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Business Model Canvas Report on Apple Inc.

Executive Summary:

This report has been dedicated to discuss the business canvas model of Apple Inc., one of the
world’s largest electronics and telecommunication devices manufacturers. In this regard, the key
partners of the business have been discussed and along with a list of suppliers as well. The key
services provided by such partners include the manufacturing, assembly and distribution of
company’s products. The company is creating value through provision of latest technology
products and by handling customers’ needs and complaints with the help of establishing Genius
Bars. The company distributes its products with the help of different retail stores, retail outlets
and online stores. It is operating with many sources amongst them the key sources are the people
who are employees of the company, its physical assets and intellectual properties. Moreover, the
biggest source of revenues for the company is the sale of iPhones followed by Macs and iPads.

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Catcher Technology (one of top maker of magnesium and aluminum casings). Key Partners 1. Publishers and Music. TPK Holdings (world’s largest touch panel supplier by volume).  Provision of assembly services. 10. 3. 2. Quanta Computers (iMac and Macbook computer manufacturer).  Provision of manufacturing facilities. n. Samsung Electronics (world’s largest memory chip maker).2 Key suppliers The suppliers of Apple are many but top 200 suppliers supply the 97% needs of the company which include assembly. 4. Apple has strong and close relationships with its 2 . Intel (Manufacturer of microprocessors). 1. with most of them belong to Asian countries. Cellular services providers. 1.1 Key partners and their key activities The key partners of Apple include: manufacturers.  Selling of company’s products. AT&T (one of the biggest seller of iPhones).d): 1. 8. 5. Television and movie industries. manufacturing and supply of material. 7. Toshiba (supplier of LCD panel and flash drivers). Wintek (supplier of touch screen).  Software Development Here is a list of top ten partners of the company along-with the key activities performed by them for company (CNBC. 9. Foxconn Technology Group (world’s largest electronics manufacturer). 6. Apple store Developers. They work under strict rules and regulations to meet and exceed the quality demanded and expected by the customers. Verizon (one of the biggest seller of iPhones). They do a variety of activities for Apple including:  Provision of raw material to company.

Japan  Asia Vital Components Ltd. Some key suppliers of Apple include:  AAC Technologies Holding Inc. China  Alps Electric company Ltd. USA  Advanced Semiconductor Engineering Inc. Malaysia  Analog Devices Inc. China 3 . China  China Circuit Technologies Ltd. China  Cheng Loong Corp. Taiwan  3M Co.supplier to provide them the needed support so that they can operate with responsibility. China  AT&S China  Catcher Company Ltd. China  AKM Semiconductor Inc.

)  Software (designs and programs) 2.  manufacturing. Key Activities: The key activities which the company performs include:  Software development. 2012). flash drives. 4 . better understands the demands and needs of customers and is always focused on every opportunity which is created (Moorman.1 Activities required for Value Propositions: As pointed above. Apple ignores critique. LCD panels.  It pays most of its attention on quality control department All these activities and there are many other which has led to create value proposition for company.  distribution and  quality control 2. microprocessors etc. When it comes to marketing. As for instance:  The marketing efforts of Apple are highly unique which contribute in differentiating Apple from the rest of the brands.  design.  It selects best suppliers and works closely with them.  It hires the team of experts for manufacturing and assembling. touch screens. there are a lot of activities performed by the company which ultimately lead to create value proposition for the company.3 Key resources acquired by the Apple from its partners:  Hardware (memory chips.1.

2. Thus. Key Resources The different resources which the company is using to create value proposition are grouped under the following heads:  Intellectual  Human  Physical 5 . retail stores etc. retail outlets.2 The Distribution Channels: The distribution channels of the company are numerous including. The key activities of the company in relation to customer relations include the followings:  Establishment of Genius Bars to deal with customer’s complaints.  Heavy advertisements to provide information to both existing and potential customers. the company has reached to launch iPhone 7 recently which has grabbed the acceptability of a lot of customers all over the world. Being key component of the overall supply chain circle of company. 2.3 Customer Relationships: The company performs a number of activities for maintaining good customer relations.  Product warrantees and guarantees etc. This is the reason. the distribution channel also perform some key activities for the company including:  Storing of products  Selling of products  Providing safety services to products 2. This is the reason.4 Revenue Streams `The company is earning most of its revenues from the sale of iPhones (Statista. 2016). it is paying more attention towards the development and success of every new model of iPhone. the company has always met and exceeded their demands and has created value proposition in the eyes of customers. online stores. 3.

d):  More than 300 retail stores in 12 countries of the world.1 The Distribution Channels (a key resource for company): The company acquires a number of direct and semi-direct channels to distribute its products which include the followings (Ding.  Hundreds of retail outlets all over the world 6 .  Thousands of online stores in more than 37 countries for selling hardware and software.3. n.

In order to deal with customers complaints and to serve them better. This is done because Apple knows how to deal with customers.2 Customer Relationships: Customer handling at Apple has proved to be a great source for company’s success. This is the reason the products of Apple are marketed over without their confirmation of being accepted by the customers (Heisler. various customers handling Genius Bars have been established. It is indeed a secret weapon for success of company. 7 . Customers bring their products at these Bars and the experts at such places work to fix the issues raised by customers. 2015).The structure of company’s distribution channels takes the following form: Apple Direct Sales Third Party Online Store Retail Store force Wholesalers Added Value Retailers Retailers Retailers Final Customers Final Customers Final Final Final Customers Customers Customers 3.

3 Revenue Streams: Revenues of Apple from first quarter of 2012 to 3 rd Quarter of 2016 Source: Statista.3. 4. 2016). Thus. Value Propositions: The main value propositions of Apple include:  Design  Performance  Brand/status  Convenience/Usability 8 . the company needs to pay and is actually paying more attention towards iPhones segment (Statista. 2016 The source of revenues for the company is the sale of iPhones in all quarters starting from first quarter of 2012 to third quarter of 2016 whole Mac and ipad alternatively stands at number 2 or 3 in this race.

following is the level of satisfaction of Apple’s customers against its different offerings: 9 . tablet. is user friendly. As per American Customer Satisfaction Index.  Macbook.e. 2014):  laptops and PCs with more entertainment and fun which are to be used at homes while with more software which are to be used for professional purposes.4. for phones.  Reduced Risk: Warrantees and guarantees offered by Apple on almost all of its products saves customers from risk. ipod and Pcs is simple different from other brands which are liked very much by the customers. Pcs.  Design: The designing of Apple’s phone.4 Customer satisfaction: The needs of Apple’s customers are fully satisfied as the company got 80 points out of a total of 100 points in this regard.  Convenience: the products of Apple are user friendly and every new model of the company for every product i. iPhones and iPads are offered. These include (Ali. 4.3 Bundles of products and services offered to each Customer Segment Apple has made different types of market segmentations and delivers goods accordingly. Apple makes it a reality.  For Upper income group iPhone 6plus and iPhone 7 is offered 4. iPads and iPhones are offered to younger people  For business professionals Mac. 4. Now every new feature which the customers want but it is in their mind. tablets etc.2 Solution to Customers Problems: By providing a variety of products and by continuously improving its offerings through launch of new model for each product (for example iPhone 7 for mobile devices) have helped to meet the growing and unsatisfied needs of customers.1 Value delivered to customer:  Improved product: Increased storage and better speed are the prime features of Apple’s offerings.

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dollars). 2016] 3. n. 2016.com/sites/christinemoorman/2012/07/10/why-apple-is-a-great- marketer/#124202966cb0 [Accessed: 19th Sep. 2014. Moorman. Apple Distribution. Statista.org/news-and-resources/customer-satisfaction-reports/reports- 2016/acsi-telecommunications-report-2016 [Accessed: 19th Sep. Apple’s secret weapon: Incredible customer service.theacsi. Available at: http://bgr.com/euro/supplier- responsibility/b/generic/pdf/Apple_Supplier_List_2015. [Accessed: 19th Sep.com/statistics/382136/quarterly-segments-revenue-of-apple/ [Accessed: 19th Sep. Y. D. Ali.com/2011/08/25/10-Significant-Apple-Business-Partners.d.cnbc.html.scribd. Why Apple Is a Great Marketer.d. 2015. Revenue of Apple by operating segment from the first quarter of 2012 to the third quarter of 2016 (in billion U.genius-bar/ [Accessed: 19th Sep. 10 Significant Apple Business Partners. 2016] 6. 2016] 5. American Customer Satisfaction Index.apple. 2016] 8. CNBC. Available at: https://prezi. ACSI Telecommunications Report 2016. n. 2016] 4.forbes. Segmentation Strategies used by Apple and Samsung.pdf [Accessed: 19th Sep. 2015. 2016] 7.References: 1.com/2015/05/26/apple-customer-service.S. Available at:https://www. Available at: http://www. 2016. Available at: https://www. 2016] 2. Available at: http://www. C. Heisler. D. Apple Suppliers list.com/doc/94622145/Apple-Distribution [Accessed: 19th Sep. Available at: http://www. 2012.com/635kt-vpajlq/segmentation-strategies-used-by-apple-and-samsung/ [Accessed: 19th Sep.statista. Available at: https://www. Ding. 2016] 11 . Apple Suppliers Responsibility.