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Apple
By Raza Ashai (uniqname: mashai)
Why Apple?
 Long time Apple fan
 Convert to both macOS and iOS
 Massive influencer and trendsetter in consumer tech
 One of the most valuable companies in the world
despite:
 slim product line and
 mostly consumer focus
Problem: Accessibility
 Computing is inaccessible and difficult  Apple II and
Macintosh
 Computing and the connectivity (the internet) should be more
accessible on-the-go  iPhone and Apple Watch
 Songs are restricted to CDs and albums  iTunes, the iPod,
and Apple Music
Timeline
1998
iMac G3
Representative of a shift company culture
towards beautiful design during the Steve
Jobs comeback
2001
iTunes and the iPod
iTunes ushered in the ability to get music in a
totally different method, and the iPod was
created to handle this new digital era of music
1977
Apple II
The first real Apple success that made
personal computing a reality for millions
1984
Macintosh 128K
Commercially successful GUI
Timeline (continued)
2010
iPad
Revolutionized the tablet market off of the
back of the iPhones success
2015
Apple Watch
Became the worlds most popular wearable
within two quarters of its release
2007
iPhone
The phone that defined the subsequent future
of smartphones
2008
Macbook Air
Among the first ultrabooks to be
commercially successful, lead the industry in
designs
Persona:
Steve Soloway
 Older, values
simplicity/usability over
advanced customization
features
 Owns and enjoys a Macbook
Pro
 Most of his family and
friends own iPhones, he
does not
Secret Sauce
 Software? Not really.
 Hardware? Definitely not.
Secret Sauce
 Streamlined Innovative
Products
 Walled Garden
Ecosystem
Business Model
 Own the consumer  get customers to the ecosystem and
make it too inconvenient to leave
 Sell a wide range of products that sell each other
 Services either serve to keep you in the ecosystem (iCloud) or
sell you something directly
Financials: Revenue
Financials: Annual Net Income
Financials: Overview
Addressing an Elephant in the Room...
iPhone Sales vs Mac Sales
Context
 Even in the 2018 Q2 iPhone sale slowdown, Apple accounted
for 62% of the profits of all smart phones
 With 7% market share, Mac captures 60% of profit (2016)
 Takeaway: slowdown in sales  the death of Apple
Competition: Mobile space
Apple Android
Flagship/Premium
Phones
Android
Budget
Phones
Convenient
integration
into robust
ecosystem
X
Integrated
privacy
(messaging,
etc)
X
Customization
X X
Competition: Mac vs PC
Mac Windows PCs Linux PC
Easy to use
X
Quick, easy,OEM
repairs
X
Value for
hardware
internals X X
Prediction: Success?
 Depends on your definition of success
 Probably wont grow as much as it did ever again
 Still will be very relevant in the future, making strides
to improve sales
References
https://www.telegraph.co.uk/active/10593527/Apple-Timeline.html
https://www.businessinsider.com/apple-comeback-story-2010-10
https://www.scientificamerican.com/article/whats-changed-since-my-first-column-for-scientific-american/
https://www.theinquirer.net/inquirer/news/2418517/apple-watch-is-worlds-best-selling-wearable-with-42-million-shifted-in-q2
https://techcrunch.com/2015/01/27/tim-cook-says-apple-watch-should-ship-in-april/
https://www.sciencedirect.com/science/article/pii/S015599821300032X
https://www.macrotrends.net/stocks/charts/AAPL/apple/revenue
https://www.macrotrends.net/stocks/charts/AAPL/apple/operating-expenses
https://www.macrotrends.net/stocks/charts/AAPL/apple/net-income
https://www.cnet.com/news/apples-iphones-hit-a-wall-now-we-know-how-bad-it-is/
https://www.theguardian.com/technology/2019/jan/27/apple-greatest-crown-slipping-results-tim-cook-comeback
https://www.marketwatch.com/story/tim-cook-apple-swapped-out-11-million-iphone-batteries-2019-01-15
https://www.techradar.com/reviews/iphone-8-review
https://appleinsider.com/articles/18/04/17/apple-grabs-86-of-smartphone-profits-globally-iphone-x-alone-seizes-35
https://www.ped30.com/2016/11/03/apple-dediu-macbook-pro/
https://wccftech.com/apple-iphone-sales-62-percent-global-profits/
http://fortune.com/2018/12/03/analyst-says-airpods-sales-will-go-through-the-roof-over-the-next-few-years-report-says/
https://www.businessinsider.com/apple-must-reverse-angela-ahrendts-luxury-brand-strategy-2019-2
https://www.statista.com/statistics/276306/global-apple-iphone-sales-since-fiscal-year-2007/
https://www.statista.com/statistics/276308/global-apple-mac-sales-since-fiscal-year-2002/

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