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Running Head: NEW APPLE, INC.

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The Case of the New Apple, Inc.
Michael Marsala
BUS 620: Managerial Marketing
Dr. Murad Abel
11/152015

NEW APPLE, INC.

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The Case of the New Apple, Inc.

In the article, “What You Don’t Know About Apple,” written in it were demonstrations that featured how well Apple has continued to function strongly both during the tenure of Steve
Jobs and in the wake of Steve Jobs’ passing. The article also mentions where Apple has fallen behind in the same time period. Apple has made very many successful and innovative products that stand the test of time and bridge generational gaps. This paper will examine the pre/post
Steve Jobs era of Apple in relation to its success and its attempt to maintain its frontrunner status in the digital marketplace.
Though Apple is highly regarded in the digital marketplace, one would struggle to see success as the sales of certain products took years to actually reach the threshold of a bonafide success. This figure is demonstrated by the fact that it took four years for the first generation iPod to sell over 100 million units (Carr, 2013). Fortunately, it only took the iPad half the amount of time to sell the same amount.
As with any consumer product, Apple’s products are far from flawless as they tend to have a few flaws in the first generation of every device. The next generation tends to work out the kinks and include more perks than the previous generation. It can be noted that some consumers have complained and filed allegations that the “perks” should have been made available to the previous generation since the technology supported it and Apple chose to withhold them in order to increase the sales of the newer generation.

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It is important for any company to address and pay attention to their consumer’s wants, concerns and needs. Apple needs to do an effective job in handling their consumer requests to maintain frontrunner status. Google (now known as Alphabet) and Facebook are nipping at
Apple’s heels. Each company wants their prospective platform to be the future of the internet.
From 2012-2014, the Alphabet company released a variety of their own devices such as their marquee Nexus 7 tablet and Chromecast streaming device and software such as the Chrome web browser and operating system. Alphabet has seen its stock rise exponentially since 2012 and is widely regarded as the best innovator in Silicon Valley (Appleyard, 2013).
The passing of Steve Jobs in 2011 marked the time when Apple began to struggle with their product innovation and releases. Since Apple specializes in a select amount of products, it is hindered by limited innovation and change without becoming monotonous. On the other-hand,
Alphabet is diversified in its product assortment through the ubiquity of its Android OS and respective devices running the OS. Not only are these Android devices comparable to Apple products, they also tend to ben less expensive as well. Consumers crave functionality and cost efficiency, of which Android offers. The Android is the only true competitor to the iPhone.
Mimicry is the highest form of flattery. Not very many products are solely proprietary anymore. If there is a hugely successful software/hardware, there are bound to be copycats.
Apple decided to attempt their own version of “Google Maps” with their own application aptly named Apple Maps. This was regarded as a failure as the application lacked in features and overall functionality and accuracy. Apply quickly fixed their gaffe with the release of the Google
Maps application on all iPhone and iPod touch devices. Though Apple has had its gaffes,

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consumers still pay a premium for Apple products. Its design-driven hardware and software keep the company at the forefront of the digital marketplace and remain years ahead of competition in the marketplace. Consumers maintain Apple’s software and hardware are the most usable and user friendly products in the market (Appleyard, 2013).
As mentioned previously, Alphabet is the primary competitor to Apple in the digital marketplace. Though there are other tech juggernauts such as Amazon and Facebook, the digital marketplace is unquestionably dominated by Apple and Alphabet. Amazon leads in online sales,
Facebook leads social media, Apple leads hardware profits. Each category though contains
Alphabet in spot near the top. No other company has the footprint in each category like Alphabet does. Alphabet’s primary advantage is its footprint in every category is apart of a logical, longterm strategy to get Alphabet to the tope of the tech war (Manjoo, 2013). Alphabet wants its platform and products to dominate in all time periods: current, next year and far-off future.
Apple could attempt to compete in each category but has decided to only focus on its core hardware and software strategy. Alphabet’s Android OS dominates the percentage of smartphones throughout the world. Mango (2013) says Android OS accounts for almost 70% of all smartphones. Even with this majority, Android merely nets 25% of the world’s smartphone profit. The iPhone (iOS) commands the other 75% of the world’s mobile phone profits.
Even with some stiff competition, Apple has the ability to continue to thrive even without
Steve Jobs. One of the primary problems that Apple faces is a lack of a “face” and the lack of marketing skills that were once present with Steve Jobs (Appleyard,

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2013). Tim Cook is making progress but he is not as effective as Steve Jobs. When Jobs was alive, he alone was the marketing department. He was the face of Apple and knew it inside and out. He commanded the stage whenever he took it and seemed to have had a way with his audiences. His presence was theatrical and passionate yet also focused while he presented his ideas and products to the audience. According to Appleyard (2013), his presentations and announcements were highly acclaimed and considered the best show on Earth. The religious reverence and attention to detail he portrayed his devices gave them a powerful aura which really helped the marketing. Tim Cook is doing a fine job but is struggling to achieve Jobs’s success.
He is is struggling in the marketing while also lacking the charisma that Jobs posseded.
Though Steve Jobs and Tim Cook and two very different presenters, they both used similar marketing strategies. The strategy they employed was segmented marketing targeting a particular consumer market segment (Finch, 2012). The target segment was/is previous Apple owners. Currently, i the new battle for the digital market, Apple has slightly shifted marketing strategies to mass marketing in an effort to reach current Apple owners and new customers alike.
Marketing is always something Apple continues to improve upon. Apple comes up with new viable ideas everyday that consumers will continue to crave and want. If Apple wants to remain atop, it needs to keep pace with competitors and the marketing strategy is the first thing to address to stay that way.
As previously mentioned, consumers pay a “premium” for Apple products. In essence, this premium is paying for its brand name. Though the sales figures speak for themselves, Apple

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has been hurt by the tech price wars. With competitors offering similar tech for a fraction of the cost, this is one area Apple needs to address and work on.
Even with Alphabet being considered the best innovator in Silicon Valley, Apple continues to work on newer technology and is a great innovator itself. Apple has designed wearables like the new Apple Watch to its television streaming multimedia device Apple TV.
Even though these products are entered into a crowded market, Apple has proven that their products are different from its competitors as shown by sales figures.
Steve Jobs built a thriving, dominant company that focused on beating its competition. In the wake of his passing, he left a solid foundation that can be built upon. Customers play a key role in keeping any company afloat or its cause for failure. Apple can continue to thrive in the post Steve Jobs era through listening to their customer’s wants needs and complaints. Customers run the show. If a company does not market well, it will not survive. Apple has done a good job thus far but still needs to reign in and refine its marketing to remain at the top. Apple may make beautifully designed products but the products do not speak for themselves.

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References

Appleyard, B. (2013). Is Apple Dying? Steve Jobs’s Creation, Long Thought to be the Smartest
Company in the World, is in Danger of Falling Behind Google and Facebook in the Race to be the Internet Platform of the Future. New Statesman (1996), (5185). 26. Retrieved from http://eds.b.ebscohost.com.proxy-library.ashford.edu/eds/detail/detail vid=1&sid=e5e6a5b6-8aa2-4d2b-baa1-83e605e472ea %40sessionmgr114&hid=111&bdata=JnNpdGU9ZWRzLWxpdmU
%3d#db=edsglr&AN=edsgcl.352378042.
Carr, A. (2013). What You Don’t Know About Apple. Fast Company, (174), 35-38. Retrieved from http://eds.a.ebscohost.com.proxy-library.ashford.edu/eds/detail/detail? vid=15&sid=baf65bd0-9a22-4e44-9448-27a8cafa054e %40sessionmgr4001&hid=4213&bdata=JnNpdGU9ZWRzLWxpdmU
%3d#db=edsggo&AN=edsgcl.328334685.
Finch, J. (2012). Managerial marketing. San Diego, CA: Bridgepoint Education, Inc.
Manjoo, F. (2013). Google is Winning. Fast Company, (176), 43-44. Retrieved from http:// eds.a.ebscohost.com.proxy-library.ashford.edu/eds/detail/detail? vid=1&sid=1dc0b975-40a5-4c6b-8c0e-c7caf69423cc

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%40sessionmgr4004&hid=4213&bdata=JnNpdGU9ZWRzLWxpdmU
%3d#db=crh&AN=87512820.

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