BIZX 2200 Presentation

Company: AppleProduct: iPad

Angelo Seghetti, Tia Jurkiw, Derek Bingaman, Lincoln Peters, Madison Hays

Apple’s 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.

Company History

· Formerly known as Apple Computer, Inc., Apple Inc. was created on April 1, 1976 and is based in Cupertino, California

· Apple Inc., creates and sells electronics including personal computers, computer software, and commercial servers.

· The company’s core products are the iPhone smart phone, the iPad tablet computer, the iPod portable media players, and Macintosh computer line.

· Founders of the company, Steve Jobs and Steve Wozniak, both were college drop outs from Reed College and UC Berkeley. However, Wozniak permanently ended his full-time employment with Apple on February 6, 1987, after creating Apple I and Apple II.

Product History

○ The first iPad was released on April 3, 2010

○ The most recent iPad models, the iPad Air and second generation iPad Mini, were revealed on October 22, 2013 and went on sale November 1, 2013, and November 12, 2013, respectively.

Company Financial Overview

· Net Sales - $170,910 Million

· Net Income - $37,037 Million

· Market Share – 36% market share in 2013, which is down from 52.8% in 2012. As compared to Android is 61.9% in 2013, and 45.8% in 2012.

Product Market and Need

Hospital - Cleveland Clinic

○ Electronic portable documents

○ Paper-free storage

○ Durable product

Product Manufacturing

• Manufactured by Foxconn in China

o Known for paying on time Display- $87 touch screen- $40 camera- $12.35 Battery- $32 Wireless Section- $41.50 User Interface- $15

o Total- about $227.85 plus labor

Distribution

• Shipped to Distribution center in California

o To the consumer

o To the apple store

• In our case Business to Business

o Directly to our hospital

Current Marketing Strategy

• The techniqueso Commercials-

Already has a big name Quality over price

o Ads Very simplistic Always shows product

o Face to face Going to use

Social and Sustainability Efforts

• Trade in programo We are going to look at this later

• Recycling Programo “Send us your old iPhone, iPad, Mac, or PC

for reuse or recycling. If it has monetary value, we’ll apply that toward an Apple Gift Card. If not, we can recycle it responsibly for you.”

o Also takes old phones and ipods 10%

• Clean Water Program?

Innovation #1: iProof

○ What is iProof?● Ipad made with a shatter-proof and waterproof casing.● Use of new Sapphire glass (comparable to diamonds)● Currently negotiating the pricing● Use of Liquipel (waterproofing)

● What are the goals with this innovation?

○ Create a durable, portable product for hospital use

○ Electronic, convenient filing.

iProof continued…

● What efforts and resources are needed to make this innovation successful?○ Resources: Liquipel, Slabs of Sapphire glass, current Aluminum casing

● How much will this innovation cost Apple?

○ Liquipel - $60 for consumers

■ Contract with Liquipel to get each device done for half off around $30

■ Gorilla glass currently costs $3 a piece

■ Sapphire glass is estimated to cost $30 a unit, but with

mass production we hope to get it for under 20

● Full cost would tack on a rough estimate of $80-$100

iProof continued…

● What need is there for this innovation?○ Portability○ Ability to disinfect○ Convenience

● What effect will this have on the company?

○ Increase market share

○ Spread into other businesses that need durable shatter and water-proof products

■ Construction, Mechanics, Veterinarians, etc.

○ Higher Profit Margin

Innovation #2: Buyback Program

○ What is the Buyback Program?

○ Buy in bulk, sell back in bulk

○ Continuing contracts?

○ What are the goals with this innovation?

○ Create long term relations with hospitals

Buyback Program continued…

○ What efforts and resources are needed to make this innovation

successful?

○ Minimal efforts, just the expansion of the buyback program

○ How much will this innovation cost Apple?

○ Depends on how many hospitals are interested in the program

○ Decrease profit margin, but increase sales. Should even out or increase profits

Buyback Program continued…

○ What need is there for this

innovation?

○ Cheaper way for hospitals to buy

bulk iPads for multiple uses

○ What effect will this have on the company?

○ Positive effect

○ Broader customer base, more versatility

Innovation #3: Scheduled Release Program

○ What is the Scheduled Release Program?

○ Predetermined set of release dates

○ Works in conjunction with buyback program

○ What are the goals with this innovation?

○ Keeping our business customers updated with the newest models

○ Increasing iPad sales

Scheduled Release Program continued…

○ What efforts and resources are needed to make this innovation

successful?

○ Additional marketing to promote the program to hospitals

○ Collaboration with sales team

○ How much will this innovation cost Apple?

○ Materials to advertise and spread the word

○ Salaries of added staff for project

Scheduled Release Program continued…

○ What need is there for this innovation?

○ Ease and worry-free re-ordering for businesses

○ Reduced cost

○ Up-to-date software for operations efficiency

○ What effect will this have on the company?

○ Expanded markets

○ Increased participation in buyback program

○ More sales

Summary

○iProof

○Buyback Program

○Scheduled Release Program

Questions?