Group+11A

**The Impact of Apple Inc. on the Global Market**

**History of Apple Inc.** by //**Morgan** Denno//

**1976**- __Steve Wozniak and Steve Jobs__ start Apple Computer Inc. and launch the Apple I.



**1977**-Apple __logo__ is created and the Apple II is released. **1980**- Apple becomes publicly owned and stock increases by 1700%. **1982**- Apple becomes the first personal computer company to reach 1 billion in sales.

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**1984**- Debut of the __Macintosh__, known as the “people’s computer” sold 70,000 computers in the first 100 days. The “1984” Macintosh commercial during the Superbowl becomes known “the worst commercial ever seen” by some, and a “masterpiece” by others. The Lisa is jointly released but fails in the shadow of the Macintosh. **1988**-Apple organizes into Apple Europe, Apple America, Apple Pacific and Apple Products allowing Apple to become one of the fastest growing and corporations in the world. **1989**- Macintosh SE and II are released. **1991**- Introduction of __PowerBook__. **1993**- Newtown Message Pad is released but is a failure. **1994**- Power Macintosh line is released.



**1998**- iMac and Powerbook G3 are announced are announced and have 150,000 pre orders, and easily becomes the fastest growing PC. **1999**- __Power Macintosh G3__ is released at the San Francisco Mac World Expo in blue and white and iMac is released in 5 different colors. iBook is released at the Mac World Expo in New York City and is preordered 140,000 times. **2001**- Jobs announced that they would start to build Apple retail stores across the country for better availability and accessibility and the first __iPod__ holds about 1000 songs.



**2003**- Apple opens up its first overseas store in Tokyo, Japan and iTunes store opens. **2004**- Apple opens up first European store in London, England. **2006**- The MacBook Pro is released and is 3 times faster than any previous computers **2007**- Apple Computer Inc. became Apple Inc. and the __iPhone__ is released. **2010**- The __iPad__ is released. Named in the Top 50 inventions of 2010.

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**Apple's Presence in Asia** by //**Josh** French//

On November 30th, 2003 Apple opened it's first retail store on the Asian continent in Ginza, Japan, just over two years after the first Apple Retail Store opened in the United States. Since then, Apple has opened 6 more retail stores in Japan including stores in Osaka, Nagoya, and Shibuya, among others. Japan would remain the only country in Asia to have an Apple Retail Store until 2008 when the first store opened in Beijing, China. The 2008 Olympic Summer Games being held in Beijing provided the motivation for Apple to enter China, but this store located in the Sanlitun District was not originally planned to be the first retail store in China. After reports surfaced the Qianmen Street store would not be ready in time for the Olympics, the Sanlitun store was media type="youtube" key="C4Bk8SorZIs?fs=1" height="307" width="384" align="left" pushed ahead to eventually become Apple's first retail presence in China. Although Apple has recently added two more retail stores in Hong Kong Plaza and Xidan Joy City, the pride and joy of the Apple Retail Store in China sits in the Pudong District of Shanghai which opened July 10th, 2010 to a crowd of thousands of Apple fans eager to step foot into the 16,000+ square-foot store. Now known as Apple's flagship Chinese retail store, it boasts a design similar to New York's Fifth Avenue store, but instead of a cube-shaped glass entrance, Pudong's store is entered through a 40-foot tall cylinder made almost entirely of glass. Although there is a mere 4 retail stores currently in China, Apple plans to open another 25 stores in the country over the next two years. With Japan and China as the only countries in Asia currently with retail stores, eleven stores in total, there remains a large population of people Apple has yet to reach.

Because of the lack of a retail store presence in Asia compared to the almost 300 U.S. stores, many in Asia are forced to purchase Apple products through underground electronic markets. When the iPhone 4 went on sale in China, there was no limit placed on the number of iPhones that could be purchased by a single person, whereas U.S. customers were limited to a maximum of two iPhones. Because of this, illegal distributers bought cases of iPhones and resold them at prices 300% marked up from retail. Analysts have said that over one million iPhones were brought into the country illegally, and industry giant Lenovo said Apple was missing a huge opportunity in the Chinese market because the company was spending too little time serving Chinese consumers and understanding their needs. Most people in the U.S. consider Apple to be a huge success as they passed Microsoft for market capitalization in May of 2008 and with the iPhone holding a 28% market share in the U.S., but in the Chinese market, Apple has less than 1% share in the mobile market, while less than 5% market share in other areas of interest as well. Needless to say, the Asian market remains a place of great possible growth for Apple over the coming years.

Not only is China known for their recent Apple retail store openings, but China is also the center for a majority of the production of Apple products such as the iPad. The most notable Chinese production company is Foxconn, with its Shenzen facility surrounded by recent controversy (discussed below). Currently, the Shenzen location produces 2.5 million iPads per month, while the new Chengdu facility opened their first iPad production line, capable of shipping 300,000 iPads per month. The single production line will grow to 50 in the coming months, making over 40 million iPads per year, a greatly needed throughput for Apple as they are expected to release the 2nd-generation iPad in the first quarter of 2011.

**Apple Inc. and Europe** by //**Ashley** Horcher//



**International European Stores**

media type="custom" key="7641769" width="200" height="200" align="left" As of November 13, 2010 App ﻿ le has opened over 323 stores : 236 in 42 US states, 29 in the United Kingdom (25 in England, 2 in Scotland, 1 in Northen Ireland and 1 in  Wales), 19 in Canda 10 in Australia, 7 in Japan, 4 in China, 5 in France, 3 in Switzerland, 4 in Germany, 4 in Italy and 2 in Spain. The Apple Store in Regent Street (London) was the first to open in Europe in November 2004. Regent Street store was the most profitable shop in London with the highest sales per square foot. "Takings have soared to £60million a year, or £2,000 per square foot - more than double the estimated sum made by Harrods," Tobin reports. "Neil Saunders, a spokesman for retail analysis agency Verdict, which estimated the figure, said: 'To make £60million a year from a shop of Apple's size is absolutely phenomenal.” Regent Street store was finally surpassed in size by the nearby Apple Store in Covent Garden (London), which is currently the biggest Apple store in the world. (BBC news) This Apple store was the most expensive store to build. The historic building had to be restored which probably cost more than $35 million.

**Distribution of the iPhone**

According to //Moldova//, Europe (Britain), was the first among the countries, that saw Apple's iPhone. The iPhone went on sale in Britain on Nov. 9 2007 through a mobile operator called O2. This marked the first time the combination cell phone-iPod was available outside the United States. Consumers paid 269 pounds (US$536) for the 8-gigabyte model. This was $139 more than what Apple charges in the United States. The iPhone offered in Britain has the same technical specifications as the U.S. model, but the price includes the U.K.'s value-added tax. //The Guardian// reported O2 agreed to share as much as 40 percent of the revenue it draws from iPhone customers. The newspaper said O2 divided its share further with The Carphone Warehouse PLC; which also sold the device. O2 has gambled on the iPhone as a way to rapidly expand its share of the British market's highest-value subscribers, said Ben Wood, director of telecom research company CCS Insight.

**Next to Hit Europe**

An Article written by Josh Ogn, from the //AppleInsider// claims the iPad is soon to be launched in Northern European countries. Continuing the global rollout of its highly successful tablet device, Apple will launch the iPad in Norway, Sweden, Finland and Denmark next month, according to the //Wall Street Journal//. The iPad has sold more than 7.5 million since it went sale in April. Prices range from $499 for the cheapest model in the United States to 699 pounds ($1,119) for the most expensive version in Britain.

According to Erica Slivka from //MacRumors.com,// Apple announced that it will be bringing its iAd mobile advertising platform to the UK and France next month and Germany is scheduled follow in January. A number of high-profile European companies have already signed on to the program.""We're thrilled to add leading global brands to the iAd Network inEurope and create even more great opportunities for developers," said Andy Miller, Apple's vice president of iAd. "In just four months, we've doubled the number of advertisers on the network and thousands of developers now have a valuable new source of revenue." Apple claims iAd will combine the emotion of TV advertising with the interactivity of internet advertising.

**Apple U.S.A.** by **//Trenton//** //Villanueva//




 * Overview**

Apple Inc, formerly Apple Computer Inc., was established on April 1, 1976 in Cupertino, California, in the heart of what is now called Silicon Valley. Apple is now one of the most valuable companies in the world, worth an astonishing $274 million, according to mashable.com. Although Apple has gone a long way in becoming a truly multinational corporation, employing over 46,600 employees world wide (according to Apple’s 10-K form), its roots are still firmly emplanted in the United States. According to the 10-K form, 44% of Apple’s 2010 net sales ($65,225) came from sales within the United States. Of the over 300 Apple Stores that have opened to date, 226 stores are located in the United States, according to apple.com. Apple’s two largest conferences, the Apple Worldwide Developers Conference and the Macworld Expo, are both held in California. As of September 25, 2010, Apple owned or leased 10.6 million square feet of land, primarily in the United States. This includes Apple headquarters, still located in Cupertino.


 * One Infinite Loop**

In 2008, Steve Jobs announced plans to build a second campus in Cupertino. This second campus, according to //Fortune//, will be able to house between 3,000 and 3,500 employees.
 * Apple’s corporate headquarters, Apple Campus, is located on One Infinate Loop (street) in Cupertino, California. Apple Campus occupies 32 acres, according to //AppleInsider,// including six four-story main buildings and numerous additional smaller buildings. Apple Campus was completed in 1993, according to the Sobrato Organization, the company that built it. Overall, Apple has liscensed over 2 million square feet of land from Cupertino, according to //The Business Journal.// **


 * Apple Stores**



Of the 317 current Apple Stores that have opened in 11 countries, 226 have opened within the United States. 42 states have an Apple Store (not including Washington D.C.) and more are opening all the time, according to apple.com. The first Apple Store opened on May 19, 2001 in the Tysons Corner Center in Virginia. Later that same day, another Apple Store opened in Glendale California. Apple Stores are a retail chain selling Apple related products, such as iPods, iPads, Apple Computers, and various software. Apple Stores also commonly include interactive tutorials and classes, as well as the Genius Bar, an in-house technical support group.As of June, Apple Stores have made $2.58 billion in 2010, a 72.8 percent increase over last years profits, according to //cnet.com//.


 * Apple Conferences and Consumer Culture**

The first large Apple conference, the Apple Worldwide Developers Conference (WWDC) is held by Apple annually in California to showcase technology and software to other developers. The conference caps out at 5,000 attendees and is commonly used as a forum for Steve Jobs' famous keynote presentations. The first WWDC was held in 1983, according to developers.apple.com.

The Macworld Conference & Expo is held every January in San Francisco, according to the Expo's website. The Expo was started by //Macworld// magazine, the best-selling Apple magazine in the United States. This four-day event was first started in 1985, according to Peggy Kilburn, who founded the event. Along with the WWDC, The Macworld Conference and Expo is known as a forum for unveiling new Apple products, as well as its keynote presentations by Apple co-founder, Steve Jobs. According to //macworld.com,// the 2007 Expo was the largest yet, with 45,572 attendees. Attendance grew another 10% in 2008, according to //businesswire.com// The 2010 Expo was the first ever to not include Apple, according to //arstechnica.com.//

The continued success of the Macworld Expo can be contributed to Apple's large and uniquely loyal consumer base. According to //macnn.com//, Apple scored the highest for the 'computer' category in the Net Promotor Industry Report in 2006. This report measure things such as consumer loyalty and brand strength within the United States. According to Dr. Laura Brooks, vice president of research at Satmetrix Systems, "Apple, whose score far outranks its closest competetor, is well known for its passionate and dedicated customer base."


 * Apple Grants and Donations**

In 1999, Apple discontinued there grants and equipment donations program, according to eschoolnews.com. Since 1978, Apple had been very active in awarding both grants and equipment to K-12 schools around the U.S, including San Diego's own Unified School District. According to the article, "Apple Computer halts 20-year program of grants and donations to schools," Apple has donated over $30 million to 550 schools and institutions. Also according to the article, "Now, a statement on the company’s web site reads,' . . . Apple made the decision to limit its involvement in grants and equipment loans to individuals and institutions in order to help the company maintain long-term profitability.'"

**Apple Controversies** by //**Alex** Garcia//


 * Foxconn **

One of the biggest controversies among Apple Inc. involves a factory in that originally opened in Shenzen, China and employs over 920,000 employees. Foxconn, the worlds largest electronics contract manufacturer, is known to work with high tech giants such as Apple, HP, Nintendo, Nokia and Microsoft. Working conditions at Foxconn are substandard, as are wages. Employees essentially live on the “campus” and in effect are forced to pay rent, eat and work all in the same place. The complex even broadcasts its own television network, Foxconn TV. With working conditions so bad, Foxconn has caught the spotlight due to a string of worker suicides. The numbers for 2010 alone are estimated at 14, although some sources say up to 16. Apple has been under scrutiny for doing business with these “labor camp” style factories and has publically shown concern for the working conditions. Experts have noted the difficulty in tech companies such as Apple divorcing the manufacturing giant, especially when they sold over 2 million iPads in just under 60 days. Apple has become a tech juggernaut and incredibly profitable, although at the expense of Foxconn employees’ well being. Due to the negative publicity, Foxconn has installed anti-suicide netting outside of buildings to discourage jumping, as well as implemented a 30% wage increase.

__//Below is a table of the 2010 suicides.//__ (http://en.wikipedia.org/wiki/2010_Foxconn_suicides)
 * ~ English name ||~ Chinese name ||~ Gender ||~ Age ||~ Date of death ||~ Description ||
 * Unknown || Unknown || Male || 22 || 05 Nov 2010 || Fell from building. ||
 * Mr. Li || 李X || Male || 20+ || 11 March 2010 || Fell from building. ||
 * Zhu Chen-ming || 祝晨明 || Male || 24 || 11 May 2010 || Fell from building. ||
 * Liang Chao || 梁超 || Male || 21 || 14 May 2010 || Fell from building. ||
 * Tian yu || 田玉 || Female || ? || 17 March 2010 || Fell from building. ||
 * Mr. Liu || 刘X || Male || 18 || 20 Jul 2010 || Fell from the sixth floor of a dormitory building. ||
 * Nan Gan || 南刚 || Male || 21 || 21 May 2010 || Fell from building. ||
 * Ma Xiang-qian || 马向前 || Male || 19 || 23 Jan 2010 || Fell from building. ||
 * Li Hai || 李海 || Male || 19 || 25 May 2010 || Fell from building. ||
 * Mr. He || 贺X || Male || 23 || 26 May 2010 || Fell from building. ||
 * Unknown || Unknown || Male || 23 || 29 March 2010 || Fell from building. ||
 * Rao Shu-qin || 饶淑琴 || Female || 19 || 6 April 2010 || Fell from building. ||
 * Lu Xin || 卢新 || Male || 24 || 6 May 2010 || Fell from building. ||
 * Ms. Ling || 宁X || Female || 18 || 7 April 2010 || Fell from building. ||


 * Patent wars **

Earlier this year, Apple, and many other mobile device manufacturers, have been filing lawsuits against each other in the mobile device arms race. Companies that

become left behind are willing to assert themselves however possible in order to gain ground. Apple has become a huge target for many of the other companies; however Apple hasn’t only been sitting on the defensive. Later in 2010 with the rise of the Google based Android mobile operating system, Apple filed a series of lawsuits against HTC, an Android-based handset powerhouse, for up to 20 patent infringements. HTC asserted itself publicly and then counter sued Apple in an attempt to cease any iPhone, iPod and iPad sales for 5 patent infringements. These lawsuits are all still current, and no decisions have been made as of now. Aside are a couple depictions of the mobile patent war, Apple is a main player, both offensively and defensively. Apple and Adobe have been at war for some time now over the future of the internet. Adobe believes in Flash and Apple believes in HTML5. Flash wasn’t supported by iPods, iPhones or iPads until third party developers enabled it to be. As of October of this year, Apple said it would not ship any of its Macbooks with Flash preinstalled, sending a message to Adobe, as well as the consuming public. Earlier in 2010, Steve Jobs wrote a 1500 word open letter about his stance on Adobe Flash and publically asserted that he did not support it. In August, Adobe CEO said “They’ve [Apple] made their choice. We’ve made ours and we’ve moved on,” implying the fight was over on mutual terms, however the battle over HTML5 and Flash is still as relevant as can be.
 * Apple vs Adobe **



Apple has caught much criticism from tech blogs from around the internet about their censorship in the App Store. What first started as a safeguard, (no unstable apps, no transmitting location data without user permission), has turned into a list of reasons for unac ceptable apps. In addition to safeguards, the App Store will not accept beta apps, will not allow apps to install items to the dock, apps that drain battery life, apps that generate excessive heat, promotes illegal file sharing, apps that encourage excessive consumption, apps that misspell Apple product names (ie. iTunz), apps that look like Apple applications, apps that are mean spirited or defamatory and last but not limited to, apps that replicate pre-installed applications. Publications the internet around have criticized Apple for creating a closed environment and that it is a slippery slope in terms of what is and isn’t allowed on our devices.
 * App store censorship **

= = = = =The Future of Apple = by //**Michelle** Moore//



**Apple's New Data Center**
Apple has begun construction on an enormous new data center in rural Maiden, North Carolina. The new $1 billion dollar structure will be an estimated 500,000 square feet and will be entirely located within a single building (Chen, 2009). The new center is 5 times the size of it's west coast counterpart located in Newark,California. Despite the size of the new building, Apple has continued it's commitment to energy efficiency and promoting "green" products by hiring Olivier Sanche from eBay, who is now Apple’s Director of Global Data Center Operations. Olivier is very well known and respected for being passionate about saving the environment and Apple hopes he will be able to give a "green" makeover to it's newest mega data center. The environmentally conscious steps taken with this project could pave the way to redesign other data centers to make them more efficient and less detrimental to the environment. Apple CFO Peter Oppenheimer stated, "The facility will provide Apple with a major East Coast infrastructure hub to support its iTune music store and iPhone app store" (Kahney, 2010). However, many technology analysts, journalists, bloggers, and enthusiasts believe there is more to the new development than simple storage for services that are already in place. The size and location leads one to believe that Apple was focused on cost and scale, rather than connectivity regarding the center. Why such a big building with low connectivity? The answer, according to most, is that Apple is planning a BIG move into the world of 'cloud computing'.



Cloud Computing
Cloud computing is a method of data hosting where users can access their personal information and services though the internet, rather than having it stored on their personal computers. This advancement in technology would allow for consumers to access personal files from any computer in the world with internet access. One of the most recent rumors involves streaming iTunes. Last year Apple purchased LaLa.com, a cloud based music service, that will most likely move iTunes into the 'cloud' realm of the web (Padilla, 2009). Thismeans that you would no longer have to have your computer with you to listen to your favorite artists. This would also allow Apple to compete with sites like Pandora. The move into cloud computing could be extremely beneficial to Apple by making content purchased by the user available on any Apple product they own. Consumers would be more likely to buy all "i" devices knowing that their favorite movies, TV shows, songs, and pictures could be easily accessed anywhere around the globe.

To most of us it seems that Apple is taking over technology as we know it. The iPad is estimated to sell 40 million units by the end of 2011 and the MacBook Air released in October of 2010 is the lightest, most reliable, and quiet notebook to date . New innovations are being created and tested everyday to keep up with today's media and technology crazed society. One area that Apple will be facing fierce competition in is the mobile phone arena. The feud between Microsoft and Apple has been replaced by an even bigger rivalry, Apple vs. Google. In August 2009, Google CEO Eric Schmidt stepped down from the Apple Board of Directors after Appl e failed to allow 2 Google apps to be purchased by it's users (Burrows, 2010). The recent split combined with Google's release of the Nexus One phone has people speculating that Google will soon overturn Apple as the leader in smart phone technology. According to Busineesweek.com, the company that can "nail mobile ads" will be the most likely to win this battle (Burrows, 2010). With Apple's recent purchase of Quattro Wireless, a mobile advertising company, they hope to do just that. Only time will tell who will reign supreme in the race for technology's top company, but one thing is certain; Apple isn't going anywhere, any time soon.
 * Will Apple Reign Supreme? **

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