Apple Inc.

Apple Inc.

Team Members:
Dimitriadis Savvas
Gazis Nikolaos
Koukou Katerina
Teterina Xenia

Case Abstract
• Apple Inc., originally Apple Computer, Inc., is an American multinational
corporation headquartered in California that designs, develops, and sells consumer
electronics, computer software and personal computers. The company was founded on April
1, 1976, and incorporated on January 3, 1977. The word "Computer" was removed from its
name on January 9, 2007, to reflect its shifted focus towards consumer electronics. Its best-
known hardware products are the Mac line of computers, the iPod, the iPhone and the iPad.
Its software includes the OSX and iOS operating systems, iCloud, the iTunes media
browser, the iLife and iWorkcreativity and production suites.

• Apple is the world's third-largest mobile phone maker after Samsung and Nokia.
Fortune magazine named Apple the most admired company in the United States in 2008,
and in the world from 2008 to 2012. However, the company has received widespread
criticism for its contractors' labor practices, and for its environmental and business
practices. As of August 2012, Apple has 393 retail stores in fourteen countries as well as the
online Apple Store and iTunes Store. It is the largest publicly-traded corporation in the
world by market capitalization, with an estimated value of US$626 billion as of September
2012. The Apple market cap is larger than that of Google and Microsoft combined. As of
September 24, 2011, the company had 60,400 permanent full-time employees and 2,900
temporary full-time employees worldwide; its worldwide annual revenue in 2010 totaled
$65 billion, growing to $108 billion in 2011.

Vision Statement

• ―We believe that we are on the face of the earth to make great products
and that's not changing. We are 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-pollination of our
groups, which allow us to innovate in a way that 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 when we're
wrong and the courage to change. And regardless of who is in what job
those values are so embedded in this company that Apple will do
extremely well.‖
Timothy D. Cook
Apple‘s CEO

Mission Statement

• 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.

EFE Matrix The worldwide smartphones
market segment is forecast to
Opportunities record strong growth in
Weight Rating Weighted
Score
coming years. The shipments
Global smartphone market is on fire
1 Global smartphone market is on fire for smartphones are expected
0,10 4 0,40
2 Increase in worms and viruses on PCs so the antivirus solution can to exceed 400 million globally.
be developed by Apple The0,05 4 0,20
number is expected to
3 Possible ventures with other companies reach approximately 850
0,02 2 0,04
4 Downloadable music and MP3 players are highly marketable
million by the end of 2013.
0,02 2 0,04
Apple is the third largest
5
The demand for tablets is rapidly increasing
The online computers sales is 0,04 3 0.12
player in the smart phone
increasing over the years.
6 The laptop and tablet market growth is high market segment in the 0.21
0,07 3 US
Globally, tablet shipments are
7 Constant growth of PC and mobile phone industry since launching its first mobile
0,05 4 0.20
expected to touch 150 million
8units by 2013. Appleto expand to
Huge untapped market launched device, iPhone, in 2007.
0,07 3 0,21
9the iPad in January internet music and other online programs
Growing demand for 2010. In
0,02 2 0,04
FY2010, the services)
(cloud based iPad generated $5
billion in revenues and
10 Robust outlook for mobile advertising market
The0,05 3 0,15
laptop and tablet
showed unit sales of 7.5
11 Strong growth in smartphone segment. 0,07 3 0,21
market growth is high
12 Open market in first quarter of
million. In the gaming console industry to compete with PS3 and
2011, iPad sales were 7.33 0,01 1 0.01
Xbox
million.
13 Growing market of ―Green‖ and energy efficient products 0,01 2 0.02

Increasing popularity of Android may affect
the attractiveness of Apple‘s iOS affecting the
Threats Weight Rating Weighted
market share of Apple. The Google Android
Score
operating system (OS) for smartphone is
1 Economic recession can have a significant negative effect on the rapid popularity. With the acquisition
gaining
company due to higher prices of its products 0,09 2 0,18
of Android Inc. in 2005, and the subsequent
Rising popularity of Google launch of Google‘s mobile OS ―Android‖
2Android popularity of Google Android and Windows ecosystems in the competitive landscape of
Rising and Windows ecosystems changed
the mobile and tablet space
in the mobile and tablet space 0,06 2 0,12
smartphone business globally. Moreover, the
online application store for Android
3 Intense competition from Dell, HP, Sony and Toshiba applications ―Android Market‖ is growing at a
0,03 2 0,06
rapid pace. The Android Market currently
4 Dependence on specific suppliers 0,02 2 0,04
offers approximately 250,000 apps, compared
to 350,000 offered by Apple‘s App Store,
5 Companies not seeing Apple as compatible with their software 0,04 1 0,04
although Android has been a late entrant in the
6 Downloading free music from other online source without paying
market. 0,02 1 0.02
Apple is involveditin several legaliTunes sales
cost is common may impact the
7actions, including lawsuits alleging
Microsoft launched Microsoft Windows 7 and 8 which are gaining
patent infringement and antitrust 0,05 2 0.10
market share
violations. Many of the suits are from
8 The growing tablet market is competing with ipad Apple is involved in several 0,06
smaller companies, but notable plaintiffs 0,02 3
include Nokia. These lawsuits present a legal actions
9threat because of the possibility of
Apple is involved in several legal actions 0,06 3 0,18
10 High product substitution the ongoing
unfavorable judgments and 0,03 2 0,06
costs associated with legal defenses.
TOTAL 1,00 2.71

IFE Matrix Apple has a strong focus on research and
development (R&D) as continual
Strengths investment in R&DRating Weighted Score
Weight is critical for the
development and enhancement of
1 iTunes Music Store is an excellent source of revenue, especially with innovative products and technologies. In
the
iPod and the accessibility on Windows platform. 0,03 3 0,09
addition to evolving its PCs and related
2 Apple Computers have good brand loyalty and image by setting high solutions, the company continues to
standards for quality and use. capitalize 0,09 convergence of the PC,
on the 4 0,36
Strong Research & Development digital consumer electronics and mobile
Intel Computers in 2006 – Present
3 Partnership withdriving innovation, creating (Intel's
Department communications by creating and 0,08
0,04 2
microprocessors) (free of viruses) and
its own software refining innovations, such as
hardware
4 Strong Research & Development Department driving innovation, creatingiPod, iPhone, iTunes Store, Apple
the
its own software (free of viruses) and hardware 0,10 4
TV and iPad. The company‘s R&D 0,40
expenditure was $1,782 million, $1,333
5 Creators of high tech technology such as iphone or imac 0.07 4 0.28
million and $1,109 million in FY2010,
2009 and 2008, respectively. The
6 Holds 5%brand imageand is 4th largest player in mobile phone market.
Strong market share provides an edge over 0.08 3 0.16
company‘s research and development
regional and global competitors. The
7 18.5% market share of global smartphone market spending is focused on further 0.27
0.09 3
Apple brand is well recognized among
developing its existing Mac line of
8 Robust financial performance. products enjoy a
most consumers. Apple‘s (strengthens investors‘ confidence and
personal computers.
high level of brand awareness and brand
provides capital for future growth avenues) 0.08 4 0.32
Low debt—more maneuverable.its markets.
recognition throughout all
This is evident with the rapid sales of new
9 Entering into new product lines ex: Laptops to iPhones and iPads 0,03 3 0,09
Apple launches. For instance, net sales
10 Excellent distribution network globallyservicesits products accessibleApple Computers have good brand
of iPad and related products and to make
0.04 4
loyalty and image by setting high 0.16
online $5 billion and unit sales of iPad were
was and stores
7.5 million during 2010 standards for quality and use.
11 The iOS has given it a lead as compare to its competitors 0.02 3 0.06

Weaknesses Weight AS TAS AS Patent infringement
TAS AS TAS
lawsuit may affect
Weak relationship with Microsoft. (low product
Patent infringement. financial condition and
1 0,05 0 0,00 0 0,00 0 0,00
compatibility) operating results. The
Apples market share is far behind from major company is involved in
2 0,07 0 0,00 3 0,21 2 0,14
competitor Microsoft. legal complaints relating
3
Its high priced products and accessories make them
0,04 3 0,12 2
to patent infringement.
0,08 4 0,16
inaccessible to many of customers For example, in January
It has less presence in B2B market, as compare to its 2010, Nokia filed a
competitors like Dell and HP. It can be seen that Apple revised suit against
4 0,03 0 0,00 0 0,00 0 0,00
mainly focuses on B2C so its losing large chunk of Apple with the US
market
International Trade
Comes without expandable memory and the battery is Commission (ITC),
5 0,01 0 0,00 0 0,00 0 0,00
fixed (in mobile products)
alleging that Apple has
6 Former CEO Steve Jobs died 0,04 3 0,12 1 infringed Nokia‘s patent
0,04 0 0,00
Coming off of the failure of two items apple tv and s in0,00
almost0all of its
7 0,02 3 0,06 0 0,00
mac mini mobile phones,
Apple’s market share is
8 Patent infringement. 0,02 1 0,02 0 0,00 0 0,00
portable music players,
far behind from major
Not shareholder friendly (did not declare or pay cash and0,00
computers. 0,04
9 competitor Microsoft. 0,04 0 0,00 0 1
dividends in either 2011 or 2010)
10 Product recalls. 0,01 2 0,02 0 0,00 0 0,00
TOTAL 2,36 2,10 3,02

Competitive Profile Matrix

CPM Apple Microsoft Dell Samsung Nokia

Critical Success factors
Weight Rating Score Rating Score Rating Score Rating Score Rating Score

Store Locations 0,10 4 0,40 3 0,30 2 0,20 2 0,20 3 0,30

Financial profit 0,12 4 0,48 4 0,48 2 0,24 2 0,24 2 0,24

Consumer loyalty 0,10 4 0,40 2 0,20 2 0,20 3 0,30 3 0,30

Market penetration 0,11 3 0,33 4 0,44 2 0,22 4 0,44 3 0,33

Advertising 0,07 3 0,21 4 0,28 2 0,14 3 0,21 3 0,21

Product variety 0,09 2 0,18 3 0,27 3 0,27 4 0,36 4 0,36

Market Share 0,11 2 0,22 4 0,44 2 0,22 3 0,33 3 0,33

Product quality 0,08 4 0,32 3 0,24 4 0,32 3 0,24 2 0,16

Price competitiveness 0,10 1 0,10 3 0,30 3 0,30 3 0,30 4 0,40

e-commerce 0,06 4 0,24 4 0,24 2 0,12 2 0,12 1 0,06

Employee dedication 0,06 4 0,24 3 0,18 3 0,18 2 0,12 3 0,18

Totals 1,00 3,12 3,33 2,41 2,86 2,87

Financial Ratio Analysis

• Apple‘s Annual Report indicates that its business industry is Computer Hardware
and its sector is technology. Yet, many analysis consider Apple as being a direct
competitor with other hardware manufacturers such as Hewlett-Packard and even
Google, yet there is no comparison between Apple and other phone-related
manufacturers or devices, through 38% of its business is driven by iPhone and
related products. So, such competitors like Samsung or Nokia, should be strongly
considered due to the fact that they run its businesses in the same field. This usually
happens and is always a challenge when companies have wide product lines with a
different marketing mix in each line, like Apple which both belongs to the industry
of ―Computer Hardware‖ and ―Telecommunication Services‖.


Ratios Apple Google HP Industry

Market Cap 498.3 174.48 89.80 320.58

% Qtrly Rev Growth 82.70 26.60 3.60 24.30

$ Revenue 108.249 31.12 127.16 87.45

%Gross Margin 39.07 64.97 24.14 39.07

$ EBITDA 36.02 12.16 18.25 26.73

%Operating_Margin 29.02 34.35 10.49 31.92

$ Net Income 25.92 8.85 9.12 N/A

$ EPS 27.68 27.29 3.92 20.99

Employees 46,600 26,316 324,600 100,300

Price / Earnings 11.9 20.1 -4.9 13.6

Dividend yield% 1.0 N/A 3.9 1.3

Ratios Apple Microsoft Dell Samsung Nokia

Revenue Net-sales(mil) 108,249 69,943 61,494 86,860 30,376

Gross margin % 40.5 77.7 18.5 25.2 29.3
Operating income 33,790 27,161 3,433 8,413 -0,843
Operating margin % 31.2 38.8 5.6 9.7 -2.8
Net income 25,922 23,150 2,635 7,210 -0,915
Earnings per Share 27.68 2.69 1.35 48.03 -0.24
Dividends N/A 0.61 N/A N/A 0.26
Net margin % 23.95 33.10 4.29 8.3 -3.01
Asset Turnover (Avg) 1.13 0.72 1.70 1.08 1.03
Return on Assets 27.07 23.77 7.29 8.93 3.09
Financial Lvrg (Avg) 1.52 1.90 4.97 1.32 3.05
Return on equity 41.67 44.84 39.31 11.89 -8.87

Return on invested Capital 41.67 38.23 22.44 11.88 -6.24

Current ratio 1.61 2.60 1.49 1.46 1.46
Quick ratio 1.35 2.35 1.26 0.72 1.04
Receivable turnover (efficiency
19.9 5.00 9.97 7.60 5.24
ratio)

Ratios APPLE DELL HP SAMSUNG GOOGLE INDUSTRY
Profitability Ratios
Gross Margin (%) 40,05 22,3 24,14 25,2 64,97 39,07
Operating Margin
29,02 5,6 10,49 9,7 34,35 31,92
(%)
Return on Assets (%) 27,07 6,9 -4,7 8,93 11,8 8,03

Return on equity (%) 41,67 41,86 19,8 11,89 15,5 23,9

EBIT Margin (%) 35,6 6,4 -3,1 N/A 28,1 16,75
Leverage 1,5 4,5 3,7 N/A 1,3 2,75
Liquidity Ratios
Current Ratio 1.61 1,49 1,1 1,46 3,9 1,9
Quick Ratio 1,35 1,26 0,6 0,72 3,7 1,5
Working Capital per
20.32 7.44 2.7 N/A 128.99 38.9
share ($)
Other Ratios
Earnings per share 27.68 3.49 3.21 48.03 6.53 15.5

Receivable Turnover 19.9 9.97 6.1 7.60 7.0 10.1

Assets Turnover 1.1 1.4 1.0 1.2 0.6 1.06

Interest Coverage 15.6 15.6 N/A N/A 161.1 64

The table below shows some financial statement data for Apple during the last five years
Financial Year 2012 2011 2010 2009 2008
Earnings per share Trend of Apple‘s basic ratios during ‗08-‘12
($) 44.15 27.68 15.15 6.29 9.08
50
Profit Margin (%) 26.67 23.95 21.48 19.19 14.88
45
Return on equity 40
(%) 42.84 41.67 35.28 31.27 27.19
35
Return on Assets
(%) 23.70 22.28 18.64 17.34 12.22
30
Return on Equity
Price per sales 25 3.50 2.92 3.20 2.5
Gross Margin 4.41
20 Operating Margin
Price per Earnings 11.89 12.31 15.10 19.04
Return on Assets 30.17
15
Price to book Value
Ratio 10 4.16 4.12 4.37 3.39 6.81
Book Value per 5
share ($) 126.1 82.64 52.31 35.32 23.74
0
Gross Margin (%) 43.9
2008 2009 40.5
2010 2011 34.4
2012 40.1 34.3
Operating Income
($ mil) 55,241 33,792 18,387 11,744 6,271
Operating Margin
(%) 35.3 31.2 28.2 27.4 19.3

Assets Turnover 1.07 1.13 1.06 0.99 1.00

SPACE MATRIX
Below are provided the most important determinants of the organization overall strategic position.
Internal Analysis External Analysis
Financial Position (FP) Stability Position (SP)

Liquidity 7 Technological changes -1
Earnings per share 6 Price elasticity of demand -6
Sales 7 Competitive pressure -3
Revenues 7 Barriers to entry into Market -4
Return on equity 5

Financial Position (FP) Average 5,8 Stability Position (SP) Average -3,5

Liquidity: according to the current ratio Apple is one of the
most reliable corporations within the Industry with minimum Technological changes: the Company has been an innovator
investment risk in the area of computer hardware and telecommunications
Earnings per share: the trend during the last years shows that since its recovery
Apple from 2008 to 2012 this has been increased four times. Price elasticity of demand: high prices of Apple‘s products is
In comparison to the Industry this ratio shows that Apple is a major weakness
extremely shareholders friendly corporation, which indicates Competitive pressure: the companies which Apple is
great internal strength competing with, are urban corporations with dynamic
Sales: is far better from all Apple‘s competitors strategies, both in computer hardware & telecommunication
Revenues: Apple‘s consolidated income statements and sector
balance sheets note that Apple‘s revenues increased a Barriers to entry into market: the extreme competence
whopping 52 percent in 2010, while its net income increased advantages of the already existing companies in computer
70 percent. Also, notice that Apple has zero long-term debt hardware sector, makes it very hard for new companies to
on its balance sheet enter the market
Return on equity: Apple is second among its competitor on
return on equity

SPACE MATRIX
Below are provided the most important determinants of the organization overall strategic position.
Internal Analysis External Analysis
Competitive Position (CP) Industry Position (IP)
Market Share -6 Profit Potential 6
Product Variety -2 Growth Potential 6
Product quality -1 Financial Stability 5
Customer loyalty -1 Resource Utilization 5
Control over suppliers and distributors -3

Competitive Position (CP) Average -2,6 Industry Position (IP) Average 5,5

Market share: Apple has a very low market share according
to S&P industry survey for 2009 Profit potential: today Apple‘s profit potential is at the same
Product variety: Apple offers a wide range of technological level as industry but according to the trend observed from
products, including iPads, iPods, iPhones, iTunes, PCs and 2008-2012 it shows that Apple will soon exceed the industry
more. Apple is perhaps the best known ―first mover‖ Growth potential: demand in computer hardware products is
company ever, as the firm has a 35-year history of being the expected to increase
first to introduce blockbuster, successful new products. Financial stability: Apple has minimum long-term debts and
Product quality: Apple meanly focuses on its products quality liabilities that shows its financial stability
using the most recent technologies and innovations Resource Utilization: Apple makes reasonable management
Costumer loyalty: The i-halo effect has been synonymous of its human and material resources
with Apple for the last years. In basic terms its definition is
customers who buy an i-product, become hooked on Apple‘s
products and their ease of use.
Control over suppliers and distributors: Apple already has a
very efficient network of distributors and suppliers and
intents to develop it further

SPACE MATRIX

• After illustrating the SPACE
Matrix it is obvious that the
company should follow
aggressive strategies. This
means that Apple should
implement backward, forward,
horizontal integration, as well
as market penetration, market
development, product
development and diversification
(related or unrelated).

X‘X  5,5 + (-2,6) = 2,9
(X,Y) = (2,9 , 2,3)
Y‘Y  5,8 + (-3,5) = 2,3

Acquire Red
Create a new Develop new
Hat Linux
QSPM: Quantitative Strategic Planning Matrix game console product lines in
or/and Maxtor China and
It determines the relative attractiveness of various strategic alternatives (strong R&D
or Western India
department)
Digital
Opportunities Weight AS TAS AS TAS AS TAS
1 Global smartphone market is on fire 0,10 0 0,00 0 0,00 2 0,20
Increase in worms and viruses on PCs so the antivirus
2 0,05 0 0,00 4 0,20 0 0,00
solution can be developed by Apple
3 Possible ventures with other companies 0,02 4 0,08 3 0,06 1 0,02
Downloadable music and MP3 players are highly
4 0,02 2 0,04 0 0,00 0 0,00
marketable
5 The online computers sales is rapidly increasing 0,04 0 0,00 3 0,12 0 0,00
6 The laptop market growth is high 0,07 0 0,00 3 0,21 2 0,14
7 Constant growth of PC and mobile phone industry 0,05 0 0,00 1 0,05 4 0,20
8 Huge untapped market to expand to 0,07 2 0,14 0 0,00 4 0,28
Growing demand for internet music and other online
9 0,02 3 0,06 0 0,00 0 0,00
programs (cloud based services)
10 Robust outlook for mobile advertising market 0,05 0 0,00 0 0,00 0 0,00
11 Strong growth in smartphone segment. 0,07 0 0,00 0 0,00 2 0,14
Open market in gaming console industry to compete with
12 0,01 4 0,04 0 0,00 0 0,00
PS3 and Xbox
13 Growing market of ―Green‖ and energy efficient products 0,01 0 0,00 0 0,00 1 0,01

Acquire Red
Hat Linux
or Western India
department)
Digital
Threats Weight AS TAS AS TAS AS TAS

Economic recession can have a significant negative effect
1 0,09 2 0,18 3 0,27 4 1
on the company due to higher prices of its products

Rising popularity of Google Android and Windows
2 0,06 0 0,00 2 0,12 0 2
ecosystems in the mobile and tablet space

3 Intense competition from Dell, HP, Sony and Toshiba 0,03 3 0,09 2 0,06 4 3

4 Dependence on specific suppliers 0,02 0 0,00 1 0,02 3 4
Companies not seeing Apple as compatible with their
5 0,04 3 0,12 2 0,08 0 5
software
Downloading free music from other online source without
6 0,02 0 0,00 0 0,00 0 6
paying cost is common it may impact the iTunes sales

Microsoft launched Microsoft Windows 7 and 8 which are
7 0,05 0 0,00 2 0,10 0 7
gaining market share

8 The growing tablet market is competing with ipad 0,02 0 0,00 0 0,00 0 8

9 Apple is involved in several legal actions 0,06 0 0,00 0 0,00 0 9

10 High product substitution 0,03 1 0,03 0 0,00 3 10

Acquire Red
Hat Linux
or Western India
department)
Digital
Strengths Weight AS TAS AS TAS AS TAS
iTunes Music Store is an excellent source of revenue, especially
1 0,03 0 0,00 0 0,00 0 1
with the iPod and the accessibility on Windows platform.
Apple Computers have good brand loyalty and image by setting
2 0,09 2 0,18 0 0,00 0 2
high standards for quality and use.
Partnership with Intel Computers in 2006 – Present (Intel's
3 0,04 1 0,04 3 0,12 2 3
microprocessors)
Strong Research & Development Department driving
4 innovation, creating its own software (free of viruses) and 0,10 4 0,40 2 0,20 1 4
hardware
5 Creators of high tech technology such as iphone or imac 0.07 2 0,14 0 0,00 0 5
Holds 5% market share and is 4th largest player in mobile phone
6 0.08 0 0,00 0 0,00 2 6
market.
7 18.5% market share of global smartphone market 0.09 0 0,00 0 0,00 2 7
Robust financial performance. (strengthens investors‘
8 confidence and provides capital for future growth avenues) 0.08 3 0,24 2 0,16 4 8
Low debt—more maneuverable.
Entering into new product lines ex: Laptops to iPhones and
9 0,03 4 0,12 0 0,00 2 9
iPads
Excellent distribution network globally to make its products
10 0.04 3 0,12 0 0,00 4 10
accessible online and stores
11 The iOS has given it a lead as compare to its competitors 0.02 0 0,00 0 0,00 0 11

Acquire Red
Hat Linux
or Western India
department)
Digital
Weaknesses Weight AS TAS AS TAS AS TAS
Weak relationship with Microsoft. (low product
1 0,05 0 0,00 0 0,00 0 0,00
compatibility)
Apples market share is far behind from major competitor
2 0,07 0 0,00 3 0,21 2 0,14
Microsoft.
Its high priced products and accessories make them
3 0,04 3 0,12 2 0,08 4 0,16
inaccessible to many of customers
It has less presence in B2B market, as compare to its
4 competitors like Dell and HP. It can be seen that Apple 0,03 0 0,00 0 0,00 0 0,00
mainly focuses on B2C so its losing large chunk of market
Comes without expandable memory and the battery is fixed
5 0,01 0 0,00 0 0,00 0 0,00
(in mobile products)
6 Former CEO Steve Jobs died 0,04 3 0,12 1 0,04 0 0,00
Coming off of the failure of two items apple tv and mac
7 0,02 3 0,06 0 0,00 0 0,00
mini
8 Patent infringement. 0,02 1 0,02 0 0,00 0 0,00
Not shareholder friendly (did not declare or pay cash
9 0,04 0 0,00 0 0,00 1 0,04
dividends in either 2011 or 2010)
10 Product recalls. 0,01 2 0,02 0 0,00 0 0,00
TOTAL 2,36 2,10 3,02

Develop new product lines in China and India

This strategy aims to handle the high cost structure of products, as well
as to expand the product lines, which is a major opportunity. By establishing
new product lines in China and India, Apple will implement its high
technological competencies, which combined with the low labor cost of
China and India, will manage to reduce the overpricing of its products and
will gain a competitive advantage among other companies.
Apple has to focus on the global market, and both China and India are
two of the most populated countries in the world and they are experiencing
lately, increased use of computers and computer technology products. The
economies of the said countries are rapidly improving with more disposable
income than ever before.
Currently, all of Asia, accounts for about 5% of Apple‘s total revenue;
however, with more advertising and focus on China and India, can be fully
exploited because the market has no prejudices yet. If tapped properly, these
two countries can provide significant revenues for Apple in the future. This
is the alternative strategy that should be followed by Apple among the other
two, due to the highest total attractive score it took, at the QSPM process.

Epilogue

Apple, is arguably the most successful company ever in many respects.
But there are major financial risks with being the premier ―first mover‖ in any
industry. Rival firms across the globe are getting better and better at quickly
duplicating successful Apple products and offering them at lower prices.

Success of Apples iPad, iPhone and Mac‘s new versions, helped Apple to
replace Microsoft as the world‘s most valuable technology company in 2010.
Apple thinks that there is yet room for improvement, to substitute the
already created wonders.

Innovation never stops.

The Technology of the Future

Coming Straight from the Past

Apple Inc.

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