From this book, Fred R. David - Strategic Management- A Competitive Advantage Approach, Concepts and Cases-Pearson (2016) (1)

From APPLE CASE STUDY (Chapter SMC, Problem 21C) in your provided book , answer following question,

1) Give me Swot analysis with optimization

2) Weight score calculation under 2.0 (IE Matrix)

I hope this would be helpful for you....

And this book you have provided on cheggg but there is no solution for this so asked the question....

Please answer it....Thanks!!!!!

Layout References Malings w 13 ANAR * * A.V.A. Font Review E View R ALT . Aa Aal . 1 Normal Body Text Heading Heating 2 Heading 1 Heading t o Styles P aragraph www.apple.com, AAPL Apple is the world's large corporation based on a market capitatie of about 1650 approximately $200 bon more than Ese the wed's second large company Apple de manchesand makes the world's most popular wartphen, einen though Apple has only about 15 percent of the bal market share inaphones Apple sho produces the ad iPod, Cloud. Mae computers and other access i Cupertino, California, Apple devices Headquartered , the popular app and we were customers can dewende New for Apple with the base of the theme and 6 Apple Pay, where can pay attadores by s ing the phone Apple currently operate 50 persand employs 98.000. Apple's 6 and 6+offere d to be compete with Sam Initial sales of the hone 6 and 6 booke d , with the higher mar dog best of all Apple's new gold martwatch released in spring 2015 ses for 54.000 55.000 The model is perced at $349, and the stesse model 300 On July 21, 2015, Aple an d financials for its focal 2015 third quarter that ended a 27.2015. Specifically, the company reported quarter of $19.6 on and quarterly net profit of $107 billion, compared to revet of 374 hen en profit 377 bom the prior yearpo qua ntomational sales accused for 6 percent of the In that third quarter Apple's year-over-year that eated them the offiscal 2015, with rep 33 percent and perhap s the the fucked by record the quarter sales of them and Mas, merecede 19 in and the sec u nch of Apple Watch The company 2015 and the y percent overlast year Apple Music was released iOS 9. OS X El Capitan and watchOS 2 to customers inal 2015 www. i g .com Cowght by Fred David Booksu by History F 10 Sehende Wamal Arena 9 W DOLL History Founded in 1976 by Steve Jobs and Steve Wozniak, Apple began as a personal computer com pany providing desktop computers for businesses and the home. The first computer, the Apple 1. was hand built by Wozniak and did not come with a keyboard or an outer case to protect the computer. The products were considered a kit, and users had to supply extra parts themselves The Apple 1 sold for the interesting price of $66666, or around $2.800 adjusted for info Apple was incorporated in 1977 after Wozniak sold his share for 5300. The Apple II w fest sold in 1977 and had the first major piece of business software, VisiCalc aspreadsheet product Apple went public in 1980 for $22 a share and generated more money on its IPO than firm since Ford Motor Company 25 years earlier Following a dispute with the Board Steve Jobs red from Apple in 1985 and started a new fim. With Jobs una filiated with Apple for the bext 15 years, Apple experimented with various other products, including CD players tal cameras, speakers, and others. Throughout the 1990s. Apple experimented with veral differ cut product lines of personal computers, with limited succes. Apple's products we really suficantly more expensive than that of competitors, not compatible with much of the leading software or with the more popular Windows machines, and also were not able to ask well as Windows-based machines By 1996, Apple was sting immensely and the fum acquired Steve Jobs' tim, XT After the Board feed the existing CEO in 1997. Jobs was back, acting as interim CEO of Apple In the same year, Jobs identified Jonathan us, and the two started working to read Apple products and brand name cuently the Senior Por Desian Astro Mac and software products such as iMovie in 2001, Apple introduced the iPod and the field 100 milionis in d as The year 2003 both about the store, which need 50.99 download te iPods and remains an indstry leader Apple launched the iPhone 2008 and the Padin 2010, 2011. Steve Jobs passed away and CEO Tim Cook Apple e 9 W SOMER Paragraph Styles Intemal Issues Vision/Mission Neither at its corporate website nor in its Form IOK does Apple provide a written visioner sion statement labeled as such. There are statements such as the following however, that perhaps serve as Apple's vision and/or mission: 1. "We strive to provide users of Apple products the best experience possible thoughness- tive product designs and software." 2. "Apple designs Macs, the best personal computers in the world, along with OS X Life 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 mobde media and computing devices with Pad Organizational Structure As indicated in Exhibit 1. Apple appears to operate from a divisional-by-process design, but absent of any presidents of divisions. However, Apple does report revenue by both region and product. Some analysts suggest that titles of Apple's executives more closely mirror how the fum reports sales, and many expect to see a COO with divisional presidents reporting to that position Strategy Apple was late in producing a larger screen smartphone, but did so with the launch of the iPhone 6 and 6 in October 2014. Apple prides itself on simplicity Apple products are ally more user friendly than those of Windows, Android and other operating systems, but at the sacrifice of the user being able to customize or tailor the device for the specifieds Apple's end- ing strategy anys has been to produce elegant, cu toate production at a premium pince point Ina November 2014 interview, CEO Cook reiterated this when asked ifh t 15 percent of the dobal smartphone market share a concem, by responding Norma ha is equal and Apple has never been about the most we are about be the best 13 Words 4,3503 DELL Review View E 21 Insert Page Layout References Mailings Times New Rom 10 AR AN at Painter BIUabe , * A.W.A. Font AaBbCcDc AaBbcc Aa Aal Aabbi Aabb T Normal Body Text Heading 1 Heading 2 Heading ) Heading Paragraph Styles Apple also has a culture of not collecting every detail about its users. For example, Apple does not read or store Messages or Face Time. Even if a government were to ask for these data, Apple could not provide it, for the company simply does not keep it on file. The latest version of iOS 8 is more encrypted than ever. CEO Cook compares Apple to designing to an electronic Fort Knox With the release of the new iPhone 6 line, Apple introduced Apple Pay, a mobile app that enables Apple customers to use their existing Master Card, Visa, or American Express card to make mobile payments at retail stores. Apple Pay's fingerprint technology is more convenient for consumers and also more secure for credit card companies such as Visa, American Express, and MasterCard. However, competitors such as Samsung currently have a similar technology on some of their phones, and all phones will likely have a similar technology moving forward. Using Apple Pay, merchants are charged the same fee as nomally charged by a credit card company, which is an average of 2 percent in the United States. Transactions in the United States annually produce more credit card fees than everywhere else in the world combined, leaving open the door for Apple to possibly transition away from credit card companies in the future. Apple could offerits own in- house credit system at much lower cost to merchants, in essence becoming a financial institution Keeping in line with its user-friendly products strategy. Apple must approve all third-party digital content through the iTunes Store or the App Store and Books store. Competitors, such as Android-based phones, tend to have less control over apps offered to the customers than does Apple Apple prides itself on well-trained and knowledgeable salespersons with excellent customer service. Apple invests heavily in R&D, over $6 billion in 2014 alone, up nearly 100 percent from 2012. In addition, Apple is expanding its retail stores around the world During 2014, Apple acquired several fimms, including Beats Music and Beats headphones Apple obtained a subscription streaming music service and a headphone fim in the process Apple's acquistions in 2014, however, increased the firm's goodwill from $15 to $4.6 bilion To keep costs low, almost all Apple hardware products are manufactured in Asia and many of these are manufactured at a sinide location, except for a few Macs that are manufactured in of 13 Word: 4 350 W DAL Case 21 apple , 2015 543 Exhibit 2 Apple Revenues by Region (in millions of USD) revenues 2014 2013 2012 Americas Europe China Japan Rest of Asia Pacific Retail Net Sales $65,232 40,929 29,846 14,982 10,344 21,462 182,795 $62,739 37,883 25,417 13,462 11,181 20,228 170,910 $57,512 36,323 22,533 10,571 10,741 18,828 156,508 Source: Based on Apple's 2014 Annual Report, p. 27. the United States. While able to better maintain quality control, this does put Apple at risk over strikes, poor management, or other disruptive activities at a single location facility. To counter this problem, Apple tends to stock enough supply to cover its demand for up to 150 days, but du mg a new issue of an iPhone, for example, there can be supply shortages, where customers must wait weeks or even months to receive their products. Apple has sued Samsung twice in the last couple of years for patent infringements in the hypercompetitive smartphone industry. Apple was awarded 5120 million of a $2.2 billion claim for Samsung violating three patenting infringements. However, Apple was unable to prove that Samsung's action caused significant damage to its product line. To date, Samsung has been or dered to pay Apple over $1 bilhon in damages, and both cases have been appealed and Apple has vet to receive any compensation. More important for Apple than the $1 billion was the desire for the legal actions to impair Samsung from being able to sell certain products. To date, this outcome does not appear likely for Apple. Words: 4,350 10 9 W AILI TO 10 ANA BIU. x, X A Font E. mmat Painter and F **21 . AE AaBbCD Aa Aal Aal Body Test Heading Heading 2 Headings Heading Head Normal Paragraph . . . . Styles egment Data Exhibit 2 reveals that Apple's sales increased 7 percent in 2014, following a 9 percent increase the prior year. Fiscal 2014 sales were boosted by strong iPhone 5s and Sc sales, and also ac- count for initial sales of the iPhone 6 and iPhone 6 released in October 2014 in the United States, one month before Apple's fiscal year ended. However, some preorder sales of iPhone 6 and 6+ are included in Apple's 2014 fiscal year. With the iPhone 6 and 6+ also comes Apple Pay, which allows customers to pay by scanning their phones at selected retail stores. As of late 2014,83 percent of all credit card transactions in the United States were compatible with Apple Pay, with banks not offering compatible products quickly but rather coming to agement with Apple. The company reported sales increases in all regions in fiscal 2014, except in the Rest of Asia Pacific region, which experienced a small decline. The largest percent growth came from China and Japan Apple's iPhone accounted for 55 percent of total 2014 revenues, up 11 percent from fiscal 2011, as indicated in Exhibit 3. Apple's iPad sales have been steady but have not increased since 2012. Apple's new iPad Air 2 hopes to reverse this trend. However, with the larger iPhone dis- plays with the 6 and 6-products, many customers may opt only for having one device. In a bit of a surprise for analysts, Apple's Mae sales were up 12 percent in fiscal 2014, from stronger than expected back to school sales on Macs. The back to school sales were strong enough to boost Macrevemesto 56.6 billion in Q1 of fiscal 2014 more than iPad's revenue of bubon Mac now owns over 6 percent of the dobalPC market, its largest market share since 1995. Machas gained market share on windows machines in 33 of the last quarters iTunes, Software, and Services are continues to gow, 12 percent from the 2013. This sejament includes the Apple Store, iCloud. iLife Werk AppleCare and apps that many users pay to download and use on the Phones and iPads. Apple iPod, once the bellwether for the firm before the release of the iPhone has been in constant decline with sales down pacent from 2012 to 2014. In summer 2014. Apple discontinued making s uciPod 160 device on claims they could no longer be the parts Apple's accesso r iewcludes headphones, w ithones and Apple TV. case and Apple Watch Apple Watch will be compatible newer products running iOS 80 or meer 4 of 13 Word: 4,350 e 9 W X Page Layout References Marlings Times New Rom. 10 ANA BI X , X A Apple case docx Microsoft Word (Product Activation failed Review View E RE! AaBbc A. Aa Aal . EE E E Normal Body Test Heading 1 Heading 2 Headings Headings A Paragraph Exhibit Alle wees by Producti ons of $100,000 Finance 9 W Apple case docx - Microsoft Word (Product Activation Failed) Page Layout References Mailings Review View nes New Rom 10 A Anny E 211 Aal BIUhe X, X AW.A. EE . I Normal Body Text Heading 1 Heading 2 Heading Heading 4 Headings Font Paragraph Change Stin . Styles 4 1 . Apple's current income statement and balance sheet are provided in Exhibits 4 and 5 re- spectively Much of the cash on Apple's balance sheet is kept in foreign banks. In this way, Apple avoids paying US corporate taxes on those camings Exhibit Income Statement in millions of USD) pot Date tember 27, 2014 ember 28 2013 5170910 R 5152,795 112355 Cost of Gross pro Opera et des 50 135 13 Source Based on c o me Competitors the Apple competes in the compete and pay change out References Mailings 10 ANA be X, X A E .A. Font Apple case docx - Microsoft Word (Product Activation Failed) Review View E ** 2! AaBBCCDC ABC Aa Aa AaBb AaBbc AaBbcA T Normal Body Test Heading 1 Heading 2 Heading Heading t Paragraph products in line with Apple prices. Competition for Apple should only increase in the future as rival firms are better able to duplicate Apple's products or even better able to persuade cus tomers their products are just as good but significantly cheaper in price. Top competitions for Apple are Samsung and Lenovo in the smartphone, tablet, and PC markets. However, Apple faces significant competition from various other PC providers such as Del Sony, and Toshiba A cut E Times New Ron ANA BIU , X AVA E 2! I a com * 5. AaBbce Alo Aa Aal AaB i Aalbo AnBbc 1 omal Body Test Heading! Heading 2 Heading Heading s A Paste Format Painter Cupboard Exhibit 5 Bate Sheet in milions of USO) $13,344 11233 Obat can 2313 Property, plate Goodwill Othe 231.8.99 A puble Tool Deco Derende 130290 Total 13. 20.00 e 9 w ES DELL Paid in capital and other Totality Totallia & equity 111.347 (471) 11509 201419 307.000 Source Based on company documents Exhibit 6 2014 Percent Market Share of Key Global Players apple android Source Based on company documents and a variety of other to Exchab 6 provides a comparative analysis of Apple with some of its malfum in terms of market share. Note that Apple products trail Android products substantially in market share Apple projects to take a 35 percent market sharin watches in 2015 un d share to 42 percent. I 2014, the total watch market was than tomon but is expected to expand to 35 million unit by year end 2015 Exhibit provide additional comparte competitive info mation for Apple and valim Samsung e 9 w YU Insert Page Layout References Malings Review Times New Rom. 10 ANA BEE Brube *, * A .A. Apple case doci Microsoft Word Product Activation failed View 11 AalbCcDE Aallt.cc Aa Aal AaBb AaBb AaBbc 2 . Body Text Heading Heating Heading Heading Heads Paragraph A Exhibit 7 Apple versus Rival Pirms -Employees 92.000 3953 273 M 715796 No 07B Source: sed on company documents and a variety of other source 2010 was prodong half of t h e phones in China Saman has the center in Chan Sam was years behandlet meer Apple in the smartphone make this launch in 2009 the Bada operating s a 2010. Sam provided an Android powered wartphone in 2013. Sam m a 21 percent of the balut phen make mone Sam the industry leader in an tow n . Samen se today produces tablett DVD player, a t an wing machine, PC nebo p o dce and more In addition Sag g ed in providing we medicale pentruch as a sound and the to popular product a ng compete with Apple dancthen the Sun Olaxy and Note the Galaxy Tab TV chandap penyam 2013 c Lenovo DELL Microsoft Word (Product Activation failed Mailings Apole case door View Review UP- Insert Page Layout References Arial Narrow - 10 A Format Painter parter BI V X , X A board AN EE .A. 1 15 AaBbcc ABCD Aa Aa AaBb AaBbc AaBbc. A Normal Body Test Heading Meading 2 Heading Mainte Paragraph s Jenovo Founded in 1994 in Being and headquartered in both B a nd New York City, Lenovo ac- ured TOM ThinkPad laptops and more recently TBM's lower and Loredad mot enter the smartphone market i 2010, but its Lethone is popular in China and increasing market share in the entry level market space Lenovo is abrapidly introducing the Lethenin Russia, India Indonesia and other neighboring Asian nations that he have developing econo mes Lenove compete with Apple pray on PC, ince the firm has positioned in a lower demographic market for its smartphones Lenovo's 2014 an expected to be an excess of 37 billion the same as in 2013 With Lenovo's $29 billion acquisition of Motorola 2014, the fois now the world third largest smartphone man behind Sam and Apple Le a des on the Hong Kong Stock Exchange and current employs 34.000 people weddie Extemal Issues In 2014, there we r e smartphone sta tion in the hated States The powth rate was appemately 35 percent from 2009 to 2014 with east of costouby 2019 Most of the smatphomanin Chandthe h ema deal per fem 2010 to 2014. Less th e produced 2003, n g o 500 in 2011 The top four phone China e Sam p le and ITC, forever half of the total de DOLL * Cut Paste la Copy For 10 ANA BEE *211 BI Usb *, * A A.V.A. .A. =anta . ABECEDABCD Aa Aa AaBb AaBbc A Normal door tot no Body Text Heading 1 Heading? Heading Heading te Painter 1 Norma Clipboard Paragraph Styles Computer Manufacturing and Tablets Computer manufacturing is a $14 billion industry in the United States alone but sales follower 17 percent per year between 2009 and 2014. About 62 percent of all computers manufactured in the United States are laptops, but this still leaves 38 percent of the computers manufactured being desktop. Overall projections are 5 percent declmes moving forward through 2020. Tablets are projected to further make inroads into personal computers in US manufacturing However, it is important to note that at least for Apple's of 2014, Macles exceeded iPadsales Most tablets are manufacturedin China, with Apple holding 27 percent of the market share followed by Samsung and Lenovo with 12 and percent, respectively, on tablets made in China The largest players in the US computer manufacturing business, such also includes ver, HP Dell, and IBM, with 25, 19, and is percent market share.respectively. Two relative areas that may help boost laptop sales are the new ultrabooka, extrathin laptops the battery antice and laptops with touch dass where the user can touch the screen much like on smartphone or tablet Worldwide PC sales are expected to be $190 biton in 2015, tapering down to $160 billion by 2018 In 2014, PC pents alone accounted for 56 percent of the device (PC and Tablets) shipments, but this member is expected to be reduced to 45 percent by 2018 antalets make further woads on PC Tablets are expected to powpercent a year through 2018 Cumart, Android based phones account for just over 60 pesoftphone operating system with iOS picking up much of the balance Touch 2015, the look w projected to remain the same Operating Systems Operating systems are another large market in the United States with 2013 of 4 hon expected to grow to 557 om by 2019 Majors by market share wickede Microsoft and Apple with and 20 percent of the totalmet Micrott's pom poduct contato be Windows, while Apple is the one anos Geographic Outlook Most smartphone s de cloped co ford However, with the centre of t r espected to powth tales subside me he trained to update the post Layout References Microsoft Word Product Activation failed Arial Now - 10-AN A 3 E Format Painter 21 2! ABOCCO ABCD Aa Aa AaBb AaBbc AaBbc A. B est Heigt dig Apple 6 0 pecofthe Windows, while Apple is the m Mic r os oduct contebe Geographie Outlook Mos ma mai deped e ford However, with the metho d update the post least every 2 years, the lengte formato de Theme pen o nth the moving forward shed to developinma ch in and China Tallinta thehes ted to b e 2014163bben in 2011. p ats the Pacing pec Sales et man tenha pecto Du n e 2013 Apple Mallora family 1490 per month Deb a th If Aple Murfar of the met Ferem 10 p le Spotify m amadepandan fend pu n ch 51. Info 2011 lantanalar and W D F G H I J Apple case.docx - Microsoft Word (Product Activation failed) View U20-A File Home Insert Page Layout References Mailings Review a cut Arial Narrow - 10 ANA 3 E Paste Format. Painter BIUXX A.A. Clipboard Font 2 1 20 AMBDCED ABCD Aa Aal AaBb AaBbc Aalbo Norm Body Test Heading Heading? Heading Heading s Dua copy 548 Strategie Mae Ment cases Apple began shipping its Apple watch in April 2015. Then and Mae were 551 and 57 bdon espectively, for the first quarter 2015, p 37 and 9 percent from first quarter 2014. However, iPad sales were do 22 percent over the same time frame do te people of updating the tablets as frequently, les demand than foxphones and the newithene cabled iPad sales Develop a vear strategic plan for CEO Tim Cook that will enable Apple to contro compete with rivale Samsung and Love Use the template at the www .com site toppematics and anale Inpres Mi Cook sith your work be c ando Financial CEO Cook was the bus "Person of the Year for 2014 2015 at Apple har holder me when someone questioned the probably of Apple My Cookponded We do things for other than prom o te cause they had just that's hardline for you then you should Layout References Malings w 13 ANAR * * A.V.A. Font Review E View R ALT . Aa Aal . 1 Normal Body Text Heading Heating 2 Heading 1 Heading t o Styles P aragraph www.apple.com, AAPL Apple is the world's large corporation based on a market capitatie of about 1650 approximately $200 bon more than Ese the wed's second large company Apple de manchesand makes the world's most popular wartphen, einen though Apple has only about 15 percent of the bal market share inaphones Apple sho produces the ad iPod, Cloud. Mae computers and other access i Cupertino, California, Apple devices Headquartered , the popular app and we were customers can dewende New for Apple with the base of the theme and 6 Apple Pay, where can pay attadores by s ing the phone Apple currently operate 50 persand employs 98.000. Apple's 6 and 6+offere d to be compete with Sam Initial sales of the hone 6 and 6 booke d , with the higher mar dog best of all Apple's new gold martwatch released in spring 2015 ses for 54.000 55.000 The model is perced at $349, and the stesse model 300 On July 21, 2015, Aple an d financials for its focal 2015 third quarter that ended a 27.2015. Specifically, the company reported quarter of $19.6 on and quarterly net profit of $107 billion, compared to revet of 374 hen en profit 377 bom the prior yearpo qua ntomational sales accused for 6 percent of the In that third quarter Apple's year-over-year that eated them the offiscal 2015, with rep 33 percent and perhap s the the fucked by record the quarter sales of them and Mas, merecede 19 in and the sec u nch of Apple Watch The company 2015 and the y percent overlast year Apple Music was released iOS 9. OS X El Capitan and watchOS 2 to customers inal 2015 www. i g .com Cowght by Fred David Booksu by History F 10 Sehende Wamal Arena 9 W DOLL History Founded in 1976 by Steve Jobs and Steve Wozniak, Apple began as a personal computer com pany providing desktop computers for businesses and the home. The first computer, the Apple 1. was hand built by Wozniak and did not come with a keyboard or an outer case to protect the computer. The products were considered a kit, and users had to supply extra parts themselves The Apple 1 sold for the interesting price of $66666, or around $2.800 adjusted for info Apple was incorporated in 1977 after Wozniak sold his share for 5300. The Apple II w fest sold in 1977 and had the first major piece of business software, VisiCalc aspreadsheet product Apple went public in 1980 for $22 a share and generated more money on its IPO than firm since Ford Motor Company 25 years earlier Following a dispute with the Board Steve Jobs red from Apple in 1985 and started a new fim. With Jobs una filiated with Apple for the bext 15 years, Apple experimented with various other products, including CD players tal cameras, speakers, and others. Throughout the 1990s. Apple experimented with veral differ cut product lines of personal computers, with limited succes. Apple's products we really suficantly more expensive than that of competitors, not compatible with much of the leading software or with the more popular Windows machines, and also were not able to ask well as Windows-based machines By 1996, Apple was sting immensely and the fum acquired Steve Jobs' tim, XT After the Board feed the existing CEO in 1997. Jobs was back, acting as interim CEO of Apple In the same year, Jobs identified Jonathan us, and the two started working to read Apple products and brand name cuently the Senior Por Desian Astro Mac and software products such as iMovie in 2001, Apple introduced the iPod and the field 100 milionis in d as The year 2003 both about the store, which need 50.99 download te iPods and remains an indstry leader Apple launched the iPhone 2008 and the Padin 2010, 2011. Steve Jobs passed away and CEO Tim Cook Apple e 9 W SOMER Paragraph Styles Intemal Issues Vision/Mission Neither at its corporate website nor in its Form IOK does Apple provide a written visioner sion statement labeled as such. There are statements such as the following however, that perhaps serve as Apple's vision and/or mission: 1. "We strive to provide users of Apple products the best experience possible thoughness- tive product designs and software." 2. "Apple designs Macs, the best personal computers in the world, along with OS X Life 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 mobde media and computing devices with Pad Organizational Structure As indicated in Exhibit 1. Apple appears to operate from a divisional-by-process design, but absent of any presidents of divisions. However, Apple does report revenue by both region and product. Some analysts suggest that titles of Apple's executives more closely mirror how the fum reports sales, and many expect to see a COO with divisional presidents reporting to that position Strategy Apple was late in producing a larger screen smartphone, but did so with the launch of the iPhone 6 and 6 in October 2014. Apple prides itself on simplicity Apple products are ally more user friendly than those of Windows, Android and other operating systems, but at the sacrifice of the user being able to customize or tailor the device for the specifieds Apple's end- ing strategy anys has been to produce elegant, cu toate production at a premium pince point Ina November 2014 interview, CEO Cook reiterated this when asked ifh t 15 percent of the dobal smartphone market share a concem, by responding Norma ha is equal and Apple has never been about the most we are about be the best 13 Words 4,3503 DELL Review View E 21 Insert Page Layout References Mailings Times New Rom 10 AR AN at Painter BIUabe , * A.W.A. Font AaBbCcDc AaBbcc Aa Aal Aabbi Aabb T Normal Body Text Heading 1 Heading 2 Heading ) Heading Paragraph Styles Apple also has a culture of not collecting every detail about its users. For example, Apple does not read or store Messages or Face Time. Even if a government were to ask for these data, Apple could not provide it, for the company simply does not keep it on file. The latest version of iOS 8 is more encrypted than ever. CEO Cook compares Apple to designing to an electronic Fort Knox With the release of the new iPhone 6 line, Apple introduced Apple Pay, a mobile app that enables Apple customers to use their existing Master Card, Visa, or American Express card to make mobile payments at retail stores. Apple Pay's fingerprint technology is more convenient for consumers and also more secure for credit card companies such as Visa, American Express, and MasterCard. However, competitors such as Samsung currently have a similar technology on some of their phones, and all phones will likely have a similar technology moving forward. Using Apple Pay, merchants are charged the same fee as nomally charged by a credit card company, which is an average of 2 percent in the United States. Transactions in the United States annually produce more credit card fees than everywhere else in the world combined, leaving open the door for Apple to possibly transition away from credit card companies in the future. Apple could offerits own in- house credit system at much lower cost to merchants, in essence becoming a financial institution Keeping in line with its user-friendly products strategy. Apple must approve all third-party digital content through the iTunes Store or the App Store and Books store. Competitors, such as Android-based phones, tend to have less control over apps offered to the customers than does Apple Apple prides itself on well-trained and knowledgeable salespersons with excellent customer service. Apple invests heavily in R&D, over $6 billion in 2014 alone, up nearly 100 percent from 2012. In addition, Apple is expanding its retail stores around the world During 2014, Apple acquired several fimms, including Beats Music and Beats headphones Apple obtained a subscription streaming music service and a headphone fim in the process Apple's acquistions in 2014, however, increased the firm's goodwill from $15 to $4.6 bilion To keep costs low, almost all Apple hardware products are manufactured in Asia and many of these are manufactured at a sinide location, except for a few Macs that are manufactured in of 13 Word: 4 350 W DAL Case 21 apple , 2015 543 Exhibit 2 Apple Revenues by Region (in millions of USD) revenues 2014 2013 2012 Americas Europe China Japan Rest of Asia Pacific Retail Net Sales $65,232 40,929 29,846 14,982 10,344 21,462 182,795 $62,739 37,883 25,417 13,462 11,181 20,228 170,910 $57,512 36,323 22,533 10,571 10,741 18,828 156,508 Source: Based on Apple's 2014 Annual Report, p. 27. the United States. While able to better maintain quality control, this does put Apple at risk over strikes, poor management, or other disruptive activities at a single location facility. To counter this problem, Apple tends to stock enough supply to cover its demand for up to 150 days, but du mg a new issue of an iPhone, for example, there can be supply shortages, where customers must wait weeks or even months to receive their products. Apple has sued Samsung twice in the last couple of years for patent infringements in the hypercompetitive smartphone industry. Apple was awarded 5120 million of a $2.2 billion claim for Samsung violating three patenting infringements. However, Apple was unable to prove that Samsung's action caused significant damage to its product line. To date, Samsung has been or dered to pay Apple over $1 bilhon in damages, and both cases have been appealed and Apple has vet to receive any compensation. More important for Apple than the $1 billion was the desire for the legal actions to impair Samsung from being able to sell certain products. To date, this outcome does not appear likely for Apple. Words: 4,350 10 9 W AILI TO 10 ANA BIU. x, X A Font E. mmat Painter and F **21 . AE AaBbCD Aa Aal Aal Body Test Heading Heading 2 Headings Heading Head Normal Paragraph . . . . Styles egment Data Exhibit 2 reveals that Apple's sales increased 7 percent in 2014, following a 9 percent increase the prior year. Fiscal 2014 sales were boosted by strong iPhone 5s and Sc sales, and also ac- count for initial sales of the iPhone 6 and iPhone 6 released in October 2014 in the United States, one month before Apple's fiscal year ended. However, some preorder sales of iPhone 6 and 6+ are included in Apple's 2014 fiscal year. With the iPhone 6 and 6+ also comes Apple Pay, which allows customers to pay by scanning their phones at selected retail stores. As of late 2014,83 percent of all credit card transactions in the United States were compatible with Apple Pay, with banks not offering compatible products quickly but rather coming to agement with Apple. The company reported sales increases in all regions in fiscal 2014, except in the Rest of Asia Pacific region, which experienced a small decline. The largest percent growth came from China and Japan Apple's iPhone accounted for 55 percent of total 2014 revenues, up 11 percent from fiscal 2011, as indicated in Exhibit 3. Apple's iPad sales have been steady but have not increased since 2012. Apple's new iPad Air 2 hopes to reverse this trend. However, with the larger iPhone dis- plays with the 6 and 6-products, many customers may opt only for having one device. In a bit of a surprise for analysts, Apple's Mae sales were up 12 percent in fiscal 2014, from stronger than expected back to school sales on Macs. The back to school sales were strong enough to boost Macrevemesto 56.6 billion in Q1 of fiscal 2014 more than iPad's revenue of bubon Mac now owns over 6 percent of the dobalPC market, its largest market share since 1995. Machas gained market share on windows machines in 33 of the last quarters iTunes, Software, and Services are continues to gow, 12 percent from the 2013. This sejament includes the Apple Store, iCloud. iLife Werk AppleCare and apps that many users pay to download and use on the Phones and iPads. Apple iPod, once the bellwether for the firm before the release of the iPhone has been in constant decline with sales down pacent from 2012 to 2014. In summer 2014. Apple discontinued making s uciPod 160 device on claims they could no longer be the parts Apple's accesso r iewcludes headphones, w ithones and Apple TV. case and Apple Watch Apple Watch will be compatible newer products running iOS 80 or meer 4 of 13 Word: 4,350 e 9 W X Page Layout References Marlings Times New Rom. 10 ANA BI X , X A Apple case docx Microsoft Word (Product Activation failed Review View E RE! AaBbc A. Aa Aal . EE E E Normal Body Test Heading 1 Heading 2 Headings Headings A Paragraph Exhibit Alle wees by Producti ons of $100,000 Finance 9 W Apple case docx - Microsoft Word (Product Activation Failed) Page Layout References Mailings Review View nes New Rom 10 A Anny E 211 Aal BIUhe X, X AW.A. EE . I Normal Body Text Heading 1 Heading 2 Heading Heading 4 Headings Font Paragraph Change Stin . Styles 4 1 . Apple's current income statement and balance sheet are provided in Exhibits 4 and 5 re- spectively Much of the cash on Apple's balance sheet is kept in foreign banks. In this way, Apple avoids paying US corporate taxes on those camings Exhibit Income Statement in millions of USD) pot Date tember 27, 2014 ember 28 2013 5170910 R 5152,795 112355 Cost of Gross pro Opera et des 50 135 13 Source Based on c o me Competitors the Apple competes in the compete and pay change out References Mailings 10 ANA be X, X A E .A. Font Apple case docx - Microsoft Word (Product Activation Failed) Review View E ** 2! AaBBCCDC ABC Aa Aa AaBb AaBbc AaBbcA T Normal Body Test Heading 1 Heading 2 Heading Heading t Paragraph products in line with Apple prices. Competition for Apple should only increase in the future as rival firms are better able to duplicate Apple's products or even better able to persuade cus tomers their products are just as good but significantly cheaper in price. Top competitions for Apple are Samsung and Lenovo in the smartphone, tablet, and PC markets. However, Apple faces significant competition from various other PC providers such as Del Sony, and Toshiba A cut E Times New Ron ANA BIU , X AVA E 2! I a com * 5. AaBbce Alo Aa Aal AaB i Aalbo AnBbc 1 omal Body Test Heading! Heading 2 Heading Heading s A Paste Format Painter Cupboard Exhibit 5 Bate Sheet in milions of USO) $13,344 11233 Obat can 2313 Property, plate Goodwill Othe 231.8.99 A puble Tool Deco Derende 130290 Total 13. 20.00 e 9 w ES DELL Paid in capital and other Totality Totallia & equity 111.347 (471) 11509 201419 307.000 Source Based on company documents Exhibit 6 2014 Percent Market Share of Key Global Players apple android Source Based on company documents and a variety of other to Exchab 6 provides a comparative analysis of Apple with some of its malfum in terms of market share. Note that Apple products trail Android products substantially in market share Apple projects to take a 35 percent market sharin watches in 2015 un d share to 42 percent. I 2014, the total watch market was than tomon but is expected to expand to 35 million unit by year end 2015 Exhibit provide additional comparte competitive info mation for Apple and valim Samsung e 9 w YU Insert Page Layout References Malings Review Times New Rom. 10 ANA BEE Brube *, * A .A. Apple case doci Microsoft Word Product Activation failed View 11 AalbCcDE Aallt.cc Aa Aal AaBb AaBb AaBbc 2 . Body Text Heading Heating Heading Heading Heads Paragraph A Exhibit 7 Apple versus Rival Pirms -Employees 92.000 3953 273 M 715796 No 07B Source: sed on company documents and a variety of other source 2010 was prodong half of t h e phones in China Saman has the center in Chan Sam was years behandlet meer Apple in the smartphone make this launch in 2009 the Bada operating s a 2010. Sam provided an Android powered wartphone in 2013. Sam m a 21 percent of the balut phen make mone Sam the industry leader in an tow n . Samen se today produces tablett DVD player, a t an wing machine, PC nebo p o dce and more In addition Sag g ed in providing we medicale pentruch as a sound and the to popular product a ng compete with Apple dancthen the Sun Olaxy and Note the Galaxy Tab TV chandap penyam 2013 c Lenovo DELL Microsoft Word (Product Activation failed Mailings Apole case door View Review UP- Insert Page Layout References Arial Narrow - 10 A Format Painter parter BI V X , X A board AN EE .A. 1 15 AaBbcc ABCD Aa Aa AaBb AaBbc AaBbc. A Normal Body Test Heading Meading 2 Heading Mainte Paragraph s Jenovo Founded in 1994 in Being and headquartered in both B a nd New York City, Lenovo ac- ured TOM ThinkPad laptops and more recently TBM's lower and Loredad mot enter the smartphone market i 2010, but its Lethone is popular in China and increasing market share in the entry level market space Lenovo is abrapidly introducing the Lethenin Russia, India Indonesia and other neighboring Asian nations that he have developing econo mes Lenove compete with Apple pray on PC, ince the firm has positioned in a lower demographic market for its smartphones Lenovo's 2014 an expected to be an excess of 37 billion the same as in 2013 With Lenovo's $29 billion acquisition of Motorola 2014, the fois now the world third largest smartphone man behind Sam and Apple Le a des on the Hong Kong Stock Exchange and current employs 34.000 people weddie Extemal Issues In 2014, there we r e smartphone sta tion in the hated States The powth rate was appemately 35 percent from 2009 to 2014 with east of costouby 2019 Most of the smatphomanin Chandthe h ema deal per fem 2010 to 2014. Less th e produced 2003, n g o 500 in 2011 The top four phone China e Sam p le and ITC, forever half of the total de DOLL * Cut Paste la Copy For 10 ANA BEE *211 BI Usb *, * A A.V.A. .A. =anta . ABECEDABCD Aa Aa AaBb AaBbc A Normal door tot no Body Text Heading 1 Heading? Heading Heading te Painter 1 Norma Clipboard Paragraph Styles Computer Manufacturing and Tablets Computer manufacturing is a $14 billion industry in the United States alone but sales follower 17 percent per year between 2009 and 2014. About 62 percent of all computers manufactured in the United States are laptops, but this still leaves 38 percent of the computers manufactured being desktop. Overall projections are 5 percent declmes moving forward through 2020. Tablets are projected to further make inroads into personal computers in US manufacturing However, it is important to note that at least for Apple's of 2014, Macles exceeded iPadsales Most tablets are manufacturedin China, with Apple holding 27 percent of the market share followed by Samsung and Lenovo with 12 and percent, respectively, on tablets made in China The largest players in the US computer manufacturing business, such also includes ver, HP Dell, and IBM, with 25, 19, and is percent market share.respectively. Two relative areas that may help boost laptop sales are the new ultrabooka, extrathin laptops the battery antice and laptops with touch dass where the user can touch the screen much like on smartphone or tablet Worldwide PC sales are expected to be $190 biton in 2015, tapering down to $160 billion by 2018 In 2014, PC pents alone accounted for 56 percent of the device (PC and Tablets) shipments, but this member is expected to be reduced to 45 percent by 2018 antalets make further woads on PC Tablets are expected to powpercent a year through 2018 Cumart, Android based phones account for just over 60 pesoftphone operating system with iOS picking up much of the balance Touch 2015, the look w projected to remain the same Operating Systems Operating systems are another large market in the United States with 2013 of 4 hon expected to grow to 557 om by 2019 Majors by market share wickede Microsoft and Apple with and 20 percent of the totalmet Micrott's pom poduct contato be Windows, while Apple is the one anos Geographic Outlook Most smartphone s de cloped co ford However, with the centre of t r espected to powth tales subside me he trained to update the post Layout References Microsoft Word Product Activation failed Arial Now - 10-AN A 3 E Format Painter 21 2! ABOCCO ABCD Aa Aa AaBb AaBbc AaBbc A. B est Heigt dig Apple 6 0 pecofthe Windows, while Apple is the m Mic r os oduct contebe Geographie Outlook Mos ma mai deped e ford However, with the metho d update the post least every 2 years, the lengte formato de Theme pen o nth the moving forward shed to developinma ch in and China Tallinta thehes ted to b e 2014163bben in 2011. p ats the Pacing pec Sales et man tenha pecto Du n e 2013 Apple Mallora family 1490 per month Deb a th If Aple Murfar of the met Ferem 10 p le Spotify m amadepandan fend pu n ch 51. Info 2011 lantanalar and W D F G H I J Apple case.docx - Microsoft Word (Product Activation failed) View U20-A File Home Insert Page Layout References Mailings Review a cut Arial Narrow - 10 ANA 3 E Paste Format. Painter BIUXX A.A. Clipboard Font 2 1 20 AMBDCED ABCD Aa Aal AaBb AaBbc Aalbo Norm Body Test Heading Heading? Heading Heading s Dua copy 548 Strategie Mae Ment cases Apple began shipping its Apple watch in April 2015. Then and Mae were 551 and 57 bdon espectively, for the first quarter 2015, p 37 and 9 percent from first quarter 2014. However, iPad sales were do 22 percent over the same time frame do te people of updating the tablets as frequently, les demand than foxphones and the newithene cabled iPad sales Develop a vear strategic plan for CEO Tim Cook that will enable Apple to contro compete with rivale Samsung and Love Use the template at the www .com site toppematics and anale Inpres Mi Cook sith your work be c ando Financial CEO Cook was the bus "Person of the Year for 2014 2015 at Apple har holder me when someone questioned the probably of Apple My Cookponded We do things for other than prom o te cause they had just that's hardline for you then you should