Company Information Slide Apple Inc.

(AAPL) 1 Infinite Loop Cupertino, California 95014-2083 United States Tel: (408) 996-1010 (800)692-7753 Fax: (408)974-2113 Business Manufacturing: Develops, manufactures and licenses computer products and technology for business, education, consumer, science, engineering and government. Services: Developer of computer software. Apple Computer, Inc. - Legal Name NeXT Software Inc. - Merger Apple Pacific - Merger Power Computing Corp. - Merger Apple Computer Inc. - Name Change Silicon Grail Inc. - Merger

Variant Names

SIC Codes

3571 - Electronic Computers 3577 - Computer Peripheral Equipment, Not Elsewhere Classified 7372 - Prepackaged Software NAICS Codes 334111 - Electronic Computer Manufacturing 334119 - Other Computer Peripheral Equipment Manufacturing 511210 - Software Publishers Annual Sales $32,479.00 M Sales, Form 10-K Employees 32,000, Form 10-K Sales/Employees $1,014,968.00 Year Founded 1977 Fiscal Year Sept 30, 2008 SMSA Code 6440 - Portland-Vancouver, OR-WA Features Exporter, Public Company, Headquarters Location Ticker (Stock Exch) AAPL (NASDAQ) CIK 0000320193 URL http://www.apple.com Toll Free Telephone (800)692-7753

Number Email Address Officers

media.help@apple.com Steven P. Jobs - Chief Executive Officer Peter Oppenheimer - Senior Vice President, Chief Financial Officer Philip W. Schiller - Senior Vice President, Marketing Timothy D. Cook - Chief Operating Officer Jerry York - Director Eric Schmidt - Chief Executive Officer Bill Campbell - Chief Executive Officer, Chairman of the Board Arthur D. Levinson - Director Albert Gore, Jr. - Director Millard S. Drexler - Director William V. Campbell Director

Marketing and Sales Slide: -Apple's notebook sales, however, were up 22 percent in November, while Windows sales rose 15 percent. (ExtremeTech.com, Dec 16, 2008 pNA Apple Mac Sales Flat in November; PCs Up) -Apple, based in Cupertino, Calif., said in its most recent earnings report that it actually increased marketing and advertising during the last three months of 2008, compared with the same period a year ago. (The New York Times, Feb 4, 2009 Campaign Wars, Apple Still Has Microsoft's Number.) -During the first nine months of 2008, Apple's ad spending vaulted to $133 million, surpassing Hewlett-Packard and I.B.M.(The New York Times, Feb 4, 2009 Campaign Wars, Apple Still Has Microsoft's Number.) Pull Marketing Strategy ''It wants to bring people into its retail stores and to contrast it to what they already know.'' said Tim Bajarin, president of Creative Strategies and a longtime Apple watcher. Placement: Slide -Apple opened first retailer in China, offering discounts of up to 22 percent -U.S. retailer Best Buy Co earlier this month started selling refurbished versions of Apple iPhone 3G that were priced about $50 less than new ones in an effort to seek new ways to appeal to cost-conscious shoppers. ( ExtremeTech.com, Jan 20, 2009 Apple Discounts Refurbished Products in China.)

-Expanding distribution to Walmart (Business Week, Jan 12, 2009 i4115 p6 APPLE'S BIG PARTNER) Product Information Slide: -The new MacBook, MacBook Pro, and MacBook Air introduced Tuesday by Apple chief executive Steve Jobs have lesser amounts of PVC plastic and brominated flame retardants, or BFRs, than the previous MacBook line. Greenpeace praised Apple's progress, but said it wished the company had gone further and eliminated the dangerous chemicals.( InformationWeek, Oct 17, 2008 -MacBook Praised But Greenpeace Wants Greener Apple; If Apple succeeds in eliminating PVC and BFRs, it will become the first computer maker to do so, laying down a challenge to rivals HP, Dell, Lenovo, Acer, and Toshiba. Competition Marketing Budget and placement in market; Who is the competition?: Slide -Microsoft Corp kicked off a $300 million marketing campaign on Thursday, aimed at improving the image of its Windows Vista operating system and strike back at Apple Inc's "Mac vs. PC" ads. -Despite selling more than 180 million licenses since its launch in 2007, Windows Vista continues to suffer from the perception that the operating system is clunky and hard to use compared with Apple computers. -That image has been stoked by Apple's "Mac vs. PC" ads featuring a geeky and unfashionable PC guy unable to keep up with a better-looking, hip Mac counterpart. Segmented market- Who are Apple Customers? Slide -MetaFacts also found a strong brand loyalty among households with Apple products. More than four in five households with Apple as their primary home PC planned to buy the same brand for their next computer.( InformationWeek, Sept 10, 2008) -The Apple Profile Report 2008 also found that Apple dominated five occupational groups: teacher, artist/designer/performer, management, clerical, and consultants. (InformationWeek, Sept 10, 2008) -Other findings included that Apple's retail stores are attracting many non-Apple households, and that those households tend to have many more children, both strong positive future signs for Apple. -Finally, the survey found that Apple households shop differently than non-Apple households and are more likely to be in a Barnes & Noble or Borders bookstore or in a Target store, and less likely to be in a Wal-Mart store. ()InformationWeek, Sept 10, 2008) Customer Service Slide: -The company scored 85% -Up 7.6 % from customer satisfaction survey (200 companies)

-Among computer makers, the score gave Apple a 10-point cushion over second-place Dell Inc. (The Austin American-Statesman (TX), August 19, 2008 Apple pulls far ahead in customer satisfaction)
Telephone Support Happiness Apple Dell HP Call satisfaction 56% 44% 41% Agent satisfaction 60% 44% 41% Acceptable wait 68% 62% 68% Call resolution 56% 46% 40% Source VocaLabs (Macworld, Feb 2009 v26 i2 p26(1) Satisfaction Calling)

1984 Mac Big Brother Commercial Competition Comparison Marketing Strategy http://www.youtube.com/watch?v=OYecfV3ubP8

2008 Mac vs PC Guy http://www.youtube.com/watch?v=lgzbhEc6VVo

Product Introduction Commercial http://www.youtube.com/watch?v=coM4EkYLfMA&feature=related

http://www.youtube.com/watch?v=75lJGjwJBAM

Placement Slide -Many of China's existing Mac users pay premium prices to resellers for their computers, -But Apples approach seems to be working, with sales growing apace even as the company on Saturday opened its first full-service Apple store in China, in Beijing. Over

the past two years, more Apple resellers have begun popping up in China's sprawling computer malls. (Loretta Chao. (2008, July 23). Apple Steps Up China Retail Push; Beijing Store Marks Effort to Exploit Foothold in Market. Wall Street Journal (Eastern Edition), p. B.2. Retrieved February 18, 2009) Distribution Slide -Apple recently said it has launched an online shop selling second-hand Apple products in China, offering discounts of up to 22% in order to increase its business and market share in the country. -The refurbished products on Apple's Chinese Web site range from a $44) iPod Shuffle to an iMac that costs around $2,050. -Apple has similar deals in the US, UK and Japan, but refurbished products make up a small portion of total sales. (The Online Reporter, Jan 23, 2009 i620 p27(1) Apple sells itself cheaper in China) Pricing Information Apple loses some shine as Mac sales slow; PC maker eschews discounts even as rivals slash prices and consumers pull back; worries for 2009. Market Share Information -Apple is entering households as the second or third home computer. -Apple ranks fifth with 8% of the market. I -In home notebooks alone, Apple is fourth, also at 8% of the installed base. -Apple has steadily gained market share against PCs in recent quarters. -Apple accounted for 8.5 percent of U.S. computer shipments, a rise of 38 percent from a year earlier. (ExtremeTech.com, Sept 5, 2008 Microsoft Launches $300M Windows Campaign.) -The Mac gained more than 2 percentage points of market share in the last year and now controls nearly 10 percent of the overall market for personal computers, ( The New York Times, Feb 4, 2009 Campaign Wars, Apple Still Has Microsoft's Number.) Looking forward ; Whats next for Apple? Slide: Mac Mini (U.S. News & World Report, Dec 16, 2008, Updated Mac Mini May Answer Lagging Apple Desktop Sales.) -Does brand love really exist? -There are computer geeks who sport tattoos of the Apple Inc logo.( Brand Strategy, Dec 10, 2008 p27BRAND LOVE: Do you really love me?)

-Emotional bond -Involuntary responses -Emotional connection