Apple Company

Apple Company

The Apple Company is one of the most successful and innovative technology company that emerged in the past decades. Apple, Inc has a superb reputation for bringing to market various products such as Macintosh desktop and portable computer, iTunes and iPod, and the most recent product the iPhone. The success of the Apple Company can be traced to the management of Steve Jobs who was the founder and the CEO. His philosophy was to create efficient products that utilize innovative technology. Nevertheless, the company has faced challenges due to competitive market landscape. This paper evaluates the business model and revenue model of the Apple Company.

The Apple Company was incorporated in 1976, with an aim of selling and distributing computers (Kenney 2007, 114). However, the company has expanded in sales, revenues, and products. Currently, the company distribute different products such as iPod, iPhone, and portable computers just to name a few.  Since 2001, Steven Job transformed the company into a brand that distributes best personal computing devices and portable mobile to consumers, educators, businesses, government agencies, and students through innovative software and hardware, internet offerings, and peripherals. The company targets various consumers such as home users, medium sized business, young generation, and education segment. The successful products line of the company comprises Macintosh, iPad, iPhone series, iPod series, and iMac. The following table outline the market analysis of the company in the mobile and PC industry.

Products Main Competitors
IPad Samsung, HP, Amazon’s kindle, and Dell
Operating System Microsoft Windows
iPod series Samsung, Microsoft’s Zune, San Disk, and Pandora among others
iMac and Macintosh HP, IBM, Dell, and Lenova

 

The Apple Inc mainly operates in the United States in different localities such as California and Cupertino. Although the company is successful in various ways it has various weaknesses. The table below presents the SWOT analysis of the company that helps one to understand how the company operates.

Strengths

  • Strong achievement in education, business, and young generation segment, thus increasing growth.
  • The brand is globally recognized.
  • Charismatic and visionary management team.
  • The company has a large segment of devoted and loyal clients.
  • Strong feasibility in the 21st century: Pioneer of high tech and innovative products such as iPad, iPhone, iPod, and Mac.
  • Desirability: The Company has attractive products that attract most consumers.

 

 Weaknesses

  • A reported failure of sales and revenues on two products namely Apple TV and Mac Mini.
  • The company has a higher price and lower market share compared to other competitors.

 

 

Opportunities

  • There is a constant growth of the mobile industry and PC industry.
  • More global expansion such Asian countries.
  • Growing demand of online music and portable computers.
  • Constant growth of energy efficient products.
 Threats

  • Stiff competition in the technology market.
  • More expensive products as compared to other competitors such as Microsoft, Nokia, and Dell.
  • Unpredictable global economic crisis.

 

 

 

 

To understand how Apple Company operates, it is important to understand its revenue model. Typically, the Apple Company utilizes unit sales type of revenue model. The company approximates how big the addressable market is and approximates the company’s market share. For instance, if the Smartphone market amounts to $20 billion annually and Apple Company have a 20% market share with its iPhone products, then that gives Apple Company and estimated $4 billion revenue from the iPhone product range (Kenney 2007, 113). Secondly, the company utilizes premium subscription for email list and websites with access to the company’s content. Users must agree to pay a certain fee to access online resources such as forums, guides, and videos. Thirdly, the company utilizes advertisements, in which it attracts companies to put adverts on their websites. This helps the company to obtain recurring revenue regardless the global economic condition. Lastly, the company has been innovating different products that attract many consumers. This has increased the company earnings and sales.

 

Bibliography

Kenney, Mattew. “The apple way: 12 management lessons from the world’s most innovative company”. Journal of Applied Management and Entrepreneurship 12, no. 1 (2007): 113-115, http://search.proquest.com/docview/203919095?accountid=45049 (accessed April 2, 2013).

 

 

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