Apple Inc. experienced significant growth between 2007-2009, with net sales increasing from $24 billion to $36.5 billion. The largest increases were seen in iPhone sales, which grew 266% during this period. However, Apple faces challenges including a recent stock price decline due to the absence of the CEO, losing exclusive rights to use its own GUI, and relatively high product costs. To address low market share in some areas, Apple may pursue a price differentiation strategy by extending its product line to include lower-cost options. The company's future success will depend on continued innovation, stimulating demand through new features, lowering prices, and maintaining strong relationships with third-party developers.

1. LEADING UNIVERSITY Report On Case study of Apple Inc. in 2008 Problem identification and Internal & External analysis

2. Submitted by: 1. Bishwajit chowdhury (0901010196) 2. Shamsher Ali Liton (0901010207) 3. Mahdi Iqbal Quraishi (0901010219) 4. Nazimul Islam (0901010222) 5. AKM Sadiqur Rahman (0901010200) 6. Mizanur Rahman (0901010188) Section- D, 9 th Semester, Dept of BuA. Submitted to: Md. Ridwan Reza Senior Lecturer, Dept. of Bu.A

3. History: April 1976, Apple Computer, Founder Steve Jobs Industry: Computer Hardware and Software, Consumer Electronics 1984, Macintosh Sculley- Mac with new features Amelio- Return to “Premium Price” Jobs back-Apple Turnaround

4. Current Scenario - Sales Current Scenario – Low market share 6.6%

5. Opportunities Fast growing Industry (Customer Electronics Industry) Technological Innovations Extend new products to loyal customers High Potential music phone market Strategic Alliances Jan 2007- Apple Inc. CE Industry Big move

6. Competitor Environment High Competition Share of Dell and HP Microsoft and Intel-Leaders of Software CE Industry- Sony, Nokia, Samsung, Cisco, Motorola

7. Threats Extensive Competition Substitute Products Low prices of Competitors Technical Advancements Economy downfall Branding Innovation Differentiated Product Ease of Use Superior Quality Retail Strategy Marketing and Sales Customer Loyalty Online Sales Strengths

8. Five forces Model

9. Weakness High Price Proprietary System Niche Market, Less Penetration Cannibalization Differentiation Strategy Value Creation Core competencies

10. Differentiation Strategy Unique Features and characteristics Commands Premium Price High Customer Service Superior Quality Prestige Rapid Innovation Sustainable Competitive Advantage Apple’s Strategy Apple employs a Product Differentiation Drawbacks as a result of their strategy include: Not appealing to Price Conscious Consumers Risk of Imitation by Competitors Risk of Change in Customer Taste

11. Strategic Alternatives Problem Strategy Alternative Low Market-Share Price Differentiation Extend their current product line to include some products with a lower price point. Ex. Re-launch “Mac Mini”

12. Financial performance With their fiscal year ending on September 26, 2009, Apple reported total net sales of $36.537 billion dollars among each of their five operating segments in 2009. This figure is up from $32.479 billion dollars in 2008 and $24.006 billion dollars in 2007.40 The Americas account for most of the company’s net sales, with $16.142 billion dollars in 2009. Europe accounts for the second-largest operating segment net sales, with the Retail segment not far behind. Figure 4 illustrates how these figures are attained through contributions from each operating segment. Apple’s Net Sales of Operating Segments (in millions)

13. Table shows that from 2007-2009, Apple experienced a 266% sales increase within the iPhone product line—the largest product sales increase between 2007 and 2009. Apple’s music-related and software products also experienced significant increases in sales during this three-year span. Apple’s Net Sales by Product (in millions)

14. Problems Stock price down due to the absence of the CEO. Apple has lost the exclusive right to use its own GUI. The cost of Apple’s product are high.

15. Conclusion Apple’s future operations depend largely on the company’s ability to continue developing high-quality components of mobile communication devices, such as: microprocessors, nonvolatile (NAND) flash memory, dynamic random access memory (DRAM), liquid crystal displays (LCDs), and many more—all in sufficient quantities made available to consumers at competitive prices. The company plans to continually stimulate demand for certain products by implementing new design, operability, and user-friendly features. Apple also plans to continue lowering product prices, despite the fact that doing so would affect the company’s gross margins unfavorably. Due to their significant international operating locations, fluctuations with resources, exchange rates, and taxes can also affect their future financial results and operational strategies. Apple’s future also depends on third-party developers and their ability to continue creating software applications that are both powerful and useful for Apple’s products. Companies like Microsoft, Dell, Sony, Hewlett-Packard, and other manufacturers of electronic communication devices could pose a major threat if third-party Apple software development should decrease or cease in production.