Annexure-I

BBA programme

Term– I

Group Assignment
APPLE

Submitted to
Dr. Hrudanand Misra

On
(11/12/2021)

Submitted by

Roll No. Name

217106 Aditya Mehta

217107 Aditya Maheshwari
217109 Animesh Pratap Singh
217110 Aniruddha Ramaswamy
 INDEX

Sr. Topic Page no

No
1. Index 1
2. Introduction 2-4
3. The type of market Apple operates in 5
4. Competition 6-8
5. Sales and revenue of Apple 8-10
6. Factors influencing iPhone Demand and 11-14
Supply
7. Economic concepts 15-16
8. References 17
9. Team Contribution 18
10. Undertaking 19

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 INTRODUCTION

https://www.youtube.com/channel/UCGMcVCg3tHKmy9oaUCIw8xw

Apple Inc. is an American Multinational Technological Company which was started by Steve
Jobs, Steve Wozniak and Ronald Wayne in 1976 to sell computers designed and hand built by
Wozniak. It was absolutely started as a computer company but now specialises in consumer
electronics, computer software and online services.
Jobs sold his only mode of transportation, a VW Microbus, for a few hundred bucks, and Wozniak
sold his HP-65 calculator for US$500 (equivalent to $2,274 in 2020) to help fund its construction.
In July 1976, Wozniak demonstrated the first prototype at the Homebrew Computer Club. The
Apple I was launched as a motherboard with a CPU, RAM, and basic textual-video chips. It went
on sale for US$666.66 (equivalent to $3,032 in 2020) shortly after its launch. Wozniak later
disclosed that he was unaware of the number 666's coincidence , and he came up with the price
because he liked "repeating numerals."
From January 3, 1977, Apple Computer, Inc. continued their operations without Wayne, as he had
left and sold his portion of the firm to Jobs and Wozniak for $800 only twelve days after
co-founding Apple. multimillionaire Mike Markkula provided business advice and $250,000 in
money to Jobs and Wozniak. Revenues expanded at an exponential rate over the first five years of
operation, doubling every four months on average. Annual sales increased by 533 percent between
September 1977 and September 1980, rising from $775,000 to $118 million.
It is now the world’s most valuable firm and the largest IT company in terms of revenue which
was $274.5 billion in the year 2020. In terms of unit sales Apple is the fourth largest PC seller and

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also the fourth largest Smartphone Manufacturer. It is currently part of the big five American IT
corporations along with Amazon, Google (Alphabet), Facebook (Meta), and Microsoft.

➢ How Apple got its Name and Logo?

● Steve Jobs said that his visit to an apple farm while on a fruitarian diet inspired the
company's name and he thought the name "Apple" was fun, spirited, but not scary.

Sir Isaac Newton is pictured under an apple tree in Apple's original logo which is
designed by Ron Wayne. Rob Janoff's "rainbow Apple," a rainbow-colored
silhouette of an apple with a bite cut out of it was almost about to replace the
original logo. He presented numerous monochrome logo themes for the "bitten"
logo to Jobs and he liked them but on the other hand he insisted that the emblem
should be coloured in order to humanise the brand. To avoid being confused with a
cherry, the logo was designed with a bite. The coloured stripes were added to make
the emblem more visible and to highlight the Apple II's ability to generate colour
graphics. This logo is frequently misinterpreted as a memorial to Alan Turing, with
the bite mark referring to his suicide technique but this rumor was denied by both
Janoff and Apple.

➢ How they Rose to Fame -

● Advertising :- The marketing strategies of Apple were aggressive towards the
customers they were targeting which helped them rise to fame in a short span. They
are renowned for its efforts in successful advertising and promotion for its products
since the introduction of the Macintosh in 1984, with the 1984 Super Bowl
campaign, to the more recent Get a Mac advertisements. Mainly because of their
eye-popping graphics and appealing soundtracks, Apple's product advertising drew
a lot of attention. Canadian artist Feist, whose song "1234" was used on Apple ads,
and Israeli singer Yael Naim, whose song "New Soul" was featured on Apple
advertisements, both profited from an elevated profile as a result of their songs
being featured on Apple advertisements. There were various slogans used like
“Byte into an Apple”,”Think Different” and “iThink, Therefore iMac” and many
more.

● Through Sites & YouTube :- Apple has a YouTube channel where they post
advertising, tips, and device debuts. Apple also has its own generic top-level
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 domain,.apple, which was assigned on October 27, 2015. In 2018,
"experience.apple" was a significant use of the domain as part of a marketing push
to promote the iPhone XS and iPhone XS Max. Users could rotate their device to
view a 3D model of the iPhones on the site, which had 3D capabilities.

● Brand Semiotics :- Semiotics is the study of how symbols and signs acquire
meaning, and it can help you better understand brand management and loyalty. A
Swiss linguist and semiotician named Ferdinand de Saussure developed a semiotic
model that distinguishes two aspects of a sign: the signified and the signifier. The
signified is the concept to which the sign refers, whereas the signifier is the
perceptual component that we physically perceive. The sign, according to
Saussure's paradigm, arises from the association of a sound or object with a notion.
The Peircean Paradigm is the second widely used semiotic model. A logician was
Charles Sanders Pierce. His model, like Saussure's, focused on the link between
sign and object parts. The symbolic meaning that a brand conveys can influence
how a customer "remembers, internalises, and responds" to a company's
performance. There is plenty of evidence to suggest that if a company does not
maintain track of how its brand evolves in response to media culture, it will quickly
fail. Semiotic research can be used to assist a firm relate to their customers' culture
over time and differentiate their brand in competitive markets.
Apple Inc. is well-known for being a forward-thinking firm that challenges the
status quo and accepted norms. The signified is an apple, but with a bite cut out of
it, according to Saussure's semiotic model. Apple is viewed as a disruptor in the
industry. From a technical perspective, the bite's semiotics and the colour of the
logo can be examined. The signified is the bite, and the signifier is the computer
storage unit, the byte. The logo's rainbow colour conveys the impression that its
computer monitor may be capable of producing colour graphics.

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 The Type of Market Apple Operates In

Apple Inc. fits within a variety of market configurations, including oligopoly and monopolistic competition. In
the competitiveness of smartphone brand announcements, Apple Inc. maintains an oligopoly market structure,
although Apple Inc. is recognised for monopolistic competition in branded PCs. Monopolistic competition
occurs when a large number of vendors
provide highly differentiated goods.
Monopolistic competition, also known as
monopsonistic competition, is a type of
monopolistic rivalry. Monopsonistic
competition illustrates how monopolistic
rivalry on the supply side appears to be
parallel and peer to monopolistic competition
on the demand side.
According to some economists, monopolistic
competition is more plausible than ideal
competition since competitors' products are
heterogeneous (non-homogeneous). Imperfect competition does not follow the same rules and regulations as
perfect competition. In this imperfectly competitive market, the entity has the luxury of increasing the price in
order to maximise profits. Apple Inc. is a company that sells technology that is not identical to anything else
on the market. This allows them to compete successfully and efficiently in the market.

Monopolistic competition, as opposed to oligopoly, has more competitors, hence Apple's "super tablet"
computer is considered a monopolistic competition. Many other branded computer firms, like Samsung, HTC,
and Dell, are fierce competitors in the international mobile and tablet computer market. Such competitive
enterprises earn sales revenue that is near enough to Apple Inc. to keep them competitive. As the name
implies, this is a competitive industry with flaws.

Apple's I stands for "innovative technology." The company's iPhone has caused a major impact in the market
for cell phones and mobile, tablet computers since its release. The iPad tablet computer, which is one of its
most popular products, has been another dramatic change in the technological sector. In recent years, it has
been claimed that Samsung is a significant competitor to Apple Inc., with which it has a rivalry. Many
economists believe Samsung will dethrone Apple Inc. and take over as the world's most powerful firm in the
current era of technology.

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 COMPETITION
Apple works in one of the quickest developing enterprises on the planet. The fast business development has
drawn in a lot18 of other market players throughout the long term, which thus has expanded the danger of
rivalry for Apple. Before you begin to compose an exposition on Apple and its opposition, you must
comprehend that this organization cooks in various item classes. Accordingly, Apple faces competition from
one industry as well as from a wide range of businesses together. In any case, its solid spotlight on
advancement and undying responsibility towards better client experience has permitted Apple to conquer its
serious dangers and make authoritative progress.

Apple Competitors
As referenced before, Apple provides food in various item classes, like savvy cell phones, PCs,
smartwatch, advanced administrations, and so on Allow us to check out the essential rivals in
every one of these areas.

Smartphone Sector
● Samsung
Samsung is one of the key parts in the cell phone area. This Korean organization is one of
the best three cell phone makers on the planet. The organization rivals Apple's iPhones
with its top-level cell phones and tablets. Both the organizations try to offer practically
indistinguishable incentives at a similar value section, consequently making the opposition
more serious.
● Xiaomi
Xiaomi is the main cell phone saling and third greatest cell phone producer in the
business. The organization looks to draw in the clients by offering most ideal
highlights at costs a lot of lower than that of the contenders. Not at all like Apple, Xiaomi
is more disposed towards the mass market purchasers, who search for items with higher
incentive for cash.
Personal Computing Sector
● Dell
Dell stands firm on the third footing in the PC market. This is another American, global PC
fabricating organization which additionally offers windows-based workstations to a wide
scope of clients.

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 Every one of these makers rival Apple's Mac line up of individualized computing gadgets
gadget with their top of the line items.
● Microsoft
Microsoft is known for its PC working framework and is the most seasoned opponent of
Apple. Apple and Microsoft contend with one another in the field of PC working
frameworks. In any case, this opposition has as of late become more serious as Microsoft
has begun to present its own PC equipment as its Surface line up of versatile registering
gadgets.
Smartwatch Sector
● Samsung
The opposition among Apple and Samsung is additionally conveyed forward to the
smartwatch area. Samsung rivals Apple Watch with its own line of smartwatches, which offers
practically indistinguishable utilities, for example, wellness following, pulse checking, calories
counts, and so forth The smartwatches of Samsung are accessible at essentially lesser cost than
that of Apple.
● Fitbit
The American organization is perceived for its wrist mounted wellness trackers. They are
not undeniable smartwatches, however they offer specific utilities of wellness tracking
such as carbohydrate level, strides, pulse, and so on Fitbit can be considered as a circuitous
contender to Apple Watch.
Digital Services Sector
● Spotify
Spotify is a web-based music web-based feature organization, which works universally to
different business sectors. It contends with Apple Music, by offering indistinguishable
administrations and estimating procedures. Every one of these brands attempt to separate
by offering more worth to the customers, through better algorithmic expectation of music
inclination, better organized playlists and elite substance.
● Google
Google has as of late began to contend with Apple against its gaming membership
administration called Apple Arcade. Following the presentation of Apple Arcade, Google
has additionally declared comparative help called Google Play Pass. Since, both of the
propositions are indistinguishable administrations, they have become serious to one
another.

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To Sum it Up
As we have observed, Apple faces competition from many fronts. Its enhancement into different
classes of innovation based item and administration classifications has presented the organization
to extreme competitors from different market players. While you are distinguishing Apple
contenders for your school paper, you should initially recognize all the item classifications that the
organization bargains in. Every one of these areas will have its individual market players
presenting serious dangers to Apple.

So, the 5 Key competitors for Apple are:

1. Samsung
2. Xiaomi
3. Microsoft
4. Google
5. Fitbit

Sales of iPhone

https://www.statista.com/statistics/276306/global-apple-iphone-sales-since-fiscal-year-2007/

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The following graph shows the sales of iPhone from 2007 to 2018. As we can see, the graph
increases from left to right. But, in the year 2015, we can observe that sales reached 231.22
million,
which is a great boost for the company. In 2019, the sales reduced to 187.2 million. In 2020, the
sales were 196.9 million. The decline is due to the fact that in China, the competition of Xiaomi
and Huawei increased.

Apple's other products' success

Apart from the iPhone, which is Apple's most profitable product, Apple is also the creator of
several other consumer electronics . The Mac computer and the iPad, like the iPhone, are both
market pioneers that have helped promote the usage of PCs and tablets. The iPad has been
extremely successful, remaining the top provider in the tablet industry since its introduction. The
Apple Watch, a range of smartwatches with fitness tracking features that can be combined with
other Apple goods and services via iOS, is unquestionably the trendiest new Apple device. Since
its first launch, the Apple Watch has also maintained a lead over rival smart watch suppliers,
capturing over half of the market.
Apple’s revenue from 2006 to 2021

Year Revenue

2006 $19.1 billion

2007 $24.4 billion

2008 $37.4 billion

2009 $42.7 billion

2010 $65 billion

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 2011 $108 billion

2012 $156.3 billion

2013 $170.8 billion

2014 $182.6 billion

2015 $233.6 billion

2016 $215.4 billion

2017 $229 billion

2018 $265.4 billion

2019 $260.1 billion

2020 $274.3 billion

2021 $365.8 billion

https://www.businessofapps.com/data/apple-statistics/

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 Factors Influencing iPhone Demand and Supply

Effect on iPhone’s Demand due to reduction in price

https://studycorgi.com/iphone-markets-supply-and-demand/

The above graph shows a kinked demand curve of iPhone. The demand is elastic at first because
there are few suppliers, thus a change in price has a large impact on demand. As a result, if
smartphone prices are cut, it is believed that demand would rise significantly, resulting in the
arrival of more smartphone manufacturers. After a while, more suppliers enter the market, and
prices become inelastic, such that price changes have little effect on demand. In the end, prices
become sticky because suppliers are unable to modify their pricing, and if they do, demand drops
significantly.

Effect on iPhone’s Demand due to advertising

Advertising is one of several factors that influence a commodity's or service's demand. This is due
to the fact that it is intended to raise market awareness of the product or service. Apple Inc.
announces a new iPhone commercial campaign. As a result, the iPhone's demand is likely to rise.
Increased demand for the iPhone will cause the company to raise its price as a result of the
scarcity that would occur if supply remains constant. This is seen in the diagram below.

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 https://studycorgi.com/iphone-markets-supply-and-demand/

The diagram depicts how iPhone advertising causes demand to move from point D1 to the new
point D2, resulting in a product scarcity caused by increasing demand from q1 to q3.

Effect on iPhone’s Supply due to technological development

Technological developments are predicted to bring various benefits, including decreased product
manufacturing costs, increased product efficiency, reduced production time, and better function
ability. Technological improvements will have an impact on iPhone supply. Apple Inc. will create
more iPhones as the cost of production of the iPhone decreases owing to new technology.
Because Apple would not have maintained market demand for the iPhone, it will be compelled to
lower the price of the iPhone in order to clear the market glut. This is seen in the diagram below.

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 https://studycorgi.com/iphone-markets-supply-and-demand/

The graph illustrates the supply curve changing from point S to S1 to the right, resulting in a new
point of equilibrium with new quantities demanded and price.

Effect on iPhone’s Demand due to income

The iPhone is one of the most costly devices on the smartphone market. The cost is so expensive
that it is classified as a luxury item. Most of the time, it is purchased by people with a high income
who can buy the goods. People with ordinary and low incomes are unable to get an iPhone since
such high-priced smartphones involve opportunity costs in which vital things must be ignored.
Thus, income is important in influencing customer purchasing power, which in turn affects
product demand.

https://studycorgi.com/iphone-markets-supply-and-demand/

The diagram above illustrates an increase in demand from D1 to D2 as income rises. This is seen
as a rightward change in the demand curve.

Conclusion
As can be seen from the foregoing analysis, there are a number of factors that might influence
market demand and supply for the iPhone. Some of the stated causes move or modify the demand
curve, while others shift or change the supply curve. Regardless of the path followed by the
iPhone market's demand and supply curves, it is necessary to keep in mind that any deviation from
the normal condition of market elements will result in a change in the product's market.

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 Economic concepts

● Demand - Demand is an economic concept that refers to a consumer's desire to buy

products and services as well as his or her willingness to pay a price for a certain
commodity or service. If all other variables remain constant, a rise in the price of a good or
service reduces the quantity demanded, and vice versa.

● Demand curve - The demand curve is a graphical representation of the relation between
a good's or service's price and the quantity demanded over a specific time period. A
common representation will show the price on the y-axis and the quantity demanded on the
x- axis.

● Price elasticity of demand - Price elasticity is the degree to which people, customers,
or producers adjust their demand or the amount provided in response to price or income
changes in business and economics. When the value of elasticity is more than 1.0, it
indicates that a change in the price has a greater than proportionate effect on the demand
for the item or service. A number less than 1.0 indicates that demand is relatively price
insensitive, or inelastic.

● Cost of production - The cost of production is defined as the expenditures paid to get
the production components such as labour, land, and capital required in the manufacturing
process of a product.

● Advertising - Advertising is a method of communicating with customers who utilise a

product or service. Advertisements are communications that are paid for by those who
send them and are meant to inform or influence those who receive them. Advertising plays
an important part in the economy since it informs customers about product and service
options while also comparing features, advantages, and pricing.

● Market - Market refers to a place where two or more parties meet to exchange goods and
services and transaction takes place. The two parties are known as buyers and sellers.
● Oligopoly - An oligopoly is a market arrangement in which only a few enterprises can
prevent the others from exerting considerable influence. The concentration ratio is a
measure of the largest companies' market share. The number of firms in an oligopoly has
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 no definite upper limit, but it must be small enough that the activities of one firm have a
considerable impact on the others.
● Monopolistic Competition - Monopolistic competition describes an industry in
which a large number of enterprises compete for the same (but not identical) products or
services. In a monopolistic competitive industry, entry and exit barriers are minimal, and
one firm's decisions have little impact on its competitors. Monopolistic competition is
intimately linked to the brand differentiation business strategy.

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 REFERENCES

● Introduction
http://apple2history.org/appendix/ahb/ahb2/
https://www.linkedin.com/pulse/story-behind-brand-apple-inc-mohamme
d-almheiri
● Type of market apple operates in
https://www.ukessays.com/essays/economics/market-structure-of-competi
tive.php
● Competition
https://penmypaper.com/knowledge-base/apple-competitors
● Demand and Supply
https://studycorgi.com/iphone-markets-supply-and-demand/

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 TEAM CONTRIBUTION

● INTRODUCTION - Aditya mehta (217106)

● HOW APPLE ROSE TO FAME - Aditya mehta (217106)
● TYPE OF MARKET IT OPERATES IN, - Animesh Singh (217109)
● COMPETITION ( 5 competitors), - Aditya Maheshwari (217107)
● SALES AND REVENUE OF APPLE - Aniruddha Ramaswamy (217110)
● FACTORS INFLUENCING DEMAND AND SUPPLY - Aniruddha Ramaswamy
(217110)
● ECONOMIC CONCEPTS. - Everyone

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UNDERTAKING

This is to certify that the research submitted by us is an outcome of our original work. We have
duly acknowledged all the sources from which the ideas and extracts have been taken. The project
is free from any plagiarism and has not been submitted elsewhere for publication.

Group 2

FYBBA Div - A

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