Apple is a vertically integrated media and technology company founded in 1976 by Steve Jobs and Steve Wozniak. It started as a computer company known for products like the Macintosh but became a major media company in 2001 with the launch of the iTunes store. Apple owns all aspects of production and software for its products, allowing it to retain all profits but also bear all losses alone. Major competitors include Microsoft and Samsung. Apple targets upper and middle class consumers with premium products and has sold over 250 million iPhones. The biggest organizational change was when Steve Jobs passed away in 2011. Apple has generally avoided major issues despite some software glitches.

1. Media Company Case
Study
Task 1 Understand the structure
and ownership of the media sector
Joe Hayes

2. Apple
Apple Belongs to the media sector Information Technologies
(IT). Apple are renown for their widely used products, such
as the Macintosh computers which is still being used today
through products like the iMac and their ever-famous iOS
software for Apple iPhones. On January 9, 2001 Apple
Released a programme called ‘itunes’ which is music,
video, podcasts, radio etc which turned Apple into a Media
Company and this is where Apple started to become as big
as they are today in becoming the biggest multi-sector
media industry to date.
Source: http://news.bbc.co.uk/1/hi/technology/4860790.stm

3.  Founders Steve Jobs and Steve Wozniak
created the first Apple Computer on April 1,
1976, with the release of the Apple I, and
incorporated the company on January 3, 1977.
Apple have partnerships with intel, the makers
of their processor chips used in their computers.
Source:
http://inventors.about.com/library/weekly/aa051
599.htm

4.  Apple is probably the best example of a vertically integrated
company. They are their own company and don’t rely on
any other person or company. They own everything from
the production process to the software. The advantages of
being vertically integrated is the profits. All profits go
towards Apple instead of sharing out the profits with
associated companies which obviously results in huge
profit margins if successful. However, if something
backfires then all losses come straight out of apple and not
shared between other companies which makes vertically
integrated companies a somewhat risky business.
Source: http://techcrunch.com/2010/07/03/facetime-and-
why-apples-massive-integration-advantage-is-just-
beginning/

5. Apple has many, many competitors today due to
them being at the top of what they do, they’re
constantly striving to stay at the top whilst other
companies are striving to be at the top. Major
competitors such as Windows are constantly
battling with Apples Mac operating system and
companies such as Samsung and Nokia are
constantly battling with Apple on mobile devices.
Source: http://www.quora.com/Apple-Inc-2/Who-
are-Apples-biggest-competitors-and-why

6. Apple has a wide audience regarding their products. Many customers
only buy apple products, known as apple fanatics. Apple are aiming
their products mainly at upper/middle class people who can afford to
pay out the set £500 for the iPhone, £999 for the iMac etc. Apple are
known not to be a cheap company and many products on the market
that do practically the same thing are a lot cheaper yet people will pay
the extortionate amount for a product made by them. In total Apple
have sold over 250 million iPhones since the release in June 29, 2007
Source: http://forums.appleinsider.com/t/41017/who-is-apples-
target-market

7. The biggest change in organizational
structure for apple was when founder and
CEO Steve jobs died on October 5th
2011.
This caused many leading investors in
Apple to become nervous about how apple
will cope and drop out.
Source:
http://forums.appleinsider.com/t/114205/
apples-organizational-structure

8. Even though Apple are a large company, possibly one of
the largest in the world, they have managed to stay free
of major issues. There has, however been small glitches
within their iOS software on their iPhones which has
been quickly updated by them to fix all problems.
Source:
http://www.theatlanticwire.com/technology/2012/09/ever
ything-you-need-know-about-why-apple-maps-problem-
isnt-going-away-soon/57127/

9. Bibliography
 Find at least 6 sources of your info -
don’t use wikipedia
 Place the list in this order
 Surname, first name, title of book,
website, date, place it was published,
who it was published by

10. Bibliography
 Find at least 6 sources of your info -
don’t use wikipedia
 Place the list in this order
 Surname, first name, title of book,
website, date, place it was published,
who it was published by