What makes Apple successful?
Overview of Apple
When asked to name the best organization on the planet, Siri might respond with "Apple," and this isn't just due to brand loyalty Apple consistently ranks highly in profitability, revenue, market capitalization, and customer prestige.
In 2018, the organization achieved a significant milestone by becoming the first to reach a trillion-dollar market capitalization The iPhone, now in its eleventh year, has been a major contributor, generating billions in revenue and profit Other key products and services include Mac computers, iPads, iTunes, the App Store, and Apple Music As a consumer-focused company, Apple has formed partnerships with Accenture, General Electric, and IBM to enhance its presence in the enterprise market, with approximately 60% of its revenue coming from outside the Americas.
Apple relies heavily on the iPhone, which accounts for over 60% of its revenue, while the iPad and Mac devices each contribute around 10% Services such as the App Store, iCloud, Apple Music, and Apple Pay generate approximately 15% of the company's income The remaining sales come from the Other Products segment, which includes the Apple Watch and HomePod.
Apple's devices are seamlessly integrated with the company's software, enhancing functionality but sometimes limiting market reach and frustrating users seeking third-party hardware options The operating systems include iOS for mobile devices, macOS for computers, watchOS for the Apple Watch, and tvOS for Apple TV.
The organization by and large discharges generational updates of its working frameworks once per year
Apple primarily conducts its research and development in the United States, while outsourcing most of its manufacturing to contractors in Asia, particularly in China, Korea, and Japan Some components are also produced in the US and Ireland Based in Cupertino, California, Apple generates 40% of its sales from the Americas, which includes the US, with Greater China and Europe accounting for approximately a quarter and a fifth of its revenue, respectively.
The organization operates over 500 Apple retail stores across the United States and nearly 24 countries worldwide Key international markets for the brand include Australia, China, Canada, and the United Kingdom.
In 2019, Apple agreed to acquire a majority stake in Intel's smartphone modem business for approximately $1 billion, which includes around 2,200 Intel employees and 17,000 wireless technology patents This acquisition enables Apple to take control of the development of modem chips for its 5G smartphones While Apple has been using Qualcomm chips and will continue to do so for several years due to a 2019 agreement, this timeline allows Apple to develop its own chips The Intel deal is expected to close by the end of 2019.
In 2018 Apple made a few acquisitions to reinforce and extend a few pieces of its business
Apple has significantly enhanced its power management capabilities by acquiring key equipment for iPhones and Apple Watches through a $600 million deal with Dialog Semiconductor Since the launch of the iPhone, Dialog has been a crucial supplier of Power Management Integrated Circuits (PMICs) to Apple This strategic acquisition marks a pivotal shift in Apple's approach to power management technology.
$300 million for the 300-part Dialog designing group that deals with Apple's PMICs, PMIC licenses, and workplaces in the UK, German, and Italy The other
$300 million went to secure a three-year gracefully of PMICs and different chips
Apple has taken a significant step in its augmented and virtual reality initiatives by acquiring Akonia Holographics, a private company based in Longmont, Colorado This acquisition brings advanced holographic lens technology that could enable the development of smart glasses displaying information directly to the user This move is expected to enhance Apple's strategy in creating a comprehensive product line centered around augmented reality technology.
In 2018, Apple acquired Shazam, the popular music identification app that allows users to recognize songs and artists by simply opening the app while music is playing Established in the UK in 2012, Shazam has been a staple on Apple's app store, achieving over a billion downloads.
In 2018, Apple acquired Texture, a subscription service that provides access to approximately 200 magazines for a monthly fee, enhancing its services segment, which includes Apple Music Known as the "Netflix of magazines," Texture features prominent titles such as The New Yorker, Men's Health, Time, Rolling Stone, Real Simple, and Cosmopolitan The service is operated by Next Issue Media LLC, which is owned by major publishers like Condé Nast, Hearst, Meredith, and Rogers Media, along with private equity firm KKR.
In 2018, notable acquisitions included Platoon, a company specializing in research tools that empower artists with capabilities typically managed by record labels, and Silk Labs, which focuses on artificial intelligence for smart assistants, enhancing the development of HomePod and Siri.
The notoriety of the iPhone filled Apple's solid income and profit development in the previous decade The organization's income and benefit hit unequaled highs in
2015, coming in at $234 million and $53 million, individually Income and profit fell in 2016 with more fragile iPhone deals Development continued in 2017 and
2018, when it posted record income and benefit
In 2018, Apple's revenue grew by 16% to reach $265.6 billion, exceeding the previous year's income by approximately $36 billion This growth was primarily fueled by an 18% increase in iPhone sales, a 24% rise in Services, and a remarkable 35% surge in Other Products However, the iPad and Mac categories experienced declines of 2% and 1%, respectively, compared to 2017.
In 2018, the increase in iPhone revenue was primarily due to higher prices for models released in 2017, resulting in only a modest sales increase of 966,000 units compared to the previous year The company attributed the growth in its Services segment to higher App Store and licensing revenues Additionally, sales growth across various geographic regions aligned with the overall growth rate, except for Japan, which experienced a notable 23% increase.
Apple's benefit rose 23% to $59.5 billion of every 2018 from $48.3 billion the prior year as it kept up most expenses at 2017 levels as a level of deals
In 2018, the organization's financial reserves amounted to approximately $237.1 billion, including cash, equivalents, and short-term securities, a decrease from $268.9 billion in 2017 The operations generated $77 billion in cash, while investment activities contributed around $16 billion, and financing activities accounted for the utilization of about $88 billion.
Leadership of Apple
- Steve Jobs: Apple is one of the most expensive company in the world.These accomplishments of Apple and Steve Jobs are actually
Innovations Management Đại học Kinh tế Quốc dân
Vinfast Stakeholder Relationships, Social Responsibility, and Corporate Governance
20 Đề cương ôn tập Innovation management 2022
In the late 1990s, Apple faced significant challenges, but the return of Steve Jobs revitalized the company, leading to groundbreaking product launches in the 2000s, including the iPod and the iPhone The iPhone, a revolutionary device that combined the functionalities of an iPod, phone, and computer, allowed users to make calls, listen to music, and browse the Internet on a single touchscreen device It also introduced the App Store, empowering users to access content without relying on mobile carriers By November 2018, Apple announced it would stop disclosing iPhone sales figures, yet between its launch in June 2007 and November 2018, total global sales reached approximately 2.2 billion units.
- Tim Cook: Cook participated in Apple in 1998 as Senior Vice
When Tim Cook became President (SVP) of Apple, he faced a challenging situation with the company's declining benefits and uncertain future However, he instinctively believed he had made the right choice and took decisive action to cut costs This, combined with innovative marketing strategies, ultimately helped to revitalize Apple's fortunes.
HII ( High Involvement Innovation)
Apple strategically limits its product range to enhance motivation and empower retail staff in their sales efforts Additionally, the company values community involvement by rewarding employees for their volunteer work A notable initiative is Apple's new matching gift program, which is being rolled out to all employees to support their philanthropic contributions.
Employees appreciate the freedom from micromanagement, a principle famously championed by Steve Jobs, who inspired his team with the mission to create a phone that people would love so much they wouldn't leave home without it.
Apple's most significant achievement lies in creating a fulfilling work environment, reflected in their impressive quarterly revenue of $58 billion and a market valuation exceeding $1 trillion However, CEO Tim Cook emphasizes that the focus shouldn't solely be on these numbers Instead, Apple's innovation strategy prioritizes enhancing people's lives through intuitive and intelligent products This 'people first' philosophy is central to Apple's culture, as Cook states, "We're a group of people trying to improve the world." He highlights that technology serves as a foundation for their mission to infuse humanity into their products, ensuring that their values are deeply integrated into everything they create.
Physical environment: Apple Park
Apple Park, located at One Apple Park Way in Cupertino, California, serves as the corporate headquarters of Apple Inc Designed by renowned architect Norman Foster, this innovative structure resembles a spaceship and accommodates over 12,000 employees within its expansive four-story circular layout, covering approximately 260,000 square meters.
The grounds feature seven cafés, with the largest being a three-level establishment that accommodates 3,000 guests This café boasts a modern design with light-colored stone finishes and glass railings, eliminating the need for metal supports, all set within beautifully landscaped surroundings.
The Steve Jobs Theater is an underground auditorium designed to host Apple product launches and press events, featuring a spacious 1,000-seat hall Its striking above-ground structure leads to a descending chamber that enhances the overall experience of attendees.
The wellness center, spanning 100,000 square feet in the northwest area of the grounds, offers a comprehensive focus on health and fitness In addition to state-of-the-art gym equipment, the facility features amenities such as changing rooms, showers, laundry services, and spaces designed for group activities.
+ Research and development facility: Include two enormous 300,000 square feet (29,000 m2) structures on the southern edge of the grounds.
Culture
Apple fosters a culture of creative innovation, emphasizing creativity and out-of-the-box thinking This cultural foundation positions Apple as a leading competitor in the industry, enabling the company to consistently deliver cutting-edge technology and high-quality products.
Encouraging employee creativity is essential for fostering a productive work environment By valuing and enhancing knowledge and skills, organizations can significantly boost efficiency This creativity is evident in innovative designs, such as those seen in the evolution of the iPhone models 4, 5, and 6, showcasing how creativity can lead to remarkable advancements in technology.
Apple is recognized globally as a leader in innovation, consistently driving advancements in both thinking and product development The company fosters a culture that encourages employees to enhance their performance, which directly contributes to the creation of high-quality products Through its commitment to innovation, Apple continues to set the standard for excellence in the technology industry.
Maintaining confidentiality is a key component of the company's strategy, ensuring that proprietary information remains secure and protecting innovative ideas from theft This commitment to confidentiality not only safeguards the company’s assets but also captivates customers, creating anticipation for upcoming products.
To drive business growth, it is essential to recruit top talent while also making the tough decision to let go of underperforming employees Tim Cook has embraced this principle, emphasizing the importance of efficiency and excellence in task completion for ongoing success.
Encouraging employees to tackle challenges can significantly boost productivity During his tenure, Steve Jobs frequently introduced spontaneous challenges to his team, fostering a sense of excitement and engagement This approach not only motivated employees but also led to improved performance and outcomes.
Pose challenges to employees to be more productive During the time of Steve Jobs, he often randomly presented challenges to
Policies
Corporate culture plays a crucial role in fostering mutual respect among employees at Apple, a global corporation with a diverse workforce comprising various nationalities and ethnic backgrounds This emphasis on respect enhances solidarity and boosts overall work efficiency.
- Expand "airspace" development for employees
Employees always have their own time and space to be creative Employees are empowered to learn, detect, and correct errors of Apple products themselves.
- challenge the capabilities of employees at Apple
Many employees are experiencing burnout, leading to decreased performance and challenges in retaining talent At Apple, employees often face demanding tasks that exceed their current capabilities, yet they consistently manage to complete their work successfully.
- Control deadlines and work performance
At Apple, maintaining productivity is crucial, and stagnant working time is not tolerated Human Resources Managers play a vital role in setting strict deadlines for task completion, ensuring that employees meet their objectives promptly.
In addition to being well paid, Apple employees are cared for both physically and mentally.
Type of Innovation
Product
The Mac, introduced in a legendary Super Bowl ad in 1984, was pivotal in establishing Apple as a leading company, with its successors selling 20.6 million units last year and generating $25.5 billion in revenue It was the first commercially successful computer to feature a mouse and a graphical user interface, revolutionizing personal computing.
Despite its popularity, the global market share of PCs stands at only 7.8%, according to industry experts at IDC, indicating that Macs face competition similar to that of other brands.
PC to the fast move of processing assignments to cell phones
Apple continues to benefit from iPhone sales, which is not a significant concern for the company Additionally, Apple has been gaining market share, especially in the United States, leveraging the growing popularity of its smartphones.
In 2000, BusinessWeek celebrated Steve Jobs' return to Apple with the headline "Truly, Steve, You Fixed it Well done Presently What's Act Two?" The subsequent year, Apple unveiled the game-changing duo of the iPod and iTunes, revolutionizing the music industry forever This innovation allowed users to carry 1,000 songs in their pockets, a concept that has since become a reality for many.
By the end of 2014, Apple had sold 390 million iPods, although the company no longer reports iPod sales figures separately At that time, iTunes had sold approximately 35 billion songs, which equates to about 1,000 songs for every person in Canada However, the rise of streaming services like Pandora and Spotify, along with the illegal sharing of copyrighted content, has impacted iTunes significantly As a result, Apple has shifted its focus and launched its own streaming service, Apple Music, which currently boasts 13 million subscribers.
Since its launch in 2007, the iPhone has transformed the mobile landscape, evolving from a simple cell phone to a powerful portable computer that has driven a thriving mobile economy across various industries, including advertising, music, and logistics However, recent data reveals a significant decline in iPhone sales, with a 16 percent drop in the March quarter, particularly pronounced in Greater China, where Apple's overall sales plummeted by 26 percent to $12.5 billion, accounting for a quarter of the company's total revenue.
A year ago, Apple sold 231 million iPhones, generating $155 billion in revenue, reflecting a significant increase since 2014, despite a downturn in China's growth Currently, iPhone sales account for approximately 66% of Apple's total income CEO Tim Cook has indicated that India could benefit from China's economic slowdown However, the company's guidance on April 26 led analysts to believe it may take at least another quarter to improve the situation The upcoming release of the iPhone 7 this fall may be key to reigniting consumer interest.
Process
Jony Ive, the Chief Design Officer at Apple, leads a design team that operates independently from finance and manufacturing departments This autonomy allows them to establish their own budgets and prioritize creative vision over manufacturing constraints.
The Industrial Design Studio is the core of Apple's design department, accessible only to a select group of employees, fostering the development of exceptional products When a design team works on a new product, they are isolated from the broader Apple organization, often implementing physical barriers to prevent communication with other staff This separation also removes them from the usual corporate hierarchy, allowing them to create their own reporting structures and directly communicate with the executive team As a result, the team can focus on design without being distracted by daily operational details.
Marketing
Jobs emphasized the importance of structural simplicity in design The complexity of mechanical structures, combined with customer requirements, often leads to higher prices Apple has strategically positioned its products at a premium price point, reinforcing the perception of the brand as a luxury item This approach directly connects to the customer's emotional satisfaction and pride in owning an Apple product.
The layout of an Apple store, featuring impressive elements such as the Genius Bar, offers an exceptional customer experience Additionally, Apple maintains exclusivity by carefully monitoring the number of stores it opens.
Prior to the launch of its products, Apple employs a strategic pre-launch process that generates excitement through promotional videos highlighting key features, as exemplified by the buzz surrounding Siri's introduction Steve Jobs ensured that every Apple product launch was a momentous event, reinforcing the brand's significance In the context of the evolving marketing landscape, the rise of SMAC (Social, Mobile, Analytics, Cloud) technologies reflects a deep-rooted industrialism that has influenced consumer behavior This shift has fostered personal connections between consumers and the brand, with many identifying with Steve Jobs' visionary persona As a result, owning an Apple product conveys a sense of uniqueness and exclusivity, embodying the American spirit of capitalism on a global scale.
Sources of Innovation
In recent years, Apple has emerged as a leader in consumer electronics by transforming its industry and market structure According to Drucker, only straightforward and specific strategies have a chance of succeeding in business Apple's journey began in 1977 with a clear vision: to make computers accessible to everyone, not just industry experts and academia This innovative approach is characterized by intentional execution aligned with a smart idea.
In 1977, Apple effectively marketed its Apple II, introducing the VisiCalc spreadsheet program that appealed to both business and home users This strategy created a new demand for the product, mirroring Apple's later success with the iPad in 2010, which generated interest in a previously untapped market Steve Jobs' ability to "redefine known limits" has significantly influenced the tech industry, driving continuous innovation and growth in the electronic business.
Apple's success can be attributed to its innovative products and its ability to accurately identify market needs, a principle highlighted by Drucker who states that need is the mother of all innovation By understanding consumer demand, Apple positions itself for success across its entire business model Interestingly, Steve Jobs admitted to not conducting traditional market research, instead focusing on anticipating future market trends rather than merely reacting to current consumer behavior.
Professor Goldstein views this training as a means to gain a competitive advantage Following the disappointment of the Apple III in 1980, Steve Jobs' visit to Xerox PARC convinced him that all future computers needed a graphical user interface (GUI) The subsequent release of the Apple Lisa generated more capital for Apple than any IPO since Ford Motor Company in 1956 By focusing on innovation rather than imitation, Apple effectively showcased its success before attempting to quantify it The company operates on the belief that customers express their needs through their understanding of what they want: a larger, faster, and more affordable product Apple's ability to identify consumer demand and implement a strategic plan to meet those needs has driven its innovative practices.
Apple's transformation into a hub of innovation can be traced back to Steve Jobs' return in 1996, which reinvigorated the company he co-founded Under his leadership, Apple experienced a significant sales boost with the launch of the iMac and other aesthetically appealing products The introduction of the iPod, iTunes, and iPhone marked Apple's expansion into advanced digital tools, solidifying its status as a global powerhouse Simon Sinek, in his TEDx talk on "The Golden Circle," emphasizes that successful leaders communicate their purpose, not just their products Jobs exemplified this by fostering a brand identity that resonates with consumers, who buy Apple products not only for their quality but also for the vision behind them His influence has been pivotal in reshaping Apple's image into the beloved brand it is today.
Apple Inc is globally recognized as a leading innovator in consumer electronics, known for its remarkable practices shaped by industry dynamics, strategic identification of needs, and transformative organizational insights.
S-curve of Apple
1926: The first successful mobile telephony service was offered to first class passengers on the route between Berlin and Hamburg.
1956: The first automated mobile phone system for private vehicles launched in
Sweden The device installed in the car used vacuum tube technology with rotary dial and weighed 40Kg.
The inaugural mobile phone call was made by Dr Martin Cooper, a Motorola employee, in New York using a prototype DynaTAC phone He famously called a friend at AT&T, marking a significant milestone in telecommunications The DynaTAC phone weighed over a kilogram and required a lengthy 10-hour charging time.
In 1979, Japan pioneered the technology landscape by launching the first commercially available automated cellular network, known as "1G," which was initially accessible only in cars This groundbreaking innovation marked a significant milestone in the evolution of mobile communication.
1G reaches Western shores, first in Scandinavia and then the UK and North America 2 years later.
The Mobira Senator, produced by Nokia, is often regarded as the first true mobile phone for consumers, but its practicality was questionable due to its hefty weight of 10 kilograms, making it impractical for daily use.
The first mobile phone goes on sale : Motorola DynaTAC 8000X It was unaffordable with a price of $4000.
Michael Harrison made the first ever mobile phone call in the UK He called his father, the then Chairman of Vodafone, Sir Ernest Harrison.
The first ever truly portable mobile phone hits the shelves – the Motorola 9800X which features a flip down to cover the keypad.
GSM (Global System for Mobile Communications) phone launched and 2G digital cellular networks replaced the 1G analogue system.
2G made Text messages, picture messages, and multimedia messages (MMS) possible, creating a whole new way for people to communicate.
Neil Papworth sent the first ever text message to Vodafone director Richard Jarvis's Orbitel TPU 901 phone It read “happy Christmas!”.
IBM introduced the Simon, a groundbreaking device featuring a touchscreen and an early version of modern applications, priced at $899 However, its functionality was limited, as it operated in only 15 states across the United States.
Nokia introduced the 2110 in Europe, notable for being one of the smallest GSM phones on the market It featured a selection of ringtones, including the now-iconic Grande Valse, which has become synonymous with the Nokia tune.
The Nokia 8110, famously known as the "banana phone," was the first mobile device to introduce the innovative slider form factor Its unique design earned it a spot in popular culture, notably appearing in the film The Matrix Additionally, the Nokia 8110 was a pioneer in mobile technology, being the first phone to feature a monochrome LCD screen.
Another first came from the Motorola StarTAC as the first ever flip phone or clamshell device It sold over 60 million units worldwide.
The launch of the iconic game Snake on the Nokia 6110 marked the dawn of mobile gaming Following this, Ericsson introduced colored keyboard panels, while Siemens debuted the first colored screen phone, the Siemens S10.
Nokia's launch of the 5110 revolutionized the mobile phone market, becoming immensely popular among consumers This innovative device featured replaceable faceplates, known as 'Xpress-on covers,' which marked it as the first truly customizable phone, allowing users to personalize their devices.
The launch of WAP (Wireless Application Protocol) on the Nokia 7110 marked a significant milestone as it became the first mobile phone to enable web browsing However, this early version offered a limited browsing experience, lacking the full HTML capabilities that modern users expect today.
The Sharp J-SH04 made history as the first camera phone, although it was exclusively available in Japan Meanwhile, BlackBerry introduced the 857, which featured email and web browsing capabilities, marking the beginning of BlackBerry's dominance in the business phone market.
Nokia also launched maybe the most iconic phone of all time – the Nokia 3310 It sold
Full-colour displays start to hit the market first with the Mitsubishi Trium Eclipse but the Ericcson T68i.
The Nokia 8310 gained popularity for its sleek design and advanced features, such as Infrared connectivity, a fully functional calendar, and an FM radio, while the QWERTY keyboard was also seen in the Nokia 5510.
Europe’s first camera phone, the Nokia 7650, was released T-Mobile also announced the UK's first picture messaging service available on the Sony Ericsson T68i.
The 7560's 0.3-megapixel sensor gave you 640×480 pixels of colour imaging.
The Finnish giant’s best-selling phone of all time, the Nokia 1100, hit the shelves and had since sold over 200 million units.
The rollout of 3G networks worldwide has significantly enhanced data transmission speeds, offering improvements of three to ten times over the previous 2G technology This advancement has allowed users to enjoy video clips, engage in video conferencing, and utilize location-based services for the first time.
Motorola introduced the Razr V3, a highly recognized design-focused phone, which gained immense popularity between 2004 and 2006 With over 130 million units sold, it remains the best-selling clamshell device in history and is often credited with establishing the benchmark for future sleek mobile designs.
Android, the mobile operating system was acquired by Google was serious about mobile technology.
The Nokia N95 launched providing the first real smartphone experience It ran on Symbian, had 160mb RAM, the world's first 5-megapixel phone camera, Bluetooth and Wi-FI.
In June 2007, Steve Jobs unveiled the first-generation iPhone, which introduced innovative features such as an auto-rotate sensor and a capacitive touchscreen capable of recognizing multiple inputs while disregarding minor touches Its groundbreaking technology made it an instant success in the market.
The first Android phone, the G1, features a limited touchscreen and a slide-out keyboard, marking a significant milestone in mobile technology Meanwhile, Microsoft discontinues Windows Mobile, acknowledging its inability to compete with iOS and Android, and initiates the development of a new operating system, Windows Phone Additionally, Apple enhances the mobile experience by launching the App Store, offering 552 apps for users to download.
Apple launched the iPhone 4 but antenna problems plagued it Google finally released a branded smartphone - the Nexus One.
Samsung concretes their place as the greatest worldwide cell phone merchant on account of the Galaxy S II which packs an 8MP camera and an AMOLED display.
Fingerprint scanning went mainstream when it launched on the iPhone 5S via the touch button.