This document discusses Apple's corporate strategy as seen through its development and success of the iPod and iPad products. It describes how Apple undertook a systematic evaluation of product options before selecting music players, launching the iPod in 2001. The iPod was highly successful, driving significant revenue, profit, and share price growth. Apple later leveraged the iPod's success through the launch of the iPad in 2010, which has become the dominant brand for tablet devices through Apple's focus on design, ease of use, apps, and ecosystem. The document examines how Apple has achieved ongoing growth and market dominance through innovative products and premium pricing strategies.

1. Apple
From the iPod to the iPad
A case study in Corporate Strategy
Second Edition April 2012
J K Ashcroft

2. pdate
U
What does it tell us about
Apple corporate strategy
Second Edition April 2012
J K Ashcroft

3. First a recap
The Digital Hub Strategy
2001
Second Edition April 2012
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5. Launch of the iPod
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6. Apple looking for a digital consumer device
Undertakes a systematic evaluation
of alternative product options
Video
Games
DVD players and recorders
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7. using
3D market
profile
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8. Launches the iPod
“Music on the move”
“1000 tunes in your pocket”
“so why music, we all love music
It’s a huge market and
nobody has got it right”
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9. Music
ticks all
the boxes
using
3D market
profile
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10. Since then ... sales have soared
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11. profits have followed
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12. as has the ROS
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13. so too the share price
and the market cap
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17. “EBITDA
off the charts”
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18. Sales growth
gets 3rd
lease of life
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19. Time ...........
Note : [Share price = Earnings(EPS) x PE rating] ; [PE rating (f) Growth Rate]
and : [PEG ratio = PE / Growth rate] Hence rating for high growth stocks falls over time
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20. 575 million
Digital Devices Sold
iPod, iPhone, IPad
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28. Latest in Amsterdam
March 2012
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32. auto focus
auto face detection
3.1 million pixels
Voice
Dictation
auto focus
auto face detection

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34. 1 Retina Display
2 A5X Chip
3 5 MP camera
4 HD1080p video recording
5 Voice Dictation
6 4G LTE wireless tech
7 Battery Life
8 Light @ 1.4 lbs
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36. The iPad priced at $499
- the iPad 2 drops to......
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38. Prior Premium Pricing - then
Price Point Proliferation
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39. as with
the iPod
Prior Premium Pricing
Price Point Proliferation
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40. iPad is the way ahead
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42. iPad brand dominant
Apps for the iPad
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43. Great software like iTunes
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48. 2012 latest
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49. Apple
From the iPod to the iPad
A case study in Corporate Strategy
Second Edition April 2012
J K Ashcroft