Apple Inc. Naics code, 334111, Electronic Computer Manufacturing Apple® -iPad® 16GB* Tablet
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- Mercyhurst University February 13, 2013 Apple iPad 1 st Generation 16GB
- Part Two: Situational (3Cs) Analysis a. Apple iPad 1 st Generation Marketing Mix Product – Apple iPad 1
- Table 1 . Price
- Top 3 Competitors: Samsung Galaxy Tab, BlackBerry PlayBook, and HP Slate 500
- Identify the segment and category for your product.
- (ARTICLE ATTACHED)
- Financial history of the Apple Inc.
- Table 3
- Fiscal Year 2010 2011 2012
- 3. Write a description of the industry. Your industry description must include, but is not limited to the following
Apple iPad 1st Generation 16GB Apple Inc. NAICS Code, 334111, Electronic Computer Manufacturing Apple® -iPad® 16GB* Tablet (1st Generation) Model: MC349LL/A ǀ SKU: 9811424 Group 2 Ladorise Bedard-Webb, Mersadees Henry, Kevin Muvunyi, Thi Pham, Megan Steele, Whitney Wang Mercyhurst University February 13, 2013 Apple iPad 1st Generation 16GB The Apple iPad 1st Generation 16GB is a convenient tablet that can be used for a number of different functions. It was built “using incredible ingenuity in structure and design and solid components to create a reliable and desirable piece of hardware,” when it came out in 2010 (Allen, 102). We chose to research this product for a variety of different reasons:
References Allen, J. (2012). Using The Ipad for Profit and Fun in Family Law Practice. American Journal of Family Law, 26(2), 102–109. Apple in Education - iPad makes the perfect learning companion. (2012). Retrieved December 13, 2012, from http://www.apple.com/education/ipad/ Apple Inc. | Company Profile from Hoover’s. (2012). Retrieved December 13, 2012, from http://www.hoovers.com/company-information/cs/company-profile.Apple_Inc.4c9baa063908dbd8.html Bond, P. (2012). Apple Becomes the Most Valuable Company in History - The Hollywood Reporter. Retrieved December 13, 2012, from http://www.hollywoodreporter.com/news/apple-most-valuable-company-history-624-billion-364125 Part Two: Situational (3Cs) Analysis a. Apple iPad 1st Generation Marketing Mix
The iPad is a tablet computer developed by Apple. The iPad “lets users browse the web, read and send emails, enjoy and share photos, watch HD videos, listen to music, play games, read ebooks and much more” (Apple - Press Info - iPad…). The iPad had been “described by some as a cross between the iPhone and a MacBook laptop” (What is the iPad…). Apple’s CEO at the time, Steve Jobs, mentions how the “’iPad connects users with their apps and content in a far more intimate and fun way than ever before’” (Apple - Press Info - iPad…). According to Ross Catanzariti, the iPad 1st Generation is 9.7 inches in display size with a display resolution of 1024 x 768 pixels; its processor is the Apple A4 (1GHz), RAM is 256 MB; battery life up to 10 hours. (1). It does not include rear or front cameras. As for internal memory, the focus is on the 16 GB iPad 1st Generation. More features about this product can be seen in Table 1.
The price of the Apple iPad 1st generation varies base on how much internal memory you want with it. Today, the value of the first generation iPads had decreased due to the introduction of the newer versions of this product – iPad 2 in 2011, iPad 3 in 2012, and the iPad mini a couple months afterwards. Due to the advancements based off the first iPad, not many stores are selling the iPad 1st Generations anymore. However, when the first iPad was released in April 3 2010, Apple retail stores offered their prices and other retailers offered slightly different prices compared to what Apple stores. These prices are listed below. Apple.com (2010 prices) 16 GB: $499 32 GB: $599 64 GB: $699
When the iPad 1st Generation was released in April 3 2010, it was only purchasable in “all 221 US Apple® retail stores and most Best Buy stores” (What is the iPad…). After some time, stores like Wal-Mart and Target started selling iPads. And even stores around the world started selling them after the release date. However, nowadays, due to the creation of iPad 2, iPad 3, and the iPad Mini, apple.com is no longer selling 1st Generation iPads. Online stores like Amazon and eBay still might be selling them but at a cheaper price compare to what they were worth in 2010.
The iPad 1st Generation was promoted through commercials and advertisements. These ways of promoting the 1st Generation of iPads were important because Apple was introducing a tablet for the first time ever. They even had Apple CEO of the time, Steve Jobs, do many talk shows about the product so that many people will understand the product. Top 3 Competitors: Samsung Galaxy Tab, BlackBerry PlayBook, and HP Slate 500 *These are the top three competitors of the Apple iPad 1st Generation in 2010 Samsung Galaxy Tab
BlackBerry PlayBook
HP Slate 500
Table 1: Comparison between Apple iPad 1st Generation, Samsung Galaxy Tab, BlackBerry PlayBook, and HP Slate 500
b. What need the product solves for the consumer Portable computers have revolutionized the way that people live their lives. They are able to carry with them an unlimited supply of knowledge wherever they go. The world is at their fingertips. The iPad has been a major component to this new, modern lifestyle. Not only does the iPad provide its users with a vast array of information on the go, it also contains apps for entertainment, education, and business purposes. The iPad is extremely beneficial because it aids in the education process. Students are able to access textbooks different from the average classroom textbook. Textbooks on the iPad have the potential to contain pictures that are interactive with its readers, as well as movable, three dimensional graphics to aid in the learning process. By using a textbook on the iPad, a student has the power to instantly look up a definition to any word that they come across. Furthermore, these textbooks are cheaper than printed textbooks and have the luxury of being more updated (Apple in Education). Students can learn the most recent information that is being learned by using their online textbooks. Educational apps on the iPad also have changed the world of learning. There are over 20,000 apps designated specifically for educational purposes. These apps can help a student study and track their assignments. It is an efficient way for students to stay organized and take notes (Apple in Education). Organization is vital for the learning processes of students everywhere. The iPad helps students experience knowledge in a newer and more effective way. Other aspects of the iPad also aid in education. iWork is a tool used by both teachers and students that contains Pages, Keynote, and Numbers. These programs can be used for a number of different classroom elements such as creating tables, charts, animations, and spreadsheets. iWork can be used in many different ways to aid in the learning process. The iPad has been successful for teachers as well. Teachers can use the iPad to display their notes, images, videos, and webpages to their students as teaching tools (Apple in Education). In this way, the iPad benefits both teachers and students. The iPad also helps businesses and business actions function more smoothly. The iPad contains thousands of apps for business purposes that help with a number of activities and services. Business workers can create and exhibit presentations using the iPad. They also can communicate with partners for meetings. Furthermore, these apps give people the power to create spreadsheets, charts, diagrams, and tables to display the different aspects of how a company may be doing. Another important feature of the iPad is that it is portable and therefore, can be taken anywhere. One can always be connected to the people and information that they need to be (Apple iPad in Business). Brian Spearman, the Senior Vice President of PepsiCo North American Beverages, stated that, “We think iPhone and iPad technology is absolutely a game-changer for us, both in terms of communication and service and in productivity” (Apple iPad in Business). The iPad makes business more efficient and effective. The iPad also has a number of apps for entertainment. Games can be played on the high-quality touch screen for ultimate entertainment. The iPad also has access to the internet for quick facts and knowledge for on-the-go questions. It can be used for e-mailing, listening to music, playing games, looking at pictures and videos, and reading (Form 10-K, 2011). The iPad can provide one with the entertainment that they desire wherever they are.
Apple divides its market into a number of different segments. Apple Inc. is in the Electronic Computer Manufacturing industry. Personal computers, laptops, desktops, and servers are manufactured in this industry (US Census Bureau, 2012). Apple’s personal computers were the first to be produced and were the first to make personal computers that were made for everyone, not just professionals (APPLE COMPUTER, INC., 2003). The iPad is in the portable computer segment of that industry (Computer Manufacturing in the US Market Research | IBISWorld, 2003). These products are manufactured for individuals, businesses, and government for educational, personal, and scientific reasons (Apple inc., 2003). The industry targets professionals, businesses, people seeking entertainment, and middle class to upper class families.
Industry – US Computer Manufacturing 334111, Electronic Computer Manufacturing Segment –Portable Computers Product – Apple iPad 1st Generation 16GB (US Census Bureau, 2012). d. Summarize a recent news story about your product (the news story must be attached as an addendum to your paper) In March 2013, Apple has been rumored to be releasing a new 5th generation iPad. This iPad will have some of the same features as the iPad mini. While the 4th generation iPad only has been out for one month, this would mean a shortened life cycle for Apple products. New versions of the iPad have been released every several months and this would be no different. The new product is said to have Retina Display and dimensions that are 4mm shorter in height, 17mm shorter in width, and 2 mm shorter in depth than the current iPad. The 5th generation iPad will be similar to the 4th generation iPad but will be smaller and lighter (Fresh iPad rumor: Thinner, lighter version due in March, 2012). (ARTICLE ATTACHED) http://news.cnet.com/8301-13579_3-57560694-37/fresh-ipad-rumor-thinner-lighter-version-due-in-march/ Brief History of the Company Apple, Inc. was originally Apple Computer, Inc. until January 9, 2007 (Honan, 2007). It is a multinational corporation that was established in Cupertino, California. It was established in 1976 and has been booming ever since. The name of the Corporation changed because Apple, Inc. transitioned from selling Apple I computers to a chain of electronics such as tablets, mobile phones, and media players (“Apple,” 2008). The company also offers a variety of software programs and Apple, Inc. has 390 stores across 10 countries and if you include online stores the total expands to 88 countries (Apple Appraisal Magazine 2010). This expansion allows the company to have a diverse target market. Apple, Inc. targets consumers in education, government, and business. Table 2: Apple’s Segmentation Strategy 
Financial history of the Apple Inc. Apple has been a leader and innovator in the world of technology since it busted onto in scene in 1976, when founder Steve Jobs, Steve Wozniak, and investor Ronald Wayne planned to sell the Apple 1. When the company began Jobs and Wozniak both owned 45% of the company and Wayne owned 10%. However, fearing the instability of funding a new company Wayne sold his share to Jobs and Wozniak for $800, today Wayne’s share would have been worth over 3 billion dollars. The technology company has been steadily growing and (despite low sales and market shares in the early 1990’s) has become the largest publicly traded corporation in the world by market capitalization, being valued at over 600 billion dollars (Dougherty, 2010). Between the years 2010 and 2012 Apple has made over 300 billion dollars in net sales, as seen in Table 3 below (Apple, 2012): Results of Operations - (In $ millions, except shares in thousands, per share amounts)
Table 3: Apple’s 3-year Sales Apple has been able to create so much revenue because the groundbreaking and state-of-the-art products that ranges from phones, to computers, to tablets. Figure 1 below shows some of the products that are made by Apple, as well as how much each product has made between 2010 and 2012. Figure 1: Apple Product Total Revenues 3. Write a description of the industry. Your industry description must include, but is not limited to the following: a. Three year sales history for the industry and segment. You must include both a graph and table that depicts this information in your paper. The Computer Manufacturing industry is a very large industry in the US as it generates billions of dollars in revenue each year. Statistics show that the number of people in the US that have at least one computer increased 7.5% from 2007 to 2012. However, despite the fact that demand for computers has increased, the industry revenue dropped rapidly during the three-year period from 2010 to 2012. As computers have become popular and almost everyone has at least one computer, intense price competition is one of the reasons that make the industry profit continue to fall. The success of tablet market after the Apple introduced its first tablet, to consumers is another reason. The computer manufacturing companies in the US now have to focus more on something else like server systems and IT services. The following table and graph show the three-year sales history of the Computer Manufacturing industry (IBISWorld). Table 4: Sales history of Computer Manufacturing Industry in the US
Figure 2: Sales History of Computer Manufacturing Industry in the US (IBISWorld) b. Using supporting data (i.e., graphs, tables, or charts), you must analyze and elaborate whether the industry and segment are growing, shrinking, or are stagnant. Also state and defend whether the industry and segment growth/loss is accelerating or slowing. The sales history of the Computer Manufacturing industry shows that the industry has been shrinking in recent years. The revenue was about $43,770 million and $41,340 million in 2010 and 2011, respectively. In 2012, it went down to approximately $36,750 million. One of the reasons that make the profit continue to fall is because of price competition as computers have become popular nowadays. Another reason is the success of Apple since this company launched its new product, the first-generation iPad, in 2010. Other companies then quickly produced their own tablets, which have made tablets have a great impact on the market. However, all tablets are manufactured abroad. This problem does not bring any benefits to the industry’s financial performance and the tablets also become more competitive compared to the products manufactured in the US. Many manufacturing companies also produce their products abroad to lower their labor costs. The industry seems to continue shrinking, but with a much lower speed since many computer manufacturing companies in the US have started focusing on and investing in their computer server systems and services more. The industry revenue is also expected to slightly grow up in 2013 and 2014 as described in the chart below (IBISWorld). Figure 3: Percentage Change in Sales in the Computer Manufacturing Industry c. Name the top three competitors in your product’s industry and segment. Top Three Competitors in the Industry Based on the companies’ revenue, the top three computer manufacturing companies in the US were Hewlett-Packard (HP), Dell, and IBM in 2010 and 2011. In 2012, IBM was no longer in the list as it was replaced by Apple and went down to the fourth place. Also in 2012, HP, Apple, and Dell are the top three companies in the Computer Manufacturing industry based on their market share. Figure 4: Top 3 Competitors in the Computer Manufacturing Industry Based on Revenue Figure 5: Top Computer Manufacturing Companies in US Based on Market Share in 2012 (IBISWorld) References “1984” Apple Macintosh Commercial (Full advert, Hi-Quality) - YouTube. (n.d.). Retrieved January 17, 2013, from http://www.youtube.com/watch?v=HhsWzJo2sN4 Ackerman, D. (n.d.). Is the HP Win 7 slate already dead? CNET. Retrieved January 16, 2013, from http://news.cnet.com/8301-17938_105-20003790-1.html Apple, Inc. (Segmentation Strategy). (n.d.). Retrieved January 17, 2013, from http://yousigma.com/benchmarking/applessegmentationstrategy.html Apple - Press Info - iPad Arrives This Saturday. (n.d.). Retrieved January 13, 2013, from http://www.apple.com/pr/library/2010/03/29iPad-Arrives-This-Saturday.html Apple in Education - iPad makes the perfect learning companion. (n.d.). Retrieved January 16, 2013, from http://www.apple.com/education/ipad/ Apple iPad in Business. (n.d.). Retrieved January 16, 2013, from http://www.apple.com/ipad/business/ APPLE COMPUTER, INC. (2003). Retrieved January 16, 2013, from http://www.credoreference.com/entry/encyccs/apple_computer_inc Apple inc. (2003). Retrieved January 16, 2013, from http://www.businessteacher.org.uk/free-business-essays/apple-inc.php Apple Inc. - Financial History. (n.d.). Retrieved January 17, 2013, from http://investor.apple.com/financials.cfm Buy 4G LTE BlackBerry PlayBook - Tablet PC Price - US. (n.d.). Retrieved January 13, 2013, from http://us.blackberry.com/playbook-tablet/where-to-buy.html Catanzariti, R. (n.d.). iPad vs. iPad 2: We compare Apple’s two tablets. PC World. Retrieved January 13, 2013, from http://www.pcworld.idg.com.au/article/378714/ipad_vs_ipad_2_we_compare_apple_two_tablets/ Computer Manufacturing in the US Market Research | IBISWorld. (2003). Retrieved January 16, 2013, from http://www.ibisworld.com/industry/default.aspx?indid=740 Dougherty, M. (n.d.). A Brief History of Apple, Inc. Retrieved January 17, 2013, from http://www.brighthub.com/computing/mac-platform/articles/65346.aspx Form 10-K. (2011). Retrieved January 16, 2013, from http://www.sec.gov/Archives/edgar/data/320193/000119312511282113/d220209d10k.htm Fresh iPad rumor: Thinner, lighter version due in March. (2012). CNET. Retrieved January 12, 2013, from http://news.cnet.com/8301-13579_3-57560694-37/fresh-ipad-rumor-thinner-lighter-version-due-in-march/ Galaxy Tab: Android Tablet, Digital Electronic Book Reader & More | Samsung Galaxy Tab. (n.d.). Samsung Electronics America. Retrieved January 13, 2013, from http://www.samsung.com/us/article/do-more-on-the-go-with-the-galaxy-tab- Hiner, J. (n.d.). iPad competitors: The top 20 to watch [UPDATED] | TechRepublic. Retrieved January 13, 2013, from http://www.techrepublic.com/blog/hiner/ipad-competitors-the-top-20-to-watch-updated/6460 Honan, M. (2007, January 9). Apple drops “Computer” from name | Macworld. Macworld. Retrieved January 17, 2013, from http://www.macworld.com/article/1054770/applename.html HP Slate 500. (n.d.). Www.findthebest.com. Retrieved January 16, 2013, from http://tablets.findthebest.com/l/19/HP-Slate-500 IBISWorld. (2012). IBISWorld Industry Report 33411a Computer Manufacturing in the US. Number of Apple stores worldwide from 2005 to 2012 | Statistic. (n.d.). Retrieved January 17, 2013, from http://www.statista.com/statistics/192067/number-of-apple-stores-worldwide-since-2005/ Ridden, P. (n.d.). BlackBerry PlayBook tablet gets price and release date. Retrieved January 13, 2013, from http://www.gizmag.com/rim-announces-pricing-and-availability-information-for-playbook-tablet/18197/ Samsung Galaxy Tab preview. (n.d.). Engadget. Retrieved January 13, 2013, from http://www.engadget.com/2010/09/02/samsung-galaxy-tab-preview/ Snapshot. (n.d.). Retrieved from http://us.blackberry.com/playbook-tablet/where-to-buy.html The Origin of Apple | Apple’s Story of Origin | Apple’s History | The origin of Companies | TheOriginOf.com. (n.d.). Retrieved January 17, 2013, from http://www.theoriginof.com/apple.html Trijot. (n.d.). Apple iPad vs Blackberry Playbook, the BlackPad. Technolism. Retrieved January 16, 2013, from http://www.technolism.com/apple-ipad-vs-playbook-the-blackberry-blackpad-which-is-the-best.html US Census Bureau. (2012). US Census Bureau Site North American Industry Classification System main page. Retrieved January 16, 2013, from http://www.census.gov/cgi-bin/sssd/naics/naicsrch?code=334111&search=2012%20NAICS%20Search What is the iPad, and what does it do? - Boston.com. (n.d.). Retrieved January 13, 2013, from http://www.boston.com/business/technology/gallery/ipaddetails/ Directory: 2014 2014 -> For want of a nail 2014 -> The Global Warming that Wasn’t 2014 -> Assembly, No. 3901 state of new jersey 216th legislature 2014 -> Stop Militarizing Law Enforcement Act of 2014 2014 -> Ihbb asian Championships 2014 middle school bowl Round 4 First Quarter 2014 -> Unit: Automotive and Auto Body 2014 -> Ihbb european Championships 2014 Bowl Round 4 First Quarter 2014 -> International History Bee and Bowl 2013-14 Asian Division Question Set Bowl Round Six 2014 -> United states patent and trademark office 2014 -> Walnut creek, ca branch executive committee meeting minutes Download 137.4 Kb. Share with your friends:
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