- Braeburn Capital
- FileMaker Inc.
- Anobit
- Apple Inc. (NASDAQ: AAPL; formerly Apple Computer, Inc.) is an American multinational corporation that designs and sells consumer electronics, computer software, and personal computers. The company's best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. Its 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; the Safari web browser; and iOS, a mobile operating system.
As of July 2011, Apple has 364 retail stores in thirteen countries,[5] and an online store.[6] It is the largest publicly traded company in the world by market capitalization,[7][8] overtopping ExxonMobil by some $150 billion, as well as the largest technology company in the world by revenue and profit, more than Google and Microsoft combined.[9][10] As of September 24, 2011, the company had 60,400 permanent full-time employees and 2,900 temporary full-time employees worldwide;[4] its worldwide annual revenue in 2010 totalled $65 billion, growing to $108 billion in 2011.[3]
Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012.[11][12][13][14][15] However, the company has received widespread criticism for its contractors' labor, and for its environmental and business practices.[16][17]
Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977,[18]
the company was named Apple Computer, Inc. for its first 30 years. The
word "Computer" was removed from its name on January 9, 2007,[19] as its traditional focus on personal computers shifted towards consumer electronics.[20]
History
1976–1980: The early years
Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne,[1] to sell the Apple I personal computer kit. They were hand-built by Wozniak[21][22] and first shown to the public at the Homebrew Computer Club.[23] 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.[24] The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,723 in 2012 dollars, adjusted for inflation.)[25][26][27][28][29][30]
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 incorporated January 3, 1977[18] 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.[31][32]
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 character cell based 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.[33]
The Apple II was chosen to be the desktop platform for the first "killer app" of the business world—the VisiCalc spreadsheet program.[34]
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.[34]
According to Brian Bagnall, Apple exaggerated its sales figures and was
a distant third place to Commodore and Tandy until VisiCalc came along.[35][36]
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.[37]
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 (800,000
split-adjusted shares) of Apple at the pre-IPO price of $10 a share.[38] Jobs was immediately convinced that all future computers would use a graphical user interface (GUI), and development of a GUI began for the Apple Lisa.[39]
In 1980, Apple went public, generating more capital than any IPO since Ford Motor Company in 1956 and instantly creating more millionaires (about 300) than any company in history.[40]
1981–1985: Lisa and 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.[41]
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,[42] and is now considered a watershed event for Apple's success[43] and a "masterpiece".[44][45]
The Macintosh initially sold well, but follow-up sales were not strong[46] 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, and PageMaker, an early desktop publishing
package. The Mac was particularly powerful in this market due to its
advanced graphics capabilities, which had necessarily been 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.[47]
In 1985 a power struggle developed between Jobs and CEO John Sculley, who had been hired two years earlier.[48]
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.[46] Jobs resigned from Apple and founded NeXT Inc. the same year.[49]
1986–1993: Rise and fall
Having learned several painful lessons after introducing the bulky Macintosh Portable in 1989, Apple introduced the PowerBook
in 1991. The Macintosh Portable was designed to be just as powerful as a
desktop Macintosh, but weighed 7.5 kilograms (17 lb) 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 brought increasing revenue.[48]
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 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,
who were the primary dealers for these models. The result was
disastrous for Apple as consumers did not understand the difference
between models.[50]
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.[citation needed] Ultimately, all this proved too-little-too-late, as Apple's market share and stock prices continued to slide.[citation needed]
Apple saw the Apple II series as too expensive to produce, while taking away sales from the low end Macintosh.[51] 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.[51] 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.[52] 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.[53]
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.[54]
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 was itself becoming outdated because 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.[55]
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.[56]
In 1996, Michael Spindler was replaced by Gil Amelio as CEO. Gil Amelio made many changes at Apple, including extensive layoffs.[57] 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.[58]
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.[59]
On November 10, 1997, Apple introduced the Apple Online Store, tied to a new build-to-order manufacturing strategy.[60][61]
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.[62][63] The iMac featured modern technology and a unique design, and sold almost 800,000 units in its first five months.[64]
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.[65] The following year, Apple released two video editing products: iMovie for consumers and, for professionals, Final Cut Pro, which has gone on to be a significant video-editing program, with 800,000 registered users in early 2007.[66] In 2002 Apple purchased Nothing Real for their advanced digital compositing application Shake,[67] as well as Emagic for their music productivity application Logic, which led to the development of their consumer-level GarageBand application.[68][69] iPhoto's release the same year completed the iLife suite.[70]
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.[71]
On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California.[72] Later on July 9 they bought Spruce Technologies, a DVD authoring company. On October 23 of the same year, Apple announced the iPod
portable digital audio player, and started selling it on November 10.
The product was phenomenally successful — over 100 million units were
sold within six years.[73][74] 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.[75]
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.[76][77]
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.[78] 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 one year sooner than announced.[78] The Power Mac, iBook, and PowerBook brands were retired during the transition; the Mac Pro, MacBook, and MacBook Pro became their respective successors.[79][80] On April 29, 2009, The Wall Street Journal reported that Apple was building its own team of engineers to design microchips.[81]
Apple also introduced Boot Camp to help users install Windows XP or Windows Vista on their Intel Macs alongside Mac OS X.[82]
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.[83] 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."[84]
Although Apple's market share in computers had grown, it remained far
behind competitors using Microsoft Windows, with only about 8% of
desktops and laptops in the U.S.[85]
2007–2011: iPhone, iPod Touch and iPad
Delivering his keynote speech 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 were no longer
the main focus of the company, which had shifted its emphasis to mobile
electronic devices. The event also saw the announcement of the iPhone and the Apple TV.[86] 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.[87]
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.[88] 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.[89] Other record labels followed later that year.
In July of the following year, Apple launched the App Store to sell third-party applications for the iPhone and iPod Touch.[90]
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.[91]
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.[92]
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.[93]
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.[94] Despite Jobs' absence, Apple recorded its best non-holiday quarter (Q1 FY 2009) during the recession with a revenue of $8.16 billion and a profit of $1.21 billion.[95]
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.[96] In May of the same year, Apple's market cap exceeded that of competitor Microsoft for the first time since 1989.[97]
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. After a large amount
of media coverage including mainstream news organizations, Apple held a
press conference where they offered buyers a free rubber 'bumper' case,
which had been proven to eliminate the signal reduction issue. Later
that year Apple again refreshed its iPod line of MP3 players which introduced a multi-touch iPod Nano, iPod Touch with FaceTime, and iPod Shuffle with buttons which brought back the buttons of earlier generations.[98][99][100]
In October 2010, Apple shares hit an all-time high, eclipsing $300.[101] 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.[102] On January 6, 2011, the company opened their Mac App Store, a digital software distribution platform, similar to the existing iOS App Store.[103] Apple was featured in the documentary Something Ventured which premiered in 2011.
2011–present: Post–Steve Jobs era
On January 17, 2011, Jobs announced in an internal Apple memo that he
would take another medical leave of absence, for an indefinite period,
to allow him to focus on his health. Chief operating officer Tim Cook
took up Jobs' day-to-day operations at Apple, although Jobs would still
remain "involved in major strategic decisions for the company."[104] Apple became the most valuable consumer-facing brand in the world.[105] In June 2011, Steve Jobs surprisingly took the stage and unveiled iCloud.
iCloud is an online storage and syncing service for music, photos,
files and software which replaced MobileMe, Apple's previous attempt at
content syncing.[106]
This would be the last product launch Jobs would attend before his
death. It has been argued that Apple has achieved such efficiency in its
supply chain[107] that the company operates as a monopsony (one buyer, many sellers), in that it can dictate terms to its suppliers.[108][109] Briefly in July 2011, due to the debt-ceiling crisis, Apple's financial reserves were greater than those of the US Government.[110] On August 24, 2011, Jobs resigned his position as CEO of Apple.[111]
He was replaced by Tim Cook and Jobs became Apple's chairman. Prior to
this, Apple did not have a chairman and instead had two co-lead
directors, Andrea Jung and Arthur D. Levinson, who continued with those titles until Levinson became Chairman of the Board in November.[112]
On October 4, 2011, Apple announced the iPhone 4S,
which includes an improved camera with 1080p video recording, a dual
core A5 chip capable of 7 times faster graphics than the A4, an "intelligent software assistant" named Siri, and cloud-sourced data with iCloud.[113][114] One day later, on October 5, 2011, Apple announced that Jobs had died, marking the end of an era for Apple Inc.[115][116]
The iPhone 4S was officially released on October 14, 2011. On October
29, 2011, Apple purchased C3 Technologies, a mapping company, for $240
million. C3 is the third mapping company Apple has purchased so far.[117] On January 10, 2012, Apple acquired Anobit,
an Israeli hardware company that developed and supplies a proprietary
memory signal processing technology that improves the performance of
flash-memory used in iPhones and iPads for $390 million.[118]
On January 19, 2012, Apple's Phil Schiller introduced iBooks Textbooks for iOS and iBook Author for Mac OS X in New York.[119]
This was the first major announcement by Apple since the passing of
Steve Jobs, who stated in his biography that he wanted to reinvent the
textbook and education. The 3rd generation iPad was announced on March 7, 2012. It includes a Retina display, a new CPU, a five megapixel camera, and 1080p video recording.[120][121]
Products
Mac and accessories
- 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 Pro, professional notebook introduced in 2006, replacing the PowerBook.
- MacBook Air, ultra-thin, ultra-portable notebook introduced in 2008.
Apple also sells a variety of computer accessories for Mac computers including the AirPort wireless networking products,
Time Capsule,
Thunderbolt Display,
Magic Mouse,
Magic Trackpad,
Wireless Keyboard, and the
Apple Battery Charger.
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.
[122] It also includes a mobile version of
Safari for web 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.
[123] AT&T was initially the sole US provider of 3G wireless access for the iPad.
[124]
On March 2, 2011, Apple introduced an updated iPad model which had a
faster processor and two cameras on the front and back respectively. The
iPad 2 also added support for optional 3G service provided by
Verizon in addition to the existing offering by AT&T.
[125] However, the availability of the iPad 2 has been limited as a result of the devastating earthquake and ensuing
tsunami in Japan in March 2011.
[126]
On March 7, 2012, Apple introduced the iPad 3, aka, "The New iPad". The iPad 3 added
LTE service from
AT&T or
Verizon and an upgraded processor, the
A5X.
It also added the "Retina" display (2048 by 1536 resolution) originally
found on the iPhone 4 and iPhone 4S. The dimensions and form factor
remained relatively unchanged, with "The New iPad" being a fraction
thicker and heavier than the previous version, and minor positioning
changes.
[127]
Since the tablet launched in 2010, iPad users have downloaded 3
billion apps, while the total App Store downloads is up to over 25
billion downloads.
[128]
iPod
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 2009.
[129] 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 Shuffle, ultraportable digital audio player first introduced in 2005, currently available in a 2 GB model.
- iPod Nano, portable media player first introduced in 2005, currently available in 8 and 16 GB models. The latest generation has a FM radio, a pedometer, and a new multi-touch interface that replaced the traditional iPod click wheel.
- iPod Classic (previously named iPod from 2001 to 2007), portable media player first introduced in 2001, currently available in a 160 GB model.[130]
- 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 for HD video recording at 720p.[131]
iPhone
At the
Macworld Conference & Expo in January 2007, Steve Jobs revealed the long anticipated
[132] iPhone, a convergence of an Internet-enabled
smartphone and iPod.
[133] 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").
[133] The iPhone first became available on June 29, 2007 for $499 (4 GB) and $599 (8 GB) with an
AT&T contract.
[134] 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.
[135] On June 9, 2008, at
WWDC 2008, Steve Jobs announced that the iPhone 3G would be available on July 11, 2008.
[136] 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.
[137]
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.
[138]
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 phone's cellular signal and Wi-Fi antenna. The
current fix for this issue was a "
Bumper Case" for the phone distributed for free to all iPhone 4 owners for a few months. In June 2011, Apple overtook
Nokia to become the world's biggest smartphone maker by volume.
[139]
On October 4, 2011, Apple unveiled the
iPhone 4S,
which was released in the United States, Canada, Australia, United
Kingdom, France, Germany, and Japan on October 14, 2011, with other
countries set to follow later in the year.
[140] This was the first iPhone model to feature the
Apple A5 chip, as well as the first offered on the
Sprint network (joining
AT&T and
Verizon Wireless as the United States carriers offering iPhone models). On October 19, 2011, Apple announced an agreement with
C Spire Wireless
to sell the iPhone 4S with that carrier in the near future, marking the
first time the iPhone was officially supported on a regional carrier's
network.
[141]
Another notable feature of the iPhone 4S was
Siri voice assistant technology, which Apple had acquired in 2010,
[142]
as well as other features, including an updated 8 megapixel camera with
new optics. Apple sold 4 million iPhone 4S phones in the first three
days after its release, which made it not only the best iPhone launch in
Apple's history, but the most-successful launch of any mobile phone
ever.
[143]
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),
[144]
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.
[145] On May 31, 2007 a 160 GB drive was released alongside the existing 40 GB model
[146] and on January 15, 2008 a software update was released, which allowed media to be purchased directly from the Apple TV.
[147]
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.
[148]
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,
OS X, the latest version being
OS X Lion
(version 10.7). Apple also independently develops computer software
titles for its 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
iMovie,
iPhoto and
GarageBand. For presentation, page layout and word processing,
iWork is available, which includes
Keynote,
Pages, and
Numbers. iTunes,
QuickTime media player,
Safari web browser, and
Software Update are available as free downloads for both Mac OS X and
Windows.
Apple also offers a range of professional software titles. Their range of server software includes the operating system
OS X Server;
Apple Remote Desktop, a remote systems management application; and
Xsan, a
Storage Area Network file system. For the professional creative market, there is
Aperture for professional
RAW-format
photo processing;
Final Cut Pro, a video production suite;
Logic Pro, a comprehensive music toolkit; and
Motion, an advanced effects composition program.
Apple also offers online services with
iCloud,
which provides cloud storage and syncing for a wide range of data,
including email, contacts, calendars, photos and documents. It also
offers iOS device backup, and is able to integrate directly with
third-party apps for even greater functionality. iCloud is the fourth
generation of online services provided by Apple, and was preceded by
MobileMe, .Mac and iTools, all which met varying degrees of success.
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 attempted to differentiate itself from its competitors.
[149]
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,
[150] Steve Capps,
[151] Rod Holt,
[150] Alan Kay,
[152][153] Guy Kawasaki,
[152][154] Al Alcorn,
[155] Don Norman,
[152] Rich Page,
[150] and
Steve Wozniak.
[150]
Numerous employees of Apple have cited that projects without Jobs'
involvement often take longer than projects with his involvement.
[156] Another presents the image of Jobs "wandering the hall with a
flame thrower in hand, asking random people 'do you work on
MobileMe?'".
[157]
At Apple, employees are specialists who are not exposed to functions
outside their area of expertise. Jobs saw this as a means of having
best-in-class employees in every role. For instance,
Ron Johnson
who was Senior Vice President of Retail Operations until November 1,
2011, was responsible for site selection, in-store service, and store
layout, yet he had no control of the inventory in his stores (which is
done company wide by then-COO and now CEO
Tim Cook who has a background in supply-chain management). This is the opposite of
General Electric's corporate culture which has created well-rounded managers.
[158] [158]
Under the leadership of
Tim Cook
who joined the company in 1998 and ascended to his present position as
CEO, Apple has developed an extremely efficient and effective supply
chain which has been ranked as the world's best for the four years
2007–2010
[citation needed].
The company's manufacturing, procurement and logistics enables it to
execute massive product launches without having to maintain large,
profit-sapping inventories; Apple's profit margins have been 40 percent
compared with 10–20 percent for most other hardware companies in 2011.
Cook's catchphrase to describe his focus on the company's operational
edge is “Nobody wants to buy sour milk”.
[109] [159]
The company previously advertised its products as being made in America
up to the late 1990s, however as a result of outsourcing initiatives in
the 2000s almost all of its manufacturing is now done abroad. According
to a report by the
New York Times,
Apple insiders "believe the vast scale of overseas factories as well as
the flexibility, diligence and industrial skills of foreign workers
have so outpaced their American counterparts that “Made in the U.S.A.”
is no longer a viable option for most Apple products".
[160]
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.
| "The scenes I witnessed at the opening of
the new Apple store in London's Covent Garden were more like an
evangelical prayer meeting than a chance to buy a phone or a laptop. " |
| – Alex Riley, writing for the BBC[161] |
Apple's brand's loyalty is considered unusual for any product. 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".
[162] 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 to 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.
[163] 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.
[164] The
Ginza opening in Tokyo was estimated in the thousands with a line exceeding eight city blocks.
[165]
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."
[166]
Research in 2002 by
NetRatings
indicate that the average Apple consumer was usually more affluent and
better educated than other PC company consumers. The research indicated
that this correlation could stem from the fact that on average Apple
Inc. products are more expensive than other PC products.
[167][168]
Corporate affairs
During the Mac's early history Apple generally refused to adopt
prevailing industry standards for hardware, instead creating their own.
[169] 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.
[170] FireWire is an Apple-originated standard that has seen widespread industry adoption after it was standardized as
IEEE 1394.
[171]
Ever since the first Apple Store opened, Apple has sold third party accessories.
[172] For instance, at one point
Nikon and
Canon digital cameras were sold inside the store.
Adobe, one of Apple's oldest software partners,
[173] 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.
[174] After the launch of the
iBookstore, Apple stopped selling physical books, both online and at the Apple Retail Stores.
Headquarters
Worldwide
Main article:
Apple Campus
Apple Inc.'s world corporate headquarters are located in the middle of
Silicon Valley, at 1–6
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.
[175]
Apple created subsidiaries in low-tax places such as
Ireland, the
Netherlands,
Luxembourg and the
British Virgin Islands to cut the taxes it pays around the world. According to the
New York Times,
Apple was among the first tech companies to designate overseas
salespeople in high-tax countries in a manner that allowed the company
to sell on behalf of low-tax subsidiaries on other continents,
sidestepping income taxes. Apple was a pioneer of an accounting
technique known as the "Double Irish With a Dutch Sandwich," which
reduces taxes by routing profits through Irish subsidiaries and the
Netherlands and then to the Caribbean.
[176]
Plans
In 2006, Apple announced its intention to build a second campus on 50
acres (200,000 m²) assembled from various contiguous plots (east of N
Wolfe Road between Pruneridge Avenue and Vallco Parkway). Later
acquisitions increased this to 175 acres. The new campus, also in
Cupertino, will be about 1 mile (1.6 km) east of the current campus.
[177] The new campus building will be designed by
Norman Foster.
[178]
On June 7, 2011, Steve Jobs gave a presentation to Cupertino City
Council, detailing the architectural design of the new building and its
environs. The new campus is planned to house up to 13,000 employees in
one central four-storied circular building (with a café for 3,000
sitting people integrated) surrounded by extensive landscape (with
parking mainly underground and the rest centralized in a parking
structure). There will be additional buildings such as an auditorium,
R&D facilities, a fitness center and a dedicated generating plant as
primary source of electricity (powered by natural gas and other more
environmentally sound means).
Headquarters for Europe, the Middle East and Africa
Apple's headquarters for Europe, the Middle East and Africa (EMEA) are located in
Cork in the south of
Ireland.
[179][180][181][182][183][184][185] The facility, which opened in 1980, was Apple's first location outside of the United States.
[186]
Apple Sales International, which deals with all of Apple's
international sales outside of the USA, is located at Apple's campus in
Cork
[187] along with Apple Distribution International, which similarly deals with Apple's international distribution network.
[188]
Plans
On April 20, 2012, Apple announced the addition of 500 new jobs to
its European headquarters. This will bring the total workforce from
around 2,800 to 3,300 employees.
[189][190][191] The company will build a new office block on its Hollyhill Campus to accommodate the additional staff.
[192]
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
[193][194][195] and iPhone ads in Britain.
Name
According to Steve Jobs, Apple was so named because Jobs was coming back from an apple farm, and he was on a
fruitarian diet. He thought the name was "fun, spirited and not intimidating".
[196]
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, designed by Ron 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.
[197][198]
The Apple logo was designed with a bite so that it would not be
recognized as another fruit. The colored stripes were conceived to make
the logo more accessible, and to represent the fact the Apple II could
generate graphics in color.
[199]
This logo is often erroneously referred to as a tribute to
Alan Turing, with the bite mark a reference to his method of suicide.
[200][201] Both the designer of the logo and the company deny that there is any homage to Turing in the design of the logo.
[199][202]
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.
Steve Jobs and Steve Wozniak were
Beatles fans,
[203][204] but Apple Inc. had trademark issues with
Apple Corps Ltd., a multimedia company started by The Beatles in 1967, involving their name and logo. This resulted in a
series of lawsuits and tension between the two companies. These issues ended with settling of their most recent lawsuit in 2007.
Slogans
Apple's first slogan, "
Byte into an Apple", was coined in the late 1970s.
[205] From 1997–2002, Apple used the slogan "
Think Different" in advertising campaigns. Although the slogan has been retired, it is still closely associated with Apple.
[206] Apple also has slogans for specific product lines — for example, "iThink, therefore iMac" was used in 1998 to promote the iMac,
[207] and "Say hello to iPhone" has been used in iPhone advertisements.
[208] "Hello" was also used to introduce the original Macintosh,
Newton, iMac ("hello (again)"), and iPod.
[209]
Commercials
Apple's product commercials gained fame for launching musicians into
stardom as a result of their eye-popping graphics and catchy tunes.
[210] First, the company popularized Canadian singer
Feist's "
1234" song in its ad campaign.
[210] Later, Apple used the song "
New Soul" by French-Israeli singer-songwriter
Yael Naïm to promote the
MacBook Air.
[210] The debut single shot to the top of the charts and sold hundreds of thousands of copies in a span of weeks.
[210]
Environmental record
Greenpeace
has campaigned against Apple on various environmental issues, including
a global end-of-life take-back plan, non-recyclable hardware components
and toxins within
iPhone hardware.
[211][212]
Since 2003 Greenpeace has campaigned against Apple's use of particular
chemicals in its products, more specifically, the inclusion of
PVC and
BFRs in their products.
[211] On May 2, 2007,
Steve Jobs released a report announcing plans to eliminate PVC and BFRs by the end of 2008.
[213][214] Apple has since eliminated PVC and BFRs across its product range,
[215] becoming the first laptop maker to do so.
[216]
In the first edition, released in August 2006, Apple scored 2.7/10.
[217]
The
Environmental Protection Agency rates Apple highest amongst producers of notebook computers, and fairly well compared to producers of desktop computers and
LCD displays.
[218][219]
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,
[220] and has since done this for all notebooks. Apple has also phased out BFRs and PVCs from various internal components.
[213][221][222] Apple offers information about the emissions, materials, and electrical usage of each product.
[223]
In June 2009, Apple's iPhone 3GS was free of PVC, arsenic, BFRs and had an efficient power adapter.
[220]
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.
[224]
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.
[220]
In 2010,
Climate Counts,
a nonprofit organization dedicated to directing consumers toward the
greenest companies, gave Apple a score of 52 points out of a possible
100, which puts Apple in their top category "Striding".
[225]
This was an increase from May 2008, when Climate Counts only gave Apple
11 points out of 100, which placed the company last among electronics
companies, at which time Climate Counts also labeled Apple with a "stuck
icon", adding that Apple at the time was "a choice to avoid for the
climate conscious consumer".
[17]
In October 2011 Chinese authorities have ordered an Apple supplier to
close part of its plant in Suzhou after residents living nearby raised
significant environmental concerns.
[226]
In November 2011 Apple featured in
Greenpeace's
Guide to Greener Electronics that ranks electronics manufacturers on
sustainability, climate and energy and how green their products are. The
company ranked 4th out of 15 electronics companies (moving up five
places from the previous year) with a score of 4.6/10 down from 4.9.
[227]
Greenpeace praises Apple's sustainability, noting that the company
exceeded its 70% global recycling goal in 2010. It continues to score
well on the products rating with all Apple products now being free of
PVC vinyl plastic and brominated flame retardants. However, the guide
criticizes Apple on the Energy criteria for not seeking external
verification of its greenhouse gas emissions data and for not setting
out any targets to reduce emissions.
[227]
In January 2012, Apple announced plans and requested that their cable
maker Volex begin producing halogen-free USB and power cables.
[228]
Labor practices
In 2006, the
Mail on Sunday reported on working conditions existed at factories in China where the contract manufacturers
Foxconn and
Inventec produced the iPod.
[229]
The article stated that one complex of factories that assembles the
iPod (among other items) had over 200,000 workers that lived and worked
in the factory, with employees regularly working more than 60 hours per
week. The article also reported that workers made around $100 per month
and were required to live pay for rent and food from the company, which
generally amounted to a little over half of workers' earnings.
[16][230][231][232]
Apple immediately launched an investigation and worked with their manufacturers to ensure acceptable working conditions.
[233] 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.
[234]
In 2010, workers in China planned to sue iPhone contractors over
poisoning by a cleaner used to clean LCD screens. One worker claimed
that he and his coworkers had not been informed of possible occupational
illnesses.
[235]
After a spate of suicides in a Foxconn facility in China making iPads
and iPhones, albeit at a lower rate than in China as a whole,
[236] workers were forced to sign a legally binding document guaranteeing that they would not kill themselves.
[237] In 2011 Apple admitted that its suppliers' child labor practices in China had worsened.
[238]
Workers in factories producing Apple products have also been exposed to n-
Hexane, a
neurotoxin that is a cheaper alternative than alcohol for cleaning the products.
[239][240][241]
Finance
In its fiscal year ending in September 2011, Apple Inc. hit new
heights financially with $108 billion in revenues (increased
significantly from $65 billion in 2010) and nearly $82 billion in cash
reserves. Apple achieved these results while losing market share in
certain product categories.
[242]
On March 19, 2012, Apple announced plans for a $2.65 per share
dividend beginning in fourth quarter of 2012, per approval by their
board of directors.
[243]
US$108.249 billion (2011)[3]
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