Apple

A Brief History 1976: Apple was “born” when Steve Wozniak & Steve Jobs

created the Apple I 1980: Apple exceeds $1 million in sales and goes public 1985: Jobs was forced to resign after a battle with the current

CEO 1986-1997: Apple had mixed success, but Microsoft overtook

them with its Windows OS 1997: Apple purchases NeXT, which also brings back Steve

Jobs 1997: Jobs is named CEO and begins restructuring the

company 1998: Apple introduced the iMac which helped them begin to

turn the corner

Digital Hub Strategy

Apple introduced Super Drives, iDVD, & iTunes

Jobs decided Apple could change digital music players

Apple developed and released the iPod on October 23, 2001

The iPod was the beginning of Apple’s ascent

iPod Success, Apple Success

Apple has sold over 220 million iPods since the product was 1st released

The iPod has become the new standard portable music player

iTunes saved a struggling music industry and changed how people interact with music

Success with the iPod has led to a growth in Apple’s computer business

Apple is now considered an entertainment company

Source: Thomson Reuters Datastream

Apple RevenueSince iPod Release

2002 2003 2004 2005 2006 2007 2008 20090

10

20

30

40x 1,000,000

0

10

20

30

40x 1,000,000

APPLE - WC01001

Source: Thomson Reuters Datastream

Apple Share PriceSince iPod Release

2002 2003 2004 2005 2006 2007 2008 20090

50

100

150

200

250

0

50

100

150

200

250

APPLE

iPod EvolutionClassic

Mini Nano

iPod Touch

Shuffle

iPhone

What makes the iPod Different? Click wheel Internal hard drive iTunes store Podcasts Shuffle Accessories Compatibility

Apple’s Marketing Strategy Apple is the master of the

“How” in the Commercialization stage

Key product announcements are followed by huge advertising campaigns

The company image is cool & innovative which turns buyers into loyal customers

Apple receives great word of mouth and media attention

Adoption of Apple Products

Apple has made many of us adopt their products by successfully following the steps: Awareness- commercials and Apple Events Interest- advertisements peak our interest Evaluation- we seek more information Trial- Apple stores allow us to test products Adoption- decision to purchase and use Apple

products

Apple’s Use of Channels

Apple sells its products in its own stores They have also partnered with other stores

such as:

- Walmart

- Target

- Best Buy

- Radio Shack They also partnered with BMW

The Future for Apple iPhone- launched in 2007, has sold over 34

million units Apple TV- allows users to play iTunes

content via TV sets Apple Computers- steadily gaining market

share from competitors

Questions, Quibbles, Concerns

References http://www.wired.com/science/discoveries/news/2008/10/dayintech_

1023 http://www.macworld.com/article/140162/2009/04/

appleearnings.html http://money.cnn.com/1998/01/06/technology/apple_chrono/ http://www.apple.com/pr/library/2009/04/22results.html http://www.wired.com/gadgets/mac/commentary/cultofmac/

2006/10/71956 http://www.roughlydrafted.com/RD/Home/21133BEF-61B4-40C1-

A976-5C1360E60694.html Thomson Reuters Datastream