Evolution of Apple Inc.: From Computers to Consumer Electronics

1. MIS 750 – MANAGEMENT INFORMATION SYSTEM Apple Inc Prepared by: SYUHAIRAH BINTI MOHD SHAHA 2008570637 FARAHDILA WATI MOHD KHAMDE KHUZAINI 2008342701 IZYAN SHAFAWATI ABD HALIM 2008761091

2. INTRODUCTION • Apple is a publicly owned Fortune 100 company based in Cupertino, California. • Apple designs, produces, and sells a line of personal computers as well as mobile phones, portable digital media devices, software, and related peripherals and accessories. • The firm sells internationally though a mix of direct sales, online and retail stores, wholesalers, and resellers. • Designs and markets consumer electronics, computer software, and personal computers. • Products: Macintosh, iPod, iPhone, iPad

3. COMPANY FOUNDER Apple was founded on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne Blast from the past: In this photo, Steve Jobs, left, chairman of Apple Inc.; John Sculley, center, president and CEO; and Steve Wozniak, co-founder of Apple, unveil the new Apple IIc computer in San Francisco, April 24, 1984. (AP Photo)

4. The Evolution & History of Apple Logo The first Apple logo was designed in 1976 by Ronald Wayne, sometimes referred to as the third co-founder of Apple. The logo depicts Isaac Newton sitting under a tree, an apple dangling precipitously above his head. The phrase on the outside border reads, “Newton… A Mind Forever Voyaging Through Strange Seas of Thought … Alone.” As for the rainbow stripes of the logo, Steve Jobs is rumored to have insisted on using a colorful logo as a means to “humanize” the company. Janoff (logo designer) has said that there was no rhyme or reason behind the placement of the colors themselves, noting that he wanted to have green at the top “because that’s where the leaf was.” The multi-colored Apple logo was in use for 22 years before it was axed by Steve Jobs less than a year after his return to Apple in 1997. The overall shape of the logo, however, remains unchanged from its original inception 33 years ago. Tinkering with one of the most recognizable logos in the world wasn’t done simply because Steve Jobs is always looking to change things up. When Jobs returned to Apple in 1997, the company was bleeding money, and Jobs and Co. realized that the Apple logo could be leveraged to their advantage. That meant experimenting with larger logos to make it more prominent. 

5. CORE BUSINESS Products : • Mac (Pro, Mini · iMac ·MacBook, Air, Pro ·Xserve) • iPod (Shuffle, Nano, Classic, Touch) • iPhone (Original · 3G· 3GS · 4), iPad • Apple TV, Cinema Display, AirPort, Time Capsule Mac OS X (Server), iLife, iWork, iOS Services : • Stores (retail, online, App, iTunes, iBooks) • MobileMe

6. CORE BUSINESS • Powerful core services. Easily deployed. Deliver an array of core software technologies and services designed to better connect your business, take full advantage of the latest hardware, and lay a solid foundation for your organization’s IT infrastructure. • Industry-leading email services. No extra charge. The mail services in Mac OS X Server can handle thousands of simultaneous connections. They also offer industrial-strength junk mail filtering and virus detection. • Connecting your multi-platform workgroups. Mac OS X Server makes it easy for your users to share information and work effectively. It’s easy to share hard drives or individual folders and assign custom access permissions with Mac OS X Server. • Standard print serving. Part of the package. Users can share print queues over a wide variety of protocols, from Internet Printing Protocol and Line Printer Remote to Windows file sharing protocol (SMB) and more. • Web hosting. Powered by Apache. Apache is extremely flexible, can add dynamic content, or host stores, auctions, shared calendars, portal systems, and other database-driven services. Support for virtual hosting in Mac OS X Server allows to host multiple websites on a single server. This high-grade security architecture protects credit card information and other confidential data transmitted during web transactions.

7. Apple Evolution 1976 - 2009

8. BUSINESS MODEL : Value proposition • Apple Values are the qualities, customs, standards, and principles that the company believes will help it and its employees succeed. They are the basis for what they do and how they do it. Taken together, they identify Apple as a unique company. • These are the values that govern Apple business conduct: • Empathy for Customers/Users • Aggressiveness/Achievement • Positive Social Contribution • Innovation/Vision • Individual Performance • Team Spirit • Quality/Excellence • Individual Reward • Good Management

9. BUSINESS MODEL : Value proposition

10. BUSINESS MODEL : Revenue Model Apple's iPhone business, which didn't exist three years ago, now represents a whopping 40% of the company's revenue, and has been the company's biggest revenue generator for three quarters in a row. During the March quarter, iPhone revenue grew 124% year-over-year to $5.4 billion, or 40% of Apple's $13.5 billion in total revenue. Because of high profit margins on the iPhone, it's likely Apple's biggest profit contributor, too. Apple's second-biggest business is its Mac computer division, which grew 27% year-over-year in the March quarter to $3.8 billion, or 28% of Apple's overall sales. In Case You Had Any Doubts About Where Apple's Revenue Comes From

11. BUSINESS MODEL : Market Opportunity Apple is marketing to people who have a few characteristics: • Middle/Upper income folks who are willing to pay a bit more for a better user experience. paying 500 more for a computer is not a huge deal if you have a decent income. • People who like to have fun with technology. No other platform offers as many entry level tools (the whole iLife bunch and more). This includes people who like to shoot a lot of digital photos or video. It's the whole digital hub concept. People are starting to buy into it. • Music enthusiasts and fans ages 12-35. • Professionals in media and design.

12. BUSINESS MODEL : Competitive environment

13. BUSINESS MODEL : Competitive Advantage • Design and innovation oriented • Greater horizontal and vertical Integration • Designing from scratch to finish bundled with applications and peripherals. • ‘’Plug and Play” solutions • R&D oriented • An everything ready device

14. BUSINESS MODEL : Competitive Advantage

15. BUSINESS MODEL : Market Strategy • “Get a Mac” Ads – Apple uses a series of television advertisements comparing the firm’s products to competitors using a variety of direct and indirect methods to build a lifestyle brand image. The ads are humorous and do not emphasize cost or feature-by-feature comparisons, opting instead to develop the firm’s image. • Retail locations/Flagship stores– Apple stores across the United States serve as living advertisements for the company promoting the brand and lifestyle image. Flagship stores, like the 5th Avenue New York store are an attraction drawing visitors on novelty hoping to convert the visits into sales. • Secretive and selective unveilings– By keeping secrets about product releases and holding invitation-only press events for product unveilings, Apple creates hype and suspension around product launches.

16. BUSINESS MODEL : Organizational development Technological Development • Research and development– Apple increased research and development funding by nearly 66% from 2007 to 2009, in 2009 Apple spent $1.33 Billion on research and development. This is a commitment to continue to push innovation forward to keep ahead of competition. • Patent filing– Apple believes in the importance of protecting its intellectual capital by filing patents in the United States and worldwide for its inventions and innovations. Apple currently holds a portfolio of several thousand patents.

17. BUSINESS MODEL : Management Team • Selective hiring process– Apple follows selective hiring practices to recruit and hire talented individuals. • Generous employee benefits program–Apple offers a variety of attractive employee benefits to complement direct wages. The benefits system is used to entice, and retain industry-leading talent to benefit Apple. Background for the company leaders to have: • Transformational leader (passionate and enthusiastic about what he does. Creates visions and injects energy and motivation into his team). • Unique vision and approach to business. • Aggressive and demanding personality. • Aspired to position Apple and its products at the forefront of the information technology industry by foreseeing and setting trends, at least in innovation and style.

18. IT APPLICATIONS • Software includes the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia and creativity software; the iWork suite of productivity software; Aperture, a professional photography package; Final Cut Studio, a suite of professional audio and film-industry software products; and Logic Studio, a suite of music production tools. • Mac OS X Server is a server operating system from Apple Inc.

19. IT APPLICATIONS - Mac OS X Server • Mail services in Mac OS X Server support SMTP, POP and IMAP, SSL/TLS encryption, mailing lists, and WebMail that can handle thousands of simultaneous connections. • Mac, Windows, UNIX, and Linux users can all share files with ease because of support for the major file-sharing protocols, including AFP, SMB, NFS, FTP, and WebDAV. • Print services in Mac OS X Server rely on the standard Common UNIX Printing System (CUPS) for spooling, queue and job control, security, and error feedback. • Mac OS X Server makes it easy to host own website or Web 2.0 application. Included in Mac OS X Server is Apache, the most widely used HTTP server on the Internet. Apache is preconfigured with default settings, making deployment as simple as starting the Web service. Mac OS X Server offers experienced webmasters support for either Apache 2.2 or Apache 1.3, accessible from with the Server Admin application.

20. IT APPLICATIONS - Mac OS X Server • Mac OS X Server integrates OpenSSL with the Apache web server, it supports strong 128-bit encryption and public key infrastructure authentication using X.509 digital certificates. • Mac OS X Server ships with a full complement of server applications and frameworks including Apache 2, Ruby on Rails, Tomcat 5, and WebObjects 5.4. For hosting enterprise-class applications, Mac OS X Server includes a 64-bit Java VM optimized for the latest generation of Intel multicore processors. • Mac OS X Server also comes with an array of application services, including Apache Tomcat, known for powering large-scale, mission-critical web applications; Java Virtual Machine (J2SE) Java language compiler and execution environment; the Apache Axis (SOAP) engine for web services; and the WebObjects 5.4 Deployment Java web application server and framework.

21. APPLE’sSUCCESS STORIES • As of January 2010, the company operates 284 retail stores in ten countries, and an online store where hardware and software products are sold. • Apple was honored as Retailer of the Year, awarded to the company each year, “that has proved it is a world-class performer across every aspect of its business.” • iPhone won the award for the Most Anticipated Gadget for 2007 of the UK gadget site such as: • The Drop Dead Gorgeous Award: Apple MacBook Pro • Top Commuter Gadget: Apple iPod • Best Music Gadget: Apple iPod • The Best Gadget of All Time: Apple iPod • The Best Dowinload Service: Apple iTunes Store • Won 5 out of 13 awards oh the British Technology Awards: • Best Mobile Technology: Apple iPhone • Best Music Technology: Apple iTunes • Gadget of the Year: Apple iPhone • Most Stylish Technology: Apple iPhone • Technological Innovation of the Year: Apple iPhone

22. LESSON LEARNT • Products must become business platforms that grow through collaboration. • Business platforms create superb externalities and a powerful ecosystem. • Business platforms create a learning platform that spawns communities of interest and communities of practice. • Business platforms generate untold business analytics for the platform’s owner and participants. • Business platforms generate a superior portfolio of strategic options.

23. REFERENCES • http://en.wikipedia.org/wiki/Apple_Inc. • http://www.edibleapple.com/the-evolution-and-history-of-the-apple-logo/ • http://en.wikipedia.org/wiki/Mac_OS_X_Server • http://www.scribd.com/doc/24134877/Strategic-Analysis-of-Apple-Inc-Brian-Masi • http://www.businessinsider.com/chart-of-the-day-in-case-you-had-any-doubts-about-where-apples-revenue-comes-from-2010-4 • http://www.ipodobserver.com/ipo/article/Apple_Dominates_T3s_Awards/ • http://www.touchpodium.com/2008/10/09/apple-inc-claims-5-british-technology-awards/ • http://www.ifoapplestore.com/db/2009/06/04/apple-stores-their-leader-win-awards/