...Apple IPhone Apple IPhone for years has aimed its focus on the modern individual. With a top-notch smartphone that has wireless internet capacities with intuitive user-interface. A Survey from the TechNewsDaily back in 2011 described IPhone/iOS users as “more likely liberal, outgoing city-dwellers who make more money, take more vacations and enjoy the finer things in life.” () The IPhone was introduced to us January of 2007. Said to be 5 years ahead of it time, the phone could give you access to the internet, a screen the reacted to the touch, iPod features and had mobile capabilities. Steve Jobs put on a demonstration of this revolutionary phone at the Macworld stage. The phone debuted at $599 for the 8GB and $499 for the 4GB model when you entered in to an AT&T contract. Though the price was considered high it was not unheard of, but this did mean that Apple was not going to target the mainstream market. Impressed by the products breakthrough capabilities people didn’t care that the price tag was high, they lined up to purchase the product. Eight months later at the Apple’s “The Beat Goes On” event, it was accounted that the 4GB was going to be dropped entirely and the price of 8GB model would drop in price from $599 to $399. They wanted to be sure that more customers could effort the product. This showed to be effective with results from surveys showing that customer satisfactory was higher than ever before. A year after the phone was introduced Apple introduced...
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...Apple’s iPhone product has been a tremendous success in developing the concept of a smart phone. One might wonder, exactly, how did the success of the iPhone first begin? The first iPhone was announced on January 9, 2007 at the MacWorld convection in San Francisco, California. In the late 1970’s, Steve Jobs alongside co-founder Steven Wozniak’s introduced the first Apple computer, which may or may not be popularly known as the Apple I. Wozniak terminated various old style ways of technology and provided society with a real upgrade. In retrospect, of all of Apple’s failures and success, the company continued its performance until 1984, where the first advertisement for Apple’s Macintosh computer came in great success. This was just a step into the future that enhanced from the iPod to the successful product, the iPhone. In April 2003, Job’s expressed his belief that tablet PCs were not good choices as high-demand markets for Apple to enter. He believed cell phones were going to become important devices for portable access, and what was missing was excellent software, that Jobs wanted to show. In 2004, Apple’s CEO Steve Jobs gathered a team of 1000 employees to work on the “Purple Project” to develop the iPhone we use now. The Purple Project was intended to create the device during a secretive partnership; they had to go to the great lengths of loyalty and secrecy among employees and the outside competitors. On 2007, the exciting response to the opening of the iPhone had the...
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...Problem Definition: Apple Inc., one of the largest companies in the world, has introduced the revolutionary IPhone 3G in the market. The managing team’s goal is to sell 10 million units in 2008, giving them a 1% market share. The issue for Apple was that when they experienced high customer satisfaction for the IPhone, they decided to make these devices more affordable by dropping the price by $200 after two months of going on sale. This affected the sales of IPhones as they were declining on a daily basis and their initial customers of the IPhones were very upset that they had to pay a higher price when the product came out on sale. Therefore, Apple must develop a price segmentation strategy to cater to their highly price sensitive customers and their less price sensitive customers in order to achieve their goal and ensure sustainable profits. They must also ensure they remain competitive, as they are entering a highly competitive market with large players such as IBM and Android. Alternatives and analysis for critical issues: Price segmentation is important when there is heterogeneity of demand. One of the alternatives for Apple is to use 3rd degree price discrimination strategy (including versioning) to target different consumers’ needs. Another alternative is to focus on complementary goods and add on price structures. Lastly, Apple can solely focus on a niche market such as the high-end consumer market, which includes technology enthusiasts. Alternative 1 – Versioning...
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...Globalization has made a huge impact on underdeveloped countries manufacturing products that are cost effective, labor intense and accommodating to the needs of the consumer. A low cost offshore assembling practice is what companies are looking for in order to make substantial profits and “American-Made” products do not fit into that category. As indicated in the case study , Apple’s iPhone as many other companies have chosen to manufacture their products with the Taiwanese-headquartered company named Foxconn’s Longhua Factory located in Shenzhen. Foxconn is China’s largest exporter and assembles approximate 40 percent of the worlds consumer electronics. One of the issues with using overseas manufactures is jobs in the United States. Stated in the Wall Street Journal by Scott Thurm, “Thirty-five big U.S.-based multinational companies added jobs much faster than other U.S. employers in the past two years, but nearly three-fourths of those jobs were overseas.” This is a substantial number, ¾ of the jobs in these companies are overseas leaving U.S. workers to fight for one job. The need to be number one comes with greed in my opinion. When companies are making sure at all costs, no matter what is takes to get a product out consumers should be aware. Companies are making so much profit and consumers are paying so much money to be part of the “in crowd.” There should be more regulations on companies using or employing companies outside the United States. American’s...
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...is the real Marketing strategy that Apple,Inc performs to sell its iPhones. http://www.business2community.com/marketing/apples-iphone-marketing-strategy-exposed-0661613 I partially agree to the author's views that Mobile operators like AT&T, T-Mobile, Verizon advertise Apple iPhone products and the Exclusivity Principles that Apple deployed during the earlier relases of iPhones. But now, almost all the carries get the same iPhone flavors and there is no shortage of any particular flavor of iPhones (delay of a week or two cannot be deemed as a acute shortage!). What the author failed to mention is that Apple,Inc has a hidden Marketing strategy that very few folks can clearly understand. 1. Apple,Inc tries to avoid all the news and media (despite the iClarified leaks) 6-8 months before their new product release to create a hype and rumor from all around the world which is clearly a secret marketing strategy. 2. When they announce their new products, Apple deliberately makes a huge fully blown out orchestration of its pride publicly on a stage where the whole world is glued to their highly blown up pitch about their innovation and their excellence in bringing out a top end product. This is the biggest Marketing ad show in the whole world. 3. Only the iSheeps who account for 10-20% of the iPhone buyers would queue in for the first day release of these products. The remaining 80% of the iPhone buyers go in for newer iPhones for 2 main reasons. a. An extremely...
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...Apple iPhone: Life in the Technology Lane 1. Apple CEO Steve Jobs alluded to the price a customer may have to pay to own an iPhone when he said that the steep and sudden price change was simply part of “life in the technology lane.” What did he mean? Beyond the simple exchange of money, what else might the price of such a product include? Life in the technology lane can be defined according to Steve Jobs in the Apple website, as a “bumpy road”. This road will always be facing change, innovation, and improvement. There will always be early adopters who buy a product before a cutoff date and miss the new plus, new price, or new adaptation made to the product. For instance, if you are of the consumers that will be waiting for a new price reduction or for the new improved model to enter the market, you will, most likely, never buy any technological product. There will always be something cheaper and better to come. That relationship and development in technology is what is referred to as life in the technology lane. Price in a technological innovation includes the idea, in other words, the creation of the idea. It is what made the product possible and what made the product unique and a leader in the market. Additionally, price includes the time of creation of the product, and, most importantly, the value of creating the iPhone in terms of what the manufacturers believe will match the customers’ expectations and benefits. 2. Discuss the role that product demand played in pricing...
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...TUI University Paul A. Krasulski Module 1 SLP: Segmentation, Targeting and Positioning SLP Branded Product: Apple iPhone 4S MKT 501: Strategic Marketing Dr. Francisca Nkadi July 23, 2012 Abstract Purpose: the purpose of this paper is to identify a branded product or service to be examined through the session; examining elements of consumer behavior as they relate to market segmentation, targeting, and positioning for it. This paper, and subsequent papers, will lead to a SWOT marketing analysis of the chosen branded product. Methodology/approach: the branded product for this paper will be Apple’s iPhone4S. Data to be covered in this first paper will include the following: Product/Brand Analyzed Corporate Background Market/Industry Analysis and Competition Market Segmentation and Target Marketing Relevant External Factors Module 1 SWOT Analysis Findings: Apple is a leader in sales and production in US Markets; with products that appeal across target markets. iPhone 4S sales have eclipsed internal Apple brands, as well as other smartphone companies in the U.S. market. Recent sales dominance, however, has not established an industry lead. Samsung, in partnership with Google’s Android Operating system, owns the global marketplace with something like 21% of total market share. Apple faces both technological and political challenges in the largest smartphone market, China, as it is unable to establish a partnership with the largest carriers there due to non-4G/LTE...
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...Apple was founded on the first 1st April 1976 by Steve Jobs, Steve Wozniak and Roland Wayne in Cupertino, California. Apple was originally founded to create personal computers but expanded its market in 2001 with the iPod, a revolutionary music playing device. Since that time apple has gone on to release a number of other market leading products including the Apple iPhone, Apple TV and the Apple iPad to make it the market leader in consumer electronics. ------------------------------------------------- Photo courtesy of http://www.technobuffalo.com/2011/12/14/apples-founding-contracts-go-for-1-6-million-at-auction/ ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- Apple now has 406 retail stores across the world selling a total of 17 different products in a range of sizes, along with a huge range of accessories. ------------------------------------------------- After Apple’s first day as a listed company on December 12, 1980 it had a market capitalisation of $1.778 billion. Apple IPO makes instant millionaires, December 12, 1980 | EDN. [ONLINE] Available at: http://www.edn.com/electronics-blogs/edn-moments/4403276/Apple-IPO-makes-instant-millionaires--December-12--1980. [Accessed 10 March 2014] ------------------------------------------------- Market Capitalisation is “the total dollar market value of all of a company’s outstanding shares” (citation), calculated...
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...WEEK 4 APPLE IPHONE BUSINESS PROPOSAL A+ Graded Tutorial Available At: http://hwsoloutions.com/?product=eco-561-week-4-apple-iphone-business-proposal Visit Our website: http://hwsoloutions.com/ Product Description PRODUCT DESCRIPTION ECO 561 Week 4 Apple iPhone Business Proposal Apple iPhone Business Proposal Apple launched its first phone known as the iPhone in 2008; the phone is designed to target people who wanted and needed to communicate and store information. The phone is design to provide a wireless Internet connection, music, and talk into one. The features of this phone include a 3.5 touch screen without the aid of a keyboard, using more than one finger to control the phone, and shifting the screen to view in different modes. The market for the phone was small in 2008; but today the phone has taken over. In this paper I will present a business proposal for the iPhone addressing the market structure and the elasticity of demand for the phone. Market Structure The Apple smartphone is part of an Oligopoly market; an independent market and has its own behaviors strategies. According to McConnell, Brue, and Flynn (2009), “Oligopoly, in contrast, blends a large amount of monopoly power, a small amount of competition through entry, and considerable rivalry among industry firms” (p. 222). Because Apple’s smartphone industry and competition was small, it needs to take control of the market by differentiating the iPhone from others phone in its category. Apple needs...
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...Apple Computer, Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV Describe the key challenges facing Apple Computer. Key Strategic Challenges There are a number of key strategic challenges Apple Computer must face. Apple’s competitors try to exceed them in performance by producing similar products and often at lower prices. An example is when Apple introduced the iPad. Hewlett-Packard (HP) introduced the TouchPad. In order for Apple to stay on top of the market they had to come up with a new innovation – iPad 2. The iPad 2 was slimmer, lighter, had new features and a new chipset. Apple computer must continue to introduce innovative products to the market. Another challenge for Apple is in diversification. They have to continue entering into other areas of consumer electronics. The personal computer market has intense rivalry among competitors within the industry which is driving prices down. Apple stands to create considerable value through related diversification. Products like the iPod and iPhone show that Apple continues to create its path of innovation. Apple is broad in targeting their customers ranging from users’ on-the-go, at home, as well as unsophisticated users to the power users. upon level of headings; these are illustrated here. Do not begin a new page with each new heading. In a standard paper, only the abstract, the first page of the paper, the reference page, and any appendixes begin on new pages. This paper illustrates...
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...Inc.: Maintaining the Music Business While Introducing iPhone and Apple TV INTRODUCTION According to Apple Computer's 2007 10-K Annual Report, "The Company is committed to bringing the best personal computing, portable digital music and mobile communication experience to students, educators, creative professionals, businesses, government agencies, and consumers through its innovative hardware, software, peripherals, services, and Internet offerings." The company's 2005 Mission Statement reads: Apple Computer is committed to protecting the environment, health and safety of our employees, customers and the global communities where we operate. We recognize that by integrating sound environmental, health and safety management practices into all aspects of our business, we can offer technologically innovative products and services while conserving and enhancing resources for future generations. Apple strives for continuous improvement in our environmental, health and safety management systems and in the environmental quality of our products, processes and services. In recognition of current market trends, Steve Jobs has claimed that he wants to transform the company by making the Mac the hub of the consumers’ digital lifestyle. Despite Apple Computer's recent successes, the company is facing an ever-changing competitive environment on multiple fronts. 1. What are the key strategic challenges facing Apple Computer? 2. What are some of the dimensions along which...
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...Apple Computer, Inc.: Maintaining the Music Business while Introducing iPhone and Apple TV Overview/Introduction Through an analysis of the case study of Apple, Inc. this paper will describe key elements that helped make Apple the successful company it is today. The analysis of the three key environments of a business will be examined, including; general, industry, and competitor environments. Also explored will be the available lessons that readers and other companies can garner from Apple’s success. Apple’s Success Story Apple’s success rests squarely on the shoulders of innovation. In the beginning, the founders of Apple, Stephen Wozniak and Steve Jobs focused on providing something new to the market. They not only brought innovative products to consumers like the Mac computer and iPod, they did it in an innovative manner. Memorable advertising campaigns based on consumer reaction rather than technological jargon made the beginnings of a cult-like following. Apple lost its way in the mid to late eighties as it struggled to find its focus and protect its core competencies, resources, and capabilities. Steve Jobs returned to the company after a decade removed, recognized the speed with which technology moves and took steps to insure that Apple, Inc. was strategically focused to be the leader in new technology. The key to Apple’s success is their mission to make the Mac “the hub of the consumers’ digital lifestyle” (Ireland, 2009, p. C-16). From this point...
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...competitors to acquire ideas due to legal mistakes. Apple computer has faced many challenges throughout its 24 year history. Steven Jobs left Apple over disagreements with John Scully, whom Jobs recruited as Apples president and CEO and started next. During Jobs absence from Apple, Apple partnered with IBM and Motorola to produce the Power PC Chip. One of the key strategic challenges that Apple Computers faced was the loss of the exclusive rights to interface design, due to a poorly negotiated contract. With this loss Apple was now in a position in which it needed to gather d its resources and fight a battle toward standardized software as... Abstract Apple Computer, Inc. is a leader in the technology industry. Whenever one thinks of Apple, computers are the first product that comes to mind. A study of Apple’s history shows that while computers may be the public’s idea of their flagship product, in truth iTunes is the product that propelled Apple’s entrance in a host of other product offerings. Apple’s challenge remains how to maintain the music division of the company while continuing their sponsorship of two equally lucrative products: the iPhone and Apple TV. After all, few companies can have the Wal-Mart effect, being able to be a one-stop-shop. Entrance into the Music Business When Steve Job returned to leadership at Apple Computers Inc. in 1997, Apple was primarily concerned with resolving the dispute between Apple and Microsoft over making operating systems and...
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...ACCOUNTING FOR THE IPHONE AT APPLE INC. 1. Articulate the financial statement impact of the alternative accounting proposed by Apple. The alternative accounting method proposed by Apple is the Non-GAAP supplements it will continue to provide during earning releases. We want to articulate the relevant financial statement impact compared to that of subscription accounting in the following ways: (1) One-year aspect Income Statement: Revenue and cost of sales will increase because it reverses the current period’s amortization of deferred revenue derived from iPhone and Apple TV. As the profit before tax increases, the income tax will also increase. Balance Sheet: Deferred revenue will drop to zero because under the non-GAAP method, it is recognised as either current year revenue or retained earnings, thus the retained earnings will increase by a large amount. Tax liability will increase as a result of increase of profit before tax. Cash flow: The alternative use of accounting method will not cause fluctuation of cash flows. (2) Consecutive years aspect With the use of its current subscription accounting method, Apple is able to make its revenue more constant, show a positive growth in a consecutive period of time and eclipse the amount of revenue recognised from non-iPhone products. Thus the alternative accounting method can help investors to understand the financial performance better. In order to illustrate this impact on financial statement, we...
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...Accounting for the iPhone at Apple Inc. In 2008 Apple decided to include non-GAAP measures of earnings along with its earnings under GAAP. The results had shown that there was a 48% increase difference between the two methods. Revenues and income under non-GAAP recording are exponentially larger which seems like the obvious choice in recording revenues. However, because Apple must recognize revenues under GAAP they are required to use the “subscription method of accounting.” Under GAAP Apple is required to record under software revenue recognition. This requires that Apple have to recognize revenues and product costs on a straight line basis for the life of its service coverage periods. Revenue has to be deferred and recognized over time. The impact of this on the income statements is that reported revenues would only account for a small portion of actual sales of the product. This could make it seem as if the company isn’t as profitable as it actually is. Non-GAAP recognition on the other hand could show how much a company is actually making in a particular period. This makes it easier for a company to show its potential for future performance. Apple decided to provide its non-GAAP financial statements to show revenues without the subscription accounting method. The non-GAAP method showed revenues of $11.7 billion compared to $7.9 billion under the GAAP method. The non-GAAP method would make companies look more profitable on their financial statements be boosting the revenues...
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