"A Project Report On Apple Inc.”

Prepared By

Darshan M. Patadia B. B. A. LL.B. VI semester

Roll No. 607

Academic Year

2014-2015

Submitted To

Department of Law

Saurashtra University Rajkot

Guided By

Dr. B. G. Maniar

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CERTIFICATE

This is to certify that Mr. Darshan M. Patadia completed his project on "A Project

Report On Apple Inc.” and he has completed above project with utmost satisfaction of the

under signatory and performed his work up to mark, under the direct supervision of Dr. B. G.

Maniar.

Date:

Place: Rajkot

-----------------------

Dr. B. G. Maniar

(Head o f Law Depar tment)

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DECLARATION

I, the undersigned MR. DARSHAN M. PATADIA, student of Sixth Semester

B.B.A., LL.B. hereby declare that the project work presented in this report is my own work

and has been carried out under the supervision of Dr. B. G.Maniar,head of Saurashtra

University Law Department, Rajkot.

This work has not been submitted previously to any other university for

examination or any other purpose.

Date:

Place: Rajkot

-----------------------

(Darshan M. Patadia)

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PREFACE

Today, in almost all fields, management has become an integral part.

We need to manage over daily routine. B .B.A., LL,B., the stream of

management teaches us and helps us to apply it practically.

In this project work, I have carried all the areas of management like

marketing, production, personnel, and finance. One needs to keep equally

balanced all the departments to run the entire company smoothly. I have thus

tried to prepare this project taking into consideration all the areas and

aspects of the company.

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ACKNOWLEDGEMENT

First I would like to thank Saurashtra University,Law Department for providing me an

opportunity to flourish my knowledge apart from theory.I would also thank Dr. B. G. Maniar,

who has constantly guided me for the project.

I would like to express my greatest gratitude to the people who have helped &

supported me throughout my project. I am also grateful to teacher for his continuous support

for the project, from initial advice contacts in the early stages of conceptual inception. I am

also thankful to my parents and my elder sister for their undivided support and interest

encouraged me to go my own way, without whom I would be unable to complete my project

and finally to God who made all the things possible.

Date:

Place: Rajkot

-----------------------

(Darshan M. Patadia)

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INDEX

Chap

no.

Particulars Page No.

1. College Certificate 2

2. Declaration 3

3. Preface 4

4. Acknowledgement 5

5. Introduction (Apple Inc.) 7

6. General Information 10

7. Products 15

8. iPhone 5S 25

9. Marketing Department 32

10. Analysis 48

11. Future plan 52

12. Suggestions 54

13. Conclusion 56

14. Bibliography 58

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INTRODUCTION

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HISTORY (Apple Inc.)

When we think of innovative computer and cellular phone technology that is

constantly ever-changing, worldwide success, and brand and customer loyalty like no other,

what company usually comes to mind? Apple Inc. Now called Apple Inc., the company

began as a manufacturer of personal computers and it was first called Apple Computer, Inc.

("History of Apple Inc."). The company we now know as Apple was not as internationally

successful as it is today, but after a few bumps in the road and under the leadership of its

founder and former CEO Steve Jobs the company was back on its feet. Steve Jobs managed

to rebuild the company and Apple began to make its return in 1998 with the introduction of

some of its early hardware products including iMac, iBook, and the Power Mac G4 ("History

of Apple Inc."). The year 2001, however, was a very important year for the company. It was

the year that Apple introduced the iPod line and Apple products started to become

increasingly popular worldwide. From that year forward, the company not only changed

people's perception of music through the introduction of the iTunes music store but also

changed the way people communicate with one another since the release of the iPhone

("Technology: Changing the Way we CommunicateMediaCAST Blog | MediaCAST Blog.").

The release of the iPad has helped consumers stay organized and entertained while also

offering mobility. Furthermore, without Mac desktops and laptops there would be no "mac

users" and media professionals wouldn't have the option of using a computer that is more

reliable than its competitors (Finnie).

Aside from being a top technology company worldwide, Apple has also paired up

with the (RED) charity to enhance its marketing strategy. The goal of this collaboration with

(RED) is "to fight for an AIDS-free generation by 2015" ("Apple - (PRODUCT) RED - Help

fight AIDS in Africa."). In order to do this, Apple has created red products and every time a

consumer purchases one of the red products, the profits go to AIDS programs in Africa. The

charity has collected more than $50 million from Apple ("Apple - (PRODUCT) RED - Help

fight AIDS in Africa.). In addition to using cause marketing, the company has shown

considerable interest for its effect on the environment, specifically its environmental

footprint. One of Apple's main goals is to create environmentally friendly products. Apple

aims to do this by designing products that require less material and not only lessen carbon

emissions but eliminate common toxic substances that are used in manufacturing products

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("Apple - The Story Behind Apple's Environmental Footprint."). Additionally, Apple also

reduces greenhouse gas emissions by running several of their data centers on 100%

renewable energy. The original Apple Logo featured Isaac Newton sitting under an apple tree

with an apple about to hit his head.

Apple's aim has been to provide consumers, businesses, students, and educational

institutions with the best personal computing experience. Not only has Apple Inc. redefined

how consumers use computers at home, school, and work but has also given consumers a

whole new perspective on the mobile phone and music industry all while exemplifying social

responsibility and environmental sustainability for its stakeholders. Apple's worldwide

success is evidence that the company has succeeded in accomplishing its mission in being

one of the world's top innovative companies.

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GENERAL INFORMATION

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COMPANY AT GLANCE

Name of the firm Apple Inc.

Year of establish April 1, 1976-77

Form of organization Public limited

Area served Worldwide

Location of office Apple campus, 1 infinite loop

Cupertino, California, U.S.

Location of industry Apple campus, 1 infinite loop

Cupertino, California, U.S.

Website www.apple.com

Products Mac, iPod, iPhone, iPad, iPad Mini, Apple tv,

OS X, iLife, iWork, iOS

Industry Computer hardware, computer software,

consumer electronics, digital distribution

Founder(s) Steve jobs,

Steve Woznaik,

Ronbald Wayne

Key People Arthur D. Levinson (Chairmain),

Tim Cook (CEO),

Steve Jobs (Founder)

Number of Location 406 retail Stores

Services Apple Store, Apple Store Online, Mac App

Store, iOS Store, iTunes Store, iBooks,

iCloud

Net Income 37.037 US($) Billion

Employees 80,000

Investment 170.910 US $ Billion

Market National and international

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DEVELOPMENT OF ORGANIZATION

Apple was founded by Steven Jobs and Stephen Wozniak in 1976; Apple Computer

Company revolutionized the personal computer industry and epitomized the rise of clean

industry in the New West. Located in the Santa Clara Valley, in California, the company's

first product was the Apple I, a single-board computer with on-board read-only memory

(ROM), which sold for about $650 without a monitor or keyboard. Orders instantly soared,

and Jobs and Wozniak quickly brought out the Apple II, which included a keyboard, color

monitor, and expansions for peripheral devices (Birzer & Schweikart 2003). In 1984, Apple

introduced the Macintosh, which was aimed at the business and education markets, by which

time the company had already not only changed American industry but had reshaped entire

areas of the West around silicon. In 1996, after a series of CEOs failed to keep Apple

profitable, Steve Jobs returned under the rubric interim CEO and soon launched a new

marketing and licensing relationship with Microsoft. In 2000 his direct sales concept, the

Apple Store brought the company back to profitability (Birzer & Schweikart 2003).

Read more: http://ivythesis.typepad.com/term_paper_topics/2010/02/marketing-

strategy-of-apple-computers-inc.html#ixzz1WCe3XtBJ

In 1994 Apple computers launched a new line of computers based on the PowerPC

processor chip. The creation of the new chip was a joint venture between Apple Computers,

IBM, and Motorola, and because the new chip was capable of being compatible with the

market leading Intel chip, it was marketed as a major breakthrough in computer technology.

If emulation software was purchased by a consumer, the consumer could run both software

made for Apple computers and software made for Intel PCs on the same Apple machine. The

machine was even being called a PC with a free Mac inside. Apple computers had controlled

about 8-10 percent of the personal computer market since 1984, and recently it had been

struggling financially (Gottinger 2003). Those at Apple hoped that compatibility with the

Intel-based PC and its 85 per cent market share would dramatically increase the market share

of Apple computers. The results from the introduction of the new product were not

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everything Apple had predicted or had hoped for. The increased competition from the

PowerPC chip forced Intel to slash the price of their Pentium chips by 40 per cent. Thus

Apple did not live up to its promise of cheaper computers (Gottinger 2003).

Apple Computers Inc is considered to be one of the innovators in the computer

industry. It brought about different changes to the industry; these changes are still visible in

the present. The company‘s products were used as a basis by other computer company‘s in

designing the specifications and physical characteristics of their product. It also serves as a

meter of how products are designed. The company offers various products for the different

market it targets. The products made by the company offer something different. The paper

will discuss about Apple Inc and its' products, and the markets it serves. The paper will

analyze how forces in the marketing environment have resulted in changes in the last 5 to 10

years to the organization‘s marketing mix. The paper will also evaluate what further

environmental changes might arise in the next 5 to 10 years and consider their effect.

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SIZE OF THE COMPANY

Apple is the world‘s second-largest information techonology Company by revenue

after Samsung electronics, and the world‘s third-largest mobile phone maker after Samsung

and nokia.

As of May 2013, Apple maintains 406 retail stores in 14 countries as well as the

online Apple Store and iTunes Store. Apple is the largest publicly traded corporation in the

world, with an estimated value of US($) 415 billion as of March 2013. As of September

2012 the company had 72,800 permanent full time employees and 3,300 temporary

employees worldwide.

Apple entered the top 10 of the fortune 500 list of companies for the first time, rising

eleven places above its 2012 ranking to take the 6th

position.

FORM OF ORGANISATION

According to the form of organisation, the organisation can be

divided as follows:

Private sector unit

Public sector unit

Joint sector unit

In this firm, it is a Public Limited firm .

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PRODUCTS

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CONTENTS

1. Mac

2. iPad

3. iPod

4. Apple TV

5. Software

6. iPhone

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1. Mac

MacBook Air: Consumer ultra-thin, ultra-portable

notebook, introduced in 2008.

MacBook Pro: Professional notebook, introduced in 2006.

Mac Mini: Consumer sub-desktop computer and server,

introduced in 2005.

iMac: Consumer all-in one desktop computer, introduced in

1998.

Mac Pro: Workstation desktop computer, introduced in 2006.

Apple sells a variety of computer accessories for Macs, including Thunderbolt

Display, Magic Mouse, Magic Trackpad, Wireless Keyboard, Battery Charger, the

AirPort wireless networking products, and Time Capsule.

2. iPad

On January 27, 2010, Apple introduced their much-anticipated media tablet, the iPad,

running a modified version of iOS. It offers multi-touch interaction with multimedia

formats including newspapers, magazines, ebooks, textbooks, photos, movies, videos of

TV shows, music, word processing documents, spreadsheets, videogames, and most

existing iPhone apps. It also includes a mobile version of Safari for web browsing, as well

as access to the App Store, iTunes Library, iBookstore, contacts, and notepad. Content is

downloadable via Wi-Fi and optional 3G service or synced through the user's computer.

AT&T was initially the sole US provider of 3G wireless access for the iPad.

On March 2, 2011, Apple introduced the iPad 2, which had a faster processor and a

camera on the front and back. It also added support for optional 3G service provided by

Verizon in addition to the existing offering by AT&T. However, the availability of the

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iPad 2 has been limited as a result of the devastating earthquake and ensuing tsunami in

Japan in March 2011.

On March 7, 2012, Apple introduced the third-generation iPad, marketed as "the new

iPad". It added LTE service from AT&T or Verizon, the upgraded A5X processor, and

the Retina display (2048 by 1536 resolution), originally implemented on the iPhone 4 and

iPhone 4S. The dimensions and form factor remained relatively unchanged, with the new

iPad being a fraction thicker and heavier than the previous version, and minor positioning

changes.

On October 23, 2012, Apple's fourth-generation iPad came out, marketed as the "iPad

with Retina display". It added the upgraded A6X processor and replaced the traditional

30-pin dock connector with the all-digital Lightning connector. The iPad Mini was also

introduced, with a reduced 7.9-inch display and featuring much of the same internal

specifications as the iPad 2.

On October 22, 2013, Apple introduced the iPad Air. It added the new 64 bit Apple-A7

processor. The iPad mini with Retina Display was also introduced, featuring the Apple-

A7 processor as well.

Since its launch, iPad users have downloaded three billion apps, while the total number of

App Store downloads is over 25 billion.

3. iPod

On October 23, 2001, Apple introduced the iPod digital music player. Several

updated models have since been introduced, and the iPod brand is now the market leader

in portable music players by a significant margin, with more than 350 million units

shipped as of September 2012. Apple has partnered with Nike to offer the Nike+iPod

Sports Kit, enabling runners to synchronize and monitor their runs with iTunes and the

Nike+ website.

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Apple currently sells four variants of the iPod:

iPod Shuffle: Ultra-portable digital audio player, currently available in a 2 GB model,

introduced in 2005.

iPod Nano: Portable media player, currently available in a 16 GB model, introduced

in 2005. Earlier models featured the traditional iPod click wheel, though the current

generation features a multi-touch interface and includes an FM radio and a pedometer.

iPod Touch: Portable media player than runs iOS, currently available in 16, 32 and

64 GB models, introduced in 2007. The current generation, which released on

September 12, 2012 features the Apple A5 processor, a Retina display, and dual

cameras on the front (1.2 megapixel sensor) and back (5 megapixel iSight), the latter

of which supports HD video recording at 1080p and Siri.

iPod Classic: Portable media player, currently available in a 160 GB model, first

introduced in 2001.

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4. Apple TV

The current generation Apple TV.

At the 2007 Macworld conference, Jobs demonstrated the Apple TV, (previously known as

the iTV), a set-top video device intended to bridge the sale of content from iTunes with high-

definition televisions. The device links up to a user's TV and syncs, either via Wi-Fi or a

wired network, with one computer's iTunes library and streams from an additional four. The

Apple TV originally incorporated a 40 GB hard drive for storage, includes outputs for HDMI

and component video, and plays video at a maximum resolution of 720p. On May 31, 2007 a

160 GB drive was released alongside the existing 40 GB model and on January 15, 2008 a

software update was released, which allowed media to be purchased directly from the Apple

TV.

In September 2009, Apple discontinued the original 40 GB Apple TV and now continues to

produce and sell the 160 GB Apple TV. On September 1, 2010, alongside the release of the

new line of iPod devices for the year, Apple released a completely redesigned Apple TV. The

new device is 1/4 the size, runs quieter, and replaces the need for a hard drive with media

streaming from any iTunes library on the network along with 8 GB of flash memory to cache

media downloaded. Apple with the Apple TV has added another device to its portfolio that

runs on its A4 processor along with the iPad and the iPhone. The memory included in the

device is the half of the iPhone 4 at 256 MB; the same as the iPad, iPhone 3GS, third and

fourth-generation iPod Touch.

It has HDMI out as the only video out source. Features include access to the iTunes Store to

rent movies and TV shows (purchasing has been discontinued), streaming from internet video

sources, including YouTube and Netflix, and media streaming from an iTunes library. Apple

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also reduced the price of the device to $99. A third generation of the device was introduced at

an Apple event on March 7, 2012, with new features such as higher resolution (1080p) and a

new user interface.

5. Software

Apple develops its own operating system to run on Macs, OS X, the latest version being

OS X Mavericks (version 10.9). Apple also independently develops computer software

titles for its OS X operating system. Much of the software Apple develops is bundled with

its computers. An example of this is the consumer-oriented iLife software package that

bundles iMovie, iPhoto and GarageBand. For presentation, page layout and word

processing, iWork is available, which includes Keynote, Pages, and Numbers. iTunes,

QuickTime media player, and Software Update are available as free downloads for both

OS X and Windows.

Apple also offers a range of professional software titles. Their range of server software

includes the operating system OS X Server; Apple Remote Desktop, a remote systems

management application; and Xsan, a Storage Area Network file system. For the

professional creative market, there is Aperture for professional RAW-format photo

processing; Final Cut Pro, a video production suite; Logic Pro, a comprehensive music

toolkit; and Motion, an advanced effects composition program.

Apple also offers online services with iCloud, which provides cloud storage and syncing

for a wide range of data, including email, contacts, calendars, photos and documents. It

also offers iOS device backup, and is able to integrate directly with third-party apps for

even greater functionality. iCloud is the fourth generation of online services provided by

Apple, and was preceded by MobileMe, .Mac and iTools, all which met varying degrees

of success.

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6. iPhone

At the Macworld Conference & Expo in January 2007, Steve

Jobs introduced the long-anticipated iPhone, a convergence of an

Internet-enabled smartphone and iPod. The first-generation iPhone

was released on June 29, 2007 for $499 (4 GB) and $599 (8 GB)

with an AT&T contract. On February 5, 2008, it was updated to have

16 GB of memory, in addition to the 8 GB and 4 GB models. It

combined a 2.5G quad band GSM and EDGE cellular phone with

features found in handheld devices, running scaled-down versions of

Apple's Mac OS X (dubbed iPhone OS, later renamed iOS), with

various Mac OS X applications such as Safari and Mail. It also

includes web-based and Dashboard apps such as Google Maps and

Weather. The iPhone features a 3.5-inch (89 mm) touchscreen

display, Bluetooth, and Wi-Fi (both "b" and "g").

At Worldwide Developers Conference (WWDC) on June 9,

2008, Apple announced the iPhone 3G. It was released on July 11,

2008, with a reduced price of $199 for the 8 GB version, and $299 for the 16 GB version.

This version added support for 3G networking and assisted-GPS navigation. The flat

silver back and large antenna square of the original model were eliminated in favor of a

curved glossy black or white back. Software capabilities were improved with the release

of the App Store, providing applications for download that were compatible with the

iPhone. On April 24, 2009, the App Store surpassed one billion downloads. At WWDC

on June 8, 2009, Apple announced the iPhone 3GS. It provided an incremental update to

the device, including faster internal components, support for faster 3G speeds, video

recording capability, and voice control.

At WWDC on June 7, 2010, Apple announced the redesigned iPhone 4. It features a

960x640 display, the Apple A4 processor also used in the iPad, a gyroscope for enhanced

gaming, 5MP camera with LED flash, front-facing VGA camera and FaceTime video

calling. Shortly after its release, reception issues were discovered by consumers, due to

the stainless steel band around the edge of the device, which also serves as the phone's

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cellular signal and Wi-Fi antenna. The issue was corrected by a "Bumper Case"

distributed by Apple for free to all owners for a few months. In June 2011, Apple

overtook Nokia to become the world's biggest smartphone maker by volume.

On October 4, 2011, Apple unveiled the iPhone 4S, which was first released on

October 14, 2011. It features the Apple A5 processor, and is the first model offered by

Sprint (joining AT&T and Verizon Wireless as the United States carriers offering iPhone

models). On October 19, 2011, Apple announced an agreement with C Spire Wireless to

sell the iPhone 4S with that carrier in the near future, marking the first time the iPhone

was officially supported on a regional carrier's network. Another notable feature of the

iPhone 4S was Siri voice assistant technology, which Apple had acquired in 2010, as well

as other features, including an updated 8MP camera with new optics. Apple sold 4 million

iPhone 4S phones in the first three days of availability.

On September 12, 2012, Apple introduced the iPhone 5. It added a 4-inch display, 4G

LTE connectivity, and the upgraded Apple A6 chip, among several other improvements.

Two million iPhones were sold in the first twenty-four hours of pre-ordering and over

five million handsets were sold in the first three days of its launch.

A patent filed in July 2013 revealed the development of a new iPhone battery system that

uses location data in combination with data on the user's habits to moderate the handsets

power settings accordingly. Apple is working towards a power management system that

will provide features such as the ability of the iPhone to estimate the length of time a user

will be away from a power source to modify energy usage and a detection function that

adjusts the charging rate to best suit the type of power source that is being used.

In March 2013, one of the largest cellular phone companies in the United States, T-

Mobile, announced that it would begin selling the iPhone 5 on April 12. The

announcement of the iPhone came with the announcement that the company would begin

implementing 4G cellular service for its users.

Upon the launch of the iPhone 5S and iPhone 5C, Apple sold over nine million devices in

the first three days of its launch, which sets a new record for first-weekend smartphone

sales. This was the first time that Apple has simultaneously launched two models and the

inclusion of China in the list of markets contributed to the record sales result.

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On October 15, 2013, U.S. Cellular, the United States fifth largest cell phone provider,

announced that it would in fact begin to carry the iPhone. It is the last of the five major

carriers, including AT&T, Verizon, Sprint, and T-Mobile to acquire the phone. The phone

went on sale on November 8 at U.S. Cellular stores around the country. The finalization

of a deal between Apple and China Mobile, the world's largest mobile network, was

announced in late December 2013. The multi-year agreement provides iPhone access to

over 760 million China Mobile subscribers.

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iPhone 5S

iPhone 5S is a smartphone developed by Apple Inc. It is part of the iPhone line, and

was released on September 20, 2013. Apple held an event to formally introduce the phone,

and its mid-range counterpart, the iPhone 5C, on September 10, 2013.

As with the principle of iPhone 3GS and iPhone 4S, iPhone 5S is a revised version of its

predecessor, iPhone 5. The phone maintains a similar design to its predecessor, aside from

the introduction of a new home button design using a laser-cut sapphire cover surrounded by

a metallic ring, Touch ID, a fingerprint recognition system built directly into the home button

which can be used to unlock the phone and authenticate App Store and iTunes Store

purchases, and an updated camera with a larger aperture and a dual-LED flash optimized for

different color temperatures. It also introduced the A7 dual-core processor, the first 64-bit

processor to be used on a smartphone, accompanied by the M7 "motion co-processor", a

dedicated processor for processing motion data from its

accelerometer and gyroscopes without requiring the

attention of the main processor. It was also the first Apple

device to ship with the newest version of the iOS mobile

operating system, iOS 7, which introduced a revamped

visual appearance and other new features.

Reception towards the device was generally positive, with

some outlets considering it to be the best smartphone

available on the market due to its upgraded hardware,

Touch ID, and other changes introduced by iOS 7.

However, others criticized iPhone 5S for being too similar

to its predecessors, while others showed security concerns

about the Touch ID system. iPhone 5S, along with iPhone

5C, sold nine million units on their weekend of release,

breaking Apple's sales record for iPhones, and was the best

selling phone on all major US carriers in September 2013.

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HISTORY

The iPhone 5S was announced during a keynote at 4 Infinite Loop on September 10, 2013.

Before its official unveiling, media speculation

primarily centered around reports that the next iPhone

would include a fingerprint scanner; including Apple's

July 2012 acquisition of AuthenTec, a developer of

mobile security products, references to a fingerprint

sensor on the home button in the beta release of iOS 7

and leaked packaging for an iPhone 5S showing that

the traditional home button now had a metallic "ring" around it. Similar ring-based imagery

was seen on the official invite to Apple's iPhone press event in September 2013, where the

new device was unveiled. Shortly before its official unveiling, The Wall Street Journal also

reported the rumor.

Apple announced iPhone 5c and iPhone 5s during a media event at its Cupertino headquarters

on September 10, 2013. While iPhone 5C became available for preorder on September 13,

2013, iPhone 5S was not available for preorder, however was released on the same day as the

5C, September 20, 2013. While most of the promotion focused on Touch ID, the 64-bit Apple

A7 was also a highlight during the event:

This is the first-ever 64-bit processor in a phone of any kind. I don‘t think the other guys are

even talking about it yet. Why go through all this? The benefits are huge. The A7 is up to

twice as fast as the previous-generation system at CPU tasks, and up to twice as fast at

graphics tasks, too.

—Phil Schiller, Apple keynote at 4 Infinite Loop on September 10, 2013

Schiller then showed demos of Infinity Blade III to demonstrate the A7's processing power

and the device's camera using untouched photographs. The release of iOS 7 on September 18,

2013, was also announced during the keynote.

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On September 20, 2013, iPhone 5S was released in the United States, United Kingdom,

Canada, China, France, Germany, Australia, Japan, Hong Kong, and Singapore. It was

released in 25 additional countries on October 25, 2013, and in 12 countries on November 1,

2013.

FEATURES

Operating system and software

Jonathan Ive designed iOS 7, which uses a flat and colorful design in comparison

to the glossy look of iOS 6, which also incorporated skeuomorphic elements.

Main articles: iOS and iOS 7

Furt her information: iOS version history, iTunes Radio, and AirDrop

The iPhone 5S features iOS, Apple's mobile operating system. The user interface

of iOS is based on the concept of direct manipulation, using multi-touch gestures.

Interface control elements consist of sliders, switches, and buttons. Interaction with the

OS includes gestures such as swipe, tap, pinch, and reverse pinch, all of which have

specific definitions within the context of the iOS operating system and its multi-touch

interface. Internal accelerometers are used by some applications to respond to shaking the

device (one common result is the undo command) or rotating it vertically (one common

result is switching from portrait to landscape mode).

iPhone 5S is supplied with iOS 7, released on September 20, 2013. Jonathan Ive,

the designer of iOS 7's new elements, described the update as "bringing order to

complexity", highlighting features such as refined typography, new icons, translucency,

layering, physics, and gyroscope-driven parallaxing as some of the major changes to the

design. The design of both iOS 7 and OS X Mavericks (version 10.9) noticeably depart

from skeuomorphic elements such as green felt in Game Center, wood in Newsstand, and

leather in Calendar, in favor of flat, colourful design.

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The phone can act as a hotspot, sharing its Internet connection over WiFi,

Bluetooth, or USB, and also accesses App Store, an online application distribution

platform for iOS developed and maintained by Apple. The service allows users to browse

and download applications that were developed with Xcode and the iOS SDK and were

published through Apple.

iOS 7 adds AirDrop, an ad-hoc WiFi sharing platform. Users can share files with

the iPhone 5 onwards, the iPod Touch (5th generation), iPad (4th generation), or iPad

Mini. The operating system also adds Control Center, which gives iOS users access to

commonly used controls and apps. By swiping up from any screen–including the Lock

screen–users can do such things as switch to Airplane mode, turn Wi-Fi on or off, adjust

the display brightness and similar basic functions of the device. It also includes a new

integrated flashlight function to operate the reverse camera's flash LED as a flashlight.[26]

The iPhone 5S functions as a media player, and includes Apple Maps and Passbook. The

mapping application includes turn-by-turn navigation spoken directions, 3D views in

some major cities and real-time traffic.[27]

Users can rotate their device horizontally to

landscape mode to access a collage of album covers.

The 5S includes Siri, an intelligent personal assistant and knowledge navigator.

The application uses a natural language user interface to answer questions, make

recommendations, and perform actions by delegating requests to a set of Web services.

Apple claims that the software adapts to the user's individual preferences over time and

personalizes results. iOS 7 adds new male and female voices, new system setting

functionalities, a redesign to match the rest of the operating system, and integration with

Twitter, Wikipedia, Bing, and Photos. Facebook comes integrated through Apple's native

apps. Facebook features can be directly accessed from within native apps such as

Calendar which can sync Facebook events, or use Facebook's like button from within the

Apple App Store. iTunes Radio, an internet radio service, is also included on iPhone 5S.

It is a free, ad-supported service available to all iTunes users, featuring Siri integration on

iOS. Users are able to skip tracks, customize stations, and purchase the station's songs

from iTunes Store. Users can also search through their history of previous songs.

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DESIGN

Design and Hardware of iPhone 5S

iPhone 5S's home button has been updated with a flat

design to feature Touch ID.

The camera has a larger aperture (f/2.2) and larger sized

pixels in its image sensor than previous iPhone models and

has dual "True Tone" flashes.

The "iPhone" wordmark on the back of an iPhone 5S is now set in a thinner version of

the Myriad typeface.

The iPhone has a minimal hardware user interface, featuring five buttons. The only physical

menu button is situated directly below the display, and is called the "Home button" because it

closes the active app, accesses Touch ID, and navigates to the home screen of the interface.

The device maintains a similar design to iPhone 5, with a 4 in (10 cm) LCD touch screen,

with a screen resolution of 640×1136 at 326 ppi. However its home button has been updated

with a new flat design using a laser-cut sapphire cover surrounded by a metallic ring; the

button is no longer concave, nor does it contain the familiar squircle icon seen on previous

models. The phone itself is 0.30 in (7.6 mm) thick and weighs 112 grams (4.0 oz). The phone

uses an aluminum composite frame. The device is available in three color finishes; "space-

grey" (replacing black with slate trim), white with silver trim, and white with gold trim.

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iPhone 5S is powered by the new Apple A7 system-on-chip, which the company claimed was

the first 64-bit processor ever used on a smartphone, with the pre-installed iOS 7 operating

system and its pre-loaded apps being optimized for 64-bit mode, promising increased

performance. Performance may be negligible at release without the developers updating their

apps.[39]

The A7 processor is manufactured by Samsung,[40]

and is accompanied by a new M7

"motion co-processor", a dedicated processor for processing motion data from its

accelerometer and gyroscopes without requiring the attention of the main processor, which

integrates with iOS 7's new CoreMotion APIs. M7 motion coprocessor will help to improve

battery life of iPhone 5S by keeping away motion related task from main CPU.

TOUCH ID IMPACT

A number of technology writers, including Adrian Kingsley-Hughes and Kevin Roose

of New York believed that the fingerprint scanning functionality of iPhone 5S could help spur

the adoption of the technology as an alternative to passwords by mainstream users (especially

in "bring your own device" scenarios), as fingerprint-based authentication systems have only

enjoyed wider usage in enterprise environments. However, citing research by biometrics

engineer Geppy Parziale, Roose suggested that the CMOS-based sensor could become

inaccurate and wear out over time unless Apple had designed the sensor to prevent this from

occurring. Brent Kennedy, a researcher of the United States Computer Emergency Readiness

Team, recommended that users not immediately rely on the technology, citing the uncertainty

over whether the system could properly reject a spoofed fingerprint.

Following the release of iPhone 5S, the German Chaos Computer Club announced on

September 21, 2013 that they had bypassed Apple's new Touch ID fingerprint sensor by

using "easy everyday means." The group explained that the security system had been

defeated by photographing a fingerprint from a glass surface and using that captured image as

verification. The spokesman for the group stated: "We hope that this finally puts to rest the

illusions people have about fingerprint biometrics. It is plain stupid to use something that you

can't change and that you leave everywhere every day as a security token." However, in 2013,

39% of American smartphone users used no security measures at all to protect their

smartphone.

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TIMELINE OF MODEL

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MARKETING DEPARTMENT

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CONTENT

I. Introduction

II. Organization Chart

III. Market Segment

IV. Product & Positioning

V. Pricing

VI. Target Market

VII. Sales Promotion

VIII. Advertisement

IX. Distribution

X. Competitors

XI. Consumer Problem Handling

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I. INTRODUCTION

Market is the place where buying and selling is carried out by buyers

and sellers i.e. trading activity are carried out.

Marketing is a social and management process that involves identifying

unsatisfied needs or wants of the consumers, producing goods or services to

satisfy those needs or wants, determining appropriate price, promotion and

distributing and maintaining relation with the market.

In today‘s modern area each and every firm gives priority to have a

different marketing department. Marketing i nvolves the activities such as

advertising, publishing, market research, distribution aspect, sales promotion,

etc.

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II. ORGANISATION CHART

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III. MARKET SEGMENT

The market segment of the company is divided into 4 classes. Each class represents a

certain economic standing of people in the society. The company makes sure that they cover

all the segments in the society they are operating in. The company has specialized prices for

the different market segment, this will ensure that the clients will have lesser doubts about

taking a look at the company‘s product and the products that they can afford.

IV. PRODUCT AND POSITIONING

Apple is a computer company that specializes in the production of personal computers

and computer accessories. Apple has produced many different types of products and is

primarily known for the advancement of multimedia personal computers. Most people that

are involved with video, music, pictures, and sound use Apple computers for their projects

because of the quality of the equipment that Apple uses. "The Group's principal activities are

to design, manufacture and market personal computers and related software, peripherals and

personal computing and communicating solutions" (Winthrop Corporation, 2006). Apple has

many different products other than the personal computer.

It is widely recognized that Apple is a premium brand that demands and earns a price

premium. This price premium spans the entire Apple product lineup encompassing the

Macintosh, iPod, iPhone, software, and accessories. Apple's positioning is aligned with

targeting a less price sensitive customer. As a result, Apple's culture and internal activities

are structured to meet the needs of these customers; strategists call this needs-based

positioning. Apple has created a culture and a set of activities to differentiate itself from

rivals in order to meet the needs of their target customers.

If Apple were to attempt to compete for all customer segments, it would have to lower

product prices. The danger with such an approach is that it would not only undermine and

erode the company's premium brand image but it would also undermine the company's

culture and internal activities. So what has Apple done in recent history to the Macintosh

product line to demonstrate this premium positioning? Each new Mac revision has either

maintained or been subjected to modest price increase while Apple has simultaneously

improved product features. A few examples include the introduction of the unibody

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MacBook and MacBook Pro, larger displays on the iMac, and the replacement of the $499

Mac mini with a higher priced model. The motive is clear; protect the brand position via a

tradeoff. The criticism to reduce prices has been ignored by Apple. Why hasn't Apple

lowered Mac prices? In strategic terms, Apple has conducted a trade-off. Continue to appeal

to customers that have a willingness to pay (WTP) instead of appealing to a wide range of

customer segments that have varying price sensitivities. A larger customer base would not

only undermine the company's strategic position but it would also be misaligned with the

company's internal activities. At a basic level of analysis, a price reduction will set a

precedent that will not be easily reversed. More damaging however is the potential for brand

erosion and customer confusion about the brand.

Apple's positioning, brand image, and loyal following have created an entry barrier

that PC vendors must cross in order to enter the premium computer market, a market that the

Macintosh has exploited for years. Customer loyalty, advertising, lower price sensitivity of

target customers (relatively inelastic demand), sunk costs, patents and innovation speak to

this point. Apple products appeal to buyers who are not price conscience and therefore, price

elasticity is not a major concern.

V. PRICING

The different types of pricing strategies Apple uses is that they set their products and

offers different price ranges for each product based on the amount of storage (gigabytes) the

product offers. Apple‘s strategic pricing of their products has helped the company succeed,

because whenever a new Apple product comes out, many customers are already waiting in a

never ending line to buy this hot new product. After a quarter or so, Apple lowers the price

of the product for example, when the original iPhone was released one quarter later, ―Apple

cut the retail price by $200 each (gave $100 rebate coupon to all of the earlier buyers‖

(Seeking Alpha).

David Bui CEO and Founder of Saleschase.com said ―The most potent weapon in

Apple‘s pricing strategy is differentiation. Differentiation is what allows Apple to price its

products at a premium and compel customers to compare Apple products with other Apple

products, rather than with lower-priced products from other reputed marketers. Apple

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products look, feel and seem very different from competitors‘ products‖ (Saleschase.com).

This shows that Apple is a stronger competitor in comparison with some of the other

technological companies who are companies out there.

The similarities of the iPod, iPhone, iPad, iPod Touch, iMac, is that for each product

one can purchase a product with the capacity varying from as little as 2G, to as much as

64GB from all of the different models and products Apple offers. In fact, they all have

versions that you can purchase with more capacity capability. It is interesting because people

want to pay that extra money to get the best features on their product, whereas the oldest

versions would just be less extravagant and less ―cool‖ than the hottest version out.

Recently Apple released the iPhone 5 that everyone has been raving about. The price

that is set based on the capacity of the phones is 16GB for $199, 32GB for $299, and 64GB

for $399 (Apple). Due to the iPhone 5, Apple lowered the prices for both the iPhone 4S and

the iPhone 4 models. Both phones are significantly lower priced than when they have first

come out, the iPhone 4S now stands at $99 for the 16GB, and the iPhone 4 is now free for the

8GB (Apple). Based on Apple‘s quality of their products and exemplary customer service it

is easy to say that they are pricing their products at reasonable prices, because of their well-

known products all over the world, Apple‘s profit margin does not cease to continue to rise

each year. The extent of Apple‘s products is that an average person would be able to

purchase at least one of their products if not more.

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VI. TARGET MARKET

Apple‘s products and software target numerous markets as each offers an assortment

of features specifically catering to the needs of each individual. Apple targets users who are

typically between ages 14 and 55 plus. Apple's computers all target home users, schools, and

media and design professionals. The newest iMac computer that will be released in

November gives home users the option of conveniently having an all-in-one desktop with

faster performance capabilities and a new storage option called fusion drive. This form of

storage helps to manage files in order to expand performance ("Apple - Press Info - All-New

iMac Features Stunning Design, Brilliant Display & Faster Performance"). iMac computers

are aimed towards education institutions. Apple offers iMacs to schools at a discounted price

(Choi).

Graphic designers, television, movie professionals are also a target of Mac computers.

Graphic designers tend to use mac computers for several reasons: Mac OSX is open source

friendly, mac computers typically come with built in tools made with designers in mind, and

Apple builds their computers with all media professional consumers in mind (Nutter). Even

though you can't really customize Mac OSX like you can in windows, Apple picks the right

software making the computers easier to use. Programs built in mac computers are targeted

directly at television and movie professionals called Final Cut Pro. The program is used

mainly for video and audio editing (Arvidson). Apple's iPhoto software is available on mac

computers which lets those who are photo enthusiasts browse, edit and share photos ("Apple -

iPhoto - New full-screen views, emailing photos, and more.").

College, High School students and faculty and staff of K-12 and higher education

institutions are another group targeted by Apple's Education store. College, High School

students and faculty can receive discounts if the Apple devices are purchased through the

institution ("Apple Education Pricing."). College students are also a major target because

universities are now working with wireless carriers in order to make these phones more

accessible and affordable for students. Small to large sized businesses are now providing their

employees with iPhone‘s in order for them to be mobile and stay in contact with the

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company. The iPhone attracts teenagers, high school students and college students by its

sleek design and availability of applications. Their peers all have the advantage of being

owners of the device so having one is a way of "fitting in" with the crowd ("iPhone:Target

Audience."). The phone also has a stylish design and it targets those who want to make it a

fashion statement. Loyal iPhone users are known for staying up to date with the latest

technology so the device also targets those who are tech-savvy.

Through the integration of iTunes in Mac computers, iPod devices, iPad devices,

iPhone, and Apple TV, Apple targets music enthusiasts. The iPod line in general targets

music, video, and photo enthusiasts. Consumers can store their collection of music and

photos into certain iPod devices ("Apple - iPod classic - Features - 160GB. 40,000 songs.

And more"). In addition, depending on the amount of storage available on the specific iPod,

the device can store a certain number of hours of video. The iPod shuffle targets consumers

on a tight budget because of its affordable cost. The iPod Nano specifically targets athletes

because of its Nike plus integration. Athletes are now able to track the distance they have ran

and can use wireless headphones when working out ("The All New iPod Nano Includes

Built-in Nike+ and Bluetooth"). Older generations are now being targeted more by Apple

because the devices are not difficult to use. Students can purchase keyboard docks for their

iPad devices conveniently in order to take notes during class. Instead of having to carry a

heavy laptop around, travelers can view movies on iPad devices during their flights

(Marshall). Consumers who are avid users of iTunes, Netflix, Hulu Plus, and YouTube are

the main target for the Apple TV device. The Apple TV device allows users to seamlessly

connect to these streaming services. Consumers must own a widescreen HDTV to use the

Apple TV device ("Apple TV - Buy the New Apple TV").

Apple incorporates the use of geographic, demographic, psychographic, and product

related-segmentation into its marketing strategies. Geographically, Apple's retail stores are

located in highly populated cities around the world. Specifically, retail stores are located in

large shopping centers and highly populated streets in these major cities ("Apple Store.").

Apple uses demographic segmentation widely when marketing its various products. Apple

devices are most commonly segmented by consumer and business income levels and

resources as most of its products are priced significantly above its competitors. They are also

segmented by age levels. Its age levels vary from teenagers to adults ages 55 and older.

Certain iPod models offered by the company could be segmented by gender as they come in a

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variety of colors. There are both masculine and feminine colors available for consumers to

choose from. Apple's household target seems to be mainly middle to upper class households

who have that extra income to spend on these "luxury" products although about 28 percent of

households earning $30,000 a year or less are the exception (Kingsley-Hughes). In addition

to middle and upper class households, Apple now targets teenagers as parents are now

finding the need to purchase family plans through wireless carriers which allows the teens to

own an iPhone. The touch model of the iPod product line also conveniently allows teenagers

to have almost the full power of the iPhone without having to spend a monthly cost to own it.

Apple doesn‘t specifically say that it targets its products for business professionals or media

professionals but the products are segmented demographically according to occupation.

Apple is a "lifestyle" brand ("Marketing Minds - Apple's Branding Strategy.").

Whether you're a teenager or college student who is fashionable and likes to stay on top of

school, a business professional who wants a device that conveniently satisfies your

organization needs, or just a consumer ages 14 to 55+ trying to fulfill that entertainment and

convenience need, Apple devices will suit a variety of different lifestyles. The company

offers an assortment of software to consumers which target specific audiences and their

various needs. Students can work on papers and presentations for school using Microsoft

office Mac for students and Musicians can create and edit compositions and record

themselves and their band using Apple's Logic Studio software ("Logic Studio - Apple Store

(U.S.)."), just to name a few. Students also have the option of staying on top of school

through apps such as blackboard and the advantage of checking school email with an iPhone

or iPod touch device, professionals can suit their business needs efficiently because the Apple

iPhone integrates features that allow individuals to connect to Microsoft Exchange and read

corporate email, and everyday consumers ages 14 to 55 plus can readily use apple devices

that fit their personal needs on the go ("Apple - iPhone in Business - Integration.").

Product related segmentation is another major marketing strategy used extensively by the

company. Every Apple device is targeted specifically to different groups of consumers and

businesses and features in the products are built around their needs (Sigal). A few examples

include Apple's just released iPod Nano which includes the Nike plus software targeted

directly towards athletes and with its dual-core A5 chip gamers can enjoy faster and more

realistic graphics on the touch model of the iPod line ("Apple - iPod touch - Features.").

Apple is popularly known for its integration of video editing software in its mac computers.

42 | P a g e

This is another area the company excels in. Apple not only integrates its mac computers

with the iMovie software but also offers a variety of editing software targeted mainly at

Media Professionals (Andrei). Besides coming up with products that meet specific

consumer needs, Apple uses a range of methods to create and build their reputable customer

loyalty. Apple's retail stores are dedicated to serving the needs of all new and existing

customers and are considered "friendly" places where consumers can look at and test out

the company's products (CRM Editors). The staff in these retail locations that are well

educated on these products and are there to assist customers with whatever need they have

(CRM Editors). By selling products to new consumers that are on their lower end on price

range, they effectively promote their higher end products because consumers who become

satisfied with their iPod or iPhone, for example, will most likely buy a mac computer in the

future. The company focuses mainly on "building" that customer loyalty by using these and

other strategies (Peiguss). Apple doesn't really offer loyal customers any discounts or

rewards. Sometimes offering loyal customers rewards for being loyal is not really necessary

if you are a company who is known for having top quality products that stand out above the

rest (Peiguss). Customers will generally be loyal if there are only a few competitors out

there offering the same product and your product offers better quality overall. These are just

a few examples of what the company does in order to segment their products.

VII. SALES PROMOTION

An average customer would most likely find out about the firm‘s products through

friends and just the people around them. Due to high demand for their products, there is a

vast majority of people who own and prefer their products over companies‘ products,

therefore this is one of the ways Apple is able to advertise their products which is through

consumers. As seen in some of Apple‘s advertisements in the back of our packet; since the

iPod had come out there have not been a vast amount of advertising done in the media to

promote their products. In all of the examples that we provided for each of the individual

Apple products, their advertising method always displays simplicity and uniqueness

When it comes to Apple‘s Promotions, they offer many different promotions that

allow many people to purchase their products. The largest promotion is that each year before

the school year starts Apple offers a ―Back to school‖ promotion in which a student or a

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teacher decides to purchase an iMac or MacBook (desktop or laptop), they would get a $100

for applications along with their purchase. They also offer students and teachers the option of

buying an iPad and get $50 for applications. Apple also has an ―Apple Educational

Discount‖ where throughout the year students and teachers are also able to save up to $200

on a new Mac. A few years ago Apple had the same promotion but offered students only to

give a free iPod Touch when a MacBook laptop was purchased. But that offer no longer

stands.

Some of the other promotions that Apple also offers year round is for their iPad mini,

if it is bought online then customers will be able to get free shipping and receive a free

engraving as well. When it comes to ordering online from Apple they offer free shipping on

$50 or more, which is almost every single product from Apple product, unless someone were

to buy a iPhone case or something small like so. Many ―high end‖ companies often offer the

option of having the product shipped to one‘s house, or buying it online and picking it up in

the store, Apple offers this to their customers.

Apple despite having such a vast amount of products at different price ranges from as

little as $20 iPhone cases, to the iMac for $1,299, Apple is still able to lower existing

products and continue to offer reasonable prices to their customers based on each version and

the capacity of the product. When it comes to advertising, Apple used to do a lot of

advertising for their iPod‘s when they were first introduced. Recently, Apple has almost been

doing no advertising on their products. But even though almost no advertising is done

anymore, the Apple store is almost always consistently packed on a daily basis. Most of all

their advertising is done through their customers and their well -known products; Apple‘s

image is also branded based on their sleek, most trendy items in the technology world.

When Apple announced that they would finally be coming out with the long

anticipated iPhone 5, just by hosting just one conference to introduce the iPhone 5, thousands

of people lined up to purchase the iPhone , on the opening day to purchase their new iPhone

5, many people even pre-ordered their phones. Because Apple products are sold worldwide

44 | P a g e

and Apple is such a well-known brand, it is easy to publicize their products though their store

fronts and their customers only.

VIII. ADVERTISEMENT

Now a day, marketing plays an important role for the entire

organisation. Marketing is very much necessary for all the products as

without marketing the consumer will have lack of information about the

products. Thus, to make the consumers aware of the product, marketing is

done.

Apple Inc. advertise their products on very large scale. They advertise

their products on television and also do wall paintings all over India. They

also distribute pamphlets for the same .

IX. DISTRIBUTION

Apple spends certain resources to expand its stores so that it can get its prospects

undivided attention. Apple‘s 372 stores collectively generated $4.1 billion in revenue. That‘s

a vast sum, and one that might lead you to believe that Apple sells most of its gear through its

own stores. But that‘s not the case, according to a new study by Consumer Intelligence

Research Partners (CIRP).

Between December of 2011 and August of 2012, CIRP surveyed 1,227 U.S.

consumers who purchased an iPhone, iPad, or Mac, and found that while Apple Stores sold

by far the most Macs and iPads during the period, they didn‘t sell nearly as many iPhones as

the company‘s retail partners.

In the U.S., Apple‘s retail stores, along with the company‘s online storefront, sold 47

percent of the Macs and 40 percent of the iPads purchased by the survey sample during

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December 2011 and August 2012. But they only sold 21 percent of the iPhones. AT&T and

Verizon stores both sold more than Apple, with 28 percent and 26 percent shares of sales,

respectively. And Best Buy and Amazon (via fulfillments) together sold nearly as many iPads

as Apple itself.

Apple has around 250 stores in the U.S., while Best Buy and Best Buy Mobile total

1,300, and AT&T, Sprint, and Verizon have over 5,000 combined,‖ CIRP partner Mike Levin

told ―AllThingsD. Clearly, the Apple stores are much more productive on a per-unit basis,

but their relatively low store count keeps them reliant on the carriers and Best Buy, not to

mention Walmart, Target and others, for the vast majority of their retail sales

Ultimately, Apple‘s retail partners are as critical to the company‘s success as its own

stores. Sure, the typical Apple Store might cater to 17,000 visitors per week, but that foot

traffic translates to a smaller-than-expected share of the company‘s overall business. As

CIRP co-founder Josh Lowitz told AllThingsD, ―Everyone who lives in an Apple Store city

thinks that is where everything happens, but you can‘t sell 40 million plus iPhones in a year

through just 250 stores.‖

There are about 806 Retailer Store in all over World.

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X. COMPETITORS

It is rightly said that , ―Without competitors market does not survive.‖

Apple inc. is also starving in to sale its products in the competitive

market by continuous development of a product finding new areas of

consumption.

Their competitors are,

Nokia

Samsung

Blackberry

Karbon

Lava

Vertu

Micro-Max

Rocker

Panasonic,

Spice

Motorola Etc.

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XI. CONSUMER PROBLEM HANDLING

―Customer is the king‖ of the market, is a very attractive slogan.

Consumers generally never face any problem for Apple Inc. but in spite of

this, if any problem arises than following hierarchies of problem handling is

followed :

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ANALYSIS

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1. Market Analysis

This pie chart shows market analysis of last five years of Apple Inc. from year 2009

-2013. In 2009 , 2010, 2011,2012 and 2013 marketing of the company is respectively

47%, 52%, 61%, 76% and 83%. In 2013 Apple Inc. had achieved maximum

marketing.

47 %

52 %

61 %76 %

83 %

Market Analysis (2009-2013)

2009

2010

2011

2012

2013

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2. SWOT ANALYSIS

SWOT Analysis means the analysis of

S Strength

W Weakness

O Opportunity

T Threat

Strengths

Early innovator of computer and non-

computer technology products such as

iPod, iPhone, mac computers, and apple

TV ("MBA Lectures » Blog Archive »

SWOT Analysis of Apple.")

Apple is an internationally successful

company ("MBA Lectures » Blog

Archive » SWOT Analysis of Apple.")

High level of Brand loyalty among

customers (Goodson)

The iTunes store is a big part of Apple's

revenue. People buy music and

applications conveniently for their

Apple devices (Hornshaw)

Apple products are reliable, and it is a

well-known company globally.

Weaknesses

Price. Apple products in general are

normally higher priced than their

competitors and consumers that are price

sensitive tend to opt for lower priced or

cheaper alternatives. (Harrer)

Some of Apple's products experience

technical problems and consumers

complain that there's a lack of customer

care and having to purchase the

AppleCare package in order to resolve

any problems. (Crook)

iTunes purchased content such as

eBooks, movies, TV episodes and some

music work only on apple devices and

computers. This Digital Rights

Management protection prevents users

from moving iTunes content to other

devices that are not apple

devices.(Aimonetti)

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Apple is financially solid, no debt, and

$13 billion net income in Dec 2011

quarter.

Users would have to get used to the

formatting of their Apple products, and

has a weak integration between windows

software and their apple software.

Opportunities

Apple could think about possibly

expanding its iTunes store into China

which counts for a major part of its

revenue. (AP)

Apple's collaboration with Bodhi to

create an exclusive handbag for Apple

targeted for apple enthusiasts with a

fashion sense. This will generate extra

revenue/income for the company.

(PRNewswire-iReach)

Apple can think about committing to be a

company that uses 100% renewable

energy.(Joshua)

Increase their advertising through new

possible avenues, ex: the fashion

industry, film industry.

Threats

Competitors such as Dell, HP, and

Lenovo offering cheaper personal

computer alternatives for students on a

tight budget (Smith, ―The 5 Cheapest

High-Quality‖)

Samsung will be releasing its Samsung

galaxy note 2 which is a direct

competitor to the iPhone 5. ("Samsung

Galaxy Note II vs. Apple iPhone 5)

Critics say that Android Jellybean is

better than iOS 6 overall. Which will

have consumers opting for android jelly

bean phones. (Smith, ―Android Jellybean

vs. iOS 6‖)

Windows 7, and Google operating

systems.

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FUTURE PLAN

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FUTURE PLAN

Future Plan of Apple Inc. is to become leading companies in all over the world.

Apple planned to invest 2 billion in 2013 to guarantee component supplies. Consequently,

Samsung's biggest rival, Taiwan Semiconductor Manufacturing Company, announced a 9

billion increase in capital for 2013. These announcements from two of Samsung's greatest

rival are seen to put a toll on Samsung's investment plan this year.

According to Mr Dilger, "Given that Apple's been running the Smartphone race really well

despite harboring that Galaxy S knife over the past three years, it will be interesting to see

how well Samsung does in the 2013 lap as the course heads uphill into even more difficult

terrain, now that it has its knife back and is no longer inextricably bound to the world's fastest

consumer electronics sprinter."

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SUGGESTIONS

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SUGGESTIVE STRATEGIES

Some of the Suggestions stratergies to the marketing problems of Apple Inc.

can be under.

(1) FREQUENT ADVERTISEMENTS

One of the best solutions to it marketing problems in frequent advertisement of

product of Apple Inc. in different TV programmers. It should specially select prime

time to seek attention of major target audiences. There should be High only through

television but also other media like cell phone, radio, print media, outdoor media

etc.due to high frequency of adopt the effects of carry over will also reduce to great

extent.

(2) BUILD STRONG BRAND IMAGE

Previously the brand image of Apple Inc. was very strong due to Lower

frequency of advertisements the consumers brand recall ration reduced & as a result

the brand image also become some what weaker. So, frequent advertising & thus

remarking of its products will help Apple Inc. to build up a stronger brand image.

(3) Affordable Price

(4) Long Battery Self Life

Thus, there are some of my suggestive strategies to the marketing problems fuad by Apple

Inc.

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CONCLUSION

Apple now has the highest market value of any private company in the world

because of reasons listed below :-

For any product that Apple creates, the people who create it have to want it

themselves

The products have to be easy to use

Keep things simple

Offer great customer service and in-store experiences

Apple only makes a product if Apple can do it better

Apple puts new employees on fake projects to see if they can be trusted.

Apple has the patent for ‗slide-to-unlock‘.

So, I wish the Company makes more and more profit, fulfill to future plans and

get good global market.

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