Professional Documents
Culture Documents
Prepared for:
Jenell Barnard-Keller
COM 338 Instructor
Prepared by
Jonathan Cummings, Heather Kelly, Breanna Kerrison, Delin Peng and Jinyao He
University of Michigan-Flint
MEMORENDUM
TO:
FROM:
Group 9; Jonathan Cummings, Heather Kelly, Jinyao He, Breanna Kerrison, Delin
Peng
DATE:
SUBJECT:
Apple.
Table of Contents
INTRODUCTION
1.
History of
apple
1.
Introduction of
products
1.
KEY PEOPLE WITHING
APPLE
1.
Steve
Jobs
1.
Jonathan
Ive
1.
Craig
Federighi
1.
Tim
Cook
.. 1.
Steve
Zadesky
1.
Jeff
Williams
1.
APPLE
GROWTH
2.
4
Salves
revenue
2.
IPad
3.
IPhone.
3.
TRENDS IN
BUSINESS
3.
Apple TV..
.. 4.
Ipone 7
Quandary
.
4.
Apple
Pay
4.
East
Market
4.
Losing a
leader
. 5.
Think differently .
5.
Legacy
5.
Moving on.
.
5.
HOW TO STAY ON
TOP..
6.
Clear
vision
6.
Customer Value
7.
CONCLUSION.
.
7.
REFRENCES
8.
FIGURES:
Figure 1. 2011- 2014 Income statement chart .....
. 3.
INTRODUCTION
Apple is a Technology company that specializes in communication devices, multimedia devices,
personal computers, Music devices, software and is now in the watch market (Market watch).
Apple continues to innovate and create new products which in turns leads to their massive
success and it being a renowned brand in the world. Apple was founded in 1976 In California by
Steve jobs, Steve Wozniak, and Ronald Wayne who originally founded the company to produce
user friendly computers (Business History Apple). Since then Apple has experienced a lot of ups
and downs from peaking in the 1990, to what many believed was the end of the company in 1996
to its continuing stature as the best brand in the world today. Like any starter brand it was small
and started out in a garage before expanding to the multi-million dollar company it is today.
Apple is the most valuable brand in world, worth 145.3 Billion dollars (Forbes). Since its
foundation in 1976 apple has changed the way we view electronics and in many ways has
changed the world. Apple could not has gotten to the place it has today without a few key people
throughout the course in its history.
said to be the most important person in Apple. Cook is in charge of running the company and
making all of Apples big decisions.
Steve Zadesky and Jeff Williams
Steve Zadesky has been with Apple since 1999 and oversees the product design for the iPhone
and iPod. Zadesky might be the person in charge of the Apple car project, this is a secret project
but it is reported that Zadesky was given permission to assemble a team of one thousand people
to help in this initiative. Jeff Williams joined Apple in 1998 and is a big part of the reason that
Apple is able to make millions of iPhones. Williams is the senior vice president of operations and
is in charge of Apples chain of supply. He was a large part of the reason that Apple produced
enough iPhones to break records. In 1998 Williams joined Apple as the head of worldwide
procurement and became vice president of operations in 20004. In 2007 he played a significant
role in Apples entry into the mobile phone market with the launch of the iPhone and has led
worldwide operations for iPods and iPhones since.
APPLE GROWTH
Sales Revenue
Apple has been one of the most successful companies in recent times and is often a benchmark
for its industry. The growth of apple has been astronomical since its first creation and it has seen
success in operating throughout the world. If we look at Apple financial statements over the past
5 years we can see the growth and the magnitude in a dollar figure. In 2010 apple did 65.07
Billion dollars in revenue which was in impressive year however what they were able to do since
then is even more impressive. In 2011 apple upped its revenues to 108,249 Billion, of course
this was a large part to with the growth of the apple IPad. Skip to 2012 and we see apple do
156,508 Billion dollars. In 2012 Apple did nearly 100 Billion dollars more in revenue then it did
in 2010. This type of growth is what fueled apple to become the super brand it is now. Apple also
did 170.910 Billion in 2013, as well as 182,795 Billion in the last year. Apple total Revenue
since 2010 has increased almost 300 percent to 2014. Apples Gross Profit hasnt see such an
impressive upside because of a small dip in 2013 where Apple did roughly 4 Billion dollars less
in gross profits then it did in 2012. Despite this small setback of a year if you compare at gross
profit in 2011 of 43,818 Billion to gross profit of 70,537 Billion in 2014, one can again
appreciate the true growth apple was able to accomplish. During this stint in time apple released
some of their most popular versions of products such as the iPad, iPhone and mac book. In 2015
we dont see apple slowing down but actually pushing its own growth pace. In Interbrands
annual ranking which ranks the top most valuable brands around the world, Apple solidified the
number one positon (Interbrand). The reason that apple growth is so recognized and admired is
because of the fact they are always in the top of their industry with products and continually
innovate to create bigger better products that the consumer cant help to want in turn leading to
revenue gain. Below is a graph of Apples trend financial data from 2011 to 2014.
From Bloomberg.com
IPad
Apples sales have significantly been on the rise which is the cause of the raise in total revenue.
The apple IPad had much to do with the success of apple. In 2014 the iPad was named the top 5
bestselling products by time magazine, they reported that year to date it had sold over 211
Million units (Time). This number is of course still on the rise and with the newest iPad hitting
the shelf almost every year this number is sure to be in an upward trend. Apple newest member if
the iPad family is a pro version which has many new features and capabilities.
IPhone
Besides the iPad, Apple also produces the most popular phone on the market, the iPhone. The
volume of sales that iPhone has done is truly incredible. When the phone was first introduced in
the beginning of 2008 apple sold aproximently 11.63 Million iPhones worldwide. The number
begin to increase yearly ever since in huge bounds. In 2009, one year after its release it sold
20.73 Million units. By 2010 iPhone hit the 40 Million mark proving growth in the smart phone
industry in 2011 iPhone nearly doubled in units sold before catapulting to 150.26 million units
sold in 2013 (Apple investor). In 2013 Apple was responsible for 60% to 70% of the profit
throughout the entire world (BGR). In today, 2015, Apple has sold a staggering 231.22 Million
iPhones throughout the world in that year (Apple investor). Currently Apple iPhone is
accountable for 20% to 40% the world cell phone market. Apple constantly releases the newest
phones every year which make sits customers constantly wanting to have the newest best phone
on the market. This technique keeps people wanting more and for now it looks like apple growth
is nowhere near finished.
Apple Inc. has its development plan in place after the extremely successful 2015. With the largest
market capitalization in stock market history, apple keeps its plans very secret indeed. For
instance, the Apple Watch does not leak out officially until the corporation is absolutely certain
that its the right time. Thus, it is difficult for us to analyze the business trend of Apple Inc.
exactly. However, it is still possible for us to make an educated guess about what will be carried
out in the following year.
Apple TV
Apple has been implying that it has numerous products, which will surprise and shock people.
Tim Cook has stated quite explicitly that the Apple hierarchy has discussed products that no one
has even predicted but what the company will release in the near future. Additionally, the CEO of
the company has strongly stated that the televisions are currently suffering from dated features
and Apple Inc. will work revolution on this technology niche. He implies that the new version of
Apple TV will shock the market when it is carried out.
IPhone 7 quandary
As we all know, the iPhone 6 has been massively successful and received a strong critical
reception as well. Thus, it is not necessary for Apple to make too many changes to the iPhone as
it retains its enduring popularity. On the other hand, the device does need to be significantly
updated if it is to retain its cutting edge image. How the corporation will choose and freeze
production costs will be a serious quandary. Apple probably will want to retain the price same
with the iPhone 6 because the previous iteration in the series sold so well. However, it is difficult
to maintain the same price if big design and build alterations occurred. How to cover the
significantly new technological innovations costs without rising in sale prices is an issued faced
by Apple Inc.
Apple Pay
Apple released its Apple Pay mobile payment system with the intention of establishing itself in
the extremely profitable marketplace. But some analysts believe that it will not become a major
player, or at least a dominant factor, in the mobile payment markets in the following years.
Experts uphold the view that, it is a long-term plan for Apple Inc. to place its Apple Pay system
into good position in market.
Eastern Markets
It is evident that the Apple products play particularly well in east markets such as China. The
Apple Watch will also be strongly branded as a fashion-conscious product niche in the East
market. According o my research, Apple Inc. showed 112% year-over-year revenue growth in the
Greater China region, which accounts for the companys sales in China, Taiwan and Hong Kong.
In the third quarter of 2015, revenue in China for Apple grew to $13.2 billion from $6.2 billion in
2014. Revenue in China again surpassed that of Europe at $10.3 billion. The Greater China
region remains Apples second largest market after the Americas, underscoring the critical
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importance of this area to Apples future growth. In a conference call, Apple CEO Tim Cook
stressed the importance of sales growth in the Greater China region and the CFO Luca Maestri
further emphasized the sales of the iPhone 6 plus were particularly important to the iPhone unit
growth in China. Maestri said that the company plans to add 40 Stores in China over the next 12
months. Retail expanding in China seems to be an unavoidable trend in the following year.
again, until you make it right. There is a lot of competition out there for the company, but thats
okay, after all, they never had a Steve Jobs.
No company stays king forever, including Apple, which is one of the most influential companies
in the world. It truly changes peoples lives. But rarely do we hear of once-dominant technology
companies that rebound to become dominant again. Apple, IBM, HP, Priceline, and Ebay as five
great technology turnarounds worked because each company disrupted themselves. Just to point
out the obvious, however, several of these companies are facing the need to disrupt and re-invent
themselves again.
Apple was competing head-to-head with Microsoft in the PC market to inventing a new kind of
consumer device business. However, Apples current consumer business is under siege. Low
cost, innovative manufacturers are creating devices at a faster and faster rate, making it
increasingly difficult for Apple to stay ahead of the pack. Companies like Samsung and Lenovo
are entering the market with lower cost models. If that werent bad enough, both Google and
Microsoft have recently strengthened their own positions. The Android system and Windows 8
now allow these juggernauts to create their own ecosystems, making it harder to draw new Apple
groupies. Its time for Apple to ask itself a fundamental question: Can it continue to win big by
focusing on its core market? If yes, they should double down on what they are doing today. If no,
they need to disrupt themselves. In fact, there is no way Apple can continue to win big doing
what its doing. There are too many competitors, many of them with a better value proposition.
As a result Apple needs to resort to disrupt and change themselves into a newer and better
position.
Clear vision
So what can Apple or any company do to change itself? First, Apple needs a clear vision of an
opportunity in the marketplace that leverages the companys core competencies. Steve Jobs saw
the chance to move from a PC company to a consumer device company and Apple had all the
design capabilities to make this shift successful. It was the right vision at the right time. Granted,
clarity of vision is not a common trait. It may not take a Steve Jobs to reinvent a company, but it
will take a different approach to gain clarity on whats happening in the marketplace, as well as
invent the strategies that will allow a company to seize a new opportunity.
Second, it is the need for a whole new way of operating. A new philosophy that allows a
company to accelerate ahead of its competition and then continually innovate to maintain that
position. The most successful tech turnarounds need to continually reinvent themselves.
Companies need to be entrepreneurial and agile, to seize new market opportunities while
executing on the business that got them there in the first place.
6
The basic concept is that companies can be great at execution and agility, but both cannot exist
within the same hierarchical structure. A dual-operating structure is required: Employees spend
part of their time within the execution hierarchy, the rest of their time is spent in the
entrepreneurial acceleration network. The result is greatly increased innovation, agility, and
speed of execution.
Customer value
Customer experience is very important for Apple. The Apple stores are good at building
relationship with the customers and they rely on a very effective communication technique: Steps
of Service. Every employee is trained to walk a customer through five steps that spell out the
acronym A-P-P-L-E.
A: Approach customers with a personalized, warm welcome.
P: Probe politely to understand the customers needs.
P: Present a solution for the customer to take home today.
L: Listen for and resolve issues or concerns.
E: End with a fond farewell and an invitation to return.
Apple always put the customers in the first place, it is one of the biggest differences among other
competitors. The Apple stores are one of the most important ways Apple interact with customers.
Not just for those who are already customers but potential customers--sometimes more than 50
million customers tromp through Apple's doors every three months, and half of them who make
purchases are first-timers.
In comparison to Apples competitors making PCs, Apple has an ecosystem of hardware
connected by its own software, iOS, iTunes, and Mac OS X. Apple has total control over its
products and has been able to branch out to other types of devices beyond desktops and laptops.
PC makers are somewhat beholden to the product cycles of Microsoft and are seen as just that,
PC makers--not consumer device makers.
CONCLUSION
Apple doesn't design noise, it aims to design substance, and a point Apple may have felt pressure
to emphasize considering that the Googles and Samsungs of the world continue to be
championed as the new kings of design and innovation. There was a six-year period between the
release of the iPod and the iPhone, a three-year span between the iPhone and the iPad, and only
two years between the launch of the iPad and the iPad mini. It is said that Apple has more new
products not yet released so that Apple can lead the whole industry. It is un-doubtable that apple
is one of the biggest brands in the world and has been known as a power house technology
company however It is important for Apple to keep innovating and changing itself. As long as
7
Apple have an effective operating and connect with the customers, it could lead the whole
industry and stay on top as it has for many years to come.
References
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Oct. 2015
Isaacson, Walter. "Jobs' Biography: Thoughts On Life, Death And Apple." NPR.org. NPR.org,
25 Oct. 2011. Web. 29 Oct. 2015.
Isaacson, Walter. "The Real Leadership Lessons of Steve Jobs." Harvard Business Review. N.p.,
01 Apr. 2012. Web. 29 Oct. 2015.
Lam, Brian. "The Life of Steve Jobs." Gizmodo. N.p., 24 Aug. 2011. Web. 29 Oct. 2015.
Gustin, Sam. "Two Years After Steve Jobs Death, Is Apple a Different Company? TIME.com,
4 Oct. 2014. Web. 29 Oct. 2015.
Epstein, Zach. (March 17, 2014). One simple chart shows how severely apple iPhone is crushing
the competition. BGR.com. Web. 29 November. 2015.
Heisler, Yoni. (October 5, 2015). Apple has set itself up for a monster 2016. Yahoo News.
Retrieved from www.yahoo.com. Web. 2 November, 2015.
Time (May 8, 2014). These are the 10 best- selling products of all time. Time Magazine.
Retrieved from www.time.com. Web. 2 November, 2015.
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Interbrand. (2015). Best global brands 2015. Interbrand. Retrieved November 1, 2015, from
http://interbrand.com/best-brands/best-global-brands/2015/ranking/
Dormeil, Luke. (November 17, 2015). The astonishing rise of iPhone sales in one amazing chart.
Cult of Mac. Retrieved from www.cultofmac.com. Web. 2 November 2015.
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