Research on apple inc. after the demise of Steve

jobs

PRESENTED BY

AADIL NAVEED 2013(FALL)-MBA E-004

AHSAN NAEEM 2013(FALL)-MBA E-016

PRESENTED TO

DR. BUSHRA BASHIR

Problem

• Steve Jobs died on Oct. 5th, 2011• Did Apple lose its innovation after Steve Jobs

died?• Some Things Apple Has Done Since Steve Jobs

Died That He Might Have Disagreed With• Apple vs Samsung• How Samsung became no. 1 instead of Apple

LITERATURE REVIEW http://en.wikipedia.org/wiki/Steve_Jobs http://entrepreneurs.about.com/od/becominganentrepreneur/a/How-To-Get-Your-Inner-

Steve-Jobs-Working.htm http://www.debate.org/opinions/did-apple-lose-its-innovation-after-steve-jobs-died http://www.debate.org/opinions/will-apple-be-as-successful-without-steve-jobs http://www.thedailybeast.com/newsweek/2008/06/21/microsoft-after-gates-and-bill-

after-microsoft.html http://techland.time.com/2011/06/16/techland-interview-how-ibm-is-still-changing-the-

way-we-live/ http://tech.fortune.cnn.com/2010/08/26/myspace-the-place-for-what-again/ http://www.divinecaroline.com/22354/94810-crisis-averted-four-corporate-pr Jobs – a 2013 independent film by Joshua Michael Stern. Jobs is portrayed by Ashton

Kutcher http://launchingtechventures.blogspot.com/2013/02/forget-lean-methodology-if-you-

want-to.html http://www.linkedin.com/today/post/article/20131204174954-13518874-apple-vs-

samsung-who-will-win http://www.defineyourgrind.com/2013/05/07/7-reasons-steve-jobs-was-a-successful-

entrepreneur/ http://launchingtechventures.blogspot.com/2013/02/forget-lean-methodology-if-you-

want-to.html

RESEARCH QUESTIONS

Steve Jobs promoted innovative culture?

His methodologyForces in the rise of AppleImpact of his deathSamsung becoming no.1 after his

demise

METHODS FOR RESEARCH

Survey on popularity of AppleInterview with owners of Apple productsInterview with owners of Samsung

productsSample:

University students who own smartphones.

STATISTICAL DATA

Correlation coefficientsBetween behaviors and usageBetween influencers and usage

Qualitative Data:Analysis of content from interviews

TIMELINE….

STEVE JOBSAn American entrepreneur, marketer, and inventor

who was the co-founder, chairman and CEO of Apple Inc.(since 1976).

In 1985, Jobs left Apple and founded NeXT, a computer platform development company specializing in the higher-education and business markets.

In 1996, after Apple had failed to deliver its operating system(Copland) Gil Amelio turned to NeXT Computer, and the NeXTSTEP platform became the foundation for the Mac OS X.

Jobs returned to Apple as an advisor, and took control of the company as an interim CEO. Jobs brought Apple from near bankruptcy to profitability by 1998.

JOB’S RETURN TO APPLE INC.In 1996, Apple announced that it would buy NeXT

for $427 million bringing Jobs back to the company he co-founded.

In March 1998, to concentrate Apple's efforts on returning to profitability, Jobs terminated a number of projects such as Newton, Cyberdog and OpenDoc.

Many employees developed a fear of encountering Jobs while riding in the elevator, "afraid that they might not have a job when the doors opened.

Reality was that Jobs's summary executions were rare, but a handful of victims was enough to terrorize a whole company.

JOBS’S TENURE Jobs oversaw the development of the iMac, iTunes,

iPod, iPhone, and iPad and on the services side, the company's Apple Retail Stores, iTunes Store and the App Store.

The success of these products and services provided several years of stable financial returns, and propelled Apple to become the world's most valuable publicly traded company in 2011

He has been referred to as "legendary", a "futurist" or simply "visionary", and has been described as the "Father of the Digital Revolution", "master of innovation", "the master evangelist of the digital age” and a "design perfectionist“

JOBS’S MANAGEMENT STYLE

JOBS was a perfectionist and people remember him as aggressive and demanding personality.

JOBS had great decision making ability and immediately shut downed the projects which he thought were not worthy.

JOBS was a big time competitor and once had a public war of words with Dell Computer CEO Michael Dell, in 1987 when Jobs first criticized Dell for making "un-innovative beige boxes".

JOBS was very mobile socially and most of the time he introduced the Apple Inc. products himself although he was the CEO.

METHODOLOGY OF STEVE JOBSAnticipate the futureAlways pursue perfectionLearn any way you canAlways move forwardSurround yourself with bright peopleTake risksSell dreams, nor productsThe time to do something is always nowWhat makes Steve’s methodology different from everyone

else’s is that he always believed the most important decisions you make are not the things you do – but the things that you decide not to do.

HOW LEGEND IS REMEMBERED ?

Apple CEO Tim Cook noted, "More so than any person I ever met in my life, [Jobs] had the ability to change his mind much more so than anyone I’ve ever met... Maybe the most underappreciated thing about Steve was that he had the courage to change his mind."

Daniel Kottke, one of Apple's earliest employees and a college friend of Jobs', stated that "Between Woz and Jobs, Woz was the innovator, the inventor. Steve Jobs was the marketing person.”

JOBS’S RESIGNATION In August 2011, Jobs resigned as CEO of Apple due to

Metastatic Insulinoma which later was the cause of his death.

But remained with the company as chairman of the company's board. Hours after the announcement, Apple Inc. (AAPL) shares dropped five percent in after-hours trading.

According to Forbes (Business Magazine) the impact was felt in a negative way beyond Apple, including at The Walt Disney Company where Jobs served as director. In after-hours trading on the day of the announcement, Walt Disney Co. (DIS) shares dropped 1.5 percent

6 weeks after retirement, Steve Jobs passed away.

TREND IN NOVEMBER 2012

SOME THINGS APPLE HAS DONE SINCE STEVE JOBS DIED THAT HE MIGHT HAVE

DISAGREED WITH Apple killed skeuomorphism in iOS Apple is phasing out rounded rectangles Jobs said he was anti-small tablets, but Apple made the iPad

Mini Apple did a huge dividend and stock buyback Apple's Maps were a complete disaster Apple has matching charitable contributions for employees Siri is a joke Apple's advertising has gone south Additionally, the public's perception of Apple is not as good as

it once was

APPLE'S SALES HAVE NOT BEEN AFFECTED BY JOBS' DEATH

Market share in smartphones has been affected by factors such as the launch dates of its iPhone and strong competition from Samsung

WHAT RESEARCHERS SAY:

Apple launches dull without JobsApple must continue cultivating brand loyalty'Vulnerable' without JobsIt's like all the other companies become bolder to

attack AppleApple products seem to have dropped since iPhone 4Swith Jobs, you won't hear such bad malfunctions

going on like MapsJobs always had really strict quality control and now

that seems to be missing

JOBS INTRODUCES iPHONE

On June 29, 2007 Apple’s introduction of the iPhone, a multi-touch display cell phone which also included the features of an iPod and with its own mobile browser revolutionized the mobile browsing scene.

While stimulating innovation, Jobs also reminded his employees that "real artists ship"

Jobs on stage at Macworld Conference & Expo, San Francisco,

January 11, 2005

INTERVIEWS CONDUCTED ON WHETHER DID APPLE LOSE ITS INNOVATION AFTER STEVE JOBS DIED?

75 % students said YES !! When Steve Jobs died, Apple may have died along with him. Steve Jobs' death marked the end of an era and they will not

get far without the mastermind that kept them afloat for so long

What happens with Mac OS and iOS could destroy their heritage.

No new products! After Jobs' death Without him, Apple has only been releasing "newer" models

and such of old products a single man kept innovation flowing! Apple has lost its magic with Jobs gone

No More Innovation at Apple Inc ?Innovation doesn't come easily, but I think Apple

has gone a bit bland ever since Jobs died.Iphone models have been released, basically just

one rework of an old model after anotherNumbers don't lie, they've lost considerable market

share since the death of Job's to Samsung and other companies

The primary reason is the lack of innovation at Apple and the creation of new products and new features with other manufactures

THE 25% WHO SAID NO !Jobs wasn't an innovator in the first place, Jobs

was a marketer, not a programmer or a designer. He was the face of Apple, but not who created

the product.He never invented anything, he simply marketed

themOne person does not make a huge impact to a

company as large as appleApple's success will be determined by the

products that they sell – not only smartphones!Apple followers are loyal

FOR THOSE WHO DIDN’T KNOW STEVE JOBS, ANOTHER QUESTION WAS ASKED:

IS APPLE BETTER THAN SAMSUNG?

50% said YES, 50% said NO !! Apple is Original and it came first in touch technology! Apple has the fastest chip in the world which is the A6X

chip and Samsung doesn't Apple has about 50 billion apps and Samsung doesn’t Apple has is iTunes, free text messaging, and the Mac book Apple phones have a better quality and better functionality Samsung has been copying it all the time !! Apple has an easier-to-use interface Apple is faster than Samsung

SAMSUNG IS BETTER:Add mini SD cards to a Samsung for more spaceThe screen resolution, graphics, and UI are better in the

SamsungApple copies Samsung!Samsung is CheapOn Samsung phones, you can remove the battery back iPhone has also copied the Samsung software with their new

iOS 7Apple always has like almost the same styles of phonesSamsung is durableSamsung has the YOUM flexible. Way MORE advanced than

appleNo Mcintosh or iOS, only Windows and android

APPLE VS SAMSUNGSince Tim Cook took over as CEO in 2011, Apple has

become more of an iterator rather than an innovatorApple rumor mill has forecast (wrongly) the imminent

arrival of the iWatch and the iTV, while Samsung has brought these products to market, with the Galaxy Gear and Smart TV.

Samsung successfully conveyed the message “We are the first to introduce” although they are not flawless.

Former Apple CEO John Sculley about Samsung “Product design, marketing and complex supply-chain management are the trifecta of success in consumer electronics. Excelling at all of them simultaneously is a rare feat, much like throwing a no-hitter in baseball”

CEO & LEADERSHIP

Samsung has not just one but three CEOs. Dr. Kwon is the Chairman and Lead CEO of Samsung

Jobs said about Tim Cook (Apple CEO) “Tim is not a product person”

Currently Samsung leadership has more momentum they are executing at speed, picking up customers, gaining market share and widening product range.

SAMSUNG CLOSING THE GAP

SAMSUNG SPENDING ON

-:ADVERTISING:-

Samsung making a dent despite Apple’s dedicated customers and developed market.

One of every three smartphones purchased is under from Samsung

Samsung spends a bigger chunk of its annual revenue on advertising and promotion than any other of the world's top 20 companies by sales = 5.4%, according to Thomson Reuters data.

Apple spends just 0.6% and General Motors 3.5%.Apple may sit in top position now, but has lost its mojo over

the last couple of years through lackluster product releases and perceived lack of innovation.

TIM COOK HOPES FOR iPAD CHRISTMAS

Graph from Business Insider shows that, for the last two quarters, Samsung’s profits were actually higher than Apple’s

Having settled into a pattern of releasing new iPhones and iPads in September/October, Apple is now highly reliant on the holiday quarter in Q4

Tim Cook may have a point when he said, “I think it’s going to be an iPad Christmas.”

NECK AND NECK

EPILOGUE

So overall today they seem to be neck and neck the growth of Samsung seems to be steadier and more sustained.

We’re all fascinated by Apple, but so much of what we hear turns out just to be rumors. Right now it remains a profit generating machine, but long-term that will change if it fails to recapture the public imagination.

Samsung has weathered years of legal action, and having initially copied parts of the Apple playbook, it is now starting to innovate into new areas.

My head currently says the 3 mystery CEOs of Samsung will prevail, but my heart really wants Apple to come back and leapfrog them, with innovation that changes our lives again.

Maybe in future both will remain big beasts, and we will have an Apple and Samsung duopoly.