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
Introducing The Company
Products: designs, develops, and sells…
o Apple TV
Introducing The Company
Services: Apple offers a variety of goods and support for their products
Apple Store online
Mac App Store
iOS App Store
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 British Virgin Islands
• 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.
• As Apple became public in 1980, John
Sculley was brought on as Chief
Executive Officer, while Jobs oversaw
• 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.
• 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.
• 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.”
• Apple‟s current executives:
• Apple‟s organizational
structure, prior to Job‟s passing:
• 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.”
• 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
• 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
• 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
• 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
• 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
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
What does the future hold?
- How much longer can apple hold
without new innovative ideas?
- Did apple passed away with Steve
- Wouldn‟t using all the cash they
have to purchase new companies or
invest into new ideas help?
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
Lawsuit after lawsuit between the two, who
could be considered to be at the top of the
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.
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.
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