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

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

 It hires the team of experts for manufacturing and assembling. better understands the demands and needs of customers and is always focused on every opportunity which is created (Moorman. Apple ignores critique.  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. flash drives.  design.  It selects best suppliers and works closely with them. 4 . Key Activities: The key activities which the company performs include:  Software development. When it comes to marketing. touch screens.1. As for instance:  The marketing efforts of Apple are highly unique which contribute in differentiating Apple from the rest of the brands.1 Activities required for Value Propositions: As pointed above. 2012). microprocessors etc. there are a lot of activities performed by the company which ultimately lead to create value proposition for the company. LCD panels.)  Software (designs and programs) 2.3 Key resources acquired by the Apple from its partners:  Hardware (memory chips.  manufacturing.

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

 Hundreds of retail outlets all over the world 6 .3. n.d):  More than 300 retail stores in 12 countries of the world.  Thousands of online stores in more than 37 countries for selling hardware and software.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.

2 Customer Relationships: Customer handling at Apple has proved to be a great source for company’s success. 7 . 2015). It is indeed a secret weapon for success of company. In order to deal with customers complaints and to serve them better. This is done because Apple knows how to deal with customers. various customers handling Genius Bars have been established. Customers bring their products at these Bars and the experts at such places work to fix the issues raised by customers.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. This is the reason the products of Apple are marketed over without their confirmation of being accepted by the customers (Heisler.

the company needs to pay and is actually paying more attention towards iPhones segment (Statista. 4. 2016).3 Revenue Streams: Revenues of Apple from first quarter of 2012 to 3 rd Quarter of 2016 Source: Statista. Value Propositions: The main value propositions of Apple include:  Design  Performance  Brand/status  Convenience/Usability 8 . Thus. 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.3.

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. tablets etc.  Reduced Risk: Warrantees and guarantees offered by Apple on almost all of its products saves customers from risk.3 Bundles of products and services offered to each Customer Segment Apple has made different types of market segmentations and delivers goods accordingly. 4. ipod and Pcs is simple different from other brands which are liked very much by the customers. Apple makes it a reality. for phones. These include (Ali. tablet.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.  Macbook. 4. Pcs. iPhones and iPads are offered. iPads and iPhones are offered to younger people  For business professionals Mac. As per American Customer Satisfaction Index. following is the level of satisfaction of Apple’s customers against its different offerings: 9 . Now every new feature which the customers want but it is in their mind. is user friendly.  Convenience: the products of Apple are user friendly and every new model of the company for every product i.e.4.  Design: The designing of Apple’s phone.1 Value delivered to customer:  Improved product: Increased storage and better speed are the prime features of Apple’s offerings.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.  For Upper income group iPhone 6plus and iPhone 7 is offered 4.

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

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