Apple Inc. (commonly known as
Apple) is an
American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, online services, and personal computers. Its best-known hardware products are the Mac line of computers, the iPod media player, the iPhone smartphone, the iPad tablet computer, and the Apple Watch smartwatch. Its online services include iCloud, the iTunes Store, and the App Store. Apple's consumer software includes the OS X and iOS operating systems, the iTunes media browser, the Safari web browser, and the iLife and iWork creativity and productivity suites.
Apple was founded by
Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers.[5] It was incorporated as Apple Computer, Inc.
on January 3, 1977, and was renamed as Apple Inc. on January 9, 2007,
to reflect its shifted focus towards consumer electronics. Apple (NASDAQ:AAPL) joined the Dow Jones Industrial Average on March 19, 2015.[6]
Apple is the
world's second-largest information technology company by revenue after Samsung Electronics, world's largest technology company by Total Assets and the world's third-largest mobile phone maker. On November 25, 2014, in addition to being the largest publicly traded corporation in the world by market capitalization, Apple became the first U.S. company to be valued at over $700 billion.[7] As of March 2015, Apple employs 98,000 permanent full-time employees,[4] maintains 453 retail stores in sixteen countries,[1] and operates the online Apple Store and iTunes Store, the latter of which is the world's largest music retailer.
Apple's worldwide annual revenue in 2014 totaled
US$182 billion (FY end October 2014[8]). Apple enjoys a high level of brand loyalty and, according to the 2014 edition of the Interbrand Best Global Brands report, is the world's most valuable brand with a valuation of $118.9 billion.[9] By the end of 2014, the corporation continued to manage significant criticism
regarding the labor practices of its contractors, as well as for its
environmental and business practices, including the origins of source
materials.
Apple was established on April 1, 1976, by
Steve Jobs,
Steve Wozniak and
Ronald Wayne[10][11] to sell the
Apple I personal computer kit. The
Apple I kits were computers single handedly designed and hand-built by Wozniak
[12][13] and first shown to the public at the
Homebrew Computer Club.
[14] The Apple I was sold as a
motherboard (with
CPU,
RAM, and basic textual-video chips), which was less than what is now considered a complete personal computer.
[15] The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,763 in 2015 dollars, adjusted for inflation).
[16][17][18][19][20][21]
Apple was incorporated January 3, 1977,
[22] without Wayne, who sold his share of the company back to Jobs and Wozniak for $800.
[11] Multimillionaire
Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple.
[23][24]
During the first five years of operations revenues grew exponentially,
doubling about every four months. Between September 1977 and September
1980 yearly sales grew from $775,000 to $118m, an average annual growth
rate of 533%.
[25]
The
Apple II, also invented by Wozniak, 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 of its character cell-based color graphics and
open architecture.
While early Apple II 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 called the
Disk II.
[26] The Apple II was chosen to be the desktop platform for the first "
killer app" of the business world:
VisiCalc, a
spreadsheet program.
[27]
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.
[27] Before VisiCalc, Apple had been a distant third place competitor to
Commodore and
Tandy.
[28][29]
By the end of the 1970s, Apple had a staff of computer designers and a production line. The company introduced the
Apple III in May 1980 in an attempt to compete with
IBM and
Microsoft in the business and corporate computing market.
[30] 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.
[31]
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.
[32]
In 1982, however, he was pushed from the Lisa team due to infighting.
Jobs took over Jef Raskin's low-cost-computer project, the
Macintosh.
A race broke out between the Lisa team and the Macintosh team over
which product would ship first. 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.
[33]
On December 12, 1980, Apple went public at $22 per share,
[34] generating more capital than any IPO since
Ford Motor Company in 1956 and instantly creating more millionaires (about 300) than any company in history.
[35]
1984–91: Success with Macintosh
In 1984, Apple launched the Macintosh, the first personal computer to be sold without a
programming language at all.
[36] Its debut was signified by
"1984", a $1.5 million television commercial directed by
Ridley Scott that aired during the third quarter of
Super Bowl XVIII on January 22, 1984.
[37] The commercial is now hailed as a watershed event for Apple's success
[38] and a "masterpiece".
[39][40]
The Macintosh initially sold well, but follow-up sales were not strong
[41] 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 sold at a reasonable price, and
PageMaker, an early
desktop publishing
package. It has been suggested that the combination of these three
products were responsible for the creation of the desktop publishing
market.
[42]
The Macintosh was particularly powerful in the desktop publishing
market due to its advanced graphics capabilities, which had necessarily
been built in to create the intuitive Macintosh GUI.
In 1985, a power struggle developed between Jobs and CEO
John Sculley, who had been hired two years earlier.
[43]
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
coup and called a board meeting at which Apple's board of directors sided with Sculley and removed Jobs from his managerial duties.
[41] Jobs resigned from Apple and founded
NeXT Inc. the same year.
[44]
After Jobs' departure, the Macintosh product line underwent a steady
change of focus to higher price points, the so-called "high-right
policy" named for the position on a chart of price vs. profits. Jobs had
argued the company should produce products aimed at the consumer market
and aimed for a $1000 price for the Macintosh, which they were unable
to meet. Newer models selling at higher price points offered higher
profit margin, and appeared to have no effect on total sales as
power users
snapped up every increase in power. Although some worried about pricing
themselves out of the market, the high-right policy was in full force
by the mid-1980s, notably due to
Jean-Louis Gassée's mantra of "fifty-five or die", referring to the 55%
profit margins of the
Macintosh II.
[45]
This policy began to backfire in the last years of the decade as new DTP programs appeared on
PC clones
that offered some or much of the same functionality of the Macintosh
but at far lower price points. The company lost its monopoly in this
market, and had already estranged many of its original consumer customer
base who could no longer afford their high priced products. The
Christmas season of 1989 was the first in the company's history that saw
declining sales, and led to a 20% drop in Apple's stock price.
[46]
Gassée's objections were overruled, and he was forced from the company
in 1990. Later that year, Apple introduced three lower cost models, the
Macintosh Classic,
Macintosh LC and
Macintosh IIsi, all of which saw significant sales due to pent up demand.
In 1991 Apple introduced the
PowerBook, replacing the "luggable"
Macintosh Portable with a design that set the current shape for almost all modern laptops. 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.
[43]
For some time, Apple was doing incredibly well, 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.
[citation needed]
Apple believed the
Apple II series was too expensive to produce and took away sales from the low-end Macintosh.
[47] In 1990, Apple released the
Macintosh LC, which featured a single
expansion slot for the
Apple IIe Card to help migrate Apple II users to the Macintosh platform;
[47] the
Apple IIe was discontinued in 1993.
1991–97: Decline, restructuring, acquisitions
The success of Apple's lower-cost consumer models, especially the LC,
also led to cannibalization of their higher priced machines. To address
this, management introduced several new brands, selling largely
identical machines at different price points aimed at different markets.
These were the high-end
Quadras, the mid-range
Centris line, and the ill-fated
Performa series. This led to significant market confusion, as customers did not understand the difference between models.
[48]
Apple also experimented with a number of other unsuccessful consumer targeted products during the 1990s, including
digital cameras,
portable CD audio players,
speakers,
video consoles, the
eWorld online service, 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, none of these products helped and Apple's market share and stock prices continued to slide.
[citation needed]
Through this period, Microsoft continued to gain market share with
Windows
by focusing on delivering software to cheap commodity personal
computers, while Apple was delivering a richly engineered but expensive
experience.
[49]
Apple relied on high profit margins and never developed a clear
response; instead, they sued Microsoft for using a GUI similar to the
Apple Lisa in
Apple Computer, Inc. v. Microsoft Corp..
[50]
The lawsuit dragged on for years before it was finally dismissed. At
this time, a series of major product flops and missed deadlines sullied
Apple's reputation, and Sculley was replaced as CEO by
Michael Spindler.
[51]
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
PalmPilot and Apple's own
iPhone and
iPad in the future.
By the early 1990s, Apple was developing alternative platforms to the Macintosh, such as
A/UX.
The Macintosh platform itself was becoming outdated because it was not
built for multitasking and because several important software routines
were programmed directly into the hardware. In addition, Apple was
facing competition from
OS/2 and
UNIX vendors such as
Sun Microsystems. The Macintosh would need to be replaced by a new platform or reworked to run on more powerful hardware.
[52]
In 1994, Apple allied with
IBM and
Motorola in the
AIM alliance with the goal of creating a new computing platform (the
PowerPC Reference Platform),
which would use IBM and Motorola hardware coupled with Apple software.
The AIM alliance hoped that PReP's performance and Apple's software
would leave the PC far behind and thus counter Microsoft. The same year,
Apple introduced the
Power Macintosh, the first of many Apple computers to use Motorola's
PowerPC processor.
[53]
In 1996, Spindler was replaced by
Gil Amelio as CEO. Amelio made numerous changes at Apple, including extensive layoffs and cut costs.
[54] After numerous failed attempts to improve Mac OS, first with the
Taligent project and later with
Copland and
Gershwin, Amelio chose to purchase
NeXT and its
NeXTSTEP operating system and bring Steve Jobs back to Apple.
[55]
1997–2007: Return to profitability
The NeXT deal was finalized on February 9, 1997,
[56]
bringing Jobs back to Apple as an advisor. On July 9, 1997, Amelio was
ousted by the board of directors after overseeing a three-year
record-low stock price and crippling financial losses. Jobs acted as the
interim CEO and began restructuring the company's product line; it was
during this period that he identified the design talent of
Jonathan Ive, and the pair worked collaboratively to rebuild Apple's status.
[57]
At the 1997
Macworld Expo, Jobs announced that Apple would join Microsoft to release new versions of
Microsoft Office for the Macintosh, and that Microsoft had made a $150 million investment in non-voting Apple stock.
[58] On November 10, 1997, Apple introduced the
Apple Online Store, which was tied to a new build-to-order manufacturing strategy.
[59][60]
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 Ive, who would later design the
iPod and the
iPhone.
[61][62] The iMac featured modern technology and a unique design, and sold almost 800,000 units in its first five months.
[63]
During this period,
[when?]
Apple completed numerous acquisitions to create a portfolio of digital
production software for both professionals and consumers. In 1998, Apple
purchased
Macromedia's Key Grip software project, signaling an expansion into the
digital video
editing market. The sale was an outcome of Macromedia's decision to
solely focus upon web development software. The product, still
unfinished at the time of the sale, was renamed "
Final Cut Pro" when it was launched on the retail market in April 1999.
[64][65] The development of Key Grip also led to Apple's release of the consumer video-editing product
iMovie in October 1999.
[66] Next, Apple successfully acquired the German company Astarte, which had developed
DVD authoring
technology, as well as Astarte's corresponding products and engineering
team in April 2000. Astarte's digital tool DVDirector was subsequently
transformed into the professional-oriented
DVD Studio Pro software product. Apple then employed the same technology to create
iDVD for the consumer market.
[66] In 2002, Apple purchased
Nothing Real for their advanced digital
compositing application
Shake,
[67] as well as
Emagic for the music productivity application
Logic.
The purchase of Emagic made Apple the first computer manufacturer to
own a music software company. The acquisition was followed by the
development of Apple's consumer-level
GarageBand application.
[68] The release of
iPhoto in the same year completed the
iLife suite.
[69]
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 within Mac OS X via the
Classic Environment.
[70]
Apple retail stores allow potential customers to use
floor models without making a purchase.
(Line at the opening of the first Apple Store;
Tysons Corner Center, Virginia on May 19, 2001.
On May 19, 2001, Apple opened the first official
Apple Retail Stores in Virginia and California.
[71] On October 23 of the same year, Apple debuted the
iPod
portable digital audio player. The product, which was first sold on
November 10, 2001, was phenomenally successful with over 100 million
units sold within six years.
[72][73] In 2003, Apple's
iTunes Store was introduced. The service offered online
music downloads
for $0.99 a song and integration with the iPod. The iTunes store
quickly became the market leader in online music services, with over 5
billion downloads by June 19, 2008.
[74]
The
MacBook Pro, Apple's first laptop with an
Intel microprocessor, introduced in January 2006.
At the
Worldwide Developers Conference keynote address on June 6, 2005, Jobs announced that Apple would begin producing
Intel-based Mac computers in 2006.
[75] 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 made the transition to Intel chips for
the entire Mac product line—over one year sooner than announced.
[75] The Power Mac, iBook and PowerBook brands were retired during the transition; the
Mac Pro,
MacBook, and MacBook Pro became their respective successors.
[76][77] On April 29, 2009,
The Wall Street Journal reported that Apple was building its own team of engineers to design microchips.
[78] Apple also introduced
Boot Camp in 2006 to help users install
Windows XP or
Windows Vista on their Intel Macs alongside Mac OS X.
[79]
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.
[80] Nine years prior, Dell's CEO
Michael Dell had said that if he ran Apple he would "shut it down and give the money back to the shareholders."
[81]
Although Apple's market share in computers had grown, it remained far
behind competitors using Microsoft Windows, accounting for about 8% of
desktops and laptops in the US.
[citation needed]
Since 2001, Apple's design team has progressively abandoned the use of translucent colored plastics first used in the
iMac G3. This design change began with the
titanium-made
PowerBook and was followed by the
iBook's white
polycarbonate structure and the flat-panel
iMac.
[82][83]
2007–11: Success with mobile devices
During 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 the company had shifted its emphasis from
computers to mobile electronic devices. This event also saw the
announcement of the
iPhone and the
Apple TV.
[84][85][86][87] 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.
[88] Apple would achieve widespread success with its iPhone,
iPod Touch and
iPad products, which introduced innovations in
mobile phones,
portable music players and
personal computers respectively.
[89] Furthermore, by early 2007, 800,000 Final Cut Pro users were registered.
[90]
In an article posted on Apple's website on February 6, 2007, Jobs
wrote that Apple would be willing to sell music on the iTunes Store
without
digital rights management (DRM), thereby allowing tracks to be played on third-party players, if record labels would agree to drop the technology.
[91] 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 2007.
[92]
Other record labels eventually followed suit and Apple published a
press release in January 2009 to announce the corresponding changes to
the iTunes Store.
[93]
In July 2008, Apple launched the
App Store to sell third-party applications for the
iPhone and
iPod Touch.
[94]
Within a month, the store sold 60 million applications and registered
an average daily revenue of $1 million, with Jobs speculating in August
2008 that the App Store could become a billion-dollar business for
Apple.
[95] By October 2008, Apple was the third-largest mobile handset supplier in the world due to the popularity of the iPhone.
[96]
On December 16, 2008, Apple announced that 2009 would be the last
year the corporation would attend the Macworld Expo, after more than 20
years of attendance, and that senior vice president of Worldwide Product
Marketing
Philip Schiller
would deliver the 2009 keynote address in lieu of the expected Jobs.
The official press release explained that Apple was "scaling back" on
trade shows in general, including Macworld Tokyo and the Apple Expo in
Paris, France, primarily because the enormous successes of the Apple
Retail Stores and website had rendered trade shows a minor promotional
channel.
[97][98]
On January 14, 2009, an internal memo from Jobs announced that he would be taking a six-month medical
leave of absence
from Apple until the end of June 2009 and would spend the time focusing
on his health. In the email, Jobs stated that "the curiosity over my
personal health continues to be a distraction not only for me and my
family, but everyone else at Apple as well," and explained that the
break would allow the company "to focus on delivering extraordinary
products."
[99] Despite Jobs's absence, Apple recorded its best non-holiday quarter (Q1 FY 2009) during the
recession with revenue of $8.16 billion and 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 ran the same touch-based operating system as
the iPhone, and many iPhone apps were compatible with the iPad. This
gave the iPad a large app catalog on launch, despite very little
development time before the release. Later that year on April 3, 2010,
the iPad was launched in the US. It sold more than 300,000 units on its
first day, and 500,000 by the end of the first week.
[102] In May of the same year, Apple's
market cap exceeded that of competitor
Microsoft for the first time since 1989.
[103]
Apple also released the
iPhone 4,
[when?] which introduced
video calling,
multitasking, and a new
uninsulated stainless steel design that acted as the phone's antenna. Later that year, Apple again refreshed its iPod line of MP3 players by introducing a
multi-touch iPod Nano, an
iPod Touch with
FaceTime, and an
iPod Shuffle that brought back the buttons of earlier generations.
[104][105][106] Additionally, on October 20, Apple updated the
MacBook Air laptop,
iLife suite of applications, and unveiled
Mac OS X Lion, the last version with the name
Mac OS X.
[107]
In October 2010, Apple shares hit an all-time high, eclipsing $300.
[108]
On January 6, 2011, the company opened its
Mac App Store, a digital software distribution platform similar to the iOS App Store.
[109]
Alongside peer entities such as Atari and Cisco Systems, Apple was featured in the documentary
Something Ventured which premiered in 2011 and explored the three-decade era that led to the establishment and dominance of Silicon Valley.
[110]
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 assumed Jobs's day-to-day operations at Apple, although Jobs would still remain "involved in major strategic decisions."
[111] Apple became the most valuable consumer-facing brand in the world.
[112] In June 2011, Jobs surprisingly took the stage and unveiled
iCloud,
an online storage and syncing service for music, photos, files and
software which replaced MobileMe, Apple's previous attempt at content
syncing.
[113]
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 that the company operates as a
monopsony (one buyer, many sellers) and can dictate terms to its suppliers.
[114][115][116] In July 2011, due to the
American debt-ceiling crisis, Apple's financial reserves were briefly larger than those of the
U.S. Government.
[117]
On August 24, 2011, Jobs resigned his position as CEO of Apple.
[118]
He was replaced by 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.
[119]
2011–present: Post-Jobs era
On October 5, 2011, Apple announced that Jobs had died, marking the end of an era for Apple.
[120][121] Apple's first major product announcement by Apple following Jobs's passing occurred on January 19, 2012, when Apple's
Phil Schiller introduced iBooks Textbooks for iOS and iBook Author for Mac OS X in New York City.
[122] Jobs had stated in his biography that he wanted to reinvent the textbook industry and education.
From 2011-2012, Apple released the
iPhone 4S and
iPhone 5, which featured improved cameras, an "
intelligent software assistant" named
Siri, and cloud-sourced data with iCloud;
[123][124][125] the
third and
fourth generation iPads, which featured
Retina displays;
[126][127][128] and the
iPad Mini, which featured a 7.9-inch screen in contrast to the iPad's 9.7-inch screen.
[129]
These launches were successful, with the iPhone 5 (released September
21, 2012) becoming Apple's biggest iPhone launch with over 2 million
pre-orders
[130]
and sales of 3 million iPads in three days following the launch of the
iPad Mini and fourth generation iPad (released November 3, 2012).
[131] Apple also released a third-generation 13-inch
MacBook Pro with a Retina display and new
iMac and
Mac Mini computers.
[128][129][132]
On October 29, 2011, Apple purchased C3 Technologies, a mapping
company, for $240 million, becoming the third mapping company Apple has
purchased.
[133] On January 10, 2012, Apple paid $500 million to acquire
Anobit,
an Israeli hardware company that developed and supplied a proprietary
memory signal processing technology that improved the performance of the
flash-memory used in iPhones and iPads.
[134][135] On July 24, 2012, during a conference call with investors, Tim Cook said that he loved
India,
but that Apple was going to expect larger opportunities outside of
India. Cook cited the reason as the 30% sourcing requirement from India.
[clarification needed][136][137][138][139]
On August 20, 2012, Apple's rising stock rose the company's value to a
world-record $624 billion. This beat the non-inflation-adjusted record
for market capitalization set by
Microsoft in 1999.
[140] On August 24, 2012, a US jury ruled that Samsung should pay Apple $1.05 billion (£665m) in damages in an
intellectual property lawsuit.
[141] Samsung appealed the damages award, which the Court reduced by $450 million.
[142] The Court further granted Samsung's request for a new trial.
[142]
On November 10, 2012, Apple confirmed a global settlement that would
dismiss all lawsuits between Apple and HTC up to that date, in favor of a
ten-year license agreement for current and future patents between the
two companies.
[143] It is predicted that Apple will make $280 million a year from this deal with HTC.
[144]
A previously confidential email written by Jobs a year before his death, was presented during the proceedings of the
Apple Inc. v. Samsung Electronics Co.
lawsuits and became publicly available in early April 2014. With a
subject line that reads "Top 100 – A," the email was sent only to the
company's 100 most senior employees and outlines Jobs's vision of Apple
Inc.'s future under 10 subheadings. Notably, Jobs declares a "Holy War
with Google" for 2011 and schedules a "new campus" for 2015.
[145]
In March 2013, Apple filed a patent for an augmented reality (AR)
system that can identify objects in a live video stream and present
information corresponding to these objects through a computer-generated
information layer overlaid on top of the real-world image.
[146]
Later in 2013, Apple acquired Embark Inc., a small Silicon Valley-based
mapping company that builds free transit apps to help smartphone users
navigate public transportation in U.S. cities,
[147] and
PrimeSense, an Israeli 3D sensing company based in Tel Aviv.
[148]
In December 2013, Apple Inc. purchased social analytics firm Topsy.
Topsy is one of a small number of firms with real-time access to the
messages that appear on
Twitter and can "do real-time analysis of the trends and discussions happening on Twitter.”
[149] The company also made several high profile hiring decisions in 2013. On July 2, 2013, Apple recruited
Paul Deneve, Belgian President and CEO of
Yves Saint Laurent as a vice president reporting directly to Tim Cook.
[150] A mid-October 2013 announcement revealed that
Burberry executive
Angela Ahrendts
will commence as a senior vice president at Apple in mid-2014. Ahrendts
oversaw Burberry's digital strategy for almost eight years and, during
her tenure, sales increased to about US$3.2 billion and shares gained
more than threefold.
[151]
At the Worldwide Developer's Conference on June 10, 2013, Apple announced the
seventh iOS operating system alongside
OS X Mavericks, the tenth version of Mac OS X, and a new
Internet radio service called
iTunes Radio.
[152][153][154] iTunes Radio, iOS 7 and OS X Mavericks were released fall 2013.
[152][153][155] On December 6, 2013, Apple Inc. launched
iBeacon across its 254 U.S. retail stores. Using Bluetooth wireless technology, iBeacon senses the user's exact location within the
Apple store and sends the user messages about products, events and other information, tailored to the user's location.
[156]
Alongside Google vice-president Vint Cerf and AT&T CEO Randall
Stephenson, Cook attended a closed-door summit held by President Obama
on August 8, 2013, in regard to government surveillance and the Internet
in the wake of the Edward Snowden
NSA incident.
[157][158] On February 4, 2014, Cook met with
Abdullah Gül, the
President of Turkey, in
Ankara to discuss the company's involvement in the
Fatih project.
[159] Cook also confirmed that
Turkey's first Apple Retail Store would be opened in
Istanbul in April 2014.
[160]
An anonymous Apple employee revealed to the
Bloomberg media publication that the opening of a
Tokyo,
Japan, store was planned for 2014. A Japanese analyst has stated, "For
Apple, the Japanese market is appealing in terms of quantity and price.
There is room to expand tablet sales and a possibility the Japanese
market expands if Apple’s mobile carrier partners increase."
[161] As of June 13, 2014, Apple operated three stores in Tokyo.
[162]
On October 1, 2013, Apple India executives unveiled a plan to expand
further into the Indian market, following Cook's acknowledgment of the
country in July 2013 when sales results showed that iPhone sales in
India grew 400% during the second quarter of 2013.
[163]
Apple Inc. reported that the company sold 51 million iPhones in the
Q1 of 2014 (an all-time quarterly record), compared to 47.8 million in
the year-ago quarter. Apple also sold 26 million iPads during the
quarter, also an all-time quarterly record, compared to 22.9 million in
the year-ago quarter. The Company sold 4.8 million Macs, compared to 4.1
million in the year-ago quarter.
[164] On May 28, 2014, Apple confirmed its intent to acquire
Dr. Dre and
Jimmy Iovine's audio company
Beats Electronics—producer of the
Beats by Dr. Dre line of headphones and speaker products, and operator of the music streaming service
Beats Music—for
$3 billion, and to sell their products through Apple's retail outlets
and resellers. Iovine felt that Beats had always "belonged" with Apple,
as the company modeled itself after Apple's "unmatched ability to marry
culture and technology."
[165][166][167] In August 2014, an Apple representative confirmed to the media that
Anand Lal Shimpi, editor and publisher of the
AnandTech website, had been recruited by Apple without elaborating on Lal Shimpi's role.
[168]
Products
Mac
Macs that are currently being sold are:
- MacBook: Consumer ultra-thin, ultra-portable notebook, introduced in 2015.
- MacBook Air: Consumer ultra-thin, ultra-portable notebook, introduced in 2008.
- MacBook Pro: Professional notebook, introduced in 2006.
- Mac Mini: Consumer sub-desktop computer, introduced in 2005.
- iMac: Consumer all-in one desktop computer, introduced in 1998.
- Mac Pro: Workstation desktop computer, introduced in 2006.
Apple sells a variety of computer accessories for Macs, including
Thunderbolt Display,
Magic Mouse,
Magic Trackpad,
Wireless Keyboard,
Battery Charger, the AirPort wireless networking products, and
Time Capsule.
iPad
On January 27, 2010, Apple introduced their much-anticipated media
tablet, the
iPad,
which runs a modified version of iOS. It offers multi-touch interaction
with multimedia formats including newspapers, ebooks, photos, videos,
music, word processing documents, video games, and most existing iPhone
apps.
[169] It also includes a mobile version of
Safari for web browsing, as well as access to the App Store,
iTunes Library,
iBookstore, Contacts, and Notes. Content is downloadable via
Wi-Fi and optional
3G service or synced through the user's computer.
[170] AT&T was initially the sole U.S. provider of 3G wireless access for the iPad.
[171]
On March 2, 2011, Apple introduced the
iPad 2, which had a faster processor and a camera on the front and back. It also added support for optional 3G service provided by
Verizon in addition to
AT&T.
[172] The availability of the iPad 2 was initially limited as a result of a devastating
earthquake and tsunami in Japan in March 2011.
[173] The third-generation iPad was released on March 7, 2012 and marketed as "
the new iPad". It added
LTE service from AT&T or Verizon, an upgraded
A5X
processor, and Retina display. The dimensions and form factor remained
relatively unchanged, with the new iPad being a fraction thicker and
heavier than the previous version and featuring minor positioning
changes.
[174]
On October 23, 2012, Apple's fourth-generation iPad came out, marketed as the "
iPad with Retina display". It added the upgraded
A6X processor and replaced the traditional 30-pin dock connector with the all-digital
Lightning connector.
[175] The
iPad Mini was also introduced. It featured a reduced 7.9-inch display and much of the same internal specifications as the iPad 2.
[176] On October 22, 2013, Apple introduced the
iPad Air and the iPad mini with Retina Display, both featuring a new 64 bit Apple-A7 processor.
[177] The
iPad Air 2
was unveiled on October 16, 2014. It added better graphics and central
processing and a camera burst mode as well as minor updates. The
iPad Mini 3 was unveiled at the same time.
[177]
Since its launch, iPad users have downloaded three billion apps. The total number of App Store downloads is over 75 billion.
[178][179][180]
iPod
On October 23, 2001, Apple introduced the
iPod
digital music player. Several updated models have since been
introduced, and the iPod brand is now the market leader in portable
music players by a significant margin. More than 350 million units have
shipped as of September 2012.
[181] 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 three variants of the iPod:
- iPod Shuffle: Ultra-portable digital audio player, currently available in a 2 GB model, introduced in 2005.
- iPod Nano: Portable media player, currently available in a 16 GB model, introduced in 2005. Earlier models featured the traditional iPod click wheel, but the current generation features a multi-touch interface and includes an FM radio and a pedometer.
- iPod Touch: Portable media player that runs iOS and was released on July 15, 2015 and is currently available in 16, 32, 64, and 128 GB models. The current generation features the Apple A8 processor, a Retina display, Siri and dual cameras on the front (1.2 megapixel sensor) and back (8 megapixel iSight). The latter camera supports HD video recording at 1080p and slow motion video at 120fps in 720p.[182]
iPhone
At the
Macworld Conference & Expo in January 2007, Steve Jobs introduced the long-anticipated
[183] iPhone, a convergence of an Internet-enabled
smartphone and iPod.
[184] The
first-generation iPhone was released on June 29, 2007 for $499 (4 GB) and $599 (8 GB) with an
AT&T contract.
[185] On February 5, 2008, it was updated to have 16 GB of memory, in addition to the 8 GB and 4 GB models.
[186] It combined a
2.5G quad band GSM and
EDGE
cellular phone with features found in handheld devices, running
scaled-down versions of Apple's Mac OS X (dubbed iPhone OS, later
renamed
iOS), 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) touchscreen display,
Bluetooth, and
Wi-Fi (both "b" and "g").
[184]
A second version, the
iPhone 3G, was released on July 11, 2008 with a reduced price of $199 for the 8 GB version and $299 for the 16 GB version.
[187] This version added support for
3G networking and
assisted-GPS
navigation. The flat silver back and large antenna square of the
original model were eliminated in favor of a glossy, curved black or
white back. Software capabilities were improved with the release of the
App Store, which provided iPhone-compatible applications to download. On April 24, 2009, the App Store
[188] surpassed one billion downloads.
[189] On June 8, 2009, Apple announced the
iPhone 3GS.
It provided an incremental update to the device, including faster
internal components, support for faster 3G speeds, video recording
capability, and voice control.
At the
Worldwide Developers Conference (WWDC) on June 7, 2010, Apple announced the redesigned
iPhone 4.
[190] It featured a 960x640 display, the
Apple A4 processor, a
gyroscope for enhanced gaming, a 5MP camera with LED flash, front-facing
VGA camera and
FaceTime
video calling. Shortly after its release, reception issues were
discovered by consumers, 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 issue was corrected by a "Bumper Case" distributed by
Apple for free to all owners for a few months. In June 2011, Apple
overtook
Nokia to become the world's biggest smartphone maker by volume.
[191] On October 4, 2011, Apple unveiled the
iPhone 4S, which was first released on October 14, 2011.
[192] It features the
Apple A5 processor and
Siri voice assistant technology, the latter of which Apple had acquired in 2010.
[193]
It also features an updated 8MP camera with new optics. Apple sold 4
million iPhone 4S phones in the first three days of availability.
[194]
On September 12, 2012, Apple introduced the
iPhone 5.
[195] It added a 4-inch display, 4G LTE connectivity, and the upgraded
Apple A6 chip, among several other improvements.
[196] Two million iPhones were sold in the first twenty-four hours of pre-ordering
[197] and over five million handsets were sold in the first three days of its launch.
[198] Upon the launch of the
iPhone 5S and
iPhone 5C,
Apple set a new record for first-weekend smartphone sales by selling
over nine million devices in the first three days of its launch.
[199] The release of the iPhone 5S and 5C was the first time that Apple simultaneously launched two models.
[200]
A patent filed in July 2013 revealed the development of a new iPhone
battery system that uses location data in combination with data on the
user's habits to moderate the handsets power settings accordingly. Apple
is working towards a power management system that will provide features
such as the ability of the iPhone to estimate the length of time a user
will be away from a power source to modify energy usage and a detection
function that adjusts the charging rate to best suit the type of power
source that is being used.
[201]
In a March 2014 interview, Apple designer
Jonathan Ive
used the iPhone as an example of Apple's ethos of creating
high-quality, life-changing products. He explained that the phones are
comparatively expensive due to the intensive effort that is used to make
them:
We don’t take so long and make the way we make for fiscal reasons ...
Quite the reverse. The body is made from a single piece of machined
aluminium ... The whole thing is polished first to a mirror finish and
then is very finely textured, except for the Apple logo. The chamfers
[smoothed-off edges] are cut with diamond-tipped cutters. The cutters
don’t usually last very long, so we had to figure out a way of
mass-manufacturing long-lasting ones. The camera cover is sapphire
crystal. Look at the details around the sim-card slot. It’s
extraordinary![57]
Apple TV
The current generation Apple TV.
At the 2007 Macworld conference, Jobs demonstrated the
Apple TV (previously known as the iTV),
[202]
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 content from an additional four. The Apple TV
originally incorporated a 40 GB hard drive for storage, included
outputs for
HDMI and
component video, and played video at a maximum resolution of
720p.
[203] On May 31, 2007, a 160 GB drive was released alongside the existing 40 GB model.
[204] A software update released on January 15, 2008 allowed media to be purchased directly from the Apple TV.
[205]
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, 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. Like the iPad and the iPhone, Apple TV runs on an A4
processor. The memory included in the device is half of that in the
iPhone 4 at 256 MB; the same as the iPad, iPhone 3GS, third and fourth-generation
iPod Touch.
[206]
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. A third generation of the device
was introduced at an Apple event on March 7, 2012, with new features
such as higher resolution (1080p) and a new user interface.
Apple Watch
Main article:
Apple Watch
The Apple Watch
smartwatch was launched by Cook on September 9, 2014, and released on April 24, 2015.
[207] The wearable device consists of fitness-tracking capabilities that are similar to
Fitbit, and must be used in combination with an iPhone to work (only the
iPhone 5, or later models, are compatible with the Apple Watch).
[208][209][210]
Electric vehicles
According to the
Sydney Morning Herald, Apple wants to start producing an
electric car with
autonomous driving as soon as 2020. Apple has made efforts to recruit battery experts and other electric automobile workers from
A123 Systems, LG Chem,
Samsung Electronics,
Panasonic,
Toshiba,
Johnson Controls, and
Tesla Motors.
[211]
Software
Apple Worldwide Developers Conference is held annually by Apple to showcase its new software and technologies for software developers.
Apple develops its own
operating system to run on Macs,
OS X, the latest version being
OS X Yosemite
(version 10.10). 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, and
Software Update are available as free downloads for both OS X and
Windows.
Apple Sim
Apple launches its Apple Sim card service for iPad Users, which can used be in 90 countries.
[212]
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.
Corporate identity
Logo
"Apple logo" redirects here. For the programming language, see
Apple Logo.
First Apple logo (April 1, 1976, Prototype)
First official Apple logo used from April 1977[213] to August 26, 1999.
Current Apple logo since August 27, 1999.[214]
According to Steve Jobs, the company's name was inspired by his visit to an apple farm while on a
fruitarian diet. Jobs thought the name "Apple" was "fun, spirited and not intimidating".
[215]
Apple's first logo, designed by Ron Wayne, depicts
Sir Isaac Newton sitting under an apple tree. It was almost immediately 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. However, Jobs insisted that the logo be
colorized to humanize the company.
[216][217] The logo was designed with a bite so that it would not be confused with a cherry.
[218]
The colored stripes were conceived to make the logo more accessible,
and to represent the fact the Apple II could generate graphics in color.
[218] This logo is often erroneously referred to as a tribute to
Alan Turing, with the bite mark a reference to
his method of suicide.
[219][220] Both Janoff and Apple deny any homage to Turing in the design of the logo.
[218][221]
On August 27, 1999
[214] (the year following the introduction of the
iMac G3),
Apple officially dropped the rainbow scheme and began to use
monochromatic logos nearly identical in shape to the previous rainbow
incarnation. An
Aqua-themed version of the monochrome logo was used from 1999 to 2003, and a glass-themed version was used from 2007 to 2013.
[citation needed]
Steve Jobs and Steve Wozniak were
Beatles fans,
[222][223] but Apple Inc. had name and logo trademark issues with
Apple Corps Ltd., a multimedia company started by the Beatles in 1967. 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.
[citation needed]
Advertising
Apple's first slogan, "
Byte into an Apple", was coined in the late 1970s.
[224] From 1997 to 2002, the slogan "
Think Different" was used in advertising campaigns, and is still closely associated with Apple.
[225] Apple also has slogans for specific product lines — for example, "iThink, therefore iMac" was used in 1998 to promote the iMac,
[226] and "Say hello to iPhone" has been used in iPhone advertisements.
[227] "Hello" was also used to introduce the original Macintosh,
Newton, iMac ("hello (again)"), and iPod.
[228]
From 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 for its efforts towards effective
advertising and marketing for its products. However, claims made by
later campaigns
were criticized, particularly the 2005 Power Mac ads.
[229][230][231] Apple's product commercials gained a lot of attention as a result of their eye-popping graphics and catchy tunes.
[232]
Musicians who benefited from an improved profile as a result of their
songs being included on Apple commercials include Canadian singer
Feist with the song "
1234" and
Yael Naïm with the song "
New Soul".
[232]
Brand loyalty
Apple aficionados wait in line around the Apple Store in anticipation of a new product.
"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."
Apple's high level of
brand loyalty is considered unusual for any product.
Apple evangelists were actively engaged by the company at one time, but this was after the phenomenon had already been firmly established. Apple
evangelist Guy Kawasaki has called the brand fanaticism "something that was stumbled upon,"
[234] while Ive explained in 2014 that "People have an incredibly personal relationship" with Apple's products.
[57] 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.
[235] The opening of
New York City's
Fifth Avenue "Cube" store had a line half a mile long; a few Mac fans used the setting to propose marriage.
[236] The line for the
Ginza opening in Tokyo was estimated to include thousands of people and exceeded eight city blocks.
[237]
Fortune magazine named Apple the most admired company in the United States in 2008, and in the world from 2008 to 2012.
[238][239][240][241][242] On September 30, 2013, Apple surpassed
Coca-Cola to become the world's most valuable brand in the
Omnicom Group's "Best Global Brands" report.
[243] Boston Consulting Group has ranked Apple as the world's most innovative brand every year since 2005.
[244]
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."
[245] 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 were more expensive than other PC products.
[246][247]
In response to a query about the devotion of loyal Apple consumers, Jonathan Ive responded:
What people are responding to is much bigger than the object. They
are responding to something rare—a group of people who do more than
simply make something work, they make the very best products they
possibly can. It’s a demonstration against thoughtlessness and
carelessness.[57]
Headquarters
Main article:
Apple Campus
A rendering of the Apple's under construction campus in Cupertino
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 m
2) and was built in 1993 by Sobrato Development Cos.
[255]
Apple has a satellite campus in neighboring
Sunnyvale, California, where it houses a testing and research laboratory.
[256] AppleInsider
published article in March 2014 claiming that Apple has a tucked away a
top-secret facility where is developing the SG5 electric vehicle
project codenamed "Titan" under the shell company name
SixtyEight Research.
[257]
In 2006, Apple announced its intention to build a second campus in
Cupertino about 1 mile (1.6 km) east of the current campus and next to
Interstate 280.
[258] The new campus building will be designed by
Norman Foster.
[259]
The Cupertino City Council approved the proposed "spaceship" design
campus on October 15, 2013, after a 2011 presentation by Jobs 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 surrounded by extensive landscape. It
will feature a café with room for 3,000 sitting people and parking
underground as well as in a parking structure. The 2.8 million square
foot facility will also include Jobs's original designs for a fitness
center and a corporate auditorium.
[260]
Apple's headquarters for Europe, the Middle East and Africa (EMEA) are located in
Cork in the south of
Ireland.
[128][261][262][263][264][265][266] The facility, which opened in 1980, was Apple's first location outside of the United States.
[267]
Apple Sales International, which deals with all of Apple's
international sales outside of the USA, is located at Apple's campus in
Cork
[268] along with Apple Distribution International, which similarly deals with Apple's international distribution network.
[269]
On April 20, 2012, Apple added 500 new jobs at its European
headquarters, increasing the total workforce from around 2,800 to 3,300
employees.
[260][261][270] The company will build a new office block on its Hollyhill Campus to accommodate the additional staff.
[271]
In February 2015, Apple opened their new 180,000-square-foot headquarters in
Herzliya,
Israel, which will accommodate approximately 800 employees. This
opening was Apple's third office located within Israel; the first, also
in Herzliya, was obtained as part of the Anobit acquisition, and the
other is a research center in
Haifa.
[272][273]
Stores
Apple has 453 retail stores (as of March 2015)
[1] in 16 countries and an
online store available in 39 countries.
[274]
Each store is designed to suit the needs of the location and regulatory
authorities. Apple has received numerous architectural awards for its
store designs, particularly its midtown Manhattan location on
Fifth Avenue.
[275][276]
The Apple Store in
Regent Street,
London,
was the first to open in Europe in November 2004, and is the most
profitable shop in London with the highest sales per square foot, taking
£60,000,000 pa, or £2,000 per square foot.
[277] The Regent Street store was surpassed in size by the nearby Apple Store in
Covent Garden, which was surpassed in size by the
Grand Central Terminal Apple Store,
New York City, in December 2011.
Of the 43,000 Apple employees in the United States 30,000 work at
Apple Stores. Apple Store employees make above average pay for retail
employees and are offered money toward college as well as gym
memberships, 401k plans, healthcare plans, product discounts, and
reduced price on purchase of stock.
[278]
Corporate affairs
Corporate culture
Apple was one of several highly successful companies founded in the 1970s that bucked the traditional notions of
corporate culture. Jobs often walked around the office barefoot even after Apple became a
Fortune 500
company. By the time of the "1984" television commercial, Apple's
informal culture had become a key trait that differentiated it from its
competitors.
[279] According to a 2011 report in
Fortune, this has resulted in a corporate culture more akin to a startup rather than a multinational corporation.
[280]
As the company has grown and been led by a series of differently
opinionated chief executives, it has arguably lost some of its original
character. Nonetheless, it has maintained a reputation for fostering
individuality and excellence that reliably attracts talented workers,
particularly after Jobs returned to the company. Numerous Apple
employees have stated that projects without Jobs's involvement often
take longer than projects with it.
[281]
To recognize the best of its employees, Apple created the Apple Fellows
program which awards individuals who make extraordinary technical or
leadership contributions to
personal computing while at the company. The Apple Fellowship has so far been awarded to individuals including
Bill Atkinson,
[282] Steve Capps,
[283] Rod Holt,
[282] Alan Kay,
[284][285] Guy Kawasaki,
[284][286] Al Alcorn,
[287] Don Norman,
[284] Rich Page,
[282] and
Steve Wozniak.
[282]
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—Senior
Vice President of Retail Operations until November 1, 2011—was
responsible for site selection, in-store service, and store layout, yet
had no control of the inventory in his stores (this was done by Cook,
who had a background in supply-chain management).
[288][288]
Apple is also known for strictly enforcing accountability. Each project
has a "directly responsible individual," or "DRI" in Apple jargon.
[280] As an example, when iOS senior vice president
Scott Forstall refused to sign Apple's official apology for numerous errors in the redesigned
Maps app, he was forced to resign.
[289]
Unlike other major U.S. companies Apple provides a relatively simple
compensation policy for executives that does not include perks enjoyed
by other CEOs like country club fees or private use of company aircraft.
The company typically grants stock options to executives every other
year.
[290]
Customer service
In 1999 Apple retained Eight Inc. as a strategic retail design
partner and began creating the Apple retail stores. Tim Kobe of Eight
Inc. prepared an "Apple Retail" white paper for Jobs, outlining the
ability of separate Apple retail stores to directly drive the Apple
brand experience—Kobe used their recently completed work with The North
Face and Nike as a basis for the white paper.
[citation needed] The first two Apple Stores opened on May 19, 2001 in Tysons Corner, Virginia, and
Glendale, California. More than 7,700 people visited Apple’s first two stores in the opening weekend, spending a total of US$599,000.
[291] As of June 2014, Apple maintains 425
retail stores in fourteen countries.
[292][293]
In addition to Apple products, the stores sell third-party products
like software titles, digital cameras, camcorders and handheld
organizers.
[294]
A media article published in July 2013 provided details about Apple's
"At-Home Apple Advisors" customer support program that serves as the
corporation's call center. The advisors are employed within the U.S. and
work remotely after undergoing a four-week training program and testing
period. The advisors earn between US$9 and $12 per hour and receive
intensive management to ensure a high quality of customer support.
[295]
Manufacturing
The company's manufacturing, procurement and logistics enable it to
execute massive product launches without having to maintain large,
profit-sapping inventories. In 2011, Apple's profit margins were 40
percent, compared with between 10 and 20 percent for most other hardware
companies. Cook's catchphrase to describe his focus on the company's
operational arm is: “Nobody wants to buy sour milk”.
[116][296]
During the Mac's early history Apple generally refused to adopt
prevailing industry standards for hardware, instead creating their own.
[297] 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.
FireWire is an Apple-originated standard that was widely adopted across the industry after it was standardized as
IEEE 1394.
[298]
Labor practices
The company advertised its products as being made in America until the late 1990s; however, as a result of
outsourcing initiatives in the 2000s, almost all of its manufacturing is now handled 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".
[299]
In 2006, the
Mail on Sunday reported on the working conditions of the Chinese factories where contract manufacturers
Foxconn and
Inventec produced the iPod.
[300]
The article stated that one complex of factories that assembled the
iPod and other items had over 200,000 workers living and working within
it. Employees regularly worked more than 60 hours per week and made
around $100 per month. A little over half of the workers' earnings was
required to pay for rent and food from the company.
[301][302][303]
Apple immediately launched an investigation after the 2006 media
report, and worked with their manufacturers to ensure acceptable working
conditions.
[304] 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.
[305] In 2011, Apple admitted that its suppliers' child labor practices in China had worsened.
[306]
The
Foxconn suicides occurred between January and November 2010, when 18
[307] Foxconn (Chinese: 富士康) employees attempted
suicide,
resulting in 14 deaths—the company was the world’s largest contract
electronics manufacturer, for clients including Apple, at the time.
[307][308][309] The suicides drew media attention, and employment practices at Foxconn were investigated by Apple.
[310] Apple issued a public statement about the suicides, and company spokesperson Steven Dowling said:
[Apple is] saddened and upset by the recent suicides at Foxconn ... A
team from Apple is independently evaluating the steps they are taking
to address these tragic events and we will continue our ongoing
inspections of the facilities where our products are made.[311]
The statement was released after the results from the company's probe
into its suppliers' labor practices were published in early 2010.
Foxconn was not specifically named in the report, but Apple identified a
series of serious labor violations of labor laws, including Apple's own
rules, and some child labor existed in a number of factories.
[311] Apple committed to the implementation of changes following the suicides.
[312]
Also 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.
[313]
After a high suicide rate in a Foxconn facility in China making iPads
and iPhones, albeit a lower rate than that of China as a whole,
[314] workers were forced to sign a legally binding document guaranteeing that they would not kill themselves.
[315] 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.
[316][317][318]
In 2013,
China Labor Watch said it found violations of the law and of Apple's working condition pledges at facilities operated by
Pegatron.
These violations included discrimination against ethnic minorities and
women, withholding of employee pay, excessive work hours, poor living
conditions, health and safety problems and pollution.
[319]
A 2014 BBC investigation found excessive hours and other problems
persisted, despite Apple's promise to reform factory practice after the
2010 Foxconn suicides. The Pegatron factory was once again the subject
of review, as reporters gained access to the working conditions inside
through recruitment as employees. While the BBC maintained that the
experiences of its reporters showed that labor violations were
continuing since 2010, Apple publicly disagreed with the BBC and stated:
“We are aware of no other company doing as much as Apple to ensure fair
and safe working conditions".
[312]
In December 2014, the
Institute for Global Labour and Human Rights
published a report which documented inhumane conditions for the 15,000
workers at a Zhen Ding Technology factory in Shenzhen, China, which
serves as a major supplier of circuit boards for Apple's iPhone and
iPad. According to the report, workers are pressured into 65 hour work
weeks which leaves them so exhausted that they often sleep during lunch
breaks. They are also made to reside in "primitive, dark and filthy
dorms" where they sleep "on plywood, with six to ten workers in each
crowded room." Omnipresent security personnel also routinely harass and
beat the workers.
[320][321]
No cold calling agreements in the United States
In 2013
class action against
several Silicon Valley companies, including Apple, was filed for
alleged "no cold call” agreements which restrained the recruitment of
high-tech employees.
[322]
Environmental practices
Energy
Following a Greenpeace protest, Apple released a statement on April
17, 2012 committing to ending its use of coal and shifting to 100% clean
energy.
[323][324]
By 2013 Apple was using 100% renewable energy to power their data
centers. Overall, 75% of the company's power came from renewable
sources.
[325]
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".
[326]
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".
[327]
Toxins
Following further campaigns by Greenpeace,
[328] in 2008 Apple became the first laptop manufacturer to eliminate the inclusion of
PVC and
BFRs in its devices.
[329][330] In June 2007, Apple began replacing the
cold cathode fluorescent lamp (CCFL) backlit
LCD displays in its computers with
mercury-free
LED backlit LCD displays and
arsenic-free glass, starting with the upgraded
MacBook Pro.
[331][332][333][334] Apple offers information about emissions, materials, and electrical usage concerning each product.
[335] In June 2009, Apple's iPhone 3GS was free of PVC, arsenic, BFRs and had an efficient power adapter.
[331][336]
All Apple computers now have mercury free LED backlit displays,
arsenic-free glass and lack PVC cables. All Apple computers also have
Electronic Product Environmental Assessment Tool (EPEAT) Gold status.
[331]
In October 2011, Chinese authorities ordered an Apple supplier to close part of its plant in
Suzhou after residents living nearby raised significant environmental concerns.
[337]
In November 2011, Apple featured in Greenpeace's Guide to Greener
Electronics, which ranks electronics manufacturers on sustainability,
climate and energy policy, and how "green" their products are. The
company ranked fourth of fifteen electronics companies (moving up five
places from the previous year) with a score of 4.6/10 down from 4.9.
[338]
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.
[338] In January 2012, Apple requested that their cable maker, Volex, begin producing halogen-free USB and power cables.
[339]
Finance
Apple is the
world's second-largest information technology company by revenue after
Samsung Electronics, and the
world's third-largest mobile phone maker.
[340] It is also the
largest publicly traded corporation in the world by market capitalization, with an estimated market capitalization of $446 billion by January 2014.
[341] On February 17, 2015, Apple became the first US corporation to be valued at over $750B
[342] As of December 2014, Apple maintains 447
retail stores including 182 in fourteen countries, as well as the online
Apple Store and
iTunes Store, the latter of which is the world's largest music retailer.
[343] As of September 29, 2012, it employs 72,800 permanent full-time employees and 3,300 temporary full-time employees worldwide.
In its fiscal year ending in September 2011, Apple Inc. reported a
total of $108 billion in annual revenues—a significant increase from its
2010 revenues of $65 billion—and nearly $82 billion in cash reserves.
[344]
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.
[345] On September 2012, Apple reached a record share price of more than $705 and closed at above 700.
[346] With 936,596,000 outstanding shares (as of June 30, 2012),
[347]
The company's worldwide annual revenue in 2013 totaled $170 billion.
[348] In May 2013, Apple entered the top ten of the
Fortune 500 list of companies for the first time, rising 11 places above its 2012 ranking to take the sixth position.
[349]
Tax practices
Global taxes paid by ASI, 2009–2011[350]
|
2011 |
2010 |
2009 |
Total |
| Pre-tax earnings |
US$22 billion |
US$12 billion |
US$4 billion |
US$38 billion |
| Global tax |
US$10 million |
US$7 million |
US$4 million |
US$21 million |
| Tax rate |
0.05% |
0.06% |
0.1% |
0.06% |
Apple has created subsidiaries in low-tax places such as the
Republic of Ireland, the
Netherlands,
Luxembourg and the
British Virgin Islands to cut the taxes it pays around the world. According to
The New York Times,
in the 1980s 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. In the late 1980s 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.
[351]
British Conservative Party Member of Parliament
Charlie Elphicke published research on October 30, 2012,
[352]
which showed that some multinational companies, including Apple Inc.,
were making billions of pounds of profit in the UK, but were paying an
effective tax rate to the UK Treasury of only 3 percent, well below
standard
corporation tax. He followed this research by calling on the
Chancellor of the Exchequer George Osborne to force these multinationals, which also included
Google and
The Coca-Cola Company,
to state the effective rate of tax they pay on their UK revenues.
Elphicke also said that government contracts should be withheld from
multinationals who do not pay their fair share of UK tax.
[353] In June 2014 the
European Commissioner for Competition launched an investigation of Apple's tax practices in
Ireland, as part of a wider probe of multi-national companies' tax arrangements in various European countries.
[354]
As part of the
Luxembourg Leaks, Apple was revealed to use the
Luxembourg tax haven for tax avoidance.
[355]
In 2015
Reuters reported that Apple had earnings abroad of $54.4 billion which were untaxed by the
IRS. Under U.S. law corporations don't pay income tax on overseas profits until the profits are brought into the United States.
[356]
Litigation
Apple has been a participant in various legal proceedings and claims since it began operation.
[357]
In particular, Apple is known for and promotes itself as actively and
aggressively enforcing its intellectual property interests. Some
litigation examples include
Apple v. Samsung,
Apple v. Microsoft,
Motorola Mobility v. Apple Inc., and
Apple Corps v. Apple Computer.
Charitable causes
As of 2014, Apple is listed as a partner of the
Product RED campaign. The campaign's mission is to prevent the transmission of
HIV from mother to child by 2015.
[358] In November 2012, Apple donated $2.5 million to the
American Red Cross to aid relief efforts after
Hurricane Sandy.
[359]
