CBF ASSIGNMENT 2

Design is not just

what it looks like
and feels like.
Design is how it works.
-STEVE JOBS

ALEN JOSE THOMAS

BD/14/930
FC-IV

INTRODUCTION
This assignment will analyze and discuss the most important innovation of Apple on the
basis of
product oriented
market oriented
firm oriented
conumer oriented
Innovation, development, and growth strategies are about producing a transformation and
adjustments on how societies live, work, and play. Trying to achieve that, Apple works its
innovative strategy in a mix of product, solution, technology, business model, and rebranding brand management strategy. Apple innovation and continual improvements drives its vision by internal conviction about the outside world environment. Its conviction is concerned
about shifting how users interact around music and entertainment. Apple develops a notion
of changing consumers landscape. The information to follow will contains a brief explanation of Apple target, company sources for growth, Sec filings from company, the new product
development, the industry gap, and tactic used to develop a successful innovative strategy.

Apple overview
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops, and sells consumer electronics, computer software, and online services. Its hardware products include the iPhone smartphone, the
iPad tablet computer, the Mac personal computer, the iPod portable media player, and
the Apple Watch smartwatch. Apples consumer software includes the OS X and iOS
operating systems, the iTunes media player, the Safari web browser, and the iLife and
iWork creativity and productivity suites. Its online services include the iTunes Store, the
iOS App Store and Mac App Store, and iCloud.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976,
to develop and sell personal computers. It was incorporated as Apple Computer, Inc. on
January 3, 1977, and was renamed as Apple Inc. on January 9, 2007, to reflect its shifted
focus toward consumer electronics. Apple (NASDAQ: AAPL) joined the Dow Jones Industrial Average on March 19, 2015.
Apple is the worlds largest information technology company by revenue, the worlds
largest technology company by total assets, and the worlds second-largest mobile
phone manufacturer. In November 2014, in addition to being the largest publicly traded
corporation in the world by market capitalization, Apple became the first U.S. company
to be valued at over US$700 billion. The company employs 115,000 permanent full-time
employees as of July 2015 and maintains 475 retail stores in seventeen countries as of
March 2016. It operates the online Apple Store and iTunes Store, the latter of which is
the worlds largest music retailer. There are over one billion actively used Apple products worldwide as of March 2016.
Apples worldwide annual revenue totaled $233 billion for the fiscal year ending in September 2015. To put this into perspective this revenue generation accounts for approximately 1.25% of the total United States GDP. The company enjoys a high level of brand
loyalty and, according to the 2014 edition of the Interbrand Best Global Brands report,
is the worlds most valuable brand with a valuation of $118.9 billion. By the end of 2014,
the corporation continued to receive significant criticism regarding the labor practices
of its contractors and its environmental and business practices, including the origins of
source materials.

Apple innovation strategy

Target
Initially, Apple focused on the American market because of an aging population. However, 50% of Apple customers are under the age of 30. As an observer from the sidelines,
it would appear that Apple targeted teens and adults in their twenties. The product lines
offered by Apple are an assortment of technology for different ages, genders, and working
classes. Apples visionary team share the belief that If you make something great, then
everybody will want to use it. .
Consumers falling in the age group 15-49 account for 94% of sales. Males are purchasing
74% of iPhones and college graduates account for 58%. The mean household income for
iPhone purchases is $75,600. IPod targets include ages 12-17 and 35-44 with male purchases
slightly higher than females. The household income for iPod purchasing starts at $15,000.
High school students are a target market; however, because iPod purchases are from different demographic groups, it is hard to narrow any comparative data.
The iPad and Mac are two other product lines offered by Apple that have attracted different
demographic groups. The Mac has appealed to businessmen, so Apple has targeted end
user professional markets and college students because these groups of people are updated with technology innovation. Mac promotions are aimed to attract the 45+ age bracket
due to more disposable income. High pricing has Apple targeting college graduates because they will receive higher incomes.

Sources Of Growth
Apple grows from within rather than by acquisition or merger. Apple has embraced this
strategy over its existence, averaging only about 1 acquisition per year during the past 25
years. . Microsoft, Google, and Cisco acquired 30 to 45 companies in the past four years.
Apples internal growth executed revenue. Apple only spent $4.6 billion on R&D over the
past four years, while revenues soared from $25 billion to $43 billion. . Innovation is in the
minds of Apples employees, and the company is strategically choosing which ideas to invest in.

New Product Development

Apple has established a solid product development plan and after an extensive review
it appears Apple is working on several new products for future growth. According to the
Macworld/iWorld source for 2012 the Apple brand is considering rebranding the iOS side
of the product. This process shows the entire ecosystem of Apple products and services.
Apples purpose of rebranding the iOS side of the business is to change the perception of
the product without changing the business. Consumers are partial to seeing what they like
therefore visual changes may be the answer to Apple iOS segment changes. Apple is also
venturing into music experiences that feature performances and sessions from musicians
who use Apple technology and film events which highlight Apples role in television and
movies. Apple is extremely successful even without rebranding iOS segment. The focus is
on retaining heavy OSX presence with organizers introducing new packages to attract OSX
developers.

The Gap
Apple is continually improving on the products released. Apple focuses on making customer
center products to meet every age group. Every new production delivers customer-centered
product. New products released result in software updates to improve customer experiences
within months of initial release. An example of this process developed the iPhone 4S. The
latest release of the iPhone 4S delivered a new technology. With this new phone the customer speaks to it treating it more like a personal assistant instead of just a regular smart
phone requiring manual programming. Apple focuses in the areas they are most familiar
with to continue improvement and explore ways of making those items more customer-centered.

Creative Tactics
Apple has accomplished what many businesses only dream of, branding. Apples iPod is the
brand of mp3 players competing with well-known companies such as Sony and RCA. When
customers think of mp3 players or digital media distribution, iPod, and iTunes are first on
the brain. The comparable mix of pricing strategy, variety of accessories and continuous
innovation has contributed to Apples success as an industry leader.

Creative Tactics
Apple has accomplished what many businesses only dream of, branding. Apples iPod is the
brand of mp3 players competing with well-known companies such as Sony and RCA. When
customers think of mp3 players or digital media distribution, iPod, and iTunes are first on
the brain. The comparable mix of pricing strategy, variety of accessories and continuous
innovation has contributed to Apples success as an industry leader.

apple
market innovation
Multitouch

Multitouch technology is an obvious place to start. Now contrary to what Steve Jobs may
have said when introducing the original iPhone back in 2007, multitouch was not some magical technology invented deep within Apples R&D labs.
Whats more, Apples own take on multitouch was the result of its 2005 acquisition of a Delaware-based company called FingerWorks.
Nonetheless, its indisputable that the original iPhone brought multitouch technology into
the mainstream. Following the iPhone, it wasnt long before we began seeing multitouch
smartphones from a variety of different handset manufacturers. Multitouch may not have
been a feature developed at Apple, but the companys implementation of the technology on
the iPhone is what truly made it a household name and, more importantly, accessible to the
masses.

Mouse
The computer mouse represents yet another technological innovation that, while not invented by Apple, was popularized by an Apple product. During the mid-1980s, back when
most people were still interfacing with computers via a command line, Apple helped change
the world of computing when it introduced the original Mac. Anchored by an intuitive and
revolutionary graphical user interface, Apple popularized the idea of using a mouse as the
primary way to interact with computers.
Funny thing is, the history of the modern mouse actually dates all the way back to the 1960s
when it was invented Douglas Engelbart of the Stanford Research Institute. Whats more,
the Mac wasnt even the first computer to ship with a mouse; that honor goes to a 1981

Xerox Star workstation. Still, it wasnt until Apple released the Mac in 1984 that the mouse
truly began to seep into the mainstream.

Laptop trackpads
These days, trackpads come standard on about any laptop youre likely to come across.
But for those old enough to remember the early 90s, that wasnt always the case. Way back
when, many computer notebooks used a rather bulky trackball as the primary input mechanism. However, once Apple released its series of PowerBook 500 notebooks in May of 1994,
computing would never be the same. Apples PowerBook 500 notebooks did away with the
trackball and replaced it with a much more elegant and efficient two-inch square trackpad.

Fingerprint Sensors
While fingerprint sensor technology was hardly new in 2012, the vast majority of consumers
had never used it until Apple rolled out TouchID with the iPhone 5s. Shortly thereafter, other
handset manufacturers began clamoring to implement biometric technologies on their own
devices.
Consider this: in one fell swoop, Apple managed to normalize a technology that, for most
people at the time, was nothing more than a cool technology relegated to TV shows or movies. And in what may be something of a theme here, its worth noting, again, that Apple
didnt magically come up with TouchID all on its own. Rather, the company brought the requisite technology behind TouchID in-house when it acquired the mobile security firm Authentec back in 2012.
So while Apple didnt invent fingerprint recognition technology, its extremely intuitive implementation of the technology finally brought it into the mainstream.

Graphical User Interface

The history of the GUI famously stretches back to the Xerox Palo Alto Research Center in the
1970s. And there it remained until Apple introduced the Lisa computer in 1983, soon followed
by the Mac in 1984. Though the technology had existed for years previous, it wasnt until
Apple incorporated it into its own computers that the concept of a GUI truly began to gained
traction amongst mainstream computer users.
While some naysayers still like to claim that Apple stole the GUI concept from Xerox, there
are a few key facts worth mentioning. First, Apple licensed many GUI features from Xerox.
Second, some of the more common GUI concepts that are now considered standard and
essential aspects of the computing experience were developed by Apple engineers during
the course of developing the original Mac. Regardless, its hard to deny that the GUI on the
original Mac represents a monumental and landmark moment in the history of computing.

USB
The original Bondi Blue iMac was a bold and ambitious product, and arguably a risky computer for Apple to release. Not only did the iMac come without a floppy disk drive, it was
also the first computer to ship exclusively with USB ports. In the process, Apple did away
with legacy ports like ADB and SCSI and ultimately helped transform USB into a defacto
peripheral standard across the industry.
Though some PCs at the time did come with USB ports, the iMac, again, was the first computer to completely break backwards compatibility with older ports. As a result, the iMac
helped kickstart more widespread adoption of USB. Once the iMac began shipping, the
number of USB compatible peripherals began to increase dramatically. And in turn, the
number of computers that supported USB began to grow as well.

3D Touch
3D Touch is one of the more interesting and exciting smartphone advancements weve seen
in quite some time. But as a new technology, we wont fully be able to appreciate how 3D
Touch will change the way we use our devices until more developers begin taking advantage of it. Still, some of the ways that iOS apps already utilize 3D Touch serve to show how
much potential the technology has. It therefore stands to reason that it wont be long before
pressure sensitive multitouch displays become the norm on smartphones across the board.
Not too surprisingly, weve already seen reports that 3D Touch-esque technology is likely to
hit flagship Android devices sometime in 2016.

ipod evolution
iPod
The classic iPod, released in October 2001, gave you
the option of 5GB or 10GB capacity and had a 10-hour
battery life.

Second Generation iPod

The second generation iPod released eight months later
and upped the ante by increasing capacity to 10 or 20GB
hard drives, but didnt give any improvements to the life of
the battery.

Third Generation iPod

The all-touch interface of the third generation iPod
arrived in April 2003 with a number of hard drive
sizes (10, 20, 30, and 40GB), but came with a much
smaller and lighter body. This was the first iPod
to sport a dock connector, but poor battery life of
eight hours really cut this model down to size.

iPod Mini
Two versions of the iPod Mini were released in
January 2004 and February 2006. Both came in tiny,
candy-colored 4 and 6GB storage models

iPod Shuffle
The tiny iPod Shuffle made its debut in January
2005 with a new way to listen to an iPod totally
at random. The shuffle comes without a screen, so
you are at the mercy of your library, and can only
skip forward and backward with the controls on
your headphones or the touch controls on the body.
The Shuffle came with 512MB or 1GB flash memory
storage.
iPod Nano
Replacing the Mini in September 2005, the Nano
had a small, compact body (in white or black options), and came with a flash memory instead of
the previous hard drives, with up to 8GB of storage.

iPod Touch
The first iPod with WiFi and a multitouch interface,
the iPod Touch was released in September 2007
along with the iPhone. Allowing purchases of apps,
photo capabilities, and a 32GB memory make this
the best MP3 player to hit the market. Two more
re-releases in 2008 and 2009 bring Nike+ integration, a matte black color option, and a boost to
64GB of storage.
Fifth Generation iPod Touch
The newest iPod Touch shipped in Oct. 2012,
tricked our with iOS 6 and Siri functionality. But
even better than the latest and greatest operating
system were the four candy-colored hues to can
choose from, the larger 4-inch display, and the HD
flash camera!

iphone evolution
The iPhone Released June 29, 2007
The original iPhone was a GSM phone that established the form-factor
that Apple has more or less stuck with over the years. The public was
so amazed by the device, some nicknamed it the Jesus phone. Apple
released the original iPhone in 4GB, 8GB and 16GB models.

iPhone 3G Released July 11, 2008

With the second generation, Apple introduced
Assisted GPS and 3G connection. The biggest improvement was with an updated iOS, which included Push email, turn-by-turn navigation and the App
store, which introduced third-party applications.

iPhone 4 Released June 24, 2010

The iPhone 4 was the first to feature the high-resolution Retina display. Apple also added a
front-facing camera for video calls, and upgraded
the rear-facing camera to 5 megapixels and 720p
video capture. Apple also introduced a new design,
replacing the rounded back panel with a flat surface, making the iPhone 4 the thinnest smartphone
in the world at the time. The iPhone 4 featured a
stainless-steel frame and the new A4 chip, which,
along with iOS 4, helped the iPhone with multitasking functions.

iPhone 4S Released October 14, 2011

With the fifth generation, Apple upgraded the camera once again, this time with 8 megapixels and
1080p video recording. Apple also upgraded the
hardware to a dual-core A5 processor and introduced Siri. The release of 4S brought along iCloud,
iMessage, Notification Center, Reminders and native integration with Twitter. The iPhone 4S was the
first iPhone released after Jobs death.

iPhone 5 Released September 21, 2012

The iPhone 5 featured a new dual-core A6 chip and
increased the size of the display up to four inches.
Apple also replaced the 30-pin connector it had
been using since before the original iPhone with a
new, all-digital Lightning connector. The iPhone
5 was also given an aluminum frame, making the
phone thinner and lighter than previous models.
The iPhone 5 was also the first iPhone to feature
LTE support.
iPhone 5C and iPhone 5S Released September 20, 2013
The seventh and most recent generation of the iPhone came in two different models. The
iPhone 5C is mostly the same as the iPhone 5, but has a new backside-illuminated FaceTime
camera and new body made out of polycarbonate.
The iPhone 5S maintained the same form-factor as the iPhone 5, but was given a new TouchID home button with fingerprint recognition technology. Apple also updated the camera
with a larger aperture and dual-LED flash, and introduced the new A7 dual-core processor,
making the iPhone 5S the first smartphone with a 64-bit processor. Apple also added the M7
processor into the iPhone to handle motion data.

iPhone 6 September 19, 2014

The iPhone 6 and iPhone 6 Plus include a number of changes over their predecessor, including models with larger 4.7 and 5.5 inches (120 and 140 mm) displays, a faster processor,
upgraded cameras, improved LTE and Wi-Fi connectivity and support for a near field communications-based mobile payments offering.Pre-orders of the iPhone 6 and iPhone 6 Plus
exceeded four million within its first 24 hours of availabilityan Apple record. More than ten
million iPhone 6 and iPhone 6 Plus devices were sold in the first three days, another Apple
record.

CONCLUSION
Apple enjoys enhanced performance by pursuing a deep customerbroad innovation asset-leveraging strategy in which it consistently provides new and unique products to an
entrenched group of existing customers by leveraging its broad technology portfolio . By
incorporating consumers experiences into apple innovation strategy and plan the company
will achieve a successful edge.