1. Introduction
Apple Inc. is an American multinational corporation with a focus on designing and manufacturing consumer electronics and closely related software products. Headquartered in Cupertino California, Apple develops, sells, and supports a series of personal computers, portable media players, computer software, and computer hardware accessories. Apple also operates an online store for hardware and software purchases, as well as the iTunes Store, a comprehensive offering of digital downloadable music, audiobooks, games, music videos, TV shows, and movies.
The current iPods, Apple's most successful product line.
2. History
Apple was founded on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Jobs approached a local computer store, The Byte Shop, which ordered fifty units and paid US$500 for each unit after much persuasion. He then ordered components from Cramer Electronics, a national electronic parts distributor. Using a variety of methods, including borrowing space from friends and family and selling various items including a Volkswagen bus and a scientific calculator, Jobs managed to secure the parts needed while Wozniak and Ronald Wayne assembled them which led to the birth of Apple I which eventually sold 200 units. The Apple I was sold as a motherboard with CPU, RAM, and basic textual-video chips, not what is today considered a complete personal computer. The user was required to wire the video output pins to a monitor or a TV set. Today, Apple is has worldwide annual sales of over US$19 billion and employs over 20,000 permanent and temporary workers worldwide. Apple is widely regarded as one of the world’s leading companies in technological innovations and branding.
Apple was founded on April 1, 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. Jobs approached a local computer store, The Byte Shop, which ordered fifty units and paid US$500 for each unit after much persuasion. He then ordered components from Cramer Electronics, a national electronic parts distributor. Using a variety of methods, including borrowing space from friends and family and selling various items including a Volkswagen bus and a scientific calculator, Jobs managed to secure the parts needed while Wozniak and Ronald Wayne assembled them which led to the birth of Apple I which eventually sold 200 units. The Apple I was sold as a motherboard with CPU, RAM, and basic textual-video chips, not what is today considered a complete personal computer. The user was required to wire the video output pins to a monitor or a TV set. Today, Apple is has worldwide annual sales of over US$19 billion and employs over 20,000 permanent and temporary workers worldwide. Apple is widely regarded as one of the world’s leading companies in technological innovations and branding.
Current Macs, Apple's line of personal computers.
3. Features
Apple's two main e-commerce businesses are the iTunes Store and the Apple Store (online). The iTunes Store is an online music store that allows users to purchase music and videos online. It is accessed through an application called iTunes which is a digital media player application that plays and organizes music and video files. It is downloaded for free from Apple's website (www.apple.com) and is compatible with most platforms.
Apple's two main e-commerce businesses are the iTunes Store and the Apple Store (online). The iTunes Store is an online music store that allows users to purchase music and videos online. It is accessed through an application called iTunes which is a digital media player application that plays and organizes music and video files. It is downloaded for free from Apple's website (www.apple.com) and is compatible with most platforms.
A screenshot of iTunes, Apple's online music and video store. The Apple Store is an online store that carries all of Apple's product lines as well as selected brands of accessories for shipping worldwide. Products sold include hardware such as Macs, iPods, iPhones, Apple TV, accessories etc and software such as Mac OS X, iLife, iWork etc.
A screenshot of Apple Store (online) that sells most of its product range. 3.1 Business Model
The business model adopt is the (Business to Consumer) model as consumers order their products directly through the online stores and thus sent directly to the customers’ doorsteps. As with iTunes, the music or video bought online will be downloaded directly into the customer’s computer. As Apple’s range of products sold varies widely from personal computers and software to portable media players, Apple do not have a direct competitor in terms of exact product range sold but indirect competitors such as Dell, Creative, Microsoft, HP, Sony, Amazon etc.
The business model adopt is the (Business to Consumer) model as consumers order their products directly through the online stores and thus sent directly to the customers’ doorsteps. As with iTunes, the music or video bought online will be downloaded directly into the customer’s computer. As Apple’s range of products sold varies widely from personal computers and software to portable media players, Apple do not have a direct competitor in terms of exact product range sold but indirect competitors such as Dell, Creative, Microsoft, HP, Sony, Amazon etc.
From an organizational structure point of view, Apple has for a variety of reasons, ranging from its philosophy of comprehensive aesthetic design to its countercultural roots, as well as their advertising campaigns, engendered a distinct reputation in the consumer electronics industry and has cultivated a customer base that is unusually devoted to the company and its brand particularly in the United States.
4. Modes of payment
· Apple Online Store accepts major credit cards such as Amex (American Express), Visa and MasterCard.
· For Singapore’s Apple Online Store, cheques and credit card instalment schemes are allowed through their telesales hotline.
The second option was introduced to accommodate buyers who have no access to credit cards or debit cards, and buyers who prefer their purchase (s) to be stretched over a period of either 12 months or 24 months with interest free payments.
5.1 How to purchase Music (legal) from iTunes.
One can choose to have iTunes add items he/she wants to buy to a shopping cart so he/she can buy and download the purchases when it's convenient. To configure iTunes to use the Shopping Cart for one’s iTunes Store purchases, rather than 1-Click, follow these easy steps:
1. Open iTunes.
2. If using a Mac, choose Preferences from the iTunes menu. If using Windows, choose Preferences from the Edit menu.
3. Click the green Store icon.
4. Select "Buy using a Shopping Cart."
5. Click OK.
· Apple Online Store accepts major credit cards such as Amex (American Express), Visa and MasterCard.
· For Singapore’s Apple Online Store, cheques and credit card instalment schemes are allowed through their telesales hotline.
The second option was introduced to accommodate buyers who have no access to credit cards or debit cards, and buyers who prefer their purchase (s) to be stretched over a period of either 12 months or 24 months with interest free payments.
5.1 How to purchase Music (legal) from iTunes.
One can choose to have iTunes add items he/she wants to buy to a shopping cart so he/she can buy and download the purchases when it's convenient. To configure iTunes to use the Shopping Cart for one’s iTunes Store purchases, rather than 1-Click, follow these easy steps:
1. Open iTunes.
2. If using a Mac, choose Preferences from the iTunes menu. If using Windows, choose Preferences from the Edit menu.
3. Click the green Store icon.
4. Select "Buy using a Shopping Cart."
5. Click OK.
To view the contents of Shopping Cart in iTunes, follow these steps:1. Open iTunes.
2. In the Source pane on the left side of the iTunes window, click on the green iTunes Store icon.
3. If multiple people use this computer, make sure one is signed in to the correct account.
4. If the Shopping Cart icon is not visible under the iTunes Store icon, click the small grey triangle next to the iTunes Store icon to display it.
5. Click the Shopping Cart icon to review the contents.
After adding songs, albums, videos, or audiobooks to the Shopping Cart, he/she may purchase individual selections or the entire contents of your Shopping Cart.
Purchase your entire Shopping Cart
Review your purchases and the total cost carefully. The total cost is displayed to the left of the Buy Now button in the bottom right corner of the Shopping Cart window. When he/she is ready, click the Buy Now button.
Purchase one item at a time from your Shopping Cart
Click the Buy button to the right of the item in the Shopping Cart. To buy multiple items, click the Buy button to the right of each item. Note: One can't purchase multiple items by holding down the shift key.
Remove an item from your Shopping Cart
Click the X to the right of Buy Now. Or, select the item and press the Delete key.
When he/she buys items in the Shopping Cart, they are downloaded into the iTunes library and placed in the Purchased playlist.
Important: All sales are final. Once click to buy the items in your shopping cart, he/she cannot cancel the purchase. His/Her credit card is charged each time he/she clicks the Buy Now button.5.2 How to purchase from Apple Online Store
Review your cartOnce you’re ready to order, select the "View Cart" link in the upper right of any page on the Apple Online Store to review all of the items you’ve placed in your cart. From here you can add or edit gift messaging, gift packaging, and engraving on select products. You can also increase or decrease the quantity you want to purchase. We’ll provide you with an estimated time we expect each item to ship from our facility as well as an estimated total, which will include any shipping charges and taxes. If you update your order, select the "Update Subtotal" button to see an updated estimated order total for your cart.
If there are other items you want to purchase, select the "Continue Shopping" button to add additional items to your existing cart. Or select to "Save for later" and you can come back to view your Saved Cart. When you’re ready to buy the items in your cart, select the "Check out" button.
Sign in - If you already have an Apple Online Store, iTunes, .Mac, or iPhoto account, sign in using your existing Apple ID and password. If you are a new user, create an account by entering in your email address. If you have questions about your Apple ID, password, or account, visit the Your Account section of online Help.
Enter billing and shipping information
In order to process your order, we’ll need you to enter both your billing address and shipping address. Your billing address and shipping address should match the information on your credit card account. We do not accept APO, FPO, PO Box, or international addresses. Shipping addresses for all US orders should be within the 50 states. All your items will be shipped to the shipping address you designate. You will be able to choose your shipping method when you verify your order. Orders over $50 qualify for free standard shipping. Additional costs may apply if you choose expedited shipping. For more information on Billing and Shipping information, visit the Payment & Pricing and Shipping & Delivery sections of online Help.
Select a payment methodTo find out what Payment methods are accepted on the Apple Online Store, visit the Payment & Pricing section of online help. Make sure that your payment method matches the billing information you have entered and that you include the appropriate security code for a credit or debit card. You can also redeem an Apple Gift Card or a coupon to pay for your purchase. Visit the Gifting section of online Help for additional information.
Complete checkout
Once we have all your item, billing, shipping, and payment information, you’re ready to complete check out. Review your order and personal information to ensure it’s accurate, and when you’re ready to purchase, select the "Place my order" button. Once you place your order, we’ll take you to a Thank You page that will contain a summary of your order, including your Web Order Number. Please print this page for your files. We’ll also send you an Order Acknowledgment email once your order has been processed. You’ll receive a Shipment Notification email as each of your items ship. The Thank You Page and emails will contain links to online Order Status. Log in using your Apple ID and password to check order status, cancel items, return items, change your order, track a shipment, print an invoice, and more. You can also view a summary of orders you’ve placed with us in the last 18 months.
6.1 Strengths
I. Apple’s Operating System (OSX) is not as vulnerable to attacks to hackers compared to Microsoft Windows. There are more virus attacks and hackings for Windows in a year than to add up the total number of incidents for OSX since 1997.
II. Shopping can be done 24/7 without any hassles. There is no need to queue up to have a chance to ‘search and experience’ for Apple’s product. On Apple website alone, they include video tutorials on ‘How to use’ and what functions to be expected.
III. Shipping is free for orders above S$50. As most of Apple’s products are priced higher than the free shipping criteria, there is no worry to top up with impulse and unnecessary buying to ‘top up’ for the differences.
IV. Online helpdesk is available 24/7 for nocturnal humans who like to shop in the silence of the night. The specifications of the products are much clearer and there is no pressure by salesperson to purchase the products after much sales talk.
V. Available on Apple.com, are the reviews done by buyers – after sale reviews. This is enough to prep potential buyers what to expect for their new toy.
VI. Ever since the launch of Ipods, there are a lot of big and small brands trying to ride on the fame of Ipods by selling accessories speakers, skins, protectors, earphones and an external radio transmitter. Big names to name a few; Bose, Philips, Nike and JBL. Even Microsoft had created Microsoft Office for one of Apple’s operating system, talk about competition.
Here is the Top 10 Reasons why Amazon recommends people to switch to MacIntosh. Not convince? Click here.
6.2 Weaknesses
i. Buyers might run a chance to leak their credit card information if the computer that they used to purchase from Apple Online Store is poor in security.
ii. Time lag between purchase of product and arrival of products. Usually take about 7 to 10 working days.
iii. Prices are slightly on the high side. Though pricey, there are still a steady flow of loyal customers, ready to pounce on any newly launch products.
iv. Apple iTunes store is only available in the United States of America so far. Making the purchase of music impossible for other fans in other countries.
v. There is still a lot of window-based software which are not available for the use of Apple’s operating system. Most of computer users are grown up with a Microsoft based system, therefore asking some to switch to Apple is akin to asking them to eat roaches.
7. Competitors
A lot of big name corporations are uneasy of how an Apple product sells with very minimal spending on advertising dollars, as compared to their own. Singapore’s very own Creative Technology founder, Sim Wong Hoo has once mentioned at the launch of one creative product that he wanted to overtake Apple’s market share in the portable music player industry. In 2006, Creative Technology sued Apple for alleged infringement of a product’s patent in the United States. While the case was ongoing, Creative Technology market share price plummet. Here, for the notable litigation of Apple.
Apple’s branding has have been quoted as being ‘a brand which sells by itself’. Frankly in Singapore, we hardly see any radio commercial, much less mentioned for television commercial. Kudos to Steve Jobs for his creative lifetime creation.
