...2. Apple and Nintendo’s strategy with respect to their developers are similar in the sense that both Apple and Nintendo try to limit some of the value that their developers create. Even though developers create a complementary product (games and apps for video games and iPhones/iPads/etc.) that creates value, neither Apple nor Nintendo lets the developers capture all potential value. Nintendo restricted developer value creation by limiting the number of licenses to be distributed and the number of NES titles that could be developed a year. Apple takes a similar approach, as developers have to go through a rigorous approval process before their app is accepted into the Apple app store. However, Apple does not limit the number of apps a developer can release a year, unlike Nintendo. Even with its rigorous approval process, Apple does not have a hard number quota of apps for each developer. In addition, Apple does not force its developers into exclusivity agreements like Nintendo does. iOS developers are free to work on other app platforms like Google Play. Thus Apple does not as heavily limit the total value created by its developers when compared to Nintendo. Another similarity is that both Apple and Nintendo charge fees to its developers in order to increase their own value captured. Nintendo does so with licensing fees, while Apple’s Software Development Toolkit charges developers a fee for its user-friendly platform to create applications for the Apple app store. Apple...
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...Breakeven for Microsoft and Apple The main purpose for this communication is to address the breakeven for Microsoft and Apple when they develop a new computer operating system. It will also expound on the various challenges that this breakeven rise for Apple, how Apple can overcome these challenges and the sources of Apple’s competitive advantage. Additionally, this memo will address how Apple’s financial performance compares to its rivals, what a DuPont formula analysis explains and challenges that Apple faces moving forward. It will also discuss the moves that Apple should consider moving forward. Subsequently, it will also discuss the stock performance of Apple and how Apple’s retail strategy supports its overall approach to competitive strategy. Lastly, this memo will articulate how important Steve Jobs was to Apple’s future. Breakeven for Microsoft when they develop a new computer operating system The breakeven for Microsoft when they develop a new computer operating system mostly depends on the product being developed since each on them varies. However, Microsoft has ensured that it maintains a breakeven of about 50% for most of its new computer operating system that ensures that Microsoft can cover its expenses prior for it attaining a profit. Microsoft also sets the breakeven quantity in terms of quantity, and the number of months it has to sell so that it can recoup the expenses incurred while developing the new operating system. For example, it had to sell 17...
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...from Apple. I kept up with any news, watched Steve Jobs unveil the phone, and planned on preordering one the day preordering started. However, there were several economic factors that have prevented me from ordering the iPhone 4. Through week one’s assigned reading, I learned about the law of demand, the law of supply, and price elasticity. The law of demand states, “Other things equal, as price falls, the quantity demanded rises, and as price rises, the quantity demanded falls. In short, there is a negative or inverse relationship between price and quantity demanded” (McConnell, Brue, & Flynn, 2009, p. 47). This happens with the iPhone 4 with consumers. The price can be very high if the phone is bought without an AT&T wireless contract. The prices can be $599 or $699. However, AT&T subsidizes the price for consumers making the iPhone more affordable if a person purchases it from them and signs a two-year contract. Buying from AT&T if one is a new customer or eligible for an upgrade the price of the phone ranges from $199 to $299, depending on which model a consumer purchases. A recent survey showed that 77% of the iPhone purchases were upgrades and 16% were new customers (Paul, 2010,), meaning 93% of consumers purchased those phones through AT&T’s subsidized pricing. The law of supply states “As price rises, the quantity supplied rises; as price falls, the quantity supplied falls” (McConnell, Brue, & Flynn, 2009, p. 51). In the iPhone’s case Apple is receiving...
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...2015: Apple Watch It had been nearly five years since Apple had launched a truly new product. When Steve Jobs held the first iPad up for the world to see in 2010, the technology company was on something of a roll – the iPhone was setting the benchmark for smartphones, laptop design had been shaken out of its plastic complacency by the MacBook Air, and personal music players were already beaten into weak submission by the all conquering iPod range. Then came the Apple Watch, first unveiled in September 2014 and finally released on 24 April 2015. But Apple's newest creation enters a marketplace that feels far more competitive than back then, and the Watch needs to prove its worth against the growing range of rival alternatives. So far, if reports are to be believed (Apple didn’t release official figures with its Quarterly Results), the Apple Watch is succeeding, selling more units within its first few days than all of the Android Wear devices sold to date. Apple of course has a history of entering a market late but, through superior design and software, quickly becoming the dominant player. If it can repeat these past successes, then wearables look set to be the breakout technology this year. However, with this being said, a Daily Mail report claims that the Apple Watch hasn’t received such a warm welcome, and will only ship 21 million units by 2016, compared to the original 24-million-unit estimate. These estimations come from Slice Intelligence, who claim that Apple is only...
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...to supply the goods demanded at a common price for consumers. Question 1 The market which this report will look at is the Apple iPhone. The iPhone was first created in 2007 when Steve Jobs (Apple Inc Founder) introduced a wide screen iPod with touch screen controls and was able to be used as a mobile phone. Three determinants of demand which affect the iPhone are: Buyers Tastes and Preferences The tastes and preferences of a buyer may change because of personal preferences or advertising. If an advertising campaign is successful then the demand for the iPhone will increase as it has been made more appealing to consumers. Similarly an increase in the brands popularity will also cause the demand for the iPhone to rise. A Change in Income A change in consumers real income will also affect the demand for the iPhone. As smart phones are considered a ‘normal good’ and not a luxury, if income levels rise then the demand for normal goods will also rise. Advances in Technology After the release of the first iPhone in 2007 Apple realised their problems with the first iPhone and used this information to develop the iPhone 3G. The denser graphics and faster internet speeds made this model more appealing to consumers. Question 2 The market which this report will look at is the Apple iPhone. The iPhone was first created in 2007 when Steve Jobs (Apple Inc Founder) introduced a wide screen iPod with touch screen controls and was able to be...
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...| Apple Inc. Use of Information Sources | | | Adam Pasetchnik-MBA6012-u02a1-1/19/2014 | | | Apple Inc. current theories, models and practices of marketing * Current Marketing Theories: Apple Inc. current marketing theories are still based on Steve Job’s marketing strategy is to “Sell on Value, Not Price”. The marketing strategy can be summed up with three points, “Empathy”, “Focus” and “Impute”. Apple has the great ability to connect (empathy) to the core of the customer with their emotional wants and desires and creates something that you cannot live without (Nosal. 2013). You just cannot imagine today not having your iPad, iPod, or your iPhone that so many of us use today. The second is “Focus” in doing the best job you can eliminate all the unimportant opportunities (Moorman, 2012). Apple is more focused on the customer’s needs more than any other company in the marketplace. The last point is “Impute” to have the best product, the highest quality and the most powerful software, they impute the desired qualities into their products. * Current Marketing Models: Apple has a great marketing mix which has the combination of four elements called the 4P’s (Price, Products, Place and Promotion). This gives the company a good combination to add, subtract or modify in any way to generate the desired marketing strategy (Armstrong & Kotler. (2005). * Current Practices of Creating Market Value: One of the most important marketing...
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...Apple Financial Performance General Notes: This financial analysis for Apple Inc was carried out for the year 2007. The first section of the Financial Analysis will detail my preconceived notions of Apple (without the facts in hand). The second part of the Financial Analysis will review Apple's stock performance, various financial ratios, competitors, market segment. Interest coverage ratios, dividend yield ratios, and dividend payout will be discussed as well. The financial analysis will conclude with my opinion of Apple's future prospects, its stocks, and whether it is creating value to its shareholders. Apple General Information On January 3, 1977, Apple was officially incorporated in California. Apple's stock is traded under sticker Symbol "AAPL" in NASDAQ stock exchange, and in Frankfurt Stock Exchange, Apples' shares trade under the symbol "APCD". Apple became a public company in 1980, and in its Initial Public Offering (IPOD), Apple's shares were offered for $22.50. On a split-adjusted basis, Apple's Initial Public Offering stock price was $2.75. Apple has no preferred stock outstanding. Apple, Inc. Dividend Policy Apple doesn't pay its stockholders any dividends. In fact, the last time Apple paid dividends was in December of 1995. Apple paid dividends from 15 June 1987 to 1995. As Apple does not have an active dividend policy, Dividend Reinvestment Program (DRIP) is also not available to investors. Cash dividends that Apple did pay, ranged from .06$...
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...In order to expand their companies, many business owners use strategic planning to achieve more growth. Many companies have benefitted by using strategic planning, and Apple is one of those benefitting companies. Ever since Steve Jobs founded Apple, it has been on the up rise. They have been on the rise of new and innovative technology that becomes the next number one thing on people’s want list. Recently there has been talk that Apple is to release and smaller version of their ever-popular Ipad. The new Ipad will most likely be around “…7 to 7.8 inches [and] there will probably be Wi-Fi only and at least two carrier-specific 4G models.” This is a good example of how companies practice strategic planning because Apple is trying to expand its’ target market and …”most importantly, to appeal to the small-tablet consumer market…” When talking about strategic planning. This is a great example of expansion. As talked about in chapter 7, expansion is when you are trying to introduce your existing customers to new products. Apple may also be trying to reach new customers by diversification. This is where you introduce new customers to new products. As stated above, Apple is trying to appeal to the small-tablet market. This smaller tablet will be more convenient, and easier to manage for a lower price. Apple coming up with the new Ipad mini also displays some aspects of the macro environment. ARTICLE ANALYSIS 3 Firstly, it fits into the economy aspect very well. By coming...
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...Final exam MACROECONOMICS 1) Among the fundamental concepts in economics are A) opportunity cost. B) marginalism. C) efficient markets. D) all of the above 2) Which of the following is NOT an opportunity cost of attending college? A) the tuition you pay B) the income you could have earned if you didn't attend college C) the alternative uses of the time you spend studying D) the cost of the food that you consume while you are attending college 3) A market in which profit opportunities are eliminated almost instantaneously is A) a laissez-faire market. B) a capitalist market. C) a socialist market. D) an efficient market 4) According to the theory of comparative advantage, specialization and free trade will benefit A) only that trading party that has both an absolute advantage and a comparative advantage in the production of all goods. B) all trading parties, even when some are absolutely more efficient producers than others. C) only that trading party that has an absolute advantage in the production of all goods. D) only that trading party that has a comparative advantage in the production of all goods. 5) Someone has a comparative advantage in producing a good if they can produce that good A) in greater quantities. B) at a lower opportunity cost. C) using more capital and less labor. D) without sunk costs. Refer to the information provided in Figure 2.5 below to answer the questions that follow. Figure 2.5 6) Refer to Figure...
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...Unit 1: Business Environment Assignment 3 Apple is the company that I am going to be talking about in this assignment; I will be talking about how different economic environments affect two countries Apple operates in (China, USA) and what countries they are manufactured and assembled in. They’re stores are usually located in the central main shopping centre of a city especially their stores in the UK. The company Apple is a private limited company and the company is open to the public to buy shares in the organisation. The company is based in the secondary sector of business. Here is a table stating some of the economic factors that may affect Apple. China United Kingdom GDP China GDP is worth 5879 billion dollars or 9.48% of the world economy, according to the World Bank. from 1960 until 2010, China's average GDP was 839.37 billion dollars reaching a massive rate 5878.63 billion dollars in December of 2010 and a record low of 46.46 billion dollars in December of 1962 The United Kingdom GDP is worth 2246 billion dollars or 3.62% of the world economy, according to the World Bank. From 1960 until 2010 the United Kingdom's average Gross Domestic Product was 862.04 billion dollars reaching 2810.97 billion dollars in 2010. Inflation The inflation rate in China was last reported at 4.1 percent in December of 2011. From 1994 until 2010, the average inflation rate in China was 4.25% reaching 27.70 percent in October of 1994 and a record low of -2.20% in March of 1999. The...
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...Information Systems Case: Apple Inc. 1 Executive Summary It is said that luck follows determination and courage in business. Apple Inc. is one of global giants that has proved this correct – it has completely taken a U-turn in the IT business. Renowned around the world for innovation and quality finishing of its products, Apple Inc.’s humble start as a computer manufacturer has not deterred it from ruling the world of technology and entertainment in a market where giant names like IBM and Microsoft also thrive. The financial position of Apple has become very strong over the past three years. Growing 15% from 2007 to 2008 and 20% from 2008 to 2009, Apple Inc. has maintained a steady and rapid pace that few other companies as innovative as Apple can match (Annual Report, 2009, p.19). The launch of the iTunes music store, that later expanded into a comprehensive online store for videos, books and audios, was a different business model altogether that reaped success within the first week of its launch. However, the subsequent events that occurred in the market and the various risks that are associated with Apple Inc.’s strategy for iTunes are some of the reasons that warrant a revision of the operational strategy, partially, if not altogether. The issue of digital rights management (DRM) and software piracy propped up and Apple has ever since paid out to artists and record companies more than it has pocketed itself. There are several lessons that Apple can learn from the...
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...buyers stand in lines at Apple and cellular stores waiting for hours to get their hands on the device. There are many technologies in the world today that people use but nothing is greater than the innovative Apple iPhone. It is a remarkable, all in one technological device geared towards the general public, and it is hugely popular. The iPhone started when Steve Jobs introduced a device with touch screen, mainly a mobile phone. In an interview in 2002, Steve Jobs mentioned that Apple was working on a smart phone that would kick-start the next generation mobile phone market. Steve Jobs described the iPhone as revolutionary and an innovative design (Samra, 2012). The development of this device started nearly a decade before it came to the markets in 2007. The iPhone finally launched in June of 2007. The iPhone is a phone, iPod, and Internet browser that was built all in one device. It has a fully integrated iPod that allows you to upload music onto your phone like a regular MP3 player. It has a full Internet web browser on a phone that you can use to go on the web similar to doing it on an actual computer. Apple designed Facetime, a feature that allows you to communicate via video calling, and Siri, your own personal voice assistance that allows you to talk to the phone telling it what to do or ask any questions. It has an exceptional 8-megapixel camera that allows you to take or record amazing pictures or videos then upload it to your computer or the web. Apple also built the first...
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...Introduction 1 2.0 Reasons MNC goes IPN 2 2.1 New Economic Geography (NEG) 2 2.1.1 Economies of Scale 2 2.1.2 Thickness of Markets 2 2.2 Production Fragmentation 3 2.2.1 Factor-cost and technology advantage 4 2.2.2 Low International Trade Cost 4 3.0 Using two case studies of firms headquartered in two different countries, show how the growth of trade and investment links among several Asian economies is related to the strategic production and location decisions of firms and how firms took into consideration the main factors affecting such decision. 6 3.1 First Case Study of Firm; Toyota Motor Corporation Headquartered in Japan 6 3.2 Second Case Study of Firm; Apple Inc Headquartered in U.S. 7 3.3 Comparisons between Toyota Motor Corporation and Apple Inc. 7 3.4 Factors Toyota and Apple took such strategic production and location decisions 8 4.0 Conclusion and Recommendation 9 5.0 References 10 1.0 Introduction East Asian region has been seen as the world’s fastest growth centre for decades with the emerging of East Asian Tigers- Hong Kong, Singapore, South Korea and Taiwan- shows that the world’s economic centre of gravity is gradually shifting East (Ando & Kimura, 2005). The World Bank (1993) listed this as “East Asian Miracle”. With more and more acceptance of globalization and trade liberalization in East Asia had formed international production network (IPN) – the cross-borders trades of parts and components to other countries or regions before...
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...Ocotober 31, 2012 Apple Financial Health As stated before in my business analysis paper, Apple is a very rich, prosperous, and innovative company. Its innovations and creativity has enable Apple to keep growing, striving, and propelling itself to the top of the personal computer industry. Apples dominancy and growth is not just known by people around the world it is documented and can be proven by Apple’s financial statements. Financial Statements On apples income statement one can see that their net sales rises each year for the past three years. Starting in 2009 where net sales were just $42,905 million, in 2010 $65,225 million, and then now to 2011 $108,249 million (Apple INC, 2011). This data shows that Apple’s net sales nearly triple from 2009 to 2011. Their gross margin also substantially increases starting at 17,222 million to in 2011 43,818 millions (Apple INC, 2011). This margin represents the percent of total sales revenue that the company retains after the direct costs associated with producing goods sold for a company. This means for the past three years Apple is able to make more profit then the cost that it takes to make its products. Furthermore as with every growing company comes more expenses so their expenses have risen from 2009 to 5,482 million to 10,028 million in 2011 (Apple INC, 2011). Their expenses are counteracted and accounted for by their net income which triples from 2009-2011 from $8,235 to 25,922 million (Apple INC, 2011). The net income...
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...For admirers of fine crystal, there is something magical about the name Swarovski. For admires of speed and glamour there is something magical about the name Ferrari or Lamborghini. And, without a shadow of doubt, for the lovers of high technology, innovation and music there is something magical about the name Apple. While ages ago our ancestors were bothered by the question of who came first a chicken or an egg, today the question is different. As the fame and success of Apple company and its products is increasing, the question one may rise is for example: what came first … the iPod or iTunes? In my paper I would like to present the financial report of the iTunes. To begin with I would like to give some background history of the product because even though the product itself is familiar to everyone, some may still wonder of its origin and principle function. As a matter of fact iTunes came first, even though it seems that we started hearing about the iPods much earlier. Before the iPod was released, Mac users had had the ‘iLife’ on their computers. The Ilife also included iTunes version 1.0 – however it looked rather different from the “modern” iPods or itunes. The main difference was that the iLife has a three-note icon and not the double green one which people are familiar with today. So, as we can see, the iTunes was around, for for the Mac only, of course, from January 2001. In April of 2003, a new version of iTunes (4.0) was released. That same year the iTunes Store –...
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