Apple Inc.: End of Semester Project

Apple Inc. is a publicly traded organization. It was founded in 1976 by Steve Jobs and Steve Wozniak who had a vision of creating personal computers that every individual could own. According to Angelique Richardson who published her article on the business references services website, Simply put, they wanted a computer that was user-friendly (Richardson 2008). The company has since grown to become a technological giant throughout the world. The IPhone is now a family name and staple for millions of individuals. It has shaped and changed the way that people communicate, conduct business, and lead their lives.

While Apple began as a manufacturer of personal computers, they have branched out into almost every technological field with their devices and operating systems. Apple manufactures and markets in addition to computers, cellular phones, music devices, watches, and tablets.

Apple strategy

Goals for Apple Inc. include, increasing revenue from existing products by branching out into different markets, such as the business industry. Produce new and innovative products regularly that will make life easier for consumers. Eliminate obstacles to expansion and growth such as cellular carriers.

Keys to success

• Offer the most up to date technology
• Give consumers an opportunity to share their needs, then meet them
• Create quality devices
• Stand behind our products
• Provide excellent customer service
• Continue to expand the Apple ecosystem to accommodate every technological need

Competitors

The cellular and mobile device industry is about as competitive as they come. Samsung remains Apple's biggest competitor. They are neck and neck with Apple and consumers with smartphones are either an Apple person for life or an Android person for life. The ultimate goal is to gain the consumers who use Android devices and operating systems. According to Global Data, Apple has a leading market presence across all geographic regions it serves. Apple is the largest Smartphone vendor in the world followed by Samsung Electronics (Samsung). During January -March 2015, the net profit of Apple increased by 33% while Samsung's net profit decreased by 39% as consumers switched to bigger iPhones (Apple Inc. - Financial and Strategic Analysis Review n.d.).

Android does offer much more functionality on their devices than does Apple. With the Apple operating system, much is controlled by Apple and cannot be modified to meet the consumers need. Although, Apple has given a few more freedoms in recent days including ability to remove applications that users find unnecessary. It seems that Apple has heard the requests of consumers and made adjustments over the years but it does not come close to the options from Android operating system. There is a drawback for all of that freedom with Android however. It makes consumers more vulnerable to hacking. The Apple operating system is controlled by Apple and apps are monitored for safety.

Production and manufacturing

The devices produced and manufactured by Apple usually come from China. That is where they are assembled, but the raw materials come from all over the world and organizations such as Corning: Gorilla Glass screen overlay; based in the U.S., with locations in Australia, Belgium, Brazil, China, Denmark, France, Germany, Hong Kong, India, Israel, Italy, Japan, South Korea, Malaysia, Mexico, Philippines, Poland, Russia, Singapore, South Africa, Spain, Taiwan, The Netherlands, Turkey, the U.K., and the United Arab Emirates (Costello n.d.). Also, LG: LCD screen; based in South Korea, with locations in Poland and China and Samsung: A-series processor; based in South Korea, with locations in the U.S (Costello n.d.). While all of these companies in all of these countries are necessary for the raw materials, the final assembly and finished products come from China.

Distribution and retail channels

Apple Inc. has big plans to continue to lead the market in mobile technology. The current mission statement is as follows, Apple designs Macs, the best personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store. Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad (Blodget 2013). This may not list many of the goals for Apple's future, but they do look toward the future and their continued mobile media and computing devices.

Additionally, Apple's CEO Tim Cook shared some of his thoughts about the mission and vision for Apple. As quoted in Fortune, We believe that we are on the face of the earth to make great products and that's not changing. We are constantly focusing on innovating. We believe in the simple not the complex. We believe that we need to own and control the primary technologies behind the products that we make, and participate only in markets where we can make a significant contribution. We believe in saying no to thousands of projects, so that we can really focus on the few that are truly important and meaningful to us. We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot. And frankly, we don't settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when we're wrong and the courage to change. And I think regardless of who is in what job those values are so embedded in this company that Apple will do extremely well (Lashinsky 2009).

Goals for Apple Inc. include, increasing revenue from existing products by branching out into different markets, such as the business industry. Produce new and innovative products regularly that will make life easier for consumers. Eliminate obstacles to expansion and growth such as cellular carriers.

Apple specializes in new and innovative technology. In building a platform on which to run their mobile devices, the operating system, they have created a way to keep all of their products under their umbrella. For example, if you buy a TV from Sony, you would not need to use the Sony Cable Company and Sony internet system to run your TV. With Apple products, you certainly do need those background programs and systems in order to keep your device running. So Apple has created a customer base that they will keep permanently if the consumer is to use their product.

Just having the customer base is one thing, but Apple needs to keep its customer base. In order to do that, they need to be constantly changing, upgrading, and improving the technology. So far, they have been able to accommodate that need. Apple is the leader in cellular and mobile technology. According to an in International Business Times, The company pulled in $18 billion in earnings, grabbing a hold of 93 percent of the handset industry's total measurable profits, according to a report from New York City-based investment firm Canaccord Genuity (Elise 2015). In the tradition of Apple, they launch a new phone or device approximately every two years. In between they will offer variations of products that improve it based on consumer satisfaction. The most recent device to launch is the Apple watch. It has been slow to get off of the ground and production took longer than expected, but it does look like something that consumers are going to buy. The Apple watch offers customers the ability to view and respond to text message; they can make calls, check their email, in addition to many other great features. It also serves as an activity tracker, allowing customers to view their heart rate, steps taken, and monitor their sleep habits.

Additionally, new to Apple customers is the Apple Pay system. This is offered to customers with an iPhone 6 or higher and allows customers to make purchases through Apple's secure framework. Apple is working with merchants to get the services up and running but it will potentially eliminate the ability for credit card information to be stolen thanks to Apple unique codes for each transaction (Laudon & Traver pg. 314). The merchant does not view the customer's credit card information at any point during the transaction.

No other mobile technology company can offer their consumers a comprehensive ecosystem of products that go from the point of sale to your bed at night. Apple markets their products and focuses marketing strategies on a broad number of consumers. They do not market strictly to the phone companies or businesses but to the consumers directly. They have found that people who are 35-49 years of age are more likely to own an iPhone (Keizer 2012). Additionally, while the younger consumers were the target market for the iPod, its popularity is waning since the iPhone can be a phone and an iPod all in one. It seems also, that the older generation, especially those with children would be the best market to target.

In his article, Apple's biggest fans are older consumers, Greg Keizer reports, According to the company's BrandIndex, since mid-July 2011, Apple's biggest supporters are consumers 35 years and older. Meanwhile, the younger age group of 18 to 34 -- once the demographic most smitten with Apple -- has trended downward since then (Keizer 2012). Consumers between the ages of 35-50 are the primary market. They are the ones who are more likely to be stable and have the income needed to afford the devices as well as the cellular data to use them. The secondary market are the 19-25 year olds who will likely purchase new devices less regularly but still maintain their brand loyalty. Of course, within those target markets there are other specific details about these customers. They must be able to afford the extremely high price of the devices. Apple has never chosen to lower prices even if it would create a larger customer base. This is a good business decision and a potentially bad business decision. They reduce the risk of inconsistent customers, those who cancel without reason and could end up costing the cellular provider more money. This would likely come back on Apple with lower sales and a potentially difficult working relationship with cellular providers.

Recently, cellular providers have chosen to end the subsidy programs. They no longer offer customers free or greatly reduced phones in exchange for a new two year contract. This will potentially hurt Apple since a lot of people could only afford to upgrade or buy Apple thanks to the reduced price.

Apple has always competed with Android. They offer very similar functionality with their devices and operating systems and have been neck and neck popularity wise for years. Apple offers some things that Android does not. Apple has the Apple ecosystem that keeps information secure and gives customers devices that work harmoniously.

Apple is heavily dependent on cellular providers such as AT&T and Verizon. They need these providers to give their customers the ability to use the devices. Without cellular calling capabilities and cellular data, Apple iPhones would have no use. Therefore, in order to get a better grip on supply chain and offer their customers an even more comprehensive ecosystem, a goal is to establish their own system for offering cellular services to customers. There are many ways that they can accomplish this goal. They can deal with the primary cellular providers and come to an agreement for tower usage, come up with a plan to use satellite technology, purchase an already large cellular provider such as AT&T, or build their own network. The last option would take the longest and potentially cost the most money.

With the already excellent customer service, reliable technology, and customer base, Apple could grow and spread out into every part of the internet and cellular world. Since Apple is such a giant in the technology world, and is so lucrative, they should acquire AT&T

When moving into the wireless cellular industry, Apple will need to have an online presence, as well as brick and mortar locations for customer assistance. They could easily transform their existing locations to include the wireless operations. More stores would need to be erected and customer service call centers opened.

As stated above, the goals for Apple Inc. include, increasing revenue from existing products by branching out into different markets, such as the business industry. Produce new and innovative products regularly that will make life easier for consumers. Eliminate obstacles to expansion and growth such as cellular carriers. In order to accomplish these goals, Apple must continue to support innovation from their IT professionals, offer incentives for new ideas for their employees, and foster a customer is always right attitude. Amazon.com has had great success with consumer loyalty and satisfaction with their excellent customer service practices. First, Apple should make improvements within the organization. Cut unnecessary costs, eliminate positions that are unneeded or duplicated, and encourage employees to do their best every day. Next, Apple will need to survey consumer needs and wants. This can be completed with online surveys, reviewing suggestions on social media outlets, and asking employees what they think would make the technology better. Once they have a comprehensive idea of what consumers want, they will need to plan how to build, design, and implement those changes. Additionally, the goal of Apple offering internal cellular services will require additional time. A reasonable timeframe would be 10-15 years for a complete and global cellular network.

References

Apple Inc. (n.d.). Business Insights Global. Retrievedfrom https://bi.galegroup.com.centralpenn.

idm.oclc.org/global/company/300559?u=centpenn_itc1

Apple Inc. - Financial and Strategic Analysis Review. (n.d.) Global Data. Retrieved from https://callisto.ggsrv.com/imgsrv/FastFetch/UBER1/300559_GDTC27353FSA

Blodget, H. (August 2013). Apple's 'Mission Statement' Is Making People Worry That The Company Has Gone To Hell. Business Insider. Retrieved from https://www.businessinsider.com/apples-new-mission-statement-2013-8

Costello, S. (n.d.) Where Are iPods & iPhones Made? About Tech. Retrieved from https://ipod.about.com/od/glossary/f/where-is-ipod-manufactured.htm

Elise, A. (February 2015). Apple Dominates Smartphone Industry With 93 Percent Of The Profits. International Business Times. Retrieved from https://www.ibtimes.com/apple-dominates-smartphone-industry-93-percent-profits-1811324

Keizer, G. (August 2012). Apple's biggest fans are older consumers. Computer World. Retrieved from https://www.computerworld.com/article/2505764/apple-mac/apple-s-biggest-fans-are-older-consumers.html

Lashinsky, A. (Jan 2009). The Cook Doctrine at Apple. Fortune. Retrieved from https://fortune.com/2009/01/22/the-cook-doctrine-at-apple/

Laudon, K., & Traver, C. (2015). E-commerce: Business, technology, society (Eleventh ed.). Boston: Pearson Education.

Moren, D. (May 2015). Could Apple become its own cellular carrier? Macworld. Retrieved from

https://www.macworld.com/article/2919139/could-apple-become-its-own-cellular-carrier.html

Robinson, A. (August 2015). Apple Inc. Company Background and History. Unpublished Assignment. Central Penn College

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