Apple Inc History

Overview

Apple Inc. was founded in 1976 by Steven Wozniak and Steve Jobs. The company offers Personal Computer Hardware, Software and other non-computer product. Apple managed its business largely on a geographic basis, its primary geographic segments are North America and South America, Europe, Africa, the Middle East, and Japan.

• In 1979-1983 the top executives had major difficulties working with each other which resulted to Steve Jobs resignation in the company

• In 1996 Apple Inc. decided to acquire NeXT, the company Steve Jobs had founded upon his resignation and in addition they will also get the service of Steve Jobs again

• In 1997 Apple begin selling its product directly to consumers over the web and by phone

• Since 2002, Apple had determined that the digital electronics market was converging with the computer market and that consumers would begin to demand more synchronization and harmony between the two

• In 2007 the first version of iPhone was released

• Net Sales from 2003-2007 has an increase trending (See Exhibit 1 and Exhibit 2)

Porter's 5 Forces Analysis for Apple Inc. Products

• Current Rivalry (Very Intense). Apple faces stiff competition on their counterpart companies

• Potential New Entrants (Low): In this type of industry possible new entrants would be reluctant because it needs big amount of investment to form a new one; however, some well-funded competitors made significant investments to enter the digital media distribution channel

• Bargaining Power of Suppliers (Low): There are few suppliers when comes to Operating Systems and microprocessors but in terms of memory chips , keyboards and disk drives suppliers can adjust their pricing and quality to make their product attractive to costumers.

• Bargaining Power of Consumers (High): Switching cost are low. This situation puts the buyer power in a strong position that can only be countered by Apple with strong product differentiation

• Threat of Substitute Products (Very High). Since Apple is offering premium pricing on their products, there is a strong threat on substitute products.

(See Exhibit 3 for Porter's 5 forces Analysis)

Company Mission

The Company mission is to bring to its customers around the world compelling new products and solutions with superior ease-of-use, seamless integration, and innovative industrial design.

Most of the actions Apple had taken over its history were consistent with its underlying philosophy on innovation.