ASSIGNMENT 1 - INITIAL COMPANY RESEARCH

Student Name: Jace Phelps

Date: 4/9/23

COMPANY:

Parent Company (or Holding Company) Name: Apple

Brand/Division/Subsidiary Name: Apple Music h(ps://www.linkedin.com/pulse/confused-terms-subsidiary-affiliate-division-others-gary-kirshenbaum

Parent company structure:

Apple Inc. is a mulDnaDonal technology company headquartered in CuperDno, California. Apple was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne. The company iniDally focused on developing personal computers. Over the following years, Apple has expanded its product line to include a wide range of consumer electronics, soSware, and services.

In 2015, Apple launched Apple Music, a music streaming service that allows users to stream and download music from a vast library of songs. Apple Music also offers exclusive content, live radio, and curated playlists. The service has become increasingly popular and has over 60 million subscribers worldwide.

Apple Music is a subsidiary of Apple Inc. and operates under the company's umbrella. Apple Music has significantly contributed to Apple's revenue in recent years. In 2022, “Apple's revenue from services, which includes Apple Music, grew by 24% year-over-year, reaching a record high of $54.8 billion”. (Newsroom, 2023)

Brand/Division/Subsidiary

Detail:

Apple Music is a subsidiary of Apple Inc., a mulDnaDonal technology company headquartered in CuperDno, California. The company was founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, and iniDally focused on developing personal computers. Over the years, Apple has expanded its product line to include a wide range of consumer electronics, soSware, and services.

The current CEO of Apple is Tim Cook, who took over from Steve Jobs in 2011. Cook has played a significant role in the success of the parent company by overseeing the company's expansion into new markets, including wearables, home automaDon, and healthcare. Cook has also focused on increasing the company's revenue from services, including Apple Music.

Apple Music has become one of the most popular music streaming services in the world, with over 60 million subscribers worldwide. The service offers a vast library of songs, exclusive content, live radio, and curated playlists. Apple Music's success has contributed to the growth of Apple's services business, which accounted for 24% of the company's total revenue in 2021, reaching a record high of $54.8 billion.

Parent company financial posiNon

• Year over Year: As of the fiscal year ending September 25, 2022, Apple's stock price has increased by 40% compared to the previous year. The stock price at the beginning of the most recent 5-year period, as of September 26, 2016, was $112.71 per share, and as of September 24, 2022, it was $146.92 per share. (Apple.com, 2022)

• Compare stock performance to a market index: Over the most recent 5-year period, the S&P 500 index has gone up by 79.33%, while Apple's stock price has gone up by 30.36%. (Yahoo Finance, 2023) Although Apple's stock price increase is significant, it lags behind the S&P 500's performance during the same period.

• Net Income: In the fiscal year ending September 25, 2022, Apple's net income was $74.8 billion. (Apple.com, 2023)

• Net Profit Margin: Apple's net profit margin for the fiscal year ending September 25, 2022, was 24.4%. (Apple.com, 2023)

• Debt to Assets RaNo: As of September 25, 2022, Apple's debt to assets raDo was 0.13, which indicates that the company has low debt levels compared to its total assets. (Newsroom, 2022)

Business Lines Of Brand Or Division

Product/Service line A: Music Streaming Service

Example of Product/Service line A: Apple Music

Apple Music is a music streaming service that offers access to millions of songs, exclusive content, live radio, and curated playlists. The service can be accessed on various devices, including iPhone, iPad, Mac, Apple Watch, and Apple TV. Apple Music offers several benefits to potenDal and current customers, including:

Extensive music library: Apple Music provides access to millions of songs from different genres, arDsts, and albums. This ensures that customers can find their favorite music and discover new favorites.

Exclusive content: Apple Music offers exclusive content such as interviews, documentaries, and live shows. This content provides a unique and engaging experience for customers.

Personalized recommendaDons: Apple Music uses machine learning algorithms to provide personalized music recommendaDons to customers. This ensures that customers can discover new music based on their preferences and listening habits.

Product/Service line B: Digital Music Downloads

Example of Product/Service line B: iTunes Store

The iTunes Store is a digital music store that allows customers to purchase and download music to their devices. The store offers a vast library of songs from different genres and arDsts. The iTunes Store provides several benefits to potenDal and current customers, including:

Large music library: The iTunes Store offers access to a vast library of songs from different genres and arDsts. This ensures that customers can find the music they love and download it to their devices. (iTunes.com, 2022)

Ease of use: The iTunes Store is user-friendly and easy to navigate, making it easy for customers to find and download the music they want.

High-quality downloads: The iTunes Store offers high-quality music downloads, ensuring that customers get the best possible listening experience.

Product/Service line C : Original Content

Example of Product/Service C: Apple Music Originals

Apple Music Originals is a series of exclusive content produced by Apple Music. The content includes live performances, documentaries, and interviews with popular arDsts. Apple Music Originals provides several benefits to potenDal and current customers, including:

Exclusive content: Apple Music Originals offers exclusive content that cannot be found on other plakorms. This provides a unique and engaging experience for customers.

Access to popular arDsts: Apple Music Originals features interviews and performances from popular arDsts, giving customers an inside look into their lives and work.

High-quality producDon: Apple Music Originals is produced with high-quality producDon values, ensuring that customers get the best possible viewing experience.

Target Market For Brand Or Division

Example of Product/Service line A: Apple Music

• Geographic: Urban and suburban areas with high smartphone and internet usage

• Demographic: Age: 18-35, Gender: Male and Female, Income: Middle to high income, EducaDon: College-educated

• Psychographic: Music enthusiasts and audiophiles, Tech-savvy individuals who prefer streaming over tradiDonal music listening methods. Individuals who value convenience and accessibility

• Benefits Sought by consumer: Access to a wide variety of music genres and arDsts, Personalized recommendaDons and playlists, Exclusive content and live radio staDons, Ability to listen to music offline

• Usage Rate of consumer: Heavy users who listen to music daily or several Dmes a week, Light users who listen to music occasionally or on special occasions

Example of Product/Service line B: iTunes Store

• Geographic: Urban and suburban areas with high smartphone and internet usage

• Countries with a high penetraDon of Apple devices

• Demographic: Age: 18-54, Gender: Male and Female, Income: Middle to high income, EducaDon: College-educated

• Psychographic: Tech-savvy individuals who prefer digital media consumpDon over physical media, Individuals who value convenience and accessibility, Music, movie, and TV show enthusiasts

• Benefits Sought by consumer: Tech-savvy individuals who prefer digital media consumpDon over physical media, Individuals who value convenience and accessibility, Music, movie, and TV show enthusiasts

• Usage Rate of consumer: Heavy users who consume digital media content daily or several Dmes a week, Light users who consume digital media content occasionally or on special occasions

Example of Product/Service line C: Apple Music Originals

• Geographic: Urban and suburban areas with high smartphone and internet usage. Countries with a high penetraDon of Apple devices (Pew Research Center, 2022)

• Demographic: Age: 18-34, Gender: Male and Female, Income: Middle to high income, EducaDon: College-educated

• Psychographic: Music enthusiasts who enjoy discovering new and unique arDsts and music genresConsumers who value high-quality, exclusive content, Trendse(ers and early adopters who are interested in cupng-edge technology and entertainment

• Benefits Sought by consumer: Access to exclusive content that cannot be found on other music streaming plaVorms, The ability to discover and support new and emerging arNsts, High-quality sound and producNon values, The presNge and status associated with accessing exclusive content

• Usage Rate of consumer: Heavy users who consume digital media content daily or several Dmes a week, Early adopters who are willing to pay a premium for exclusive content, Music enthusiasts who use music streaming services as their primary source of entertainment