Apple

A PROJECT REPORT ON

“APPLE INC.” SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF THEDEGREE OF BACHELOR OF BUSINESS ADMINISTRATION 2009-10 UNDER THE GUIDANCE OF Ms. Neha NAME OF THE FACULTY : Ms. NEHA FACULTY, MAIMS SUBMITTED BY: ANMOL MALIK

Maharaja Agrasen Institute of Management Studies Affiliated to Guru Gobind Singh Indraprastha University, Delhi PSP Area, Plot No. 1, Sector 22, Rohini Delhi 110086

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DECLARATION

I hereby declare that the project report entitled topic,” Marketing Strategies of Apple Inc.” is based on my original study and has not been submitted earlier for any degree or diploma of any Institution/University.

The work of the author’(s) wherever used, has been acknowledged at appropriate place.

Date…………………. Candidate signature Place…………………

Name………………………… Enroll. No…………………

Counter Signed Name………………………. (Faculty Guide) MAIMS

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CERTIFICATE

This is to certify that the project titled “Marketing Strategies of Apple Inc.” is an academic work done by “ Anmol Malik” submitted in the partial fulfillment of the requirement for the award of the degree of Bachelor Of Business Administration from Maharaja Agrasen Institute of Management Studies, Delhi, under my guidance & direction. To the best of my knowledge and belief the data & information presented by her in the project has not been submitted earlier.

Name of the Faculty Guide

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ACKNOWLEDGEMENT

I would like to say that I am feeling very overwhelmed and privileged to present the project. Apple Inc. is an American multinational corporation, the company's best-known for hardware. Apple Inc. has always spelt trust - be it with the products themselves or with the service standards. They have built trust by aligning themselves with the needs of customers over the years of trust. It bring outs the present and future marketing strategies of Apple Inc. and the factors leading to the success of it. First of all, I would like to express my thanks to Mr KAKKAR (director, MAIMS) for giving me such a wonderful opportunity to widen the horizons of my knowledge . In no small measure, I would also like to gratefully thank to all those who gave me constructive suggestions for the improvement of all the aspect related to this project. In particular, I would like to thank Mrs. Neha Verma for the assistance. I also owe a deep sense of gratitude to the faculty for their continuous encouragement. Despite all efforts, I have no doubt that error and obscurities remain that seen to afflict all writing projects and for which I am culpable.

ANMOL MALI K 0906111708

TABLE OF CONTENT Page | 4

Page No. 1. Abstract

1

2. Introduction 3 3. Objectives of the Study 4 4.

Literature Review 5

5.

Research and Methodology 7 (a)

Research Design

(b)

Time Frame

(c)Limitation of the Study 6. Retail sector of India (a)

Key factors in Indian Retail 8

(b)

Liberalizing FDI 10

(c)Organized Sector (d)

14

Organized Sector set for Big Leap 17

(e)

Challenges in Indian Retail Boom 21

(f) Retail revolution (g)

28

Organized retail: India vs. china 30

(H) key trends

33 Page | 5

(I) Mall over capacity?

35

(J) Big player’s of Indian retail sector

38

• Reliance fresh

39

• Reliance future plan

41

• Wal-mart

46

• Reliance on wal-mart

55

8. Analysis

56

9. Conclusion

58

10. Recommendations 59 11. References 60

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EXECUTIVE SUMMARY

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PURPOSE OF STUDY REPORT

The process of objective self-study is necessary for any institution wishing to remain vital and vigorous and is particularly crucial for institutions of higher learning. Periodically reexamining the institution’s purpose, mission, goals, planning, and assessment helps to maintain quality educational programs and fosters innovative thinking. Only by carefully examining the past and honestly evaluating the present can an institution effectively plan for the future. The purpose of this Study was multi-faceted: to provide comprehensive examination of the nature of the educational programs at Maharaja Agrasen College of Management Studies; to revise, where necessary, characteristics of those programs; and to identify resources and strategies to assure continued development of quality educational programs. Though the major purpose of this Study was to achieve reaffirmation of accreditation by showing compliance. This Self-Study Report will serve not only as an accounting of our compliance with the Criteria, but also as a springboard for continued examination of institutional effectiveness and as a guide for future planning and assessment efforts.

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RESEARCH OBJECTIVE OF THE STUDY

1. To review the variants offered in India. 2. To know the present and future strategies of the company

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RESEARCH METHODOLOGY OF THE STUDY

The data the project report contains is all secondary data. The secondary data was collected from the internet, books, journals, magazines and newspapers. Secondary data are those data that have already been collected by someone else and have already passed through the statistical process. The secondary data is the type of data chosen by me.

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LIMITATIONS

1. Due to wide spread information of the data, the scope of project becomes very wide. 2. All the matter has been collected through secondary sources; hence, the errors might have crept in. 3. Given the time constraints, all the information could not be gathered. 4. Data being very vast, appropriate information could not be gathered to the point specific requirement needs.

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INTRODUCTION

Apple Inc. is an American multinational corporation that designs and manufactures consumer electronics and computer software products. The company's best-known hardware products include Macintosh computers, the iPod and the iPhone. Apple software includes the Mac OS X operating system, the iTunes media browser, the iLife suite of multimedia and creativity software, the iWork suite of productivity software, and Final Cut Studio, a suite of professional audio and film-industry software products. The company operates more than 250 retail stores in nine countries and an online store where hardware and software products are sold. Established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977, the company was called Apple Computer Inc. for its first 30 years, but dropped the word "Computer" on January 9, 2007 to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Apple has about 35,000 employees worldwide and had worldwide annual sales of US$32.48 billion in its fiscal year ending September 29, 2008. For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008 and in the world in 2009. Apple Inc. is an American multinational corporation that designs and manufactures consumer electronics and computer software products. The company's best-known hardware products include Macintosh computers, the iPod and the iPhone. Apple software includes the Mac OS X operating system, the iTunes media browser, the iLife suite of multimedia and creativity software, the iWork suite of productivity software, and Final Cut Studio, a suite of professional audio and film-industry software products. The company operates more than 250 retail stores in nine countries and an online store where hardware and software products are sold. Established in Cupertino, California on April 1, 1976 and incorporated January 3, 1977, the company was called Apple Computer Inc. for its first 30 years, but dropped the word "Computer" on January 9, 2007 to reflect the company's ongoing expansion into the consumer electronics market in addition to its traditional focus on personal computers. Apple has about 35,000 employees worldwide and had worldwide annual sales of US$32.48 billion in its fiscal year ending September 29, 2008. For reasons as various as its philosophy of comprehensive aesthetic design to its distinctive advertising campaigns, Apple has established a unique reputation in the consumer electronics industry. This includes a customer base that is devoted to the company and its brand, particularly in the United States. Fortune magazine named Apple the most admired company in the United States in 2008 and in the world in 2009. Page | 12

HISTORY 1976–1980: The early years

The Apple I, Apple's first product. Sold as an assembled circuit board, it lacked basic features such as a keyboard, monitor, and case. The owner of this unit added a keyboard and a wooden case. Apple was established on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne,[1] to sell the Apple I personal computer kit. They were hand-built by Wozniak[11][12] and first shown to the public at the Homebrew Computer Club. The Apple I was sold as a motherboard (with CPU, RAM, and basic textual-video chips)—less than what is today considered a complete personal computer.[14] The Apple I went on sale in July 1976 and was market-priced at $666.66.[15][16][17][18][19] Apple was incorporated January 3, 1977[5] 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.[20][21] The Apple II was introduced on April 16, 1977 at the first West Coast Computer Faire. It differed from its major rivals, the TRS-80 and Commodore PET, because it came with color graphics and an open architecture. While early models used ordinary cassette tapes as storage devices, they were superseded by the introduction of a 5 1/4 inch floppy disk drive and interface, the Disk II.[22] The Apple II was chosen to be the desktop platform for the first "killer app" of the business world—the VisiCalc spreadsheet program.[23] 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.[23] According to Brian Bagnall, Apple exaggerated its sales figures and was a distant third place to Commodore and Tandy until VisiCalc came along.[24][25] By the end of the 1970s, Apple had a staff of computer designers and a production line. The Apple II was succeeded by the Apple III in May 1980 as the company competed with IBM and Microsoft in the business and corporate computing market.[26] 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 $1 million in pre-IPO Apple stock. Jobs was immediately convinced that all future computers would use a GUI, and development of a GUI began for the Apple Lisa. Page | 13

In December 1980, Apple launched the Initial Public Offering of its stock to the investing public. When Apple went public, it generated more capital than any IPO since Ford Motor Company in 1956 and instantly created more millionaires (about 300) than any company in history. Several venture capitalists cashed out, reaping billions in long-term capital gains.

1981–85: Lisa and Macintosh

The heroine from Apple's 1984 ad, set in a dystopian future modeled after the Orwell novel Nineteen Eighty-Four, set the tone for the introduction of the Macintosh. Steve Jobs began working on the Apple Lisa in 1978 but in 1982 he was pushed from the Lisa team due to infighting, and took over Jef Raskin's low-cost-computer project, the Macintosh. A turf war broke out between Lisa's "corporate shirts" and Jobs' "pirates" over which product would ship first and save Apple. Lisa won the race in 1983 and became the first personal computer sold to the public with a GUI, but was a commercial failure due to its high price tag and limited software titles.

The Macintosh 128K, the first Macintosh computer. In 1984, Apple next launched the Macintosh. Its debut was announced by the now famous $1.5 million television commercial, "1984". It was directed by Ridley Scott, aired during the third quarter of Super Bowl XVIII on January 22, 1984, and is now considered a watershed event for Apple's success and a "masterpiece". Page | 14

The Macintosh initially sold well, but follow-up sales were not strong.[34] The machine's fortunes changed with the introduction of the LaserWriter, the first PostScript laser printer to be offered at a reasonable price point, and PageMaker, an early desktop publishing package. The Mac was particularly powerful in this market due to its advanced graphics capabilities, which were already necessarily built-in to create the intuitive Macintosh GUI. It has been suggested that the combination of these three products was responsible for the creation of the desktop publishing market.[35] A power struggle developed between Jobs and new CEO John Sculley in 1985.[36] Apple's board of directors sided with Sculley and Jobs was removed from his managerial duties.[34] Jobs resigned from Apple and founded NeXT Inc. the same year.[37] Apple's sustained growth during the early 1980s was in great part due to its leadership in the education sector, attributed to an implementation of the LOGO Programming Language by Logo Computer Systems Inc., (LCSI), for the Apple II platform. The success of Apple and LOGO in the education environment provided Apple with a broad base of loyal users around the world. The drive into education was accentuated in California by a momentous agreement concluded between Steve Jobs and Jim Baroux of LCSI, agreeing with the donation of one Apple II and one Apple LOGO software package to each public school in the state. The arrangement, (eventually replicated in Texas), established a strong and pervasive presence for Apple in all schools throughout California, that ignited the acquisition of Apple IIs in schools across the country. The conquest of education became critical to Apple's acceptance in the home, as parents supported children’s continued learning experience after school. 1986–93: Rise and fall Timeline of Apple II family and Timeline of Macintosh models

The Macintosh Portable was Apple's first "portable" Macintosh computer, released in 1989. Having learned several painful lessons after introducing the bulky Macintosh Portable in 1989, Apple introduced the PowerBook in 1991, which established the modern form and ergonomic layout of the laptop computer.[38] The same year, Apple introduced System 7, a major upgrade to the operating system, which added color to the interface and introduced new networking capabilities. It remained the architectural basis for Mac OS until 2001. The success of the PowerBook and other products led to increasing revenue.[36] 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. Page | 15

Following the success of the LC, Apple introduced the Centris line, a low end Quadra offering, and the ill-fated Performa line that was sold in several confusing configurations and software bundles to avoid competing with the various consumer outlets such as Sears, Price Club, and Wal-Mart, the primary dealers for these models. The end result was disastrous for Apple as consumers did not understand the difference between models. During this time Apple experimented with a number of other failed consumer targeted products including digital cameras, portable CD audio players, speakers, video consoles, and TV appliances. Enormous resources were also invested in the problem-plagued Newton division based on John Sculley's unrealistic market forecasts. Ultimately, all of this proved be too-little-too-late for Apple as their market share and stock prices continued to slide. Apple saw the Apple II series as too expensive to produce, while taking away sales from the low end Macintosh.[39] 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.[40] 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.[41] 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.[42] The lawsuit dragged on for years before being thrown out of court. At the same time, a series of major product flops and missed deadlines destroyed Apple's reputation and Sculley was replaced by Michael Spindler.[43] 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. A financial flop, it helped pave the way for the Palm Pilot and Apple's own iPhone in the future. By the early 1990s, Apple was developing alternative platforms to the Macintosh, such as the A/UX. The Macintosh platform was becoming outdated since it was not built for multitasking, and several important software routines were programmed directly into the hardware. In addition, Apple was facing competition from OS/2 and UNIX vendors like Sun Microsystems. The Macintosh would need to be replaced by a new platform, or reworked to run on more powerful hardware.

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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.[45] In 1996, Michael Spindler was replaced by Gil Amelio as CEO. Gil Amelio made many changes at Apple, including massive layoffs.[46] 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.[47] 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.[48] On November 10, 1997, Apple introduced the Apple Store, tied to a new build-to-order manufacturing strategy.[49][50] 1998–2005: Return to profitability

Company headquarters on Infinite Loop in Cupertino, California. 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.[51][52] The iMac featured modern technology and a unique design. It sold close to 800,000 units in its first five months and returned Apple to profitability for the first time since 1993.[53] 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.[54] The following year, Apple released two video editing products: iMovie for consumers, and Final Cut Pro for professionals, the latter of which has gone on to be a significant video-editing program, with 800,000 registered users in early 2007.[55] In 2002 Apple purchased Nothing Real for their advanced digital compositing application Shake,[56] as well as Emagic for their music productivity application Logic, which led to the development of their consumer-level GarageBand application.[57][58] iPhoto's release the same year completed the iLife suite.[59] Page | 17

The entrance of the Apple Store on Fifth Avenue in New York City is a glass cube, housing a cylindrical elevator and a spiral staircase that leads into the subterranean store. 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.[60] On May 19, 2001, Apple opened the first official Apple Retail Stores in Virginia and California.[61] The same year, Apple introduced the iPod portable digital audio player. The product was phenomenally successful — over 100 million units were sold within six years.[62] [63] 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.[64] 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.[65][66] 2005–present: The Intel partnership

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.[67] On January 10, 2006, the new MacBook Pro and iMac became the first Apple computers to utilize Intel's Core Duo CPU. By August 7, 2006 Apple had transitioned the entire Mac product line to Intel chips, over 1 year sooner than announced.[67] The Power Mac, iBook, and PowerBook brands were retired during the transition; the Mac Pro, MacBook, and MacBook Pro became their respective successors.[68][69]. On April 29, 2009, The Wall Street Journal reported that Apple was building its own team of engineers to design microchips.[70] Page | 18

Apple also introduced Boot Camp to help users install Windows XP or Windows Vista on their Intel Macs alongside Mac OS X.[71] 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 (splitadjusted) to over $80. In January 2006, Apple's market cap surpassed that of Dell.[72] 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."[73] Delivering his keynote at the Macworld Expo on January 9, 2007, Steve Jobs announced that Apple Computer, Inc. would from that point on be known as Apple Inc. The event also saw the announcement of the iPhone and the Apple TV.[74] The following day, Apple shares hit $97.80, an all-time high. In May, Apple's share price passed the $100 mark.[75] On February 6, 2007, Apple indicated that it would 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.[76] 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.[77] On July 11, 2008, Apple launched the App Store to sell third-party applications for the iPhone and iPod Touch.[78] Within a month, the store sold 60 million applications and brought in $1 million daily on average, with Steve Jobs speculating that the App Store could become a billion-dollar business for Apple.[79] 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.[80] On December 16, 2008, Apple announced 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 Steve Jobs.[81] On January 14, 2009, an internal Apple memo from Steve 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.[82] Despite Steve 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.

APPLE PRODUCTS

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Current products See also: Timeline of Apple products and List of products discontinued by Apple Inc. Mac and accessories See also: Timeline of Macintosh models, List of Macintosh models grouped by CPU type, and List of Macintosh models by case type

The Mac mini, low-cost desktop computer. • • • • • •

•

Mac mini, consumer sub-desktop computer introduced in January 2005. iMac, consumer all-in-one desktop computer that was first introduced by Apple in 1998. Its popularity helped revive the company's fortunes. Mac Pro, workstation-class desktop computer introduced in August 2006, it was previously known as the PowerMac. MacBook, consumer notebook introduced in 2006, available in white, it was previously known as the iBook. MacBook Air, ultra-thin, ultra-portable notebook, introduced in January 2008. MacBook Pro, professional portable computer alternative to the MacBook, available in 13, 15, and 17 inch variants, introduced in January 2006, it was previously known as the PowerBook. Xserve, rack mounted, dual or quad core, dual processor 1U server.

Apple sells a variety of computer accessories for Mac computers including the AirPort wireless networking products, Time Capsule, Cinema Display, Mighty Mouse, the Apple Wireless Keyboard computer keyboard, and the Apple USB Modem. iPod

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iPod Nano On October 23, 2001, Apple introduced the iPod digital music player. It has evolved to include various models targeting the needs of different users. The iPod is the market leader in portable music players by a significant margin, with more than 100 million units shipped as of April 9, 2007.[84] Apple has partnered with Nike to offer the Nike+iPod Sports Kit enabling runners to synchronize and monitor their runs with iTunes and the Nike+ website. Apple currently sells four variants of the iPod. • • • •

iPod Classic (previously named iPod from 2001 to 2007), portable media player first introduced in 2001, currently available in an 120 GB model. iPod Nano, portable media player first introduced in 2005, currently available in 8 and 16 GB models. iPod Shuffle, digital audio player first introduced in 2005, currently available in 1 and 4 GB models. iPod Touch, portable media player first introduced in September 2007, currently available in 8, 16, and 32 GB models.

iPhone At the Macworld Conference & Expo in January 2007, Steve Jobs revealed the long anticipated[85] iPhone, a convergence of an Internet-enabled smartphone and iPod.[86] The original iPhone combined a 2.5G quad band GSM and EDGE cellular phone with features found in hand held devices, running a scaled-down versions of Apple's Mac OS X (dubbed 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").[86] The iPhone first became available on June 29, 2007 for $499 (4 GB) and $599 (8 GB) with an AT&T contract.[87] On June 9, 2008, at WWDC 2008, Steve Jobs announced that the iPhone 3G would be available on July 11, 2008.[88] 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.[89] 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 and video recording capability. • •

iPhone 3G, currently available in an 8 GB model. iPhone 3GS, currently available in 16 and 32 GB models.

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Apple TV At the 2007 Macworld conference, Jobs demonstrated the Apple TV, (previously known as the iTV), a set-top video device intended to bridge the sale of content from iTunes with highdefinition televisions. The device links up to a user's TV and syncs, either via Wi-Fi or a wired network, with one computer's iTunes library and streams from an additional four. The Apple TV originally incorporated a 40 GB hard drive for storage, includes outputs for HDMI and component video, and plays video at a maximum resolution of 720p. On May 31, 2007 a 160 GB drive was released alongside the existing 40 GB model and on January 15, 2008 a software update was released, which allowed media to be purchased directly from the Apple TV. Software Apple develops its own operating system to run on Macs, Mac OS X, the latest version being Mac OS X v10.6 Snow Leopard. Apple also independently develops computer software titles for its Mac OS X operating system. Much of the software Apple develops is bundled with its computers. An example of this is the consumer-oriented iLife software package that bundles iDVD, iMovie, iPhoto, iTunes, GarageBand, and iWeb. For presentation, page layout and word processing, iWork is available, which includes Keynote, Pages, and Numbers. iTunes, QuickTime media player, Safari web browser, and 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 Mac OS X Server; Apple Remote Desktop, a remote systems management application; WebObjects, Java EE Web application server; and Xsan, a Storage Area Network file system. For the professional creative market, there is Aperture for professional RAW-format photo processing; Final Cut Studio, a video production suite; Logic, a comprehensive music toolkit and Shake, an advanced effects composition program. Apple also offers online services with MobileMe (formerly .Mac) that bundles personal web pages, email, Groups, iDisk, backup, iSync, and Learning Center online tutorials. MobileMe is a subscription-based internet suite that capitalizes on the ability to store personal data on an online server and thereby keep all web-connected devices in sync.[94] Announced at MacWorld Expo 2009, iWork.com allows iWork users to upload documents for sharing and collaboration. Timeline of Apple products Timeline of Apple products, Timeline of Apple II family, and Timeline of Macintosh models

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Products on this timeline indicate introduction dates only and not necessarily discontinued dates, as new products begin on a contiguous product line.

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 terms of organizational hierarchy (flat versus tall, casual versus formal attire, etc.). Other highly successful firms with similar cultural aspects from the same time period include Southwest Airlines and Microsoft. Originally, the company stood in opposition to staid competitors like IBM more or less by default, thanks to the influence of its founders; Steve Jobs often walked around the office barefoot even after Apple was a Fortune 500 company. By the time of the "1984" TV ad, this trait had become a key way the company attempts differentiated itself from its competitors.[95] 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. Apple Fellows are those who have 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,[96] Steve Capps,[97] Rod Holt,[96] Alan Kay,[98][99] Guy Kawasaki,[98][100] Al Alcorn,[101] Don Norman,[98] Rich Page,[96] and Steve Wozniak.[96] Page | 23

Users According to surveys by J. D. Power, Apple has the highest brand and repurchase loyalty of any computer manufacturer. While this brand loyalty is considered unusual for any product, Apple appears not to have gone out of its way to create it. At one time, Apple evangelists were actively engaged by the company, but this was after the phenomenon was already firmly established. Apple evangelist Guy Kawasaki has called the brand fanaticism "something that was stumbled upon".[102] 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 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. Mac developers in turn 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.[103] 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.[104] The Ginza opening in Tokyo was estimated in the thousands with a line exceeding eight city blocks.[105] 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."[106] Market research indicates that Apple draws its customer base from an unusually artistic, creative, and well-educated population, which may explain the platform’s visibility within certain youthful, avant-garde subcultures.[107] Corporate affairs See also: List of mergers and acquisitions by Apple, Braeburn Capital, and FileMaker Inc. Apple has a history of vertical integration in their products, manufacturing the hardware on which they pre-install their software.[citation needed] During the Mac's early history Apple generally refused to adopt prevailing industry standards for hardware, instead creating their own.[108] 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 such standards such as USB.[109] FireWire is an Apple-originated standard that has seen widespread industry adoption after it was standardized as IEEE 1394.[110] Ever since the first Apple Store opened, Apple has sold third party accessories.[111] This allows, for instance, Nikon and Canon to sell their Mac-compatible digital cameras and camcorders inside the store. Adobe, one of Apple's oldest software partners,[112] 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 Page | 24

notable exception however. The publisher's line of books were banned from Apple Stores in 2005 because Steve Jobs disagreed with their editorial policy.[113] Headquarters Main article: Infinite Loop (street)

Apple Inc., 1 Infinite Loop, Cupertino, CA. Apple Inc.'s world corporate headquarters are located in the middle of Silicon Valley, at 1 Infinite Loop, Cupertino, California. This Apple campus has six buildings that total 850,000 square feet (79,000 m2) and was built in 1993 by Sobrato Development Cos.[114] In 2006, Apple announced its intention to build a second campus on 50 acres (200,000 m2) assembled from various contiguous plots. The new campus, also in Cupertino, will be about one mile (1.6 km) east of the current campus.[115] 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 it has been criticized for the claims of some more recent campaigns, particularly 2005 Power Mac ads[116][117][118] and iPhone ads in Britain. Logos Apple’s first logo, designed by Jobs and 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, as a way to humanize the company.[119][120] The original hand drawn logo features Sir Isaac Newton, and one theory states that the symbol references his discoveries of gravity (the apple) and the separation of light by prisms (the colors). Another explanation exists that the bitten apple pays homage to the mathematician Alan Turing, who committed suicide by eating an apple he had laced with cyanide.[121] Turing is regarded as one of the fathers of the computer. The rainbow colors of Page | 25

the logo are rumored to be a reference to the rainbow flag, as a homage to Turing's homosexuality.[122] In 1998, with the roll out of the new iMac, Apple discontinued the rainbow theme — supposedly at the insistence of recently returned Jobs — and began to use monochromatic themes, nearly identical in shape to its previous rainbow incarnation. However, no specific color is prescribed throughout Apple's software and hardware line. The logo's shape is one of the most recognized brand symbols in the world, identifies all Apple products and retail stores (the name "Apple" is not even present) and has been included as stickers in nearly all Macintosh and iPod packages through the years.

The monochromethemed logo maintained the The original The rainbow same shaped as the Apple logo "bitten" logo, used rainbow theme it featuring from late 1976 replaced. It is still Isaac Newton until replaced in used and often under the 1998 by appears in various fabled apple monochrome colors on various tree. themes. products, such as packaging and advertisements in 2003.

The "glass"-themed Apple logo, used The Aqua-themed from 2003 to Apple logo, used present. It first from 2001 to 2003 appears on Mac OS on packaging and X Panther and also advertisements, on start-up of the and on early iPhone, iPod Touch, versions of Mac fifth generation OS X before video iPod, iPod Panther.[citation needed] Nano, and all subsequent versions of these products.

Slogans Apple's first slogan, "Byte into an Apple", was coined in the late 1970s. From 1997–2002, Apple used the slogan Think Different in advertising campaigns. The slogan had a lasting impact on their image and revived their popularity with the media and customers. Although the slogan has been retired, it is still closely associated with Apple. Apple also has slogans for specific product lines — for example, "iThink, therefore iMac", was used in 1998 to promote the iMac, and "Say hello to iPhone" has been used in iPhone advertisements. "Hello" was also used to introduce the original Macintosh, Newton, iMac ("hello (again)"), and iPod.[citation needed] News & Opinion

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Apple's Best Non-Holiday Quarter Ever PR: Apple on Tuesday announced financial results for its fiscal 2009 third quarter ended June 27, 2009. The company posted revenue of $8.34 billion and a net quarterly profit of $1.23 billion, or $1.35 per diluted share. These results compare to revenue of $7.46 billion and net quarterly profit of $1.07 billion, or $1.19 per diluted share, in the year-ago quarter. Gross margin was 36.3%, up from 34.8% in the year-ago quarter. International sales accounted for 44% of the quarter's revenue. In accordance with the subscription accounting treatment required by GAAP, the company recognizes revenue and cost of goods sold for iPhone and Apple TV over their estimated economic lives. Adjusting GAAP sales and product costs to eliminate the impact of subscription accounting, the corresponding non-GAAP measures for the quarter are $9.74 billion of "Adjusted Sales" and $1.94 billion of "Adjusted Net Income."

Macintosh Unit Sales, late 2004 to mid 2009. Apple sold 2.6 million Macintosh computers during the quarter, representing a 4% unit increase over the year-ago quarter. The company sold 10.2 million iPods during the quarter, representing a 7% unit decline from the year-ago quarter. Quarterly iPhones sold were 5.2 million, representing 626% unit growth over the year-ago quarter. "We're making our most innovative products ever, and our customers are responding," said Steve Jobs, Apple's CEO. "We're thrilled to have sold over 5.2 million iPhones during the quarter, and users have downloaded more than 1.5 billion applications from our App Store in its first year." "We're extremely pleased to report record non-holiday quarter revenue and earnings and quarterly cash flow from operations of $2.3 billion," said Peter Oppenheimer, Apple's CFO. "Looking ahead to the fourth fiscal quarter of 2009, we expect revenue in the range of about $8.7 billion to $8.9 billion, and we expect diluted earnings per share in the range of about $1.18 to $1.23." Page | 27

Apple provided live streaming of its Q3 2009 financial results conference call utilizing QuickTime, Apple's standards-based technology for live and on-demand audio and video streaming. The live webcast will be available for replay for approximately two weeks. Products & Services CinemaView HD TV and Data Displays Announced PR: Collins America announces a group of display and TV products engineered to radically expand the capabilities of today's Apple computer systems. The new products include 24" and 47" HD LCD displays, both with native Mini DisplayPort connections, and a full featured headless TV system with full HD TV features, as well as Mini DisplayPort connections both in an out.

CinemaView believes that tomorrow's graphics and video experiences simply are not going to be the same as yesterday's, and that Apple will continue to lead and define the path forward for consumer video entertainment. An investment made into a display product today should lead to many years of easy integration with your home video lifestyle. With Apple's implementation of Mini DisplayPort connectors on its computers, and with HDMI on its Apple TV, these two interfaces define the future of Apple-centric video. The two new CinemaView displays have the 16:9 cinematic aspect ratio and 1920 x 1080 resolution that is well suited for viewing either movies, HD TV, or data. One of these displays makes a terrific companion to a Mac, connecting by Mini DisplayPort, and routing USB 2.0 through the same cable from the Mac to the display's four port USB 2.0 hub. Our CinemaView TV product turns a CinemaView display into a full-blown HD television system, in addition to enabling direct connection to both a Mac and an Apple TV, too. Plug a 24" or 47" CinemaView display into the Mini DisplayPort output, connect your favorite TV peripherals by HDMI, composite, or component links, connect your Mac to the Mini DisplayPort input and your Apple TV to an HDMI input. CinemaView TV has dual cableready HD tuners with picture-in-picture, and includes easy-to-use onscreen controls, and an RF wireless remote. Inserting a CinemaView TV box between a Mac and either an Apple LED LCD Cinema Display or a CinemaView display turns any new Mac system into a complete HD home television system. Together, these three new products open an expanded world of options, from simply connecting one of the displays to a Mac, using one of the displays with the TV box, or combining a Mac, the TV box, and one of the displays, as well as any other HDMI-connected peripherals into a full featured home video entertainment system, all using the high Page | 28

bandwidth and high quality Mini DisplayPort interface found on all new Apple Mac computers. The CinemaView 24 LCD display will be available in October 2009 with a USA list price of $499. The CinemaView 47 LCD display will be available in January 2010 with a USA list price of $1,499. And, the CInemaView TV will be available in January 2010 with a US list price of $399. All three products are built using our UniFrameô Aluminum construction that precisely matches the design theme of current Apple computers. And, the entire approach taken in designing the products is aimed to please the most ardent Mac fans. CinemaView products will be available from the CinemaView web site, from Apple Specialist retailers across the USA, and from hundreds of independent Apple product and custom home theater and AV contractors and resellers around the world. CinemaView products can be reserved now from the CinemaView web site. Customers placing reservations before October 1, 2009 will receive free shipping to USA, Canada, and EU destinations. Software iPhoto to Disk Freeware Image Management Utility PR: If your iPhoto library contains thousands of photos and movies organized in hundreds of events, retrieving your media files may be a challenging experience. That's where iPhoto To Disk can help.

Whether you need to export your photos or movies for use in other applications or you just want to archive a part of your library, iPhoto To Disk makes it easy. iPhoto To Disk exports your media files to a well-structured folder hierarchy. You probably don't want the thousands of photos and movies in your library to all be exported to a single folder. Using iPhoto To Disk you can automatically organize your export by "event" or by "year and event" in a hierarchical folder structure. iPhoto To Disk allows flexible naming of your media files. You can keep your original media file names, but they are most probably meaningless (they typically depend on your camera Page | 29

settings). Did you spend time defining relevant names for your iPhoto events? Of course! Did you label your photos and movies with titles? Great! Then, with iPhoto To Disk, you can use this valuable information to automatically rename the exported media files. iPhoto To Disk is simple. All features are available in a single window, as shown in the screenshot below. To retrieve your media files, select iPhoto events in your library, drag your selection to the export basket, choose your export preferences and click the "Export" button. Done! iPod Touch

2nd generation iPod touch with iPhone OS 3.0 Manufacturer Apple Inc. The iPod Touch (trademarked and marketed as iPod touch) is a portable media player, personal digital assistant, and Wi-Fi mobile platform designed and marketed by Apple Inc. The product was launched on September 5, 2007 at an event called The Beat Goes On.[4] The iPod Touch adds the multi-touch graphical user interface to the iPod line and is available with 8, 16, or 32 GB of flash memory. It includes Apple's Safari web browser and is the first iPod with wireless access to the iTunes Store. It also has access to Apple's App Store. The second generation iPod Touch, featuring external volume controls, a built-in speaker, a contoured back, built-in Nike+, and Bluetooth support, was unveiled on September 9, 2008 at the Let's Rock keynote presentation. Timeline of full-size iPod models See also: Timeline of iPod models and Timeline of compact iPod models

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iPod Nano

4th Generation iPod Nano The iPod Nano (marketed lowercase as iPod nano) is a portable media player designed and marketed by Apple Inc. It is the midrange model in Apple's iPod family. The first generation was introduced in 2005.[1] It uses flash memory, like the iPod Shuffle, but with a 2-inch (diagonal) QVGA display and the "click wheel" found on the iPod Classic. The iPod Nano has gone through four models, or generations, since its introduction. Supported audio formats • • • • • • •

AAC (16 to 320 kbps) Protected AAC (from the iTunes Store) MP3 (16 to 320 kbps, including variable bitrate files) Audible (formats 2, 3 and 4) Apple Lossless AIFF WAV

Timeline of compact iPod models Page | 31

See also: Timeline of iPod models and Timeline of full-size iPod models

iPod Shuffle

From left to right, the three generations of the iPod Shuffle. The iPod Shuffle (trademarked as iPod shuffle) is a digital audio player designed and marketed by Apple Inc. It is the budget model in Apple's iPod family. It was announced at the Macworld Conference & Expo on January 11, 2005, using the tagline "life is random". Instead of storing data on a hard disk, it was the first iPod to use flash memory. The current third generation model, introduced on March 11, 2009, weighs 10.7 grams (0.38 ounces).The iPod Shuffle is the smallest digital audio player ever produced by Apple

Timeline of compact iPod models Page | 32

iPod Classic

iPod Classic 6th generation The iPod Classic (trademarked as iPod classic and known before its sixth generation as simply the iPod) is a portable media player marketed by Apple Inc. To date, there have been six generations of the iPod Classic, as well as a spin-off (the iPod Photo) that was later reintegrated into the main Classic line. All generations use a 1.8-inch hard drive for storage. The "Classic" retronym was introduced with the introduction of the sixth-generation iPod Classic on 5 September 2007;[1] prior to this, an iPod Classic was simply referred to as an iPod. Technical information

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User interface

The iPod's signature Click Wheel iPods with color displays use anti-aliased graphics and text, with sliding animations. All iPods have five buttons and the later generations (4th and above) have the buttons integrated into the click wheel — a design which gives an uncluttered, minimalist interface. The buttons are: • • • • •

Menu: to traverse backwards through the menus, toggle the backlight on older iPods, and jump to the main menu on newer iPods Center: to select a menu item Play / Pause: this doubles as an off switch when held Skip Forward / Fast Forward Skip Backwards / Fast Reverse

Timeline of full-size iPod models

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Apple TV

Apple TV on display pre-release at the Macworld 2007 conference Apple TV is a digital media receiver manufactured, marketed and sold by Apple. It is a small form-factor network appliance designed to play digital content originating from the iTunes store, YouTube, Flickr, MobileMe or any Mac OS X or Windows computer running iTunes onto an enhanced-definition or high-definition widescreen television. Apple TV can function as either a home theater-connected iPod device or a digital media receiver, depending on the needs of the user. It was first announced at a special press event in San Francisco, California on September 12, 2006, by Apple CEO Steve Jobs. The devices started shipping on March 21, 2007.[5] This initial version shipped with 40 GB of storage. A second version with a larger 160 GB hard disk started shipping on May 31, 2007. Features AppleTV is a network device that allows consumers to use an HDTV set to view photos, play music and watch video that originates from an Internet media service or a local network. Internet media services include the iTunes Store, YouTube, Flickr, or MobileMe. By connecting directly to the iTunes Store, users can buy and rent movies, buy television shows, songs, albums, and music videos and subscribe to video and audio podcasts, much of the content in high definition. Consumers can browse and view YouTube videos and Flickr or MobileMe photo albums.[10] Apple TV can also sync or stream photo, music and video content from a network-connected computer running iTunes.[11] Apple TV includes enhanced remote control and AirTunes capabilities.[2] Apple plans to continue offering new features through automatic software upgrades, leaving the door open to further utilization of its hardware capabilities and new software developments. Internet media services Apple TV offers basic media services with movie previews and YouTube videos. The Apple TV provides YouTube integration by receiving direct streams from YouTube.[16][17] A YouTube account is not required to browse and view YouTube videos, but it is good to configure for personalized options, such as viewing favorites.[18]

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With the 'Take 2' software update announced by Steve Jobs at Macworld 2008, Apple TV became capable of acting as a pure stand-alone device, no longer requiring a computer running iTunes on Mac OS X or Windows to stream or sync content to it. Jobs stated, "Apple TV was designed to be an accessory for iTunes and your computer. It was not what people wanted. We learned what people wanted was movies, movies, movies."[19] Users can access the iTunes store directly through Apple TV to purchase movies, music, music videos, and television shows.[20][21] Customers can also use Apple TV to rent regular or HD-quality movies[22] Until mid-March, 2009, iTunes HD movies could only be purchased from Apple TV.[23][24] Consumers can browse and view podcasts from the iTunes store, saving podcasts as favorites.TWiT's Leo Laporte notes that the podcast support in the Apple TV puts podcasts on the same level as other media,[25] and this was substantiated by the fact that the standard podcast subscription process no longer applies with Apple TV. It is seen by industry experts as changing podcasts to video on demand services.[26] Internet photos can be viewed from MobileMe and Flickr accounts.[18] Apple TV will display the photos in a slide show, with automatic cross-dissolve transitions. The Ken Burns effect can also be configured for transitions.[27] Parental controls allow consumers to limit access to Internet media service content. Internet media is split into 4 categories: "Internet Photos", "YouTube", "Podcasts", and "Purchase and Rental ". Each of the 4 categories is configured by a parental control of "Show", "Hide" or "Ask" to prompt for a 4-digit preset code. In addition, Movies and TV shows can be restricted based on rating as well as explicit music and podcasts.[18] Remote control Apple TV comes with the standard Apple Remote,[6][31] Out of the box, the default setting is unpaired which means any Apple Remote works with the device. Apple TV can optionally be paired with one particular remote to prevent conflicts from other IR-capable devices.[32] The remote control allows for adjustment of playback volume, but for music only.[2][33][34] Because the Apple Remote is a standard infrared remote, mainstream universal remotes have been updated for use with Apple TV and can be used to control volume.[34][35][36] The Apple TV can be programmed to recognize commands from virtually any infrared remote control.[37] On July 10, 2008, Apple released, in the App Store, Remote, a free application that allows for a Wi-Fi-based remote control of the iTunes library on the Apple TV and computers of the Mac line using Apple's line of devices with iPhone OS 2.0 (currently the iPhone and iPod Touch).[38][39] Remote's touch and gesture features are similar to the multi-touch interface used on the iPhone and iPod Touch "Music" app.[40] The commands provided on the AppleTV handheld remote are: "play/pause", "menu", "+", "-", "back", and "next". The "play/pause" button will also send the unit into standby mode when held for approximately 5 seconds, however in newer versions of software you must be in the main menu for this to work. Pressing the menu button multiple times may not consistently get you to the main menu, and it has been mentioned that in certain versions of software pressing and holding the menu button will get you to the main menu directly. If the unit is already in standby then any of the buttons on the remote appear to wake the unit. Page | 36

There appears to be no way to discretely turn ON or OFF the device with any infrared codes or get to any sub-menu (music, movies, pictures, etc). The use of multiple functions for individual buttons or infrared codes is problematic, especially for home automation/control systems and universal remotes. Look and feel

The Apple TV's software is based on Front Row used on Mac OS X. Apple TV presents an interface based on the Front Row software for Mac OS X 10.5 (Leopard) computers. Initially, Apple TV software version 1.0 was based on an enhanced OS X 10.4 Front Row. Apple TVs interface was merged back into OS X 10.5 in late 2007, but since then, major Apple TV enhancements ("Take Two" and later) have not been included in the OS X version of Front Row.[54] Apple TVs Content is organized into six groups (Movies, TV Shows, Music, YouTube, Podcasts, and Photos), and is presented in the initial menu along with a "Settings" options option for Apple TV configuration, including software updates.[55][56] These initial menu options then lead to other submenus.[18] The included Apple Remote is used to navigate through the menus by using the up or down buttons and selecting options with the play button. The left/right buttons are used to perform rewind and fast-forward functions while viewing video content, but also perform previous song/next song functionality when selecting audio-only content.[31] Aside from "Movies" and "TV Shows" content, the "TV Shows" options allows the user to sort contents by show or date and the "Movies" option also allows the user to view movie trailers for new releases, just as the Front Row software does on a Mac. All video content, including movies, TV shows, music videos, and video podcasts, includes bookmark functionality. Apple TV automatically bookmarks video content midstream to continue playback at a later time.[57] The "Music" submenu offers similar options to those found on an iPod, presenting the available music sorted by Artist, Album, Songs, Genres, and Composers, as well as offering a shuffle option and listing available audiobooks. As categories are selected with the remote, animated album art is displayed on the side of the display for the contents of the selected category. While playing "audio-only" content such as music and audio podcasts, Apple TV periodically moves album art and content info on the TV display to prevent burn-in on video displays.[57]

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Content support Content has to be in certain formats to play on the Apple TV.[31] It supports video encoded with either the H.264 video codec for a maximum resolution of 720p (up to 1280x720 pixels) at 25 frame/s or the MPEG-4 video codec for a maximum resolution of 720x432 (432p) or 640x480 pixels at 30 frame/s. Audio can be encoded with AAC (16-320 kbit/s), MP3 (16320 kbit/s, with VBR), Apple Lossless, AIFF, or WAV audio codecs. It also has support for files encrypted with the FairPlay Digital Rights Management technology. For photos it supports the JPEG, BMP, GIF, TIFF, and PNG image file formats.[1] Attempts to sync unsupported content to Apple TV will result in iTunes error message(s) because iTunes supports more formats than Apple TV.[58] Apple TV supports content purchased or rented from the iTunes store on Apple TV itself or from a networked computer running the iTunes software client. Both video and audio-only podcasts are supported and media companies are currently producing Apple TV-compatible video podcasts.[59] Apple TVs audio chip supports 7.1 surround sound,[60] and some High Definition rentals from iTunes are offered with Dolby Digital 5.1 surround sound.[61] Aside from content obtained from Internet media services, Apple included an Apple TV export option in an update to their QuickTime software that was released at the same time as Apple TV. This allows content in some formats that the device does not support to be easily re-encoded into accepted formats for playback on the device.[62] Applications which make use of QuickTime to export media also have access to the Apple TV export option, for example iMovie (from the "Share" menu)[63] and iTunes (from the "Advanced" menu).[64] Some thirdparty content conversion tools also provide Apple TV export options and Macworld has created a guide for using the tools to convert media to Apple TV-compatible formats.[65] Specifications

Rear connectors including power, USB for firmware updates, Ethernet, HDMI, component video and audio, and optical audio.

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Processor

Intel[1] Pentium M 1.0 GHz "Crofton" Processor[3]

Graphics

NVIDIA GeForce Go 7300 (64 MB VRAM)[66]

Memory

256 MB of 400 MHz DDR2 SDRAM[4]

Hard drive

40 or 160 GB hard disk[1][4] •

Connectivity

• • • •

Networking

• •

Output

• • • •

Audio

•

USB 2.0 (officially for diagnostic use only, though hackers have managed to allow connectivity of hard disks, mice, and keyboards)[67] infrared receiver HDMI Component Video.[1] Video and audio cables are not included with Apple TV. 10BASE-T/100BASE-T Ethernet 802.11 b, g, n wireless networking (AirPort)[1] 1080p/1080i 60/50 Hz (but maximum video resolution is 720p)[1] 720p 60/50 Hz[1] 576p/576i 50 Hz (PAL)[1] 480p/480i (480i is unofficially supported) 60 Hz[1][14] digital optical audio

Power

RCA analog stereo audio[1] Built-in universal 48W power supply[1]

Dimensions

197x197x28 mm (7.7x7.7x1.1 in)[1]

Weight

1.09 kg (2.4 lb)[1]

Software Updates[2]

1.1 (June 20, 2007) YouTube integration, slideshow screensaver, parental controls, framework updates, security updates,[68][69] photo priority and browsing other iTunes stores.[70]

•

iTunes 7.3 (June 29, 2007) Apple TV Photo Streaming[71] 2.0 aka "Take Two" (Feb 12, 2008) Standalone iTunes Store features (directly from Apple TV through the Internet): rent standard and HD movies with Dolby Digital 5.1 surround sound, buy TV Shows, music and music videos. Content automatically syncs back to the user's computer. Podcast directory of over one hundred thousand video and audio podcasts. View photos from .Mac and Flickr galleries. Play iTunes content on the audio system connected to the Apple TV via AirTunes,[72] limited Internet radio support,[44][45] show everything or only synced content, TV show display tweaks, iPhoto events, and enhanced parental controls.[42] Page | 39

2.1 (July 10, 2008) Movie Wish List, Support for Remote application, AirTunes receiver, Photo browser, MobileMe protected albums, Podcasts browsable by video and audio, Security fixes.[73] 2.2 (October 2, 2008) HD TV shows, Movie browsing by actor and director, Chapter selection, alternate audio and subtitles, Movie description, Genius playlists, On-The-Go playlists, Music videos in playlists, Apple TV standby mode, Security fixes.[74] 2.3 (November 24, 2008) AirTunes Streaming from Apple TV, Third-party Remote Controls, Playlists, Music Volume Control.[33][34] 2.3.1 (February 25, 2009) Network Test[75] 2.4 (June 24, 2009) Remote app directional control, Flickr Search, New view options, Updated transport and chapter modes.[76] Modifications and hacks Hacks for the Apple TV were available within days of the unit's release. Particular attention was paid to the device's operating system, which had been described by Walt Mossberg before the release as "a modified version of the Mac operating system".[77] Users created solutions for remote access, enhanced codec support, installing a full blown copy of Mac OS X Tiger, USB hard drive access, web browsing, support for enhanced remotes, and the ability to download metadata from the IMDB.[78] The end result was a group of "unofficial" commercial and community-supported add-ons for the Apple TV.[79][80] Apple is not currently preventing users from installing Apple TV modifications, but users are warned that applying hacks may void the product's warranty.[81] The Apple TV system software updates will typically remove any software hacks that are installed. Major ATV hacks are updated on a regular basis and the Apple TV device can easily be re-hacked.[68] Most Front Row plugins are minor and have not been updated to work with Apple TV 2.x. AwkwardTV reports 10 plugins out of 32 have been certified to be compatible with the "Take Two" update.[82] Limitations Functionality Concerns have been expressed about the lack of personal video recorder capabilities on Apple TV.[31][58] Apple TV does not contain a TV tuner, but a tuner and PVR capability can be applied on the connected home computer through a third party. The PVR software will connect to iTunes, enabling scheduled HDTV recordings to automatically appear on Apple TV for playback.[89] One such PVR idea says that Apple should buy TiVo and another mentions that Apple should go a step further and turn Apple TV into a fully-functional cable box.[90][91] Critics against the DVR/TiVo idea mention that the DVR market is dead and call the DVR the "PDA of the living room".[92] Page | 40

Industry experts feel that the Front Row interface is lacking standard iTunes functionality, including rating items, synchronizing from more than one computer,[93] full Internet radio support,[35][92] and games.[94] After the success of the iPhone SDK and the App Store, it has been mentioned that Apple TV should provide the same functionality so that programmers can provide third party applications using Apple TVs interface without having to hack the Apple TV device.[90][92][95] The Movies "Search" feature only searches iTunes Store movies, not search local network movies (i.e. "My Movies").[96] The website Apple TV Junkie was created to "list of all new HD & SD rental titles released on a daily basis", something which the Apple TV interface does not provide today.[97] Movie rentals on iTunes can be transferred to any video-enabled iPod, iPhone or Apple TV for playing, but any movie rented on Apple TV must be watched on Apple TV.[22][98] To copy a movie purchased on Apple TV to a video-enabled iPod or iPhone, the movie must first be transferred to an iTunes-enabled computer on the network.[99] Apple TV/itunes is "not designed" to sync or stream content from networked drives to Apple TV. Content which can be synced or streamed to Apple TV has to be on the local drive or an external drive directly connected to the iTunes-enabled computer. Hardware Apple TV content cannot be used with older televisions, although 480i is unofficially supported as long as the TV supports component video connectivity. RCA/composite video and F/RF connectors are not included on the Apple TV device. Reviewers have noted that Apple is "future-proofing", and "if you do not have HDTV now, you will in the future". The Apple Remote can control volume, but only for Music on Apple TV. Apple TV comes with only a power cable. Apple has teamed up with a third party to provide cables for its customers.[112] A USB port is included on the device, but it is reserved for service use only. The Apple TV device runs "very hot",[35] sometimes reaching 44° C (111° F).[106][113] According to Apple, this is normal.[114] There is no off button or function on the Apple TV (although there is a sleep function) so the only way to cool the Apple TV is to unplug it in sleep mode. Mac Mini comparison Apple enthusiasts seeking an alternative to the Apple TV sometimes consider the Mac mini as a more powerful, albeit more costly, option.[24][115] As a full-featured computer, it lacks the out-of-the-box simplicity and ease of use of ATV. However, once configured for home theater applications, viewers can use the supplied remote control to activate and navigate the Front Row or other media management packages.[116] Advantages include expandable storage, full 1080p video, support for multiple video and audio codecs, a DVD drive, and access to third party media management software like Plex.[117] The Mini remote can also control volume for all applications including video and music.

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As a full featured computer, the Mini can stream content from services like Youtube, Hulu and Netflix, using either a browser or one of several full featured free applications like Boxee, Plex[117] and XBMC. Apple TVs interface includes YouTube support and iTunes store capabilities. The Apple TV must be hacked to add software like Boxee to partly compensate for the lack of browser-based functionality. Since this is not a stock set up, official software updates remove the hack [118] and it could void the warranty. [119] iPhone

The three generations of the iPhone in chronological order. From left to right: original, 3G, 3GS. The iPhone is an Internet-connected, multimedia GSM smartphone designed and marketed by Apple Inc. Because its minimal hardware interface lacks a physical keyboard, the multitouch screen renders a virtual keyboard when necessary. The iPhone functions as a camera phone (also including text messaging and visual voicemail), a portable media player (equivalent to a video iPod), and an Internet client (with email, web browsing, and Wi-Fi connectivity). The first-generation phone hardware was quad-band GSM with EDGE; the second generation added UMTS with 3.6Mbps HSDPA[16]; the third generation adds support for 7.2Mbps HSDPA downloading but remains limited to 384 Kbps uploading as Apple had not implemented the HSPA protocol.[17] Apple announced the iPhone on January 9, 2007,[18] after months of rumors and speculation. [19] The original iPhone was introduced in the United States on June 29, 2007 before being marketed worldwide. Time magazine named it the Invention of the Year in 2007.[20] Released July 11, 2008, the iPhone 3G supports faster 3G data speeds and assisted GPS.[16] On March 17, 2009, Apple announced version 3.0 of the iPhone OS operating system for the iPhone (and iPod Touch), released on June 17, 2009.[21] The iPhone 3GS was announced on June 8, 2009. It was released in the U.S., Canada and 6 European countries on June 19,[3] in Australia and Japan on June 26,[22] and will see international release in July and Aug History and availability Page | 42

Worldwide iPhone sales by quarter. Sales volume is in millions. 3G iPhone 3G and 3Gs

Worldwide iPhone availability: only iPhone 3G and 3Gs

Original iPhone

Original iPhone was available; now 3G

iPhone

iPhone 3G

Development of iPhone began with Apple CEO Steve Jobs' direction that Apple engineers investigate touchscreens.[23] Apple created the device during a secretive and unprecedented collaboration with AT&T Mobility—Cingular Wireless at the time—at an estimated development cost of US$150 million over thirty months. Apple rejected the "design by committee" approach that had yielded the Motorola ROKR E1, a largely unsuccessful collaboration with Motorola. Instead, Cingular gave Apple the liberty to develop the iPhone's hardware and software in-house.[24][25] Jobs unveiled iPhone to the public on January 9, 2007 in a keynote address. Apple was required to file for operating permits with the FCC, but since such filings are made available to the public, the announcement came months before the iPhone had received approval. The iPhone went on sale in the United States on June 29, 2007, at 6:00 pm local time, while hundreds of customers lined up outside the stores nationwide.[1][26] The original iPhone was made available in the UK, France, and Germany in November 2007, and Ireland and Austria in the spring of 2008. On July 11, 2008, Apple released the iPhone 3G in twenty-two countries, including the original six.[27] Apple has since released the iPhone 3G in upwards of eighty countries and territories.[28] Apple announced the iPhone 3GS on June 8, 2009, along with plans to release it Page | 43

later in June, July, and August, starting with the U.S., Canada and major European countries on June 19.[3] Many would-be users have objected to the iPhone's cost,[29] and 40% of users have six-figure incomes annually.[30] In an attempt to gain a wider market, Apple has retained the 8 GB iPhone 3G at a lower price point. This is the latest of several price reductions over the years; it now sells for one-sixth of the price of the original 8 GB iPhone when it first became available. In the U.S., it now costs $99, down from $599, although it includes a twoyear contract and a SIM lock. Apple sold 6.1 million original iPhone units over five quarters.[31] The company sold 3.8 million iPhone 3G units in the second quarter of fiscal 2009, ending March 2009, totaling 21.4 million iPhones sold to date.[4] Sales in Q4 2008 surpassed temporarily those of RIM's BlackBerry sales of 5.2 million units, which made Apple briefly the third largest mobile phone manufacturer by revenue, after Nokia and Samsung.[32] Approximately 6.4 million iPhones are active in the U.S. alone.[30] While iPhone sales constitute a significant portion of Apple's revenue, some of this income is deferred.[4] Regardless, the iPhone has garnered positive reviews from critics like David Pogue[33] and Walter Mossberg.[34][35] The iPhone attracts users of all ages.

Hardware Page | 44

A highlighted view of the proximity and ambient light sensors on the first-generation iPhone.

Rear view of the original iPhone (left) made of aluminum and plastic, and the iPhone 3G, made completely from a hard plastic material.[36]

The proximity and ambient light sensors on the iPhone 3G (shown) are identical to the one on the iPhone 3GS.

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The reverse of the iPhone 3G (left) is almost identical to that of the 3GS, differentiated only by the latter's reflective silver text which now matches the silver Apple logo, replacing the 3G's grey text. Screen and input The touchscreen is a 9 cm (3.5 in) liquid crystal display (320×480 px at 6.3 px/mm, 160 ppi, HVGA) with scratch-resistant glass,[37] and can render 262,144 colors. The capacitive touchscreen is designed for a bare finger, or multiple fingers for multi-touch sensing. Most gloves and styluses prevent the necessary electrical conductivity.[38][39][40][41] The iPhone 3GS also features a new Fingerprint-resistant oleophobic coating. [42] The display responds to three sensors. A proximity sensor deactivates the display and touchscreen when the device is brought near the face during a call. This is done to save battery power and to prevent inadvertent inputs from the user's face and ears. An ambient light sensor adjusts the display brightness which in turn saves battery power. A 3-axis accelerometer senses the orientation of the phone and changes the screen accordingly, allowing the user to easily switch between portrait and landscape mode.[43] Photo browsing, web browsing, and music playing support both upright and left or right widescreen orientations.[44] The 3.0 update added landscape support for still other applications, such as email, and introduced shaking the unit as a form of input.[45][46] The accelerometer can also be used to control third party apps, notably games. A software update in January 2008[47] allowed the first generation iPhone to use cell tower and Wi-Fi network locations trilateration,[48] despite lacking GPS hardware. The iPhone 3G and iPhone 3GS employ A-GPS, and the iPhone 3GS also has a digital compass.[13] The iPhone has three physical switches on the sides: wake/sleep, volume up/down, and ringer on/off. These are made of plastic on the original iPhone and metal on all later models. A single "Home" hardware button below the display brings up the main menu. The touch screen furnishes the remainder of the user interface. The back of the original iPhone was made of aluminum with a black plastic accent. The iPhone 3G and 3GS feature a full plastic back to increase the strength of the GSM signal.[49] The iPhone 3G is available in black with 8 GB of space, and the discontinued 16 GB model was sold in either black or white. The iPhone 3GS is available in both colors, regardless of storage capacity. Audio and output

One of two speakers (left) and the microphone (right) surround the dock connector on the base of the iPhone. If a headset is plugged in, sound is played through it instead. Page | 46

One loudspeaker is located above the screen as an earpiece, and another is located on the left side of the bottom of the unit, opposite a microphone on the bottom-right. Volume controls are located on the left side of the unit and as a slider in the iPod application. Both speakers are used for handsfree operations and media playback. The 3.5 mm TRRS connector for the headphones is located on the top left corner of the device.[50] The headphone socket on the original iPhone is recessed into the casing, making it incompatible with most headsets without the use of an adapter.[51][52] The iPhone 3G eliminates the issue with a flush mounted headphone socket. While the iPhone is compatible with normal headphones, Apple provides a headset with additional functionality. A multipurpose button near the microphone can be used to play or pause music, skip tracks, and answer or end phone calls without touching the iPhone itself. A small number of third-party headsets specifically designed for the iPhone also include the microphone and control button.[53] Apple sells headsets with volume controls, but they are only compatible with the iPhone 3GS.[54] The built-in Bluetooth 2.x+EDR supports wireless earpieces and headphones, which requires the HSP profile. Stereo audio was added in the 3.0 update for hardware that supports A2DP. [45][46] While illicit solutions exist, the iPhone does not officially support the OBEX file transfer protocol.[55] The lack of these profiles prevents iPhone users from exchanging multimedia files, such as pictures, music and videos, with other bluetooth-enabled cell phones. Composite or component video at up to 576i and stereo audio can be output from the dock connector using an adapter sold by Apple.[56] Unlike many similar phones, the iPhone did not support voice recording until the 3.0 software update.[45][46]

Battery

The top and side of the iPhone 3GS, identical to the iPhone 3G. The switches were black plastic on the original model. From left to right, sides: On/off switch, SIM card slot, headphone jack, silence switch, volume controls. Top: speaker, screen. The iPhone features an internal rechargeable battery. Like an iPod but unlike most other cell phones, the battery is not user-replaceable.[51][57] The iPhone can be charged when connected to a computer for syncing across the included USB to dock connector cable, similar to charging an iPod. Alternatively, a USB to AC adapter (or "wall charger," also included) can Page | 47

be connected to the cable to charge directly from an AC outlet. A number of third party accessories (stereos, car chargers, even solar chargers) are also available.[58] Apple runs tests on preproduction units to determine battery life. Apple's website says that the battery life "is designed to retain up to 80% of its original capacity after 400 full charge and discharge cycles",[59] which is comparable to iPod batteries. The original iPhone's battery was stated to be capable of providing up to seven hours of video, six hours of web browsing, eight hours of talk time, 24 hours of music or up to 250 hours on standby.[37] The iPhone 3G's battery is stated to be capable of providing up to seven hours of video, six hours of web browsing on Wi-Fi or five on 3G, ten hours of 2G talk time, or five on 3G, 24 hours of music, or 300 hours of standby.[15] Apple claims that the 3GS can last for up to ten hours of video, nine hours of web browsing on Wi-Fi or five on 3G, twelve hours of 2G talk time, or five on 3G, 30 hours of music, or 300 hours of standby.[60] Storage and SIM The iPhone was initially released with two options for internal storage size: 4 GB or 8 GB. On September 5, 2007, Apple discontinued the 4 GB models.[72] On February 5, 2008, Apple added a 16 GB model.[73] The iPhone 3G was available in 16 GB and is still available with 8 GB. The iPhone 3GS comes in 16 GB and 32 GB variants. All data is stored on the internal flash drive; the iPhone does not support expanded storage through a memory card slot, or the SIM card.

The items included with the iPhone 3G. From left to right: Top of box; iPhone 3G; package with cloth, documentation, and SIM eject tool; headphones, USB cable, and wall charger. The SIM card sits in a tray, which is inserted into a slot at the top of the device. The SIM tray can be ejected with a paperclip or the SIM eject tool included with the iPhone 3G and 3GS.[74] [75] In most countries, the iPhone is usually sold with a SIM lock, which prevents the iPhone from being used on a different mobile network.[76] Software

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The default Home screen of the iPhone shows most of the applications provided by Apple. Users can download additional applications from the App store, create Web Clips, and rearrange the icons. The numeric battery meter is a feature exclusive to the iPhone 3GS, but can also be achieved via the jailbreaking process. The iPhone (and iPod Touch) run an operating system known as iPhone OS. It is based on a variant of the same Darwin operating system core that is found in Mac OS X. Also included is the "Core Animation" software component from Mac OS X v10.5 Leopard. Together with the PowerVR hardware (and on the iPhone 3GS, OpenGL ES 2.0),[3] it is responsible for the interface's motion graphics. The operating system takes up less than half a GB of the device's total storage (4 to 32 GB).[80] It is capable of supporting bundled and future applications from Apple, as well as from third-party developers. Software applications cannot be copied directly from Mac OS X but must be written and compiled specifically for iPhone OS. Like the iPod, the iPhone is managed with iTunes. The earliest versions of iPhone OS required version 7.3 or later, which is compatible with Mac OS X version 10.4.10 Tiger or later, and 32-bit or 64-bit Windows XP or Vista.[81] The release of iTunes 7.6 expanded this support to include 64-bit versions of XP and Vista,[82] and a workaround has been discovered for previous 64-bit Windows operating systems.[83] Apple provides free updates to iPhone OS through iTunes,[80] and major updates have historically accompanied new models.[84] Such updates often require a newer version of iTunes — for example, the 3.0 update requires iTunes 8.2[3] — but the iTunes system requirements have stayed the same. Updates include both security patches and new features.[85] For example, iPhone 3G users initially experienced dropped calls until an update was issued.[86][87]

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Phone

When making a call, the iPhone presents a number of options. The screen is automatically disabled when held close to the face. The iPhone allows audio conferencing, call holding, call merging, caller ID, and integration with other cellular network features and iPhone functions. For example, if a song is playing while a call is received, it gradually fades out, and fades back when the call has ended. The proximity sensor shuts off the screen and touch-sensitive circuitry when the iPhone is brought close to the face, both to save battery and prevent unintentional touches. This iPhone does not support video calling, and the first two models only supported voice dialing through third party applications.[90] Voice control, available only on the iPhone 3GS, allows users to say a contact's name or number and the iPhone will dial. [91] A music ringtone feature was introduced in the United States on September 5, 2007. Users can create custom ringtones from songs purchased from the iTunes Store for a small additional fee. The ringtones can be 3 to 30 seconds long from any part of a song, can fade in and out, pause from half a second to five seconds when looped, or loop continuously. All customizing can be done in iTunes,[93] or alternatively with Apple's GarageBand software 4.1.1 or later (available only on Mac OS X)[94] or third-party tools.[95] Multimedia The layout of the music library is similar to that of an iPod or current Symbian S60 phones. The iPhone can sort its media library by songs, artists, albums, videos, playlists, genres, composers, podcasts, audiobooks, and compilations. Options are always presented alphabetically, except in playlists, which retain their order from iTunes. The iPhone uses a large font that allows users plenty of room to touch their selection. Users can rotate their device horizontally to landscape mode to access Cover Flow. Like on iTunes, this feature shows the different album covers in a scroll-through photo library. Scrolling is achieved by swiping a finger across the screen. Alternatively, headset controls can be used to pause, play, skip, and repeat tracks. On the iPhone 3GS, the volume can be changed with the included Page | 50

Apple Software Mac OS X

Mac OS X (pronounced /mæk oʊ ɛs tɛn/)[3] is a line of computer operating systems developed, marketed, and sold by Apple Inc., and since 2002 has been included with all new Macintosh computer systems. It is the successor to Mac OS 9, the final release of the "classic" Mac OS, which had been Apple's primary operating system since 1984. Mac OS X, whose "X" represents the Roman numeral for "10" and is a prominent part of its brand identity, is a Unix-based operating system,[4] built on technologies developed at NeXT between the second half of the 1980s and Apple's purchase of the company in early 1996. Its sixth and most recent version, Mac OS X v10.5 is certified UNIX 03 while running on Intel processors.[5] The first version released was Mac OS X Server 1.0 in 1999, and a desktop-oriented version, Mac OS X version 10.0 followed on March 24, 2001. Releases of Mac OS X are named after big cats; for example, Mac OS X v10.5 is usually referred to by Apple and users as "Leopard". The server edition, Mac OS X Server, is architecturally identical to its desktop counterpart, and includes tools to facilitate management of workgroups of Mac OS X machines, and to provide access to network services. These tools include a mail transfer agent, a Samba server, an LDAP server, a domain name server, and others. It is pre-loaded on Apple's Xserve server hardware, but can be run on most of Apple's computer models.. Description

Box artwork for Mac OS X. Left to right: Cheetah/Puma (1), Jaguar (2), Panther (3), Tiger (4), Leopard (5), and Snow Leopard (6). Page | 51

Mac OS X is the tenth major version of Apple's operating system for Macintosh computers. Previous Macintosh operating systems were named using Arabic numerals, e.g. Mac OS 8 and Mac OS 9. The letter X in Mac OS X's name refers to the number 10, a Roman numeral. It is therefore correctly pronounced as the number 10 in this context (/tɛn/), though pronouncing the letter "X" (/ɛks/) is a common mistake for users.[3][16] Mac OS X's core is a POSIX compliant operating system (OS) built on top of the XNU kernel, with standard Unix facilities available from the command line interface. Apple released this set of software as a free and open source operating system named Darwin. On top of Darwin, Apple layered a number of components, including the Aqua interface and the Finder, to complete the GUI-based operating system which is Mac OS X.[4] Mac OS X introduced a number of new capabilities to provide a more stable and reliable platform than its predecessor, Mac OS 9. For example, pre-emptive multitasking and memory protection improved the system's ability to run multiple applications simultaneously without them interrupting or corrupting each other.[17] Many aspects of Mac OS X's architecture are derived from Openstep, which was designed to be portable—to ease the transition from one platform to another. For example, Nextstep was ported from the original 68k-based NeXT workstations to x86 and other architectures before NeXT was purchased by Apple,[18] and OpenStep was later ported to the PowerPC architecture as part of the Rhapsody project. Compatibility Software The APIs that Mac OS X inherited from OpenStep are not backward compatible with earlier versions of Mac OS. These APIs were created as the result of a 1993 collaboration between NeXT Computer and Sun Microsystems and are now referred to by Apple as Cocoa. This heritage is highly visible for Cocoa developers, since the "NS" prefix is ubiquitous in the framework, standing variously for Nextstep or NeXT/Sun. The official OpenStep API, published in September 1994, was the first to split the API between Foundation and Application Kit and the first to use the “NS” prefix.[18] Apple's Rhapsody project would have required all new development to use these APIs, causing much outcry among existing Mac developers. All Mac software that did not receive a complete rewrite to the new framework would run in the equivalent of the Classic environment. To permit a smooth transition from Mac OS 9 to Mac OS X, the Carbon Application Programming Interface (API) was created. Applications written with Carbon can be executed natively on both systems. Carbon was not included in the first product sold as Mac OS X, Mac OS X Server (now known as Mac OS X Server 1.x). Hardware For the early releases of Mac OS X, the standard hardware platform supported was the full line of Macintosh computers (laptop, desktop, or server) based on PowerPC G3, G4, and G5 processors. Later versions discontinued support for some older hardware; for example, Panther does not support "beige" G3s[33], and Tiger does not support systems that pre-date Apple's introduction of integrated FireWire ports. Mac OS X v10.5 "Leopard", introduced October 2007, has dropped support for all PowerPC G3 processors and for PowerPC G4 processors with clock speeds below 867 MHz. With the introduction of the MacBook Air and Page | 52

later the "unibody" MacBook, which lack any FireWire ports, Leopard does not require an integrated FireWire port. Safari (web browser)

Safari offers most features common to modern web browsers such as: • • • • • • • • • • • • • • • • • • • • •

Tabbed browsing Bookmark Management A resizable web-search box in the toolbar which uses Google on the Mac and either Google or Yahoo! on Windows Pop-up ad blocking History and bookmark search Text search Spell-checking Expandable text boxes Automatic filling in of web forms Built-in password management via Keychain Subscribing to and reading web feeds Quartz-style font-smoothing The Web Inspector, a DOM Inspector-like utility that lets users and developers browse the Document Object Model of a web page[4] Support for CSS 3 web fonts Support for CSS animation Bookmark integration with Address Book ICC colour profile support Inline PDF viewing Integration with iPhoto photo management Mail integration Ability to save parts of web pages as web clips for viewing on the Apple Dashboard.

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iTunes

iTunes is a proprietary digital media player application, used for playing and organizing digital music and video files. The program is also an interface to manage the contents on Apple's popular iPod digital media players as well as the iPhone. Additionally, iTunes can connect to the iTunes Store via the Internet to purchase and download music, music videos, television shows, applications, iPod games, audiobooks, various podcasts, feature length films and movie rentals (not available in all countries), and ringtones (available only in the USA). It is also used to download applications for the iPhone and iPod touch as long as they are running iPhone OS 2.0 or later.[2] iTunes was introduced by Apple Inc. on January 9, 2001,[3] at the Macworld Expo in San Francisco.[4] The latest version, iTunes 8, was announced at Apple's September 2008 keynote "Let's Rock". iTunes is available as a free download for Mac OS X, Windows Vista, and Windows XP from Apple's website. It is also bundled with all Macs, and some HP and Dell computers. Older versions are available for Mac OS 9, OS X 10.0-10.3, and Windows 2000.

History

SoundJam MP, developed by Jeff Robbin and Bill Kincaid and released by Casady & Greene in 1999,[5] became the basis for iTunes when Apple purchased it in 2000. Apple added a new user interface and the ability to burn CDs, and removed its recording feature and skin support, and released it as iTunes in January 2001.[6] Originally a Mac OS 9-only application, iTunes began to support Mac OS X when version 2.0 was released nine months later, which Page | 54

also added support for the original iPod.[7] Version 3 dropped Mac OS 9 support but added smart playlists and a ratings system.[8] In April 2003, version 4.0 introduced the iTunes Store; in October, version 4.1 added support for Microsoft Windows 2000 and XP.[9] Version 7.0 introduced gapless playback and Cover Flow in September 2006.[10] In March 2007, iTunes 7.1 added support for Windows Vista,[11] and 7.4 marked the end of Windows 2000 support. iTunes lacked support for 64-bit versions of Windows until the 7.6 update on January 16, 2008. iTunes is currently supported under any 64-bit version of Windows Vista, although the iTunes executable is still 32-bit. The 64-bit versions of Windows XP and Windows Server 2003 are not supported by Apple, but a workaround has been devised for both operating systems.[12] The last major update, version 8.0, added Genius playlists, grid view, and a new default visualizer.[13] Features

iTunes includes visualizers. Shown here is the new visualizer in iTunes 8, including black orbs and moving specks of light. iTunes is an application that allows the user to manage audio and video on a personal computer, acting as a front end for Apple's QuickTime media player. Officially, using iTunes is required in order to manage the audio of an Apple iPod portable audio player, although alternative software does exist. Users can organize their music into playlists within one or more libraries, edit file information, record Compact Discs, copy files to a digital audio player, purchase music and videos through its built-in music store, download free podcasts, back up songs onto a CD or DVD, run a visualizer to display graphical effects in time to the music, and encode music into a number of different audio formats. There is also a large selection of free internet radio stations to listen to. Media management iTunes keeps track of songs by creating a virtual library, allowing users to access and edit a song's attributes. These attributes, known as metadata, are stored in two separate library files. The first is a binary file called iTunes Library and it uses a proprietary file format ("ITL"). It caches information like artist and genre from the audio format's tag capabilities (the ID3 tag, for example) and stores iTunes-specific information like play count and rating. iTunes typically reads library data only from this file. The second file, iTunes Music Library.xml, is refreshed whenever information in iTunes is changed. It uses an XML format, allowing developers to easily write applications that can access the library information (including play count, last played date, and rating, which are Page | 55

not standard fields in the ID3v2.3 format). Apple's own iDVD, iMovie, and iPhoto applications all access the library. If the first file is corrupted, iTunes will attempt to reconstruct it from the XML file. Detailed third-party instructions regarding this are documented elsewhere.[17] There have been some concerns, voiced by Mark Pilgrim, that this feature will create an "undocumented binary blackhole" because the recovery from the XML file may not work.[18] Library views

Cover Flow allows users to browse their libraries visually by cover art. iTunes users may choose to view their music and video libraries in one of four ways: as a list, as a list with accompanying album artwork, in Cover Flow (a side-scrolling catalog of album artwork), or in Grid View. The standard list view displays library files with many optional detail fields, including name, artist, album, genre, user rating, play count, and so forth. Item backgrounds alternate between white and a light blue-gray for readability. The list with accompanying album artwork is much the same, only the list is broken up by albums, with the artwork as a header to the list. Although this allows users to browse content more visually, sorting the list view by name will accordingly break up the library into redundant instances of each album. Accordingly, as with Cover Flow view, the second view mode is most appropriate for users who sort their libraries by album. Cover Flow displays all of the user's album art as CD covers in a slideshow format. It sorts the albums into artist, genre, etc. Compilation albums are only shown as a single album cover if the compilation tag for each of the album's tracks is turned on. If the song(s) from the album were imported from a 'mix' CD, the album artwork will be displayed as a default music note pictures. Library sharing A user's iTunes Library can be shared over a local network using the closed, proprietary Digital Audio Access Protocol (DAAP), created by Apple for this purpose. DAAP relies on the Bonjour network service discovery framework, Apple's implementation of the Zeroconf open network standard. Apple has not made the DAAP specification available to the general public, only to third-party licensees such as Roku. However, the protocol has been reverseengineered and is now used to stream playlists from non-Apple software (mainly on the Linux platform).[21] DAAP allows shared lists of songs within the same subnet to be Page | 56

automatically detected. When a song is shared, iTunes can stream the song but won't save it on the local hard drive, in order to prevent unauthorized copying. Songs in Protected AAC format can also be accessed, but authentication is required. A maximum of five users may connect to a single user every 24 hours. The multiple, alternate "View" options normally available to iTunes users including "Cover Flow" are disabled when viewing a shared library over a network. Library sharing was first introduced with iTunes 4.0, where users could freely access shared music anywhere over the Internet, in addition to one's own subnet, by specifying IP addresses of remote shared song libraries. Apple quickly removed this feature with version 4.0.1, claiming that users were violating the End User License Agreement. File format support iTunes 8 can currently read, write and convert between MP3, AIFF, WAV, MPEG-4, AAC and Apple Lossless. iTunes can also play any audio files that QuickTime can play (as well as some video formats), including Protected AAC files from the iTunes Store and Audible.com audio books. There is limited support for Vorbis and FLAC enclosed in an Ogg container (files using the FLAC container format are not naturally supported) or Speex codecs with the Xiph QuickTime Components. Because tag editing and album art is done within iTunes and not Quicktime, these features will not work with these QuickTime components. iTunes currently will not play back HE-AAC/aacPlus audio streams correctly. HE-AAC/aacPlus format files will play back as 22 kHz AAC files (effectively having no high end over 11 kHz), and HEAAC streaming audio (which a number of Internet radio stations use) will not play back at all. The latest version of iTunes (Win/Mac) supports importing audio CDs with the default iTunes standard file format of AAC at 256 kbit/s, but users can choose from 16 kbit/s to 320 kbit/s constant bit rates (CBR) in either AAC or MP3. Importing of audio CDs into MP3 or AAC formats can also be accomplished using variable bitrate (VBR) encoding. However, a double-blind experiment conducted in January 2004 of six MP3 encoders noted that the iTunes encoder came last, in that the quality of the files produced by iTunes was below par. It was stated in the final results that these tests only covered VBR encodings, thus iTunes may have performed better with a Constant bitrate (CBR).[23] File metadata For MP3 files, iTunes writes tags in ID3v2.2 using UCS-2 encoding by default, but converting them to ID3v2.3 (UCS-2 encoding) and ID3v2.4 (which uses UTF-8 encoding) is possible via its "Advanced" > "Convert ID3 Tags" toolbar menu. If both ID3v2.x and ID3v1.x tags are in a file, iTunes ignores the ID3v1.x tags.[25] AAC and Apple Lossless files support Unicode metadata, stored in the MP4 container as socalled "Atoms". The QuickTime plugin that supports the OGG container format has no support for tag editing or album art.[25]

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iTunes uses the Gracenote interactive audio CD database to provide track name listings for audio CDs. The service can be set to activate when a CD is inserted into the computer and an Internet connection is available. Track names for albums imported to iTunes while not connected to the Internet can be obtained during a later connection, by a manual procedure. For any album loaded into iTunes for which there is not an existing Gracenote track listing, the user can choose to submit track name data to Gracenote.[26] Sound processing iTunes includes sound processing features, such as equalization, "sound enhancement" ("sound improvement" in some languages) and crossfade. There is also a feature called "Sound Check" which automatically adjusts the playback volume of all songs in the library to the same level; this is usually called volume leveling or volume normalization. Like "sound enhancement", this can be turned on in the 'Playback' section of iTunes' preferences. Video support On May 9, 2005, video support was introduced to iTunes with the release of iTunes 4.8. Users can drag and drop movie clips from the computer into the iTunes Library for cataloguing and organization. They can be viewed in a small frame in the main iTunes display, in a separate window, or fullscreen. Before version 7 provided separate libraries for media types, videos were only distinguished from audio in the Library by a small icon resembling a TV screen and grouped with music in the library, organized by the same musical categories (such as "album" and "composer"). Originally, movies and TV shows were only available to U.S. customers, with the only video content available to non-U.S. customers being music videos and Pixar's short films. This feature is being extended to other countries as licensing issues are resolved. Playlists In addition to static playlist support, version 3 of iTunes introduced support for smart playlists.[28] Smart playlists are playlists that can be set to automatically filter the library based on a customized list of selection criteria, much like a database query. Multiple criteria can be entered to manage the smart playlist.[29] Any user of iTunes can publish a playlist to the iTunes Store with his or her own preferences, which is called an iMix. Party Shuffle was renamed iTunes DJ in iTunes 8. When iTunes was updated to 8.1 quite a few features were added to iTunes DJ. The free Apple Remote application for the iPhone and iPod Touch was also update at this time that added a new iTunes DJ option in the settings screen when the user is connected to a Wi-Fi network and a new song request feature is enabled in iTunes DJ on the hosts. Along with the song request feature voting on songs in the queue was added, the more votes a song gets the high in the queue it will be and sooner it will be played. Song voting can only be done when song requesting is enabled and in two ways: the first by right clicking on a song in the iTunes DJ queue on the hosts computer in iTunes, the second is in the Remote application ether connected with the iTunes DJ option by a guest or by the host in the full playlist section. When song requesting is enabled a Page | 58

customizable welcome message is displayed below the host's shared library name in the button used to connect to iTunes DJ.[32]

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FINDINGS AND ANALYSIS

Threat of Entry

↓

Threat of Suppliers

→

Level of Threat in an Industry

←

Threat of Rivalry

↑ Threat of Substitutes

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Threat of Buyers

Apple Inc. not only had to face a number of barriers to entry in the development of the iPhone but they must also worry about potential competitors overcoming them as well. Although Apple currently has an advantage with its innovative products it must always be aware of the ease that a competitor can copy its products, especially in the extremely competitive field of cellular phones. However those new companies to the market will not only have to compete with the strong brand that Apple Inc. has built but will also have to face barriers more strenuous then what Apple had to face. 1.Economies of Scale Apple Inc. had an existing experience in manufacturing mass-market consumer electronics devices, many of which share similar components of the iPhone; so Apple Inc. was not negatively affected by this barrier. Since Apple Inc. had the production lines and personnel to make advance electronic products such as, the iPod and their line of computers, it wasn’t difficult to develop a production line capable of mass production of the iPhone. New entrants may not have that comfort as the cell phone market is almost defined by its mass-market environment. A new company entering this market would have one of two choices available: 1) They sell their product at a higher price to make up for the fact they can’t sell the same volume as a company like Apple Inc. and must hope that the consumer sees the higher price as a indicator of better quality. Or 2) They sell their product at a lower price probably occurring a loss per unit in hopes of selling a high volume and banking on sales of applications that can be purchased for the phone. In either situation it is extremely risky as both could lead to the company’s collapse.

2. Access to Distribution Channels Page | 60

Although Apple Inc. has had success with the distribution of its products it does face issues with this barrier due to the limited retailers of the iPhone and the fact that there is currently only one service provider. The iPhone is only available through a limited number of distribution channels those being Apple Inc. and AT&T stores and auction websites, like eBay, and it is only supported by the AT&T network. A future entrant to the market could create an advantage by make their product more available for multiple carriers and multiple retailers. 3. Product Differentiation In general this trait is favorable for Apple Inc. because the iPhone is significantly different than most of its competitors. First and foremost, the iPhone 3G is a revolutionary phone with a high call quality as its main point of parity. A list of the iPhone’s highlighted features includes the iPod, Internet tool (Wi-Fi, 3G and EDGE network). Apple Inc. also has a certain amount of protection through the strength of its brand identity. The problem with cell phones is product differentiation can be emulated, to a certain extent. Cell phones are pretty uniform in functionality and use and not overly differentiated between each other. However, recently LG with Verizon have just release the Dare, an iPhone like product, in hopes of attacking some of Apple’s market share. Not to mention companies like, Samsung and Nokia, have released designs and plans to develop their own versions of an iPhone. 4. Capital Requirements Since Apple Inc. had already been successful with their computers and the iPod they had an advantage with having the capital required to start mass production of a new product. Apple Inc. also has experience with developing software and hardware, which gives them another advantage as they do not need to spend as much time and money in the research and development stages as a new phone manufacturer would. So, to most effectively compete with the iPhone they will need to invest significantly in certain areas. Apple Inc. itself did not face much resistance with this barrier because of their experience creating both software and hardware. Companies looking to enter this market with have difficult barriers to overcome in order to compete at the same level as Apple Inc. and unless a company has experience in developing consumer electronics it seems very unlikely that they can experience similar success. 5. Government Policy Any company looking to enter this market has two governmental factors they must consider before entering the market: 1) the strength of current manufactures patents and 2) the regulatory obligations and approval requirements of the FCC (Apple Insider, 2007), which governs communication technologies in the United States. Apple has gained another advantage by acquiring a patent and FCC approval for the IPhone. This will make it more difficult for competitors to copy the iPhone but we are sure will not stop companies from developing their own versions of this successful product. Page | 61

6. Threat of Substitutes Porter’s five-force model validates that all forms of communication devices threaten the mobile phone industry as a whole. The iPhone’s top priority is to provide its customers with a complete solution in the mobile phone industry with added features and benefits. Quoting Steve Jobs “the original iPhone, it combines three products in one — a revolutionary phone, a widescreen iPod, and a breakthrough Internet device with rich HTML email and a desktopclass web browser” (Steve Jobs, 2008). Examples of substitute industries include landlines, pagers, walkie talkies, computers, fax machines, and snail mail. If the mobile phone industry cannot meet the needs of its customers at a reasonable price, then substitute products play a key threat. Landlines are evolving to be more of a direct competitor to the mobile phone industry, but they still provide its services at a different vantage point. Landlines are non-wireless receivers that are offered at a much lower cost than mobile phones. Computers (notebook and desktop) offer numerous options in the communication sector, which include electronic mail, live chat, and communication software. Collectively, fax, snail mail, pagers, and walkie talkies make up a small portion of the market share, but still pose a threat for unsatisfied customers in the wireless industry. The capacity of the PC market is constantly increasing because of the introduction of new products. Companies are constantly introducing new PCs that are more powerful than the ones already on the market. There were no new entrants worth mentioning, in other words, no new companies have entered the market and got a hold of a significant market share in 2001. One ‘New Entrant’ worth mentioning is a new product from Microsoft, namely Windows XP. Although this product has not been released during the life of the Apple G4 Cube, it has been announced. Customers could decide not to purchase a Mac, but wait for Windows XP instead. 7. Threat of Buyers The buyers market consists of a large amount of individuals or corporations that own one or multiple cell phones. Due to the large market, the lost of a buyer is not a key threat. When a buyer is purchasing a new cell phone, the process at times is overwhelming due to the wide variety of differentiated products. Buyers play an important role in the strategic pricing for a new cell phone because they have no obligations in purchasing a cell phone from a single supplier. Buyer’s spending habits will change accordingly with the economy’s position. For example, if economic profits are high then buyers are willing to spend versus saving their disposable income. Mobile phones have become integrated as a point of parity in the American lifestyle, and economic profits will determine the price a buyer is willing to pay for a cell phone.

8. Threat of Rivalry

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The number of competing firms within the mobile phone industry is increasing, while a few firms make up the majority of the market share. Provided by CNET is a list of suppliers that operate within the same industry as Apple’s iPhone, and a count of their product offerings.

Direct competition includes all mobile phones that can be subcategorized as a basic, smart, camera, mp3, or videophone. The industries large selection of mobile phone manufacturers creates a strong threat of rivalry. The iPhone has made its debut as a smart phone targeting the higher-income demographic, but this does not eliminate the fact that all subcategories of cell phones contribute to the strengthening threat of rivalry. According to CNET Senior Editor Kent German (2008), the editor’s top cell phones include the LG Dare, RIM BlackBerry Curve 8320, Nokia N95, Samsung Instinct, Sony Ericsson W760i, and the newest edition of direct competition comes from Google introducing the T-Mobile G1.

Positioning Map - Smart Phones Blackberr y

Innovative Design Verizon Sony

Dare Google

W760i

G1

Low Price

Apple RIM iPhone Nokia N95 Samsung Instinct

High Price

9. Threat of Suppliers Standard Design Page | 63

There are several suppliers of component parts in the mobile communication industry; therefore, manufacturers are able to make preferable purchasing agreements, allowing their manufacturing cost to then be reduced. The low cost from suppliers puts pressure on manufacturing to in turn pass on the savings to the end consumer. Other suppliers offer specific applications to be used on mobile phones, including the use of digital games (Electronic Arts, 2008). Employees also are a key component as they supply knowledge and expertise to the development of mobile communication products. Without their skills, innovation would be limited, an imperative factor for survival in this industry. Research and development in this industry is vital to the success of a mobile communication product. Suppliers in this industry are fundamental to a product’s successful development and its competitive advantage. Apple has had several suppliers to supply components for its G4 Cube. For example, in a cooperation with IBM and Motorola, Apple developed the PowerPC processor that is used in the G4 Cube. Furthermore Apple uses Graphics Cards from ATi and n VIDIA for implementation in the G4 Cube. Harman Kardon takes care of the sound system for the G4 Cube, and the Cube comes with preinstalled software from Microsoft (Internet Explorer and Outlook) as well (Specification Sheet). All the rest of the components, like the memory or the hard drive come from Other Electronics Suppliers. These components are universal so can be used in any other PC and thus are not exclusive for this product. Because Apple develops his own processor and its own software the soft- and hardware are made foreach other and it is impossible for suppliers to start manufacturing the G4 Cube by themselves bypassing apple. Trends Complexity The Apple G4 Cube is a highly complex device containing many different components and materials. The complexity of this device is also demonstrated by the extra ordinary functions that were added by Apple. Some examples of these functions that make it even more complex than a normal computer can be found \below: ∗ The on/off button is not a normal button working with pressure, but it is a touch-button. ∗ The G4 Cube is a computer without a fan, to avoid the produced sound of a fan. This means the computer has to get rid of the warmth that is produced in a different way. If this does not work, the consumer will not notice it, because he or she will not hear it. ∗ The CD-RW is not a normal drive, but has the effect of a toaster. This means it works vertically instead of horizontally. ∗ The G4 Cube is much smaller than other computers at that time, this meant everything had to be made much smaller which also causes higher complexity. The complexity of this product makes it even more difficult to prevent mistakes. Product Understanding

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The Apple Power Macs are made for professional users. These people want to work on their computer, they want it to be quick and functional. The Power Mac G4 Cube is slightly opposite, because it is made in such a way that people can ‘show’ their computer. They can place it on the table and the appearance becomes as important as the functionality. So the Power Mac G4 Cube is targeted at a slightly different group of consumers as the other Power Macs. The people that were already users of Apple, did not understand why Apple broke their line of products that were so highly functional for their profession. The G4 Cube was made for people who could afford to spent more money for a computer that they could show off with. Once the G4 Cube came on the market, it was seen as a luxury product. At the same time, people could buy a better computer at a different company for the same amount of money. So those who preferred the functionality of Apple, could better spend their money on a different computer instead of buying the G4 Cube with the ‘beautiful appearance’. Globalization The headquarters of the Apple company are situated in California in the United States, but the manufacturing that is done by the company Foxconn takes place in China and Czech Republic. The Apple G4 Cube has only been on the market in the United States of America in the years 2000 and 2001. When looking at other products of Apple, for example the iPod, iPhone or Macbook, they are brought on the market in the US, but it takes a couple of months before the products enter the markets in Europe. It takes even longer for the products to be on the market in Asia and Australia. Because the G4 Cube has been on the market for a year, we can conclude that Apple has delayed the entering in the Europian and Asian Market as a result of disappointing sales. Overall Apple does adjust the price of their products to the local market. This cannot be seen for the G4 Cube, because it did not enter the market globally, but a good example is the iPod which is a little cheaper in the Netherlands than it is in Germany.

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BIBLIOGRAPHY

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1. www.wikipedia.com

2. www.apple.com 3.

India Today

4.

The Times Of India

5.

Economic Times

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