Report topic apples innovation strategy

National Economics University Advanced Educational Programs REPORT Topic: Apple's innovation strategy Lê Thảo Linh Cao Cự Bảo Nam Hà Công Thành Apple I What makes Apple successful? Overview of Apple: Ask Siri to name the best organization on the planet and it may react: Apple What's more, it's not simply out of familial pride Apple reliably positions exceptionally in benefit, income, showcase capitalization, and customer cachet In 2018, the organization turned into the main arrive at a trillion dollar showcase capitalization, anyway quickly The iPhone, in its eleventh year, has been the organization's brilliant goose, creating several billions in income and benefit Other recognizable Apple items and administrations incorporate Mac PCs and iPad tablets, just as iTunes, the App store, and Apple Music Fundamentally a shopper arranged organization, Apple has inked collusions with Accenture, General Electric, and IBM to extend its infiltration of the endeavor advertise About 60% of income originates from outside the Americas Apple has come to depend on the iPhone for over 60% of deals, while its other equipment items, the iPad and the Mac work area and scratch pad PCs, represent about 10% each Administrations, which incorporates the App Store, iCloud, Apple Music, and Apple Pay versatile installment, is the second greatest income maker, providing about 15% of income The Other Products fragment, which incorporate the AppleWatch and HomePod, makes up the rest of the deals Apple's equipment items are firmly incorporated with the organization's product, which enables its gadgets to work easily, yet here and there limits its market reach and can baffle clients who might want to approach all the more outsider items including equipment The organization's working frameworks are iOS for cell phones, MacOS for PCs, Apple WatchOS for the watch, and tvOS for Apple TV The organization by and large discharges generational updates of its working frameworks once per year Apple directs for all intents and purposes all innovative work in the US With respect to assembling, the organization redistributes significantly all creation to temporary workers found mostly in Asia (China, Korea, and Japan), while some Mac parts are made in the US and Ireland Apple, in light of Cupertino, California, creates 40% of deals in the Americas showcase, which incorporates the US, while Greater China and Europe contribute about a fourth of income and a fifth of income, separately The organization has in excess of 500 Apple retail locations in the US and nearly two dozen nations Australia, China, Canada, and the UK are among the organization's biggest retail location advertises outside the US In 2019 Apple consented to purchase a larger part stake Intel's cell phone modem business for about $1 billion The arrangement incorporates around 2,200 Intel workers and somewhere in the range of 17,000 remote innovation licenses The securing gives Apple command over creating modem chips for its 5G cell phones Apple has been utilizing Qualcomm chips and will keep on doing as such for a long time, as indicated by a 2019 concurrence with Qualcomm chips That should give Apple time to build up its own chips The Intel bargain is required to near to the furthest limit of 2019 In 2018 Apple made a few acquisitions to reinforce and extend a few pieces of its business Apple brought a great part of the equipment that oversees power in iPhones and Apple Watches in-house in an arrangement worth $600 million with Dialog Semiconductor Discourse has provided Power Management Integrated Circuits (PMICs) to Apple since the iPhone was presented In the arrangement, Apple paid $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's arrangements for enlarged and augmented reality-based items made another stride when the organization purchased Akonia Holographics, a secretly held organization in Longmont, Colorado The organization's holographic focal point innovation could be utilized to create eyeglasses that demonstrate data to the wearer The arrangement could propel Apple's endeavors to build up a product offering around enlarged reality innovation Apple, in another 2018 exchange, shut its procurement of Shazam, the music distinguishing proof application for cell phones At the point when a client opens the Shazam application while music is playing, the application recognizes the tune and craftsman Shazam, situated in the UK, has worked since 2012 and was an early contribution on Apple's application store with in excess of a billion downloads since Additionally in 2018 Apple gained Texture, which offers advanced memberships to around 200 magazines for a month to month charge The obtaining openings into Apple's administrations section, which incorporates Apple Music Magazines accessible on Texture, which has been known as the Netflix of magazines, incorporate the New Yorker, Men's Health, Time, Rolling Stone, Real Simple, and Cosmopolitan Surface's parent organization, Next Issue Media LLC, is possessed distributers Condé Nast, Hearst, Meredith, and Rogers Media, and private value firm, KKR Other 2018 acquisitions were of Platoon, an engineer of investigation apparatuses to furnish artists with the capacities record names used to deal with, and Silk Labs, which creates man-made brainpower for advanced partners, to additionally build up the 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 (finished September), Apple's income expanded 16% to $265.6 billion, about $36 billion in excess of 2017 income Deals of the iPhone (up 18%), Services (up 24%), and Other Products (up 35%) drove the increase The iPad and Mac classifications posted decays of 2% and 1%, individually, in 2018 from 2017 The higher iPhone income was driven by the more significant expenses the organization charged for models discharged in 2017; it sold only 966,000 units more in 2018 than it did in 2017 The organization credited higher App Store and authorizing income for the increase in the Services section Deals increments in geographic districts coordinated the general development rate, with the exception of Japan's 23% expansion 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 The organization's coffers held about $237.1 billion in real money, reciprocals, and momentary protections in 2018 contrasted with $268.9 billion out of 2017 Tasks produced $77 billion in real money and contributing exercises gave about $16 billion while financing exercises utilized about $88 billion In 2018 Apple discharged another round of iPhones with the new iPhone XS and iPhone XS Max They run on an Apple-planned chip that utilizations AI for managing photographs, gaming, increased reality, and different capacities and highlights The expense is about $1,000 and up Apple has been supported by the 2018 exhibitions of its Services and Other Products fragments Administrations, which includes Apple Music, the App Store, and Apple Pay, became 24% in 2018 from 2017, and represents a higher level of generally speaking deals than the iPad and Mac fragments The organization likewise presented the HomePod, its entrance in the home advanced partner race against Amazon's Alexa and's Google Home The HomePod runs about $350 contrasted with under $200 for the contenders' items, yet it has better solid, as indicated by Apple Income from Other Products (HomePod, Apple Watch and Apple TV) rose 35% year-to-year The organization changed the name of the fragment to Wearables, Home and Accessories With its 2019 monetary revealing, Apple said it would no longer unveil the quantity of telephones, PCs, and tablets sold, and, rather, depend on marketing projections to pass on its exhibition AR is the establishment for understanding the subsequent need, advancement The AR capacities in the most recent adaptations of the iOS make the working framework the world's biggest stage for increased reality and engineers have made more than 1,000 applications with AR highlights AR could give telephone clients more data about where they are and what they're doing The organization's history of advancement has driven the media, investigators, and clients to anticipate huge items from Apple all the time They're frustrated when it neglects to convey College dropouts Steve Jobs (1955-2011) and Steve Wozniak established Apple in 1976 in California's Santa Clara Valley After Jobs' first deals call brought a request for 50 units, the couple assembled the Apple I in his carport and sold it without a screen, console, or packaging Request persuaded Jobs there was an unmistakable market for little PCs, and the organization's name (a reference to Jobs' spell on an Oregon ranch) and the PC's easy to use look and feel set it apart from others The organization's Macintosh made a sprinkle in the mid-1980s, driven by its Super Bowl business in 1984 As the organization developed, Jobs was constrained from the organization Apple never coordinated the IBM PC in absolute deals, yet it had a social cachet and usability that prompted its decent footing in training, distributing, and other inventive enterprises 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 Document continues below Discover more from: Innovations Management Đại học Kinh tế Quốc dân 52 documents Go to course Premium Vinfast Stakeholder Relationships, Social Responsibility, and Corporate Governance Innovations Management 100% (2) C2 - Business Ethics 20 Innovations Management 100% (1) Premium Đề cương ôn tập Innovation management 2022 Innovations Management 100% (1) Brief Assignment GroupPremium 26 Innovations Management Final project brief Ford 11 Innovations Management 100% (1) Premium 100% (1) Final project brief Innovations Management 100% (1) important doubly, on the off chance that we review that in the late 1990s, things turned out badly with Apple The arrival of Jobs to the organization actually spared her On account of Steve during the 2000s, Apple discharged various lead items — the iPod, later the iPhone, without overlooking the PCs of the Mac line Occupations' next huge item dispatch was the iPhone Consolidating the highlights of an iPod with those of a telephone and PC, the iPhone empowered clients to cause calls, to tune in to music, and peruse the Internet on one touchscreen-competent gadget Other than synchronization to iTunes, the iPhone included a selective App Store that freed clients from buying content from remote transporters Before the App Store, remote transporters controlled the conveyance of substance to telephones On Nov 1, 2018, Apple declared it would no longer report the quantity of iPhones sold In any case, between its underlying dispatch in June 2007 and Nov 2018, combined overall deals for the iPhone had taken off to roughly 2.2 billion Tim Cook: Cook participated in Apple in 1998 as Senior Vice President (SVP) He had accepted a dangerous choice as Apple's benefits were on a decay and the organization's future looked dubious at the best Notwithstanding, Cook had a natural inclination that he had taken the correct choice He actualized steps to reduce expenses, which joined with Apple's showcasing advancements served to turnaround the fortunes of the organization HII ( High Involvement Innovation): Apple likewise gives limits on its scope of items to additionally help inspiration, also retail staff's capacity to sell the items Moreover, Apple doesn't simply remunerate work inside the organization It likewise remunerates chipping in The organization's new gift coordinating project, for instance, is being turned out to all workers Workers state they think that its remunerating that they aren't micromanaged – a tone Steve Jobs himself set when he gave his group their central goal "to make a telephone that individuals would cherish so much that they could never go out without it." Maybe Apple's most noteworthy accomplishment is that they have made an inclination that the work itself is fulfilling With a quarterly income of $58 billion and an unbelievable market valuation of over $1 trillion, Apple is assuredly a beneficial undertaking Nonetheless, Tim Cook says individuals shouldn't get up on the numbers Rather, Apple's advancement approach centers rather around improving individuals' lives with shrewd and natural items This 'individuals first' approach is at the very heart of Apple's advancement culture "We're a gathering of individuals attempting to improve the world," says Cook "That is what our identity is For us, the innovation is a foundation thing We create items so that we inject humankind into them We pay attention to our qualities very, and we need to ensure the entirety of our items mirror those qualities Physical environment: Apple Park Design: Apple Park is the corporate headquarters of Apple Inc., located at One Apple Park Way in Cupertino, California, United States It looks like a spaceship which is designed by Norman Foster It houses in excess of 12,000 workers in a single focal four-story round structure of roughly 260,000 square meters - Other facilities: + Cafés: The grounds have seven Cafés, with the biggest being a three-level Café for 3,000 sitting individuals It has light-hued stone fixing and glass railing with no metal help, and is encircled by broad finishing + Auditorium: Called as the Steve Jobs Theater, It is an underground, 1,000-seat hall planned for Apple item dispatches and press meets It has an enormous over the ground chamber formed hall with steps down to the assembly hall + Wellness center: A 100,000-square-foot (9,300 m2) wellness focus is situated in the northwest of the grounds Aside from gym equipment, the wellness community highlights different comforts like evolving rooms, showers, clothing administrations, and spaces for bunch meetings + Research and development facility: Include two enormous 300,000 square feet (29,000 m2) structures on the southern edge of the grounds Culture: Apple has culture for creative innovation The cultural features of Apple focus on creativity and thinking beyond the standards Cultural support helps Apple become a major competitor in the business As a result, Apple is always at the forefront of technological innovation and developing high quality products Apple’s culture included: Apple’s culture included: - Creativity Support the creativity of employees Knowledge and skills are always taken seriously creativity of knowledge and skills to bring efficiency at work We can see the creativity through the designs of Iphone: 4, 5, - Innovation Innovation in thinking and products Apple is considered one of the most innovative companies in the world The company motivates employees to improve their performance From innovation, the company will launch more quality products From innovation, the company will launch more quality products - Secrecy Keep confidential in information This is part of the company's strategy The information will be kept proprietary, avoiding stealing ideas Confidentiality also intrigues its customers, prompting new products to be expected Confidentiality also intrigues its customers, prompting new products to be expected - Top-notch excellence Recruit the best people and fire the unsatisfactory employees Tim Cook inherited that tradition That promotes business development Everyone must always try to complete the task as quickly and best as possible to continue working Everyone - Moderate combativeness Pose challenges to employees to be more productive During the time of Steve Jobs, he often randomly presented challenges to his employees Random challenges make employees feel more excited to work, thereby delivering better results challenges make employees feel more excited to work, thereby delivering Pose challenges to employees to be more productive During the time of Steve Jobs, he often randomly presented challenges to Policies: Building a strong corporate culture 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 1992 Neil Papworth sent the first ever text message to Vodafone director Richard Jarvis's Orbitel TPU 901 phone It read “happy Christmas!” 1994 IBM brought out the Simon which had a touchscreen and a very early form of what we all know today as ‘Apps’ It cost $899 and only worked in 15 states in the US Nokia also launched the 2110 in Europe, it was one of the smallest GSM phones available and a choice of ringtones which brought us the iconic Grande Valse, now known as the Nokia tune 1996 The first ever phone with the ‘slider’ form factor came in the shape of the Nokia 8110 It had the nickname the banana phone due to its shape and even made an appearance on the big screen in the Matrix It was also the first device 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 1997 The notorious game Snake is launched on the Nokia 6110 which denotes the beginning of mobile gaming Ericcson brought out coloured keyboard panels and Siemens brought us the first coloured screen phone – the Siemens S10 1998 17 Nokia launched the 5110 which was enormously well known with the consumer market and it incorporated replaceable faceplates (which Nokia branded 'Xpress-on covers') making it the first genuinely customisable phone 1999 WAP(Wireless Application Protocol) launches on the Nokia 7110 making it the first phone capable of browsing the web yet a cut-down version which didn’t provide the full HTML experience like we know today 2000 The Sharp J-SH04 becomes the first camera phone on the market but only available in Japan BlackBerry launch their 857 which support email and web browsing signifying the start of BlackBerry’s reign as the business phone kings Nokia also launched maybe the most iconic phone of all time – the Nokia 3310 It sold 126 million units 2001 Full-colour displays start to hit the market first with the Mitsubishi Trium Eclipse but the Ericcson T68i QWERTY keyboards also made an appearance in the shape of the Nokia 5510 but it was the 8310 that proved the popular phone due to its slick design and cutting edge features including Infrared, a fully functional calendar and an FM radio 2002 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 2003 18 The Finnish giant’s best-selling phone of all time, the Nokia 1100, hit the shelves and had since sold over 200 million units 3G networks begin to be turned out across the globe, providing data transmission speeds three times to ten times faster than the old 2G technology This enabled users to watch video clips, take an interest in video conferencing and utilise location-based services for the very first time 2004 Motorola launches the Razr V3 – one of the most well known 'design' orientated telephones between 2004 and 2006 It sold over 130 million units and is the best-selling clamshell device of all time and arguably set the standard for future sleek designs to come 2005 Android, the mobile operating system was acquired by Google was serious about mobile technology 2006 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 2007 June 2007 saw the launch of the 1st generation iPhone Disclosed by Steve Jobs, it featured an auto-rotate sensor, a capacitative screen that allowed multiple different inputs while ignoring minor contacts Obviously, needless to say, it was an instant success 2008 The first Android phone is released called the G1 It has a limited touchscreen and a slide out keyboard Elsewhere Microsoft decides to bin Windows Mobile citing that it cannot 19 compete with iOS or Android It begins work on a brand new OS – Windows Phone Apple also launches the App store with 552 apps available to download 2010 Apple launched the iPhone but antenna problems plagued it Google finally released a branded smartphone - the Nexus One 2011 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 2013 Fingerprint scanning went mainstream when it launched on the iPhone 5S via the touch button 2015 Chinese firms Huawei and Xiaomi make strides in Western Markets, but both Samsung and Apple continue to dominate with the Galaxy S5 and iPhone 6S respectively holding 38% of the global market share between them 2016 Google abandon their Nexus branding and replace it with the Pixel, releasing two new high-end smartphones; the Pixel and Pixel XL Both are hoped to compete directly with Apple’s iPhone and Plus Samsung Galaxy S6 edge with the most beautifiul design 2017 Microsoft ends support for the Windows Phone OS, just years after its response to Android and iOS Screen design dominance continues to rise, with Samsung Galaxy S8 and iPhone X adopting over 82% screen-to-body ratios 2018 20 Chinese manufacturer Ulefone launches the Power incorporating a 13,000 mAh battery, the largest ever seen in a mobile phone over four times greater than Apple's flagship, the iPhone XS Max released in the same year 2019 Apple released the flagship iPhone 11 Pro Max with many high-tech feature Following by Samsung Galaxy Note 10 Plus and Samsung Galaxy S20 Ultra with a state-of-the-art camera and excellent filming feature Future phone technology Some of these technology will be competing with the smartphone that we know today : First, Holographic display, rumours were flying around about the holographic phones since 2014 but it had not yet became the truth, so this might hit the shelves real soon Second, Flexible frame phone, the Samsung Galaxy Fold and Galaxy Z Flip had already on the shelves since the end of 2019, but not many interested in them due to their durability, many Fold and Z Flip had already broken after million times of expand Third, Eco-friendly materials phone, we already known that the material that we are using for smartphones today are not good for our environment so this possibly a challenger in the near future for smartphones 21 Smartphone Feature phone 1982 Nokia Senator 1983 1992 1994 IBM Simon Motorola DynaTAC Nokia 1011 8000X 1997 2000 1996 Siemens S10 Nokia 2007 2008 Nokia N95 Sharp J-SH04 and The iPhone 2010 2011 Samsung Galaxy S 2013 2016 2019 Google Pixel and S6edge iPhone and Nokia Lumia 1020 HTC Dream G1 Samsung GalaxyNote N7000 and iPhone 3G 9000Communicator and MotorolaStarTAC and Nokia8110 22 - Feature phone had been struggling in upgrading its technological performance over time In the first 10 years, Feature phones barely even improve their performance - When the first smartphone was on the shelf,the IBM Simon, Feature phones were still widely used by consumers around the world - Nokia, Motorola, and Ericsson overwhelmed the business well into the 1990s, until new participants reshaped the market Nokia, Motorola, Samsung and Siemens were the pioneers by overall piece of the overall industry A lot of overall cell phone shipments were 34.7%, 14.5%, 10.5%, and 8.4% separately, in 2003 After the spinoff of Ericsson phones, Sony Ericsson had a worldwide share of 5.1% (Source: Gartner Dataquest, 2004) In second quarter of 2004, Nokia’s market share dropped to 29.3% Gains were made by the major firms, with Samsung (14.6%) inching closer to Motorola (15.3%) Given these trends, Samsung was widely expected to overtake Motorola 23 - By 1997 GSM had ignited the mobile phone revolution and in the process had up-ended the global mobile phone industrial scene Motorola lost its crown to Nokia and was never given the space to re-guarantee it From 1991-2000 Nokia’s number of workers had doubled, net sales grew ten times and operating profit grew a hundred times - But when the iPhone was first released, it right away revolutionized the smartphone industry In 2007, when the first iPhone came out, the smartphone industry bloomed, every big firms jumped in to manufacture their own smartphone, built their reputation The first Apple iPhone sold 6.1m units over the first 15 months At first, iPhone was really expensive, sold at price of $499,it was an instant success, but after some time, with technology improvement and price decreasing, iPhones were becoming more popular for consumer - But new data from the International Monetary Fund (IMF) suggests the smartphone’s dazzling rise may be reaching its peak - Despite China’s immense production capabilities, its domestic smartphone market declined by 4% last year, while Apple recorded a year-on-year decrease in iPhone sales in the fourth quarter of 2017 - Many of the modern phones currently on the market have touchscreen interfaces, all of which have fundamentally the same as structures In 2008, 23% of all mobile phone sales were touchscreen smart phones, compared to only 13% in 2007 The figure had risen to above 45% by May 2010 There could be any number of reasons for the growing popularity of these devices, including design trends, marketing techniques or dropping down device costs; however, it is likely that the touchscreen allows for new ways in - Nokia’s market share worldwide had fallen significantly due to the fast development of smartphones - Samsung has taken the leading place from Apple on account of its wide price range and lower entry-level price point, Samsung has the biggest worldwide offer in lower income areas and developing countries It holds a favorable position over Apple in emerging markets like Asia and Africa - Apple maintains the market shares at an acceptable level 26 - Palm was the second largest mobile maker in the world just behind Nokia Palm became a victim of Apple in 2007 when the first iPhone come to live Being in the same market where Apple is the strong rival, especially in the US, Palm died very fast Same with the case of Nokia and Siemens Tigermobiles.com, Evolution of Mobile Phone, 2019 April Montgomery and Ken Mingis, Computerworld, The evolution of Apple’s iPhone, September-10-2019 The Economist,The origins of Vertu, February-20-2003, Retrieved 28 April 2013 History of mobile phone and the first mobile phone , June-04-2020 27 Nobl Academy, Always be Innovating : Lessons from Apple and the Scurve, April-8-2016 Journal of Public Transportation, June-2017 Catherine Hiley, Future mobile phones: What’s coming our way?, June-142020 Mobile Vendor Market Share Worldwide 10 A.Britton, R.Setchi, A.Marsh, Intuitive interaction with multifunctional mobile interfaces, November-27-2012 11.Rob Smith, IBM created the world’s first smartphone 25 years ago, 2018 12 Vintage Mobiles 13.Pankaj Nagpal, Kalle Lyytinen, Key Actors in the Mobile Phone Industry : Feature Phone Years and the Rise of Nokia, 2013 28 Table of Contents I What makes Apple successful? Overview of Apple: 2 Leadership of Apple: .7 HII ( High Involvement Innovation): Physical environment: Apple Park Culture: Policies: .10 II Type of Innovation 10 Product: 10 Process 12 Marketing .12 III Sources of Innovation 13 IV S-curve of Apple 15 29 30 31