Apple Case Study - update for the iPad March 2012. What can we learn about Apple Corporate Strategy from the iPad 3?

1. Apple
From the iPod to the iPad
A case study in Corporate Strategy
Second Edition April 2012
J K Ashcroft
Saturday, 31 March 12

2. pdate
U
What does it tell us about
Apple corporate strategy
Second Edition April 2012
J K Ashcroft
Saturday, 31 March 12

3. First a recap
The Digital Hub Strategy
2001
Second Edition April 2012
J K Ashcroft
Saturday, 31 March 12

4. J K Ashcroft
Saturday, 31 March 12

5. Launch of the iPod
J K Ashcroft
Saturday, 31 March 12

6. Apple looking for a digital consumer device
Undertakes a systematic evaluation
of alternative product options
Video
Games
DVD players and recorders
J K Ashcroft
Saturday, 31 March 12

7. using
3D market
profile
J K Ashcroft
Saturday, 31 March 12

8. Launches the iPod
“Music on the move”
“1000 tunes in your pocket”
“so why music, we all love music
It’s a huge market and
nobody has got it right”
J K Ashcroft
Saturday, 31 March 12

9. Music
ticks all
the boxes
using
3D market
profile
J K Ashcroft
Saturday, 31 March 12

10. Since then ... sales have soared
J K Ashcroft
Saturday, 31 March 12

11. profits have followed
J K Ashcroft
Saturday, 31 March 12

12. as has the ROS
J K Ashcroft
Saturday, 31 March 12

13. so too the share price
and the market cap
J K Ashcroft
Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

17. “EBITDA
off the charts”
J K Ashcroft
Saturday, 31 March 12

18. Sales growth
gets 3rd
lease of life
J K Ashcroft
Saturday, 31 March 12

19. Time ...........
Note : [Share price = Earnings(EPS) x PE rating] ; [PE rating (f) Growth Rate]
and : [PEG ratio = PE / Growth rate] Hence rating for high growth stocks falls over time
J K Ashcroft
Saturday, 31 March 12

20. 575 million
Digital Devices Sold
iPod, iPhone, IPad
J K Ashcroft
Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

28. Latest in Amsterdam
March 2012
J K Ashcroft
Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

32. auto focus
auto face detection
3.1 million pixels
Voice
Dictation
auto focus
auto face detection
Saturday, 31 March 12

33. J K Ashcroft
Saturday, 31 March 12

34. 1 Retina Display
2 A5X Chip
3 5 MP camera
4 HD1080p video recording
5 Voice Dictation
6 4G LTE wireless tech
7 Battery Life
8 Light @ 1.4 lbs
J K Ashcroft
Saturday, 31 March 12

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Saturday, 31 March 12

36. The iPad priced at $499
- the iPad 2 drops to......
J K Ashcroft
Saturday, 31 March 12

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Saturday, 31 March 12

38. Prior Premium Pricing - then
Price Point Proliferation
J K Ashcroft
Saturday, 31 March 12

39. as with
the iPod
Prior Premium Pricing
Price Point Proliferation
J K Ashcroft
Saturday, 31 March 12

40. iPad is the way ahead
J K Ashcroft
Saturday, 31 March 12

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Saturday, 31 March 12

42. iPad brand dominant
Apps for the iPad
J K Ashcroft
Saturday, 31 March 12

43. Great software like iTunes
J K Ashcroft
Saturday, 31 March 12

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Saturday, 31 March 12

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Saturday, 31 March 12

46. J K Ashcroft
Saturday, 31 March 12

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Saturday, 31 March 12

48. 2012 latest
J K Ashcroft
Saturday, 31 March 12

49. Apple
From the iPod to the iPad
A case study in Corporate Strategy
Second Edition April 2012
J K Ashcroft
Saturday, 31 March 12