Apple Inc.

From Wikipedia, the free encyclopedia

The Apple logo designed by Rob

Janoff

Public (NASDAQ: AAPL)
Type
S&P 500 Component
Computer hardware
Computer software
Industry
Consumer electronics
Digital distribution
Apple Computer, Inc.
Predecessor
(January 9, 2007)
Cupertino, California, U.S.
Founded
(April 1, 1976)
Steve Jobs
Founder(s) Steve Wozniak
Ronald Wayne
Headquarters 1 Infinite Loop, Cupertino, California, U.S.
Number of
300 (August 2010)
locations
Area served Worldwide
Steve Jobs (Co-founder, Chairman, CEO)
Tim Cook (COO)
Peter Oppenheimer (CFO)
Key people
Bob Mansfield
(Mac and iPhone Hardware Engineering)
Jonathan Ive (Industrial Design)

Mac (Pro, Mini · iMac · MacBook, Air, Pro ·

Products
Xserve), iPod (Shuffle, Nano, Classic, Touch),
 iPhone (Original · 3G · 3GS · 4), iPad, Apple
TV, accessories, Mac OS X (Server), iLife,
iWork, iOS
Stores (retail, online, App, iTunes, iBooks)
Services
MobileMe
Revenue $65.23 billion (FY 2010)

Profit $14.01 billion (FY 2010)

Total assets $75.18 billion (FY 2010)

Total equity $47.79 billion (FY 2010)

Employees 49,400 (2010)

Subsidiaries Braeburn Capital, FileMaker Inc.
Website Apple.com

Apple Inc. (NASDAQ: AAPL; previously Apple Computer, Inc.) is an American

multinational corporation that designs and markets consumer electronics, computer
software, and personal computers. The company's best-known hardware products include
the Macintosh line of computers, the iPod, the iPhone and the iPad. Apple software includes
the Mac OS X operating system; the iTunes media browser; the iLife suite of multimedia
and creativity software; the iWork suite of productivity software; Aperture, a professional
photography package; Final Cut Studio, a suite of professional audio and film-industry
software products; Logic Studio, a suite of music production tools; and iOS, a mobile
operating system. As of August 2010, the company operates 301 retail stores in ten
countries, and an online store where hardware and software products are sold.

Established on April 1, 1976 in Cupertino, California, and incorporated January 3,

1977, the company was previously named Apple Computer, Inc., for its first 30 years, but
removed the word "Computer" on January 9, 2007, to reflect the company's ongoing
expansion into the consumer electronics market in addition to its traditional focus on
personal computers. As of September 25, 2010, Apple had 46,600 full time employees and
2,800 temporary full time employees worldwide and had worldwide annual sales of $65.23
billion.

For reasons as various as its philosophy of comprehensive aesthetic design to its

distinctive advertising campaigns, Apple has established a unique reputation in the
consumer electronics industry. This includes a customer base that is devoted to the
company and its brand, particularly in the United States. Fortune magazine named Apple
the most admired company in the United States in 2008, and in the world in 2008, 2009,
and 2010. The company has also received widespread criticism for its contractors' labor,
environmental, and business practices.

History
Main article: History of Apple Inc.

1976–1980: The early years

The Apple I, Apple's first product, was sold as an assembled circuit board and lacked
basic features such as a keyboard, monitor, and case. The owner of this unit added a
keyboard and a wooden case.

Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald
Wayne, to sell the Apple I personal computer kit. They were hand-built by Wozniak and
first shown to the public at the Homebrew Computer Club. The Apple I was sold as a
motherboard (with CPU, RAM, and basic textual-video chips)—less than what is today
considered a complete personal computer. The Apple I went on sale in July 1976 and was
market-priced at $666.66 ($2,572 in 2011 dollars, adjusted for inflation.)

Apple was incorporated January 3, 1977 without Wayne, who sold his share of the
company back to Jobs and Wozniak for $800. Multi-millionaire Mike Markkula provided
essential business expertise and funding of $250,000 during the incorporation of Apple.

The Apple II was introduced on April 16, 1977 at the first West Coast Computer
Faire. It differed from its major rivals, the TRS-80 and Commodore PET, because it came
with color graphics and an open architecture. While early models used ordinary cassette
tapes as storage devices, they were superseded by the introduction of a 5 1/4 inch floppy
disk drive and interface, the Disk II.

The Apple II was chosen to be the desktop platform for the first "killer app" of the
business world—the VisiCalc spreadsheet program. VisiCalc created a business market for
the Apple II, and gave home users an additional reason to buy an Apple II—compatibility
with the office. According to Brian Bagnall, Apple exaggerated its sales figures and was a
distant third place to Commodore and Tandy until VisiCalc came along.

By the end of the 1970s, Apple had a staff of computer designers and a production line. The
company introduced the ill-fated Apple III in May 1980 in an attempt to compete with IBM
and Microsoft in the business and corporate computing market.
Jobs and several Apple employees including Jef Raskin visited Xerox PARC in December
1979 to see the Xerox Alto. Xerox granted Apple engineers three days of access to the PARC
facilities in return for the option to buy 100,000 shares of Apple at the pre-IPO price of $10
a share. Jobs were immediately convinced that all future computers would use a graphical
user interface (GUI), and development of a GUI began for the Apple Lisa.

When Apple went public, it generated more capital than any IPO since Ford Motor
Company in 1956 and instantly created more millionaires (about 300) than any company
in history.

1981–1985: Lisa and Macintosh

The Model from Apple's "1984" ad, set in a dystopian future modeled after the George
Orwell novel Nineteen Eighty-Four, set the tone for the introduction of the Macintosh.

Steve Jobs began working on the Apple Lisa in 1978 but in 1982 he was pushed from the
Lisa team due to infighting, and took over Jef Raskin's low-cost-computer project, the
Macintosh. A turf war broke out between Lisa's "corporate shirts" and Jobs' "pirates" over
which product would ship first and save Apple. Lisa won the race in 1983 and became the
first personal computer sold to the public with a GUI, but was a commercial failure due to
its high price tag and limited software titles.

The first Macintosh, released in 1984

In 1984, Apple next launched the Macintosh. Its debut was announced by the now
famous $1.5 million television commercial "1984". It was directed by Ridley Scott, aired
during the third quarter of Super Bowl XVIII on January 22, 1984, and is now considered a
watershed event for Apple's success and a "masterpiece".

The Macintosh initially sold well, but follow-up sales were not strong due to its high
price and limited range of software titles. The machine's fortunes changed with the
introduction of the LaserWriter, the first PostScript laser printer to be offered at a
reasonable price point, and PageMaker, an early desktop publishing package. The Mac was
particularly powerful in this market due to its advanced graphics capabilities, which were
already necessarily built-in to create the intuitive Macintosh GUI. It has been suggested that
the combination of these three products was responsible for the creation of the desktop
publishing market.

In 1985, a power struggle developed between Jobs and CEO John Sculley, who had
been hired two years prior. The Apple board of directors instructed Sculley to "contain"
Jobs and limit his ability to launch expensive forays into untested products. Rather than
submit to Sculley's direction, Jobs attempted to oust him from his leadership role at Apple.
Sculley found out that Jobs had been attempting to organize a putsch and called a board
meeting at which Apple's board of directors sided with Sculley and removed Jobs from his
managerial duties. Jobs resigned from Apple and founded NeXT Inc. the same year.

1986–1993: Rise and fall

The Macintosh Portable was Apple's first "portable" Macintosh computer, released
in 1989.

Having learned several painful lessons after introducing the bulky Macintosh
Portable in 1989, Apple introduced the PowerBook in 1991, which established the modern
form factor and ergonomic layout of the laptop computer. The Macintosh Portable was
designed to be just as powerful as a desktop Macintosh, but weighed 17 pounds with a 12
hour battery life. The same year, Apple introduced System 7, a major upgrade to the
operating system, which added color to the interface and introduced new networking
capabilities. It remained the architectural basis for Mac OS until 2001.

The success of the PowerBook and other products led to increasing revenue. For
some time, it appeared that Apple could do no wrong, introducing fresh new products and
generating increasing profits in the process. The magazine MacAddict has named the period
between 1989 and 1991 as the "first golden age" of the Macintosh.
 Following the success of the Macintosh LC, Apple introduced the Centris line, a low-
end Quadra offering, and the ill-fated Performa line that was sold in several confusing
configurations and software bundles to avoid competing with the various consumer outlets
such as Sears, Price Club, and Wal-Mart, the primary dealers for these models. The result
was disastrous for Apple as consumers did not understand the difference between models.

During this time Apple experimented with a number of other failed consumer
targeted products including digital cameras, portable CD audio players, speakers, video
consoles, and TV appliances. Enormous resources were also invested in the problem-
plagued Newton division based on John Sculley's unrealistic market forecasts. Ultimately,
all of this proved too-little-too-late for Apple as their market share and stock prices
continued to slide.

Apple saw the Apple II series as too expensive to produce, while taking away sales
from the low end Macintosh. [46] In 1990, Apple released the Macintosh LC with a single
expansion slot for the Apple IIe Card to migrate Apple II users to the Macintosh platform.
Apple stopped selling the Apple IIe in 1993.

Microsoft continued to gain market share with Windows, focusing on delivering

software to cheap commodity personal computers while Apple was delivering a richly
engineered, but expensive, experience. Apple relied on high profit margins and never
developed a clear response. Instead they sued Microsoft for using a graphical user interface
similar to the Apple Lisa in Apple Computer, Inc. v. Microsoft Corporation. The lawsuit
dragged on for years before it was finally dismissed. At the same time, a series of major
product flops and missed deadlines sullied Apple's reputation, and Sculley was replaced by
Michael Spindler.

1994–1997: Attempts at reinvention

The Newton was Apple's first foray into the PDA markets, as well as one of the first
in the industry. Despite being a financial flop at the time of its release, it helped pave the
way for the Palm Pilot and Apple's own iPhone and iPad in the future.
 By the early 1990s, Apple was developing alternative platforms to the Macintosh,
such as the A/UX. Apple had also begun to experiment in providing a Mac-only online
portal which they called eWorld, developed in collaboration with America Online and
designed as a Mac-friendly alternative to other online services such as CompuServe. The
Macintosh platform itself was becoming outdated since it was not built for multitasking,
and several important software routines were programmed directly into the hardware. In
addition, Apple was facing competition from OS/2 and UNIX vendors like Sun
Microsystems. The Macintosh would need to be replaced by a new platform, or reworked to
run on more powerful hardware.

In 1994, Apple allied with IBM and Motorola in the AIM alliance. The goal was to
create a new computing platform (the PowerPC Reference Platform), which would use IBM
and Motorola hardware coupled with Apple's software. The AIM alliance hoped that PReP's
performance and Apple's software would leave the PC far behind, thus countering
Microsoft. The same year, Apple introduced the Power Macintosh, the first of many Apple
computers to use IBM's PowerPC processor.

In 1996, Michael Spindler was replaced by Gil Amelio as CEO. Gil Amelio made many
changes at Apple, including massive layoffs. After multiple failed attempts to improve Mac
OS, first with the Taligent project, then later with Copland and Gershwin, Amelio chose to
purchase NeXT and its NeXTSTEP operating system, bringing Steve Jobs back to Apple as
an advisor. On July 9, 1997, Gil Amelio was ousted by the board of directors after
overseeing a three-year record-low stock price and crippling financial losses. Jobs became
the interim CEO and began restructuring the company's product line.

At the 1997 Macworld Expo, Steve Jobs announced that Apple would join Microsoft
to release new versions of Microsoft Office for the Macintosh, and that Microsoft made a
$150 million investment in non-voting Apple stock. On November 10, 1997, Apple
introduced the Apple Store, tied to a new build-to-order manufacturing strategy.

1998–2005: Return to profitability

On August 15, 1998, Apple introduced a new all-in-one computer reminiscent of the
Macintosh 128K: the iMac. The iMac design team was led by Jonathan Ive, who would later
design the iPod and the iPhone. The iMac featured modern technology and a unique design.
It sold close to 800,000 units in its first five months.

Through this period, Apple purchased several companies to create a portfolio of

professional and consumer-oriented digital production software. In 1998, Apple
announced the purchase of Macromedia's Final Cut software, signaling its expansion into
the digital video editing market. The following year, Apple released two video editing
products: iMovie for consumers, and Final Cut Pro for professionals, the latter of which has
gone on to be a significant video-editing program, with 800,000 registered users in early
2007. In 2002 Apple purchased Nothing Real for their advanced digital compositing
application Shake, as well as Emagic for their music productivity application Logic, which
led to the development of their consumer-level GarageBand application. iPhoto's release
the same year completed the iLife suite.

Apple retail stores allow potential customers to use floor models without making a
purchase.

Mac OS X, based on NeXT's OPENSTEP and BSD Unix was released on March 24,
2001, after several years of development. Aimed at consumers and professionals alike, Mac
OS X aimed to combine the stability, reliability and security of Unix with the ease of use
afforded by an overhauled user interface. To aid users in migrating from Mac OS 9, the new
operating system allowed the use of OS 9 applications through Mac OS X's Classic
environment.

On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and
California. Later on July 9 they bought Spruce Technologies, a DVD authoring company. The
same year, Apple introduced the iPod portable digital audio player. The product was
phenomenally successful — over 100 million units were sold within six years. In 2003,
Apple's iTunes Store was introduced, offering online music downloads for $0.99 a song and
integration with the iPod. The service quickly became the market leader in online music
services, with over 5 billion downloads by June 19, 2008.

Since 2001 Apple's design team has progressively abandoned the use of translucent
colored plastics first used in the iMac G3. This began with the titanium PowerBook and was
followed by the white polycarbonate iBook and the flat-panel iMac.

2005–2007: The Intel transition

The MacBook Pro (15.4" widescreen) was Apple's first laptop with an Intel
microprocessor. It was announced in January 2006 and is aimed at the professional market.
 At the Worldwide Developers Conference keynote address on June 6, 2005, Steve
Jobs announced that Apple would begin producing Intel-based Mac computers in 2006. On
January 10, 2006, the new MacBook Pro and iMac became the first Apple computers to use
Intel's Core Duo CPU. By August 7, 2006 Apple had transitioned the entire Mac product line
to Intel chips, over 1 year sooner than announced. The Power Mac, iBook, and PowerBook
brands were retired during the transition; the Mac Pro, MacBook, and MacBook Pro
became their respective successors. On April 29, 2009, The Wall Street Journal reported
that Apple was building its own team of engineers to design microchips.

Apple also introduced Boot Camp to help users install Windows XP or Windows
Vista on their Intel Macs alongside Mac OS X.

Apple's success during this period was evident in its stock price. Between early
2003 and 2006, the price of Apple's stock increased more than tenfold, from around $6 per
share (split-adjusted) to over $80. In January 2006, Apple's market cap surpassed that of
Dell. Nine years prior, Dell's CEO Michael Dell said that if he ran Apple he would "shut it
down and give the money back to the shareholders."

Although Apple's market share in computers has grown, it remains far behind
competitors using Microsoft Windows, with only about 8% of desktops and laptops in the
U.S.

2007–present: Mobile consumer electronics era

Delivering his keynote at the Macworld Expo on January 9, 2007, Jobs announced
that Apple Computer, Inc. would from that point on be known as Apple Inc., because
computers are no longer the singular focus of the company. This change reflects the
company's shift of emphasis to mobile electronic devices from personal computers. The
event also saw the announcement of the iPhone and the Apple TV. The following day, Apple
shares hit $97.80, an all-time high at that point. In May, Apple's share price passed the $100
mark.

In an article posted on Apple's website on February 6, 2007, Steve Jobs wrote that
Apple would be willing to sell music on the iTunes Store without DRM (which would allow
tracks to be played on third-party players) if record labels would agree to drop the
technology. On April 2, 2007, Apple and EMI jointly announced the removal of DRM
technology from EMI's catalog in the iTunes Store, effective in May. Other record labels
followed later that year.
The Mac, iPad, and iPhone now form the core of Apple's business.

In July of the following year, Apple launched the App Store to sell third-party
applications for the iPhone and iPod Touch. Within a month, the store sold 60 million
applications and brought in $1 million daily on average, with Jobs speculating that the App
Store could become a billion-dollar business for Apple. Three months later, it was
announced that Apple had become the third-largest mobile handset supplier in the world
due to the popularity of the iPhone.

On December 16, 2008, Apple announced that after over 20 years of attending
Macworld, 2009 would be the last year Apple would be attending the Macworld Expo, and
that Phil Schiller would deliver the 2009 keynote in lieu of the expected Jobs. Almost
exactly one month later, on January 14, 2009, an internal Apple memo from Jobs
announced that he would be taking a six-month leave of absence, until the end of June
2009, to allow him to better focus on his health and to allow the company to better focus on
its products without having the rampant media speculating about his health. Despite Jobs'
absence, Apple recorded its best non-holiday quarter (Q1 FY 2009) during the recession
with revenue of $8.16 billion and a profit of $1.21 billion.

After years of speculation and multiple rumored "leaks" Apple announced a large
screen, tablet-like media device known as the iPad on January 27, 2010. The iPad runs the
same touch based operating system that the iPhone uses and many of the same iPhone
apps are compatible with the iPad. This gave the iPad a large app catalog on launch even
with very little development time before the release. Later that year on April 3, 2010, the
iPad was launched in the US and sold more than 300,000 units on that day and reaching
500,000 by the end of the first week. In May 2010, Apple's market cap exceeded that of
competitor Microsoft for the first time since 1989.

In June 2010, Apple released the fourth generation iPhone, which introduced video
calling, multitasking, and a new uninsulated stainless steel design, which acts as the
phone's antenna. Because of this antenna implementation, some iPhone 4 users reported a
reduction in signal strength when the phone is held in specific ways. Apple has offered
buyers a free rubber 'bumper' case until September 30, 2010, as cases has been proven to
solve/improve the signal strength issue.

In September 2010, Apple refreshed its iPod line of MP3 players, introducing a
multi-touch iPod Nano, iPod Touch with FaceTime, and iPod Shuffle with buttons.
 In October 2010, Apple shares hit an all-time high, eclipsing $300.Additionally, on
October 20, Apple updated their MacBook Air laptop, iLife suite of applications, and
unveiled Mac OS X Lion, the latest installment in their Mac OS X operating system.

Products
Mac and accessories

See also: Timeline of Macintosh models, List of Macintosh models grouped by CPU type, and
List of Macintosh models by case type

The Mac mini

 Mac mini, consumer sub-desktop computer and server introduced in 2005

 iMac, consumer all-in-one desktop computer introduced in 1998
 Mac Pro, workstation-class desktop computer introduced in 2006, replacing the
Power Macintosh
 MacBook, consumer notebook introduced in 2006, replacing the iBook
 MacBook Air, ultra-thin, ultra-portable notebook introduced in 2008
 MacBook Pro, professional notebook introduced in 2006, replacing the PowerBook
 Xserve, rack mounted server

Apple also sells a variety of computer accessories for Mac computers including the AirPort
wireless networking products, Time Capsule, Cinema Display, Magic Mouse, Magic
Trackpad, Wireless Keyboard, the Apple Battery Charger and the Apple USB Modem.

iPad

On January 27, 2010, Apple introduced their much-anticipated media tablet, the iPad
running a modified version of iOS. It offers multi-touch interaction with multimedia
formats including newspapers, magazines, ebooks, textbooks, photos, movies, TV shows
videos, music, word processing documents, spreadsheets, video games, and most existing
iPhone apps. It also includes a mobile version of Safari for internet browsing, as well as
access to the App Store, iTunes Library, iBooks Store, contacts, and notepad. Content is
downloadable via Wi-Fi and optional 3G service or synced through the user's computer.
AT&T is currently the sole US provider of 3G wireless access for the iPad.

iPod
 The current iPod family, featuring the iPod Shuffle, iPod Nano, iPod Classic, and iPod
Touch

On October 23, 2001, Apple introduced the iPod digital music player. It has evolved to
include various models targeting the wants of different users. The iPod is the market leader
in portable music players by a significant margin, with more than 220 million units shipped
as of September 9, 2009. Apple has partnered with Nike to offer the Nike+iPod Sports Kit
enabling runners to synchronize and monitor their runs with iTunes and the Nike+
website. Apple currently sells four variants of the iPod.

 iPod Classic (previously named iPod from 2001 to 2007), portable media player first
introduced in 2001, currently available in a 160 GB model.
 iPod Nano, portable media player first introduced in 2005, currently available in 8
and 16 GB models. The newest generation has a FM radio, a pedometer, and a new
multi-touch interface that replaced the traditional iPod click wheel.
 iPod Shuffle, digital audio player first introduced in 2005, currently available in 2
and 4 GB models.
 iPod Touch, portable media player that runs iOS, first introduced in September 2007
after the iPhone went on sale. Currently available in 8, 32, and 64 GB models. The
latest generation features the Apple A4 processor, a Retina Display, and dual
cameras on the front and back. The back camera allows video recording at 720p.

iPhone

The iPhone 4 is the most recent generation of iPhone.

At the Macworld Conference & Expo in January 2007, Steve Jobs revealed the long
anticipated iPhone, a convergence of an Internet-enabled smartphone and iPod. The
original iPhone combined a 2.5G quad band GSM and EDGE cellular phone with features
found in hand held devices, running scaled-down versions of Apple's Mac OS X (dubbed
iOS, formerly iPhone OS), with various Mac OS X applications such as Safari and Mail. It also
includes web-based and Dashboard apps such as Google Maps and Weather. The iPhone
features a 3.5-inch (89 mm) touch screen display, 4, 8, or 16 GB of memory, Bluetooth, and
Wi-Fi (both "b" and "g"). The iPhone first became available on June 29, 2007 for $499
(4 GB) and $599 (8 GB) with an AT&T contract. On February 5, 2008, Apple updated the
original iPhone to have 16 GB of memory, in addition to the 8 GB and 4 GB models. On June
9, 2008, at WWDC 2008, Steve Jobs announced that the iPhone 3G would be available on
July 11, 2008. This version added support for 3G networking, assisted-GPS navigation, and
a price cut to $199 for the 8 GB version, and $299 for the 16 GB version, which was
available in both black and white. The new version was visually different from its
predecessor in that it eliminated the flat silver back, and large antenna square for a curved
glossy black or white back. Following complaints from many people, the headphone jack
was changed from a recessed jack to a flush jack to be compatible with more styles of
headphones. The software capabilities changed as well, with the release of the new iPhone
came the release of Apple's App Store; the store provided applications for download that
were compatible with the iPhone. On April 24, 2009, the App Store surpassed one billion
downloads.[107] On June 8, 2009, at Apple's annual worldwide developers conference, the
iPhone 3GS was announced, providing an incremental update to the device including faster
internal components, support for faster 3G speeds, video recording capability, and voice
control. On June 7, 2010, at WWDC 2010, the iPhone 4 was announced, which Apple says is
its "'biggest leap we've taken" since the original iPhone. [108] The phone includes an all-new
design, 960x640 display, Apple's A4 processor used in the iPad, a gyroscope for enhanced
gaming, 5MP camera with LED flash, front-facing VGA camera and FaceTime video calling.
Shortly after the release of the iPhone 4, it was realized by consumers that the new iPhone
had reception issues. This is due to the stainless steel band around the edge of the device,
which also serves as the phones cellular signal and Wi-Fi antenna. The current fix for this
issue is a "Bumper Case" for the phone distributed for free to all iPhone 4 owners, subject
to terms.

Apple TV

The Apple TV, in its most recent revision

At the 2007 Macworld conference, Jobs demonstrated the Apple TV, (previously
known as the iTV), a set-top video device intended to bridge the sale of content from
iTunes with high-definition televisions. The device links up to a user's TV and syncs, either
via Wi-Fi or a wired network, with one computer's iTunes library and streams from an
additional four. The Apple TV originally incorporated a 40 GB hard drive for storage,
includes outputs for HDMI and component video, and plays video at a maximum resolution
of 720p. On May 31, 2007 a 160 GB drive was released alongside the existing 40 GB model
and on January 15, 2008 a software update was released, which allowed media to be
purchased directly from the Apple TV. In September 2009, Apple discontinued the original
40 GB Apple TV and now continues to produce and sell the 160 GB Apple TV. On September
1, 2010, alongside the release of the new line of iPod devices for the year, Apple released a
completely redesigned Apple TV. The new device is 1/4 the size, runs quieter, and replaces
the need for a hard drive with media streaming from any iTunes library on the network
along with 8 GB of flash memory to cache media downloaded. Apple with the Apple TV has
added another device to its portfolio that runs on its A4 processor along with the iPad and
the iPhone. The memory included in the device is the half of the iPhone 4 at 256 MB; the
same as the iPad, iPhone 3GS, iPod touch 3G, and iPod touch 4G. It has HDMI out as the only
video out source. Features include access to the iTunes Store to rent movies and TV shows
(purchasing has been discontinued), streaming from internet video sources, including
YouTube and Netflix, and media streaming from an iTunes library. Apple also reduced the
price of the device to $99.

Software
Apple develops its own operating system to run on Macs, Mac OS X, the latest
version being Mac OS X v10.6 Snow Leopard. Apple also independently develops computer
software titles for its Mac OS X operating system. Much of the software Apple develops is
bundled with its computers. An example of this is the consumer-oriented iLife software
package that bundles iDVD, iMovie, iPhoto, iTunes, GarageBand, and iWeb. For
presentation, page layout and word processing, iWork is available, which includes Keynote,
Pages, and Numbers. iTunes, QuickTime media player, Safari web browser, and

Apple also offers a range of professional software titles. Their range of server
software includes the operating system Mac OS X Server; Apple Remote Desktop, a remote
systems management application; WebObjects, Java EE Web application server; and Xsan, a
Storage Area Network file system. For the professional creative market, there is Aperture
for professional RAW-format photo processing; Final Cut Studio, a video production suite;
Logic, a comprehensive music toolkit and Shake, an advanced effects composition program.

Apple also offers online services with MobileMe (formerly .Mac) that bundles
personal web pages, email, Groups, iDisk, backup, iSync, and Learning Center online
tutorials. MobileMe is a subscription-based internet suite that capitalizes on the ability to
store personal data on an online server and thereby keep all web-connected devices in
sync.[114] Announced at MacWorld Expo 2009, iWork.com allows iWork users to upload
documents for sharing and collaboration.

Culture
Corporate
 Apple was one of several highly successful companies founded in the 1970s that
bucked the traditional notions of what a corporate culture should look like in
organizational hierarchy (flat versus tall, casual versus formal attire, etc.). Other highly
successful firms with similar cultural aspects from the same period include Southwest
Airlines and Microsoft. Originally, the company stood in opposition to staid competitors
like IBM by default, thanks to the influence of its founders; Steve Jobs often walked around
the office barefoot even after Apple was a Fortune 500 company. By the time of the "1984"
TV ad, this trait had become a key way the company attempts to differentiate itself from its
competitors.

As the company has grown and been led by a series of chief executives, each with his
own idea of what Apple should be, some of its original character has arguably been lost, but
Apple still has a reputation for fostering individuality and excellence that reliably draws
talented people into its employ, especially after Jobs' return. To recognize the best of its
employees, Apple created the Apple Fellows program, awarding individuals who made
extraordinary technical or leadership contributions to personal computing while at the
company. The Apple Fellowship has so far been awarded to a few individuals including Bill
Atkinson, Steve Capps, Rod Holt, Alan Kay, Guy Kawasaki, Al Alcorn, Don Norman, Rich
Page, and Steve Wozniak.

Numerous employees of Apple have cited that projects without Jobs' involvement
often take longer than projects with his involvement. Another presents the image of Jobs
"wandering the hall with a flame thrower in hand, asking random people 'do you work on
MobileMe?'".

Users

Apple aficionados wait in line around an Apple retail store in anticipation of a new
product. This branch is located on Fifth Avenue in New York City, with a glass cube housing
a cylindrical elevator and a spiral staircase that lead into the subterranean store.

While this brand loyalty is considered unusual for any product, Apple appears not to
have gone out of its way to create it. At one time, Apple evangelists were actively engaged
by the company, but this was after the phenomenon was already firmly established. Apple
evangelist Guy Kawasaki has called the brand fanaticism "something that was stumbled
upon". Apple has, however, supported the continuing existence of a network of Mac User
Groups in most major and many minor centers of population where Mac computers are
available.

Mac users would meet at the European Apple Expo and the San Francisco Macworld
Conference & Expo trade shows where Apple traditionally introduced new products each
year to the industry and public until Apple pulled out of both events. While the conferences
continue, Apple does not have official representation there. Mac developers, in turn,
continue gather at the annual Apple Worldwide Developers Conference.
 Apple Store openings can draw crowds of thousands, with some waiting in line as
much as a day before the opening or flying in from other countries for the event. The New
York City Fifth Avenue "Cube" store had a line as long as half a mile; a few Mac fans took the
opportunity of the setting to propose marriage. The Ginza opening in Tokyo was estimated
in the thousands with a line exceeding eight city blocks.

John Sculley told The Guardian newspaper in 1997: "People talk about technology,
but Apple was a marketing company. It was the marketing company of the decade."

Research by NetRatings indicate that the average Apple consumer is usually more
affluent and more well-educated than PC consumers. The research indicated that this
correlation could stem from the fact that on average Apple Inc. products are more
expensive than PC products.

Corporate affairs

During the Mac's early history Apple generally refused to adopt prevailing industry
standards for hardware, instead creating their own. This trend was largely reversed in the
late 1990s beginning with Apple's adoption of the PCI bus in the 7500/8500/9500 Power
Macs. Apple has since adopted USB, AGP, HyperTransport, Wi-Fi, and other industry
standards in its computers and was in some cases a leader in the adoption of standards
such as USB. FireWire is an Apple-originated standard that has seen widespread industry
adoption after it was standardized as IEEE 1394.

Ever since the first Apple Store opened, Apple has sold third party accessories. This
allows, for instance, Nikon and Canon to sell their Mac-compatible digital cameras and
camcorders inside the store. Adobe, one of Apple's oldest software partners, also sells its
Mac-compatible software, as does Microsoft, who sells Microsoft Office for the Mac. Books
from John Wiley & Sons, who publishes the For Dummies series of instructional books, are
a notable exception, however. The publisher's line of books were banned from Apple Stores
in 2005 because Steve Jobs disagreed with their decision to publish an unauthorized Jobs
biography, iCon.

Headquarters

Company headquarters on Infinite Loop in Cupertino, California

Apple Inc.'s world corporate headquarters are located in the middle of Silicon
Valley, at 1 Infinite Loop, Cupertino, California. This Apple campus has six buildings that
total 850,000 square feet (79,000 m2) and was built in 1993 by Sobrato Development Cos.

In 2006, Apple announced its intention to build a second campus on 50 acres

(200,000 m2) assembled from various contiguous plots. The new campus, also in Cupertino,
will be about 1 mile (1.6 km) east of the current campus.

Advertising
 Since the introduction of the Macintosh in 1984 with the 1984 Super Bowl
commercial to the more modern 'Get a Mac' adverts, Apple has been recognized in the past
for its efforts towards effective advertising and marketing for its products, though its
advertising has been criticized for the claims of some more recent campaigns, particularly
2005 Power Mac ads[139][140][141] and iPhone ads in Britain.

Logos

The original logo with Isaac Newton under an apple tree

The rainbow "bitten" logo, used from late 1976 to 1998

The monochrome logo, used since 1998

Apple's first logo, Wayne, depicts Sir Isaac Newton sitting under an apple tree.

Almost immediately, though, this was replaced by Rob Janoff's "rainbow Apple", the
now-familiar rainbow-colored silhouette of an apple with a bite taken out of it. Janoff
presented Jobs with several different monochromatic themes for the "bitten" logo, and Jobs
immediately took a liking to it. While Jobs liked the logo, he insisted it be in color to
humanize the company. The Apple logo was designed with a bite so that it would be
recognized as an apple rather than a cherry. The colored stripes were conceived to make
the logo more accessible, and to represent the fact the monitor could reproduce images in
color. The logo is often erroneously referred to as a tribute to Alan Turing, with the bite
mark a reference to his method of suicide. [145] Both the designer of the logo and the
company deny that there is any homage to Turing in the design of the logo.

In 1998, with the roll-out of the new iMac, Apple discontinued the rainbow theme
and began to use monochromatic themes, nearly identical in shape to its previous rainbow
incarnation, on various products, packaging and advertising. An Aqua-themed version of
the monochrome logo was used from 2001–2003, and a Glass-themed version has been
used since 2003.

Slogans

Apple's first slogan, "Byte into an Apple", was coined in the late 1970s. From 1997–
2002, Apple used the slogan Think Different in advertising campaigns. The slogan had a
lasting impact on their image and revived their popularity with the media and customers,
and the grammar caused a bit of discussion (i.e. "think" is a verb, which is modified by
adverbs; therefore the adverb "differently" should be used, not the adjective "different").
Although the slogan has been retired, it is still closely associated with Apple. Apple also has
slogans for specific product lines — for example, "iThink, therefore iMac" was used in 1998
to promote the iMac, and "Say hello to iPhone" has been used in iPhone advertisements.
"Hello" was also used to introduce the original Macintosh, Newton, iMac ("hello (again)"),
and iPod.

Commercials

Apple's product commercials gained fame for launching musicians into stardom as a
result of their eye-popping graphics and catchy tunes. First, the company popularized
Canadian singer Feist's "1234" song in its ad campaign. Later, Apple used the song "New
Soul" by French-Israeli singer-songwriter Yael Naim to promote the MacBook Air. The
debut single shot to the top of the charts and sold hundreds of thousands of copies in a
span of weeks.

Environmental record

Greenpeace, an environmental organization, has confronted Apple on various

environmental issues, including promoting a global end-of-life take-back plan, non-
recyclable hardware components, and toxins within the iPhone hardware. Since 2003 they
have campaigned against Apple regarding their chemical policies, in particular the
inclusion of PVC and BFRs in their products, both of which have serious negative health
effects. At the 2007 Macworld Expo, Greenpeace presented a critique of Apple. Rick Hind,
the legislative director of Greenpeace's toxics campaign, said, "(The Company) is getting
greener, but not green enough." Hind commented further, "The Macbook Air has less toxic
PVC plastic and less toxic BFRs, but it could have zero and that would make Apple an eco-
leader." On May 2, 2007, Steve Jobs released a report announcing plans to eliminate PVC
and BFRs by the end of 2008. Apple has eliminated toxic vinyl plastic (PVC) and
brominated flame retardants (BFRs) across its product range. It became the first laptop
maker to remove PVC and BFRs.

In Greenpeace’s Guide to Greener Electronics that scores electronics manufacturers

on their policies regarding toxic chemicals, recycling and climate change, Apple ranked 5th
out of 18 leading electronic makers in May 2010 with a score of 4.9/ 10. Greenpeace
criticizes for example that Apple has yet to make a statement on the need for mandatory
greenhouse gas emissions reductions. In the first edition, released in August 2006, Apple
scored 2.7/10.

In May 2008, Climate Counts, a nonprofit organization dedicated to directing

consumers toward the greenest companies, gave Apple 11 points out of a possible 100,
which placed the company last among electronics companies. Climate Counts also labeled
Apple with a "stuck icon," and the environmental group added that Apple was "a choice to
avoid for the climate conscious consumer." By 2010, Apple had earned a score of 52 / 100,
which puts Apple in their top category "Striding."

The Environmental Protection Agency rates Apple highest amongst producers of

notebook computers, and fairly well compared to producers of desktop computers and LCD
displays.

In June 2007, Apple upgraded the MacBook Pro, replacing cold cathode fluorescent
lamp (CCFL) backlit LCD displays with mercury-free LED backlit LCD displays and arsenic-
free glass, and has since done this for all notebooks. Apple has also phased out BFRs and
PVCs from various internal components. Apple also offers detailed information about the
emissions, materials, and electrical usage of each product.

In June 2009, Apple's iPhone 3GS was free of PVC, arsenic, BFRs and had an efficient
power adapter.

In October 2009, Apple upgraded the iMac and MacBook, replacing the cold cathode
fluorescent lamp (CCFL) backlit LCD displays with mercury-free LED backlit LCD displays
and arsenic-free glass. This means all Apple computers have mercury free LED backlit
displays, arsenic-free glass and are without PVC cables. All Apple computers also have
EPEAT Gold status.

Labor practices

In 2006, the Mail on Sunday reported that sweatshop conditions existed in factories
in China, where the contract manufacturers, Foxconn and Inventec, operate the factories
that produce the iPod. The article stated that one complex of factories that assemble the
iPod, among other items, for instance, had over 200,000 workers that lived and worked in
the factory, with workers regularly doing more than 60 hours of labor per week. The article
also reported that workers made around $100 per month were required to live on the
premises and pay for rent and food from the company, which generally amounted to a little
over half of workers' earnings.

Immediately after the allegations, Apple launched an investigation and worked with
their manufacturers to ensure that conditions were acceptable to Apple. In 2007, Apple
started yearly audits of all its suppliers regarding worker's rights, slowly raising standards
and pruning suppliers that did not comply. Yearly progress reports have been published
since 2008. In 2010, workers in China planned to sue iPhone contractors over poisoning by
a cleaner used to clean LCD screens. One worker claimed that they were not informed of
possible occupational illnesses.

Republic of the Philippines

Tarlac State University

College of Business and Accountancy

 Submitted by:

Melissa G. Dizon

FM 2- Irreg

Submitted to:

Mr. Winston Abalos