This document provides a case study on Apple Inc. conducted by Aman Sehgal for their MBA program. It discusses Apple's founding in 1976, the history and evolution of its product lines including Mac computers, iPhones, iPads and services like iTunes. It also examines Apple's business model of designing hardware and software for seamless integration, key competitors, large market share, and recommendations around pricing, R&D investment, customer engagement and business model revisions.
2. Introduction To Company
Apple Inc. (formerly Apple Computer, Inc.) is an American multinational corporation that designs and sells
consumer electronics, computer software, and personal computers.
The company's best known hardware products are the Macintosh line of computers, the iPod, the iPhone and the
iPad (Apple calls its computers Macintoshes or Macs, and it calls its laptops MacBooks.
Their popular line of mobile music players are called iPods and a smart phone they have released
is called the iPhone.).
Its software includes the OS X and iOS operating system; the iTunes media browser; and the ilife and iWork
creativity and production suites.
Apple was founded by Steve Jobs ,Steve Wozniak and Ronal 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 towards consumer electronics .
It’s headquarters are in California .
3. How Apple Started
According to Steve Jobs, Apple was so named because Jobs was coming back from an
apple farm and he was on a fruitarian diet, he thought the name was fun, spirited and
not intimidating.
Apple was founded by Steve Jobs ,Steve Wozniak and Ronal Wayne
on April 1 , 1976 to develop and sell personal computers
Steve jobs started apple when he was in his parents garage with the woz in his 20’s
They all worked hard and in 10 years they has grown this company into a 2billion company
with 4000 employees/
4. Categories Of Apple Products
Mac computer’s with the software embedded as Macintosh or Mac.
iPhone and I pad's having enough capability to do any heavy task with the CPU working and a
larger touch screen with the software enabled as IOS.
Apple Watch which has multiple functions including blood pressure monitor and heart rate data,
Real time fitness tracking and many more with GPS enabled services
Apple TV has a setup box and streaming media device which has voice commands enabled
capabilities and cam integrate with other devices via Air play.
Apple Air tag which is a small tracking device in which it is going to be attached at the product,
bag or something which a normal user in his day to day life forgets where did he kept his
precious items, checking the Realtime location and providing onto your apple devices.
Vision Pro is a mixed reality headset capable of visualizing virtual reality and runs on the visions
operating system and the user interface is controlled by eyes, hands and voice.
Services include purchasing media consumption on any of the above listed apple products like
iTunes which is a software for having music on go and other services like having icloud storage
used to keep data intact in cloud storage.
6. i. Apple leverages its unique ability to design and develop its own operating systems,
hardware, application software, and services to provide its customers with products and
solutions with innovative design, superior ease of use, and seamless integration.
ii. Apple makes money by designing, manufacturing, and selling smartphones, tablets, personal
computers, wearables, and accessories. Their main products include iPhones, MacBooks,
iPads, Apple Watch, AirPods, and the Apple TV.
iii. They also generate revenue by offering subscription services like their iCloud cloud
services, Apple TV+ subscriptions, Apple Arcade, and iTunes. The company recently
announced its plans to start hardware subscription services for its products.
iv. Furthermore, Apple makes money when the users of its products pay fees for the extension
of their warranties. In addition to their products, they also sell compatible third-party
accessories and apps. As a passive revenue source, Apple also makes money through in-
app purchases on iPhones, and app sales on their App Store — they take a 30% cut from
every transaction.
v. Their largest and most profitable revenue source is the sales of their products, however, their
subscription services generate the highest gross margins in comparison to product sales.
7. Market Share
• The Statistics mentioned in
the image is as per 2022
because the 2023 model is
still need to be introspected
as we can see the pie chart
it clearly indicates whether
there are many competitors
in this segment but still
their business strategy and
model is so full of
Research and Development
that it’s has already
captured 62 percent in
2022 jumping at least 5
percent than 2021.
10. Apple Ecosystem/Features of Ecosystem
1. Sync Everything with the iCloud Drive
2. Multiple Monitors Made Easy
3. Airdrop “Forget Cables”
4. Handoff, One pair of headphone for all
your devices
5. iCloud photos-Your pictures everywhere,
anywhere
6. IMessage and Facetime get’s you
connected.
11. Recommendations
According to best of my knowledge I considered to give my personal opinions to the Apple Inc.
Pricing could be the game changer for the apple company however we know that their single high end model
has a cost of making around 30k-45k however they sell it for around 100000-160000, that’s a huge money a
middle class person can spent into an simple device. So apple is the biggest company to touch 3 trillion dollar
but they should drastically drop down their pricing in order to remain ahead of competition.
Investing in Research and Development as we know that android market is huge and are constantly evolving
in technology so Apple Inc. has a superb eco system but the consumer ask for the feature but the android has a
better feature based segment. So I think to give recommendation to apple regarding R&D.
Improve Customer Engagement- The company should allow it’s prospective customer’s to get engaged with
the ideas and views and provide it to them, the company should accept the views of the general public ,its
customer and then ask what the higher percentage of people want into it’s product.
Business model Revision-It’s mandatory made by the government to apply type-c port for every product into
it’s model for iPhone as it would reduce carbon emissions but apple is apple they modify the type c port and if
any third party cable is going to charge the product, it would reject the cable, the product can only be charged
by the apple certified cable only, which needs to be changed as soon as possible.