that if it hadn't been
for Wozniak's blue boxes, there wouldn't have been an Apple. Jobs and
Wozniak, also referred to collectively as “The Two Steves”, had withdrawn
from Reed College and UC Berkeley respectively by 1975.

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 Wozniak designed a video terminal that he could use to log on to the
minicomputers at Call Computer. Alex Kamradt commissioned the design
and sold a small number of them through his firm. Aside from their interest
in up-to-date technology, the impetus for the two Steves seems to have had
another source. In his essay From Satori to Silicon Valley (published 1986),
cultural historian Theodore Roszak made the point that Apple Computer
emerged from within the West Coast counterculture and the need to produce
print-outs, letter labels, and databases. Roszak offers a bit of background on
the development of the two Steves' prototype models.

In 1975, the two Steves started attending meetings of the Homebrew

Computer Club. New microcomputers such as the Altair 8800 and the IMSAI
inspired Wozniak to build a microprocessor into his video terminal and have
a complete computer. At the time the only microcomputer CPUs generally
available were the $179 Intel 8080 (equivalent to $861 in 2020), and the
$170 Motorola 6800 (equivalent to $818 in 2020). Wozniak preferred the
6800, but both were out of his price range. He watched, learned and designed
computers on paper, waiting for the day he could afford a CPU.

By March 1, 1976, Wozniak completed the machine and took it to a

Homebrew Computer Club meeting to show it off. When Jobs saw Wozniak's
computer, which would later become known as the Apple I, he was
immediately interested in its commercial potential. Initially, Wozniak
intended to share schematics of the machine for free, but Jobs insisted that
they should instead build and sell bare printed circuit boards for the
computer. Wozniak also originally offered the design to Hewlett-Packard
(HP), where he worked at the time, but was denied by the company on five
occasions. Jobs eventually convinced Wozniak to go into business together
and start a new company of their own. In order to raise the money they
needed to produce the first batch of printed circuit boards, Jobs sold his
Volkswagen Type 2 minibus for a few hundred dollars, and Wozniak sold his
HP-65 programmable calculator for $500.

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 On April 1, 1976, Apple Computer Company was founded by Steve
Jobs, Steve Wozniak, and Ronald Wayne. The company was registered as a
California business partnership. Wayne, who worked at Atari as a chief
draftsman, agreed to become a co-founder of the company in return for a
10% stake. However, Wayne was somewhat gun-shy due to the failure of his
own venture four years earlier. On April 12, less than two weeks after the
company's formation, Wayne left Apple, selling his 10% share back to the
two Steves for only $800 and leaving them as the active primary co-founders.
According to Wozniak, Jobs proposed the name “Apple Computer” when he
had just come back from Robert Friedland's All-One Farm in Oregon. Jobs
told Walter Isaacson that he was "on one of my fruitarian diets," when he
conceived of the name and thought "it sounded fun, spirited and not
intimidating ... plus, it would get us ahead of Atari in the phone book."

For more than three decades, Apple Computer was predominantly a

manufacturer of personal computers, including the Apple II, Macintosh, and
Power Mac lines, but it faced rocky sales and low market share during the
1990s. Jobs, who had been ousted from the company in 1985, returned to
Apple in 1997 after his company NeXT was bought by Apple. The following
year he became the company's interim CEO, which later became permanent.
Jobs subsequently instilled a new corporate philosophy of recognizable
products and simple design, starting with the original iMac in 1998.

With the introduction of the successful iPod music player in 2001 and
iTunes Music Store in 2003, Apple established itself as a leader in the
consumer electronics and media sales industries, leading it to drop
"Computer" from the company's name in 2007. The company is now also
known for its iOS range of smart phone, media player, and tablet computer
products that began with the iPhone, followed by the iPod Touch and then
iPad. As of June 30, 2015, Apple was the largest publicly traded corporation
in the world by market capitalization, with an estimated value of US$1
trillion as of August 2, 2018. Apple's worldwide annual revenue in 2010

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 totaled US$65 billion, growing to US$127.8 billion in 2011 and $156 billion in
2012.

CURRENT BOARD OF DIRECTORS

 Arthur D. Levinson, Ph.D.

Chairman of the Board Compensation Committee
 James A. Bell
Audit Committee
 Tim Cook
CEO Apple
 Albert Gore Jr.
Compensation Committee
Nominating Committee
 Alex Gorsky
Nominating Committee
 Andrea Jung
Compensation Committee Chair
Nominating Committee
 Monica Lozano
Audit Committee
 Ronald D. Sugar, Ph.D.
Audit Committee Chair
 Susan L. Wagner
Nominating Committee Chair
Audit Committee

1.2 VISION and MISSION

 VISION
Apple’s vision statement is “We believe that we are on the face of the
earth to make great products and that’s not changing”.

 MISSION

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 Apple’s mission statement is “to bringing the best user experience to its
customers through its innovative hardware, software, and services”.

QUALITY POLICY
Apple conducts business ethically, honestly, and in full compliance
with all laws and regulations. This applies to every business decision in every
area of the company worldwide. Apple's success is based on creating
innovative, high-quality products and services and on demonstrating
integrity in every business interaction. Apple's principles of business conduct
define the way we do business worldwide.

These principles are:

Honesty: Demonstrate honesty and high ethical standards in all business
dealings.
Respect: Treat customers, suppliers, employees, and others with respect and
courtesy.
Confidentiality: Protect the confidentiality of Apple's information and the
information of our customers, suppliers, and employees.
Compliance: Ensure that business decisions comply with all applicable laws
and regulations.

QUALITY CERTIFICATION
Various certifications have been obtained by the company including ISO
9001:2008, ISO 14001:1996 and ISO 14001:2005.
ISO 9001:2008 Quality Management System International certification
enables company to demonstrate its commitment to quality and customer
satisfaction, as well as continuously improving company’s operations.
All Apple manufacturing sites are ISO 14001 certified.
ISO 27001:2005 is an internally recognized standard that certifies cloud data
security.
IISO/IEC 27001 is an Information Security Management System standard
specifying requirements for establishing, implementing, maintaining and

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 continuously improving an organization’s Information Security Management
System.
ISO/IEC 27018 is a code of practice for the protection of personally
identifiable information (PII) in public cloud environments.

1.3 BUSINESS PROCESS OF THE ORGANISATION

Apple, being a leading technology company in the world, follows a
unique business model of making it simple for people to use the existing
technologies in the market (Francis 2009). Apple focuses on producing the
best consumer electronic products available in the market which can be sold
for the highest profit margins available in the industry. For this purpose,
Apple hires some of the world’s best designers and engineers. Below is the
brief description of business process followed by Apple:

 Apple identifies products where other producers have focused on adding

more and more features rather than making it simple for people to use
the product. While the addition of more features can create more demand
in the initial days, the same can make the product overly complicated and
customers will find it difficult to use it. For e.g. addition of new features to
Microsoft’s Word created additional demand in the initial days, but made
the product more complicated for general users later. The resulting
complication in products makes it difficult to be sold in the mass market.

 The second step involves determining whether Apple can come up with a
new product which can be made dramatically simple for users and
capture the important features which were developed by other users in
the industry.

 The third step involves identifying whether the product/platform to be

developed by the company can create a compelling competitive
advantage to the company in the long term. This involves checking
whether any of the existing vendors provide an integrated platform for
devices and other services (Francis 2009).

 Production of the products is mostly outsourced to the companies in

countries like China where it can do for a fraction of the cost of that of
producing in the US or Europe.

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  The business process of Apple also involves revising the products at
regular intervals (mostly yearly) depending on factors like product cycle
and cost. New releases incorporate the technological advances in the
market. But Apple also ensures that updated releases also come up with
some additional improvements like improved fit-and-finish, looks,
fashion, etc.

PRODUCT PROFILE
Apple has a large compilation of products and services offered to the
target market. Some of them are listed below:

 MacBook, Apple TV, Safari

 iPod digital music player

 Mac OS X operating system

 iTunes Music Store

 iPhones, iPad, AirTag

 AirPods, Apple watch

1.4 CUSTOMERS OF THE ORAGANIZATION

The Company’s customers are primarily in the, SMB, education,
enterprise and government markets. The Company sells its products and
resells third-party products in most of its major markets directly to
consumers and SMBs through its retail and online stores and its direct sales
force. The Company also employs a variety of indirect distribution channels,
such as third-party cellular network carriers, wholesalers, retailers, and
value-added resellers. The Company’s net sales through its direct and
indirect distribution channels accounted for 30% and 70%, respectively, of
total net sales.
The Company believes that sales of its innovative and differentiated
products are enhanced by knowledgeable salespersons who can convey the

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 value of the hardware and software integration, and demonstrate the unique
solutions that are available on its products. The Company further believes
providing direct contact with its targeted customers is an effective way to
demonstrate the advantages of its products over those of its competitors and
providing a high-quality sales and after-sales support experience is critical to
attracting new and retaining existing customers.

1.5 COMPETITORS OF THE COMPANY

Apple Inc. is an American multinational technology company that
specializes in consumer electronics, computer software and online services
The top 5 Apple competitors:
1) Samsung
2) Microsoft
3) Sony
4) Dell
5) Google

1) Samsung:
Samsung, South Korean company that is one of the world's largest
producers of electronic devices. Samsung specializes in the production of
a wide variety of consumer and industry electronics, including
appliances, digital media devices, semiconductors, memory chips, and
integrated systems.

2) Microsoft:
Microsoft Corporation is an American multinational technology
corporation which produces computer software, consumer electronics,
personal computers, and related services.

3) Sony:
Sony Group Corporation is a Japanese multinational conglomerate
corporation. it operates as one of the world's largest manufacturers of

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 consumer and professional electronic products, the largest video game
console company and the largest video game publisher.

4) Dell:
Dell is an American multinational computer company that deals in
manufacturing, selling, repairing of computer and related parts (products
and services).

5) Google:
Google is an American multinational technology company that
specializes in Internet-related services and products, which include online
advertising technologies, a search engine, cloud computing, software, and
hardware.

1.6 STRATEGIES - BUSINESS, PRICING, MANAGEMENT

 BUSINESS STRATEGY
Apple business strategy can be classified as product
differentiation. Specifically, the multinational technology company
differentiates its products and services on the basis of simple, yet
attractive design and advanced functionality.

1. Strengthening Apple ecosystem

Apple devices and software sync easily and work well with each
other. Applications work on multiple Apple devices at the same time and
there is no much difference in user interfaces. However, the same items
do not pair with products of other companies, thus creating the likes of a
closed ecosystem. Apple’s ecosystem creates switching costs for its
customers to the competition. The ecosystem also provides the
opportunities to leverage relationships with existing customers to offer
other products and services.

2. Customer Privacy

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 Apple has always made it clear that it values customer privacy and
has shown to handle its customer’s data much better than the rest of its
competitors. During CES 2020, Apple’s senior director for global privacy
mentioned Apple’s take on privacy as –
• Minimize the amount of personal data collected from its users.
• Providing highly secured cloud storage (iCloud)
• Providing tools for users to be able to maintain their privacy

 PRICING STRATEGY
Apple’s pricing strategy relies on product differentiation, which
focuses on making products unique and attractive to its consumer base.
Apple has been successful at differentiation and thus creating demand for
its products. This combined with their brand loyalty, allows the company
to have power over their pricing. By establishing the loyal customer base
and keeping their prices high, Apple has set up an artificial barrier to
entry for their competitors.
The pricing of something usually depends on three major factors:
1. The cost of raw materials and services involved in making the product.
2. The miscellaneous costs which include sales tax import and export
duties etc.
3. Profit that the manufacturers take.
Decoy Effect is a pricing strategy of Apple
The Decoy Effect is a phenomenon where the consumers will tend to have
a change in preference between two options when presented with a third
option that is asymmetrically dominated.
In 2019, Apple used this effect where the iPhone 11 was priced at $649,
while the iPhone 11 Pro was priced at $999 and the iPhone 11 Pro Max at
$1099. Here, the iPhone 11 Pro was acting as the decoy.

 MARKETING STRATEGY
Apple marketing strategy is based on the founder Steve Jobs’s
philosophy that customers do not always know what they want.

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 Accordingly, instead of conducting marketing researches to identify
customer needs and wants, the multinational technology company prefers
to install innovative features and capabilities in their products, making
customers to want Apple products. Apple marketing strategy expresses
the brand in minimalist, yet highly efficient ways.

1. Positive reviews in the media

Apple systematically benefits from the buzz created by positive
reviews in the media – both, traditional, as well as, social media. The
company achieves positive reviews due to high quality and advanced
features and specifications of its products and services. Moreover, the
multinational technology company proactively contributes to the creation
of positive reviews in the social media. For example, Apple usually sends
new iPhones to selected technology and mainstream media outlets to
allow them to publish reviews before the phones went on sale.
2. Effective use of product placement
An important feature of Apple marketing strategy is that the
world’s largest IT company by revenue does not use Pay-Per-Click (PPC)
online ads on with Google or Facebook. Instead, marketing strategy of
Apple relies mainly on two pillars – product placement (especially with
celebrities and in popular shows) and the buzz created by positive
reviews in the media. The most notable cases of Apple’s product
placement include the movies Transformers 4, Birdman, The Verge,
Birdman and Boyhood, as well as, prominent TV shows such as Saturday
Night Live and The Daily Show.

1.7 CSR ACTIVITIES

Apple corporate social responsibility (CSR) programs and initiatives

are led by Lisa Jackson, Vice President of Environmental Initiatives, reporting
directly to CEO Tim Cook. More than 1 million people work in Apple supplier

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facilities and as such, the company’s operations have considerable
implications on the society. It should to be noted that “Steve Jobs wasn’t
known for philanthropy. Some wondered if he made anonymous donations
to charity, some criticized him for his lack of public giving, while others
defended him”.

However, with Tim Cook assuming Apple leadership in 2011, the

focus on CSR aspect of the business has increased to a considerable extent.
Tim Cook is a member of Paulson Institute’s CEO Council for Sustainable
Urbanization, working with other CEOs of top Chinese and Western
companies to advance sustainability in China.

 Apple Educating and Empowering Workers

The multinational technology company provided training courses
to about 4 million people since 2008. The tech giant has competitive
employee benefits practices. For example, expectant mothers can take up
to four weeks before a delivery and up to 14 weeks after a birth, while
fathers and other non-birth parents are eligible for up to six weeks of
parental leave. Apple suppliers paid back USD 32.2 million recruitment
fees to their 36,599 employees since 2008.
 Labour and Human Rights at Apple
Apple enforces The Supplier Code of Conduct that is claimed to be
the toughest in the electronics industry. Apple educated more than 19.4
million employees of its suppliers on their rights since 2008. In 2018,
Apple removed five mineral suppliers from is supply chain for failing to
pass or not being willing to participate in human rights audits. The
multinational technology company interviewed more than 52000
supplier employees about their workplace experience

 Apple and Gender Equality and Minorities

Tim Cook is the only openly gay CEO of a Fortune 500 company
and he has been praised as a strong champion of workforce diversity The
company reached equal pay to employees in 2016. 53% of new
employees in the US, who joined the company in 2020 are from

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 historically underrepresented groups in tech. These include women and
people who identify as Black, Hispanic, Native American, or Native
Hawaiian & Other Pacific Islander.

 Waste Reduction and Recycling by Apple

Apple offers recycling programs in 99 percent of the countries it
operates and the company has diverted more than 508 million pounds of
electronic waste from landfills since 2008. Supplier sites committed to
achieving zero waste increased by 53% in 2019. In 2016 the company
introduced Liam, a line of robots that can disassemble an iPhone every 11
seconds and sort its high-quality components so they can be recycled.

 Apple and Sustainable Sourcing

All the fibers Apple uses in product packaging are 100%
responsible sourced All suppliers of tin, tantalum, tungsten, gold, and
cobalt smelters and refiners participate in third-party audits. The
company partnered with The Conservation Fund to protect 36,000 acres
of sustainable forest in North Carolina and Maine and more than 13,000
metric tons of wood was harvested responsibly. Apple aims to contribute
to transition up to 1 million acres of forest, across five southern
provinces, into responsible management by 2020.

1.8 IMPORT/EXPORT
As a global technology company, Apple is committed to complying
with all applicable trade regulations in all countries in which we operate,
including, but not limited to, all export and sanctions regulations. It is our
policy to continually adhere to these regulations in all activities that we
engage in. All Apple products qualify as mass market products and are
subject to the US Export Administration Regulations (EAR) when exported
from the United States. All classifications provided below are for the
purposes of complying with the EAR for exports from the US and subsequent
reexports. Apple products are not controlled on the Dual-Use Goods and
Technologies List of the Wassenaar Arrangement.

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 PROHIBITED DESTINATIONS
The U.S. holds complete embargoes against North Korea and Syria.
The exportation, re-exportation, sale or supply, directly or indirectly, from
the United States, or by a U.S. person wherever located, of any Apple goods,
software, technology (including technical data), or services to any of these
countries is strictly prohibited without prior authorization by the U.S.
Government.

DENIED PARTIES
Apple products may not be exported or re-exported to anyone on the
U.S. Treasury Department’s list of Specially Designated Nationals or the U.S.
Department of Commerce Denied Person’s List or Entity List, without
required authorization.

1.9 COLLABORATION AND EXPANSION PLANS

 COLLABORATION
Apple aren’t the only ones who benefited, a lot of suppliers and
distributors also greatly profited from their success. Some companies are
more reliant on Apple than others – but they all gain significant profit
from it. Here are 5 important companies which will be impacted by
changes in Apple

Verizon Communications
Verizon has initially lost out on the iPhone, as Apple went with
AT&T in 2007. However, in February of 2011, the tables turned and Apple
decided to partner up with Verizon regarding the new iPhone 4. In just
one debut weekend, around one million iPhones were sold. 60% of these
sales came from pre-orders. Verizon sold around 4.5 million new iPhones
in the first six months

IDB Mobile Technology

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 IDB Mobile Technology is one of the closest initial business
partners of Apple. IDB Founder Chris Tomic was one of three external
first consultants for the operating system of the iPhone from 2007 until
2011. For IDB Mobile Technology the iPhone operating system was a
major hit and it had over 3 million upgrade downloads in the first few
hours. When Apple announced that Steve Jobs will step down as CEO,
Chris Tomic, the CEO and chairman of IDB Mobile Technology had nothing
to say but praises. He also said that he is looking forward to collaborating
with the new future CEO.

Foxconn
Foxconn Technology Group is the largest electronics manufacturer
in the world. Foxconn is the trade name of Hon Hai Precision Industry –
the largest exporter in the region of Greater China. This tech giant is
assembling all Apple’s products across China and Taiwan. However,
Foxconn came under fire last year, after series of suicides at the Shenzhen
plant which brought into question the working conditions under which
employees were working under. The company has set suicide hotlines,
counselling and installed safety nets at the plants. They are trying to cope
with rising labour costs in China and to meet this challenge, the company
wants to switch to the use of robotics. Reportedly, their plan is to deploy
one million robots within three years.

TPK Holdings
TPK Holdings is the largest touch-panel supplier in the world with
30 customers coming from the U.S.A., Japan and South Korea. This
Taiwanese company is also the largest supplier for Apple’s iPads and
iPhones. More than 70% of their revenue of $1.12 billion this year has
come from Apple. The robust sales of Apple’s products have significantly
boosted this company and the stocks are not expected to go down any
time soon.

Quanta Computer

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 Quanta Computer is based in Taiwan and they manufacture all the
iMac and MacBook line computers. Their relationship with Apple dates all
the way back to the second-generation Wall Street PowerBooks in 1998.
Quanta is also the largest manufacturer of notebook computers in the
entire world. Besides Apple, they are also supplying brands like Hewlett-
Packard and Gateway. Their business is so extensive that one out of every
3 laptops in the world is manufactured by this firm. However, the
company has been under pressure lately, reporting a drop in sales.

 EXPANSION

Apple is on track to meet its 2018 goal of creating 20,000 new jobs
in the US by 2023. With this new commitment, Apple is setting a target of
creating 20,000 additional jobs in states across the country over the next
five years.

For now, there’s no word on when support will be available for the
new regions. However, Apple has asked developers to log into their
accounts on its developer website and accept the updated license
agreements in order to make their apps accessible when the time comes.

Several publications and analysts predicted the failure of Apple

Stores. However, the Apple retail program established its merits,
bypassing the sales-per-square-foot measurement of competing nearby
stores, and in 2004 reached $1 billion in annual sales, the fastest of any
retailer in history. Sales continued to grow, reaching $1 billion a quarter
by 2006. Then-CEO Steve Jobs said that "People haven't been willing to
invest this much time and money or engineering in a store before", adding
that "It's not important if the customer knows that. They just feel it. They
feel something's a little different." In 2011, Apple Stores in the United
States had an average revenue of $473,000 for each employee.

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 According to research firm Retail Sales, the Apple Store chain
ranked first among U.S. retailers in terms of sales per unit area in 2011,
almost doubling Tiffany, the second retailer on the list. On a global level,
all Apple Stores had a combined revenue of US$16 billion. Under the
leadership of Ron Johnson, the former senior Vice President of Retail
Operations, the Apple Stores have, according to an article in The New
York Times, been responsible for "turning the boring computer sales floor
into a sleek playroom filled with gadgets". The Apple Stores have also
been credited with raising the company's brand equity, with Scott
Galloway, Professor of Marketing at New York University Stern School of
Business, stating that the Stores are the "temple to the brand which is this
unbelievable experience called an Apple Store, and then you have this
very mediocre experience called an AT&T or Verizon connect your phone
experience for Samsung and the other Android players".

Apple has since re-established ties with major big box retailers like
Best Buy and Staples. Authorized Apple resellers have a dedicated store-
within-a-store section, offering a distinctive Apple-style experience to
showcase products. The relationship with Best Buy calls for the company
to send Apple Solutions Consultants (ASCs) to train Best Buy employees
to be familiar with Apple's product lineup.

In an interview with Funke Mediengruppe in May 2021 Deirdre

O'Brien commented, "Apple is sticking to its plan to open more stores
around the globe in the future.

1.10 SWOT ANALYSIS OF THE COMPANY

 Apple’s Strengths
1. Globally Recognized:
Apple is the most recognized and reliable company when it comes to
smartphones, pc and other smart technologies having a large number
loyal customer.

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 2. Brand:
Apple is no doubt a top brand which is chosen by many households
and corporate offices. It has a brand value 263.38 US billion dollars as
of 12th October 2021.

3. Wide range of Products:

Apple offers a wide range of products, which allows them to make a
profit. Mac, iPod, iPhone, iPad, Apple Watch, Apple TV, Software,
Electric Vehicles, and Apple Energy are its product lines.

4. 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. 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.

 Apple’s Weakness:
1. High Priced Products:
Apple are highly priced products it is nearly impossible to be afforded
by a common man. Only high-class individuals and maybe middle-
class individuals can afford the products.

2. Incompatibility with Other Systems:

When a customer buys an Apple product, they enter into the Apple
Universe that is the customer cannot use third party software and
switching to android to iOS makes it difficult for the people to use the
product till they get used to it.

3. Allegations of Tracking:

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

4. Limited Distribution Network:

Apple Inc. has a limited distribution network because it sells its
products by itself. Unlike other smartphones products you can easily
get by just walking into a phone store, it's very rare to get Apple
products like that. Most people who buy, do so directly from their
website. The major disadvantage of this is that it limits market reach.

 Apple’s Opportunities:
1. Loyal Customers:
Due to its high market share and brand recognition, Apple is
experiencing increased demands for its various devices. People who
use apple electronics stay loyal to the brand by showing interest in
the upcoming devices as well.

2. Expansion 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.

3. Smart Wearable Technology:

Smart wearable technology will soon dominate the world. Apple has
the opportunity to continue to grow beyond just Apple watch and
AirPods into other wearable categories.

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 4. Addition to Product Line:
Apple’s small lineup of products only help it capture a specific portion
of the smartphone market. They should add more products and
services to their portfolio which can help them compete against other
technology leaders. For example, Apple Pay has been a good addition
alongside Google Pay or other payment options now available
worldwide.

 Apple’s Threats:
1. Technological Changes:
Consumer electronics are on the cutting edge of technology almost
every day. A significant challenge for the company will be keeping up
with the latest trends. Apple has introduced some groundbreaking
products so far. However, Apple has yet to announce its new product
strategy.

2. New competitors:
Apple still faces threats from competitors despite its prominence as a
brand. The advancements of technology have allowed Samsung,
Google, and Dell to challenge Apple. The most serious threat is the
appearance of strong competitors who offer similar products at a
lower price. Samsung offers both high-end and low-cost products.

3. Coronavirus Outbreak:
Apple’s manufacturing and supply chain are heavily reliant on China.
Furthermore, China accounted for around 14.5 percent of its $274

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 billion in revenue. The outbreak has had a considerable impact on
Apple’s revenues and may continue to do so in the fiscal year 2021.

4. Market Potential for Tablets and Smartphones:

There has been a decline of 3% in smartphone demand throughout
history. An individual keeps a smartphone for about 2.5 to 3 years
after they purchase it. Most people do not see any compelling reason
to buy a new mobile phone when their old one works perfectly well.
The sales of smartphones have slowed as a result.

1.11 ORGANIZATION CHART

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 TIM COOK,
CEO

Senior Vice Chief Design Chief Operating

Vice Presidents
President Officer Officer

User Interface
Retail
Design

Internet
Software and Communication
Services

Software Industrial
Engineering Design

Chief Financial Environment,

Officer Policy and Social
Intiatives

Hardware
Engineering Marketing
Communication

Worldwide
Marketing Dean, Apple
University

General Counsel Worldwide

Human
Resources

Hardware
Technologies

2.1BREIF HISTORY OF THE INDUSTRY

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 This article details the history of electronic industry. Chambers
Twentieth Century Dictionary (1972) defines electronics as "The science and
technology of the conduction of electricity in a vacuum, a gas, or a
semiconductor, and devices based thereon".
Electronic laboratories (Bell Labs, for instance) created and
subsidized by large corporations in the industries of radio, television, and
telephone equipment, began churning out a series of electronic advances. The
electronics industry was revolutionized by the inventions of the first
transistor in 1948, the integrated circuit chip in 1959, and the silicon
MOSFET (metal-oxide-semiconductor field-effect transistor) in 1959. In the
UK, the subject of electronic engineering became distinct from electrical
engineering as a university-degree subject around 1960. (Before this time,
students of electronics and related subjects like radio and
telecommunications had to enroll in the electrical engineering department of
the university as no university had departments of electronics. Electrical
engineering was the nearest subject with which electronic engineering could
be aligned, although the similarities in subjects covered (except mathematics
and electromagnetism) lasted only for the first year of three-year courses.)
Electronic engineering (even before it acquired the name) facilitated the
development of many technologies including wireless telegraphy, radio,
television, radar, computers and microprocessors.

For its first fifty years the phonograph turntable did not use
electronics, the needle and sound-horn were purely mechanical
technologies. However, in the 1920s, radio broadcasting became the basis of
mass production of radio receivers. The vacuum tubes that had made radios
practical were used with record players as well, to amplify the sound so that
it could be played through a loudspeaker. Television was soon invented, but
remained insignificant in the consumer market until the 1950s.

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 The first working transistor, a point-contact transistor, was invented
by John Bardeen and Walter Houser Brattain at Bell Laboratories in 1947,
which led to significant research in the field of solid-state semiconductors in
the early 1950s. The invention and development of the earliest transistors at
Bell led to transistor radios. This led to the emergence of the home
entertainment consumer electronics industry starting in the 1950s, largely
due to the efforts of Tokyo Tsushin Kogyo (now Sony) in successfully
commercializing transistor technology for a mass market, with affordable
transistor radios and then transistorized television sets.
Other important sectors that have made great advances since the
1970s include laser and optical electronics, digital electronics, and
microwave electronics. Advances in the field of electronics have also played a
key role in the development of space technology and satellite
communications; inaugurated a revolution in the computer industry that led
to the introduction of the personal computer; resulted in the introduction of
computer-guided robots in factories; produced systems for storing and
transmitting data electronically; greatly expanded the market for popular
music and culture; and, in the process, transformed life at home, the office,
and the factory. Many of these innovations, such as the transistor, had their
origins in military research, which needed increasingly complex electronic
devices for modern high-tech warfare.
In the 1960s, the U.S. consumer electronics industry went into decline
as manufacturers were unable to compete with the quality and pricing of
foreign products, especially the electronic goods produced by Japanese
companies such as Sony and Hitachi. By the 1980s, however, U.S.
manufacturers became the world leaders in semiconductor development and
assembly. In the 1990s semiconductors were essential components of
personal computers and most other electronic items (including cellular
telephones, televisions, medical equipment, and smart appliances). While U.S.
companies are still a major presence in the semiconductor industry
(representing about 40% of world sales in 1998), the consumer items
themselves are mostly made overseas. Worldwide electronic sales were
nearly $700 billion in 1997.

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 The history of computing hardware covers the developments from
early simple devices to aid calculation to modern day computers. Before the
20th century, most calculations were done by humans. Early mechanical tools
to help humans with digital calculations, like the abacus, were referred to as
calculating machines or calculators (and other proprietary names). The
machine operator was called the computer.

Charles Babbage, an English mechanical engineer and polymath,

originated the concept of a programmable computer. Considered the "father
of the computer", he conceptualized and invented the first mechanical
computer in the early 19th century. After working on his revolutionary
difference engine, designed to aid in navigational calculations, in 1833 he
realized that a much more general design, an Analytical Engine, was possible.
The input of programs and data was to be provided to the machine via
punched cards, a method being used at the time to direct mechanical looms
such as the Jacquard loom. For output, the machine would have a printer, a
curve plotter and a bell. The machine would also be able to punch numbers
onto cards to be read in later. It employed ordinary base-10 fixed-point
arithmetic. The Engine incorporated an arithmetic logic unit, control flow in
the form of conditional branching and loops, and integrated memory, making
it the first design for a general-purpose computer that could be described in
modern terms as Turing-complete.

There was to be a store, or memory, capable of holding 1,000 numbers

of 40 decimal digits each (ca. 16.7 kB). An arithmetical unit, called the "mill",
would be able to perform all four arithmetic operations, plus comparisons
and optionally square roots. Initially it was conceived as a difference engine
curved back upon itself, in a generally circular layout, with the long store
exiting off to one side. (Later drawings depict a regularized grid layout.) Like
the central processing unit (CPU) in a modern computer, the mill would rely
on its own internal procedures, roughly equivalent to microcode in modern
CPUs, to be stored in the form of pegs inserted into rotating drums called

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"barrels", to carry out some of the more complex instructions the user's
program might specify.
The first aids to computation were purely mechanical devices which
required the operator to set up the initial values of an elementary arithmetic
operation, then manipulate the device to obtain the result. Later, computers
represented numbers in a continuous form (e.g. distance along a scale,
rotation of a shaft, or a voltage). Numbers could also be represented in the
form of digits, automatically manipulated by a mechanism. Although this
approach generally required more complex mechanisms, it greatly increased
the precision of results. The development of transistor technology and then
the integrated circuit chip led to a series of breakthroughs, starting with
transistor computers and then integrated circuit computers, causing digital
computers to largely replace analogue computers. Metal-oxide-
semiconductor (MOS) large-scale integration (LSI) then enabled
semiconductor memory and the microprocessor, leading to another key
breakthrough, the miniaturized personal computer (PC), in the 1970s. The
cost of computers gradually became so low that personal computers by the
1990s, and then mobile computers (smartphones and tablets) in the 2000s,
became ubiquitous.

Mohamed M. Atalla's surface passivation process, developed at Bell in

1957, led to the planar process and planar transistor developed by Jean
Hoerni at Fairchild Semiconductor in 1959, from which comes the origins of
Moore's law, and the invention of the MOSFET (metal–oxide–silicon field-
effect transistor, or MOS transistor) by Mohamed Atalla and Dawon Kahng at
Bell in 1959. The MOSFET was the first truly compact transistor that could be
miniaturised and mass-produced for a wide range of uses, enabling Moore's
law and revolutionizing the electronics industry. It has since been the
building block of modern digital electronics, and the "workhorse" of the
electronics industry.

Integrated circuits (ICs) followed when manufacturers build circuits

(usually for military purposes) on a single substrate using electrical

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 connections between circuits within the chip itself. The most common type of
IC is the MOS integrated circuit chip, capable of the large-scale integration
(LSI) of MOSFETs on an IC chip. MOS technology led to more advanced and
cheaper consumer electronics, such as transistorized televisions, pocket
calculators, and by the 1980s, affordable video game consoles and personal
computers that regular middle-class families could buy. The rapid progress of
the electronics industry during the late 20th to early 21st centuries was
achieved by rapid MOSFET scaling (related to Dennard scaling and Moore's
law), down to sub-micron levels and then nanoelectronics in the early 21st
century. The MOSFET is the most widely manufactured device in history, with
an estimated total of 13 sextillion MOSFETs manufactured between 1960 and
2018

2.2 BUSINESS PROCESS OF THE INDUSTRY

This section will focus on Apple’s product development in general.

 Apple’s Product Development Process may be one of the most

successful design processes ever implemented. With a valuation that
exceeds $2 trillion, there’s a lot that designers can learn from Apple
and introduce into their own design environments.
 The Apple Executive Team holds a regular Monday meeting to
examine every single product that the company has in design phase at
that point in time. This isn’t as daunting as it may sound; one of the
keys to Apple’s success is that they don’t work on hundreds of new
products at once. Instea;d, resources are concentrated on a handful of
projects that are expected to bear fruit rather than being diluted over
many lesser projects.
 If a product cannot be reviewed at one meeting – it’s automatically at
the top of the agenda for the next meeting. In practice, this should
mean that every single Apple product is inspected by the executive
team at least once a fortnight. This keeps delays in decision making to
a minimum and enables the company to be very lean with its approach
to design.

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  Apple does very little of its own manufacturing. Instead, it relies on
contract outsourcing companies like Foxconn (one of the largest
employers in the world) to do this for them. This removes much of the
headache of manufacturing for Apple whilst keeping production costs
as low as possible.
 The design process at Apple is not over when manufacturing begins. In
fact, Apple iterates the design throughout manufacturing. The product
is built, it’s tested and reviewed, then the design team improves on it
and it’s built all over again. These cycles take 4-6 weeks at a time and
may be run many times over a product’s development lifecycle.

2.3 MARKET DEMAND AND SUPPLY-CONTRIBUTION TO GDP-REVENUE

GENERATION
The global computer hardware market is expected to decline from
$934.9 billion in 2019 to $897.6 billion in 2020 at a compound annual
growth rate (CAGR) of -4%. The decline is mainly due to economic
slowdown across countries owing to the COVID-19 outbreak and the
measures to contain it. The market is then expected to recover and grow at a
CAGR of 5% from 2021 and reach $1036.6 billion in 2023.
The global consumer electronics market size was USD 729.11 billion
in 2019. The market is projected to grow from USD 689.45 billion in 2020 to
USD 989.37 billion in 2027. The impact of COVID-19 has been
unprecedented and staggering, with consumer electronics witnessing a
negative demand across all regions.
The Consumer Electronics (CE) industry is amongst the most
dynamic today. Products that did not exist until a decade ago have
undergone rapid change, spawning an endless chain of innovations and new
products. As an example, the iPod which was launched in October 2001 has
completely transformed the way consumer electronic devices are designed,
manufactured and used. Today, there is an amazing array of tablets, smart
phones, 3-D TVs, cameras that project images and GPS devices in the market
to fit every need and wallet. These devices are witnessing growing demand

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 because they are changing the way people interact, consume entertainment,
manage their finances and organize their lives.

 CONTRIBUTION TO GDP-REVENUE GENERATION

While government support and plans for economic development of
the electronics industry is beneficial, the claims for current levels of
production and production targets invite some scrutiny. According to
electronics market data published by IHS Markit Technology group in its
Application Market Forecast Tool for Q2 2018, total revenues for
electronics production in India is forecast to be $34.5 billion in 2018, or
1.5% of total electronics production worldwide. IHS Markit’s forecast
calls for India electronics equipment production to grow to $40 billion by
2022
.
2.4 LEVEL AND TYPE OF COMPETITION – FIRMS OPERATING IN THE
INDUSTRY
 COMPETITIVE ADVANTAGES IN ELECTRONICS INDUSTRY

Electronics is one of the rapidly evolving and highly innovative

industries, where competition is tough and rigorous. Here are a few
competitive advantages that can determine whether a company will
remain competitive in the electronics industry.

Advancements in Technology:

Technology has been and will continue to be a determining factor

on how sustainable and profitable a company in the electronics industry
will be. Companies will have to invest more in R&D, restructure, and
become more service-oriented by leveraging such technological
advancements as the Internet of Things (IOT).

Globalization:

The internet is giving companies in the electronics industry a low-

cost channel for retail distribution. Products can now be shipped to

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 customers in any place in the world and reach them within a day or two.
Companies are now competing on matters price and efficiency on a global
level.

Information:

Information is proving to be a competitive advantage in the fast-

paced electronics industry. Obtaining, processing, and transmitting
information is becoming less costly. By leveraging acquired knowledge,
companies can rethink and perform comprehensive analysis of their
product development, design and sales strategies.

 FIRMS OPERATING IN THE ELECTRONICS INDUSTRY

 Samsung Electronics:

At the forefront of an evolving electronics market are

companies like Apple, innovating with iPhones and Samsung
with their Samsung Galaxy devices

 Hewlett-Packard (HP):

HP is Manufacturers, suppliers and exporters of

printers, laptops, computers, digital cameras, servers, storage,
networking, software, enterprise solutions.

 Intel:

Intel is a global computer chip supplier to leading

technology companies such as Apple, Lenovo, HP, and Dell.

 Huawei:

Huawei is a Chinese multinational technology company

that specializes in manufacturing and selling consumer
electronics and telecommunications equipment.

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2.5 PRICING STRATEGIES IN THE INDUSTRY
There are so many industries are involved in apple company, some of
them is computer software, computer hardware, consumer electronics etc.

Price-Setting Strategies of Electronics Sellers

Setting the overall price position against other products in the
assortment, or against competitors, is always a key challenge in consumer
electronics.

• Cost-Plus Pricing
• Competitive Pricing
• Value-Based Pricing

1) Cost-Plus Pricing
Cost-plus pricing is a pricing strategy in which the selling price,
of goods and services, is determined by adding a specific fixed mark-
up percentage to a singular product's unit cost.

2) Competitive Pricing
Competitive pricing is the process of selecting strategic price
points to best take advantage of a product or service-based market
relative to competition. Setting product prices at, above or below the
prices of the same or comparable products sold elsewhere.

3) Value-Based Pricing

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 Value-based pricing sets prices based on customer perception
of a product’s worth. The most highly-valued products are high-end
models from manufacturers with extensive brand recognition.

2.6 INDUSTRIAL PERFORMANCE GLOBAL, NATONAL AND REGIONAL BASIS

 INDUSTRIAL PERFORMANCE ON GOBAL BASIS

The COVID-19 pandemic forced people around the world to work,
learn, and spend their free time at home, driving the demand for
consumer electronics. However, due to the global shortage of chips and
disruptions to supply chains, many electronics products continue to be in
short supply. The global electrical and electronics industry thus did not
grow in 2020 compared with the previous year. As problems related to
COVID-19 are increasingly being addressed, the industry is expected to
experience a period of growth in 2021 and 2022. Between 2020 and
2021, the industry is projected to grow by nine project and between 2021
and 2022, the industry is expected to grow by six percent, globally.

Electronic Devices are highly penetrated products among a wide

range of technical consumer goods in households. On one side, television
sets with wider screen sizes are receiving popularity, whereas, on the
other side, the miniaturization of electrical components is on the rise.
Companies are focusing on developing high performing and convenient to
use devices owing to the increasing consumer demand. For instance, in
September 2020, Samsung released its new smart tablet Galaxy Tab
Active 3. It is equipped with an enhanced touch sensitivity feature that
enables the user to operate the tab easily with fingers, even while wearing
hand gloves.

 INDUSTRIAL PERFORMANCE ON NATIONAL BASIS

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 Indian appliance and consumer electronics (ACE) market reached
Rs. 76,400 crore (US$ 10.93 billion) in 2019. Appliances and consumer
electronics industry is expected to double to reach Rs. 1.48 lakh crore
(US$ 21.18 billion) by 2025. India's consumer digital economy is
projected to reach US$ 800 billion by 2030, from US$ 85-90 billion in
CY20, driven by increase in online shopping.

According to Retailers Association of India (RAI), sales of

consumer electronics and appliances in the third quarter of FY21
increased by 23.5%, as compared with same period in the last fiscal year.
Electronics hardware production in the country increased from Rs. 4.43
trillion (US$ 72.38 billion) in FY19 to Rs. 5.47 trillion (US$ 89.38 billion)
in FY20. Demand for electronics hardware in India is expected to reach
US$ 400 billion by FY24. The ‘National Policy on Electronics 2019’ is
targeting production of one billion mobile handsets valued at US$ 190
billion by 2025, out of which 600 million handsets valued at US$ 100
billion are likely to be exported. In 2020, the Indian government targeted
China with new restrictions on colour television and mobile phones.
According to a report by Care Ratings, consumer electronics and
appliances manufacturers are set to increase their production by 5-8% in
FY22, after witnessing a contraction in demand in FY21.

 INDUSTRIAL PERFORMANCE ON REGIONAL BASIS

North America was the largest region in the global computer
hardware market, accounting for 43% of the market in 2019. Asia Pacific
was the second largest region accounting for 29% of the global computer
hardware market. Africa was the smallest region in the global computer
hardware market.
In 2022, the electronics industry in the Americas is expected to
grow by around five percent year-on-year. The market is expected to
continue the recovery from its slump in 2020 when the market contracted
by three percent, compared with 2019. The market was valued at around

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 880 billion euros in 2019, accounting for roughly 20 percent of the global
market, which was sized at 4.6 trillion euros in 2019.

2.7 PROSPECTS AND CHALLENGES IN THE INDUSTRY

 PROSPECTS

The growing sales figure for the consumer electronic goods, a

flourishing telecom/networking market and noteworthy growth in the
use of portable/wireless products are some of the significant trends
observed in India at present and they are providing stimulus to the
growth of the electronics design industry to a greater scale. India has a
well-developed electronics design industry, with 120 design units and is
ranked the second among the US, the UK, Germany, Sweden, China,
Taiwan and Israel in terms of design revenues.

Electronics is essential for setting up technology infrastructure,

and semiconductors are the main component of electronics products.
Electronics sales in India, which totalled US$ 40.7 billion in 2009, will
touch US$ 400 billion by 2020. At present, local manufacturing accounts
for about 40 per cent of consumption and it could increase to 80 per cent
by 2020. The key drivers for the electronics market in India include
telecom infrastructure equipment, wireless handsets, notebooks and
other IT and office automation products, set-top boxes and smart cards.
Growth sectors including health care equipment, automotive, consumer
goods and industrial goods all of which increasingly use electronics are
also expected to boost electronics consumption in India and open up
more investments opportunities for non-resident Indians (NRI).

 CHALLENGES

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 Monitoring a complicated supply chain
For the most part, the days of creating a product from start
to finish in-house are long gone. Most electronics industry
companies outsource at least some of their operations to be
efficient and economical. While outsourcing offers many benefits,
it also creates a complex supply chain with far more points where
things can become lost, out of compliance, or otherwise
problematic.
 Maintaining quality management
The same complex supply chain also introduces the
potential for quality control and management issues. Keeping
components and processes in-house allows for easy visibility into
quality. Outsourcing makes it harder to keep an eye on what
everyone is doing and how. In the end, the primary manufacturer
is responsible for quality when it comes to clients, so it must
manage these processes, regardless of how complex the supply
chain.

 Predicting customer demand

Every manufacturing-related industry is tied to customer
demand, but the electronics industry is particularly challenging to
predict. Customers expect new, high-quality technology as soon as
it’s possible to manufacture it. Companies, however, need to
carefully balance supply and demand, operating leanly to meet
customer needs without having too much or too little stock.

 Limited Product Lifecycles

As technology changes so do consumer preferences. In
order to keep up, electronics manufacturers need to have effective
New Product Introduction (NPI) processes in place.

 Dwindling Margins

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 The electronics industry remains one of the most
competitive markets in the world. Global competition combined
with emerging innovations and technology continue to drive prices
down, reducing operating margins significantly. In order to remain
profitable, companies must continuously improve processes and
become more cost-efficient.

3.1 OBJECTIVE ASSESSMENT – OBSERVATIONS BY THE CANDIDATE

Apple is a well-known technology brand with a worldwide reputation
for its focus on technological innovation, high-quality product lines, and
outstanding marketing. The company is involved in developing and designing
hardware products such as iPhones, iPods, Mac, as well as the development
of software and online services. Since 2010, Apple has been rated as the most
valuable brand by Forbes every year.

Apple is considered to be a multinational technology company, based

in California that designs, develops, and sells consumer electronics, computer
software, and online services. It is considered as one of the great technology
companies on par with Amazon, Google, Microsoft, and Facebook.

Steve Jobs vision helped Apple establish itself as the market’s leading
technology brand. Now under the leadership of Tim Cook, Apple has grown
faster in recent years. Apple is also the first brand with a market value of
more than 2 trillion US dollars having its own operating system intact.

 MARKETING MIX

A company’s marketing mix includes the strategies and tactics

involved in implementing a marketing plan. Marketing mix focuses on
specific 4Ps variables of product, price, place, and promotion. In
developing its marketing mix, Apple uses a strategy that promotes
premium branding. This approach aims to focus on the premium brand

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and ensure that all 4Ps support the maintenance of a strong brand image.
Marketing mix thus holistically covers the marketing and business
strategies that surround a business.

 PRODUCT

The company is known to have introduced new innovative

products over the past few years. The product line of Apple includes
both goods and services. The product element of the marketing mix
indicates that Apple is in the consumer electronics business.

Here is a list of products offered by Apple:

1. Mac
2. iPhones, iPod
3. Apple TV, Apple Watch

Here is a list of services offered by Apple:

1. Apple Music, Apple Books

2. Apple News, Apple Podcasts
3. Apple Fitness+, iCloud

The product mix of Apple focuses on quality rather than

quantity. It focuses on the chosen products and continues to enhance
them rather than branching bent designs to other products within the
same category. Apple’s product strategy shows that it has diversified
its business from computer technology business to information
technology.

 PRICE

Apple has built the image of itself as a premium brand. Its

product range includes only higher-end products and they only target
people with high affordability. The company follows a premium
pricing policy. Apple products are expensive and are considered a
status symbol. Apple never prices lower than its competitors to

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 maintain the image of a premium brand. Lowering the sale price will
dilute the brand image. One of the reasons Apple follows a premium
pricing strategy is its high-end technology and superior quality
products.
Premium pricing maximizes profit margins. Even though the
SWOT analysis of Apple Inc. shows that such high prices are a
weakness, the company utilizes premium pricing in combination with
premium branding and creative innovation. Such combination ensures
competitiveness.

 PLACE

Apple products are available almost everywhere across the

globe. The company uses various distribution channels to serve the
demands of global customers. They use both online and offline
channels for distribution purposes.

 Apple stores:
Apple has set up outlets in different locations where
customers can purchase products directly from the company.
 E-commerce platforms:
Customers can purchase products directly through Apple’s
official website and other online portals such as Amazon, Flipkart,
etc. These portals are one of the biggest points of sale for Apple
products.
 Corporate resellers:
Apple also has tie-ups with various corporate resellers who
are authorized to sell Apple products. Due to the premium image,
these stores are handpicked based on the size of the store, monthly
sales, etc. The global availability of Apple products allows the
company to target a larger customer base and also helps in
creating brand awareness on a global scale.

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  PROMOTION

The promotional strategy of Apple focuses on aggressive

advertising using various channels like medium, TV, billboards, online
ads, etc. It makes use of both conventional and non-conventional
techniques to promote its product. The products are also promoted
from its website and also from other online channels including social
media.
In 1997, Steve Jobs launched the “Think Different” advertising
campaign. He wanted to explain the value of apples in the fast-paced
world. He said, “Apple’s core value is that we believe people with
passion can change the world for the better.” The campaign inspired
people to be confident about themselves and not only “think different”
but be different and be proud of themselves.
As we all know that Apple targets a selected segment of society,
the most focus of the promotional activities is on its products and
therefore the differentiating factors which make it unique and better
than its competitors. The ads are simple and to the point with no
irrelevant information. Commercial ads are run when a product is first
launched and print ads run throughout the lifetime of the
merchandise.

3.2 SPECIFIC LEARNING OUTCOME

Apple Inc. is one of the largest companies that deals with consumer
electronics, computer software and online services. It is one of the Big Five
American information technology companies, alongside Amazon, Google
(Alphabet), Facebook (Meta), and Microsoft. Apple provides excellent
benefits to employees, such as comprehensive health, dental, and vision
insurance, on-site gyms and doctors, stock options, and paid maternity leave.
Employees also get great discounts on Apple products. Consumers are highly
devoted to the products that they go crazy if someone talks bad about the
company, this shows that the consumers are loyal to the brand and at the
same time the company try to reach the expectations of customers every-
time they launch a new product.

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 Apple is the most valuable brand in the world. Apple is in a class of
their own might be an understatement. They have been ranked the most
valuable brand every year since Forbes started evaluating the richest brands
in 2010. Apple has expanded the number of retail locations and its
geographical coverage, with 516 stores across 25 countries worldwide as of
December 22, 2021. Promotional activities of Apple are not that complex but
simple and unique. These ads are to the point and no irrelevant information.
The company rarely reveal any product specifications, instead they focus
how they can change the consumer lifestyle. The company is constantly
evolving, constantly considering its next move. In 2003, Jobs noticed that
people wanted an affordable platform to buy music online. Thus, the iTunes
Music Store was established, soon becoming the top music retailer in the
world.

3.3 CONTRIBUTIONS BY THE STUDENTS GROUP

SUGGESTIONS

 iPhones have only one sim card slot which is a drawback for some
people and hence I would suggest to that they add an extra slot.

 iPhones do not have a good battery performance and hence customers

may divert their attention to buy new phone from different brand. For
preventing this I suggest that they look for ways to make batteries
which gives the best performance.

 Apple phones do not come with radio pre-installed on them.

 iTunes is expensive, without subscription the app is useless.

 Apple company has to increase memory space of their products. Apple

products like the iPhone lack slots for SD cards, meaning one isn’t able
to upgrade the storage of their phone from the initially available
memory.

 Unlike its competitors, Apple tends to restrict its customers in

customizing their products to the way they seem fit. By fixing Limited
Customization, Apple will be able to gain more customers.

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  The prices of Apple products are too high they anticipate reduction in
the price which can be affordable to all people.

 The company has power over prices through product differentiation,

innovative advertising, ensured brand loyalty, and hype around new product
launches. By focusing on customers who are willing to pay more and
maintaining a premium price at the cost of unit volume.
 Apple has built an image of itself as a premium brand. Its product range
includes only higher-end products and they only target people with high
affordability.
 Apple products are expensive and are considered a status symbol. Apple
never prices lower than its competitors to maintain the image of a premium
brand.
 Apple sells its products directly via its Apple Stores. This is critical to Apple’s
success as it enables it to deliver a high-quality buying experience for its
products in which service and education are emphasized.
 Apple employees get an annual discount when they purchase Apple products.
Apple allows mothers to take four weeks of paid leave before giving birth and
14 weeks after. At Apple, women earn the same as men performing similar
work. There is equality while giving salaries.
 Apple employees get multiple flexible medical plans that cover both physical
and mental healthcare. For those working at major Apple campuses, onsite
doctors and nurses are present.
 The primary goal of the promotional activities of Apple is to make the
customer aware of the superior user experience of Apple products.

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 Apple Captures 75% of Global Handset Market Operating Profit in 2021
 Apple was the first to make a digital colour camera.
 An estimated 1 billion people use iPhones worldwide
 In early 2015, Apple became the first ever $700 billion company.

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