INDEX

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Apple Inc., originally named Apple Computer, Inc., is a
multinational corporation that creates and markets consumer
electronics and attendant computer software, and is a digital
distributor of media content. Apple's core product lines are the
iPhone smartphone, iPad tablet computer, and the Macintosh
personal computer. The company offers its products online and
has a chain of retail stores known as Apple Stores. Founders
Steve Jobs, Steve Wozniak, and Ronald Wayne created Apple
Computer Co. on April 1, 1976, to market Wozniak's Apple I
desktop computer, and Jobs and Wozniak incorporated the
company on January 3, 1977, in Cupertino, California. For more
than three decades, Apple Computer was predominantly a
manufacturer of personal computers, including the Apple II,
Macintosh, and Power Mac lines, but it faced rocky sales and
low market share during the 1990s. Jobs, who had been ousted
from the company in 1985, returned to Apple in 1997 after his
company neXT was bought by Apple. The following year he
became the company's interim CEO, which later became
permanent. Jobs subsequently instilled a new corporate
philosophy of recognizable products and simple design, starting
with the original iMac in 1998. With the introduction of the
successful iPod music player in 2001 and iTunes Music Store in
2003, Apple established itself as a leader in the consumer
electronics and media sales industries, leading it to drop
"Computer" from the company's name in 2007. The company is
also known for its iOS range of smart phone, media player, and
tablet computer products that began with the iPhone, followed
by the iPod Touch and then iPad. As of June 30, 2015, Apple
was the largest publicly traded corporation in the world by
market capitalization, with an estimated value of US$1 trillion.
Although Tim Cook introduced considerable changes to Apple
corporate structure since assuming the top job in 2011, the
structure still remains to be highly hierarchical with many
layers of management. Massive size of the company that
comprises 164,000 full-time equivalent employees globally
necessitates the adherence to the hierarchical organisational
structure. Advantages of Apple hierarchical organizational
structure include tight control possessed by senior management
over all aspects of the business. Moreover, promotion
opportunities motivate employees to perform well and there
are clear levels of authority and responsibility. On the negative
side, Apple’s hierarchical organisational structure may
compromise flexibly of the business to reflect changes in the
global marketplace. Furthermore, in hierarchical organizations
communication across different departments tends to be less
effective than in flat organizations. Product-based grouping is
an important feature of Apple organizational structure. The
multinational technology company divides its operations into
the following product-based groups. Group includes App Store,
Apple Play, iCloud, and Apple Music. Mac, iPhone, iPad, other
products. These include Apple TV, iWatch, headphones, cases,
displays, and storage devices and various other connectivity
and computing products and supplies Collaboration between
different groups and divisions. Apple Inc. maintains an
intensive and effective collaboration between various groups
and divisions of the company. Each product within Apple
portfolio such as iPad, iPhone, iPad, Apple TV and iWatch is a
result of collaboration of product-based groups Apple Inc.
Board of Directors consists of eight members with a solid
leadership background in a range of industries. Three members
are acting CEOs and two members are former Chairman and
CEOs of global companies. Moreover, proven leaders such as
former US Vice President Albert Gore Jr., former CFO and
Corporate President The Boeing Company James A. Bell and
co-founder and Director of Blackrock Susan Wagner also serve
in Apple Board of Directors. Considering a number of
challenges faced by the company such as rapidly decreasing
life cycle of technology products and declining sales of iPhones,
iPads and Mac products, it can be argued that Apple
organizational structure may be subjected to certain changes
in the medium-term perspective. To be more specific, elements
of matrix organizational structure and divisional
organizational structure may be integrated into Apple Inc.
organizational structure to a greater extent to increase the
efficiency of new product development practices. Functionality
is another important aspect of Apple’s structure. Although,
product-based grouping is an important element of
organizational structure as discussed above, senior vice
presidents reporting to CEO are in charge of functions, not
products. Functional organizational structure is not common
for behemoths like Apple, however, the tech giant benefits
from the current patterns of its corporate structure. Specifically,
unlike many other large companies there is no fight between
heads of product divisions at Apple for resources. Moreover,
functional organizational structure allows the tech giant to
neglect short-term financial targets when developing new
products that require considerable investments. Importantly,
the bonuses of senior R&D executives are based on the financial
performance of the whole company rather than revenue from
particular products Therefore; executives at Apple are made to
take a holistic approach to the business, similar to small
entrepreneurial firms.
Apple Inc. is an American multinational technology company
headquartered in Cupertino, California. As of March 2023,
Apple is the world's largest company by market capitalization,
and with US$394.3 billion the largest technology company by
2022 revenue. As of June 2022, Apple is the fourth-largest
personal computer vendor by unit sales; the largest
manufacturing company by revenue; and the second-largest
mobile phone manufacturer in the world. It is considered one of
the Big Five American information technology companies,
alongside Alphabet (parent company of Google), Amazon,
Meta, and Microsoft. Apple was founded as Apple Computer
Company on April 1, 1976, by Steve Wozniak, Steve Jobs and
Ronald Wayne to develop and sell Wozniak's Apple I personal
computer. It was incorporated by Jobs and Wozniak as Apple
Computer, Inc. in 1977. The company's second computer, the
Apple II, became a best seller and one of the first mass-
produced microcomputers. Apple went public in 1980 to instant
financial success. The company developed computers featuring
innovative graphical user interfaces, including the 1984 original
Macintosh, announced that year in a critically acclaimed
advertisement called "1984". By 1985, the high cost of its
products, and power struggles between executives, caused
problems. Wozniak stepped back from Apple and pursued
other ventures, while Jobs resigned and founded NeXT, taking
some Apple employees with him. As the market for personal
computers expanded and evolved throughout the 1990s, Apple
lost considerable market share to the lower-priced duopoly of
the Microsoft Windows operating system on Intel-powered PC
clones (also known as "Wintel").
In 1997, weeks away from bankruptcy, the company bought
NeXT to resolve Apple's unsuccessful operating system strategy
and entice Jobs back to the company. Over the next decade,
Jobs guided Apple back to profitability through a number of
tactics including introducing the iMac, iPod, iPhone and iPad
to critical acclaim, launching the "Think different" campaign
and other memorable advertising campaigns, opening the
Apple Store retail chain, and acquiring numerous companies to
broaden the company's product portfolio. When Jobs resigned
in 2011 for health reasons, and died two months later, he was
succeeded as CEO by Tim Cook. Apple became the first publicly
traded U.S. company to be valued at over $1 trillion in August
2018, then at $2 trillion in August 2020 and at $3 trillion in
January 2022. In June 2023, it was valued at just over $3
trillion. The company receives criticism regarding the labour
practices of its contractors, its environmental practices, and its
business ethics, including anti-competitive practices and
materials sourcing. Nevertheless, the company has a large
following and enjoys a high level of brand loyalty. It has also
been consistently ranked as one of the world's most valuable
brands.
1. Most Valuable Brand

Apple is ranked #1 position for the 9th consecutive year by Interbrand –

with a brand value of $408 Billion. Followed by Amazon ranked at #2
with a brand value of $249 Billion, and Microsoft ranked at #3 with a
brand value of $210 Billion.

2. Globally Iconic

Apple is one of the most reliable companies when it comes to

personalized advanced computers and smart technology devices. It has
millions of loyal customers with steady increment.

3. Top Technology

Apple was the first to introduce some of the most innovative products
that have changed the world (iPhones, iPads, Air Pods). Apple is still
determined to build and craft better, more proficient technology
devices.

4. Brand of Choice

It isn’t big news that Apple is a favourable brand in corporate offices,

especially among creative professionals. Apple offers top-quality
technology solutions for every corporation’s needs. Professionals prefer
high-performance technology such as Mac Pro or iMacs for visual design,
animation, video production, and other creative work.

5. Proficient Research & Development

Apple puts dedication into its product designs. Careful study and
extensive research is performed to help understand customer needs and
market trends. Apple continues to invest a substantial amount of money
in research and development for future growth and a competitive edge.
For example, Apple spends $26.25 Billion (about 7%) of its revenue in
R&D.
6. Sustainability made Possible through Liam

Liam is an iPhone recycling robot that breaks down and dissects an

iPhone. It strips them all the way down to a single bolt. Most parts of an
iPhone can be reused. Liam is designed to yield as many reusable parts
as possible. These reusable parts are then categorized and safely stored
so they can be used for new manufacturing.

7. Expansion in services

Apple has been expanding its services portfolio for many years. For
example, about 20% of Apple’s annual revenue ($78 B out of $394 B in
FY 22) came from its services, which is the second biggest contributor to
its revenue after the iPhone (52% of its revenue). Apple’s services
include digital content stores, streaming services, iCloud, AppleCare,
and payment services etc. Recently, Apple has introduced many new
services, such as Apple TV+ , Apple news+ , Apple Card (credit card
services), Apple Arcade (game subscription), and Apple Fitness+ etc.

1. High Priced Products

Apple’s products can be considered a luxury due to their premium

prices. The products are priced for middle and high-income consumers.
Low-Income consumers can’t simply afford Apple products. Due to their
premium pricing, only middle or high-earning individuals can afford
their products.
2. Limited Advertisement & Promotions

Apple has solidified their grounds by establishing loyal customers, even

with limited advertising resources. Apple marketing relies heavily on its
iconic and flagship retail stores. Because of their success, Apple does not
feel the need to have excessive spending towards advertisement in
comparison to other big brands such as P&G, Pepsi, Verizon, and Coca
Cola etc.
3. Entering into Area of Non-Competency

Apple is rapidly expanding into new services such as video content

streaming, game streaming, payment services (credit cards) –
competing with the dominant players such as Netflix, Disney, Citi,
Chase, PayPal, etc. They might be entering into areas in which they
lack competencies; remember the failure of Apple maps.

4. Incompatibility with Other Software

When a customer buys an apple product, they enter the Apple universe.
Apple’s products do not support other software or technologies making
them incompatible with other devices. Customers have to exclusively
purchase Apple apps or accessories to continue using their Apple
products.

1. Consistent Customer Growth

Apple has been dominating the technology sector for years now. They
provide top quality and cutting-edge technology that offers a
breakthrough in customer experience. Their customer retention rate of
92% is phenomenal. Apple can always rely on the power of the internet
for future opportunities to gain new customers and form new alliances.

2. Qualified Professionals

Apple’s researchers, developers, and product specialists are a team of

highly qualified professionals that have years of experience in branding
consumer products. With the expansion of their team, Apple can
continuously build new opportunities.

3. Expansive Distribution Network

Apple Inc. has the opportunity to expand its distribution network.

Currently, the distribution network that Apple has is very limited and
leaves room for minimal growth. Apple can generate higher revenue
and sales if it focused on creating an expansive distribution network.
Furthermore, the company can benefit from diligent marketing and
promotions.
4. Lack of Green Technology

Apple is yet to launch products that are created using green technology.
The company has not yet implemented or participated in creating
sustainable technology that is eco-friendly.

1. after effects of Coronavirus Outbreak

Apple is highly dependent on China for its manufacturing and supply

chain. The recent events have significantly affected and disrupted its
operations. In addition, about 19 % of its $394 billion in revenue came
from China (a big market for Apple). The outbreak has significantly
affected and may continue to disrupt Apple’s business in coming years.

2. No Effective Countermeasure for Air Tags

While Apple’s Air Tags are meant to help people find frequently
misplaced items using Bluetooth, the technology is also being used with
malicious intent. There have been a lot of instances where criminals have
used Air Tags to steal cars and, worst, stalk people. Apple commented
that the Find My app will immediately let users know if an unknown
accessory is tracking them. However, there is yet to be a more
permanent solution.

3. Apple Bullied By Counterfeits

Apple has become vulnerable to third world countries illegally utilizing

the brand image to sell counterfeit products. The illegal dealers sell
Apple counterfeit products at the same value as an original Apple
product. Counterfeit products can make potential customers believe
that it is a product made by Apple with low quality. Big news can result
in negative reviews and bad publicity for the company.

4. Increasing Competition

Although Apple as a brand has solidified itself, it still faces threats from
competitors. With the advancement in technology, brands like Samsung,
Google, and Dell are giving Apple tough competition. As the
competition is getting stronger, Apple either has to introduce new
technologies or revise its pricing policy to stay ahead of its competition.
About 50% of Apple's total revenue is owed to its iPhone
segment, so stockholders slightly panicked when the company
reported a 2% year-over-year decline in smartphone sales in
the third quarter of 2023. The tech giant's stock tumbled 9%
since its earnings release at the start of August. However,
Apple has become much more than its iPhone business and is
steadily diversifying its revenue streams to lean less on product
sales over the long term. In 2019, the company made a major
push into digital services, launching subscription-based
platforms Apple TV+, Fitness+, Arcade, and News+, all in the
same year. The success of these platforms has made Apple's
services segment the second highest-earning part of its
business, after the iPhone. Meanwhile, its rapid growth
suggests it could overtake the company's smartphone segment
one day. In fiscal 2022, services revenue growth hit 14% year
over year, double the iPhone's growth. Then in Q3 2023,
services delivered an 8% rise in net sales, compared to the
iPhone's decline of 2%. Apple's larger focus on services is
promising, considering the business' attractive profit margins.
The digital platforms segment regularly hit profit margins of
70%, with the same metric for products hovering around 35%.
Alongside services, Apple has expanding ventures in artificial
intelligence, virtual/augmented reality, and fintech, which all
have the potential to lessen the company's dependency on the
iPhone. Apple is on a promising growth trajectory, making the
recent dip in its stock an attractive investment option.
Apple's expansion into more digital forms of business is
gradually making it less vulnerable to economic headwinds.
However, the company owes much of its dominance in tech to
the massive popularity of its products and the loyalty they
have garnered from consumers. Apple holds leading market
shares in smartphones, headphones, tablets, and smart
watches, suggesting it has much to gain once the market
rebounds. The tech giant has strategically created an
interconnected ecosystem for its devices, which promotes ease
of use and makes consumers less likely to try out competing
products. The advanced connectivity means an iPhone user is
far more likely to buy a MacBook when shopping for a
computer or an Apple Watch when in search of a smart watch.
Connectivity and consistent quality have granted Apple almost
unrivalled brand loyalty among shoppers. Consumer
preference for its offerings has been most prevalent during an
economic downturn, when the entire tech market suffered from
reductions in spending. In Q2 2023, U.S. smartphone shipments
fell 24% year over year, with Samsung sales tumbling 37%.
However, the same period saw Apple report a more moderate
sales decline of 6%, which allowed its market share to grow
from 52% to 55%. Apple has amassed a substantial user base on
a global level, which is unlikely to dissipate any time soon. The
company's iPhone business could lose out to Huawei in China in
the coming years. However, multiple emerging markets
reported record revenue in Q3 2023. IPhone sales hit new highs
in India, Indonesia, Mexico, the Philippines, Poland, Saudi
Arabia, Turkey and the UAE. Meanwhile, more established
markets such as France, the Netherlands, and Austria enjoyed
record sales for the June quarter. I wouldn't bet against Apple
over the long term, despite recent economic hurdles.
www.apple.in
www. wikipedia.org
www.google.com
www.forbes.com