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  • 1. Apple Inc. Jessica Carvallo Alyssa Elso Michelle Norambuena Francisco Sanchez Group 7 COM3110
  • 2. Introducing The Company Company name: Apple Incorporation Headquarters' location: Cupertino, California o an area of 850,000 square feet o construction in1992 and was finished in 1993 Number of employees: Apple has 406 retail stores and 80,300 employees as of 2013
  • 3. Introducing The Company Products: designs, develops, and sells… o Apple TV o Headphones o Mac o iPod o iPhone o iPad
  • 4. Introducing The Company Services: Apple offers a variety of goods and support for their products o o o o o o o Apple Store Apple Store online Mac App Store iOS App Store iTunes Store iBooks iCloud
  • 5. Introducing The Company Major Subsidiaries- Apple has it’s major subsidiaries in low-tax places to reduce the taxes it pays by routing profits around the world. o Republic of Ireland o The Netherlands o Luxembourg o British Virgin Islands
  • 6. Corporate Structure • In 1976, Apple’s founding members were: Steve Jobs, Steve Wozniak and Ronald Wayne. • Once it became Apple Computer Inc. Wayne gave up his share in the company and Mike Markkula joined, providing funding.
  • 7. Corporate Structure • As Apple became public in 1980, John Sculley was brought on as Chief Executive Officer, while Jobs oversaw different projects. • Sculley was soon asked by the board of directors to “contain” Jobs from spending money on untested products. Jobs was then removed from his managerial duties so he resigned. • He then founded NeXT Inc.
  • 8. Corporate Structure • With Steve Job gone, Apple had a series of failed products and switched CEOs twice: from John Sculley to Michael Spindler to Gil Amelio. • Amelio then choose to purchase NeXT Inc. bringing back Jobs as a project advisor. Shortly after, Gil was removed as CEO and Jobs became the Interim CEO, once again making Apple profitable with the introduction of the iMac, iPod and iPhone.
  • 9. Corporate Structure • On October 5, 2011 on Jobs passing, chief operating officer, Tim Cook took over as CEO, where he remains today. • While a mission statement for the company has never officially been published this brief statement is found on all Apple Press Releases: • “Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.”
  • 10. Corporate Structure • Apple’s current executives: • Apple’s organizational structure, prior to Job’s passing:
  • 11. Corporate Structure • Apple’s mission, vision and value statement as best described by Tim Cook in a 2009 earnings call. “There is an extraordinary breadth and depth and tenure among the Apple executive team. And these executives lead over 35,000 employees that I would call all “wicked smart.” And that’s in all areas of the company, from engineering, to marketing, to operations, sales, and all the rest. And the values of our company are extremely well-entrenched. You know, we believe we’re on the face of the Earth to make great products, and that’s not changing. We’re constantly focusing on innovating. We believe in the simple, not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollinization of our groups, which allows us to innovate in a way others cannot. And frankly, we don’t settle for anything less than excellence in every group in the company, and we have the self-honesty to admit where we’re wrong, and the courage to change. And I think regardless of who is in what job, those values are so embedded in this company that Apple will do extremely well. And I would just reiterate a point Peter made in his opening comment, that I strongly believe that Apple is doing the best work in its history.”
  • 12. Marketing Philosophy • Apple’s 3-Point Marketing Philosophy emphasizes customer needs, employee performance, and quality of products • Created by Mike Markkula in 1977 • Has been the focus of Apple’s marketing for over 35 years • Apple’s marketing strategies have led them to win the CMO Survey Award for Marketing Excellence for five consecutive years
  • 13. Innovative Advertising Campaigns • Since the 1970’s Apple has consistently created ads that enhance the expansion of their products • Apple ads are known to be artistic and one of the most innovative in the market • Their strategy when producing ads is to promote convenience, variety of, distinguishing features over other brands, and benefits for all target markets
  • 14. Popular Apple Advertisement’s
  • 15. Apple’s ‘Our Signature’ Ad • Please click on the following link: Apple- “Our Signature”
  • 16. Target Markets • College Students- Apple devices are light and convenient for college students, they facilitate note taking and organization, and are innovative • Business People- All Apple devices are useful to business’s for efficient communication, sending and completing documents, and networking • Adults- Apple’s iMac’s, iPhone’s and iPad’s , and apps offer adults innovative ways to communicate and facilitate their everyday lives • Teenagers- Apple’s iPod’s and iPad’s offer teenagers entertainment with social media apps, games, and music • Children- Apple has developed apps for iPad’s, iPhone’s, and iPod’s that children can use for playing and learning
  • 17. Profit/Revenue • Results for the final fiscal quarter of 2013 came out on October 28, 2013 revealing a $7.5 billion profit on $37.5 billion in revenue. This is up from last years $36 billion revenue but gross margin is down from 40 percent last year to 37 percent. • Revenue-Expenses= Profit • $37.5 billion-$30 billion= $7.5 billion
  • 18. Dividends
  • 19. Projected Profits • • • • • • Apple is providing the following guidance for its fiscal 2014 first quarter: revenue between $55 billion and $58 billion gross margin between 36.5 percent and 37.5 percent operating expenses between $4.4 billion and $4.5 billion other income/(expense) of $200 million tax rate of 26.25 percent
  • 20. What does the future hold? - How much longer can apple hold without new innovative ideas? - Did Apple pass away with Steve Jobs? - Wouldn’t using all the cash they have to purchase new companies or invest into new ideas help?
  • 21. Samsung vs. Apple Who will finally win this rivalry? Samsung has definitely hurt Apple like no other company has, but it looks as if both of this companies now share a monopoly in the industry. Lawsuit after lawsuit between the two, who could be considered to be at the top of the game? There is no clear winner in the world yet, but with Samsung’s new ideas and with some of their products at such an affordable price, people all over the world seem to start to use Samsung products more and more often. Of course this is not the case in the United States where we still see Apple’s dominance.
  • 22. Price per share too high or too low?
  • 23. Bull vs. Bear on Apple • Apple Inc. reached a price per share under the $400’s about a year ago. Now trading at around the low $500’s, would it be considered too late to get in? • We believe the stock might be overpriced at this specific moment. There is not significant event that could pull the price per share higher. • Apple might be running out of time, we would love to see them at the top where they have been for a while; it seems as if from about a year ago they have been slipping down.
  • 24. Not to Invest We recommend staying bearish when it comes to Apple. Got to listen closely to the news however, everything could change in a second, especially the way Apple is and how successful we know they could be. They are an idea away to win another battle against Samsung; but is this going to happen soon? We will wait to see the stock go down before it comes back up again.