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How Apples Corporate Strategy

Drove High Growth


Blue Ocean Strategic Moves
from iPod to iPad

INSEAD Blue Ocean Strategy Institute 2012

1996 the Apple debacle


INSEAD Blue Ocean Strategy Institute 2012

Market Cap (US $ billion, 06/02/2011)


Walmart
GE
Oracle
IBM
Google
Microso6
Apple
Exxon Mobil
0

50

100

150

200

250

300

350

400

2011 - Apples market cap overtook


MS+Intel
INSEAD Blue Ocean Strategy Institute 2012

What has Apple done


in the last decade?

INSEAD Blue Ocean Strategy Institute 2012

Financial Performance
Protability
30.0%
25.0%

Revenue Size

20.0%
15.0%
10.0%
5.0%
0.0%
(5.0%)
(10.0%)
(15.0%)
(20.0%)
1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

INSEAD Blue Ocean Strategy Institute 2012

Financial Performance
Market cap (US $ million) 281,963.0

Protability
30.0%
25.0%

Revenue Size

20.0%
15.0%

177,766.8

10.0%

143,323.7

5.0%
0.0%

91,827.0
72,900.8
60,342.2

(5.0%)
(10.0%)
(15.0%)
(20.0%)
1995

25,201.0
16,077.9
4,849.3 7,386.2 5,096.2 7,141.3
2,769.6 2,013.4 5,387.4
1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

INSEAD Blue Ocean Strategy Institute 2012

Financial Performance
Market cap (US $ million) 281,963.0

Protability
30.0%
25.0%

Revenue Size

20.0%
15.0%

177,766.8

10.0%

143,323.7

5.0%
0.0%

91,827.0
72,900.8
60,342.2

(5.0%)
(10.0%)
(15.0%)
(20.0%)
1995

25,201.0
16,077.9
4,849.3 7,386.2 5,096.2 7,141.3
2,769.6 2,013.4 5,387.4
1996

1997

Jobs
returned

1998

1999

iMac

2000

2001

2002

iPod &
iTunes

2003

2004

2005

iTunes
Music Store

2006

2007

iPhone

2008

2009

2010

App Store

2011

2012

iPad

INSEAD Blue Ocean Strategy Institute 2012

iPOD+ iTUNES SOFTWARE


(2001)
Reconstruction of the Digital Music (mp3) Player Industry

INSEAD Blue Ocean Strategy Institute 2012

Digital Music (mp3) Players in the late 1990s

Target customers
Technologically literate teens and twentyyear olds, MP3 file traders

INSEAD Blue Ocean Strategy Institute 2012

Digital Music (mp3) Players in the late 1990s

Target customers
Technologically literate teens and twentyyear olds, MP3 file traders

Flash MP3 Player

Inexpensive ($100-$200)
Small size
Small storage (1 CD songs)
INSEAD Blue Ocean Strategy Institute 2012

Digital Music (mp3) Players in the late 1990s

Target customers
Technologically literate teens and twentyyear olds, MP3 file traders

Flash MP3 Player

OR
Inexpensive ($100-$200)
Small size
Small storage (1 CD songs)
INSEAD Blue Ocean Strategy Institute 2012

Digital Music (mp3) Players in the late 1990s

Target customers
Technologically literate teens and twentyyear olds, MP3 file traders

Flash MP3 Player

Hard Drive MP3 Player

OR
Inexpensive ($100-$200)
Small size
Small storage (1 CD songs)

Expensive ($300-$800)
Bulky size
Big storage (up to 5,000 songs)
Poor navigation system
INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the MP3 Player Industry

Offering Level

High

Low

Price
Player Size

Storage
Capacity

Ease of Use

Ease of
Navigation

Ease of
Music Transfer &
Organization

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the MP3 Player Industry

Offering Level

High

Flash Memory MP3 Players

Low

Price
Player Size

Storage
Capacity

Ease of Use

Ease of
Navigation

Ease of
Music Transfer &
Organization

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the MP3 Player Industry

High

Offering Level

Hard Drive MP3 Players


Flash Memory MP3 Players

Low

Price
Player Size

Storage
Capacity

Ease of Use

Ease of
Navigation

Ease of
Music Transfer &
Organization

INSEAD Blue Ocean Strategy Institute 2012

iPod

Targeted noncustomers: the over 34-year-olds


Great capacity of hard drive players (5GB=1,000 songs)
Portability and ease of use of flash memory
Simplified user interface with one wheel & four buttons
iTunes software application
Simple to use software to transfer music from CD to player
Automatic & fast synchronization with iPod
Automatic battery charge from the computer
Easy to manage digital music collection
Fun to use
Sleek design unlike conventional electronic devices
Priced at $399

1,000 songs in your pocket


INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPod + iTunes Software

Offering Level

High

Low

Price
Player Size

Storage
Capacity

Ease of Use

Ease of
Navigation

Fun
Ease of
Music Transfer &
Organization

Fashion

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPod + iTunes Software

Offering Level

High

Flash Memory MP3 Players

Hard Drive MP3 Players

Low

Price
Player Size

Storage
Capacity

Ease of Use

Ease of
Navigation

Fun
Ease of
Music Transfer &
Organization

Fashion

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPod + iTunes Software

High

Offering Level

iPod + iTunes s/w


Flash Memory MP3 Players

Hard Drive MP3 Players

Low

Price
Player Size

Storage
Capacity

Ease of Use

Ease of
Navigation

Fun
Ease of
Music Transfer &
Organization

Fashion

INSEAD Blue Ocean Strategy Institute 2012

iTUNES MUSIC STORE (2003)


Reconstruction of the Digital Music Retailing Industry

INSEAD Blue Ocean Strategy Institute 2012

How digital music was bought

INSEAD Blue Ocean Strategy Institute 2012

How digital music was bought

Subscriptionbased music
services

Legal
Good quality

Limited rights
Complex pricing methods
Limited selection

INSEAD Blue Ocean Strategy Institute 2012

How digital music was bought

Subscriptionbased music
services

P2P network
(File-sharing
network)

Legal
Good quality

Limited rights
Complex pricing methods
Limited selection

Free
Wide selection
Simple & Easy to use

Illegal
Poor quality

INSEAD Blue Ocean Strategy Institute 2012

How digital music was bought

Subscriptionbased music
services

Trade up/down

P2P network
(File-sharing
network)

Legal
Good quality

Limited rights
Complex pricing methods
Limited selection

OR
Free
Wide selection
Simple & Easy to use

Illegal
Poor quality

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the Digital Music Retailing Industry

Offering Level

High

Low

Piracy
Concern

Complex Pricing
Method

Restrictions in
Use

Music
Quality

Music
Selection

Simplicity &
Ease of Use

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the Digital Music Retailing Industry

Offering Level

High

Subscription-based
Music Services

Low

Piracy
Concern

Complex Pricing
Method

Restrictions in
Use

Music
Quality

Music
Selection

Simplicity &
Ease of Use

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the Digital Music Retailing Industry

P2P Networks

Offering Level

High

Subscription-based
Music Services

Low

Piracy
Concern

Complex Pricing
Method

Restrictions in
Use

Music
Quality

Music
Selection

Simplicity &
Ease of Use

INSEAD Blue Ocean Strategy Institute 2012

iTunes music store


Apples blue ocean strategic thinking:
Instead of trading up/down between the subscription-based music
service and the free file-sharing network, Apple looked across these
two strategic groups.
Apple saw untapped demand for legal channels of digital music with a
wide selection at a price that appeals to the mass of potential buyers.

INSEAD Blue Ocean Strategy Institute 2012

iTunes music store


Apples blue ocean strategic thinking:
Instead of trading up/down between the subscription-based music
service and the free file-sharing network, Apple looked across these
two strategic groups.
Apple saw untapped demand for legal channels of digital music with a
wide selection at a price that appeals to the mass of potential buyers.
Eliminate

Raise

Piracy concern
Complex pricing method

Music quality
Music selection
Simplicity & Ease of use

Reduce

Create

Restrictions in using purchased music

Pay per song


30 seconds free sampling
Automatic sync with iTunes (easy file
management & transfer to a mp3 player)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the iTunes Music Store

Offering Level

High

Low

Piracy
Concern

Restrictions in
Use
Music
Complex
Quality
Pricing
Method

Music
Selection

Simplicity &
Ease of Use

Pay per
Song

Free
Sampling

Automatic
Sync with
iTunes

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the iTunes Music Store

Offering Level

High

P2P Networks
Subscription-based
Music Services

Low

Piracy
Concern

Restrictions in
Use
Music
Complex
Quality
Pricing
Method

Music
Selection

Simplicity &
Ease of Use

Pay per
Song

Free
Sampling

Automatic
Sync with
iTunes

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the iTunes Music Store

High

Offering Level

iTunes Music Store


P2P Networks
Subscription-based
Music Services

Low

Piracy
Concern

Restrictions in
Use
Music
Complex
Quality
Pricing
Method

Music
Selection

Simplicity &
Ease of Use

Pay per
Song

Free
Sampling

Automatic
Sync with
iTunes

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the iTunes Music Store


Eliminate

Reduce

Raise

Create

High

Offering Level

iTunes Music Store


P2P Networks
Subscription-based
Music Services

Low

Piracy
Concern

Restrictions in
Use
Music
Complex
Quality
Pricing
Method

Music
Selection

Simplicity &
Ease of Use

Pay per
Song

Free
Sampling

Automatic
Sync with
iTunes

INSEAD Blue Ocean Strategy Institute 2012

RESULTS
US $ billion

90
80
70
60
50
40
30
20
10
0
2002

2003

2004
iPod

2005

2006

2007

Other music related products and services

2008

2009

2010

Apple's total revenue

By 2010, Apple has sold more than 297 million iPods and maintained
over 70% global market share.
More than 10 billion songs, 450 million TV episodes, 100 million movies, and
35 million books have been purchased and downloaded from the iTunes
Music Store by over 160 million account holders in 23 countries.
INSEAD Blue Ocean Strategy Institute 2012

iPHONE (2007) &


APP STORE (2008)
Reconstruction of the Mobile Phone Industry

INSEAD Blue Ocean Strategy Institute 2012

The Mobile Phone Industry in the Early 2000s

Handset makers
Engaged in R&D arms race to make more technologically innovative, valueadded handsets.

Focused on selling more units of hardware (handsets). The more add-ons were
equipped, the more expensive mobile was.

Two strategic groups: Feature phone OR Smartphone


Carriers
Faced downward pressure on prices, slimmer margins on voice calls.
Dictated to handset makers what to build, how to build, and at what cost.
Market was flooded with me-too handsets and services

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the Mobile Phone Industry

Offering Level

High

Low

Price
Variety of
Models

Number of
Physical
Buttons

PC-like
Performance
Business
Applications

Style & Fun


Mobile
Internet

Ease of Use

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the Mobile Phone Industry

Offering Level

High

Feature Phones

Low

Price
Variety of
Models

Number of
Physical
Buttons

PC-like
Performance
Business
Applications

Style & Fun


Mobile
Internet

Ease of Use

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the Mobile Phone Industry

High

Offering Level

Smartphones
Feature Phones

Low

Price
Variety of
Models

Number of
Physical
Buttons

PC-like
Performance
Business
Applications

Style & Fun


Mobile
Internet

Ease of Use

INSEAD Blue Ocean Strategy Institute 2012

iPhone

INSEAD Blue Ocean Strategy Institute 2012

iPhone
Eliminate
Variety of models

INSEAD Blue Ocean Strategy Institute 2012

iPhone
Eliminate

Raise

Variety of models

Mobile internet
Style & Entertainment
Ease of use & Simplicity

INSEAD Blue Ocean Strategy Institute 2012

iPhone
Eliminate

Raise

Variety of models

Mobile internet
Style & Entertainment
Ease of use & Simplicity

Reduce
Number of physical buttons
Embedded business
applications
PC-like performance (through
higher operating system)

INSEAD Blue Ocean Strategy Institute 2012

iPhone
Eliminate

Raise

Variety of models

Mobile internet
Style & Entertainment
Ease of use & Simplicity

Reduce

Create

Number of physical buttons


Embedded business
applications

Freedom to customize
through App Store

PC-like performance (through

(from 2008)

higher operating system)

INSEAD Blue Ocean Strategy Institute 2012

iPhone
Eliminate

Raise

Variety of models

Mobile internet
Style & Entertainment
Ease of use & Simplicity

Reduce

Create

Number of physical buttons


Embedded business
applications

Freedom to customize
through App Store

PC-like performance (through

(from 2008)

higher operating system)

The Internet in Your Pocket


INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPhone

Offering Level

High

Low

Price
Variety of
Models

PC-like
Style & Fun
Number of
Performance
Physical
Mobile
Business
Buttons Applications
Internet

Ease of
Use

Customization
via App Store
(from 2008)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPhone

Offering Level

High

Feature Phones

Low

Smartphones
Price
Variety of
Models

PC-like
Style & Fun
Number of
Performance
Physical
Mobile
Business
Buttons Applications
Internet

Ease of
Use

Customization
via App Store
(from 2008)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPhone

iPhone

Offering Level

High

Feature Phones

Low

Smartphones
Price
Variety of
Models

PC-like
Style & Fun
Number of
Performance
Physical
Mobile
Business
Buttons Applications
Internet

Ease of
Use

Customization
via App Store
(from 2008)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPhone


Eliminate

Reduce

Create
Raise
iPhone

Offering Level

High

Feature Phones

Low

Smartphones
Price
Variety of
Models

PC-like
Style & Fun
Number of
Performance
Physical
Mobile
Business
Buttons Applications
Internet

Ease of
Use

Customization
via App Store
(from 2008)

INSEAD Blue Ocean Strategy Institute 2012

App Store (2008)

Customize the iPhone the way the user wants


Application programs developed by Apple and third-party developers.
20 categories ranging from Games & Entertainment to Books & Education.
Easy and convenient to purchase, download, and synchronize with iPhone on
one Apple ID.

Price
Free Apps: 25% of applications were free of charge.
Low price: More than 25% of applications cost $0.99.
The average price of an application was $3.21.
Win-win proposition
Apple got 30% from the sales of apps (70% for developers).
App Store boosted sales of the iPhone by up to 15%. Apple generated
revenues continuously through app sales from the increased iPhone users.

INSEAD Blue Ocean Strategy Institute 2012

RESULTS
US $ billion

70
60
50
40
30
20
10
0
2007

2008
Total net sales

2009

2010

iPhone and related products and services

By 2010, Apple has 51% of the profits of the global mobile phone
industry, with just 22% share of revenue and only 4% market share (units
sold). By 2011, over 100 millions iPhones were sold worldwide.
App Store hit 10 billion downloads from over 300,000 apps available.
INSEAD Blue Ocean Strategy Institute 2012

iPAD (2010)
Reconstruction of the Personal Computer Industry

The Personal Computer Industry in the late 2000s

Low PC sales growth


Global competition
Commoditization of PC: R&D arms race & price war
Segmentation strategy
Netbook: Low-end laptop
Threats from substitutes: smartphones

Strategy Canvas of the PC Industry

Offering Level

High

Low

Price
Hardware
Feature

Technical
Specs

Functions

Ease of
Viewing

Portability
Ease of Use &
Non-PC functions
(e.g. Phone & HandIntuitive Navigation
held Gaming)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the PC Industry

Offering Level

High

Netbook

Low

Price
Hardware
Feature

Technical
Specs

Functions

Ease of
Viewing

Portability
Ease of Use &
Non-PC functions
(e.g. Phone & HandIntuitive Navigation
held Gaming)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the PC Industry

High

Offering Level

Standard PC
Netbook

Low

Price
Hardware
Feature

Technical
Specs

Functions

Ease of
Viewing

Portability
Ease of Use &
Non-PC functions
(e.g. Phone & HandIntuitive Navigation
held Gaming)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of the PC Industry

Smartphone
High

Offering Level

Standard PC
Netbook

Low

Price
Hardware
Feature

Technical
Specs

Functions

Ease of
Viewing

Portability
Ease of Use &
Non-PC functions
(e.g. Phone & HandIntuitive Navigation
held Gaming)

INSEAD Blue Ocean Strategy Institute 2012

iPad
Apples blue ocean strategic thinking:
Instead of further segmenting within the PC industry, can we
create a third category that is neither PC nor Smartphone?
Instead of offering high-valued laptops or lower-valued
netbooks, can we make a new product that provides
breakthroughs in value for PC users?

INSEAD Blue Ocean Strategy Institute 2012

iPad
Apples blue ocean strategic thinking:
Instead of further segmenting within the PC industry, can we
create a third category that is neither PC nor Smartphone?
Instead of offering high-valued laptops or lower-valued
netbooks, can we make a new product that provides
breakthroughs in value for PC users?
Eliminate

Raise

Hardware features

Ease of viewing
Ease of use, intuitive navigation
Portability
Non-PC functions (e.g. handheld gaming,
e-book reader)

Reduce

Create

Technical specs (e.g. speed, storage

Style & Fun


Hardware add-ons (e.g. SD card reader,

capacity, memory)

Functions (using embedded software


applications)

physical keyboard)

Customization through App store


INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPad

Offering Level

High

Low

Price
Hardware
Feature

Technical
Specs

Functions

Ease of
Style & Fun
Portability
Customization
Viewing Ease of Use
Hardware via App Store
Non-PC
& Intuitive
Add-ons
functions (e.g.
Navigation
Phone & Handheld Gaming)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPad

High

Offering Level

Smartphone
Netbook

Low

Standard PC
Price
Hardware
Feature

Technical
Specs

Functions

Ease of
Style & Fun
Portability
Customization
Viewing Ease of Use
Hardware via App Store
Non-PC
& Intuitive
Add-ons
functions (e.g.
Navigation
Phone & Handheld Gaming)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPad

iPad
High

Offering Level

Smartphone
Netbook

Low

Standard PC
Price
Hardware
Feature

Technical
Specs

Functions

Ease of
Style & Fun
Portability
Customization
Viewing Ease of Use
Hardware via App Store
Non-PC
& Intuitive
Add-ons
functions (e.g.
Navigation
Phone & Handheld Gaming)

INSEAD Blue Ocean Strategy Institute 2012

Strategy Canvas of iPad


Eliminate

Reduce

Raise

Create
iPad

High

Offering Level

Smartphone
Netbook

Low

Standard PC
Price
Hardware
Feature

Technical
Specs

Functions

Ease of
Style & Fun
Portability
Customization
Viewing Ease of Use
Hardware via App Store
Non-PC
& Intuitive
Add-ons
functions (e.g.
Navigation
Phone & Handheld Gaming)

INSEAD Blue Ocean Strategy Institute 2012

iBook Store (2010)

Read e-books through iBooks apps

Own the collection of ebooks in iBooks


Read in color with full audio, video support
Turn pages by tapping the display, adjust brightness, font and its size; bookmark pages; find
vocabulary in the dictionary

A new market space for iTunes

Partner with established book publishers, individual publishers & authors


Easy and convenient to purchase, download, and synchronize with iPad

Compelling buyer value

Easy and simple to browse, purchase, download, and manage ebooks


Free sample before purchasing a book
Free books
Priced the same as in other ebook stores (e.g. Amazon) and paper version

Milestones (as of Feb.2011)

100 million ebooks were downloaded via iTunes iBook store


2500 publishers in its store
Apple had more than 200 million Apple ID accounts
INSEAD Blue Ocean Strategy Institute 2012

The Reinforcing Blue Oceans of Apple


MP3 player
industry

iPod

INSEAD Blue Ocean Strategy Institute 2012

The Reinforcing Blue Oceans of Apple


Music
industry

MP3 player
industry

TV
movie

iTunes
Music

iPod

INSEAD Blue Ocean Strategy Institute 2012

The Reinforcing Blue Oceans of Apple


Music
industry

MP3 player
industry

TV
movie

iPhone

Mobile phone
industry

iTunes
Music

iPod

INSEAD Blue Ocean Strategy Institute 2012

The Reinforcing Blue Oceans of Apple


Music
industry

MP3 player
industry

iPhone

TV
movie

iTunes
Music

Mobile phone
industry

App
Store

iPod

INSEAD Blue Ocean Strategy Institute 2012

The Reinforcing Blue Oceans of Apple


Music
industry

MP3 player
industry

iPhone

TV
movie

iTunes
Music

Mobile phone
industry

App
Store

iPod
Personal Computer
industry

iPad

INSEAD Blue Ocean Strategy Institute 2012

The Reinforcing Blue Oceans of Apple


Music
industry

MP3 player
industry

iPhone

TV
movie

iTunes
Music

iPod
Personal Computer
industry

Mobile phone
industry

App
Store

iBook
Store

iPad

INSEAD Blue Ocean Strategy Institute 2012

The Reinforcing Blue Oceans of Apple


Music
industry

MP3 player
industry

iPhone

TV
movie

iTunes
Music

iPod
Personal Computer
industry

Mobile phone
industry

App
Store

iBook
Store

iPad

INSEAD Blue Ocean Strategy Institute 2012

The Reinforcing Blue Oceans of Apple


Music
industry

MP3 player
industry

iPhone

TV
movie

iTunes
Music

iPod
Personal Computer
industry

Mobile phone
industry

App
Store

iBook
Store

iPad

INSEAD Blue Ocean Strategy Institute 2012

Apples Portfolio of Businesses on the PMS Map

Pioneer
iMac

Migrator

Macintosh

Settler
1998
Unnamed circles represent Apples computer peripherals, ancillary hardware, software and services.
INSEAD Blue Ocean Strategy Institute 2012

Apples Portfolio of Businesses on the PMS Map

Pioneer

iPod

iTunes
Store

iMac

Migrator

Macintosh
Macintosh

Settler
1998

2002

Unnamed circles represent Apples computer peripherals, ancillary hardware, software and services.
INSEAD Blue Ocean Strategy Institute 2012

Apples Portfolio of Businesses on the PMS Map


iPhone

Pioneer

iPod

iTunes
Store

App
Store

iTunes
Store

iMac

Migrator

Macintosh

iPod

Macintosh

Macintosh

Settler
1998

2002

2008

Unnamed circles represent Apples computer peripherals, ancillary hardware, software and services.
INSEAD Blue Ocean Strategy Institute 2012

Apples Portfolio of Businesses on the PMS Map


iPhone

Pioneer

iPod

iTunes
Store

App
Store

iTunes
Store

App
Store

iPad

iPhone

iTunes
Store

iMac

Migrator

Macintosh

iPod

Macintosh

Macintosh

Macintosh
iPod

Settler
1998

2002

2008

2011

Unnamed circles represent Apples computer peripherals, ancillary hardware, software and services.
INSEAD Blue Ocean Strategy Institute 2012

Apples Portfolio of Businesses on the PMS Map


iPhone

Pioneer
iMac

Migrator

iTunes
Store

iPod

Apple
Store

Macintosh

App
Store

iTunes
Store

App
Store

iPad

iPhone

iTunes
Store
Apple
Store

iPod

Apple
Store

Macintosh

Macintosh

Macintosh
iPod

Settler
1998

2002

2008

2011

Unnamed circles represent Apples computer peripherals, ancillary hardware, software and services.
INSEAD Blue Ocean Strategy Institute 2012

Apples Historical Net Sales by Product (US$ billion)


120

iPad and related products and


services

100

iPhone and related products


and services
80
Other music related products
and services
iPod

60

SoQware, service, others sales


40
Peripherals and other
hardware
20

Total Macintosh net sales

0
2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

INSEAD Blue Ocean Strategy Institute 2012