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Introduction
Steve Jobs and Steve Wozniak founded Apple Computers on April 1, 1976, to revolutionize how people regarded desktop computers. Broadcasting, iPhone, Apple Care, iCloud, digital content shops, and licensing solutions are among its commodities and offerings. Apple supplies consumers and organizations with the equipment, software, services, and infrastructure necessary to achieve their goals and objectives. According to Reuters.com (2023), Apple is currently valued at $2.303 trillion as of February 2023. Therefore, this makes Apple the most lucrative, inventive, and prosperous company in the world. In addition, Apple’s advertisement mix incorporates a premium pricing strategy with high profit margins. This internal business characteristic is a valuable asset since it maximizes earnings even when sales volumes are low, as in the case of MacBook machines. However, Apple clashes with corporations like Samsung, which similarly concentrate on advanced technologies. Apple has utilized vertical integration, which distinguishes Apple from its competitors and has resulted in significant advantages to remain competitive. This inherent benefit assists the organization in achieving actual application and hardware interoperability.
Company Overview (AAPL)
Apple, Inc. designs, manufactures, and sells handsets, desktop computers, notebooks, smart watches, and peripherals and provides a range of connected services. The company does business in the following geographical markets: Greater China, Europe, the Americas, Japan, and the Asia-Pacific Rest of the World. North and South America are included within the Americas category (Apple, 2023). The Europe category includes European nations and those in India, Africa, and the Middle East. Greater China includes mainland Hong Kong, China, and Taiwan. Asian and Australian countries comprise the section Rest of Asia-Pacific. Broadcasting, iPhone, Apple Care, iCloud, AirPods, Mac, Apple Watch, iPad, Beats devices, Apple TV, digital content shops, and licensing solutions are among its items and offerings.
Company History
Apple Company was established to operate in the technology industry. Apple Computers was established on April 1, 1976, by undergraduate dropouts Steve Jobs and Steve Wozniak, who aimed to revolutionize how people perceived desktops (Apple, 2023). Jobs and Wozniak desired to create portable computers for individuals to keep in their residences or workplaces. To put it more succinctly, they were looking for a machine that was easy to use. They began constructing the Apple I in Jobs’ basement in 1976 and marketed it with no monitor, controller, or case until 1977, when they opted to add these components (Altavilla, 2018). With the debut of the first-ever 3-D graphics, the Apple II transformed the technology world. In 1980, when Apple debuted, sales increased from $7.8 million in 1978 to $117 million (Altavilla, 2018). Wozniak quit Apple because he lost faith in the daily operations of Apple Computers.
Consequently, Steve Jobs appointed John Sculley of PepsiCo as president. Nonetheless, this strategy failed, and after a considerable dispute with Sculley, Jobs departed Apple in 1985 to pursue greater opportunities (The New York Times, 2023). He formed his firm, NeXT Software, and purchased Pixar from George Lucas. Pixar would become a significant achievement in the computer animation sector, producing films like A Bug’s Life, Toy Story, Monsters, Inc., and Finding Nemo (The New York Times, 2023). Apple continued to prosper throughout the remainder of the 1980s, and in 1990, it recorded its most enormous profits (The New York Times, 2023). Nevertheless, this was predominantly owing to the arrangements Jobs had established before he left, most significantly his agreement with Adobe, the originator of the Adobe Portable Document Format (PDF).
After reaching its high in 1990, Apple’s customer base declined gradually over the next few years. Garud et al. (2018) enumerated that by 1996, analysts felt the business was collapsing. Apple did not acquire NeXT Software, Jobs’ company, until 1997, when it sorely needed an operating system, and the governing board contacted Steve Jobs for assistance (Garud et al., 2018). Jobs was the interim CEO, or iCEO, as he termed himself, until he became the CEO legitimately in 2000 and chose to make alterations to Apple. He partnered with Microsoft to develop a Mac version of the company’s renowned office suite (Jobs, 2020). Immediately after this choice, the organization reached a turning point.
Jobs redesigned the PCs and released the iBook, succeeded by the market-leading MP3 player iPod. The iPhone, a touchscreen mobile phone unveiled in 2007, emerged as one of the most profitable items in the world, and the business has subsequently developed various variants (Jobs, 2020). Also fashionable are the iPad smartphone and the Apple Watch. Recent additions to Apple’s offerings portfolio include its payment method (Apple Card), Apple News for news, Apple Arcade for games, and Apple TV+ for broadcasting Apple-produced unique material. In 2018, the success of iPhones gave Apple the first firm to reach a valuation of one trillion dollars; two years later, Apple doubled that amount (Neate, 2018). Tim Cook, Apple’s current CEO, carries on Steve Jobs’ legacy following his death.
Products and or Services
iPod, iPhone, and iPad
Apple Inc. is responsible for developing and marketing the iPod brand of portable multimedia players and multi-purpose handheld platforms. The initial version was made available to the public on October 23, 2001, approximately eight and a half months after the Macintosh variant of iTunes was made available (Bajarin, 2022). Apple’s iPhone is a handset with a graphical client interface and integrates a personal computer, an iPod, a digital camera, and a mobile modem into one convenient package. Apple’s iPad is a touchscreen slate personal computer that debuted in 2010 (Bajarin, 2022). Apple has three different iPad product offerings: iPad, iPad mini, and iPad Pro.
Apple Watch, Apple TV, and HomePod
Apple Watch is a portable smartwatch that enables buyers to perform a multitude of duties, including as initiating and receiving calls, transmitting and viewing messages, and checking their email. Apple Inc. has produced a series of media player software packages known as the Apple TV app. These systems allow users to watch movies and television programs sent by Apple to customers’ electronic gadgets. It combines the user’s preferred streaming applications with Apple Fitness+, Apple TV+, Apple Music, and Apple Arcade in one convenient package (Bajarin, 2022). The HomePod is designed to be compatible with the Apple Music subscription model, and it features modulation schemes and eight speakers. Additionally, it is available in two colors: white and space gray. It is available concurrently with the HomePod Mini, a significantly more affordable model.
AppleCare and Apple One
AppleCare is a coverage service designed specifically for Apple products that protect users against gadget loss and damage. Even though the products come with a restricted guarantee for one year, customers may want extra insurance for a more extended time. It may be necessary to replace the entire device if it sustains specific damage, such as cracking the rear screen on an iPhone 14 (Team, 2021). AppleCare has the potential to considerably cut down on the costs associated with such repairs by requiring customers to pay only a threshold rather than the regular value. Apple provides a wide variety of services, and the cost of using each independently can quickly pile up. Apple’s multimedia and web solutions are included in the Apple One membership package, which requires a single monthly payment.
MacOS and iOS
Apple Inc. has been developing and marketing macOS, a UNIX operating system (OS) version. It is the default OS for Mac computers sold by Apple. It is the second most extensively utilized desktop OS in the marketplace for personal computers, behind only Microsoft Windows and clear of ChromeOS in terms of customer base. iOS is an acronym for “iPhone Operating System,” and Apple Inc. designed it specifically for its own hardware. It is the OS that runs on a variety of smartphones manufactured by the corporation, including the iPhone.
Apple TV+ and Apple Music
Apple TV+ is a broadcasting service that features exclusive content created by Apple. It began with a limited number of original series and films and has since progressed measuredly. Apple TV+ may not have the depth of Disney’s library or the number of offerings available on Netflix, but rather than focusing on quantity, it prioritizes quality. Apple TV+ can be purchased from Apple for $6.99 per month, or it is included in each tier of Apple One (Team, 2021). Apple Music is a music streaming solution with over 70 million songs available to users and is curated by humans (Team, 2021). Designers compile playlists, artists present radio sessions, and there is an overall emphasis on simple social elements.
Apple Arcade and Apple Fitness+
Apple’s first significant effort to get into the gaming industry was the creation of Apple Arcade. It is an offering that allows users to download more than 200 games whenever they want without making further purchases (Team, 2021). The Apple Arcade library cannot be accessed in any other way than through downloads, in contrast to other playing subscriptions. The companies that competed with Apple in this market focused on streaming video games, a trend that has not been widely adopted. Apple Fitness+ is a subscription-based workout service that includes videos of seasoned instructors and analytics displayed on-screen. Users who wear an Apple Watch can view their heart rhythm and other information on the TV display.
Apple Maps and Apple Pay
The mapping and navigation tool Apple Maps uses Apple’s in-house data about various locations worldwide. Due to inconsistencies in the map data provided by TomTom and other sources, the service was shaky when it was first introduced in 2012. In 2020, Apple began providing its proprietary mapping data to users in the United States and the United Kingdom (David, 2022). Apple Pay is an electronic payment option that may be utilized at NFC automatic teller machines and on websites compatible with Apple Pay. Users can keep several cards within their Apple Wallet, allowing them to pay for items quickly and easily without needing an actual card. Tokenized card numbers are used for each operation with Apple Pay, and all of the data that is kept is encrypted in its entirety.
Operations
Apple Inc.’s procedures entail the use of components of internal control to ensure the seamless functioning of all elements of the firm. Firstly, Apple Inc. utilizes inventory management as an operational decision domain. The firm employs many stock control techniques, including the digitized system, for optimal monitoring and oversight of commodities. The corporation also employs the first-in, first-out (FIFO) technique, which assures that older Apple item variants are acquired before the debut of new product versions.
Secondly, Apple’s distribution network administration is among the most effective and streamlined globes. The organization automates procedures and regularly monitors vendors to handle this operational decision area. This surveillance assesses provider capability, efficiency, and adherence to Apple’s Supplier Code of Conduct (Sodhi & Tang, 2019). The mechanization component is the primary strength of the company’s logistics plan. Thirdly, Apple’s approach and interface architecture highlight client requirements. For instance, company-owned and authorized-reseller storefronts are wide and have a minimalistic aesthetic to emphasize Apple products. Finally, Apple Inc.’s location plan is restricted and includes minimal vendor approval. However, most approved merchants are situated in urban hubs to optimize foot circulation and brand awareness. Currently, the enterprise has hundreds of locations in over 20 countries worldwide. Apple Stores have significant profits per square foot of commercial space in the USA despite the firm’s restricted methodology to supplier permission.
Vision
A statement of purpose is an inspiring description of a corporation or company’s utopian emotional potential. Apple’s vision is “To create the best technologies on the planet and to depart the world in a better condition than when we inherited it” (Apple, 2023). The statement of purpose thereby influences the firm’s decision-making, tactical administration, and activities. It ensures that each choice moves the organization closer to achieving its mission and objectives. The assertion includes two components: First, the concept describes Apple’s dominance in designing products; that is, from microchips, iPads, Macs, iPhones, and iPods, Apple provides the market with superior products (Abbott, 2021). The corporation maintains its item creation and development dominance by pursuing fresh techniques. Apple launched a new iPad Pro with an industry-leading M1 processor and superfast 5G in April 2021 (Abbott, 2021). Furthermore, Apple aspires to achieve zero net ecological footprints across all its businesses. In 2020, the firm presented a strategy to ensure that all Apple products are environmentally safe by 2030 (Abbott, 2021). Therefore, this tactic would see the business operate within its corporate social responsibility (CSR).
Mission Statement
A mission statement briefly describes an organization’s purpose, processes, main customers, and location. Apple’s mission is “To provide consumers with the greatest possible user engagement via breakthrough software, hardware, and services” (Apple, 2023). This mission statement emphasizes Apple’s dedication to providing the greatest products and services to satisfy each client’s specific requirements. It steers the organization toward its long-term objectives, which has aided its success and comprises three essential features. Firstly, Apple designs all iPhone, iPad, and wearable devices to be subscriber-friendly (Abbott, 2021). Regarding consumer experience, the organization makes no concessions. The creative and user-friendly characteristics of Apple’s items provide the finest enjoyment for the final user.
Secondly, Apple designs goods that meet the specific requirements of its clients. Since its inception, Apple has established a benchmark for concept development, usability, and performance. Apple’s hardware and software offerings serve multiple market categories, such as school, commerce, and medicine. In recent years, Apple has expanded its position in the healthcare market with advanced technologies such as the Apple Watch, which detects heart abnormalities (Abbott, 2021). Apple Health Records for iPhone provides individuals with mobile access to their medical information. Finally, Apple is preoccupied with service quality, as evidenced by its App Store, Apple Care, and technology consulting. It manages all aspects, including conception, production, sales, and maintenance, and gives Apple an advantage over its rivals.
Corporate Values and Culture
Apple’s operations and interactions in the workspace and the globe are governed by its core values. Apple provides buyers and businesses with the hardware, software, solutions, and technology they need to realize their objectives and ambitions. Application development relies on Apple’s App Store infrastructure, and in 2020, Apple cut the App Store charge for small businesses to 15% (Apple Newsroom, 2020). The project’s decreased payment provides small entrepreneurs with greater financial resources to develop and expand their enterprises.
In addition, Apple has reinforced its dedication to fostering a culture of workplace inclusivity and advancing international equality. Apple sacked advertising executive Antonio Garca Martnez in May 2021 for advocating sexist and racist sentiments in his 2016 book “Chaos Monkeys” (Nellis, 2021). Apple supports diversity and inclusiveness in the workplace to ensure that all employees are respected. Finally, Apple’s products are designed to preserve users’ confidentiality and provide them access to their data. Nellis & Dang (2021) insinuated that the organization considers privacy an essential human right. Apple improved iOS with new constitutional protections to prevent internet advertising from tracking iPhone users.
SWOT Analysis
Strengths
Apple is one of the globe’s most important and influential corporations. In the setting of this SWOT evaluation, the firm’s strong reputation enables it to introduce lucrative new items, such as additional dimensions of mobile devices. Moreover, Apple’s marketing mix includes a premium price approach with large profit percentages. This internal organizational aspect is a significant asset because it optimizes profitability even when trading volumes are small, as in MacBook computers (Bajarin, 2021). Finally, Apple Inc.’s general competitive methodology and aggressive growth tactics incorporate effective quick development, which helps the company to stay abreast of emerging technology to maintain competitiveness.
Weaknesses
Apple Inc.’s supply chain is limited due to its strategy of exclusivity. For instance, the corporation carefully chooses the licensed resellers of its iPhones and Macs. This methodology for the SWOT matrix analyzes the firm’s exclusivity approach as a constraint that restricts market penetration, making the corporation’s consumer devices inaccessible in many regions. Furthermore, due to its luxury pricing approach, the innovation firm’s revenues rely on high-end customer groups, which is a drawback. Apple’s consumer products may be too expensive for clients in lower income brackets due to their high costs.
Opportunities
Apple Inc. possesses the chance to increase its distribution channels. This possibility results from the corporation’s restricted supply of its commodities, such as tablets and mobile phones. With an improved transmission network, Apple can attract more clients worldwide. The corporation can enhance its sales volume through effective marketing, particularly for mobile devices (Bajarin, 2021). In addition, the company can pursue complementary product offerings, such as internet services. With additional innovation, the company can create and incorporate fresh goods, as it has done with the Apple Watch.
Threats
In part, corporations’ aggression contributes to the intense rivalry in the software industry. Apple battles with companies like Samsung, who likewise rely on technology advancement. In this SWOT assessment, a formidable rival constrains the organization, suggesting the need for solid underpinnings to sustain competitiveness in computer hardware, software, and internet platforms. Moreover, Apple confronts the possibility that its goods, such as the iPhone, may be imitated. Local and global businesses could replicate Apple’s goods regarding features and appearance.
Competition
Samsung Corporation, the largest firm in South Korea, is Apple’s major rival. The Samsung Galaxy and Note models have contributed to declining iPhone sales for many years. Samsung has become one of the greatest and most successful corporations not only in Asia but globally. With so much competition, consumers benefit from increased innovation and reduced pricing. Apple’s global smartphone customer base is approximately 14% as of the third quarter of 2021, while Samsung controls 20% of the worldwide market (Cain, 2020). Xiaomi, OPPO, and vivo are the three other prominent brands, all of which are Chinese enterprises that are scarcely renowned in the USA.
Management Team
Apple’s administration is headed by a chief executive officer (CEO), Tim Cook, and has other departments assisting and reporting directly to him. Cook assumed the position of Apple’s chief executive officer in August 2011 and has a management philosophy that may be widely characterized as democratic (Apple, 2023). Apple workers usually characterize him as personable and insightful. His term thus far has been marked by a stronger emphasis on current products and the cultivation of commercial and staff connections. For instance, Kate Adams is Apple’s general counsel and senior vice president of Legal and Global Security. Kate is an executive team member responsible for all legal affairs, particularly governance practices, copyrights, lawsuits, regulatory adherence, worldwide confidentiality, and security.
Moreover, Craig Federighi is also the senior vice president of Software Engineering for Apple, accountable to Cook. Craig is in charge of creating iOS, macOS, and Siri. Consequently, John Giannandrea is Apple’s Chief of Machine Learning and AI Research. John joined Apple in 2018 and supervises the direction for AI and machine learning throughout the organization and the advancement of Core ML and Siri capabilities (Apple, 2023). These individuals, among others, have contributed greatly to the firm’s success.
Financial Outlook
As a result of technological progress, the technology sector is highly competitive. An earnings document’s top line item is the amount of income from which all expenditures and liabilities are removed to determine operating earnings. In the years between 2019 and 2022, Apple’s income has increased (Macrotrends.net, 2022). The company’s revenues for the September 30, 2022, quarter increased by 8.14 percent year-over-year to $90.146 billion (Macrotrends.net, 2022). In 2022, Apple’s annual profit was $394.328 billion, a 7.79% rise over 2021 (Macrotrends.net, 2022). According to Reuters.com (2023), Apple’s current valuation as of February 2023 is $2.303 trillion. This makes Apple the most valuable, innovative, and successful corporation in the world based on market capitalization. Apple’s earnings growth is projected to average 7.0% during the next five fiscal years, with a growth rate of 2.7%. Apple Inc. announced its profitability for the fiscal year ending September 24, 2022 (Macrotrends.net, 2022). The company’s annual sales were 394,328 million dollars, up from 365,817 million dollars the previous year (Macrotrends.net, 2022). The net income increased to USD 99,803 million from USD 94,680 million last year (Macrotrends.net, 2022). With this outlook, the business is expected to make more earnings due to its investment in research and development.
Strategies
Apple Inc.’s strategy includes investing in establishing its worldwide research and development (R&D) facilities. The corporation also focused on R&D centers in the UK due to a growing focus on generating remarkable breakthroughs to support its design models. These components include A-series chipsets, W-series connectivity chips, exceptional production, substances encounter, voice recognition, and deep learning. Moreover, vertical integration is another significant factor that sets Apple apart from its competitors and has resulted in tremendous advantages. It has always designed, managed, and produced its software and hardware. This intrinsic benefit helps the company achieve significant hardware and application compatibility. Even apps are strictly regulated to adhere to Apple’s regulations. Over the years, the corporation has also expanded its expenditures on commodity and solution development and expansion.
Conclusion
Apple, Inc. creates, produces, and distributes smartphones, personal computers, laptops, wearable technology, and accessories, in addition to offering an array of internet connectivity. Apple’s mission is to develop the world’s most advanced technologies and to leave the world in a better state than when we inherited it. Its objective is to offer clients the highest level of user interaction possible through innovative software, hardware, and solutions. Tim Cook serves as Apple’s chief executive officer (CEO), with different departments aiding him and directly accountable to him. Apple’s strategy includes vertical integration, a crucial aspect that distinguishes the company from its rivals and has yielded enormous advantages. This inherent benefit assists the business in achieving a high degree of hardware and application portability.
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