BUYER’S journal APPLE corportation name Michelle Lee c l as s instructor
D e re k S h a w R E TA I L B U Y I N G SA N D R A H W I L L I A M S
TABLEof contents
Part 1 Retail Overview Part 2 Individual Store Part 3 Marketing Analysis Part 4 Financial Analysis Part 5 Perspective: In Conclusion Works Cited
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Apple Buyer’s Journal
PART Iretail overview Name of Retailer:
Apple Corporation
Mission Statement:
Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad.
Type of Organization: Stand-Alone CONGLOMERATE definition
A corporation consisting of a number of subsidiary companies or divisions in a
variety of unrelated industries, usually as a result of merger or acquisition
STAND-ALONE definition
A company that is not a subsidiary of another company. A subsidiary is sometimes
spun off and becomes a stand-alone company because it may have higher profit potential as an independent entity
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Apple Buyer’s Journal
PART Iretail overview Type of Management: Centralized CENTRALIZED ORGANIZATIONS
DECENTRALIZED ORGANIZATIONS
company examples: Disney
JC Penney
company examples: Hyatt Hotels
Perdue Farms
Express
IKEA
General Electric
McDonald’s
Ben & Jerry’s
PROS
PROS
1 Efficient business decision-making
Empowering employees
2 Focused vision
Greater efficiency and output
3 Fast execution
Better coordination
4 Reduced conflict
Maintenance of secrecy
Control and Accountability
Distribution of burden from top executive
CONS
CONS
1 Less creativity
1 Potential inconsistencies
2 Limited communication
2 Less control
3 Inflexibility
3 Fragmentation
4 Delegated authority
4 More cost
5 Inequity in administrative system
5 Need for more specialists
Headquarters: 1 Infinite Loop C u p e r t i n o , CA 9 5 0 1 4
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Apple Buyer’s Journal
PART Iretail overview Stores and Locations: 268 United States 156 International 424 total stores US Locations: Alabama (2), Alaska (2), Arizona (6), Arkansas (1), California (52), Colorado (6), Connecticut (5), Delaware (1), District of Columbia (1), Florida (16), Georgia (5), Hawaii (3), Idaho (1), Illinois (9), Indiana (2), Iowa (1), Kansas (1), Kentucky (2), Louisiana (2), Maine (1), Maryland (5), Massachusetts (10), Michigan (5), Minnesota (5), Mississippi (1), Missouri (3), Nebraska (1), Nevada (4), New Hampshire (2), New Jersey (11), New Mexico (1), New York (17), North Carolina (5), Ohio (6), Oklahoma (2), Oregon (3), Pennsylvania (9), Rhode Island (1), South Carolina (2), Tennessee (4), Texas (17), Utah (2), Virginia (7), Washington (6), Wisconsin (3).
International Locations: United Kingdom (37), Japan (7), Canada (27), Italy (12), Australia (20), China (8), Switzerland (3), Germany (11), France (15), Spain (10), Hong Kong (3), Netherlands (1), Sweden (2)
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Apple Buyer’s Journal
PART Iretail overview First Year of Operation Company Background: It all started when Steve Jobs and Steve Wozniak met in college, they dropped out and were often known as the outcasts no matter where they were including school, and some believe this is why they dropped out of college. Apple first started in a basement, which could be why so many people were interested by the brand and could be why their computers were such a success. They were created by guys who knew what they wanted and passed it on to the rest of the world. And what they wanted was what other people wanted as well. What really started the company was the first order Jobs and Wozniak took on, they created a working model of their computer and took it to a nearby computer store in order to try to make it into the market and the owners of the store wanted 50 models of the machine that were fully assembled and ready to go. In order to complete this order they had to write a lot of IOU’s to companies to get the parts they need since they had no money and had to do this all on their own. In the end the Apple 1 was created and they sold around five hundred dollars a piece. The creation of the Apple 1 and the successfulness happened in 1976 and this is when Apple became an official company.
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Apple Buyer’s Journal
PART Iretail overview Evolution of Apple: Since 1976 when the first Apple computer was created, Apple has evolved so much not only do they have their own headquarters (almost two now) but they have gained so much when it comes to its products. With the success of the iPod, iPhone, ipad and Mac computers they are very well known around the world and continue to be a multi-billion dollar company. Sadly Steve Jobs died in October 5, 2011 and Tim Cook took the position of CEO. As of now Apple looks good in numbers, but are struggling with competitors like Samsung offering devices that are better and at cheaper price points.
Five World Events in 1976: 1.
Jimmy Carter was elected as the 39th president
2.
NASA introduced the first space shuttle
3.
Tangshan Earthquake in China
4.
West Point military academy started accepting women
5.
19-Month civil war ends in Lebanon after threating to escalate to
global level.
EVOLUTION OF Apple: TIMELINE
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Apple Buyer’s Journal
PART Iretail overview EVOLUTION OF Apple: TIMELINE
1976 - High-school buddies Steven Wozniak and Steven Jobs start Apple Computer. Their first product, Apple I, built in circuit board form, debuts at “the Homebrew Computer Club” in Palo Alto, California, to little fanfare. 1977 - Apple II is unveiled, the first personal computer in a plastic case with color graphics. 1983 - Apple starts selling the “Lisa,” a desktop computer for businesses with a graphical user interface, the system most users are familiar with today. 1984 - Apple debuts the Macintosh personal computer. It is hyped with a dark, stylized commercial in which a heroine takes on Big Brother characters reminiscent of those in George Orwell’s novel “1984” (here). 1985 - Jobs leaves Apple in 1985 after a power struggle. 1991 - Apple introduces the PowerBook 100, its first hit portable computer. 1993 - The Newton Message Pad debuts. Apple’s first handheld device, it has a touchscreen and features tools found in today’s smartphones, such as an address book, calendar and e-mail function. It flops. September 1997 - Jobs is named Apple’s interim CEO after the company records losses of more than $1.8 billion. November 1997 - Jobs introduces a new line of Macintosh computers called G3, and a website that lets people order directly from Apple. 1998 - Apple unveils the iMac desktop computer. 2001 - Apple introduces the iPod, a palm-sized, hard-drive-based digital music player. 2003 - The iTunes Store opens, allowing users to buy and download music, audiobooks, movies and TV shows online.
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Apple Buyer’s Journal
PART Iretail overview EVOLUTION OF Apple: TIMELINE
August 2004 - Jobs announces he underwent successful surgery to remove a cancerous tumor from his pancreas. The rare form of cancer is highly treatable. 2005 - The iPod adds video, and Apple fills out its portable media line with the low-end iPod shuffle, and sleek iPod nano. October 2005 - Tim Cook is named Apple’s chief operating officer, after serving as executive vice president of worldwide sales and operations since 2002. January 2007 - Apple announces the iPhone. The device features one button on its smooth face and a virtual keyboard. It also introduces Apple TV, which attracts few buyers. September 2007 - Apple unveils the iPod Touch -- essentially an iPhone without the phone -which has wireless capabilities and performs much like a portable computer. 2008 - Apple opens its App Store as an update to iTunes. The store features small applications -- from games to social and business tools -- that add functions to the iPhone and iPod Touch. Apple also releases the MacBook Air. January 2009 - Jobs takes leave for health reasons. COO Cook leads the company in the interim. June 2009 - Jobs returns to the company after undergoing a liver transplant. 2009 - Apple releases the iPhone 3GS. The company has sold more than 220 million iPods so far. 2010 - Apple awards Cook a bonus valued at $22 million for leading the company during Jobs’ sixth-month leave, during which its shares soared about 70 percent.
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Apple Buyer’s Journal
PART Iretail overview EVOLUTION OF Apple: TIMELINE
April 2010 - Apple begins selling the iPad, a 10-inch touchscreen tablet, and has an 84 percent share of the tablet market by year’s end. Researcher iSuppli estimates 12.9 million iPads were shipped as of December 10. November 2010 - The Beatles’ 13 albums become available on iTunes, ending years of talks between Jobs, Beatles’ management company Apple Corps and Beatles label EMI Group. January 17, 2011 - Jobs announces that he will take another medical leave. February 10, 2011 - Verizon Wireless, a venture of Verizon Communications Inc and Vodafone Group Plc, starts selling the iPhone in stores and puts an end to AT&T’s exclusive contract for the phone in the United States. February 15, 2011 - Apple launches a long-awaited subscription service for magazines, newspapers, videos and music -- a move that could hurt streaming services Netflix and Hulu. March 2, 2011 - Apple launches the iPad 2, a sleeker, lighter version of its tablet with a new dual-core processor, two cameras and, for the first time, it comes in either white or black. August 24, 2011: Steve Jobs announces his resignation as chief executive officer at Apple. Cook takes over, while Jobs takes on role as company chairman. 2012: IPhone 5 comes out with a sleek new appearance, IPad Mini comes out. 2013: We see Apple trip a little with issues concerning stock, sales and competition
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Apple Buyer’s Journal
PART Iretail overview Customer Profile Today Apple targets towards men and women who range from 31 to 64 years old who have an income of $65,000 or more and have a college education. This age group refers to Baby Boomers and Gen Xers, they take advantage of the Genius Bar and the in store personal setup. Apple also targets towards 16 to 30 years old Millennials, until recently this was who Apple was mainly targeting to but, older generations are beginning to get an interest for Apple.
Baby Boomers: Born between 1946 and 1964, the Boomers were the largest generation in American history numbering more than 75 million. Raised in an era of extreme optimism, opportunity and progress, most Boomers grew up in two-parent households, with safe schools, and job security. As a group, this generation is characterized by a deep reaction to all forms of tradition – religious, familial, cultural, musical, societal. We can credit Boomers with the rise of rock-n-roll and the mass entry of women into the workforce.
Gen Xers: Born between 1965 and 1979, this is the smallest generation in modern American history, numbering slightly less than 50 million. Considered to be the most ignored and most misunderstood generation. They grew up in two-career families with rapidly rising divorce rates, downsizing, the dawning of the high-tech and information age and the introduction of the entertainment culture.
Millennials : Born between 1980 and 2000, Millennials (also called Gen Y) are the largest generation in American history at more than 100 million. They are the most diverse, most educated, most marketed to, and most cared for generation in history. Nearly half of Millennials were raised by divorced parents, 33% lived with a single parent, and nearly 75% had working mothers. Millennials have come of age during a time of rapid technological and social shifts. The advent of SMS (texting) created whole new paradigms of communication and interaction. More than 95% of Millennials have an account on at least one social networking site.
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Apple Buyer’s Journal
PART Iretail overview Competitive Profile Primary Competitor #1: Samsung One of Apple’s biggest competitors at the moment. According to Forbes.com article “Samsung Trouncing Apple” Samsung controlled about 33% of the global smartphone market in the first quarter compared to Apple’s 18% . Also Samsung’s smartphone sales raised to 56% to 69.4 million units while Apple only grew 6.6% to 37.4 million units. Primary Competitor #2: HP Hp has been around for 74 years and has very well made PC computers. They are less expensive compared to Apple’s iMac and they already come with Microsoft Office, for Mac’s you have to pay for the software. Primary Competitor #3: Android Android has similar popular items like Apple (smartphones and tablets) and they also offer these items for a lower price, for example the Google / Android tablets cost $234.00 and an iPad 2 cost $399.00 and they both do the same thing. Also Android has it’s own Market (Application Store) that offers many different kinds of applications that are about 75% free, when you look at apple’s iTunes store you notice more applications actually cost money (lowest is $0.99).
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Apple Buyer’s Journal
PART 2individual store analysis Apple
Analysis Background Information
801 W North Ave
Date
April 23, 2013
Chicago, IL 60642
Day of Week
Tuesday
Monday - Saturday: 9am to 9pm
Time
5:20 pm
Sunday: 10am to 7pm
Location
801 W North Ave Chicago, IL
I visited the flagship store in Lincoln Park, this location is also a stand-alone store that is located right off the red line for time convenience. When I went to Apple Store it was very busy, almost every electronic device on display was being used and you had to wait a little to test out the products. I feel like the reason it was so busy was because of the time of day, a lot of people are getting off work and have time to stop by the store to get what they need. I also feel like because the area is very popular and a lot of other great stores like Express, World Market, The Container Store and American Eagle.
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Apple Buyer’s Journal
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Software
Personal Set-up
Personal Set-up
Personal set-up
Personal Set-up
Accessories
Software
Personal Service
Kids
Kids
Personal Service
Accessories
Genius Bar
Personal Service
Personal Service
Personal Service
Personal Service
Entry
iMac
MacBook Air
MacBook Air
MacBook Pro
MacBook Pro
iPod
iMac
iPad
iPad
iPhone
iPhone
iPod
PART 2individual store selection Floor Plan Entry
Entry
Apple Buyer’s Journal
PART 2individual store analysis Product Assortment Technology Mac: M a c B o o k A i r
11-Inch (64GB)
11-Inch (128GB)
13-Inch (128GB)
13-Inch (256 GB)
iPad:
iMac-
iPad 2-
1 6 G B 2 1 . 5 - I n c h ( 2 . 7 G H z ) Colors: Black and White 2 1 . 5 - I n c h ( 2 . 9 G H z )
27-Inch (2.9GHz)
iPad Retina Display
1 6 G B
2 7 - I n c h ( 3 . 2 G H z )
3 2 G B
MacBook Pro
13-Inch (2.5GHz)
13-Inch (2.9 GHz)
15-Inch (2.3 GHz)
Mac Pro-
64GB
Q u a d - C o r e 128GB 1 2 - C o r e Colors: Black and White S e r v e r iPad mini
MacBook Pro R e t i n a D i s p l ay
13-Inch (2.5GHz)
13-Inch (2.6GHz)
1 6 G B
2 . 5 G H z
3 2 G B
Mac mini-
15-Inch (2.4GHz)
2 . 3 G H z O S X S e r v e r
6 4 G B
Colors: Black & Slate, White & Silver
15-Inch (2.7GHz)
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Apple Buyer’s Journal
PART 2individual store analysis Product Assortment Technology
iPhone:
i P h o n e 4 - 8GB Colors: Black and White i P h o n e 4 S - 16GB Colors: Black and White i P h o n e 5 - 1 6 G B 3 2 G B 6 4 G B Colors: Black & Slate and White & Silver
iPod: i P o d S h u f f l e - 2 G B Colors: Slate, Silver, Hot Pink, Light Pink, Yellow, Green, Blue and Red i P o d n a n o - 1 6 G B Colors: Slate, Silver, Hot Pink, Light Pink, Yellow, Green, Blue and Red i P o d c l a s s i c - 1 6 0 G B Colors: Silver and Slate i P o d T o u c h ( 4 t h G e n ) -
1 6 G B
3 2 G B Colors: Black and White i P o d T o u c h - 3 2 G B 6 4 G B Colors: Slate, Silver, Pink, Yellow, Blue and Red
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Apple Buyer’s Journal
PART 2individual store analysis Product Assortment Accessories Mac Accessories: A p p l e T V A i r P o r t E x p r e s s B a s e S t a t i o n
A p p l e 3 0 - p i n t o U S B C a b l e A p p l e H D M I t o H D M I C a b l e 1 . 8 M
A i r P o r t E x t r e m e B a s e S t a t i o n T i m e C a p s u l e - 2 T B T i m e C a p s u l e - 3 T B
A p p l e T h u n d e r b o l t C a b l e 2 . 0 M A p p l e U S B E t h e r n e t A d a p t o r M i n i D i s p l a y P o r t t o D u a l - L i n k D V I A d a p t e r
S p e c k 1 3 ” S m a r t S h e l l C a s e M a c B o o k P r o
A p p l e W i r e l e s s K e y b o a r d - E n g l i s h
S p e c k 1 5 ” S m a r t S h e l l C a s e M a c B o o k P r o
A p p l e M a g i c M o u s e
S p e c k 1 3 ” S m a r t S h e l l C a s e M a c B o o k P r o R e t i n a D i s p l a y
M a g i c T r a c k p a d
Speck 15” SmartShell Case MacBook Pro Retina Display
A p p l e K e y b o a r d w i t h N u m e r i c K e y p a d
Colors: Grey, Clear, Purple, Hot Pink, Yellow, Green and Red M o s h i 1 5 ” i G l a z e S h e l l C a s e M a c b o o k P r o R e t i n a D i s p l a y
A p p l e M o u s e M o s h i C l e a r G u a r d C S 6 P r o t e c t o r M i c r o s o f t O f f i c e f o r M a c H o m e a n d S t u d e n t
M o s h i 1 1 ” i G l a z e S h e l l C a s e M a c B o o k A i r
M i c r o s o f t O f f i c e f o r M a c H o m e a n d B u s i n e s s
M o s h i 1 3 ” i G l a z e S h e l l C a s e M a c B o o k A i r
A d o b e P h o t o s h o p C S 6 A d o b e C S 6 D e s i g n S t a n d a r d
Colors: Clear and Black
A d o b e I n D e s i g n C S 6
A d o b e I l l u s t r a t o r C S 6
I n c a s e 1 1 ” N e o p r e n e P r o S l e e v e M a c B o o k A i r
Adobe Photoshop CS6 Extended
I n c a s e 1 3 ” N e o p r e n e P r o S l e e v e M a c B o o k A i r
I n c a s e 1 3 ” N e o p r e n e P r o S l e e v e M a c B o o k P r o I n c a s e 1 5 ” N e o p r e n e P r o S l e e v e M a c b o o k P r o Incase 15” Neoprene Pro Sleeve Macbook Pro Retina Display Colors: Pink, Black, Light Blue and Purple
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Apple Buyer’s Journal
PART 2individual store analysis Product Assortment Accessories
L i g h t i n g t o U S B C a b l e ( 1 M )
App-Enabled Accessories:
A p p l e 3 0 - p i n t o U S B C a b l e B e l k i n 3 0 - p i n C h a r g e r S y n c C h a r g e r B e l k i n C a r C h a r g e r w i t h L i g h t i n g
N i k e + F u e l B a n d
I n c a s e O r i g a m i W o r k s t a t i o n
Sizes: Small, Medium/Large
Colors: Black and Grey
Colors: Black, Grey and Clear
T w e l v e S o u t h B o o k A r c S t a n d
P h i l i p s H u e C o n n e c t e d - S t a r t e r P a c k
iPhone Accessories:
P h i l i p s H u e C o n n e c t e d B u l b - S i n g l e P a c k S q u a r e C r e d i t C a r d R e a d e r - W h i t e i B a b y M o n i t o r
P o w e r S u p p o r t H D A n t i - G l a r e F i l m s e t f o r i P h o n e 5
iHealth Wireless Blood Pressure Wrist Monitor
M o p h i e J u i c e P a c k H e l i u m B a t t e r y C a s e f o r i P h o n e 5
A p o g e e M i C M i c r o p h o n e
T e c h 2 1 I m p a c t M e s h C a s e f o r i P h o n e 5
i Z O N 2 . 0 W i - F i V i d e o M o n i t o r
Colors: Clear, Grey, Blue and Hot Pink
W i t h i n g s S m a r t B o d y A n a l y z e r
I n c a s e P r o S n a p C a s e f o r i P h o n e 5
iHealth Wireless Blood Pressure Monitor
Colors: Black, Black & Grey, Purple, Pink, Aqua, Green, Kiwi, Blue
Squier by Fender USB Stratocaster Guitar
Orange
L i n e 6 M o b i l e K e y s 4 9 C o n t r o l l e r
B e l k i n G r i p C a n d y T P U C a s e f o r i P h o n e 4 & S
i G r i l l G r i l l i n g / C o o k i n g T h e r m o m e t e r
I n c a s e S p o r t s A r m b a n d D e l u x e f o r 4 S / 4
V e s t a x S p i n D J / V J U S B i O S C o n t r o l l e r
M I C H A E L M i c h a e l K o r s E s s e n t i a l Z i p W a l l e t F o r i P h o n e 5
G e a r 4 R e n e w S l e e p C l o c k
Colors: Black, Purple and Red M I C H A E L M i c h a e l K o r s C r o s s b o d y C a s e F o r i P h o n e 5
iPad Accessories:
M I C H A E L M i c h a e l K o r s E s s e n t i a l Z i p W a l l e t F o r i P h o n e 4 S M i c h a e l K o r s W a l l e t C l u t c h f o r i P h o n e 4 S Colors: Red and Snake Skin
iPad mini Smart Cover
M a r c b y M a r c J a c o b s S p a r k s S n a p C a s e f o r i P h o n e 5
Colors: Dark Grey, Light Grey, Pink, Green, Blue and
Colors: Comes in 3 different patterns
Red
k a t e s p a d e n e w y o r k C a s e f o r i P h o n e 5
i P a d S m a r t C a s e - P o l y u r e t h a n e
Comes in 5 different patterns
Colors: Dark Grey, Light Grey, Pink, Green, Blue and
S p e c k C a n d y S h e l l C a s e f o r i P h o n e 5
Red
Colors: Black and White
S p e c k S m a r t S h e l l C a s e f o r i P a d
L i g h t i n g t o U S B C a b l e ( 1 m )
Colors: Clear and Black
A p p l e 3 0 - p i n t o U S B C a b l e
S p e c k S m a r t S h e l l C a s e f o r i P a d M i n i
B e l k i n C h a r g e + S y n c D o c k f o r i P h o n e 5
Colors: Clear and Black
B e l k i n 3 0 - P i n C h a r g e S y n c C a b l e
I n c a s e N e o p r e n e P r o S l e e v e f o r i P a d
B e l k i n C a r C h a r g e r
Colors: Black, Blue and Hot Pink
A p p l e U n i v e r s a l D o c k
Incase Neoprene Pro Sleeve for iPad Mini
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Apple Buyer’s Journal
PART 2individual store analysis
Product Assortment Accessories
Headphones:
iPod Accessories: iSkin evo3 Duo for iPod Classic Eclipse Black
A p p l e E a r P o d s w i t h R e m o t e a n d M i c
Griffin Trainer Sport Armband for iPod nano (7th
A p p l e I n - E a r H e a d p h o n e s w i t h R e m o t e a n d M i k e
G e n . )
B e a t s S o l o H D O n - E a r H e a d p h o n e A r t i s t S e r i e s ( F u t u r a )
I n c a s e P o p C a s e f o r i P o d T o u c h
B e a t s b y D r D r e W i r e l e s s O n - E a r H e a d p h o n e s
B e l k i n A n t i - G l a r e F i l m F o r i P o d t o u c h ( 5 t h G e n )
C o l o r s : B l a c k a n d W h i t e
Griffin Survivor + BeltClip for iPod touch (4th Gen)
B e a t s S o l o H D O n - E a r H e a d p h o n e
G r i f f i n k a Z o o C a s e f o r i P o d t o u c h ( 4 t h G e n )
Colors: Purple, Hot Pink, Black, Blue, White,Yellow, Red,
C o m e s i n O w l a n d T u r t l e S h a p e
V i o l e t
A p p l e 5 W U S B P o w e r A d a p t o r
B e a t s S t u d i o O v e r - E a r H e a d p h o n e s
A p p l e 1 2 W U S B P o w e r A d a p t e r
Colors: Purple, Hot Pink, Black, Blue, White, Yellow, Red,
L i g h t i n g t o 3 0 - p i n A d a p t e r ( 0 . 2 m )
V i o l e t
I n c a s e M i n i C h a r g e r
B e a t s P r o O v e r - E a r H e a d p h o n e s
Speakers: Bose SoundLink Bluetooth Mobile Speaker2 B o s e S o u n d D o c k S e r i e s 3 B o s e S o u n d D o c k S e r i e s 2 Bose SoundLink Bluetooth MobileSpeaker 2 L e a t h e r E d i t i o n Bose SoundLink Air Digital Music System Bose SoundDock 10 Bluetooth D i g i t a l S p e a k e r S y s t e m iHome iHM89 Rechargeable PortableMini S p e a k e r s iHomeD99 Triple-Charge Dual-AlarmStereo C l o c k R a d i o Beats by Dr Dre Pill Speaker C o l o r s : B l a c k , W h i t e a n d R e d Beats by Dr Dre USB Beatbox Portable Speake r
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Apple Buyer’s Journal
PART 2individual store analysis Sizing/Colors
Apple is sized by how much memory the device can handle or what size the screen the device is, usually iPhones, iPads and iPods are classified by memory and iMac’s and MacBook’s are by screen size. Colors for the devices are usually white, back or silver and black, the only item at Apple that has options in color choices are iPods; colors like Slate, Silver, Hot Pink, Light Pink, Yellow, Green, Blue and Red are available for iPod shuffle, nano and touch. Sizes in Memory range from 2GB which is from a iPod shuffle and all the way to 256 GB which is a 13-inch MacBook Air. The sizes for MacBooks go from 11 inches to 15 inches and iMacs range from 21.5 inches to 27 inches. You would be able to find a similar assortment of iPods with the same colors and models at Wal-Mart and Target and with all the colors (Slate, Silver, Hot Pink, Light Pink, Yellow, Green, Blue and Red) along with iPads at Wal-Mart At a place like Best Buy you would be able to find all the iPods, MacBooks, iPads and iPhones in all colors and sizes. Also online stores like Amazon you can find all devices Apple has to offer with all sizes and color assortment.
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Apple Buyer’s Journal
PART 2individual store analysis Pricing
Mac: MacBook Air MacBook Pro MacBook Pro Retina Display iMac
iPad: iPad 2 16GB $399.00
11-Inch (64GB) $999.00 11-Inch (128GB) $1,099.00 13-Inch (128GB) $1,199.00 13-Inch (256 GB) $1,399.00 13-Inch (2.5GHz) $1,199.00 13-Inch (2.9 GHz) $1,499.00 15-Inch (2.3 GHz) $1,799.00
iPad Retina Display 16GB $499.00 32GB $599.00 64GB $699.00 128GB $799.00
13-Inch (2.5GHz) $1,499.00 13-Inch (2.6GHz) $1,699.00 15-Inch (2.4GHz) $2,199.00 15-Inch (2.7GHz) $2,799.00
iPad mini 16GB $329.00 32GB $429.00 64GB $529.00
21.5-Inch (2.7GHz) $1,299.00 21.5-Inch (2.9GHz) $1,499.00 27-Inch (2.9GHz) $1,799.00 27-Inch (3.2GHz) $1,999.00
Mac Pro- Quad-Core $2,499.00 12-Core $3,799.00 Server $2,999.00 Mac mini
2.5GHz $599.00 2.3GHz $799.00 OS X Server $999.00
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Apple Buyer’s Journal
PART 2individual store analysis Mac Accessories:
Pricing
iPhone: iPhone 4- 8GB $450.00 iPhone 4S- 16GB $549.00 iPhone 5- 16GB 32GB 64GB
$649.00 $749.00 $849.00
iPod: iPod Shuffle-
2GB
$49.00
iPod nano-
16GB $149.00
iPod classic-
160GB $249.00
iPod Touch (4th Gen)- 16GB $199.00 32GB $249.00 iPod Touch- 32GB $299.00 64GB $399.00
Apple TV $99.00 AirPort & WirelessAirPort Express Base Station AirPort Extreme Base Station Time Capsule - 2TB Time Capsule - 3TB
$99.00 $179.00 $299.00 $499.00
Bags & CasesSpeck 13” SmartShell Case MacBook Pro $49.95 Speck 15” SmartShell Case MacBook Pro $49.95 Speck 13” SmartShell Case MacBook Pro Retina Display $49.95 Speck 15” SmartShell Case MacBook Pro Retina Display $49.95 Moshi 15” iGlaze Shell Case Macbook Pro Retina Display $59.95 Moshi 11” iGlaze Shell Case MacBook Air $59.95 Moshi 13” iGlaze Shell Case MacBook Air $59.95 Incase 11” Neoprene Pro Sleeve MacBook Air $39.95 Incase 13” Neoprene Pro Sleeve MacBook Air $39.95 Incase 13” Neoprene Pro Sleeve MacBook Pro $39.95 Incase 15” Neoprene Pro Sleeve Macbook Pro $39.95 Incase 15” Neoprene Pro Sleeve Macbook Pro Retina Display $39.95 Cables / Charging Devices: Apple 30-pin to USB Cable Apple HDMI to HDMI Cable 1.8M Apple Thunderbolt Cable 2.0M Apple USB Ethernet Adaptor Mini DisplayPort to Dual-Link DVI Adapter 22
$19.00 $19.00 $39.00 $29.00 $99.00
Apple Buyer’s Journal
PART 2individual store analysis iPad Accessories:
Pricing Mice & Keyboards:
Case: iPad mini Smart Cover $39.00 iPad Smart Case- Polyurethane $49.00 Speck SmartShell Case for iPad $34.95 Speck SmartShell Case for iPad Mini $34.95 Incase Neoprene Pro Sleeve for iPad $29.95 Incase Neoprene Pro Sleeve for iPad Mini$29.95
Apple Wireless Keyboard - English $69.00 Apple Magic Mouse $69.99 Magic Trackpad $69.00 Apple Keyboard with Numeric Keypad $49.00 Apple Mouse $49.00 Moshi ClearGuard CS6 Protector $24.95
Cables & Docks:
Software: Microsoft Office for Mac Home and Student $139.95 Microsoft Office for Mac Home and Business $219.95 Adobe Photoshop CS6 $699.95 Adobe CS6 Design Standard $1,299.95 Adobe InDesign CS6 $699.95 Adobe Illustrator CS6 $599.95 Adobe Photoshop CS6 Extended $999.95
Lighting to USB Cable (1M) Apple 30-pin to USB Cable Belkin 30-pin ChargerSync Charger Belkin Car Charger with Lighting
$19.00 $19.00 $24.95 $29.00
Stands: Incase Origami Workstation Twelve South BookArc Stand
App-Enabled Accessories:
$29.95 $29.95
Nike + FuelBand $149.95 Philips Hue Connected- Starter Pack $199.95 Philips Hue Connected Bulb- Single Pack $ 59.95 Square Credit Card Reader- White $9.95 iBaby Monitor $199.95 iHealth Wireless Blood Pressure Wrist Monitor $79.95 Apogee MiC Microphone $199.95 iZON 2.0 Wi-Fi Video Monitor $129.95 Withings Smart Body Analyzer $149.95 iHealth Wireless Blood Pressure Monitor $ 99.95 Squier by Fender USB Stratocaster Guitar$199.95 Line 6 Mobile Keys 49 Controller $149.95 iGrill Grilling/ Cooking Thermometer $79.95 Vestax Spin DJ/VJ USB iOS Controller $349.95 Gear4 Renew SleepClock ..$129.95 23
Apple Buyer’s Journal
PART 2individual store analysis iPod Accessories:
Pricing
iPhone Accessories:
iSkin evo3 Duo for iPod Classic Eclipse Black $34.95 Griffin Trainer Sport Armband for iPod nano (7th Gen.) $19.95 Incase Pop Case for iPod Touch $29.95 Belkin Anti-Glare Film For iPod touch (5th Gen) $14.95 Griffin Survivor + BeltClip for iPod touch (4th Gen) $39.95 Griffin kaZoo Case for iPod touch (4th Gen) $24.95 Charges:
Cases: Power Support HD Anti-Glare Film set for iPhone 5 $14.95 Mophie Juice Pack Helium Battery Case for iPhone 5 $79.95 Tech21 Impact Mesh Case for iPhone 5 $34.95 Incase Pro Snap Case for iPhone 5 $29.95 Belkin Grip Candy TPU Case for iPhone 4 & S $29.95 Incase Sports Armband Deluxe for 4S/4 $44.96 MICHAEL Michael Kors Essential Zip Wallet For iPhone 5 $89.95 MICHAEL Michael Kors Crossbody Case For iPhone 5 $149.95 MICHAEL Michael Kors Essential Zip Wallet For iPhone 4S $89.95 Michael Kors Wallet Clutch for iPhone 4S $79.95 Marc by Marc Jacobs Sparks Snap Case for iPhone 5 $39.95 kate spade new york Case for iPhone 5 $34.95 Speck CandyShell Case for iPhone 5 $34.95 Cables & Docks:
Apple 5W USB Power Adaptor Apple 12W USB Power Adapter Lighting to 30-pin Adapter (0.2m) Incase Mini Charger
$19.00 $19.00 $39.00 $34.95
Speakers: Bose SoundLink Bluetooth Mobile Speaker 2 $299.95 Bose SoundDock Series 3 $224.95 Bose SoundDock Series 2 $199.95 Bose SoundLink Bluetooth Mobile Speaker 2 Leather Edition $349.95 Bose SoundLink Air Digital Music System$319.95 Bose SoundDock 10 Bluetooth Digital Speaker System $539.95 iHome iHM89 Rechargeable Portable Mini Speakers $49.95 iHome iD99 Triple-Charge Dual-Alarm Stereo Clock Radio $129.95
Lighting to USB Cable (1m) $19.00 Apple 30-pin to USB Cable $19.00 Belkin Charge + Sync Dock for iPhone 5 $39.95 Belkin 30-Pin ChargeSync Cable $24.95 Belkin Car Charger $34.95 Apple Universal Dock $59.00
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Apple Buyer’s Journal
Part 2
individual Store Analysis
Pricing Beats by Dr Dre Pill Speaker $199.95 Beats by Dr Dre USB Beatbox Portable Speaker $399.95
Headphones: Apple EarPods with Remote and Mic Apple In-Ear Headphones with Remote and Mike Beats Solo HD On-Ear Headphone Artist Series (Futura) Beats by Dr Dre Wireless On-Ear Headphones Beats Solo HD On-Ear Headphone Beats Studio Over-Ear Headphones Beats Pro Over-Ear Headphones
$29.00 $79.00 $199.95 $279.95 $179.95 $279.95 $399.95
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Apple Buyer’s Journal
PART 2individual store analysis National or private brands? The dominate brand is Apple products because it is an Apple Store. Apple does carry other brands such as Michael Kors, Kate Spade, Marc Jacobs, and Speckcandy for cases and carry brands like Beats by Dr. Dre and Bose for speakers and headphones.
Visual Presentation The Apple store conveys a message of modern and high tech. When you walk into the store it is very open and bright with big windows and because the inside is mostly white. The products are displayed throughout the store on light wood tables and are grouped together by the device; example- iMac and MacBooks are placed in the same row, iPods, iPhones and iPads are grouped in their own section. The store is also very clean and well organized, it is very easy to get around and figure out where items are placed. I think the style of the store relates back to the mission statement mainly because it is a very high tech, advanced looking store and Apple in their mission statement states they are a leading company. I find the store to be very inviting, you see a chic, modern and friendly place and it draws you in no matter if you love or hate Apple.
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Apple Buyer’s Journal
PART 3marketing analysis Apple currently released a TV ad for the iPhone 5, the ad claims iPhones are the most used phones to listen to music even though Samsung is selling the most SmartPhones. Apple started with ads that stated “Think Differently” which were introducing a new way/style of computers, then Apple had iPod ads and commercials which show a black silhouette dancing with an iPod in their ear with a bright colored background to catch your attention. Then we get to iPhones and iPad commercials they demonstrate how the product is used and how east it is to use. When the iPad Mini came out Apple did a commercial with a iPad 2 and an iPad mini side by side doing the same thing, showing that the Mini does the same thing as a normal iPad, but just smaller and easy to travel with. Apple is very well known for the way they market their company and devices, some believe that is why they are so successful because they know how to get our attention. I would not change the way Apple markets to people because obviously it is still working they know how to do a TV ad, magazine/newspaper ads and online ads. They keep it simple, to the point and clean just like how their products and stores are.
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Apple Buyer’s Journal
PART 3marketing analysis Product Placement Apple products are placed a lot in popular TV Shows and movies for example Sex and The City, Carrie through out the show and movie is on her Apple laptop and the girls use iPhones in the movie as well, appealing to women. Also in cartoons like South Park, Family Guy and The Simpsons show products that are very similar to Apple products and instead of an Apple have a pear on it instead. South Park has even done two different episodes with story lines considering Apple. Apple products also make their way in reality TV shows like The Hills, The City, Bad Girls Club and Keeping Up With The Kardashians.
Austin Powers
Friends
The Simpsons
Sex and The City
South Park
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Apple Buyer’s Journal
PART 4financial analysis Financial Calendar Apple’s finanical calendar is 4-5-4
The Financial Accounting Calendar started October 2,2011 and ended September 29,2012
Financials (Quarter) in Millions 4th Quarter 3rd Quarter 2nd Quarter 1st Quarter Net Revenue $35,966 $35,023 $39,186 $46,333 increase/decrease 2.60% -10.65% -15.40% COGS $21,565 $20,029 $20,622 $25,630 increase/decrease -7.70% -2.90% -19.50% Gross Margin $14,401 $14,994 $18,564 $20,703 increase/decrease -14.00% -19.20% -10.30% Expenses $6,178 $6,170 $6,942 $7,639 increase/decrease -0.10% -11.10% -9.10% Net Income $8,223 $8,824 $11,622 $13,064 increase/decrease -6.80% -24.10% -11.00%
% Changes(5-year)
I, Derek Shaw, certify that my Apple Financial Anaylis was produced in Excel.
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Apple Buyer’s Journal
PART 4financial analysis SWOT Analysis Strengths • • • • •
Customer loyalty
Leading innovator in mobile device technology
Brand reputation
Retail stores
Marketing and advertising teams
Weaknesses • • • • •
High price Limited color choices for products Limited products Further changes in management Defects of new products
Opportunities • • • • •
High demand of iPad mini and iPhone 5 iTV launch Emergence of the new provider of application processors Growth of tablet and smartphone markets Strong growth of mobile advertising market
Threats • • • • •
Rapid technological change Google’s Android operating system BlackBerry attempt to reestablish themselves Samsung sells more smartphones than Apple With global economy in turmoil high prices will look less appealing (FY12 Annual Report)
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Apple Buyer’s Journal
PART 5perspective in conclusion :
In conclusion, Apple has done a lot for technology and the retail industry.They have given us new ways to listen and download music and to have everything we need in one device that fits in our hands. Apple started as two guys in a basement taking IOUs from companies so they could build computers, now Apple is leading the way with technology and also has the perfect retail store to draw people in no matter if they like or dislike Apple. Some reasons I think Apple is an example of “exciting retailing” is first off they always have something new coming out, it may just be a slight appearance difference or a slight thing in the device is better but, they gIve their dedicated customers what they want and that is new devices year round. Secondly when you go to an Apple store you are greeted by people who appear to be happy to help you and have answers for whatever the issue is, this is exciting to customers because they feel welcomed and secure. Also the appearance of an Apple store is very appealing to people, it is bright, good amount for space, chic but simple and you can see where everything in the store is so you aren’t searching for hours. They way Apple also markets to their customers is very exciting and sticks to how Apple as a company is. For example when the iPad Mini came out it was a simple white background, iPad 2 and the iPad mini side by side and showing the mini could do anything a normal iPad could, just smaller. Lastly I think Apple is exciting because they have all the different devices out, speakers connected to iPods or iPhones and headphones connected to iPods or iPhones; they are out for everyone to use and to experiment with so you can see if that device will be right for you . I feel Apple has grown a lot in the past few years, even though people are questioning the company because Samsung is now selling more smartphones, I believe Apple will come out with better iPhones and better technology. But, since they have such a high demand for new products to come out it is kind of hard to develop something so quickly and maybe is why the iPhone 5 was kind of a let down. Anyway Apple will find a way to wow everyone and be the number one smartphone again, they have had many ups and downs and they always find a way to come back.
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Apple Buyer’s Journal
PART 5perspective in conclusion :
If Apple is still around in ten years, I can only imagine the retail stores being very high tech, but still have the same decor, personality and design, just more advanced. I can also see Apple still having iPhones, iPods, iPads, but maybe they will stop making computers because they are the least amount sound in the company (iPhones and iPads are top sellers). But, it could always change and maybe their computers will become more popular. It is kind of hard to say exactly where Apple will be, but i’m sure they will still be around and still have devoted customers.
5 reasons why Apple will still be around in 10 years
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1
Ability to adapt to the changing nature of today’s consumers
2
Has a consistent message since its founding
3
Social responsibility
4
Premium quality that brings great customer satisfaction
5
Consumers’ brand loyalty
Apple Buyer’s Journal
WORKScited “Apple Inc. - Frequently Asked Questions.” Apple Inc. - Frequently Asked Questions. N.p., n.d. Web. 25 May 2013. “Apple Inc. - Overview.” Apple Inc. - Overview. N.p., n.d. Web. 25 May 2013. “Apple Inc. - Annual Report.” Apple Inc. - Annual Report. N.p., 31 Oct. 2012. Web. 25 May 2013. “Apple - Apple and the Environment.” Apple - Apple and the Environment. N.p., n.d. Web. 25 May 2013. “Marketing Apple: Secrets of the World’s Best Marketing Machine.” ‘Marketing Apple: Secrets of the World’s Best Marketing Machine’ N.p., n.d. Web. 25 May 2013. “Subscribe.” Apple II History. N.p., n.d. Web. 20 May 2013. “In the Beginning- Apple Reveloution.” Time.com. N.p., n.d. Web. 22 May 2013. “12 Excellent Examples Of How Apple Product Placements Rule Hollywood.” Business Insider. N.p., n.d. Web. 26 May 2013. “A SWOT Analysis of Apple.” - AAPL, BBRY, GOOG. N.p., n.d. Web. 29 May 2013. “Apple IPhone 5 vs. Samsung Galaxy S4: And the Winner Is...” LAPTOP Magazine The Pulse of Mobile Technology RSS. N.p., n.d. Web. 26 May 2013. “Android’s Jellybean VS. Apple’s IOS | Neon Tommy.” Android’s Jellybean VS. Apple’s IOS | Neon Tommy. N.p., n.d. Web. 25 May 2013.
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Apple Buyer’s Journal