COMPANYPROFILEAppleInc.REFERENCECODE:5B0A0C20-9BB6-4284-A575-AC0F2261F45CPUBLICATIONDATE:18Jul2014©MarketLineAppleInc.TABLEOFCONTENTSCOMPANYOVERVIEWAPPLEINC.(Appleorthecompany)designs,manufactures,andmarketsmobilecommunicationandmediadevices,personalcomputers,andportabledigitalmusicplayers,andsellsavarietyofrelatedsoftware,services,peripherals,networkingsolutions,andthird-partydigitalcontentandapplications.ThecompanyprimarilyoperatesintheUS,EuropeandAsiaPacific.ItisheadquarteredinCupertino,Californiaandemployed84,400peopleasofSeptember28,2013,including80,300full-timeequivalentemployeesand4,100full-timeequivalenttemporaryemployeesandcontractors.Thecompanyrecordedrevenuesof$170,910millionduringthefinancialyearendedSeptember2013(FY2013),anincreaseof9.2%overFY2012.Theoperatingprofitofthecompanywas$48,999millioninFY2013,adecreaseof11.3%comparedtoFY2012.Thenetprofitwas$37,037millioninFY2013,adecreaseof11.3%comparedtoFY2012.KEYFACTSAppleInc.HeadOffice1InfiniteLoopCupertinoCalifornia95014USA14089961010PhoneFax(USDMn)SeptemberFinancialYearEnd84,400EmployeesAAPLNASDAQNationalMarketTickerAppleInc.Page3©MarketLineAppleInc.CompanyOverviewSWOTANALYSISAPPLEINC.(Appleorthecompany)designs,manufactures,andmarketsmobilecommunicationandmediadevices,personalcomputers,andportabledigitalmusicplayers,andsellsavarietyofrelatedsoftware,services,peripherals,networkingsolutions,andthird-partydigitalcontentandapplications.Throughtheintegrationmodel,bothhorizontallyandvertically,thecompanywasabletobuildnonreplicableandsustainablecompetitiveadvantages.However,Apple'spremiumpricingstrategycouldlimitthemarketsharegainsintheemergingnations.WeaknessesStrengthsProductgapscouldprovetobecompetitivedisadvantagesAcombinationofhorizontalandverticalintegrationcreatedformidablecompetitiveadvantageHighdependenceoniPhoneandiPadproductlinesApplecommandshighASPsinanindustrycharacterizedbydecliningASPsSignificantgrowthratesandcashflowsThreatsOpportunitiesPremiumpricingcouldlimitthemarketsharegainsintheemergingnationsGrowthopportunityintheenterprisemarketEmergingnationsprovidestronggrowthopportunitiesOperatingincomplexandchallengingenvironmentcouldimpactmarketpositionWearabletechnologymarketandAppleTVpresentgrowthprospectsTelecomcarrier’smovestoreducesubsidieshasthepotentialtoharmApple’smarketStrengthsAcombinationofhorizontalandverticalintegrationcreatedformidablecompetitiveadvantageApplehasovertheyearsfollowedintegrationbothhorizontallyandverticallyandasaresultemergedasaformidablecompetitor.Thecompany'smultipledevicesprovidehorizontalintegration.Applehaspresenceacrossmaindigitalmediadevicesofcomputingandmobilecommunications.ThroughPCs,tablets,smartphonesandotherdevices,Appleaimedatofferingawholerangeofassociateproductsanddevices.Applethroughverticalintegrationconnectedtheuserexperienceacrossthedevices.Thecompanyoffershardware,software,content,servicesandalsoretailsitsproductscreatingverticalintegration.Manufacturinghardwaregivescompletecontroloverdesignaspectsandqualityofproductsinthemarket.Inadditiontothehardware,thecompanyalsobuiltstrongsoftwareandcontentbusinesswhichisequippingApplewithseveralcompetitiveadvantages.TheAppleInc.Page4©MarketLineAppleInc.SWOTAnalysiscompany'soperatingsystemspansacrossmultipledevicesandincludescontentandapplication.Consequently,switchingtoacompetitorbecomesdifficultduetothedependenceoniOS.AnotherkeyintegrationaspectthathasenabledAppletogaincompetitiveadvantageisthecontentoffering.Thecompany'scontentbaseislargeandissharedacrossalldevicesthroughiTunes.iTunesisastorefrontofferingallkindsofmedia.Inadditiontotheabove,thecompanyalsoengagesinretailing.ThishelpsAppletohavecontroloversuccessfullypositioningitsproductstotheenduser.Applehasfollowedaverticalintegrationstrategytobuildaformidablecompetitiveadvantage.Thecompany'sbusinessstrategyleveragesitsuniqueabilitytodesignanddevelopitsownoperatingsystems,hardware,applicationsoftware,andservices.Theverticalintegrationprovidescontrolovertheentireuserexperienceorprocessfromhardwaretosoftwarewhichfacilitateshighercustomerloyaltyandprovideslock-in.TheverticalintegrationthatAppleachievedisverydifficulttoreplicateasevidencedinrecenttimes.Noneofthecompany’scompetitorswereabletoreplicatethismodelwithresonatingsuccessasApple.Google’ssaleofMotorola’smobiledivisionindicatesthatthisstrategyandbusinessmodelisdifficulttoreplicatealthoughthecompetitorshavetried.ThisprovidesApplewithsignificantcompetitiveadvantages.Apple’scustomizedin-housechipdesign,wellintegratedhardware,soft