*Apple, Inc.

: A Comprehensive Overview*

*Founding and Early Years:*

- Founded in 1975 by Steve Jobs and Steve Wozniak.

- Apple I computer introduced in 1976, followed by the highly successful Apple II in 1977.

- Went public in 1980 but faced challenges with products like Apple III and Lisa.

*Leadership Changes and Macintosh Introduction:*

- Jobs recruited CEO John Sculley in 1983.

- Introduced Apple Macintosh in 1984, featuring a graphical user interface (GUI) inspired by Xerox
PARC.

- Jobs resigned in 1985, leading to internal conflicts.

*Jobs' Departure and Subsequent Ventures:*

- Jobs founded NeXT in 1985, and Wozniak also left Apple.

- Acquired Pixar Animation Studios in 1986, which went public in 1996.

- Apple struggled, holding 5.3% of the PC market share in the late 1990s.

*Jobs' Return and Product Innovations:*

- Apple purchased NeXT for $400 million in 1997, bringing Jobs back.

- Jobs became interim CEO in 1997 and CEO in 2000.

- Introduced iMac in 1998, leading to a significant financial turnaround.

*Entry into Digital Music and iTunes:*

- Released iTunes in 2001, addressing the rise of illegal file-sharing.

- Launched iPod in the same year, dominating the digital music player market by 2008.

*iPhone and App Store Launch:*

- Introduced iPhone in 2007, revolutionizing the smartphone market.

- Launched the App Store in 2008, enabling third-party app development.

- Achieved substantial revenue growth, with iPhones accounting for a significant portion.
*iPad, Siri, and Post-Jobs Era:*

- Introduced iPad in 2010, expanding into the tablet market.

- Acquired Siri in 2010, integrating voice-based virtual personal assistant into iPhones.

- Jobs resigned in 2011 due to health issues, and Tim Cook became CEO.

*Post-Jobs Innovations and Challenges:*

- iCloud introduced in 2011, providing cloud storage services.

- Released Apple Watch in 2015, entering the smartwatch market.

- Faced challenges such as the European Commission's order to pay back taxes in 2016.

*Recent Developments:*

- Launched HomePod in 2018, a voice-activated speaker.

- Achieved substantial revenue growth in 2018, nearing $1 trillion market capitalization.

- Continues to focus on high-end, innovative products, with mixed reviews for some releases.

*Financial Overview (2018):*

- Market Cap: $838.5 billion.

- Revenue: $247.4 billion.

- Gross Margin: 38.3%.

- EBITDA: $76.4 billion.

- EBITDA Margin: 30.9%.

*Future Outlook:*

- Speculation about becoming the first company to reach $1 trillion in market capitalization.

In summary, Apple's journey has been marked by product innovations, leadership changes, financial
challenges, and market dominance in various sectors, particularly in the realms of personal
computing, digital music, smartphones, and more recently, wearables. Despite the passing of Steve
Jobs, the company has continued to thrive under Tim Cook's leadership, with a focus on maintaining
a strong brand image and delivering high-quality, innovative products.
 APPLE’S CORPORATE LEVEL STRATEGIES
a) Differentiation: Apple has consistently focused on product differentiation by
creating innovative and aesthetically pleasing products. This strategy is evident
in the design of their computers, smartphones (iPhone), tablets (iPad), and
other devices, making them stand out in the market.

b) Integration: Apple follows a vertical integration strategy, controlling

both hardware and software aspects of its products. This integration allows the
company to maintain a high level of quality and user experience.

c) Strategic alliances

d) Diversification: Apple has diversified its product portfolio over the years,
expanding from computers to devices like iPods, iPhones, iPads, and wearables
like Apple Watch. This strategy helps Apple reach a broader consumer base.

e) R&D and Innovation: Apple's core strategy revolves around continuous

innovation. The company invests heavily in research and development to bring
new and groundbreaking products to the market, such as the iPhone and iPad.

f) Ecosystem Lock-In: Apple has created a strong ecosystem where its devices
and services work seamlessly together. This strategy aims to create customer
loyalty and retention by making it more challenging for users to switch to
competitors' products.

Strategic Alliances Adopted by Apple Over the Years:

a) Acquisition of NeXT: In 1997, Apple acquired NeXT, Steve Jobs' company,
bringing Jobs back to Apple. This strategic move contributed to the
development of key technologies and software used in Apple's future products.

b) Acquisition of Siri: In 2010, Apple acquired Siri, a voice-based virtual

personal assistant. Integrating Siri into Apple devices enhanced the user
experience and differentiated Apple products in the market.

c) Partnership with Major Record Labels: Apple's collaboration with major

record labels, including Sony, Universal, and Warner, for iTunes helped
establish a legal platform for digital music distribution.

Value Creation through Cooperation in Strategic Alliances

Apple has engaged in strategic alliances to enhance its product offerings and
services. For instance:

a) Partnership with Microsoft: In the mid-1990s, Apple and Microsoft formed

a strategic alliance, which included Microsoft investing in Apple. This
cooperation helped Apple survive financial difficulties and ensured the
availability of Microsoft Office on Macintosh computers.
b) Collaboration with App Developers: The App Store, launched in 2008,
allowed third-party developers to create applications for Apple's iOS devices.
This strategic alliance expanded the functionality of Apple's devices, attracting
more users and increasing the value proposition.

c) Licensing Agreements: Apple has entered into licensing agreements with

various companies to include their technologies in Apple's products. For
example, the use of ARM architecture in Apple's A-series chips for iPhones and
iPads.

Importance of Complementarity in Strategic Alliances for Apple

Complementarity in strategic alliances is crucial for Apple, as it ensures that
the combined resources, capabilities, and technologies of the partners create
more value than they would individually. Examples include:

a) iOS and App Store: The integration of Apple's iOS operating system with
the App Store creates a complementary ecosystem where users can seamlessly
access and download applications, enhancing the overall user experience.

b) Hardware and Software Integration: Apple's vertical integration strategy

ensures that hardware and software are designed to complement each other,
resulting in a cohesive and user-friendly experience.

c) Apple Music and iTunes: The integration of Apple Music with the existing
iTunes platform demonstrates complementarity, offering users a comprehensive
music experience with both streaming and purchasing options.