marketing report group 4 apple class marketing communication a1 k41

Apple Company designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services.. Some of the company’s produ

THE ACADEMY OF JOURNALISM AND COMMUNICATION PUBLIC RELATIONS AND ADVERTISING FACULTY

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MARKETING REPORT

GROUP 4: APPLE

CLASS: Marketing Communication A1 K41

Ha Noi, August 2022

MEMBERS OF THE GROUP

NGUYEN HA ANH NGUYEN THUY DUONG TRAN VIET HOA NGUYEN KHANH LINH DINH THI XUAN MAI BUI HA MI

NGUYEN VU HA NHI BUI NGUYEN MINH NGOC CHU ANH PHUONG NGUYEN HOAI PHUONG NGUYEN MY TAM DAO NGUYEN PHUONG UYEN

TABLE OF CONTENT

GENERAL COMPANY INFORMATION 1

H ISTORY OF THE COMPANY 1

G EOGRAPHY R EACH 2

O PERATIONS 3

P RODUCTS

Hardware:

Software:

S ERVICES

Advertising:

AppleCare:

Cloud Services:

Digital Content:

Payment Services:

C OMPETITORS 5

LEADERSHIP 5

B OARD OF D IRECTOR 5

E XECUTIVE T EAM 6

FINANCES 6

F ISCAL 2021 H IGHLIGHTS 6

P RODUCTS AND ERVICES S P ERFORMANCE 6

S EGMENT O PERATING P ERFORMANCE 7

G ROSS M ARGIN 8

O PERATING E XPENSES 9

P ROVISION FOR NCOME I T AXES 9

D EBT 1

F INANCIAL R ISKS 10

* The Company expects its quarterly net sales and results of operations to fluctuate

* Foreign Currency Risk 10

* Interest Rate Risk 1

* The price of the Company’s stock is subject to volatility 11

C ONCLUSION 11

OUTLOOK 11

REFERENCES 12

General Company Information

Apple Inc is an American computer technology corporation headquartered in Silicon Valley in San Francisco, California Apple was founded on April 1, 1976

as Apple Computer, Inc., and changed its name in early 2007 Apple's total net revenue is up to 365.82 billion USD (in 2021) and has many employees around the world

Apple Company designs, manufactures and markets smartphones, personal computers, tablets, wearables and accessories, and sells a variety of related services The Company’s fiscal year is the 52 or 53 week period that ends on the last Saturday of September

Some of the company’s products: Iphone, Ipad, Ipod, Mac, Watch, TV, accessories…

History of the company

Apple Computers, Inc was founded on April 1, 1976, by college dropouts Steve Jobs and Steve Wozniak, who brought to the new company a vision of changing the way people viewed computers Jobs and Wozniak wanted to make computers small enough for people to have them in their homes or offices Simply put, they wanted a computer that was user-friendly

Jobs and Wozniak started out building the Apple I in Jobs' garage and sold them without a monitor, keyboard, or casing (which they decided to add on in 1977) The Apple II revolutionized the computer industry with the introduction of the first-ever color graphics Sales jumped from $7.8 million in 1978 to $117 million

in 1980, the year Apple went public

Wozniak left Apple in 1983 due to a diminishing interest in the day- -day to running of Apple Computers Jobs then hired PepsiCo's John Sculley to be president However, this move backfired and after much controversy with Sculley, Jobs left in 1985 and went on to new and bigger things He founded his own company NeXT Software and he also bought Pixar from George Lucas, which would later become a huge success in computer animation of such movies

as Toy Story, A Bug's Life, Monsters, Inc., and Finding Nemo

Through the rest of the 1980s, Apple was still doing well and in 1990 it posted its highest profits yet This was, however, mostly due to the plans that Jobs had already set in motion before he left, most notably his deal with a tiny company

by the name of Adobe, creator of the Adobe Portable Document Format (PDF) Together the two companies created the phenomenon known as desktop publishing

Back in 1985 Sculley turned down an appeal from Microsoft founder Bill Gates

to license its software This decision would later come back to haunt him because Microsoft, whose Windows operating system (OS) featured a graphical interface similar to Apple's, became their toughest competition in the late 1980s and throughout the 1990s

Over the course of a few years, Apple's market share suffered slowly after its peak

in 1990 and by 1996, experts believed the company to be doomed It was not until

1997, when Apple was desperately in need of an operating system, that it bought out NeXT Software (Jobs' company) and the board of directors decided to ask for some help from an old friend: Steve Jobs Jobs became an interim CEO, or iCEO

as he called himself (Jobs was not officially the CEO until 2000) Jobs decided to make some changes around Apple He forged an alliance with Microsoft to create

a Mac version of its popular office software Not long after this decision was the turning point for the company Jobs revamped the computers and introduced the iBook (a personal laptop) followed by iPod, an mp3 player, which became the market leader

The iPhone, a touch screen cellular phone, introduced in 2007 was one of the world' most successful products and the company has released several new versions since Other popular products include iPad tablet and Apple Watch Most recently Apple has expanded its services segments with its credit card (Apple Card), Apple News for news, Apple Arcade for games and the Apple TV+ for streaming original content produced by Apple Steve Jobs died October 5, 2011, but Apple continues on with his legacy with Tim Cook at the helm as the CEO The popularity of iPhones made Apple the first company valued at one trillion dollars in 2018 and two years later it doubled that figure

Geography Reach

Apple, Inc is famous for operating at a global scale The operating segments cover the Americas, Europe, Greater China, Japan and Rest of Asia Pacific Europe segment includes European countries and interestingly enough India, the Middle East and Africa The Greater China segment covers China, Hong Kong and Taiwan The Rest of Asia Pacific includes Australia and other Asian countries not included in the other segments Each region is separately managed to better

align company’s strategy to local markets Americas is the largest segment and brought in 45% of the company’s total revenue in 2021

Operations

Apple, Inc engages in the design, manufacture, and sale of smartphones, personal computers, tablets, wearables and accessories, and other varieties of related services It has a wide range of Internet services and products which includes both hardware and software

Products

Hardware:

iPhone

iPhone® is by far the Apple’s flagship product and brings the largest share of revenues iPhone® is the line of premium smartphones which operate on proprietary iOS operating system iPhones work with the iTunes Store, App Store and iBooks Store for purchasing, and playing digital content and apps iPhone is compatible with both Mac and Windows personal computers and Apple’s iCloud services, which provide synchronization and integration across users’ devices iPad

iPad® is the line of multipurpose tablets based on its iPadOS® operating system Just like iPhones, iPads are compatible with both Mac and Windows personal computers and have easy access to Apple’s digital stores like iTunes, App Store and iBooks Store

Mac

Mac® is the line of desktop and portable personal computers based on its

macOS® operating system

Wearables, Home and Accessories: includes AirPods®, Apple TV®, Apple

Watch®, Beats® products, HomePod®, iPod touch® and accessories

AirPods is the line of portable digital music and media players that interact with

Siri® All iPods work with iTunes to purchase and synchronize content

Apple Watch is a personal electronic device that not only allows to see time, but also helps track user’s health and fitness through activity and workout apps, and also includes Apple Pay

Software:

Includes five software platforms — iOS, iPadOS, macOS, watchOS, and tvOS — provide seamless experiences across all Apple devices and empower people with breakthrough services including the App Store, Apple Music, Apple Pay, and iCloud

Services

Advertising:

Include various third-party licensing arrangements and the Company’s own advertising platforms

AppleCare:

A brand which offers a portfolio of fee-based service and support products The offerings provide priority access to Apple technical support, access to the global Apple authorized service network for repair and replacement services, and in many cases additional coverage for instances of accidental damage and/or theft and loss, depending on the country and type of product

Cloud Services:

Store and keep customers’ content up-to-date and available across multiple Apple devices and Windows personal computers

Digital Content:

- App Store®: allows customers to discover and download applications and digital content, such as books, music, video, games and podcasts

- Apple TV App Store: gives customers access to apps and games specifically for

the new Apple TV

- iTunes Store allows customers to purchase and download music and video content

- Apple Music®: offers users a curated listening experience with on-demand radio stations;

- iBooks Store sells e-books from major and independent publishers

- Apple Arcade®: a game subscription - based service;

- Apple News+®: a subscription news and magazine service;

- Apple TV+SM: offers exclusive original content

- Apple Fitness+SM: a personalized fitness service

Payment Services:

Includes Apple Card®, a co-branded credit card, and Apple Pay®, a cashless payment service that allows users to securely pay for purchases in stores by using

mobile devices like iPhone and Apple Watch

Competitors

Apple’s main competitors are IBM; Google LLC; Microsoft; Amazon Inc.; and Samsung

Leadership

Apple’s Board consists of a diverse group of highly qualified leaders in their respective fields All of the directors have senior leadership experience at large domestic and multinational companies In these positions, they have gained significant and diverse management experience, including strategic and financial planning, public company financial reporting, compliance, risk management, and leadership development They also have in-depth public company experience serving as executive officers, or on boards of directors and board committees, and have a robust understanding of corporate governance practices and trends In addition, many of our directors have experience as directors or trustees of significant academic, research, nonprofit, and philanthropic institutions, and bring unique perspectives to the Board

Board of Director

Art Levinson - Founder and CEO, Calico

Tim Cook - CEO, Apple

James Bell - Former CFO and Corporate President, The Boeing Company

Al Gore - Former Vice President of the United States

Alex Gorsky - Executive Chair, Johnson & Johnson

Andrea Jung - President and CEO, Grameen America

Monica Lozano - President and CEO, College Futures Foundation

Ron Sugar - Former Chair and CEO, Northrop Grumman Corporation

Sue Wagner - Co-founder and Director, BlackRock

Executive Team

Kate Adams - Senior Vice President, General Counsel and Secretary

Luca Maestri - Senior Vice President, Chief Financial Officer

Deirdre O’Brien - Senior Vice President, Retail + People

Jeff Williams - Chief Operating Officer

Finances

Fiscal 2021 Highlights

Total net sales increased by 33% or $91.3 billion during 2021 compared to 2020, driven by growth in all Products and Services categories Year-over-year net sales during 2021 also grew in each of the Company’s reportable segments

In April 2021, the Company announced an increase to its current share repurchase program authorization from $225 billion to $315 billion and raised its quarterly dividend from $0.205 to $0.22 per share beginning in May 2021 During 2021, the Company repurchased $85.5 billion of its common stock and paid dividends and dividend equivalents of $14.5 billion

Products and Services Performance

The following table shows net sales by category for 2021, 2020 and 2019 (dollars

in millions):

Distributed by sales in 2021 compared to 2020, iPhone increased by 39% of its sales, the Mac grew by 23%, wearable devices and accessories rose up to 25%, and service revenue escalated by 27% The company’s net sales by category showed that more than a half of the total net sales came from iPhone However, the net sales of iPhone decreased by 3% from 2019 to 2020, which could be attributed to the absence of new iPhone models in the fourth quarter of 2020

iPhone net sales increased during 2021 due primarily to higher net sales from the Company’s new iPhone models launched in the first quarter and fourth quarter of

2021 and a favorable mix of iPhone sales Thanks to the high net sales of AirPods and Apple Watch, there was a significant growth in the net sales under the category of “Wearables, Home, and Accessories.”

Segment Operating Performance

The following table shows net sales by reportable segment for 2021, 2020 and

Apple operates under five major segments These segments are the Americas, Europe, Greater China, Japan, and the Rest of Asia Pacific This data indicates that Americans are Apple’s largest group of consumers, which account for the highest proportion in 2021 The second largest group of consumers is people from Europe and Greater China, which contained almost 39.5% of total revenue in 2020; and it is obvious that Apple did not generate a lot of money from Japan and the rest of Asia Pacific, which holds 14.8% in 2020

To be more specific, the considerable profits generated in America are essential

on the grounds that Apple's incredible performance in its home market of the U.S

As the U.S smartphone market, Apple has the largest share of the market Additionally, there are quantitative Apple stores in the US, with extremely high concentrations Various smart technology devices and numerous personalized computers, including iPhones, iPads, iMac, and more, will be displayed and sold

Secondly, in more developed Asian countries such as China and Japan, many high-tech products have also appeared in recent years, such as South Korea’s Samsung phones Take China as an example, with the media's influence, Chinese

citizens can choose other items instead of products from Apple, and this prevents Apple’s sales in a big population country like China from surpassing the sales in America Also, revenue generated from the rest of Asia pacific is quite low It might be caused by a low local population base or poor local economic situation For example, in a country like Africa, where the gap between the rich and the poor is relatively large, local residents may be more concerned about the price of food than buying or using an iPhone

Gross Margin

The company’s gross margin percentage in services was dramatically larger than that in its product profits While the product gross margin percentage was 35.3%

in 2021, the service gross margin percentage reached 69.7% It means that each dollar of added service sales disproportionately boosted Apple’s profits compared

to hardware sales To bolster its service sales, the company had introduced a large number of new and updated services, including the company’s digital content stores and streaming services, such as App Store platforms, Apple Music, and Apple TV+ It also generated revenue from Apple Care, licensing, and other services, including Apple Card and Apple News Apple is increasingly seen not just as a hardware company but a major player in the software business