Dr.

Babasaheb Ambedkar Marathwada University

Chhatrapati Sambhajinagar.
In partial fulfillment of the degree DBM of Research Project.
M. S. P. Mandal’s

Deogiri College, Chhatrapati Sambhajinagar.

Project Report

Title project

Submitted By

……………………………………….. D.B.M II Semister.

2022-2023

Under Guidance

Prof. Dr. Vasundhara Maturkar Prof. Dr. Ratnaparkhe S.D.

M.com. B. D.Ph.D M.com, M.B.A., NET,
G.D.C&A., L.L.B., Ph.D.
(H.O.D. (P.G.) & Co-
-Ordinator)
Department Of Commerce.
 CERTIFICATE

This is to certified that this,

Title project
Is the bonafide work of,
Name. … .. … .. … ..

Exam Seat No: ,

She/he carried out the research under my supervision certified further, that to
the best of my knowledge the work reported herein is completed as per the
requirements of Dr. Babasaheb Ambedkar Marathwada University,chh.sambhajinagar
in partial fulfillment of the degree DBM a subject of Research Project in Commerce
the Academic year 2022-2023.

Signature Of The Guide H.O.D (P.G.) & Co-Ordinator

P.G Studies.

Internal Guide External Guide

 Declaration

I name of student… . … … .

Student of the DBM studying in Deogiri College, chh. Sambhajinagar, solemnly declare that the
project

Title

Was carried out by me in partial fulfillment of Master’s Degree of DBM a subject of

Research Project Program under the Dr. Babasaheb Ambedkar Marathwada University,
chhatrapti.sambhajinagar.

This project was undertaken as part of academic curriculum as per university rules and
norms and by no commercial interest or motive. It is my original work and not elsewhere for
any other purpose earlier.

Place : chhatrapati sambhajinagar. Signature

Date : / / 2023
 Acknowledgment

“Gratitude is not things of expression; it is more a matter of feeling.” There is always a

sense of gratitude which one express for other for their help and supervisor in achieving the
goals.
I too express my deep gratitude to each and every one who has been helpful me in
completing the project report successfully.

First, of all, I am highly thankful to Prof. Dr. S. D. Ratnaparkhe, Prof. Dr.Vasundhara

Maturkar , for allowing me to pursue my project

My special thanks to . Prof. Kharat N.G.. who encouraged me, properly guided me in each and
every possible way throughout my projects reports.
I also give my regard and sincere thanks to who has devoted their precious time in guiding me
and helping me with it in time.

Sign

Seat No:
TABLE OF CONTENT

Sr.No Particulars Page No

1 Introduction 2

2 Review Of Litterature 23

3 Company Profile 25

4 Research Methodology 77

5 Data Analysis 95

6 Findings 106

7 Conclusion 108

8 Bibliography 109

5
INTRODUCTION
Customer satisfaction means taking complete care of customer by giving them complete
knowledge about the product and about all the feature of that particular product Customer
satisfaction is the end result of your interaction with the customer .By giving the best
customer service and making sure that the customer was given the best resolution at the end
of the call, then we can say that the customer is satisfied even if it’ snot verbally said.
According to me customers are those who pay (salary). Satisfaction is the key tohold the
customer for future business. Complete knowledge must be given; each and every query must
be clarified by the seller. If a customer remembers you for future business then we can say
that customer is satisfied.

DEFINITION :

According to Harold E Edmondson “Customer satisfaction” is defined as “the

Number of customers, or percentage of total customers, whose reported experience with
afirm, its products, or its services (ratings) exceeds specified satisfaction goals.”

Customer satisfaction is defined by whether the customer chooses to do business with you or
your company in the future. Many factors play a role in customer satisfaction, including
customer service, product quality and the ease of doing business .Companies must consider
customer satisfaction as an important role in the lifetime value of a customer. The main aim
of marketing is meet and satisfy target customers need and wants buyer behaviour refers to
the peoples or organization conduct activities and together with the impact of various
influence on them towards making decision on purchase of product and service in a market.
The field of consumer behaviour studies how individuals, groups and organization select,
buy, use and dispose of goods, service, ideas, or experience to satisfy their needs and desire
sunder standing consumer behaviour and knowing customer are never simple. The wealth of
products and service produced in a country make our economy strong. The behaviour of
human being during the purchase is being termed as “Buyer Behaviour”. Customer says one
thing but do Another. They may not be in touch with their deeper motivations. They are
responding to influences that change their mind at the last minute. A buyer makes take a
decision whether save or spend the money.

6
Buyer Behaviour:

Buyer behaviour is “all psychological, Social and physical behaviours of potential

Customers as they become aware of evaluate, purchase, consume and tell others about
product & service.

There are following five stages in consumer buying decision process.

1. Problem identification:
The buying process starts when the buyer recognizes a problem or need. The need can
betriggered by internal or external stimuli. Marketers need to identify the circumstances
thattrigger a particular need. By gathering information from a number of
consumers,Marketers can identify the most frequent stimuli that spark an interest in a
productcategory. They can then develop marketing strategies that triggerconsumer interest.

2. Information Search:
The consumer tries to collect information regarding various products/service. Through
gathering information, the consumer learns about completing brands and their features.
Information may be collected form magazines, catalogues, retailers, friends, family members,
business association, commercial, chamber of commerce, telephone directory, trade fair
etc .Marketers should find out the source of information and their relative degree of
importance the consumes. Personal Sources: Family, friends, neighbour, as quittances.
Commercial Source: Advertising, sales persons, dealers, packaging, displays .Public sources:
mass media, consumer, rating organizations. Experimental sources : Handling. Examine,
using the product.

3. Evaluation of alternative:
There is no single process used by all consumers by one consumer in all buying situations.
There is several First, the consumer processes, some basic concepts are: First, the consumer
is trying to satisfy need. Second, the consumer is looking for certain benefits from the
product solutions. The marketer must know which criteria the consumer will use in the
purchase decision.

7
 4. Purchase:
From among the purchase of alternatives the consumer makes the solution. It may be to buy
or not to buy. If the decision is to buy. The other additional decisions are :Which types of
bike he must buy? From whom to buy a bike How the payment to be made? And so on. The
marketer up to this stage has tried every means to influence the purchase behaviour, but the
choice is properly consumers. In the evaluation stage the consumer forms preferences among
the brands in the choice set. The consumer may also form an intention to but the most
preferred brand.

5. Post Purchase Evaluation:

After purchase the product, the consumer will experience the same level of product. The
Marketer’s job not end when the product is buying must monitor post-purchase satisfaction,
post purchase action, post-purchase use and disposal.

8
What is a financialstatement?

The term financial statement refers to statement of Changes in financial position, Statement
of Retained Earnings, Balance Sheet, Profit and Loss Account, etc. But, generally, the
financial statements include only two statements; they are profit and Loss Account and
Balance Sheet. It is observed that the mere presentation of these statements does not serve the
purpose of anybody in anyway. The importance of these statements lies in their analysis and
interpretation. In the beginning, analysis was done only for extending credit, but now it is
being used as most important function of Management Accountant for providing various
useful information to many persons.Some of the schedules are prepared and submitted along
with the financial statements for meaningful presentation. Such schedules are schedule of
fixed assets, schedule of debtors, schedule of creditors, schedule of investments and the like.

Nature of Financial Statements

Generally, financial statements are prepared in order to disclose the financial position of
business concerns at a point of time and also operating results during the period under review.
The interested parties of the financial statements are thinking that the values shown in the
financial statements to be real and absolute. But, this is not correct understanding. The values
shown in the financial statements never convey the current or economic values. The data
shown in the financial statements are greatly affected by the following facts.

1. Recorded Facts: All the business transactions which are having financial character alone
recorded in the books of accounts (Journals, Ledger and other Subsidiary Books). Such
recorded information are used for preparing financial statements. After some gradual passage
of time, these recorded information become historical in nature. Besides, the financial
statements areshowing results of the various transactions which are taken place at various
dates.There is no place for their current value in the financial statements which is neither
justified nor logical.

2. Accounting Conventions: There are four types of accounting conventions. They are
convention of conservatism, convention of full disclosure, convention of consistency and

9
convention of materiality. These are used for valuation of raw materials, stock of finished
goods,debtors and the like. Many companies does not follow same pattern of conventions
throughout its life. Hence, the financial statements fail to satisfy the essential elements of
comparison.

3. Postulates: There are some postulates and assumptions just like accounting concepts and

conventions. Such postulates and assumptions are used for preparing. financial statements. In

other words, the conventions used in financial statements are based on certain postulates. It is

assumed that the purchasing power of money is constant for all the period. Hence, the

management accountants are recording all the business transactions in rupee value on
different dates without making any distinction between the rupee value of two dates.

4. Personal Judgement: Personal judgement plays a vital role in the preparation of

financial records and financial statements. The management accountants may use their
judgement in choosing the method of valuation of closing inventory, in calculating the
provision for bad debts and in choosing the method of charging the depreciation of fixed
assets. Likewise, the application of various accounting concepts and conventions depends
upon the personal judgement of the management accountant. Therefore, different meaning
and results can be obtained from the financial statements of the same company. Based on the
different results, different recommendations may be provided for the growth and
development of a business concern.

Features of Financial Statements

The important features of financial statements are as follows.

1. Financial Statements are prepared at the end of the accounting period.

2. Financial Statements disclose both facts and opinions.

3. Financial statements are prepared on the going concern value..

4. Financial statements are recorded facts of financial transactions based on historical cost.

5. Financial statements are greatly affected by personal judgement of the accountants.

Objectives of Financial Statements

10
The different types of people are using the financial statements. They need different types of
information. Hence, the main objective of financial statements is fulfilling the needs of such

people. Even though, some other objectives are briefly explained below.

1. To provide an accurate and reliable financial information about the resources and usage in
a business unit within the stipulated time.

2. To provide overall changes made in the financial information relating to resources and
usage for a particular period.

3. To provide accurate and reliable financial information relating to net changes made
between resources and usage for a particular period arising out of business activities.

4. To provide financial information which are helping the top management for estimating
earning potential of business.

Meaning of Analysis

Analysis means the process of splitting or broken up of the contents of financial statements
into many parts for getting meaningful information at the maximum.

Meaning of Interpretation

Interpretation means explaining the meaning and significance of the rearranged and/or
modified data of the financial statements.

Procedure for Analysis and Interpretation

To make an effective analysis and interpretation of financial statements, the following

groundwork are required to be completed.

1. The objectives of financial statement analysis is the basis for the selection of techniques of

analysis. Hence, the organization should decide the purpose of financial statement analysis.

2. The extent of interpretation is also decided to select right type of techniques of financial

statement analysis.

3. The financial statements are prepared on certain assumptions, principles and practices
which are ascertained to understand their significance.

11
4. Additional information required for the work of interpretation should be collected properly.

5. The collected data should be presented in a logical sequence by rearrangement of data.

6. Data should be analyzed for preparing comparative statement, common size statement,
trend percentage, calculation of ratios and the like.

7. General market conditions and economic conditions are taken into consideration for
analyzing and interpreting the collected facts.

8. Interpreted data and information should be presented in a suitable report form.

Objectives of Analysis and Interpretation

Many interested parties of financial statements are analysed and interpreted according to their

varied objectives. In spite of the variations in the objectives of analysis and interpretation by

various classes of people, there are some common objectives of interpretation which are

presented below.

1. To examine the earning capacity and efficiency of various business activities with the help

of income statements.

2. To measure the managerial efficiency under various business situations.

3. To estimate the performance evaluation of different departments over a period of time.

4. To measure short term and long term solvency position of the business organization with

the help of Balance Sheet.

5. To examine the source of finance and way of utilizing the available finance.

6. To determine earning capacity and future prospects of the business concern.

7. To identify the way of utilizing fixed assets and the role of fixed assets on maintaining the

earning capacity of the business concern.

8. To investigate the future potential of the business concern.

9. To compare operational efficiency of similar concerns engaged in the same industry.

10. To identify the growth trend of the business organization.

12
Importance of Analysis and Interpretation

All the quantitative information i.e. financial accounting information are intelligibly analyzed

and interpreted so that significant facts and relationship concerning various aspects of
financial life of a business concern is known to everybody. In this way, various factors have
increased the importance of the analysis and interpretation of financial statements.

1. Wrong and defective decisions are taken by the top management in the absence of analysis

and interpretation.

2. Sometimes, hasty and intuitive decisions are also taken by the various responsible
executives.

3. Everybody has limited experience in business activities. Hence, one can easily understand
the complexities of business activities through analysis and interpretation.

4. If any decision is taken on the basis of intuition or conclusion derived, there is no meaning
in decision and nobody understands the decision. In other words, if the decisions are based on
scientific analysis and interpretation, everybody understands the decision very easily.

5. Analysis and interpretation are necessary to verify and examine the correctness and
accuracy of the decisions already taken on the basis of intuition Financial statement analysis
(or financial analysis) is the process of reviewing and analyzing a company's financial
statements to make better economic decisions. These statements include the income
statement, balance sheet, statement of cash flows, and a statement of changes in equity.
Financial statement analysis is a method or process involving specific techniques for
evaluating risks, performance, financial health, and future prospects of an organization.
“Analyzing financial statements,” according to Metcalf and Titard, “is a process of evaluating
the relationship between component parts of a financial statement to obtain a better
understanding of a firm’s position and performance.” In the words of Myers, “Financial
statement analysis is largely a study of relationship among the various financial factors in a
business as disclosed by a single set-of statements and a study of the trend of these factors as
shown in a series of statements.”

Users of Financial Statement Analysis

There are a number of users of financial statement analysis. They are:

13
 Creditors: Anyone who has lent funds to a company is interested in its ability to pay back
the debt, and so will focus on various cash flow measures.

 Investors: Both current and prospective investors examine financial statements to learn
about a company's ability to continue issuing dividends, or to generate cash flow, or to
continue growing at its historical rate

 Management: The company controller prepares an ongoing analysis of the company's

financial results, particularly in relation to a number of operational metrics that are not seen
by outside entities (such as the cost per delivery, cost per distribution channel, profit by
product, and so forth).

 Regulatory authorities: If a company is publicly held, its financial statements are examined
by the Securities and Exchange board to see if its statements conform to the various
accounting standards.

 Others:

 Bankers and financial institutions

 Employees.

 Government.

 Trade associations.

 Economists and researchers.

 Taxation authorities

Methods of Financial Statement Analysis:

There are two key methods for analyzing financial statements.

The first method is the use of horizontal and vertical analysis. Horizontal analysis is the
comparison of financial information over a series of reporting periods, while vertical analysis
is the proportional analysis of a financial statement, where each line item on a financial
statement is listed as a percentage of another item. Typically, this means that every line item
on an income statement is stated as a percentage of gross sales, while every line item on a
balance sheet is stated as a percentage of total assets. Thus, horizontal analysis is the review

14
of the results of multiple time periods; while vertical analysis is the review of the proportion
of accounts to each other within a single period.

The second method for analyzing financial statements is the use of many kinds of ratios. You
use ratios to calculate the relative size of one number in relation to another. After you
calculate a ratio, you can then compare it to the same ratio calculated for a prior period, or
that is based on an industry average, to see if the company is performing in accordance with
expectations. There are several general categories of ratios, each designed to examine a
different aspect of a company's performance. The general groups of ratios are:

 Liquidity ratios. This is the most fundamentally important set of ratios, because they
measure the ability of a company to remain in business.

 Cash coverage ratio. Shows the amount of cash available to pay interest.

 Current ratio. Measures the amount of liquidity available to pay for current liabilities.

 Quick ratio. The same as the current ratio, but does not include inventory.

 Liquidity index. Measures the amount of time required to convert assets into cash.

 Activity ratios. These ratios are a strong indicator of the quality of management, since they
reveal how well management is utilizing company resources.

 Accounts payable turnover ratio. Measures the speed with which a company pays its

suppliers.

 Accounts receivable turnover ratio. Measures a company's ability to collect accounts

receivable.

 Fixed asset turnover ratio. Measures a company's ability to generate sales from a

certain base of fixed assets.

 Inventory turnover ratio. Measures the amount of inventory needed to support a given

level of sales.

 Sales to working capital ratio. Shows the amount of working capital required to support

a given amount of sales.

15
 Working capital turnover ratio. Measures a company's ability to generate sales from a

certain base of working capital.

 Leverage ratios. These ratios reveal the extent to which a company is relying upon debt

to fund its operations, and its ability to pay back the debt.

 Debt to equity ratio. Shows the extent to which management is willing to fund

operations with debt, rather than equity.

 Debt service coverage ratio. Reveals the ability of a company to pay its debt

obligations.

 Fixed charge coverage. Shows the ability of a company to pay for its fixed costs.

2. Profitability ratios. These ratios measure how well a company performs in generating a

profit..

 Breakeven point. Reveals the sales level at which a company breaks even.

 Contribution margin ratio. Shows the profits left after variable costs are subtracted

from sales.

 Gross profit ratio. Shows revenues minus the cost of goods sold, as a proportion of sales.

 Margin of safety. Calculates the amount by which sales must drop before a company

reaches its breakeven point.

 Net profit ratio. Calculates the amount of profit after taxes and all expenses have been
deducted from net sales.

 Return on equity. Shows company profit as a percentage of equity.

 Return on net assets. Shows company profits as a percentage of fixed assets and working
capital.

 Return on operating assets. Shows company profit as percentage of assets utilized.

Problems with Financial Statement Analysis

16
While financial statement analysis is an excellent tool, there are several issues to be aware of
that can interfere with your interpretation of the analysis results. These issues are:

 Comparability between periods. The company preparing the financial statements may have

changed the accounts in which it stores financial information, so that results may differ from

period to period. For example, an expense may appear in the cost of goods sold in one period,

and in administrative expenses in another period.

 Comparability between companies. An analyst frequently compares the financial ratios of

different companies in order to see how they match up against each other. However, each

company may aggregate financial information differently, so that the results of their ratios are

not really comparable. This can lead an analyst to draw incorrect conclusions about the
results of a company in comparison to its competitors.

 Operational information. Financial analysis only reviews a company's financial

information, not its operational information, so you cannot see a variety of key indicators of
future performance, such as the size of the order backlog, or changes in warranty claims.
Thus, financial analysis only presents part of the total picture.

Some of the others important limitations of financial analysis are, however, summed up as

below:

 (i) It is only a study of interim reports

 (ii) Financial analysis is based upon only monetary information and non-monetary factors

are ignored.

 (iii) It does not consider changes in price levels.

 (iv) As the financial statements are prepared on the basis of a going concern, it does not

give exact position. Thus accounting concepts and conventions cause a serious limitation

to financial analysis.

 (v) Changes in accounting procedure by a firm may often make financial analysis

misleading.

17
 (vi) Analysis is only a means and not an end in itself. The analyst has to make

interpretation and draw his own conclusions. Different people may interpret the same

analysis in different ways.

Techniques to use to analyze your financial statements:

Trend analysis:

Trend analysis is also called time-series analysis. Trend analysis helps a firm's financial
manager determine how the firm is likely to perform over time. Trend analysis is based on
historical data from the firm's financial statements and forecasted data from the firm's pro
forma, or forwardlooking, financial statements.

One popular way of doing trend analysis is by using financial ratio analysis. If you calculate
financial ratios for a business firm, you have to calculate at least two years of ratios in order
for them to mean anything. Ratios are meaningless unless you have something to compare
them to, in this case other years of data. Trend analysis is even more powerful if you have
and use several years of financial ratios.

Common size financial statement analysis: Common size financial statement analysis is

analyzing the balance sheet and income statement using percentages. All income statement
line items are stated as a percentage of sales. All balance sheet line items are stated as a
percentage of total assets. For example, on the income statement, every line item is divided
by sales and on the balance sheet, every line item is divided by total assets. This type of
analysis enables the financial manager to view the income statement and balance sheet in a
percentage format which is easy to interpret.

Percentage Change Financial Statement Analysis: Percentage change financial statement

analysis gets a little more complicated. When you use this form of analysis, you calculate
growth rates for all income statement items and balance sheet accounts relative to a base year.
This is a very powerful form of financial statement analysis. You can actually see how
different income statement items and balance sheet accounts grew or declined relative to
grows or declines in sales and total assets.

Benchmarking: Benchmarking is also called industry analysis. It involves comparing a

company to other companies in the same industry in order to see how one company is doing

18
financially compared to the industry. This type of analysis is very helpful to the financial
manager as it helps to see if any financial adjustments need to be made.

Financial ratio analysis: are usually used for benchmarking analysis. Financial ratios for other

companies can be obtained from a number of sources. Here is an excellent source of industry

average ratios. In order to do benchmarking, you compare the ratios for one company to the

ratios for other companies in the same industry. You have to be sure that the industry average

ratios are calculated in the same way the ratios for your company are calculated when you do

benchmarking.

Using these four financial statement analysis techniques help a financial manager know
where

a business firm is financially both internally and as compared to other firms in the industry.

Together, they are powerful analysis tools that will help every business firm stay solvent and

profitable.

19
Objectives of the study of Financial Statement Analysis:

The major objectives of financial statement analysis are to provide decision makers
information about a business enterprise for use in decision-making. Users of financial
statement information are the decision-makers concerned with evaluating the economic
situation of the firm and predicting its future course.

Financial statement analysis can be used by the different users and decision makers to

achieve the following objectives:

1. Assessment of Past Performance and Current Position:

Past performance is often a good indicator of future performance. Therefore, an investor or

creditor is interested in the trend of past sales, expenses, net income, cash flow and return on

investment.

2. Prediction of Net Income and Growth Prospects:

The financial statement analysis helps in predicting the earning prospects and growth rates in
the earnings which are used by investors while comparing investment alternatives and other
users interested in judging the earning potential of business enterprises

3. Prediction of Bankruptcy and Failure:

Financial statement analysis is a significant tool in predicting the bankruptcy and failure
probability of business enterprises..

4. Loan Decision by Financial Institutions and Banks:

Financial statement analysis is used by financial institutions, loaning agencies, banks and
others to make sound loan or credit decision. In this way, they can make proper allocation of
credit among the different borrowers.

20
IMPORTANCE OF ANALYSIS OF FINANCIAL STATEMENT

Financial statement is prepared at a certain point of time according to established convention.

These statements are prepared to suit the requirement of the proprietor. For measuring the
financial soundness, efficiency, profitability and future prospects of the concern, it is
necessary to analyse the financial statement. Following purposes are served by the Financial
analysis: -

Help in Evaluating the operational efficiency of the Concern:- It is necessary to analyze the
financial statement for matching the total expenses incurred in manufacturing, Advertising,
selling and distribution of the finished goods and total financial expanses of the current year
comparing with the total expanses of the previous year and evaluate the managerial efficiency
of concern.

Help in Evaluating the short and long term financial position:- It is necessary to analyse the
financial statement for comparing the current assets and current liabilities to evaluate the
short term and long term financial soundness.

Help in calculating the profitability:- It is necessary to analyze the financial statement to

know the gross profit and net profit.

Help in indicating the trend of achievements:- Analysis of financial statement helps in

comparing the Financial position of previous year and also compare various expenses,
purchases and sales growth, gross and net profit. Cost of goods sold, total value of assets and
liabilities can be compare easily with the help of Analysis of financial statement .Forcasting,
budgeting and deciding future line of action:-The potential growth of the business can be
predicts by the analysis of financial statement which helps in deciding future line of action.
Comparisons of actual performance with target show all the short comings .Meaning of
Common-Size Statement:

The common-size statements, balance sheet and income statement are shown in analytical
percentages. The figures are shown as percentages of total assets, total liabilities and total
sales. The total assets are taken as 100 and different assets are expressed as a percentage of
the total. Similarly, various liabilities are taken as a part of total liabilities .These statements
are also known as component percentage or 100 per cent statements because every individual
item is stated as a percentage of the total 100. The short-comings in comparative statements

21
and trend percentages where changes in items could not be compared with the totals have
been covered up. The analyst is able to assess the figures in relation to total values.

Apple’s products took part in the continuous and unpredictable technological advancements,
its products and notably the iPhones leapfrog other substitutes and other technological
gadgets to let Apple in a winner-takes-all market position. These small hand held devices
have so much to offer to customers (Mackenzie, 2011).

The purpose of our primary research is to gauge the interest of people, their conception and
the degree of their satisfaction with the iPhones. The primary objective of this field study is
to identify the brand components of Apple and to show how its product attributes, meaning
the iPhones, perceived by customers in their decision making process of buying a particular
brand of smartphones. A good knowledge of our respondents' needs and preferences
corresponding to smartphones would help us understand their brand knowledge, awareness
and loyalty. Also, this will give us a clue about the importance of the brand name and identity
in shaping the consumer brand preference. Regarding of the paper's purpose and to put in
evidence the consumer's perceived value of the Apple brand, we have chosen to do our
primary research using a questionnaire since it suits mostly the survey.

In fact, the survey research is the most widely used method to collect primary data. It is
characterized by flexibility and it help to obtain different kinds of information in many
different situations (Kotler et al., 2005, 119). In addition, the major reason for choosing this
method is based essentially on one special advantage; it is the absence of subjectivity.
Consequently, our opinions will not be included in the respondents' answers formulation. The
questionnaire contains uniform questions and there is no bias. However, it's very challenging
to achieve the goal of no-bias by some other research methods, such as focus group
discussion or in-depth interview since the verbal clues and real-time discussion by the
researcher would impact and shape the attitudes of answerers to a certain extent. The survey
involves 110 participants. They range in age interval from 15 years-old to 40 years-old. The
respondents are mainly students from Tunis Business School. They represent different
nationalities including Tunisians and Moroccans, Syrians, Palestinians …etc. The majority of
participants belong to the middle-class which includes the students and university officers.
The mean participant’s age lied between 20 years-old and 25 years-old. The sample
represents the persons who possess iPhones or other brands and those who are conversant

22
with Apple brand and products. The questionnaire design and distribution followed data
analyzing of population shifts and also trends.

23
The survey was performed during the period between 5th and 9th March, 2023. The
questionnaire was distributed to the students of the university using Google Docs and
Facebook. The participants were informed of the general purpose of the research objectives
and they voluntarily and anonymously invited to answer the questionnaires. Besides, they
were asked to spread and share the questionnaire by inviting their Facebook friends to take
part in the research because this technique was seemed very useful for inviting a large
number of Facebook users effectively and hastily. Random sampling method did not work in
this case because there are privacy settings of the Facebook profiles. Consequently, it was
necessary to invite respondents (shared friends of Facebook users) to like the page, join some
Facebook groups and fill the survey. The questionnaire was spread electronically over a total
of 5 days during the collection period. This period was chosen as it was seen as too early for
the deadline of paper submission (30/10/2014) and the time span is large to get as much as
we could answers and data that have been easily collected without being under any time
pressure. The survey questionnaire forms were developed based on similar survey which had
been undertaken in previous years. The survey was carried out primarily with English and
accompanied with a translation into Arabic language in order to facilitate the respondents’
responses and to avoid being limited to certain demographics. Research was also undertaken
on similar surveys which had been conducted internationally. Due to the resemblance in
terminology between the researches handling with the similar topic, one survey form was
produced.

iOS (formerly iPhone OS) is a mobile operating system created and developed by Apple Inc.
exclusively for its hardware. It is the operating system that presently powers many of the
company's mobile devices, including the iPhone, iPad, and iPod Touch. It is the second most
popular mobile operating system globally after Android. Originally unveiled in 2007 for the
iPhone, iOS has been extended to support other Apple devices such as the iPod Touch
(September 2007) and the iPad. As of January 2017, Apple's App Store contains more than
2.2 million iOS applications, 1 million of which are native for iPads. These mobile apps have
collectively been downloaded more than 130 billion times. The iOS user interface is based
upon direct manipulation, using multi-touch gestures. Interface control elements consist of
sliders, switches, and buttons. Interaction with the OS includes gestures such as swipe, tap,
pinch, and reverse pinch, all of which have specific definitions within the context of the iOS
operating system and its multi-touch interface. Internal accelerometers are used by some
applications to respond to shaking the device (one common result is the undo command) or

24
rotating it in three dimensions (one common result is switching between portrait and
landscape mode). Apple has been significantly praised for incorporating thorough
accessibility functions into iOS, enabling users with vision and hearing disabilities to
properly use its products. Major versions of iOS are released annually. The current version,
iOS 11, was released on September 19, 2017. It is available for all iOS devices with 64-bit
processors; the iPhone 5S and later iPhone models, the iPad (2017), the iPad Air and later
iPad Air models, all iPad Pro INTERNATIONAL JOURNAL OF CURRENT
ENGINEERING AND SCIENTIFIC RESEARCH (IJCESR) ISSN (PRINT): 2393-8374,
(ONLINE): 2394-0697, VOLUME-5, ISSUE-2, 2018 50 models, the iPad Mini 2 and later
iPad Mini models, and the sixth-generation iPod Touch.

25
REVIEW OF LITERATURE

A LITERATURE SURVEY ON IPHONE OPERATING SYSTEM (iOS) Nayana V1, Dr.R.Reka2 1BE CSE,
2Professor & Head/CSE, Annai Mathammal Sheela Engineering College, Erumapatty, Namakkal,
Tamilnadu

CONCLUSION OF THIS SURVEY :

iOS (formerly iPhone os) is a mobile operating system created and developed by Apple Inc. iOS
is designed to be simple and easy to use, it does not include several features found in a traditional
operating system. Apple’s iOS provides more basic user interface than Mac OS X, each new version

adds more features.

The founding of Apple is a popular subject, and as a result several books have come out
examining how this technological giant came about. For those who want to know the
engineering aspects first hand, Steve Wozniak’s iWoz is an excellent resource. For
researchers who are more interested in the business and marketing aspects should definitely
read Walter Isaacson’s Steve Jobs: The Exclusive Biography. Walter Isaacson has also
written a book called The Innovators, examining the whole history of computing from
Charles Babbage’s analytical engine to the latest improvements. It’s a great resource for any
computer history enthusiast. It also includes a section on the foundation of Apple, and
compares it with other contemporary entrepreneurs such as Bill Gates. Another interesting
book is by Owen W. Linzmayer called Apple Confidential 2.0. It has a very engaging
language and many pictures accompanying the interesting text. Besides these books that
focus on the very beginning of Apple, there are also several books written by former
employees that examine what happened after the company was fully established. For a good
example, see Revolution in The Valley: The Insanely Great Story of How the Mac Was Made
by Andy Hertzfeld. Among these one notable book is a biography of the British designer
Johnny Ive; Johnny Ive: The Genius Behind Apple’s Greatest Products by Leander Kahney.

The opinions of the participants mostly match the written accounts of the founders of Apple.
However there are two cases where the ideas diverge. One is that many participants think
advertisement/marketing play a huge role in Apple’s success. We have established that, this

26
is not the case, at least for the initial years of Apple. The second point is that many
participants also think that the schooling of the founders has played a big role in the founding
of Apple. This also turns out not to be the case as discussed above. The study showed that the
individual engineering, business and management abilities of the founders is an important
factor. It was also established that the technical, social and economic environments of the
founders have played important roles in Apple’s success. This has prompted many
governments who wish to imitate Apple’s success to build so-called techno-parks, areas
where new start-up companies can be easily built and run. However the success of such
places is controversial, and many believe the age for garage companies, marking a specific
technical conjuncture in the history of engineering oriented business has already passed and
became a vision of the past. Some others point out newly found successful startups. Whatever
the case, there are many lessons in the technical and engineering history of apple who wish to
learn.

27
PROFILE OF IOS

Apple Inc.

History of company
Apple formerly Apple Computer, Inc., is a multinational corporation that creates consumer
electronics, personal computers, servers, and computer software, and is a digital distributor of
media content. The company also has a chain of retail stores known as Apple Stores. Apple's
core product lines are the iPhone smartphone, iPad tablet computer, and Macintosh computer
line. Founders Steve Jobs and Steve Wozniak created Apple Computer on April 1, 1976, and
incorporated the company on January 3, 1977, in Cupertino, California.Current Apple Inc.
logo, introduced in 1998, discontinued in 2000, and re-established in 2014 For more than
three decades, Apple Computer was predominantly a manufacturer of personal computers,
including the Apple II, Macintosh, and Power Mac lines, but it faced rocky sales and low
market share during the 1990s. Jobs, who had been ousted from the company in 1985,
returned to Apple in 1997 after his company NeXT was bought by Apple. The following year
he became the company's interim CEO which later became permanent Jobs subsequently
instilled a new corporate philosophy of recognizable products and simple design, starting
with the original iMac in 1998.With the introduction of the successful iPod music player in
2001 and iTunes Music Store in 2003, Apple established itself as a leader in the consumer
electronics and media sales industries, leading it to drop "Computer" from the company's
name in 2007. The company is now also known for its iOS range of smart phone, media
player, and tablet computer products that began with the iPhone, followed by the iPod Touch
and then iPad. As of June 30, 2015, Apple was the largest publicly traded corporation in the
world by market capitalization with an estimated value of US$1 trillion as of August 2, 2018
Apple's worldwide annual revenue in 2010 totalled US$65 billion, growing to US$127.8
billion in 2011 and $156 billion in 2012.

28
29
A BRIEF BEGINNING OF APPLE

Apple was not found by a single individual. However, a few people were
instrumental in its initial success. In the technical context, the credit should go
to Steve Wozniak. He was the genius behind the merging of the microprocessor,
the motherboard and the keyboard input/monitor output interface. In the
management and business aspects, Steve Jobs, along with Mike Mirkkula
played key roles. Wozniak’s father was an engineer at Lockheed and he liked to
explain electronics to his son (Isaacson, 2014). In June 1971, Wozniak, along
with his neighbor Bill Fernandez (Linzmayer, 2004), built a computer similar to
the MITS Altair they named the “Cream Soda Computer”. Fernandez helped
Wozniak with all kinds of things building the computer in his garage. It was the
most minimum thing that could be called a computer; a little circuit board with
256 Bytes of RAM and a CPU on several chips (Wozniak, 2007).

It had no keyboard or monitor, instructions were fed in by punch cards and the
results were seen by flashing lights on a front panel (Isaacson, 2014). As a result
of their early partnership, few people knew the workings of Wozniak’s mind
like Fernandez (Hiner, 2014). Fernandez, still in high school, introduced a
friend of his who was also interested in electronics and practical jokes (Hiner,
2014) to Wozniak, called Steven Paul Jobs (Linzmayer, 2004). In fall 1971,
Wozniak read an article in the Esquire Magazine that described how people
called “phone phreaks” created a device to fool the telephone system (Isaacson,
2014). Together with Jobs, they built a device that could imitate certain tones
that allowed them to make free long distance calls. These were called the “blue
boxes”, and Wozniak and Jobs were able to build the boxes for $40 and then
Jobs would sell them door to door for $150 (Linzmayer, 2004). This experience
enabled them to learn how to work together as a team, and Jobs would later
remark that there would have been no Apple without the blue boxes (Isaacson,

30
2014). After some time in college, Jobs dropped out of it, went to a pilgrimage
to India and after he returned in 1974, he started working for Nolan Kay
Bushnell, who had founded Atari in 1972 (Linzmayer, 2004). His manager was
Al Alcorn, who had to place Jobs on a night shift to avoid confrontation of him
with other employees. Jobs later recalled that his time in Atari gave him some
important lessons about keeping the interfaces friendly, intuitive and simple
(Isaacson, 2014). In those days, Atari’s Pong game was a great success. It was
designed all in hardware. Wozniak, knowing Jobs and his work, created a
hardware where he could play Pong on his TV set (Isaacson, 2014). Bushnell
now envisaged a variation of Pong called Breakout (Linzmayer, 2004). A ball
would bounce off a moving platform and hit some bricks, destroying them and
giving points to the player. He asked Jobs to design the game, knowing that he
would enlist the help of his friend, Wozniak (Isaacson, 2014). Wozniak,
skipping sleep for four days, managed to finish the game with a low number of
chips. Wozniak got a phone call from Allen Baum and that call introduced him
to what would become the Homebrew Computer Club (HCC).

He had already built a terminal that could access the ARPANET, the
government-owned network of computers that was the predecessor to the
internet. His terminal would allow him to display letters on his TV set. The only
other alternative was a teletype system that cost thousands of dollars. Wozniak
and Jobs had sold the ARPANET terminal to Call Computer in Mountain View
(Wozniak, 2007). On a cloudy day in March 1975, a group of computer
enthusiasts gathered in the garage of Gordon French. Wozniak was at the first
meeting, and later Jobs joined him, carrying the TV set of his devices. The club
members were focused on a product by a company called MITS (Micro
Instrumentation and Telemetry Systems). Someone was holding up an issue of
Popular Electronics which had the picture of a computer in front of it. It was

31
Altair from a New Mexico company called MITS (Wozniak, 2007). It was a
hobbyist kit computer; you bought the pieces and put them together yourself.
Another person also started passing out data sheets for a microprocessor called
the 8008 from a company in Canada İbrahim Atakan Kubilay / Procedia - Social
and Behavioral Sciences 195 ( 2015 ) 2019 – 2028 2021 and it was a clone of
Intel’s 8008 processor. Now all the CPU was on one chip instead of many chips
(as on the Cream Soda Computer), and it had pins coming out and all you had to
do was to connect things to it like memory chips (Wozniak, 2007). Someone
was selling the Altair for $379. It was designed around an Intel 8080
microprocessor. After the group grew to about a few hundred people, they
moved to the auditorium of Stanford Linear Accelerator Center in Palo Alto
(Linzmayer, 2004). In the first meeting, Wozniak, who didn’t know much about
computers at that time, learned of a component called a microprocessor, a

32
central processing unit on a single chip, it’s the heart of any computer. Starting
from 1971, microprocessors were making complex circuit boards obsolete, and
Japanese electronics companies began mass-producing products cheaper than
homemade ones. Before the HCC meeting, Wozniak was designing a so called
“dumb” terminal, a device that could connect to a far-away time-sharing
computer, but it could use a keyboard and monitor as its input and output
interfaces.

Wozniak started designing a new stand-alone computer around a

microprocessor that would later be known as the Apple-I (Isaacson, 2014).
Wozniak had done minicomputer redesigns, data on screen and had already
done a TV terminal. He knew how to connect memory. All he needed was this
Canadian microprocessor and some memory chips to have his own computer.
He thought he could build an extremely small computer he could write
programs on. This whole vision of a personal computer appeared in his head.
Every computer up to this time looked like an airplane cockpit with switches
and lights you had to manipulate and read. He realized that since you already
had a keyboard, you didn’t need a front panel, you could type things and see
things on screen. Before Apple-I, all computers had hard-to-read front panels
without screens and keyboards. After Apple-I, they all had keyboards and
monitors (Wozniak, 2007). Wozniak wanted to add a new feature to his new
computer. When one turned a calculator on, it was ready to go: it had a program
in it that started up and then it was ready for you to hit a number. So it booted
up automatically and just sat there, waiting for the user to tell it to do
something. The program on a calculator that did this was on three little ROM
chips that held their information even when power was turned off.

He knew he could have a ROM chip that would hold a program of mine that
would let the computer turn on automatically. He needed to write a small

33
program that would run as you turned the computer on, tell the computer how to
read the keyboard, let the user enter data into memory, let you see what data
was in memory and make the processor run a program at a specific point in
memory. He called it a “monitor” program. Two PROM (Programmable Read
Only Memory) chips he found in the lab could hold 256 Bytes of data and he
needed to fit his entire monitor program into these. He was good at making
programs small but it was still a difficult task (Wozniak, 2007)

He realized that soon a new processor called the MOS 6502 from a company in
Pennsylvania would be announced at Wescon in San Fransisco. That
microprocessor was fully compatible with the Motorola 6800 chip that Wozniak
had designed his computer around. So he could just replace the more expensive
chip with this one without any redesign. It cost half of the Motorola chip. At
Wescon, from the MOS Technologies booth, he bought a few chips and a
manual (Wozniak, 2007). He built the project at his office at Hewlett Packard. It
was an engineering environment and all the equipment he needed to solder and
test his computer was there. As for RAM, he also had thirty-two SRAM chips
each holding 1024 bits, for a total of 4K Bytes of memory, 16 times what the
Altair had. Those days, DRAM was becoming more popular and less expensive
and it could have 4K bits per chip instead of the 1024 bits per chip SRAMs
Wozniak had been using.

Around that time, someone at HCC offered some 4K-bit DRAM chips at a
reasonable price. Wozniak bought eight of these chips for $5 each. He
redesigned the memory connector on Apple-I so it could accept either an SRAM
or DRAM board. He showed the Apple-I at every meeting of HCC after he got
it working. He copied a hundred copies of his complete design along with the
monitor program and gave it to anyone who wanted it. This was a computer
with only 30 chips on it. And one could use his home TV with it (Wozniak,
2007). At first, he wanted his computer to run FORTRAN, a popular science

34
and engineering oriented language at the time. In 1975 Bill Gates had written a
BASIC interpreter for Altair.

Also a book called the 101 Basic Computer 2022 İbrahim Atakan Kubilay /
Procedia - Social and Behavioral Sciences 195 ( 2015 ) 2019 – 2028 Games by
DEC (Digital Equipment Corporation) came out. And there was no BASIC
interpreter for the MOS 6502 processor yet. So Wozniak decided that he would
use BASIC as a language for the Apple-I instead of FORTRAN. Wozniak
started using some HP BASIC tables and writing what is called a syntax table, a
table that defined the rules as to how components of a programming language
could come together. Wozniak’s BASIC interpreter only worked with integer
numbers for simplicity. So the 6502 chip became “programmable” in BASIC.
Apple-I had no permanent storage.

Every time the computer was turned off, the interpreter program would have to
be entered again using the keyboard. The BASIC interpreter Wozniak wrote
was a 4K-Byte program and it took almost 40 minutes to type it every time. So
he developed a cassette tape interface, a $75 card that would fit to the sole
expansion slot of the Apple-I. A regular cassette tape could hold the BASIC and
when the memory was turned on it could automatically load the interpreter onto
memory. However, the 6502 BASIC based on the HP BASIC was different than
the Bill Gates’ Microsoft BASIC based on the DEC BASIC. DEC was the the
company who published the 101 Basic Computer Games, so in order to play the
games in Apple-I some changes would have to be made.

When these changes were made, the games could be made to work on Apple-I
(Wozniak, 2007). By this time Jobs had seen this creation of Wozniak and had
helped him carry his TV to HCC meetings. Jobs was asking all kinds of

35
questions to Wozniak, like if a disk storage unit could be added to the computer.
He was asking the right questions, but at that time Wozniak didn’t know how
and when these things could be possible. So Jobs was the visionary in the
partnership. Jobs even arranged for Wozniak to get better Intel DRAM chips by
talking to an Intel sales representative. Intel chips were smaller than AMI chips
Wozniak had bought from the HCC guy. One day Jobs offered Wozniak to
build and sell the printed circuit boards to HCC members who already had the
schematics but didn’t have time to actually build them. People would get the
necessary chips themselves and solder them onto the boards. Many HCC
members were working for computer companies and so could have many of the
chips for free.

He suggested that the boards could be built for $20 and sold for $40. Wozniak
figured they would need about $1000 to get a company to print the circuit
boards. And even to get this much money back, they would need to sell the
boards to 50 people for $40 each. To come up with this initial capital, Wozniak
sold his HP 65 calculator for $500 and Jobs sold his Volkswagen van for
another few hundred dollars. Jobs used to visit a communal farm up in Oregon
called an “apple orchard” where they grew apples. At a time while Wozniak
was driving Jobs back from the airport, Jobs suggested the name Apple
Computer for their company. They asked help from a friend of Jobs’ at Atari,
who said he could make the initial design of the boards for $600.

They needed this to give this design to the company who would actually print
the circuit boards. Jobs also brought in Ron Wayne from Atari and he would be
a partner of Apple at the beginning. Wayne played a big role in those early days

36
of Apple, in the days before they had any funding, he wrote the early operation
manual and designed the very first Apple Logo. Eventually they drafted a
partnership agreement where Wozniak and Jobs would have 45% each, and
Wayne would have 10%. Wozniak’s father, thinking that his son had made all
the work, was not happy to give equal shares to Jobs, but Wozniak understood
Jobs’ value in the partnership (Isaacson, 2014).

Because Wozniak also worked at HP at the time, he tried to run his idea through
the HP hierarchy and have HP build the computer, his only reward would be to
work on the project. But HP turned him down, leaving him free to work on the
project with his partners. They got the circuit board finished and working
(Wozniak, 2007), and filed the partnership papers for Apple Computer
Company on April 1st, 1976 (Linzmayer, 2004). The owner of a small local
computer chain named Paul Jay Terrell had seen Wozniak show his computer
and had asked Jobs to stay in touch.

Jobs went to see him the next day. They arranged for the purchase of 100
computers, fully built, for $500 each. Terrell would pay them cash on delivery.
It was a huge sum of money for both of them. Terrell was starting a new
computer store called the Byte Shop in Mountain View.

In order to buy the parts they needed for the assembled boards, they loaned
some money from Allen Baum’s father, they also arranged for getting the
necessary chips from Cramer Electronics on a 30 day credit. The first batch of
boards were finished in January 1976. The boards cost $220 to build. They
would assemble the boards, plugging in the chips at Jobs’ family garage and his
friend Dan Kottke and little sister Patty would help plug the chips on for $1 per
board. Fernandez was also there, helping plug in the chips (Hiner, 2014). Then

37
Wozniak would test them with a keyboard and a TV and if they worked, they
were placed in white box for delivery to Terrell’s shop. But the computers were
not fully built as İbrahim Atakan Kubilay / Procedia - Social and Behavioral
Sciences 195 ( 2015 ) 2019 – 2028 2023 Terrell was expecting (Linzmayer,
2004). He would have to supply monitors, transformers for the power supply,
keyboards and even wooden cases to put the boards in (Wozniak, 2007).

Then Wozniak finally went in front of the whole HCC and personally presented
his product. The price for the Apple-I was fixed at $666.66. They sold more
than 100 units by traveling door to door to small computer stores (Wozniak,
2007). Wayne was not happy with his side of the partnership, he was used to big
companies and salaries, and also the legal nature of a partnership agreement
meant that he had unlimited personal liability for any debts incurred by Apple
(Linzmayer, 2004), so Wozniak and Jobs bought him out for $800 (Wozniak,
2007). In 1976, Wozniak started designing a new computer that would be called
the Apple-II. He wanted to have color on the TV display, unheard of in small
computers up to that day. He designed it around text and high resolution
graphics. He reserved a DRAM bank to keep the data for what needed to be
displayed on screen. This enabled him to lower the chip count and Apple-II had
half the number of chips as Apple-I. There were faster DRAM chips available,
so Apple-II was faster than Apple-I and also allowed for sound and the
attachment of game paddles. It was also ready to use at boot-up, with BASIC
already in the ROM.

The Apple-II board was finished by August 1976 and it was flown to the PC ’76
Show in Atlantic City, although it was not publicly announced there. At the
show, Wozniak managed to program the game Breakout in BASIC language

38
and realized that all the changes he made in the game would have taken him
years to do in hardware. It was much faster to do them in software and the
whole gaming world would change (Wozniak, 2007).

They also hired an engineer called Rod Holt to build a switching power supply
that generated less heat and could be placed inside a plastic case. This would
allow for a more integrated design for the Apple-II. It would be the first
computer ever with a plastic case (Wozniak, 2007). Jobs had decided that the
next personal computer should not be a hobbyist kit, but an appliance, with a
nice case requiring no assembly. The aim was no longer the electronics
hobbyist, but regular people. It was also the start of the philosophy of
controlling the customer experience from start to finish; Apple’s hardware
would be tightly integrated with its operating system software (Isaacson, 2014).
Holt, along with Fernandez, was also instrumental in converting Woniak’s
prototype into a set of readable schematics that could be used as a standard to
mass produce the computer product (Hiner, 2014). In that same year, they
started looking for funding their new computer. They showed it to Chuck
Paddle from Commodore Business Machines, which produced calculators, in
Jobs’ garage (Linzmayer, 2004; Wozniak, 2007).

This was the person from whom Wozniak had bought the MOS 6502
microprocessor. He liked the presentation that included impressive high-
resolution color spirals, and so decided to have them make another presentation
to the company’s leading figures. Jobs set the price of their creation at a few
hundred thousand dollars plus $36,000 a year jobs for Wozniak and himself
(Linzmayer, 2004; Wozniak, 2007). But, Commodore turned them down, they

39
had decided to build their own computer (Wozniak, 2007). It was just as good
because Jobs was also getting suspicious about the deal (Linzmayer, 2004).

After the Commodore episode was closed, they turned to Al Alcorn, the co-
founder of Atari. Alcorn told them that Atari was too busy working on the video
game market. Later, some venture capitalists contacted by Jobs started to arrive,
among whom was Don Valentine from a firm called Seqoia which had also
funded Atari (Isaacson, 2014). While Valentine turned them down as well, he
forwarded them to a guy called Armas Clifford “Mike” Mirkkula, Jr. who was
into gadgets (Wozniak, 2007). He has retired a year earlier and had made a
small fortune from his stock options in the chip makers Fairchild and Intel.
When they met with Mirkkula, Wozniak was impressed. He proposed raising
$250,000 to build 1000 computers. He talked about introducing the computer to
the ordinary people to do things like keeping recipes and balancing a
checkbook.

He had the vision of Apple-II as a real home computer. In realizing this vision,
what is called a killer app, an easy-to-use program that could be used by regular
people to run their daily businesses was important. This is where Dan Bricklin
and Bob Frankston’s Visicalc came into play. The computer they chose for it
was Apple-II, 2024 İbrahim Atakan Kubilay / Procedia - Social and Behavioral
Sciences 195 ( 2015 ) 2019 – 2028 because Wozniak had made its architecture
open and transparent so that software developers could easily access the
functions necessary to run their software on it (Isaacson, 2014). Mirkkula also
predicted that they would be a Fortune 500 company in two years.

40
He also asked Wozniak to leave his job at HP and set a deadline for him to
decide. At first Wozniak said no, but after a while, thanks to pressure from Jobs,
he relented and left his job at HP (Wozniak, 2007). With the money from the
Apple-I sales, they moved into an office in Cupertino. Mike Scott, a former
director at National Semiconductor had been hired to be the first president of
Apple (Wozniak, 2007). They decided to show Apple-II to the public for the
first time in the West Coast Computer Faire (Wozniak, 2007).

After that, it went on sale for $1,298 and within three years 100,000 computers
were sold (Isaacson, 2014). Dubbed the “iPhone of its era, the product that
redefined every machine that came after it,” (Hiner, 2014). Apple-II sales
continued to explode and Apple Computer Inc. was headed for a stock launch
that would generate more capital than any since Ford Motor Co. and would set a
new record creating over 300 millionaires (Hiner, 2014).

41
42
Members Of Apple

43
Branches of Apple

Apple Store is a chain of retail stores owned and operated by Apple Inc. The stores sell
various Apple products, including Mac personal computers, iPhone smartphones, iPad tablet

computers, Apple Watch smartwatches, Apple TV digital media players, software, and both

Apple-branded and selected third-party accessories.

Apple Store

Type : Subsidiary

Industry :X

• Computer hardware

• Computer software

• Consumer electronics

• Distribution

Founded : May 19, 2001; 20 years ago

Tysons, Virginia, United States

Founder Steve Jobs

Headquarters Cupertino, California, US

Number of locations 511 locations[1]

(270 US/241 overseas)

Key people

• Tim Cook (CEO)

• Deirdre O'Brien (SVP: Retail + People) Products

• Mac

• iPhone

• iPad

44
• Apple Watch

• Apple TV

• Apple & third-party software and accessories

Parent Apple Inc.Website www.apple.com/retail

The first Apple Stores were originally opened as two locations in May 2001 by then-CEO
Steve Jobs, after years of attempting but failing store-within-a-store concepts. Seeing a need
for improved retail presentation of the company's products, he began an effort in 1997 to
revamp the retail program to get an improved relationship with consumers and hired Ron
Johnson in 2000. Jobs re-launched Apple's online store in 1997 and opened the first two
physical stores in 2001. The media initially speculated that Apple would fail, but its stores
were highly successful, by passing the sales numbers of competing for nearby stores and
within three years reached US$1 billion in annual sales, becoming the fastest retailer in
history to do so.

45
 Over the years, Apple has expanded the number of retail locations and its geographical
coverage, with 511 stores across 25 countries worldwide as of May 27, 2021, when the new
flagship store at Via del Corso in Rome opened Strong product sales have placed Apple
among the top-tier retail stores, with sales over $16 billion globally in 2011.In May 2016,
Angela Arendt’s, Apple's then-Senior Vice President of retail, unveiled a significantly
redesigned Apple Store in Union Square, San Francisco, featuring large glass doors for the
entry, open spaces, and rebranded rooms. In addition to purchasing products, consumers can
get advice and help from "Creative Pros" – individuals with specialized knowledge of
creative arts; get product support in a tree-lined Genius Grove; and attend sessions,
conferences, and community events, with Ahrendts commenting that the goal is to make
Apple Stores into "town squares", a place where people naturally meet up and spend time.

The new design will be applied to all Apple Stores worldwide, a process that has seen stores
temporarily relocate or close. Many Apple Stores are located inside shopping malls, but
Apple has built several standalone flagship stores in high-profile locations. It has been
granted design patents and received architectural awards for its stores' designs and
construction, specifically for its use of glass staircases and cubes. The success of Apple
Stores has had significant influence over other consumer electronics retailers, who have lost
traffic, control and profits due to perceived higher quality of service and products at Apple
Stores. Apple's notable brand loyalty among consumers causes long lines of hundreds of
people at new Apple Store openings or product releases. Due to the popularity of the brand,
Apple receives many job applications, many of which come from young workers. Apple
Store employees receive above-average pay, are offered money toward education and health
care, and receive product discounts; however, there are limited or no paths of career
advancement. A May 2016 report with an anonymous retail employee highlighted a hostile
work environment with harassment from customers, intense internal criticism, and a lack of
significant bonuses for securing major business contracts.

46
Products of Apple

Apple Inc. designs, manufactures and markets mobile communication and media devices,

personal computers and portable digital music players. The Company sells a range of related

software, services, accessories, networking solutions, and third-party digital content and

applications. The Company's segments include the Americas, Europe, Greater China, Japan

and Rest of Asia Pacific. The Americas segment includes both North and South America. The

Europe segment includes European countries, India, the Middle East and Africa. The Greater

China segment includes China, Hong Kong and Taiwan. The Rest of Asia Pacific segment

includes Australia and the Asian countries not included in the Company's other operating

segments. Its products and services include iPhone, iPad, Mac, iPod, Apple Watch, Apple
TV, a portfolio of consumer and professional software applications, iPhone OS (iOS), OS X
and watch OS operating systems, iCloud, Apple Pay and a range of accessory, service and
support offerings.

In 2010, before he became chief executive officer, Apple's Tim Cook said all the company's

gadgets could fit on a table, arguing such focus resulted in better products.

At the time, the company's website offered 14 Apple products. Now, under Cook's leadership,

the line-up has ballooned to 27 products available in more than 200 different versions. The

strategy - a departure from co-founder Steve Jobs' minimalist approach - is helping Apple
grow even as the market for its most-important product, smartphones, stalls.

Products such as the Apple Watch and Air Pod wireless headphones, combined with more

versions of the iPhone and surging sales from a growing variety of software services, drove

revenue growth in the most-recent quarter. That offset weaker-than-expected phone unit sales

and helped Apple's market value top $US800 billion ($1.1 trillion) this week - a first for a US

company.While Cook's Apple has so far struggled to create new product categories, building
out the existing line-up is adding to investor optimism: Drexel Hamilton analyst Brian White
set a price target for the stock this week that would see Apple valued at more than $US1

47
trillion."There was a concern with the reliance on one product, but they've been able to find
ways that aren't necessarily innovative to continue to sustain growth," said BTIG analyst
Walt Piecyk. The services business supports profit margins "while the company is able to
maintain growth from peripheral products like Air Pods and Watches".Apple is in a very
different position from when Cook made his table top comment at an investor conference
seven years ago. That fiscal year, revenue jumped 52 per cent as consumers fell over
themselves to buy more iPhones. Now, with most developed-world consumers already using
smartphones, and Apple's annual revenue exceeding $US200 billion, growth is harder to
achieve.Apple's "Other Products" are picking up some of the slack. Sales of gadgets like the
Watch, Air Pods, Beats headphones and Apple TV jumped 31 per cent to $US2.87 billion in
the fiscal second quarter. Cook said on May 2 that Watch sales almost doubled year-over-
year, and compared this appendage of Apple's business to a Fortune 500 company.The iPad
has endured a precipitous three years, with unit sales at about a third of their peak.

The response has been to offer a plethora of different options. There's the iPad Pro, iPad and

iPad Mini 4 in with at least 60 different memory, colour and connectivity options. New
versions of the MacBook Pro unveiled in November meanwhile helped the average price for
the laptop range jump by almost $US130 to $US1392. That boosted Mac revenue growth to
14 per cent in the most recent quarter, the fastest pace in more than two years.

Apple gets almost two-thirds of its revenue from the iPhone, compared with 39 per cent in

2010. However, those sales come from 58 different iterations of the device now, up from five

flavours in 2010.

And changes in iPhone designs are generating new revenue. While the iPhone 7, introduced
in September, represented a modest upgrade to its predecessor, it included two significant

changes. First, Apple scrapped the 3.5-millimetre headphone jack, an audio staple since the

1950s. Second, the 5.5-inch screen iPhone 7 Plus incorporated an improved dual-camera

system that set it apart from the cheaper 4.7-inch screen model, the first time Apple had

changed anything beyond memory and screen size between the two handsets.

Scrapping the headphone jack encouraged more customers to buy the compatible AirPod

headphones, adding to Apple's Other Products revenue, BTIG's Piecyk said. Offering a dual

48
camera meanwhile attracted more customers to the larger 7 Plus, helping Apple increase the

average sales price for iPhones. That kept revenue from that line growing slightly.

"This is the first year that we have a unique feature on the 7 Plus that is not in the 7 and

obviously customers are very interested in that feature," chief financial officer Luca Maestri

said in a May 2 interview. "We are seeing more interest in the market for larger displays."

Clever incremental iterations and additions to the hardware portfolio should keep growth

ticking over for the time being, and investors expect the next iPhone will sell well. Longer

term, there's no substitute for entirely new categories, and Apple has yet to deliver a major

automotive innovation, radical new TV experience, or augmented reality products.

While investors wait, the Services business has been the most consistent bright spot over the

past year. Here too, Apple is growing the product palette. In 2010, there was iTunes, the App

Store, Podcasts and iBook’s. Now there's Apple Music, iCloud, Health Kit, Apple Maps and
a dozen more contributing to a virtuous cycle. Every time Apple sells an iPhone to a new

customer, the company secures a potential new services subscriber. Each new sign-up makes

it more likely that a user will again opt for an iPhone when the time comes to upgrade.

Services revenue rose 18 per cent in the recent quarter, and Cook expects the business

will double in size by 2020 from last year's $US24 billion. This could help keep profit

margins high even with the introduction of the iPhone 8, since services revenue is

more profitable.

While hopes are high for iPhone 8 sales, the recent jump in Apple shares was driven

by "greater belief in the company's franchise value," UBS analyst Steven Milunovich

wrote in a recent note titled "Ecosystem Growth Suggests Antifragility".

49
50
Apple Inc. Industry Analysis Business Policy and Strategy

The world economy has evolved through centuries driven by several events and factors that
have shaped the world business field into what it is today. In the modern era, the most
significant economical revolutions were the agriculture revolution, which occurred in the
17th century, the industrial revolution, in the 18th century, the technical revolution, in the
19th century, which shortly developed to what is known as the scientific-technical revolution.
Nowadays, we are living the revolution of information and telecommunication, which is also
known as the digital revolution, which started around the 1980’s.

This current revolution is hugely driven by the technological advancements within the
Information Technology field. IT companies that were well established at the beginning of
the digital revolution, and the new startups that have had the advantageous business
mentality, financial resources, and flexibility to adopt the new fast advancements that were
taking place within the electronics field, grew up massively within a few decades and became
major players nowadays, not in their field alone, but overall in the world economy. In this
case study, the focus will be on Apple, the world largest publicly traded company by market
capitalization with current estimated value of US$530 billion and the second largest mobile
phone manufacturer in the world (Booton, 2016). Apple is an American company based in
Cupertino, CA, that is solely focused on manufacturing and selling consumer electronics,
software programs and online services (Apple Reports, 2005).

Its products include, but are not limited to, cell phones, media players, tablets, computers,
computer applications and operating systems. The company was established by Steve Jobs,
Steve Wozniak and Ronald Wayne as a small personal computer manufacturer and its first
product was hand made by Wozniak himself and was called Apple I (Apple History, 2015).
Wayne sold his share a year after for US$800 at the same time an investor named Mike
Markkula became part of the company and helped Apple with the business expenses needed
to expand and invested US$250,000 in Apple (Apple History, 2015).

51
 The company’s revenues were growing at an exponential rate and doubling every four
months for the first five years (Apple History, 2015). Apple kept growing and introduced new
versions of its computer in 1977 and 1980 hoping to compete in the corporate computers
field. By the end of 1980, Apple went public and its shares were offered in the stock market
for US$22 a share (Apple History, 2015). Apple launched the Macintosh in 1984, which sold
well at the beginning, but failed to grow or even maintain the sales numbers few months after
(Apple History, 2015). Its high retail price and limited use due to lack of software options
were the reason behind this failure (Apple History, 2015).

This all changed with the introduction of LaserWriter and PageMaker, an affordable printer
and publishing software that, when combined with Macintosh capabilities, becomes highly
appealing for businesses, writers and publishers (Apple History, 2015). IJSER International
Journal of Scientific & Engineering Research, Volume 7, Issue 3, March-2016 408 ISSN
2229-5518 IJSER © 2016 http://www.ijser.org A year after, Jobs got into a power related
conflict with the CEO at that time, John Sculley (Apple History, 2015). This led to Jobs
leaving the company and selling all of his shares in Apple, except one, for US$70 million.
Jobs established his own company called NeXT which had a focus of software programing
(Apple History, 2015). At that same time, Sculley had a strategy of implementing a 55%
profit margin on Apple products (Apple History, 2015).

This strategy failed as soon as PC’s came out having similar capabilities as the Macintosh
and sold for a fraction of Macintosh’s retail price (Apple History, 2015). Apple faced a huge
loses at that time and went back into the shadow (Apple History, 2015). To get over this loss,
Apple decided to get back the share it lost to Microsoft and the PC market by working
together with IBM and Motorola to bring a new platform to the market (Apple History,
2015). It also launched an email platform called eWorld, which was part of its business
diversifying strategy (Apple History, 2015). In 1996, NeXT won a bid to provide an
operating system firmware to Apple (Apple History, 2015). NeXT was acquired shortly
thereafter that and Steve Jobs was able to make his way back into Apple (Apple History,
2015). A year after his return, he was appointed interim CEO and became permanent four
years after. Jobs’ return was a company changing moment for Apple due to the new
philosophy that he implemented, which consists of simple design and unique products (Apple

52
History, 2015). In 1997, Bill Gates, Microsoft CEO, and Steve Jobs decided to settle a long-
term legal battle regarding patent infringement by bringing the office suite to Apple
computers, making internet explorer the default browser on all Apple computers and having
Microsoft invest $150 million in the Apple (Arthur, 2011). Apple used this investment to
bringing more creative contents to its products and investing in the education market (Apple
History, 2015). This eventually led to the introduction of the iMac, an all-new computer with
an attractive design of a multicolor see-through plastic shell (Apple History, 2015). Apple
sales of the iMac averaged to IJSER International Journal of Scientific & Engineering
Research, Volume 7, Issue 3, March-2016 409 ISSN 2229-5518 IJSER © 2016
http://www.ijser.org about 1 million units a year and it announced a strong return to the
computers market (Apple History, 2015). The year 2001 was full of major events for Apple.
It started with introducing the Mac OSX, an all-new user-friendly computer firmware that
was a revolution at its time due to its stability, quality of graphics used in the interface, and it
brought the well-known high security level of Unix operating systems to Apple computers
(Apple History, 2015).

Later in May of that year, Apple announced opening a chain of retail stores to assist in

establishing a direct connection with its customers, and better marketing for its products due

to the dissatisfaction of how third-party retailers presented Apple products (Apple History,

2015). The major event in that year was announced in October and it was the introduction of

the iPod, a digital music player (Apple History, 2015). The iPod had smashing sales and took

Apple’s total revenue from $1.9 billion dollars in the first quarter of 2000 to $3.2 billion

dollars in the same quarter of 2001 (Apple History, 2015). Three years after, Apple

announced that it had 76% of the music player market. In order to supply the demand for

digital music tracks, Apple introduced the iTunes store, a digital media library focused on

music (Apple History, 2015). Apple was able to sell a total of 1 billion songs on iTunes in

just three years after its launch, and a grand total of 10 billion songs by early 2010 (Apple

History, 2015). In 2007 Apple entered the cellphone market by introducing the iPhone, which

was highly admired due to its unique style, touch screen capability and lack of physical

53
keyboard (Apple History, 2015). The iPhone was followed by the iPad in 2010, which was

simply a bigger iPhone without the calling capabilities, targeting people who are looking for

lightweight devices with big screens that can do most of the tasks they can do on their

computers (Apple History, 2015). Later on 2010, a significant historical moment occurred

(Apple History, 2015). Apple’s most important rival and the longtime dominant of the

computers market, Microsoft, lost its position in regards to stock value and revenue when

Apple stock market value and total revenue surpassed Microsoft for the first time ever (Apple

History, 2015). This was far from expectations IJSER International Journal of Scientific &

Engineering Research, Volume 7, Issue 3, March-2016 410 ISSN 2229-5518 IJSER © 2016

http://www.ijser.org back in the 80’s and 90’s, but due to Apple continued success in several

markets especially the cellphone market while Microsoft was failing in several business fields

especially in its online search engine business, it became possible (Apple History, 2015).

Apple’s success continued, even after its success maker Steve Jobs’ departure in 2011 and

Tim Cook taking his place, by continuing to develop its current products and introducing new

products like the most recent Apple Watch (Apple History, 2015)

Vision

Apple, Inc.’s vision, as found on their website, is “Apple is committed to bringing the best
personal computing experience to students, educators, creative professionals and consumers
around the world through its innovative hardware, software, and Internet offerings”

Mission

Apple, Inc.’s mission is stated on their company website and is the following: 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

54
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

Values

Apple, Inc.’s values can also be obtained from their company website and include the
following factors: We believe that we’re on the face of the Earth to make great products. We
believe in the simple, not the complex. We believe that we need to own and control the
primary technologies behind the products we make. We participate only in markets where we
can make a significant contribution. We believe in saying no to thousands of projects so that
we can really focus on the few that are truly important and meaningful to us. We believe in
deep collaboration and cross-pollination of our groups, which allow us to innovate in a way
that others cannot. We don’t settle for anything less than excellence in every group in the

company, and we have the self-honesty to admit when we’re wrong and courage to change.

55
Business Strategy

Apple Inc. has a clearly stated business strategy that can be found in their annual 10-K
reports. Their business strategy is as follows: The Company is committed to bringing the best
user experience to its customers through its innovative hardware, software, peripherals, and
services. The Company’s business strategy leverages its unique ability to design and develop
its own operating systems, hardware, application software, and services to provide its
customers new products and solutions with superior ease-of-use, seamless integration, and
innovative design.

56
The company believes continual investment in research and development and marketing and
advertising is critical to the development and sale of innovative products and technologies.
As part of its strategy, the Company continues to expand its platform for the discovery and
delivery of third-party digital content and applications through the iTunes Store. As part of
the iTunes Store, the company’s App Store and iBook store allow customers to discover and
download applications and books through either a Mac or Windows-based computer or
through “iOS devices,” namely iPhone, iPad and iPod touch. In January 2011, the Company
opened the Mac App Store to allow customers to easily discover, download and install
applications for their Macs.

The company also supports a The Innovative Success that is Apple, Inc. 4 community for the
development of third-party software and hardware products and digital content that
complement the Company’s offerings. The Company’s strategy also includes expanding its

57
distribution network to effectively reach more customers and provide them with a high-
quality sales and post-sales support experience.” (Apple Inc., 2015). The mission, vision,
strategy and goals define decision making at the company and provide a framework for day
to day business flow. Target Market Apple’s target market focuses on marketing to people
with a few different characteristics. Apple’s main target market is middle to upper class
people because usually this demographic has the means necessary to pay the higher premium
price for Apple products (Gaille, 2015). IJSER International Journal of Scientific &
Engineering Research, Volume 7, Issue 3, March-2016 412 ISSN 2229-5518 IJSER © 2016
http://www.ijser.org These people are willing to pay a little extra for quality and have the
income to do so. 94% of Apple users are more affluent than those who purchase other brands
of mobile devices (Gaille, 2015). Millennials are also a huge target market for Apple as
Millennials are typically hooked on technology more than other generations and are seeing an
influx of money. The average age of an Apple customer is 35 – 44 and 1 in 4 people in the 18
– 34 age demographic say they plan to purchase an Apple product within the next six months
(Gaille, 2015). Apple also targets those who enjoy music. Apple’s products are all focused on
the iTunes store and the ease of music downloads. People who enjoy music and want an easy
way to store, share and purchase music are drawn to Apple products (Gaille, 2015). Also
professionals in the media and design fields also find Apple products to be preferable because
Apple products pride themselves on making creative functionality a key factor in all of their
devices (Gaille, 2015).

58
Markets and Distribution

Apple has many retail and online stores where they sell their products, and third-party
products, directly to the customers (Apple Inc., 2015). They also employ third party, indirect,
distribution channels to sell their products such as cellular network carriers, wholesalers and
retailers (Apple Inc., 2015). In 2014 Apple Inc.’s net sales through its direct sales channels
accounted for 28% of their total net assets and 72% was accounted for through their indirect
distribution channels (Apple Inc., 2015). Apple Inc. believes that by employing

59
knowledgeable salespersons they can enhance the sale of their products (Apple Inc., 2015).
They believe these salespeople can convey to the buyer the importance of the hardware and
software integration and demonstrate the vast capabilities of Apple products better to the
consumer (Apple Inc., 2015). Apple’s vast retail store locations are typically located in high-
traffic locations in quality locations in order to better attract their desired customers (Apple
Inc., 2015). The stores are all designed to simplify and enhance the products in order to
ensure a high quality customer buying experience and to attract new customers (Apple Inc.,
2015). Apple Inc. has also invested in programs with third party sellers to enhance the display

of Apple products IJSER International This program is called the Apple Premium Reseller
Program (Apple Inc., 2015). Apple has also committed itself to helping the education system
by delivering solutions to help educators teach and students learn (Apple Inc., 2015). Apple
believes that by effectively integrating technology into the class room students can have a
higher level of learning and achieve a higher level of education (Apple Inc., 2015). Apple has
designed a range of products, services and programs to address the needs of education. Apple
also has a mobile learning platform that allows access to education related materials through

60
the iTunes U store (Apple Inc., 2015). The iTunes U store allows students and teachers to
share and distribute educational material online (Apple Inc., 2015). Apple sells these products
to educators through its direct sales force, third-party resellers and its online and retail stores
(Appls (Apple Inc., 2015). Apple also sells its hardware and software products to enterprise
and government customers (Apple Inc., 2015). Their products are favorable in these markets
because of their performance capabilities, productivity, ease of use and seamless integration
into information technology environments (Apple Inc., 2015). Apple’s products are
compatible with most thirdparty applications and services and the products tools enable the
development and secure delivery of custom applications (Apple Inc., 2015). In July 2014
Apple announced a partnership with IBM to offer an application called MobileFirst for iOS
providing a new class of industryspecific mobile solutions (Apple Inc., 2015). Apple also
implemented AppleCare for Enterprise, which is a new service and support product tailored
to the needs of enterprise customers (Apple Inc., 2015). Industry Analysis Competitive
Rivalry Apple faces a strong competitive rivalry force or strong competition. This means that
Apple’s competitors have a huge influence on each other. Apple is in direct competition with
other hardware and software suppliers such as Google, Microsoft and Samsung (Mavrick,
IJSER International Journal of Scientific & Engineering Research, Volume 7, Issue 3, March-
2016 414 ISSN 2229-5518 IJSER © 2016 http://www.ijser.org 2015). All of these
companies, Apple included, spend significant capital on Research and Development as well
as Marketing in order to keep up with and potentially out due each other. One major factor
that keeps the industry highly competitive is the low cost of switching companies (Mavrick,
2015). It does not require substantial capital for a customer to move from Apple’s iPad to a
Google Chromebook or any other tablet computer, for example. The industry competitiveness
is a key consideration for Apple, and one it has dealt with through continually developing
new and unique products in order to strengthen its market share (Mavrick, 2015). Apple also
combats price-based competition by staying away from low end markets and ensuring high
end products (Sophlee, 2015). Since Apple products never go on sale they have been able to
position themselves in consumers’ minds as high end products with great quality, great
customer service and unique products (Sophlee, 2015). Buyer Bargaining Power As
mentioned above, there is a low switching cost for consumers in this industry. This aspect
strengthens the buyers bargaining power and is a key force that Apple should consider when
making decisions. There are, however, two different types of buyer bargaining power that we
must consider; individual buyer bargaining power and the collective buyer bargaining power
(Mavrick, 2015). As an individual buyer your bargaining power is low because the loss of

61
any one customer to a company is negligible when it comes to the amount of revenue lost
(Mavrick, 2015). However, the bargaining power of the collective buyer is very high and the
loss of numerous buyers to competitors could be potentially detrimental to the company and
will significantly affect revenues (Mavrick, 2015).

Apple has combated this force by continually investing in research and development to
continuously develop new products such as the Apple Watch and Apple Pay (Sophlee, 2015).
Apple also tries to increase the switching cost for their products by keeping critical product
features the same and easily transferable across Apple products only; such as contacts,
calendar, Pages, Numbers, iCloud, iPhoto, iMovie and etc (Sophlee, 2015). IJSER
International Journal of Scientific & Engineering Research, Volume 7, Issue 3, March-2016
415 ISSN 2229-5518 IJSER © 2016 http://www.ijser.org Supplier Bargaining Power The
bargaining power of suppliers is very low in this industry. The bargaining position of
suppliers is weak due to the large number of potential suppliers Apple has to choose from
(Mavrick, 2015). Apple is free to choose from a vast array of potential suppliers for its
component parts for all of its products (Mavrick, 2015). The switching cost for Apple to
move between suppliers is relatively low and not a significant obstacle, giving Apple more
leverage over suppliers (Mavrick, 2015). Apple also requires a large volume of product
which gives them more power over the suppliers. Since Apple requires a large volume of
products, Apple is a major customer for any supplier; therefore, suppliers will fight to keep
Apple as a customer in hopes to not lose their business and money (Mavrick, 2015). Apple
has taken their power to another level by designing their own chips (Sophlee, 2015). By
designing their own chips Apple has greatly reduced the supplier power of chip suppliers
(Sophlee, 2015). Apple has also bought the manufacturing equipment necessary for
producing their part components and only allows the equipment to be used for the
manufacturing of Apple components (Sophlee, 2015). Apple keeps increasing their power
over suppliers and driving down their costs while forcing their competitors to find different
manufacturers and suppliers (Sophlee, 2015). Threat of Substitutes The threat of substitutes
in the industry is moderate. Substitutes would not include the same products but like products
that might satisfy the same need for the product. Apple stays ahead of the game in this aspect
by creating products that replace their own products before someone else can do it (Mavrick,
2015). Apple has created a cheaper version of the MacBook in order to mitigate the threat of
another companies substitute (Sophlee, 2015). Apple created a substitute for their own

62
product so they would continue to profit off of the substitute instead of losing that business to
a competitor. Apple has also created the Apple Watch to replace the need for an iPhone
(Sophlee, 2015). The Apple Watch can perform the same functions as the iPhone but is more
compact and easier to transport everywhere (Sophlee, 2015). Another IJSER International
Journal of Scientific & Engineering Research, Volume 7, Issue 3, March-2016 416 ISSN
2229-5518 IJSER © 2016 http://www.ijser.org substitute for a iPhone would be a land line
telephone but the threat of a land line is very minimal as an iPhone can perform many more
functions that a land line (Sophlee, 2015).

Also a desk top would be a substitute for a MacBook, however, a MacBook can perform all
the functions of a desk top at the same speeds and in some cases even faster minimizing the
threat of this substitute (Sophlee, 2015). Apple tries to stay ahead of their competitors in all
factors even if it means potentially retiring their own products with their new products.
Threat of New Entrants The threat of new entrants in this industry, that could actually affect
market share, is relatively low. This is due to the extremely high cost of establishing a
reputable company within the industry that already has established well respected and trusted
companies (Mavrick, 2015). There is also a high cost associated with establishing a brand
reputation that would exceed existing brands (Mavrick, 2015).

Any new entrant into the market for personal computers or smartphone would need to have
extensive capital to spend on research and development and manufacturing to develop and
produce products prior to even entering the market (Mavrick, 2015). Customers are already
loyal to existing companies that have been around since the beginning and breaking this
loyalty would cost a massive amount of money in marketing as well (Mavrick, 2015).
Though it is possible for a new company to enter the market and be successful, at this time it
is very unlikely (Sophlee, 2015). Apple has also created a supply chain that exists in their
favor and has a great defense against low end disruption from new entrants (Sophlee, 2015).
New entrants would find it very difficult to compete with Apples supply chain cost structure
(Sophlee, 2015). Ethical Issues Industry wide Ethical Issues The consumer electronic
industry has changed the way individuals live their lives. For many reasons we have
incorporated these devices into our daily activities.

63
 This particular industry is one of the most lucrative around the globe. Although it is
recognized as one of the IJSER International Journal of Scientific & Engineering Research,
Volume 7, Issue 3, March-2016 417 ISSN 2229-5518 IJSER © 2016 http://www.ijser.org
most lucrative industries, it is definitely not recognized as being the most ethical industry
(Mawson et al., 2016). The high-tech products, that are widely used, are manufactured in
factories with harsh working conditions (Mawson et al., 2016). This is a recognized issue in
this industry and many cases and issues have developed for these major corporations that
participate in the electronics industry (Mawson et al., 2016). Companies such as Apple,
Microsoft, Google, and Samsung are competing to create the latest and greatest in consumer
electronics (Mawson et al., 2016). Manufacturers in this industry are facing heavy amounts of
pressure to produce and meet requirements. Products are taking precedence and being moved
through the supply chain much faster, all while the health and safety of the factory workers is
being dismissed (Mawson et al., 2016). Majority of electronic companies are outsourcing
manufacturing and value chain activities, it is known that these resources are much cheaper
abroad (Jefferies, 2014). Benefits are created for an organization when involving outsourcing;
many of these corporations are also using the benefits of outsourcing as a way of getting
around fair labor practices, even dismissing their own standards regarding company codes of
conduct (Jefferies, 2014).

Awareness has risen regarding these issues that have not yet truly been addressed. Journalist
and activists have been documenting and reporting on all conditions involving these
manufacturing facilities, bringing light to these issues and wanting solutions put in action
(Jefferies, 2014). For many years now negative reports in newspapers and magazines have
damaged the reputations of companies such as Apple, Dell, IBM, Lenovo, Motorola, Nokia,
Sony, Toshiba, and many others (Jefferies, 2014). From an ethical standpoint, the biggest
flaw in this industry is in the outsourcing of the manufactured goods. This industry wide flaw
makes it near impossible to find an electronic product that is produced ethically (Jefferies,
2014). These corporations must remember and keep in mind that, regardless how large the
corporation is, they still have a social responsibility to the public (Jefferies, 2014). Not only
are they in the business of developing and producing the IJSER International Journal of
Scientific & Engineering Research, Volume 7, Issue 3, March-2016 418 ISSN 2229-5518
IJSER © 2016 http://www.ijser.org latest and greatest in electronics but they also must
maintain a responsible presence with the public (Jefferies, 2014). There are some
corporations in the industry that have made initiatives for “greener” products. Meaning that

64
attention is placed on the materials that are being used in manufacturing and the value chain
is monitored and reported (Hawthorne, 2012). Initiatives and policies have been put in place
servicing all fronts of company operation in order to be effective and maintain good face in
the public eye (Hawthorne, 2012). Several companies have become “greener” and
environmentally friendly; most have partnered and participated in recycling electronics and
energy efficiency in the delivered products (Hawthorne, 2012). In doing so, these
corporations are painting an image aimed towards openness and transparency for their end
user and the public (Hawthorne, 2012). These major corporations are in business for the long
haul, they are here to deliver and change consumer electronics entirely for many years to
come. They should to be aware of all facets in their business; everything should be created
and produced whole heartedly with the right intentions and no one should be taken advantage
of. Apple Inc.’s

65
Ethical Issues

Apple has encountered many different ethical issues as an organization during their tenure.
The issues have ranged from things such as child labor law violations, workers natural rights
being violated, workers low wage cases, to unethical methods of hiring. These are some
ethical issues that have come to light; however, it would not be a surprise if there were more
violations that are still unknown. Apple was mentioned in a 2016 report, published by
Amnesty international, detailing how human rights were being abused in the mines of the
Democratic Republic of Congo (Ethical, 2016). These mines supply cobalt, a key component

66
in the lithium-ion-batteries that are used in all of Apples electronic devices. More than 20%
of cobalt is currently exported from the DRC (Ethical, 2016). The work conditions in these
mines are brutal for those that are heavily IJSER International Journal of Scientific &
Engineering Research, Volume 7, Issue 3, March-2016 419 ISSN 2229-5518 IJSER © 2016
http://www.ijser.org involved and working and have men, women, and children working
night and day (Ethical, 2016).

The supply chain is what links this activity to Apple and the final products that are
distributed to its consumers. The cobalt is collected from the mines and sold to
manufacturers, distributors and suppliers (Ethical, 2016). These manufactures, distributors
and suppliers then sell the cobalt to different companies including Apple (Ethical, 2016).
Amnesty international contacted Apple regarding its findings of the working conditions in the
mines and Apple stated that they were currently evaluating whether or not the cobalt in its
products originated from the DRC (Ethical, 2016). With regard to child labor, Apple stated
“Underage labor is never tolerated in our supply chain and we are proud to have led the
industry in pioneering new safeguards. We not only have strict standards, rigorous audits and
industry-leading preventative measures, but we also actively look for any violations. Any
supplier found hiring underage workers must 1) fund the worker’s safe return home, 2) fully
finance the worker’s education at a school chosen by the worker and his or her family, 3)
continue to pay the worker’s wages and 4) offer the worker a job when he or she reaches the
legal age (Amnesty International, 2016).” Apple also stated, “We have been reporting on our
supply chain for 10 years because we believe in transparency and the feedback that comes
with it makes us better. Of more than 1.6 million workers covered in 633 audits in 2014, our
auditor’s uncovered 16 cases of underage labor and all were successfully addressed. We take
any concerns seriously and investigate every allegation (Amnesty International, 2016).” It is a
positive factor that Apple has a policy in place regarding findings of child labor but only 16
cases have been documented. What if there were more that we are not of aware of and might
have not been addressed? There have been allegations made for several years now that child
labor is an issue with organizations like Apple. There have been lawsuits filed against four
major tech firms, including Apple, that involve salary and job mobility (Prasad, 2013). These
cases arose through the finding of emails that were exchanged between Steve Jobs, Eric
Schmidt and other industry competitors IJSER International Journal of Scientific &
Engineering Research, Volume 7, Issue 3, March-2016 420 ISSN 2229-5518 IJSER © 2016

67
http://www.ijser.org discussing how they would not poach each other’s valued engineers
(Prasad, 2013). Due to this deal workers were unable to find another job at a different firm
(Prasad, 2013). This allowed salaries to be determined and capped by employers; if
employees are unable to move around and seek higher paying jobs then the company can
fully control salaries (Prasad, 2013).

The case received considerable attention and involved high dollar amounts as well as specific
demands from both workers and employers (Prasad, 2013). Another issue Apple has faced is
accusations of unethical hiring practices in its supply chain. When this issue came to the
attention of Apple, they quickly resolved it. Apple reported that its supplier was using
recruiters who were charging potential employees a fee and Apple insisted that the recruiters
repaid all employees who were charged the fee. Workers who were charged this fee typically
raised the cash by taking a loan from the company that tied them to employers—a modern-
day version of the ancient practice of bonded labor. Apple made its suppliers return $4
million dollars to its 4,500 workers. Individual’s rights shall not be violated and no terms
should be set with employees that violate their rights. Apple must continue to evaluate and
report on possible cases such as these. An undercover investigation was conducted into
factories in China where Apple products are assembled. The investigation filming of Apples
production line showed works falling asleep at their positions due to working 16 hour shifts
for 18 consecutive days (Wopschall, 2011). The undercover reporters found that standards
were being breached on the factory work floor (Wopschall, 2011). Apple had often claimed
to protect its Chinese workers from the violation of their rights but this documentary proves
that they have failed to do so (Wopschall, 2011). The factory workers were still facing the
harsh conditions of twelve individuals to a room, twelve to sixteen hour work days, over
fourteen consecutive days working and denied requested time off (Wopschall, 2011). Apple
denied these allegations and has stated that they will be further investigated (Wopschall,
2011). IJSER International Journal of Scientific & Engineering Research, Volume 7, Issue 3,
March-2016 421 ISSN 2229-5518 IJSER © 2016 http://www.ijser.org Overall, unethical
practices are becoming a continuous trend across all industries. A nature that is unlikely to
stop due to the money that is saved from these unethical practices. The companies will
continue to claim they are investigating and looking into the claims but in actuality they will
not be completely addressing the problems. Could this be the cost of doing business on such a
global scale? Firms, like Apple will continue to pay the fines, take the bad publicity, and

68
address some problems because in the end the fines and bad press are cheaper than practicing
ethical behavior in their factories around the globe.

Industry Financial Analysis

Apple announced the biggest profit in history with net income of $53.4 Billion. As shown
Apple’s 10-K financial reports for fiscal year 2015, the latest set of annual reports available,
Apple’s full year total revenue totaled $233.7 Billion and net income almost reached $53.4
billion, which is an increase of 26% from the previous year where revenues totaled $39.5
billion. This has been driven by their expansion into the international market using different
69
products and services. The increase in revenue has been promoted by the massive increase in
iPhone 6 and iPhone 6s sales in the last year. The product has proved to be a benchmark in
the mobile handset industry dominating the market of major suppliers like Samsung and
Nokia. This was driven by the nature of the product as the style and application features
appeal to many people around the world. The company has also allocated a lot of resources to
the marketing department. This has led to the increase in market share in international
markets hence the increase in sales of the iPhone and revenue. This is evident from the fact
that international sales of different products by the company accounted for 62% of total
revenue. This shows that there is a shift in trend in the International market as more people
are willing to get Apple products.

The company also has benefited from the sale of other products such as the Apple watch and
mac. These products have also contributed heavily to the good performance of the company
by creating an increase in revenue. The Mac was released in the end of the last IJSER
International Journal of Scientific & Engineering Research, Volume 7, Issue 3, March-2016
422 ISSN 2229-5518 IJSER © 2016 http://www.ijser.org quarter in 2015 with great and new
features that got the attention of technology lovers around the world. This means that it has a
lot of potential to perform better this year. This can lead to higher revenues for this product
and forecast good results for the year 2016. As Exhibit 1 provides, Apple’s return on assets
and net profit margin ratios for 2015 increased by almost 1.3% each comparing with the year
before. The asset turnover of 2015 remained at the same as what it was in 2014, but the
inventory turnover slightly increased in 2015, which explain that the company did well if we
compare it with 2014. However, in 2013 the assets and inventory turnover were slightly
improved than the one of 2015. This explains when the company was expanding in purchase
of more inventories in the year of 2013. These inventories were driving the company towards
a great performance in future. The year 2014 saw a slump in inventory as the company
focused more on the production process. These efforts led to the production of the Mac
computer in the year 2015, which was a massive boost for the company’s sales. The year
2015 also witnessed the production of the iPhone 6 and iPhone 6S, which were global, hits in
terms of production. The year 2015 was very busy for the company as it led to new products
being launched in the market and setting up of future ventures that would lead to growth in
the company. Exhibit 2 shows the income statements for Apple, Samsung, Google, and
Microsoft for the fiscal year 2015. Apple holds the biggest numbers regarding revenues, cost

70
of revenues, and net income. However, Apple spent less on research and development than
what the other three companies did. Talking about the R&D, Samsung, Google, and
Microsoft are spending almost the same on R&D despite the huge gap in their revenues.
Apple is unique from the other companies due to the blueprints that the company founder left
for future generations. The company has a lot of projects for the future that need proper
formulation of policies and strategies to develop. This is evident from the fact that the
company spends the least amount of money among the tech giants on research and IJSER
International Journal of Scientific & Engineering Research, Volume 7, Issue 3, March-2016
423 ISSN 2229-5518 IJSER © 2016 http://www.ijser.org development. R&D is vital for the
performance of any company as it helps to provide the clients with a new product that will
increase sales and maintain the market share

. The competition for new products is evident between Samsung and Apple as seen in the
quick response that Apple had when Samsung produced Galaxy S6 and Galaxy S6 edge. This
market share is important for the growth of any company as it provides a platform where
products can have a readily available market. Samsung has, however, invested more on
research and development as they hope to get a piece of Apple’s market share in America.
This is a stronghold for Apple products and it has a special connection with people in the
different states in America. It can be argued that most of the funds spent on R&D were to
benefit the company in getting a higher International market share. As what’s appear in the
table, Samsung has the second biggest revenue with 177.5 billion yet the cost of revenue
reached to 62% of the total revenue. Samsung and Google net income are almost the same
despite the fact that Samsung’s revenue was 58% higher than Google. Samsung also spent on
SG&A 44 Billon, almost twice as much as apple spending on SG&A. Samsung‘s net income
totaled with 16.856 Billion where Google and Microsoft net income reached to 16.348 and
12.186 Billion respectively. Where Apple net income is $53.3 Billion, which means 14%
higher than the other three companies combined! Samsung recorded the largest revenue due
to the fact that it was gaining an increasing in the market share from other countries abroad.
The company launched an initiative that saw it penetrate the International market hence the
high revenues recorded for that year. However, this venture came at a high cost in terms of
marketing and advertising their products in other markets especially in the United States. The
net income of Samsung and Google is almost as same as each other despite the massive
disparity in revenue between the two companies. This is because Samsung has a very high

71
cost of revenue compared to Google. Samsung and Google deal in different types of products
that a governed by unique principles. Google does not face a lot of competition from IJSER
International Journal of Scientific & Engineering Research, Volume 7, Issue 3, March-2016
424 ISSN 2229-5518 IJSER © 2016 http://www.ijser.org the market and has a very low cost
of operation. The company does not need to invest a lot of money into advertising compared
to the amount of revenue it generates from advertising. This is the main reason why Google
has a lower cost of revenue compared to Samsung, hence the similarity in the net income of
the two companies despite the high revenue for Samsung. However, Samsung and Google
still doing far better than Microsoft. Samsung spent a lot of money on SG&A compared to
the rest due to the need to create awareness of the product among people in the new market.
If the company gets a good percentage of the market share in the United States, then it will
record a higher net income in the 2016 financial year. This is because less money will be
spent to increase sales for the different products. These figures are normal for a company like
Samsung when venturing into a market that has a very high level of competition.

The net income of a company refers to the total profits that a company accrues after covering
all costs and paying of tax. Return on assets refers to the profitability of a company compared
to its total assets. ROA shows how the managers of a company are using the assets of the
company to generate revenue. Return on sales is used to know the level of operational
efficiency of the company. ROS is calculated by dividing Net income by the interest from
sales. This shows the amount of profits that the company is making from any sale that is
made in a business transaction. Inventory turnover on the other hand shows how a company
is selling and replacing its inventory. As demonstrated in Exhibit 3, Apple is the most
profitable company of the four as it has the highest level of net income. Apple enjoys the
highest return on assets among the four companies, where Microsoft and Samsung having the
lowest. This means that Apple is utilizing the assets of the company better in creating value
and profit. Return on sales shows that Samsung is the least efficient in terms of operations
among the four companies. Apple has the highest level of operational efficiency which means
that it is working at greatest levels. Inventory turnover is the most significant indicator of
performance because it shows the rate at which IJSER International Journal of Scientific &
Engineering Research, Volume 7, Issue 3, March-2016 425 ISSN 2229-5518 IJSER © 2016
http://www.ijser.org products are being purchased from the shelves. Exhibit 3 shows that
Apple is moving their products at a higher speed compared to the rest of the companies. This

72
can be the reason behind the good performance of the company. Google has no inventory
turnover since it generates most its revenue from advertisements and online transactions.
Exhibit 3 clearly shows that Apple had a very good financial year compared to the rest of the
companies. Exhibit 4 shows how the share price of the four companies has been performing
in the last three years. Microsoft has recorded a continuous positive increase in its share value
for the last three years despite the low revenue that it records every year. Google has no data
for the years 2013 and 2014 and that because the company, on March 27, 2014, splits its
shares as 2- for-1 stock. However, the increase of the value of the share by more than 22%
shows that the share price is heading in the right direction. The share price of Samsung has
not made major gains in the last three years, which can be attributed to the expansion
programs and high costs of revenue.

When the company stabilizes and gets a good percentage of the market share the prices can
start making substantial gains. The share price of Apple has made significant gains since
inception with the highest gain being made in the year 2015. This can be attributed to the
revenue accrued from International markets. The graph in Exhibit 4 clearly shows that Apple
prices are more volatile compared to the rest of the companies. Apple has made the highest
gains and losses in the last three years. This means that Apple is a good investment
opportunity if a person can get a good entry price into the market. Samsung is ranging at the
opening prices for the year 2013. This shows that the company is not growing as expected
which can be attributed to different situations in the company. Microsoft is more volatile than
Apple but it has an upward trajectory that shows good signs on the performance of the
company. Microsoft and Apple are the good investment objectives in the four companies
under discussion. IJSER International Journal of Scientific & Engineer 4 As it shown in
Exhibit 5, Samsung has the highest market share in terms of the amount of devices on display
at different shops. This can be attributed to the great marketing strategy being used by the
company. This is due to the need to entering into different markets around the world. Apple
has the second largest market share in terms of vendors, which is a significant number given
that they have just recently ventured into the international market. With not involving in the
distribution or production of smartphones Google has no market share. Microsoft is not
significant in the smartphone market share. There are other smartphones that are operating
well in the current market but share in the huge percentage of market share. The chart in
Exhibit 6 shows that Google’s Android operating system is the most dominant among the

73
competitors. A lot of smartphones are using the operating system due to the user-friendly
nature and the ability to access application via the Google play store. Apple’s iOS is only
used by the iPhone. However, 14% of the market share is not a bad number for a company
that does not outsource when it comes to software. Microsoft Windows phone is not widely
used by people around the world. This is because the company has not decided to venture
fully in the mobile devices market. Samsung has no market share as it uses Google’s
operating system in all its devices.

SWOT ANALYSIS

74
Apple Strength and weakness

75
Apple has many strengths as an established company they have created a stronbrand image
and brand equity. Throughout their many years as a company they have been able to create a
strong brand image through their effective innovation process (Smithson, 2015). They have
revolutionized their industry by creating products that are very user friendly and that can
easily connect with each other through the use of the cloud (Smithson, 2015). Due to this fact
Apple has been able to gain a huge customer base that comes with strong customer loyalty.
When a person buys an iPhone they will then want to get an iPad or MacBook so they can
easily connect all their devices and never miss anything no matter what platform they are
using This is one of Apples biggest draws when customers are deciding on what brand to
purchase. Apples sleek design throughout all of its products is also another selling point that
customers are drawn to when deciding what products to purchase.

Though Apple has many strengths and is a well-known established company, they do have
some weaknesses. Steve Jobs was the innovator that put Apple on the map with his ideas of
simplification and aesthetics of all products. After his death customers have become weary of
how Apple will continue to be a great company with great products after his death (Smithson,
2015). This has causes some people to turn to competitors and some loyal customers to
question their loyalty. Apple also has a limited distribution network that is limited to the high
end market. Apples products are all on the higher end of the price scale (Smithson, 2015).
Their competitors’ products are much cheaper than Apples; therefore, if people are unable to
afford their products they will go for the cheaper competitors’ products (Smithson, 2015).
Apple has also had some issues with their battery life in their products.

Apple products provide a vast array of functions and customers have complained that the
battery life in the products is not conducive with using these functions for a long period of
time (Smithson, 2015). With weakness comes opportunity.

Opportunity and Threats

76
Apple has some opportunity to improve. They can expand their distribution network in order
to reach a different market and tap in to some of their competitor’s market share (Smithson,
2015). They will also be able to reach more customers in the global market if they expand
their distribution network. Apple could also break into the application creation market.
Nowadays almost everyone has a smartphone or tablet all of which applications are becoming
more popular. Apple could create their own apps and join this vastly growing market. Apple
could also create more accessories for their products (Bhasin, 2014). The accessories market
is never ending and if Apple expanded in to this market they could see bigger profits from
customers (Bhasin, 2014). Apple faces many threats in the market of which the biggest are
Android and Samsung. The Android operating system is Apples number on threat as google
has positioned their Since the android operating system it is a free for all it is the number one
operating system in mobile devices (Bhasin, 2014).

On the other hand Apple has to compete with Samsung products on aesthetics of their mobile
devices. The threat of Android and Samsung has become much stronger over the past few
years since Steve Job’s death because the innovation Jobs brought to Apple is no longer there
(Bhasin, 2014). Apple has not produced a new innovative product that their customer base is
used to getting from Apple and because of this some of their customers have switched over to
Apples competitors (Bhasin, 2014). Apples brand equity is on the line and Apple needs to
start innovating if they want to stay in the running with Android and Samsung (Bhasin,
2014).

77
Samsung

Apples main hardware competitor is Samsung. Samsung is the world’s number one marketer
of mobile phones with a 21.4% of the world’s market share compared to Apples 13.9%
market share (Makos, 2015). Samsung also has strong manufacturing and marketing
capabilities as it has a long-standing relationship with retailers in the United States and
Europe (Makos, 2015). Samsung has also been able to effectively replicate many capabilities
of both Apple’s iPhone as well as Google’s Android operating system in their mobile devices
making them a very strong competitor (Makos, 2015). Samsung currently holds the market
share in smartphones, however, they are unable to match Apples marketing capabilities
causing its market share in the US to fall by 2.3% between 2014 and 2015 (Makos, 2015).
Samsung is also dependent on the software of another company as all of its devices run on
Googles Android operating system and many consumers view the Android operating system
as inferior to Apples iOS system (Makos, 2015). Many consumers view Apples products to
be more advances and dependable than Samsung’s (Makos, 2015)

Samsung has yet to break into the wearable technology market. Samsung could prove to be a
big threat to Apple if they were to break into this market successfully. Samsung could IJSER
International Journal of Scientific & Engineering Research, Volume 7, Issue 3, March-2016
429 ISSN 2229-5518 IJSER © 2016 http://www.ijser.org also introduce Samsung Pay to
compete with the currently available Apple Pay (Makos, 2015). Though Samsung is Apples
number one competitor Samsung falls short of Apple in many aspects of the business such as
marketing and brand equity. Samsung is also reliant on another company’s operating system
while Apple has their own (Makos, 2015). Though Samsung holds the top spot in research,
design and manufacturing capabilities they need to revamp their marketing and design efforts
in order to maintain their market share (Makos, 2015).

78
Google

Google owns and operated the Android operating system. The Android system is a launch
free operating system and is therefore able to be used by any manufacturing company who
need software to run their products. Due to this the Android operating system is running on
80% of the global mobile devices (Sun, 2015). All devices that run the Android operating
system come with the Google Play Store, which is where all applications are downloaded,
and Google retains 30% of all sales from the Play Store (Sun, 2015).

Also, Google has the Google Maps application which is more popular than the Maps
application that Apple operates (Sun, 2015). Google uses the Maps application to obtain user
information and is able to better cater their advertising to their users (Sun, 2015). 90% of
Googles revenues comes from advertising which is not necessarily good because if they were
to lose any advertising space or capabilities it could cut tremendously into their margins (Sun,
2015). In recent years Apple has slowly been carving Google out of its ecosystems replacing
Google with Bing as it default search engine on the iOS platform (Sun, 2015).

Apple has blocked Google Maps on its Apple Car Play and will enable ad-blockers for its
mobile Safari in the iOS 9 platform (Sun, 2015). This is not good for Google as it relied on
iOS for 75% of its mobile revenue in 2015 according to Goldman Sacks. Google could be in
trouble, after Apple completely cuts them out of their iOS operating system, since 90% of its
revenues come from advertising.

79
Microsoft (Exhibit 10)

When it comes to software Microsoft is Apples biggest competitor. Microsoft was the first
operating system that most people have grown up using and has created a great brand
reputation (Jurevicius, 2013). Few other brands can compete with Microsoft for this reason
and this is why Microsoft has more than 90% of the market share in PC OS (Jurevicius,
2013). Microsoft’s easy to use Windows and Office software also helps make Microsoft very
popular. Apple has its own version of Microsoft Office software called iWork, however, it is
not as popular as Office and because of this Microsoft created an Office version that is
compatible with Apples iOS system (Jurevicius, 2013). Microsoft also has strong distribution
channels working with companies such as Lenovo, Dell, Toshiba and Samsung to make sure
their computers are sold with pre-installed Windows software (Jurevicius, 2013). Microsoft,
on the other hand, was successful because they were the first starters in their industry;
however, since then they have been slow to innovate and have fallen behind competitors even
though they had the means necessary to innovate (Jurevicius, 2013).

Microsoft is also very depended on hardware manufactures since their product is software
based they are reliant on the companies they supply to (Jurevicius, 2013). Apple on the other
hand does both hardware and software and is reliant solely on themselves and has an
advantage over Microsoft in this aspect. Microsoft has yet to break into cloud based services
and could take market share from Apple if they were to explore this. They could also
consider moving in to the mobile advertising industry like Google to increase revenues
(Jurevicius, 2013). The market for smartphones and tablets is growing exponentially and if
Microsoft were to move into the hardware side of this industry as well they could potentially
gain vast market share from Apple (Jurevicius, 2013). Apple should be wary to Microsoft’s
next step because if Microsoft plays their card right they

80
RESEARCH METHODOLOGY

OBJECTIVE OF STUDY

 To study consumer motivation for buying a smart phone .

 To determine whether there is a significant difference between preference for features
of smart phone on the basis of gender .
 To analyze the consumer preference for brands of smart phone.
 To identify the most effective medium for advertisement of smart phone.
 To determine the effective price range for smart phone.

81
DATA COLLECTION

Various methods of collecting data are employed by social scientists,

researcher, investigators, philosopher, and thinkers. Here we will discuss the
varied dimensions relevant to: Data generation ,Responses and setting for data
collection.  The task of data collection begins after a research problem has
been defined and research design /plan chalked out. Researcher would have to
decide which sort of data he/she would be using for his study & what method of
data collection to be most suitable.

Meaning of data:

A statistical investigation deals with large mass of inter-related facts in the form of numerical
figures. These information in the form of numerical figures is generally termed as data.
Whereas sometimes data can be in the form of general description or elaboration too. or Data
are special type of information, generally obtained through observation, surveys, enquiries, or
are generated as a result of human activity for the purpose of research.

On the basis of method and sources by which the data is collected the data is classified into
two types:

82
 primary
data
secondary

PRIMARY DATA:

Those data which are collected afresh and for the first time and thus happen to
be original in character and known as Primary data. These data are in the shape
of raw material.

ADVANTAGE OF PRIMARY DATA :

 Original and independent collection increased the authenticity of data.

 Directly Collection enhance the reliability of data.
 Used in both quantitative and qualitative research methods.
 Hidden information can be collected through primary data.
 After analyzed primary data can be used as secondary data.
 Reliability depend on respondents information accuracy.

83
DISADVANTAGE OF PRIMARY DATA:

 Information can be bias.

 Expensive and time consuming in nature.
 Lack of experience among researcher.
 Requires field work.

84
 SECONDARY DATA:

Those data which have been collected by someone else and which have
already been passed through the statistical process or analyzed by
someone else are known as Secondary data. It is the data which may be
published or unpublished, but has been collected and is used for some
other purpose earlier.

ADVANTAGE OF PRIMARY DATA

 These data can be quickly manageable.

 Time and cost balance remains maintained.
 Information available is already analyzed by experts.
 Used to update data or reinterpret existing ones.
 Helpful for philosopher, thinker or authors for developing new concept.
 Field work is less.

DISADVANTAGE OF SECONDARY DADA

 No standard measurement of validity.

 Need expertise.
 Accuracy and reliability is always lesser than primary data.

85
RESEARCH DESIGN

1. Primary Research details:

Research procedures: The data were collected electronically through Facebook and using
Google Docs since they are both more advantageous in terms of convenience (time,
geographical dispersion of location and mobility for both: the group members of the research
and the respondents) and as they are less obstructive (absence of participant effects) to the
conductors of the research project. The survey was undertaken during 5 days in October, it
was distributed in one main Facebook group entitled “Sophomore students TBS” and other
groups. This allows getting very high response number equal to 110 participants who
answered all the survey questions. To increase the response rate, a full questionnaire
development process was undertaken.

2. Research Method
The questionnaire consists altogether of close ended questions to find the precise required
information and exhibit to the respondents the freedom of choice in order to save their time
when filling the survey, which sometimes follows rating scale and multiple choice questions.
The questionnaire was divided into two parts. The first part included information about the
sociodemographic profile of the participants (gender and age). The second part of the
questionnaire is designed according to the previous model mentioned in the first paper
notably the original Keller model. It will be dedicated to determine the brand recognition of
Apple in the level of iPhones and in term of to what extent Tunisian youths know about the
Apple brand (brand awareness) in addition to their opinions about the brand as reflected by
brand association held in target consumer's memory (brand image). By starting from this
model, we will demonstrate the importance of the marketing mix to help building the Apple
brand and we will shed the light upon the branding strategy that helps the company to gain a
sustainable competitive edge at the level of its product, price, place and promotion.

86
NEED OF ANALYSIS MARKETING ENVIRONMENT / NEED OF
STUDY

Apple Inc. has always been producing innovative and ingenious products, which
maintains their position in the external environment. Apple Inc. uses all forms of
advertising like television, Internet, and social networking websites to attract the
customers.
Apple Company’s target market consists of all men and women of ages 13 and above.
Mostly Apple Company targets:
1. Teenagers- to socialize with one another
2. College and universities students- to research for their studies
3. Business people – for dealing purpose and presentations for the business
4. Adults- fro every day’s needs to contact others.
5. Kids- to enjoy the spare time playing games.
Where, the Apple Company is advancing the products. The features of new
technology like iPhone 5 and iPhone 5C develops the great interest for consumers and
provides them with component lifestyles. Component Lifestyle is the practice of
choosing goods and services that meet one’s diverse needs and interests rather than
conforming to a single, traditional lifestyle. Component lifestyles have evolved
because consumers can choose from a variety of goods like iPhone, iPod, MacBook,
iPad and many more and many consumers have money to exercise more options.

The increase in available technology and the proliferation of screen-based

technological devices is having an impact on how Americans spend their time. Apple
Company has taken advantage of this increase. They produce the laptops that are
much easier to carry around and also save time. The iPhone are advanced and have a
lot new features as compared to the old ones. Demography is the study of people’s
vital statistics, such as age, race, and ethnicity, and location. These factors are
significant because the basis of all market is people. For Apple Company consumer
buyer’s behaviour is very much important because if the products and services
provided by them is not satisfying the buyers then there is no point of the strategic
planning of the company. Population is divided into different groups that are called

87
Tweens, teens, generation Y, generation X, and baby boomers. Apple Company has
been successful in introducing the products in each and all of these groups. All groups
are attracted to the new-featured products. Apple company designs and focuses on the
desires and needs that all population will be attracted to regardless to their ages. This
is the only reason why Apple is considered as the top innovative company. Consumer
behaviour Apple has amassed a brand loyal following like no other brand backed by
significant sales, market share, and profitability. Marketing using consumer behaviour
insight is how Apple succeeds. Even though Steve Jobs and Apple, did not use
consumer research in the initial development of most products, consumer behaviour
plays a huge role in their marketing and ultimately the success of the company.

Once a consumer purchases a product or downloads iTunes Apple has access to data
the company leverages. Apple uses this information to gain significant insight into the
consumer and what drives purchase behaviour. Apple has amassed a brand loyal
following like no other brand backed by significant sales, market share, and
profitability. ... Once a consumer purchases a product or downloads iTunes Apple has
access to data the company leverages. Consumer behaviour or consumer buying
behaviour are all the aspects that affect consumers' search, selection, and purchase of
products. An example of a new trend developing in society is children's influence on
their parents' purchases. ... Kids today are major factors in the purchase of expensive
products.

88
 PROBLEMS / LIMITATION OF STUDY

Climate change, environmental reporting, habitats & resources, pollution and toxics,
arms & military supply, human rights, workers' rights, supply chain management,
irresponsible marketing, anti-social finance, and political activities. Apple's biggest
problem isn't a slow-down in the Chinese economy or the US-China trade war, which
has been blamed for a big downward revision in sales. Its biggest problem is taking
consumers for granted at home and abroad. Apple product use the App Store to
control what software can and can't run on your devices, based on capricious and
political grounds.
In terms of control, that's certainly true on iOS but not true on mac OS, at least not
yet.
 Thwarting smaller competitors
 Dishonest corporate policy
 E-waste and environmental destruction
 Financial affairs
 Harsh labour conditions and child labour accusations • Collaborations with the U.S.
government and the NSA

89
SCOPE OF STUDY

Analysis of consumer behaviour

Have you ever wondered why Apple is so successful? They were not the first
company to invent the personal computer, portable music device, the tablet, the
smartphone, software to download music, or the set-top box to name a few. Apple has
amassed a brand loyal following like no other brand backed by significant sales,
market share, and profitability. So, how does Apple do it? What’s the secret behind
their success? Marketing using consumer behaviour insight is how Apple succeeds.

Even though Steve Jobs and Apple, did not use consumer research in the initial
development of most products, consumer behaviour plays a huge role in their
marketing and ultimately the success of the company. Once a consumer purchases a
product or downloads iTunes Apple has access to data the company leverages. Apple
uses this information to gain significant insight into the consumer and what drives
purchase behaviour. The Wheel of Consumer Analysis Understanding concepts of
consumer behaviour at a high-level involves a framework to gain actionable insight
from consumer research.

90
 The wheel of consumer analysis

provides a framework to study consumer behaviour consisting of:

 Affect and cognition
 Consumer behaviour
 Consumer environment

Research focused on the consumer provides specific insight involving affect and
cognition, consumer behaviour, and the consumer environment that the company can
use to reach its target audience effectively guiding the knowledge structure and
decision process of the consumer. Now let’s discuss the three areas of the framework.

91
Significance of study

In psychology, the affective system is defined as the way individuals respond to

outside stimuli. The affective system in an individual is purely reactive and includes
moods, emotions, and any other special feelings that may ignite a physical reaction.
According to Peter and Olson, “Because it can account for many of the responses that
environmental stimuli elicit from individuals, classical conditioning has important
implications for marketing and consumer behaviour”.

Apple and Affect For example, the brand assets especially the brand logo changed in
1998 is sleek and modern chrome color (monochromatic) aligned with the direction
that Steve Jobs had for the company upon his return in 1997. The new logo
repositioned the brand effectively for a new century in the mind of the consumer
retaining the shape of the apple and modifying the rainbow color to chrome creating
an effective response from consumers. In a 2008 study by Duke University, it was
reported that the Apple monochromatic logo made individuals more creative and
stimulated the brain based on exposure to the logo.

Apple does an amazing job of leveraging their brand assets such as the logo and brand
messages across all communication channels and products in its ecosystem.

92
Cognition

The cognitive system performs mental processes including understanding, evaluating,

planning, deciding, and thinking. Cognition is defined as a consumer’s knowledge,
meanings, and beliefs about Apple, in this case, based on experience and retained
memory. The feelings, moods, evaluations, emotions of the affective system are
related to the cognitive system and effect cognitive processes (knowledge, meanings,
and beliefs). The Major Functions of Cognition The major functions of an
individual’s cognitive systems include interpretation and the ability to process
interpretations to execute cognitive activities.

Consumer decision-making consists of cognitive processes including; Interpretation

Integration of knowledge Retrieval of product knowledge from stored memory used
in the integration process The insight obtained from consumer behaviour research is
critical in the development of effective cognitive marketing strategies that resonate
with the target audience. An understanding of how consumers interpret marketing
strategies, the consumer integration process, and activation of product knowledge
result in critical insight for Apple. Apple uses this insight to market its products and
retain their competitive advantage in the marketplace.

The consumer research Apple conducts related to cognition provides an understanding

of how the target audience acquires and stores memory along with other important
memory factors such as shopping scripts or product schemas. The types of knowledge
(general or procedural) that the different marketing strategies and tactics activate are
also important elements that influence marketing strategy. Apple and Cognition The
company occupies a certain cognition based on Apple creating a context for their
products focused on developing an eye-catching, simple design, and ease of use for
complex technologies resulting in significant benefits for the consumer. Apple also
positions each product emphasizing its innovations and communicating differentiated
benefits to its consumers effectively.

93
Consumer Environment

A consumer’s environment is based on the social and physical attributes of the world
around them that includes spatial relationships, physical objects, and the social
behaviour of other individuals. The physical environment including influences such as
reference groups and online and offline retail environments also have a large impact
on Apple’s success. The Apple retail environment, word of mouth, product
experience, and Apple’s mission and values play a large part influencing the purchase
behaviour of Apple products in the marketplace. Apple and the Consumer
Environment A major supplier of big-box retailers, Apple has branded stores that are
the number one competitor for these large companies. The brand loyalty of Apple
dominates the physical environment and therefore captures significant attention and
focus in the retail (consumer) environment.

94
TYPE OF STUDY

Apple and Other Retailers

To gain a competitive advantage in the physical environment, Apple uses strict

control over key elements. Apple dictates pricing and how their products are
displayed with retailers and especially with big-box retailers.

Apple Brand Stores

To create a unique customer experience Apple uses branded stores. The Apple store
creates an interoperability between its hardware devices such as computers, tablets,
smartphones, music players and watches that showcase capabilities such as video,
music, photography, apps, and software. The Apple branded stores leverage product
knowledge and complementary services. The instore experience includes one-on-one
tutorials, product repairs, and workshops to provide an unparalleled customer
experience. The complementary services enhance the value proposition because if a
customer can operate a new purchase, then customer satisfaction will increase. Apple
uses this among many other devices to dominate in the physical environment.

95
Apple and the Digital/Mobile Environment

The iTunes software developed by Apple has transformed the way people consume
media. The new consumption methods for music, video, photography, and apps has
allowed Apple to rule the digital and mobile landscape. Apple’s focus on the customer
experience takes data from iTunes and other sources. The data is used to update the
software and lock in brand loyalty. Apple’s strategic presence in the retail, digital, and
mobile landscape demonstrates how Apple captures and holds the consumer in the
physical environment. Apple’s obsession with consumer behaviour and customer
experience drives provides the central focus for the company. Consumer behaviour
marketing explained using the wheel of consumer analysis provides a context to
explain Apple’s success. The way that Apple communicates its marketing messages
using an integrated marketing communications (IMC) approach provides the
complementary method for Apple to achieve success.

96
HYPOTHESIS

H1 : Using the report on consumer satisfaction on ios , we knew that consumer is

satisfied due to the uses of ios software as they get better features than android and
safety that ios provide is incredible.

H0: Compare to the android ios is more costly and not everyone can afford it .

97
TOOLS AND TECHNIQUES

 Net promoter score

 Live chat
 Social media mentions
 Marketing emails
 Short message service
 Churn rate
 Follow up surveys
`

98
DATA ANALYSIS AND INTERPRETATION

The data were collected electronically through Facebook and using Google Docs since they
are both more advantageous in terms of convenience (time, geographical dispersion of
location and mobility for both: the group members of the research and the respondents) and
as they are less obstructive (absence of participant effects) to the conductors of the research
project. The survey was undertaken during 5 days in October, it was distributed in one main
Facebook group entitled “Sophomore students TBS” and other groups. This allows getting
very high response number equal to 110 participants who answered all the survey questions.

99
Q.1. Please mention your age group ?

18-20 10
21-25 14
26-30 16
31-35 10
36 above 10

17% 17%

17%
23%

27%

18-20 21-25 26-30 31-35 35 above

INTERPRETATION : Age group between 21-25 and 26-30 uses maximum gadgets so
main focus of the company should be on them .

100
Q.2. What are the things that you look while purchasing a smart phone

More power saver 12%

Looks 21%

Law maintenance cost 5%

Reliability 40%

Low price 21%

INTERPRETATION : Users prefer to use those mobile phones which are good in
reliability instead of features .

more power saver

low price

looks

low maintenance cost

reliability

more power saver looks low maintenance cost

reliability low price

101
Q.3. How did you get to know about Apple?

Family information 30%

Friend recommendation 25%

Dealers recommendation 10%

Advertisement 35%

INTERPRETATION : Users get to know about apple through advertisement more

after that family recommendation , so the company should focus on more advertisement
and build good relationship with customers.

family recommendation friend recommendation dealers recommendation advertisement

102
Q.4. Which smart phone is easy to use ?

Android 65%

Apple 35%

INTERPRETATION : People still find apple mobile hard to use because of its features
company should focus on more easy to use options in mobile and some easy features.

android apple

103
Q.5 Which smartphone has more customer satisfaction level?

Apple 58

Android 42

INTERPRETATION: Apple gives more customer satisfaction level of needs than

android gives . as apple gives warranty full 1 year with the accessories whereas android
dosent provide such support.

apple android

104
Q.6. Which smart phone is better in terms of marketing ?

Android 55

Apple 45

INTERPRETATION: Apple gives more marketing competition than Samsung as Apple

is more creative in terms of clever advertisement than android.

apple android

105
Q.7 Which smartphone company gives better software customization features?

Apple 45

Android 55

INTERPRETATION: Android gives more attention towards software customization

functions than apple.

apple android

106
Q.8. Which company is better in terms of overall design ?

Apple 58

Android 42

INTERPRETATION : Apple has better design than android, as apple gives more
attention towards its design and style than android.

apple android

107
Q.9. Which company provides better software compatibility?

Apple 45

Android 55

INTERPRETATION : in this race software compatibility android is in position to

capture the whole market but they should also know thar apple is not far away from
android .

APPLE ANDROID

108
Q.10 Which company provides better battery life?

Android 65

Apple 35

INTERPRETATION: Android has better battery life than apple smartphone, company
should increase the battery life of apple smartphone.

android apple

109
FINDINGS

 Samsung is the company which basically knows the mind set of maximum citizen and
they know which product is helpful for increasing sales.
 Its water tight pack department competition between two giant companies apple and
Samsung
 It shows that there is a very high competition between two giant organization named
apple and Samsung
 In this race Samsung is in a position to capture the whole market buy they should also
know that apple is not far away from Samsung
 Still users prefer to purchase those cells which are in good in looks instead of features
that cell has
 Apple give more customer satisfaction level of needs than Samsung gives as apple
gives warranty full 1 year with the accessories whereas Samsung gives it of for only 6
months


110
SUGGESTIONS

➢ To fulfil the consumer need

➢ To increase the products quantity

➢ Camera quality is bad

➢ They should think about middle- and lower-class family also

➢ Battery problem

➢ The prices of products are high

➢ Please make your devices fully wireless

➢ Please remove primary Sim tray section and include E- Sim section for primary Sim

➢ Include flashlight in front camera

➢ Upgrade or extend the warranty of your phone up to 3 years at least

➢ You should take care of all the necessary things what consumer want

➢ Same icons with same look on home screen even after upgrades

➢ Too simple & doesn’t support computer work as in other OS

➢ No widget support for iOS apps that are also costly

➢ Doesn’t provide NFC and radio is not in-built

➢ App sizes are usually too big consuming too much space

111
Conclusion
The main conclusion that can be drawn is we found to be the most interesting about Apple is
how they are very innovative and early adapters. Apple is usually the first company to come
out with a new product line before anyone else. This is very risky but it seems to be working
to Apple advantage. This shows that taking risks can sometimes make or break you and
Apple has great potential and has a lot to improve. Currently, Apple is demonstrating
negative aspects of TNCs, contributing to international debt crisis through exploitation of
workers. In a way, Apple is promoting debt crisis in LDCs by accessing their labour and raw
materials on the cheapest possible terms. If it is willing to play the role of a beneficial TNC,
the global economy can certainly benefit. Furthermore, people in the least developed
countries, and the environment, will benefit as well. This requires a change from all
stakeholders: the company itself, the consumers, the shareholders, and the workers. It is
important for a TNC to progress towards beneficial behaviour because this can determine
people's view on progressing towards further globalization, as influenced by neoliberalism.

112
BIBOLOGRAPHY

Aaker.A.D (1991). Managing Brand Equity; Capitalizing On the Value of a Brand Name, the
Free Press, New York. Ghauri, P and Gronhaug, K. (2005) “Research Methods in Business
Studies: A practical Guide”. [3rd edition], Pearson Education Limited. Mackenzie, R. (2011,
April). Retrieved 06 20, 2012, from www.quora.com: http://www.quora.com/Rob-
Mackenzie/Posts/How-consumers-with-smartphones-will-impacttheretail-experience
University of Southern California (2010). Segmentation, targeting and positioning.
(online).Available at:[http://www.consumerpsychologist.com/cb_Segmentation.html
Accessed: 21st Sept

IPHONSITE, EDWARD., “The Best or Bad Things of Iphone.” Iphone Communication stlye
(Oct.2012): 20 Jan. 2013 <http://www.techradar.com/reviews/phones/mobile-phones/iphone-
5-1096004/review>.

- JASON CHEN,ADAM PASH., How to Do Everything with Your iPhone, Amazon Journal,
2011

- THEVERGE, JOSHUA TOPOLSKY., “Apple's latest smartphone gets a bigger screen,

LTE, and more power — but does it keep the crown?” iPhone 5 review (Sep.2012) : 20 Jan.
2013 <http://www.theverge.com/2012/9/21/3363238/iphone-5-review>.

- PANJAN THANAWATSATIEN., Iphone5 Completely, 18th Edition, Simplifly, 2012

- iOS Hacker's Handbook. Miller, Charlie; Blazakis, Dion; DaiZovi, Dino; Esser, Stefan;
Iozzo, Vincenzo; Weinmann, Ralf-Philip. John Wiley & Sons. 2012. pp. 309-310.ISBN
9781118228432. Retrieved January 18, 2013.

113
- Höbarth, S.; Mayrhofer, R.. "A framework for on-device privilege escalation exploit
execution on Android".Proc. IWSSI/SPMU 2011: 3rd International Workshop on Security
and Privacy in Spontaneous Interaction and Mobile Phone Use, colocated with Pervasive
2011.

- Richi Jennings (December 27, 2011). "Yes! Jailbreak iOS 5.0.1 on iPhone 3GS, iPhone 4,
iPad... UNTETHERED". The Long View. ComputerWorld. Retrieved December 27, 2011.

114
115