Description
The object of this report is to analyze the sales pattern of the iPad and forecast it’s sales in future for the years.
A Project Report On
Apple’s iPad
In Managerial Economics
Submitted To:
Dr. Paroma Mitra Mukherjee (Faculty Managerial Economics)
Submitted By:
Rohit Varshney (2K12B40)
ASIA-PACIFIC INSTITUTE OF MANAGEMENT (JASOLA, NEW DELHI)
ACKNOWLEDGEMENT
I would like to take this opportunity to express my gratitude towards all those people who have, in various ways, helped in the successful completion of our project. At the outset, I would like to thank faculty of Business Communication Dr. Paroma Mitra Mukherjee for giving me the opportunity and means to undertake this project. I am grateful to my guide, Dr. Paroma Mitra Mukherjee for her valuable guidance, encouragement, inspiration and sharing of knowledge and insights in making this report. This project would have been impossible without her support and guidance.
Rohit Varshney
2
Table of Contents
Table of Contents............................................................................................3 Introduction.....................................................................................................4
Objective.........................................................................................................................4 About iPad......................................................................................................................4 Limitations......................................................................................................................4
Literature Survey.............................................................................................4 Methodology...................................................................................................5
Company Profile............................................................................................................5 Study Period...................................................................................................................5 Types of Data Used........................................................................................................6 Primary Data:...............................................................................................................6 Secondary Data:...........................................................................................................6 Tools Used for Analysis.................................................................................................6 Ratio-To-Moving-Average..........................................................................................6
Descriptive Analysis.......................................................................................6 Statistical Analysis..........................................................................................7
Time-Series-Analysis.....................................................................................................7
Conclusion.......................................................................................................9
3
Introduction
Objective
The object of this report is to analyze the sales pattern of the iPad and forecast it’s sales in future for the years.
About iPad
The Company’s iPad is a multi-purpose mobile device for browsing the Web, reading and sending e-mail, viewing photos, watching videos, listening to music, playing games, reading e-books and more. iPad is based on the Company’s Multi-Touch technology and allows customers to connect with their applications and content in a more interactive way. iPad allows customers to access the iTunes Store to download audio and video files, as well as a range of other digital content and applications. In March 2011, the Company introduced iPad 2, its second-generation iPad.
Limitations
1. Primary data of the sales figure was not available from the company. 2. Exact prediction can not be made as market is full of competition. 3. Technology in today’s time become obsolete very soon hence iPad existence in 2020 is question with no answer.
Literature Survey
Seasonal variation is defined as respective and predictable movement around the trend line in one year or less. In order to detect seasonal variation, time intervals must be measured in small units, such as days, weeks, months, or quarters. We have three main reasons for studying seasonal variation: 1. We can establish the pattern of past changes. This gives us a way to compare two time intervals that would otherwise be too dissimilar. If a flight training school wants to know if a slump in business during December is normal, it can examine the seasonal pattern in previous years and find the information it needs. 2. It is useful to project past patterns into the future. In the case of long range decisions, secular trends analysis may be adequate. But for short run decisions, he ability to predict seasonal fluctuations is often essential. Consider a wholesale food chain that wants to maintain a minimum adequate stock of all items. The ability to predict short range patterns, such as demand for turkeys at Thanksgiving, candy at Christmas, or peaches in the summer, is useful to the management of the chain. 3. Once we have established the seasonal pattern that exits, we can eliminate its effects from the series. This adjustment allows us to calculate the cyclic variation that takes place each year. When we eliminate the effect of seasonal Variation from a time series, we have deseasonalized the time series.
4
Methodology
Company Profile
Apple Inc. (Apple), incorporated on January 3, 1977, along with its subsidiaries, is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. It also sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It also sells and delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store. During the year ended November 24, 2011, the Company, as part of a consortium, acquired Nortel Networks Corporation’s patent portfolio. In February 2012, the Company acquired app-search engine Chomp. The Company operates in five segments: Americas, Europe, Japan, Asia-Pacific and Retail. The Americas segment includes both North and South America. The Europe segment includes European countries, as well as the Middle East and Africa. The AsiaPacific segment includes Australia and Asia countries, other than Japan. The Retail segment operates Apple-owned retail stores worldwide. The Company offers a range of mobile communication and media devices, personal computing products, and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions and third-party hardware and software products. In addition, the Company offers its own software products, including iOS, the Company’s mobile operating system; Mac OS X, the Company’s operating system software for the Mac; server software and application software for consumer, SMB, and education, enterprise and government customers. AppleCare offers a range of support options for the Company’s customers. These options include assistance that is built into software products, printed and electronic product manuals, online support, including product information, as well as technical assistance, and the AppleCare Protection Plan (APP). APP is a fee-based service that includes two to three years of phone support and hardware repairs, dedicated Web-based support resources, and user diagnostic tools.
Study Period
The company launched its highly ambitious multi-touch sensitive device in April 2010. Hence the study on sales aspect of the device has been carried out for duration of two Indian financial years (April’10-March’12) although data has been accounted for entire international sale of the device.
5
Types of Data Used
Primary Data:
The best primary data about sale of a device of company a person can get is through marketing department of that company. Since no company reveals its exact sales figure in terms of quantities hence primary data has not been focused upon.
Secondary Data:
Secondary source of the data gathered is the Internet. The source does not include any data through Wikipedia.
Tools Used for Analysis
Ratio-To-Moving-Average
In order to measure seasonal variation, we typically use the ratio-to-moving-average method. This technique provides an index that describes the degree of seasonal variation. The index is based on a mean of 100, with degree of seasonality measured by variations away from the base. For example, if we examine the seasonality of canoe rentals at a summer resort, we might find that the spring-quarter index is 142. The value 142 indicates that 142 percent of the average quarterly rental occurs in the spring. If management recorded 2,000 canoe rentals for all of the last year, then the average quarterly rental would be 2000/4=500. Because the spring-quarter index is 142, we estimate the number of spring rentals as follows:
Spring-quarter index
Average quarterly rental
500*142 = 710 100
Seasonalized spring-quarter rental
Descriptive Analysis
The following sales data were gathered through primary and secondary source:
6
Month & Year June’10 Sep’10 Dec’10 Mar’10 Jun’11 Sep’11 Dec’11 Mar’11
Table 1
Unit Sold(Millions) 3 4.5 7.3 4.2 6 7 18 17
Statistical Analysis
Time-Series-Analysis
Step1: 4-Quarter Moving Total (4) Step 2: 4-Quarter Moving Average (5)=(4)/4 Step 3: 4-Quarter Centered Moving Average (6)
Year (1)
Quarter (2) I II
Occupancy (3) 3 4.5
2010 III IV I II 2011 III IV 18 17 7.3 4.2
19 22 24.5 6 35.2 7 48
4.75 5.125 5.5 5.81 6.125 7.46 8.8 10.4 12
7
8
Conclusion
The sale of iPad was affected in the 3rd quarters of both financial years 2010-11 and 2011-12. According to market reports even after aggressive marketing by Apple, company showed a downfall twice because of Amazon, HTC and especially Samsung’s Galaxy Note which contains minimum feature of iPad. However Apple was able to maintain its growth rate through counter strategy of marketing thus remaining the leader of tablet market with the share of 58%. Recently company won it case against Samsung where former have alleged later for violating its patents and copyrights. This may help Apple to increase its sale much more than what is expected.
9
doc_783152350.doc
The object of this report is to analyze the sales pattern of the iPad and forecast it’s sales in future for the years.
A Project Report On
Apple’s iPad
In Managerial Economics
Submitted To:
Dr. Paroma Mitra Mukherjee (Faculty Managerial Economics)
Submitted By:
Rohit Varshney (2K12B40)
ASIA-PACIFIC INSTITUTE OF MANAGEMENT (JASOLA, NEW DELHI)
ACKNOWLEDGEMENT
I would like to take this opportunity to express my gratitude towards all those people who have, in various ways, helped in the successful completion of our project. At the outset, I would like to thank faculty of Business Communication Dr. Paroma Mitra Mukherjee for giving me the opportunity and means to undertake this project. I am grateful to my guide, Dr. Paroma Mitra Mukherjee for her valuable guidance, encouragement, inspiration and sharing of knowledge and insights in making this report. This project would have been impossible without her support and guidance.
Rohit Varshney
2
Table of Contents
Table of Contents............................................................................................3 Introduction.....................................................................................................4
Objective.........................................................................................................................4 About iPad......................................................................................................................4 Limitations......................................................................................................................4
Literature Survey.............................................................................................4 Methodology...................................................................................................5
Company Profile............................................................................................................5 Study Period...................................................................................................................5 Types of Data Used........................................................................................................6 Primary Data:...............................................................................................................6 Secondary Data:...........................................................................................................6 Tools Used for Analysis.................................................................................................6 Ratio-To-Moving-Average..........................................................................................6
Descriptive Analysis.......................................................................................6 Statistical Analysis..........................................................................................7
Time-Series-Analysis.....................................................................................................7
Conclusion.......................................................................................................9
3
Introduction
Objective
The object of this report is to analyze the sales pattern of the iPad and forecast it’s sales in future for the years.
About iPad
The Company’s iPad is a multi-purpose mobile device for browsing the Web, reading and sending e-mail, viewing photos, watching videos, listening to music, playing games, reading e-books and more. iPad is based on the Company’s Multi-Touch technology and allows customers to connect with their applications and content in a more interactive way. iPad allows customers to access the iTunes Store to download audio and video files, as well as a range of other digital content and applications. In March 2011, the Company introduced iPad 2, its second-generation iPad.
Limitations
1. Primary data of the sales figure was not available from the company. 2. Exact prediction can not be made as market is full of competition. 3. Technology in today’s time become obsolete very soon hence iPad existence in 2020 is question with no answer.
Literature Survey
Seasonal variation is defined as respective and predictable movement around the trend line in one year or less. In order to detect seasonal variation, time intervals must be measured in small units, such as days, weeks, months, or quarters. We have three main reasons for studying seasonal variation: 1. We can establish the pattern of past changes. This gives us a way to compare two time intervals that would otherwise be too dissimilar. If a flight training school wants to know if a slump in business during December is normal, it can examine the seasonal pattern in previous years and find the information it needs. 2. It is useful to project past patterns into the future. In the case of long range decisions, secular trends analysis may be adequate. But for short run decisions, he ability to predict seasonal fluctuations is often essential. Consider a wholesale food chain that wants to maintain a minimum adequate stock of all items. The ability to predict short range patterns, such as demand for turkeys at Thanksgiving, candy at Christmas, or peaches in the summer, is useful to the management of the chain. 3. Once we have established the seasonal pattern that exits, we can eliminate its effects from the series. This adjustment allows us to calculate the cyclic variation that takes place each year. When we eliminate the effect of seasonal Variation from a time series, we have deseasonalized the time series.
4
Methodology
Company Profile
Apple Inc. (Apple), incorporated on January 3, 1977, along with its subsidiaries, is engaged in designing, manufacturing and marketing mobile communication and media devices, personal computers, and portable digital music players. It also sells a range of related software, services, peripherals, networking solutions, and third-party digital content and applications. The Company’s products and services include iPhone, iPad, Mac, iPod, Apple TV, a portfolio of consumer and professional software applications, the iOS and Mac OS X operating systems, iCloud, and a range of accessory, service and support offerings. It also sells and delivers digital content and applications through the iTunes Store, App Store, iBookstore, and Mac App Store. During the year ended November 24, 2011, the Company, as part of a consortium, acquired Nortel Networks Corporation’s patent portfolio. In February 2012, the Company acquired app-search engine Chomp. The Company operates in five segments: Americas, Europe, Japan, Asia-Pacific and Retail. The Americas segment includes both North and South America. The Europe segment includes European countries, as well as the Middle East and Africa. The AsiaPacific segment includes Australia and Asia countries, other than Japan. The Retail segment operates Apple-owned retail stores worldwide. The Company offers a range of mobile communication and media devices, personal computing products, and portable digital music players, as well as a variety of related software, services, peripherals, networking solutions and third-party hardware and software products. In addition, the Company offers its own software products, including iOS, the Company’s mobile operating system; Mac OS X, the Company’s operating system software for the Mac; server software and application software for consumer, SMB, and education, enterprise and government customers. AppleCare offers a range of support options for the Company’s customers. These options include assistance that is built into software products, printed and electronic product manuals, online support, including product information, as well as technical assistance, and the AppleCare Protection Plan (APP). APP is a fee-based service that includes two to three years of phone support and hardware repairs, dedicated Web-based support resources, and user diagnostic tools.
Study Period
The company launched its highly ambitious multi-touch sensitive device in April 2010. Hence the study on sales aspect of the device has been carried out for duration of two Indian financial years (April’10-March’12) although data has been accounted for entire international sale of the device.
5
Types of Data Used
Primary Data:
The best primary data about sale of a device of company a person can get is through marketing department of that company. Since no company reveals its exact sales figure in terms of quantities hence primary data has not been focused upon.
Secondary Data:
Secondary source of the data gathered is the Internet. The source does not include any data through Wikipedia.
Tools Used for Analysis
Ratio-To-Moving-Average
In order to measure seasonal variation, we typically use the ratio-to-moving-average method. This technique provides an index that describes the degree of seasonal variation. The index is based on a mean of 100, with degree of seasonality measured by variations away from the base. For example, if we examine the seasonality of canoe rentals at a summer resort, we might find that the spring-quarter index is 142. The value 142 indicates that 142 percent of the average quarterly rental occurs in the spring. If management recorded 2,000 canoe rentals for all of the last year, then the average quarterly rental would be 2000/4=500. Because the spring-quarter index is 142, we estimate the number of spring rentals as follows:
Spring-quarter index
Average quarterly rental
500*142 = 710 100
Seasonalized spring-quarter rental
Descriptive Analysis
The following sales data were gathered through primary and secondary source:
6
Month & Year June’10 Sep’10 Dec’10 Mar’10 Jun’11 Sep’11 Dec’11 Mar’11
Table 1
Unit Sold(Millions) 3 4.5 7.3 4.2 6 7 18 17
Statistical Analysis
Time-Series-Analysis
Step1: 4-Quarter Moving Total (4) Step 2: 4-Quarter Moving Average (5)=(4)/4 Step 3: 4-Quarter Centered Moving Average (6)
Year (1)
Quarter (2) I II
Occupancy (3) 3 4.5
2010 III IV I II 2011 III IV 18 17 7.3 4.2
19 22 24.5 6 35.2 7 48
4.75 5.125 5.5 5.81 6.125 7.46 8.8 10.4 12
7
8
Conclusion
The sale of iPad was affected in the 3rd quarters of both financial years 2010-11 and 2011-12. According to market reports even after aggressive marketing by Apple, company showed a downfall twice because of Amazon, HTC and especially Samsung’s Galaxy Note which contains minimum feature of iPad. However Apple was able to maintain its growth rate through counter strategy of marketing thus remaining the leader of tablet market with the share of 58%. Recently company won it case against Samsung where former have alleged later for violating its patents and copyrights. This may help Apple to increase its sale much more than what is expected.
9
doc_783152350.doc