BUSINESS PLAN
Name of the company: Apple Inc.
Location: Cupertino, California, United States
Creation Date: It was created on April 1, 1976. It was created by Steve Jobs, Steve
Woznaik and Ronald Wayne.
Type of company: It is a multinational company that creates and markets consumer and
electronics as well as computer software.
Brief explanation of the company´s activity: Apple Inc (formerly Apple Computers Inc),
remains to be one of the biggest brands in the world and that is thanks to their ability to
adapt and innovate because they constinuously develope products that change users
approach productivity. Apple designs, manufactures and markets smartphones, tablets,
personal computers, portable and sofware.
Number of workers: Apple had over 164,000 workers in 2022 all over the world.
Amount invested to set up company: The amount invested was $1,350 in 1976.
Products and services that the company provides: Apple's product portfolio includes
iPhone, iPad, Mac, iPod, Apple Watch, and Apple TV. It offers various consumer and
professional software applications such as iOS, macOS, iPadOS, and watchOS, iCloud,
AppleCare, Apple Pay, and accessories.
Characteristics of products and services provided: People who use these products say
that they are easy to use. It also has a beautiful design compared to others. Eventhough
they are expensive they last longer than others.
Apple releases new iPhones every single year, most people don’t feel the need to
constantly upgrade. You can easily find people who are using iPhones and other Apple
products they bought years and years ago.
Value of the products:
As long as Apple continues to innovate, there will be heightened demand for its
products and services. This leads to pricing power, expanding profit margins, and
improved cash flow, which help drive the stock price higher while also allowing Apple
to return capital to shareholders.
Marketing and publicity: Apple promotes their products through commercials and print
ads, focusing on how their products are different from competition. Comercial ads run
when a product is first launched and print ads will run throughout the products life.
Apple also promotes in their yearly keynote speech. These events are not only part of
Apple´s overall promotion but it has become part of their brand and image.
Production details: Apple's manufacturing is highly specialized. As such, there is not a
lot of data on their exact production processes, but when manufactured, they are tested
and designs are tweaked. The parts come from all over the world. A major piece of
equipment is a robotic worker, which they are getting more of. Apple's certifications are
not global, but usually in a few countries, such as the ISO 14040 in Germany.
Distribution channels: Apple has 510 stores worldwide but also sells its products
through third-party sellers and carrier providers. Apple is able to generate huge amounts
of sales through direct and indirect distribution channels worldwide.
Apple’s direct distribution channel includes their physical stores and their online store.
Apple physical stores allows them to really control their brand image and customer
perception of them. All their stores worldwide have the same clean white design with a
high employee to customer ratio. This creates a really strong brand image in consumers’
minds as they are seeing the same design everywhere they go. They also often open
their stores in high traffic locations to get as much exposure as possible. Apple also sells
directly through their website. Their website can be access from all parts of the world
and offer a huge range of languages.
Risks:
One of the risk factors for Apple investors are Macroeconomic and Industry Risks:
Apple's financial results depend significantly on global economic conditions and
adverse macroeconomic conditions, such as inflation or a recession, can adversely affect
the demand for its products.
Appoximate sales numbers: There are more than 1.2 billion iPhone users in the world as
of 2022. Over 2.2 billion iPhone units have been sold as of 2022. 56.6 million iPhone
units were sold in Q1 2022. Apple shipped 240 million iPhones in 2021 alone.
Benefits: Apple's total net sales amounted to 394.33 billion U.S. dollars in their 2022
financial year, an increase from the historical record of 274.52 billion U.S. dollars in
financial year 2020. Apple's annual revenue quadrupled in the last ten years
