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How Apple Is Organized for Innovation

• Joel M. Podolny
• Morten T. Hansen

When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its size and scope. It was divided into business units, each with its own P&L responsibilities. Believing that conventional management had stifled innovation, Jobs laid off the general managers of all the business units (in a single day), put the entire company under one P&L, and combined the disparate functional departments of the business units into one functional organization. Although such a structure is common for small entrepreneurial firms, Apple—remarkably—retains it today, even though the company is nearly 40 times as large in terms of revenue and far more complex than it was in 1997. In this article the authors discuss the innovation benefits and leadership challenges of Apple’s distinctive and ever-evolving organizational model in the belief that it may be useful for other companies competing in rapidly changing environments.

It’s about experts leading experts.

Idea in Brief

The challenge.

Major companies competing in many industries struggle to stay abreast of rapidly changing technologies.

One Major Cause

They are typically organized into business units, each with its own set of functions. Thus the key decision makers—the unit leaders—lack a deep understanding of all the domains that answer to them.

The Apple Model

The company is organized around functions, and expertise aligns with decision rights. Leaders are cross-functionally collaborative and deeply knowledgeable about details.

Apple is well-known for its innovations in hardware, software, and services. Thanks to them, it grew from some 8,000 employees and $7 billion in revenue in 1997, the year Steve Jobs returned, to 137,000 employees and $260 billion in revenue in 2019. Much less well-known are the organizational design and the associated leadership model that have played a crucial role in the company’s innovation success.

• Joel M. Podolny is the dean and vice president of Apple University in Cupertino, California. The former dean of the Yale School of Management, Podolny was a professor at Harvard Business School and the Stanford Graduate School of Business.
• MH Morten T. Hansen is a professor at the University of California, Berkeley, and a faculty member at Apple University, Apple. He is the author of Great at Work and Collaboration and coauthor of Great by Choice . He was named one of the top management thinkers in the world by the Thinkers50 in 2019. MortentHansen

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Apple Business Strategy: Plans that made it a Multi-Trillion dollar Company

The study was first published on September 27, 2021, and then updated on September 18, 2023.

This strategy teardown compiles the ideas, innovations, technological research, partnerships, and, most importantly, the strategies responsible for Apple’s growth to such heights.   Moving forward, let’s go through Apple’s expertise in various sections.

However, before we move forward, here is a small intro about Apple.

On Friday, June 30, 2023, Apple became the first company in history to reach a $3 trillion market valuation. It stays ahead by half a trillion dollars from the second most-valued company on the planet- Microsoft. Apple is now the most profitable technology corporation in the world. 

Steve Jobs, Steve Wozniak, and Ronald Wayne founded Apple on the 1st of April 1976, bringing creativity to the table through their rendition of a personal computer. Apple is one of the world’s most popular and recognized labels. The company has experienced unparalleled revenue growth, from just $8 billion in 2004 to over $274B last year . This is more when compared to other technology giants out there today, such as Google ($181B) and Microsoft ($143B).

Apple’s growth could primarily be attributed to its business strategy. By combining its designing capabilities, hardware expertise, software prowess, and strategic acquisitions , the company has built an ecosystem that a user doesn’t want to leave. 

Vertical integration is another main reason that distinguishes Apple from the competition. It has reaped enormous benefits from the vertical model. It has always built, controlled, and manufactured all of its hardware and software. This inherent benefit assists the corporation in achieving a higher degree of synergy between its hardware and applications. Even the apps are tightly controlled to follow Apple policies. The company also increased its spending on the cost of sales and product R&D to $26,251 billion, which was less than 18% of its total expenditure.

“We have fierce competition at the developer side and the customer side. It’s so competitive, I would describe it as a street fight for market share in the smartphone business.” – Tim Cook, CEO of Apple Inc.

Apple’s business strategy consists of the following four elements:

• Focus on product design and functionality
• Strengthening Apple’s ecosystem
• Improving consumer service experience
• Reducing the business’s reliance on iPhone sales

As for the product and service categories, Apple Inc. includes iPhone, Mac, iPad, Wearables, Home and Accessories, and Services like iMessage, FaceTime, Apple Maps, etc.

This study explores Apple’s business strategy that will help you acquire some basic principles that could be applied to any kind of business, even yours. So, if you’d like the entire analysis in PDF form that you can download and save for later reading (or sharing with your friends), just fill out the form below, and we’ll deliver it right to your inbox.

Now, let’s dive deep into the reasons behind Apple’s success.

Table of Contents

History of Apple

These products and strategies helped apple win before the launch of the iphone..

While the iMac sparked Apple’s rebirth in 1998, the introduction of the iPod in Oct 2001 sent the company to the top of the world’s most valuable companies list. 

“With the iPod, Apple has invented a whole new category of digital music player that lets you put your entire music collection in your pocket and listen to it wherever you go,” said Steve Jobs, Apple’s CEO. “With iPod, listening to music will never be the same again.” We all know digital music players used to exist before the iPod, but as we know, Apple’s marketing is phenomenal at positioning its products.

The iPod was introduced as a part of Apple’s digital hub strategy . The iPod had unparalleled marketing and promotional exposure. Apple introduced a new kind of digital music player with the iPod, allowing users to carry their complete music library in their pocket and listen to it on the move.  

The device’s original edition was released with 5GB and 10GB capacities , beginning at just under £300. The iPod was a spectacular success, increasing Apple’s overall revenue from $1.9 billion in Q1 of 2000 to $3.2 billion in the same quarter of 2001. 

After dropping the price of the 5GB iPod to $299 in July 2002 and expanding compatibility to Windows, the iPod became the best-selling digital music player in history until smartphones came along. 

By 2004, it had established a strong market leadership position in the worldwide digital music player sector. Apple spent a lot of money advertising the iPod . The advertising, which featured shadows dancing to the rhythms of their iPods, could be found in print, on television, and on billboards. In a relatively short period, Apple established an iconic image for the iPod that drew both young and old people. The iPod period, which began in 2001, ended in 2014.   

With the introduction of iTunes in 2001, Apple opened up a vast new market sector in digital music, which it has now controlled for more than a decade. Customers worldwide flocked to iTunes because of the incredible value it provided, and music companies and artists benefited as well. Furthermore, Apple safeguarded recording companies by developing copyright protection that was not inconvenient for customers. While the company has dominated this blue ocean for more than a decade, as new online businesses entered the market, the issue for Apple has been to maintain its sights on the expanding mainstream market rather than competitive benchmarking or high-end niche marketing.

As iTunes’ success developed, so did its content offerings – one of the most important aspects of Apple’s digital domination was how it adapted what it learned from selling music to TV shows, movies, and, eventually, applications. The company created and employed a distribution strategy as well as a usage model to continue adding media to the three prongs of its ecosystem.  

Steve Jobs introduced the initial 15-inch MacBook Pro , Apple’s thinnest, quickest, and lightest notebook to date, in 2006. The MacBook was a tremendous hit with buyers, and it was one of the reasons that Mac sales were rising three times faster than PC sales.

The Apple TV , which debuted in March 2007, was praised for its attractive interface, painless setup, and overall ease of use – all of which marked a significant shift from prior network-based home entertainment systems. Almost a year later, the hardware remained the same, but a free software upgrade essentially gave the device a makeover. Apple subsequently reduced the price of the 40GB model to $229, while the 160GB model was reduced to $329. 

Apple’s award-winning computers, OS X operating system, and iLife, and professional apps continued to set the industry standard for innovation. It was also at the forefront of the digital media revolution with its iPod portable music and video players and iTunes online store, as well as its innovative iPhone entry into the mobile phone industry. 

In 2007, Apple entered the mobile market with the iPhone , which was widely praised for its unique design, touch-screen capabilities, and lack of a conventional keyboard.  

Apple Market Cap as of June 2023 – source

Apple’s Product Strategies After the Launch of the iPhone

After the launch of the first-generation iPhone, the company’s product strategy was very clear, i.e., ‘ Design a high-end smartphone in which the user experience is more important than making a slew of features available.’  

The iPhone was not the first smartphone to have a mobile Web, email, and touch-screen user interface, but it was intended to have a better experience than most smartphones. Another strategy was to have superior technology, which included the mobile operating system and the thousands of mobile applications available via the App Store. 

Before the launch of the iPhone, the annual revenue of Apple — in the year 2006 — was $19.3 billion, which increased to $24.4 billion in 2007 and $37.4 billion in 2008. And since 2008, iPhones have been Apple’s main source of revenue.

The launch became one of the most anticipated technological product launches in Apple’s history, owing to the company’s masterful media build-up. After the launch of the iPhone on January 9, 2007, the share price of Apple’s stock boosted and doubled to a value of $179.40 on January 9, 2008. The iPhone was described as a mix between its iconic iPod music player and a mobile phone programmed to browse the Internet.

Apple Inc. used the strong reputation of the Apple brand and the success of the iPod to penetrate the competitive cell phone market, a move that may have posed a possible challenge to the company as other firms launched smartphones with strong music storage and playback capabilities.

During the iPhone’s two-year growth phase, Jobs launched a campaign to secure a wireless company as the iPhone’s exclusive carrier. Customers who purchased an iPhone were forced to sign a two-year wireless deal with AT&T Inc. to make calls or access the phone’s other capabilities. Apple had even struck agreements with Viacom, Disney, Google, and Yahoo, all of which were carefully chosen to add internet applications to the iPhone.

Apple chose a promotion and delivery policy in European countries that were similar to its strategy in the United States. In France, it offered France Telecom’s smartphone affiliate, Orange, to be the sole carrier. Even in the United Kingdom, Telefonica’s telecom division, O2, was chosen as the sole cellular provider for iPhone customers with a two-year contract.

Apple developed a clear overall marketing strategy for the iPhone and successfully managed every aspect of the iPhone’s launch. Despite some shortcomings and pitfalls, the company was able to create a one-of-a-kind package for tech-savvy buyers interested in a hybrid mobile phone-music player and make those customers aware of the device through well-managed marketing campaigns and positive advertising. Both of these efforts significantly increased Apple’s stock price and solidified its status as a pioneer in consumer electronic gadgetry.

After the launch of the iPhone, the company adopted the strategy of patenting everything it does. The vigorous patenting helped shield Apple from competitors working on related technologies. It also provided Apple with a legal arm for the future. 

One of Apple’s attorneys explained, “We basically tried to patent everything … And we tried to patent it as many different ways as we could, even the stuff we weren’t 100% sure would go in a product.”  

Apple, too, has been chasing and implementing its design patents, endangering the whole technology industry. It has adopted a policy of patenting any tiny recognizable bit of its merchandise, including design patents, which protect a product’s ornamental appearance rather than its usable components. 

Presently, out of the total revenue of Apple Inc., the maximum revenue is generated from the sales of the iPhone. The iPhone sales continue to be the most significant contributor to their total revenue, routinely averaging over 50%! We’ll discuss their annual revenue breakdown further down in this article.

Now that we have covered the strategic aspects, let’s examine the company’s financial information, growth and revenue numbers for the last few years, and projected growth going forward.  

What does Apple’s Financial Growth look like?

Growth projection and market-related factors.

Under a realistic growth profile, Apple’s revenue is expected to grow by 9.66% over 10 years. Capital expenditures are estimated to be valued at $11 billion from 2024 to 2026 and $9 billion from 2027 to 2031. Also, over the 10-year forecast period, Apple’s earnings per share (EPS) are expected to increase by 10.68% . 

Apple’s growth would continue over the next 10 years, and while substantial risks do exist, early warnings and evaluations may efficiently monitor them. 

The following are some of the market-related factors that influence Apple’s growth projections:

• Due to increased demand, the Mac and iPad will flourish in the coming decade.
• High customer satisfaction scores with Apple’s products, 82/100 (2020 survey by MBLM).
• The App Store gives several benefits to users, such as privacy, curated quality applications, protection from malware and malicious scams, etc.
• Home and Accessories, Wearables, and Services provide opportunities for several decades.
• The future launch of new products, namely the Apple Car, AR/VR headset, and AR smart glasses.
• Increased anticipation for future iPhone models.

Revenue of the Last 5 Years (in $ Billion)

Apple’s annual revenue in fiscal year 2022 was $394.32 Billion, an 8% growth over the previous year. It’s less impressive than the 33% jump from 2020 to 2021, but it’s a positive trend nonetheless. Here’s the breakdown of Apple’s revenue in the last five years across its most notable business lines.

Apple’s iPhone sales revenue grew by 7% from 2021 and approximately 40% compared to 2020. Mac and services, like Apple Music and Apple TV, saw higher growth in 2021-2022, up nearly 14% year-over-year. 

Between September 2021 and 2022, iPhone sales accounted for 52% of the company’s total revenue! The 3-year revenue breakdown below provides more details .

Revenue Breakdown (Section-Wise) of the Last 3 Years

The last three annual reports of Apple suggest that the iPhone category had the highest revenue amongst all the categories of Apple. The breakdown of revenue for the last 3 years is listed below:  

• Apple currently has 2 billion active devices globally.
• Apple’s net expenditures in 2022 were $295.5 billion, leaving them a hefty $99.8 billion profit.
• The company’s new iPhone models released during the fourth quarter of 2021 were a massive success.
• Mac sales netted approximately $5 billion more than fiscal year 2021. Their new Mac Studio with the Apple M1 Max chip may have attracted people looking for powerful desk workstation upgrades.
• iPad Pro sales decreased from 2021 to 2022, leading to a relatively small reduction in revenue. This is likely because no other iPad lineup was noticeably refreshed during this period with notable features, except for integrating the M1 chip. In addition, Apple had said during this period that it had faced supply issues with the ‌iPad‌, which may have impacted sales.

The corporation has been vigorously investing in research and development to ensure an increased revenue stream. Let’s now look at Apple’s R&D strategy and the tech areas in which the company is increasingly investing.  

What does Apple’s R&D investment strategy look like?

The tech giant has vigorously invested in research and development to ensure an increased revenue stream. We observed that Apple continuously increases its R&D budget each year, with 2022 closing in at $26.2 billion, increasing by about $4 billion from 2021.

How much has Apple invested in R&D in the Past 3 Years (in $ Billion)?

• In 2020, several patents revealed that Apple focuses on wearables, fitness, and health innovations. Various wearable patents indicated that the company could target AirPods with biometric sensors, Apple Watch with UV tracking, motion recognition for AR/VR applications, machine learning experiments to allow autonomous driving, and incorporation of various existing devices with a vehicle.
• In 2021, they launched several noteworthy products. Perhaps the most disruptive of them was AirTag. These item trackers have quickly become so popular that Apple sold 20 million units within eight months of launch! Now, analysts claim Apple is projected to sell 55 million AirTags by the end of this year.
• In 2022, they introduced the Apple Watch Ultra to their product line. It’s their flagship wearable device with several top-tier features like a titanium build, two times brighter display, and a dual-frequency GPS system, among other things. Driven by this model, the Apple Watch accounted for 34.1% of total smartwatch shipments in 2022 and 60% of the revenue for the global market.

Which Tech Areas is Apple focusing its R&D on?

Apple Inc. had invested in further expanding  its research and development centers globally. The company had invested over half a billion dollars in research development centers in China alone. The company also concentrated on R&D centers in the United Kingdom, owing to their increasing emphasis on creating unique innovations to underpin its product designs, including A-series processors, W-series wireless chips, unique manufacturing, materials experience, speech recognition, machine intelligence, and many more.

These are the key areas where the company focuses its innovation efforts the most.  

Apple invests heavily in developing new hardware for its products. Their most recent and notable advancement has been with their M-series processors for computers to supplement their excellent A-series mobile chips. These have smashed benchmarks worldwide, delivering chart-topping performance and power efficiencies never seen before. They make some of the best pro-grade displays , too.

Apple’s software development efforts include creating new operating systems for their products, new applications, and services. All their software products are designed and optimized for their ecosystem, allowing seamless inter-device connectivity. This interconnected approach to innovation can be seen throughout their designs, like on this expansive 358-page patent they filed for the first iPhone’s multi-touch capability .

Artificial Intelligence

Apple also invests in artificial intelligence and machine learning to improve its products and services. They’ve made numerous acquisitions to enhance their in-house AI capabilities, which we will discuss further in this article. Their advanced machine learning algorithms enable many features, ranging from FaceID’s fundamental security to fun AR Animojis on Facetime calls.

Healthcare Technology

Apple has been expanding its focus on healthcare , developing health-related features for its devices, such as the Apple Watch. Alongside regular customers, Apple wishes to be the go-to choice among doctors and healthcare professionals as well. They’ve partnered with healthcare providers like Geisinger and Ochsner to provide a seamless way for doctors and patients to connect. Their CEO, Tim Cook, has often made it clear that healthcare is one of Apple’s top priorities as a business sector.

Augmented/Virtual Reality

Spatial computing is one of Apple’s lesser-known yet rapidly developing departments. Our research suggests that Apple has been working on an AR and VR-capable wearable device for nearly 16 years!

“The products that are in R&D, there is quite a bit of investment in there for products and services that are not currently shipping or derivations of what is currently shipping…You can look at the growth rate and conclude that there’s a lot of stuff that we’re doing beyond the current products.”   – Tim Cook, CEO of Apple Inc.

Which Core Innovation Areas Is Apple Majorly Focusing on?

For the tenth year in a row, Forbes magazine ranked the company as the most valuable brand in the world in 2020. Apple took second place in 2023, around $2 billion shy of Amazon in brand value. Nonetheless, Apple has risen to become the world’s largest company by market capitalization, not by attempting to become the largest smartphone provider but by becoming the most beloved. Apple, more than any other tech company, has always prioritized the end-user experience over anything else, not just the speed, storage capacity, or other technical specifications of its products.

Apple’s innovations are often incremental, with the company adapting its design expertise to the most recent consumer tech trends . Apple did not invent the MP3 player or the smartphone, but it went on to dominate both devices by emphasizing design, user experience, and brand cachet. The company has aggressively increased the domains where the Apple experience is part of daily life during the last ten years. 

Apple guarantees that the universe of Apple-mediated behaviors continues to grow by encouraging app developers while strictly enforcing rules. By reinventing product form factor and function, from computing in a user’s pocket to managing home electronics to reminding the calorie count or parking spot — all of these experiences are connected, integrated, and packaged in a single accessible ecosystem of complimentary items. 

Moreover, Apple has focused on innovation outside the core by developing the infrastructure required to support this ecosystem safely and frictionlessly (Apple Pay secure payments or biometric facial recognition since the iPhone X). 

We have mentioned before that Apple vigorously patented everything it did. After looking at the wide array of domains on which Apple works, it becomes important to examine the kind of patent portfolio Apple has accumulated over the years. 

What does Apple Patent Portfolio look like?

A company’s patent portfolio provides us with another set of lenses to find the core areas it has been focusing on for quite some time and what it plans to launch next. Let’s take a deep dive. 

Source: Insights;Gate by GreyB

With 72000+ patents (24000+ patent families) in its entire portfolio, Apple is one of the top patent filing companies in the world. It has more than 55000 patents that are still active. 

Looking at the filing trend, you can see the year 2007 saw a sharp increase. It was the same year they launched the iPhone. One can conclude that the iPhone is one of the reasons Apple invested heavily in securing its technologies. 

The Apple vs Samsung lawsuit is still one of the largest patent infringement lawsuits that happened in the tech industry. And that further pushed the consumer electronic gadgetry pioneer to invest more in patents. (See the growth in 2012)

One of the reasons for this growth is Apple’s consideration to secure its tech in more countries. As Apple is gaining more and more global markets, it is securing its patents in more and more jurisdictions. 

The US is the home market for Apple, so, naturally, the company has the most patents in the US. China is a crucial market for smartphone makers now more than ever. China has become more patent aware thus most of the big companies are trying to secure more and more technologies/patents in the country. Apple being one of the biggest technology companies, it makes sense that it has secured thousands of patents in China. 

The huge portfolio of Apple is categorized into 16 different technologies that the company uses for its products/services or future products. 

As a smartphone manufacturer, Apple researches heavily in the Telecom sector, which is also crucial for companies, especially when 5G is on the doorstep. 

Another interesting figure is of Apple’s design patents. The company focuses greatly on the design part, and the patent count is proof of how valuable product designs are for Apple. 

Apple has stopped working on its Autonomous Vehicle , but in the AR/VR space, we had a long-awaited announcement in June 2023—their Vision Pro headset. We’ll discuss this in more detail in the upcoming sections.

Further, Apple also has researched AI-assistant, which you can learn about here .

Moving forward, let’s go through Apple’s expertise in various sections.

What are the products and services responsible for Apple’s growth?

Design and functionality.

Apple’s competitive advantages include software control, hardware control, retail strategy, product differentiation, and, most importantly, Steve Jobs’ strategic decision-making. Since its foundation, the company has introduced simple-to-use computers to the market so that people would not face any issues while using Apple goods. Apple used both horizontal and vertical integration. It depended on its designs and refused to let third-party access to its hardware. Apple employed superior software, which aided it in increasing its market share. The company also provided a comprehensive desktop solution with hardware, software, and other components. Apple has always used typical designs for its products. 

Apple has over 4,000 design patents in its portfolio, which is a big number.

Consumer Electronics

Apple Inc., a computing and consumer electronics giant, is one of the world’s most recognizable and famous brands, with hundreds of its retail shops. A globally leading consumer electronics developer with key products including the iPhone, which runs Apple’s IOS operating system, personal computers (Macs), and tablet computers (iPads), all of which utilize Apple’s exclusive operating systems. Other notable products include the Apple Watch, AirPod, Homepod smart speakers, Apple TV streaming device, Beats headphones, and iPod Touch music player.

The company’s product strategy results in extremely high-quality products. It’s known as the “great product” strategy. 

Apple refuses to join the bandwagon other gadget makers employ by maintaining high-quality standards. The “great product” strategy emphasizes quality over quantity as well. 

While other manufacturers’ strategies include releasing items one after the other quickly and having such a diverse product mix, Apple opted to stick to what it does well.  

Smartphones (iPhones)

Since 2008, the iPhone has been Apple’s most valuable product and its primary source of income. Although Apple has expanded its product range with the Watch, AirPods, and services, the iPhone still accounts for 50% of its income. The company’s extensive relations with China, particularly in the manufacturing sector, are one of the key bear arguments. 

Most of Apple’s products are manufactured in China. While Apple has been expanding production into other countries, recent estimates suggest that 95% of the total iPhone supply still comes from China. Apple also has manufacturing facilities and assembly lines in other countries, such as the United States, Ireland, and Brazil.

Three of the company’s aforementioned contract partners, all of whom are situated in Taiwan, made relocation news in the summer of 2020:

• Foxconn began producing the iPhone 11 in India in July 2020 and had invested $1 billion in the nation.
• Pegatron established a subsidiary in India. 

The demographic of iPhone users changes a little each year. Here are some of the latest statistics on iPhone users:

• 51% of iPhone users are female, while males make up the remaining 49%
• The  16 – 34 age group has the highest number of iPhone users
• 35% of iPhone owners also have an Apple Watch
• The  average income  of iPhone users in the US is  85,000 USD

Its main competitors in the worldwide smartphone industry are Samsung and Huawei, with the business following the other two with a share of 13.5 % in the most recent quarter. 

In the second quarter of 2023, Apple’s global market share for the iPhone was 17%, while Samsung’s, Xiaomi’s, and Oppo’s market shares were 20%, 12%, and 10%, respectively. The company sold 845.3 million smartphones in the second quarter of 2023, while Samsung sold 53.5 million handsets. Xiaomi and Oppo, respectively, sold 33.2 million and 28 million units.

Apple’s iPhone is the market leader due to excellent hardware and software integration and control over both sides of the equation. Any Android app will lag in terms of speed and performance when compared to an iPhone app.

In 2021, Apple spent an additional $45 million on Corning, which manufactures the glass used in the iPhone, Apple Watch, and iPad. In May 2021, the company announced a $410 million grant to II-VI, which develops the technology for the iPhone’s Face ID and Portrait mode. 

With over 1 billion iPhones in use, Apple is the doorway to the most valuable clients in the mobile industry. In 2021, Apple has updated its iPhone software and allows consumers to choose whether they want to be followed for targeted adverts. 

Even though both iOS and Android have millions of apps in their app stores, developers still prefer the iPhone as the launch platform of choice for the latest new apps. Mario Run, for example, was released for iOS in December 2016 and Android in March 2017. Instagram for Android was released two years later for the iPhone.

The iPhone 15 lineup in 2023 builds upon the foundations set by the 14 series with additional features like USB-C replacing the lightning port, the dynamic island-inspired design on the 15 and 15 Plus, and the newer A17 Pro chip on the “Pro” models. Apple says the A17 Pro is the industry’s first chip to feature a 3-nanometer fabrication process.

And thankfully, the rumors about the USB ports being locked behind the MFi authentication layer were false. 

Smart Speakers (HomePod)

HomePod has experienced limited success in the Smart Speakers market. Apple trailed Amazon and Google in terms of unit sales . However , the release of the HomePod Mini has made significant advances, enabling Apple to double its share in the smart speaker market in 2021. According to survey results from Statista Consumer Insights, Amazon remains the clear market leader in the smart speaker segment in the United States. Apple took third place among the global smart speaker sellers as of Q1 2022.

Apple’s HomePod is the best-sounding wireless smart speaker today, and it can be operated by speech using the in-house virtual assistant, Siri. However, the HomePod is only worth considering if the owner possesses an iPhone and subscribes to Apple Music. In March 2021, Apple announced the discontinuation of the original Homepod after 4 years and indicated its focus on the mini Homepod it released last year.

Laptop & PC (MacBook and Mac)

Despite Apple’s shift in priority from PC to mobile, the Mac has remained a key component of the company’s product lineup. The company has maintained a core group of devices throughout the decade: the MacBook Air, MacBook Pro, Mac Pro, and iMac. Even after modifications and new models, its core has remained popular among many professional clients. 

In 2022, Apple had a 9.8% market share, following market leaders Lenovo, which had a 24.1% market share, HP Inc., which had a 19.4% market share, and Dell, which had a 17.5% market share.

When a customer purchases a Mac, that purchase is a philosophy as much as it is a piece of computer technology. The hardware and software are produced by the same corporation, and the laptops share an aesthetic sensibility with Apple phones and tablets. 

Macs are popular among music producers due to Apple’s high-end Logic Pro software and the user-friendly GarageBand program, both of which are free. Apple acquired Emagic, a music production software, on July 1, 2002, for $30 million as the foundation for these two apps.

In addition, other Apple-exclusive media software like Final Cut Pro and Pixelmator could convince photo and video editors to switch to Mac OS.

Apple Watch

Since its debut in 2015, Apple Watch has dominated the smartwatch industry, with a market share of 40% in Q4 2020 . 

According to Counterpoint Research, Apple Watch shipments increased by 19% between 2019 and 2020, reaching 33.9 million units in 2020. In Q4 2020, Apple Watch Series 6 and SE delivered 12.9 million devices. Further, markets such as India saw strong demand for Apple Watch Series 3 and 6 in 2020, with a growth of 144.3% in overall Apple wearable devices shipments. 

Apple dominated the market in 2022 with a 30% share, followed by Samsung at 10.1% and Huawei at 6.9%, among others.

The same trends are also reflected in  Q1 of 2023  when Apple is leading the market with a 26% share, and Samsung has a 9% share.

The Apple Watch is the greatest smartwatch on any platform in terms of appearance, message handling, activity tracking, app choices, and battery life. It is also water resistant to 50 meters, making it ideal for swimming and surfing. The Sleep app monitors the user’s sleeping habits and assists in creating a plan and bedtime routine to accomplish sleep goals. Apple is, in fact, making strides in the Healthcare sector with its Apple Watch.

Read Now: Apple in Healthcare: Top MedTech Acquisitions and How Can You Gain an Edge over it?

AirPod and AirPod Max

Apple’s AirPods have grown into a significant business for the company, with 114 million sold by 2020. A commodity that many saw as an expensive accessory has become common, with nearly every phone maker selling their own ‘hearable’ to compete with Apple. Apple was ahead of the pack in Q2 of 2022, holding 27.8% of the total market share. Samsung and Xiaomi followed up with 9.3% and 5.3% respectively.

Further, Apple released AirPod Max, Bluetooth over-ear headphones, in Dec 2020 with a price tag of $549. While Analysts estimated that AirPod Max won’t boost Apple sales because of a niche market, some expect that it could boost AirPod sales because of Apple’s Goldilocks strategy.

Cybart forecasts that Apple’s wearables segment, including the Watch, AirPods, and select Beats headphones, will generate $30 billion in revenue by 2021.

The five reasons why Apple built a strong wearables business are mentioned below:

• Early adopter: One of Apple’s guiding principles is to make technology more personal, and it began investing in wearables, including its silicon processors, in the early 2010s.
• Other corporations gambled on voice: Because few Large Tech businesses had Apple’s hardware competence, they bet big on voice (example: Amazon’s Echo) as the future computing paradigm. It appeared to be a bad gamble.
• Design expertise: People must desire to wear wearables, which requires design skills. Apple has a track record (and aptitude) for designing devices that consumers want to show off as much for its aesthetic as it does for its computational capabilities.
• Advantage of the supply chain: Wearable technology is built on top of smartphone components. Apple has capitalized on lessons learned and partnerships formed during the iPhone production process.
• Advantage of the ecosystem: Apple’s entry-level AirPods and Watch were around $200. Because the wearables effectively share computational power with the iPhone, it achieved these pricing thresholds.

According to Cybart, Apple’s wearables segment will likely reach $50 billion in the following year if present trends continue. 

Apple Silicon (Chipsets, Processors)

Apple announced that it would switch from Intel chipsets to its own Apple Silicon processors based on ARM in 2020. In keeping with this, the business released a new M1 processor and three products powered by it—the MacBook Air, MacBook Pro, and Mac Mini. A survey from market analysis firm TrendForce suggested that M1-powered Mac machines represented around 0.8% of overall laptop sales in 2020, months after the products became available for purchase. 

In terms of operating systems, Windows was the global leader in the laptop industry. However, due to the strong expansion of Chromebooks in 2020, Windows’ market share would fall below 80% for the first time in history. Windows is unlikely to regain lost market share immediately since its fall is predicted to continue. TrendForce predicts that the market shares of Windows, Chrome OS, and macOS will each settle at around 70-75%, 20-15%, and less than 10%, respectively. 

In 2020, Apple is anticipated to launch the first MacBook to utilize its silicon processor rather than Intel’s, allowing all its key product lines to run on the same architecture.

When considering Apple’s most notable purchases, two stand out:

• In 1997, NeXT Software was purchased for $404 million. The acquisition of Steve Jobs’ post-Apple venture, which featured the forerunner to iOS, returned Jobs to the firm he created.
• Beats for $3 billion in 2014: Apple’s largest acquisition was Dr. Dre and Jimmy Iovine’s headphone firm, which laid the framework for Apple Music.
• However, a third (and extremely significant) transaction set Apple’s mobile product roadmap: the $278 million acquisition of P.A. Semi in 2008.

According to tech analyst Ben Thompson, P.A., Semi gained the expertise and intellectual property (IP) “that would underpin (Apple’s) A-series of processors, which have powered every iPad and iPhone since 2010.” 

Apple introduced the Apple TV in March 2007. Much to everyone’s surprise, it was not an actual TV set but rather a box to offer services using the software. It was praised for its attractive interface, painless setup, and overall ease of use—all of which marked a significant shift from prior network-based home entertainment systems. 

The hardware remained the same almost a year later, but a free software upgrade essentially gave the device a makeover. Apple subsequently reduced the price of the 40GB model to $229, while the 160GB model was reduced to $329.

People still wonder why Apple never made an actual TV like Samsung or Sony. Even with enough expertise, there are multiple reasons why Apple didn’t enter the TV manufacturing business.

First, this industry’s margin is very thin, and Apple always focuses on making profits. Second, unlike smartphones or other consumer electronics, there isn’t much design to make it unique. You can find many identical TV designs from different companies. Third, Apple can provide a good user experience through its software, so it went for a box to provide better UX in any TV. 

Source: Apple

The box design remained the same throughout the years, but they made multiple changes to its remote. 

The iPod was one of Apple’s most successful products. It was a small device that let users listen to music on the go. However, it is now 2021, and despite having Apple Music on iPhones and even being accessible on Android and even smart TVs, Apple continues to offer the iPod Touch . One of the main reasons is that it is not an iPhone and is suitable for children. 

Further, iPod Touch uses iOS with the same inbuilt software. It’s basically an iPhone without cellular network connectivity. The user can play games, surf the internet using Wi-Fi, and can send messages using a web browser. 

Apple’s tactic is to prime iPod users to become iPhone users when they buy a smartphone. After using the iPod for two or three years, most users would want to choose an iPhone over other smartphone brands.

The iPod is part of the Apple ecosystem, which helps users stay in it even when they want to upgrade a device. 

AirTag, a compact and elegantly designed device that helps keep track of and find the stuff that matters most with Apple’s Find My app, was announced in April 2021 . AirTag, whether connected to a handbag, keys, backpack, or other objects, connects to the enormous, worldwide Find My network and can assist in recovering a misplaced item, keeping location data private and anonymous using end-to-end encryption. 

“We’re excited to bring this incredible new capability to iPhone users with the introduction of AirTag, leveraging the vast Find My network, to help them keep track of and find the important items in their lives.” – Kaiann Drance, Vice President of Worldwide iPhone Product Marketing of Apple

Dongles link headphones to charging connections, computers to TVs or card readers, etc. Dongles are a major business nowadays since it’s difficult to conduct many routine computer chores without them. This is owing, in large part, to Apple, which, in 2016, eliminated the headphone jack from the iPhone range and shifted nearly completely to USB-C connectors on its Macs. The newest iPhone isn’t the only Apple gadget that requires an array of dongles to function properly. 

A dongle is necessary to connect a MacBook Air to an Ethernet wire. A dongle is also required if the user wants to add a second screen to the computer or import images from an SD card. A USB to USB-C adaptor is required even if users put a flash drive directly into the MacBook. 

This causes users to accept the dongle as an integral part of their lives, allowing Apple to establish a sizable market for dongles. Apple, Belkin, and other accessory firms have established a massive market for these dongles, which Facts and Factors estimates will be worth more than $25 billion by 2027.

It is unknown how much Apple’s revenue is from Dongles, but considering the user base’s preferences and Apple’s dongle prices, it could be more than a billion dollars. 

Now, let’s move on to the core of all these products- Software.

For over four decades, Apple has been a Silicon Valley trendsetter. Apple’s competitors have widely imitated the Apple II, Macintosh, iPod, iPhone, and iPad. Apple’s success may be attributed in large part to the company’s obsessive attention to the user experience. The iPod first debuted in 2001, followed by the iPhone in 2007, and the iPad in 2010. Consequently, Apple earned about $40 billion in earnings in its fiscal year 2014. Apple is a design-focused corporation that prefers to create all aspects of a product — hardware, software, and internet services — in-house. 

Apple II computers were sold until 1993 when they were phased out in favor of Macintosh computers. Around 5 million Apple II computers were sold in total. The first Macintosh had significant limits. However, later versions were more powerful. In 1987, Apple introduced color to the Macintosh with the Macintosh II. The groundbreaking graphical interface of the Mac immediately drew several imitators. Apple debuted the iPod music player in 2001. More crucially, the iPod was compatible with iTunes, Apple’s jukebox software for the Mac, making it simple for users to transfer music from CDs to their iPods. Apple, too, capitalized on the iPhone’s popularity in 2010 by releasing the iPad, a tablet computer built on the same software. 

Operating Systems

Both Mac OS X and iOS originated from Darwin, an older Apple operating system based on BSD UNIX. iOS is a proprietary mobile operating system owned by Apple that can only be loaded on Apple devices. 

Apple’s iOS is a closed ecosystem, which implies that Apple creates both the operating system and the hardware, and no other corporation utilizes either of them to integrate with their services. It gives Apple an advantage over Android regarding hardware and software synchronization. In the case of Android, however, the hardware is manufactured by companies like Qualcomm and MediaTek (rather than Google), and the manufacturers create their own flavor that runs on top of Android. In addition, Apple allows users to offer 3D touch inputs with mini menu selections. The iOS devices are set up to detect pressure sensitivity on the screen and allow various input choices based on it. 

As of July 2023, Android occupies 70.9% of the mobile OS market, followed by Apple’s iOS at 28.36%.

The Mac OS was released in 1984 to power Apple’s Macintosh series of personal computers (PCs). The Macintosh heralded the age of graphical user interface (GUI) systems, inspiring Microsoft Corporation to create its own GUI, the Windows operating system.  

The interface is the most noticeable difference between the Windows and Mac operating systems. MacOS is perceived to be more basic, streamlined, and elegant, but Windows is considered to be more sophisticated and feature-rich, with more customization choices. 

The design styles for Mac and PC are vastly different. Whereas macOS has smooth edges and a consistent application across all apps, Windows has jagged edges and a UI that frequently changes across programs. As Apple has complete control over hardware and software, new security enhancements can be implemented on macOS. Similarly, Apple has a simple and comprehensive AppleCare service in place to assist consumers with any hardware issues. Newer Apple products have Touch ID functionality by default for system access, further protecting devices from fraudulent logins. 

Microsoft Windows had a  77.74% market share  for desktop operating systems (OS) as of July 2020. Apple’s macOS has grown in popularity over the years but is still a minor player in the desktop OS industry. Linux, the third most popular OS , has a tiny but constant market share. As of May 2021, OS X had a market share of 15.87% , while Windows had a market share of 73.54%, and Linux had a market share of 2.38%.

The WatchOS app experience differs from app experiences on other platforms in several ways. For example, because the Apple Watch is meant to be worn, the UI is tailored to wearers and provides a lightweight, responsive, and highly personalized experience. People commonly utilize the related experiences of a WatchOS app such as Apple complications, notifications, and Siri interactions — more than they use the app itself. 

The latest WatchOS 9 update reflects Apple’s goals in healthcare and personalization. Users can now see more information about their workouts on the screen. Turning the Digital Crown reveals metrics like Activity rings, Heart Rate Zones, Power, and Elevation. 

In healthcare, Apple has been at work for years, acquiring medtech startups and using its patented technology to strengthen its WatchOS ecosystem. For instance, most of the sleep-tracking technology on Apple Watch likely came from startups like Beddit, which Apple acquired in 2017. Through the acquisition, Apple also got rights to Beddit’s patents on crucial health features, such as a system for determining sleep quality and applying a pressure sensor .

Read More Here: Apple in Healthcare: top MedTech acquisitions and how can you gain an edge over it?

Apple devices are well-known for linking users to content. This sense of connection is anticipated from Apple TV, although it is not a product that the user can physically grasp or touch. Apple TV is a one-of-a-kind platform with unique specifications . TvOS apps can provide incredible experiences with great visual quality thanks to 4K resolution, Dolby Vision, and HDR10, as well as immersive sound thanks to Dolby Atmos. Furthermore, the Siri Remote provides access to three-axis gyro data, allowing users to build even more immersive gaming and interactive experiences.  

Tizen is the largest TV streaming platform globally among smart TVs in use, with a market share of around 13% as of the end of 2020, followed by LG’s WebOS with 6.4% market shares, Sony PlayStation, Roku TV OS, and Amazon’s Fire OS tied for third place. Apple TvOS had a market share of 2.7% as of 2020. 

Smart TV Streaming Device Market Share Worldwide As Of 2020 (%)

Apple’s machine learning teams are conducting cutting-edge research in machine learning and artificial intelligence . The team employs machine learning to educate their devices to comprehend the environment in the same way that humans do. Apple did a research study to investigate the feasibility of inferring accessibility for mobile apps from their display pixels.

Using a dataset of manually collected and annotated iPhone app screens, they trained a robust, quick, memory-efficient on-device model to recognize UI components. Due to this research, Apple launched the Screen Recognition function, which combines machine learning and computer vision to recognize and present material readable by VoiceOver for apps that would otherwise be inaccessible. 

Even in May 2021, Apple Inc. hired Samy Bengio , a former prominent Google AI scientist. The hiring will lead to the establishment of a new AI research team within Apple, led by John Giannandrea. Bengio pioneered the “deep learning” methods that underpin today’s AI systems for processing photos, audio, and other data types. 

Machine learning and artificial intelligence are now present in almost every aspect of the iPhone.

“I think that Apple has always stood for that intersection of creativity and technology. And I think that when you’re thinking about building smart experiences, having vertical integration, all the way down from the applications, to the frameworks, to the silicon, is really essential… I think it’s a journey, and I think that this is the future of the computing devices that we have, is that they are smart, and that, that smart sort of disappears.”  – John Giannandrea, Senior Vice President for Machine Learning and AI Strategy at Apple

Apple has made a practice of crediting machine learning with boosting specific functions in the iPhone, Apple Watch, or iPad, but it seldom goes into much detail. 

Apple has taken a more subtle and astute approach to AI. In its June 2020 announcements for iOS, iPadOS, and macOS, Apple hinted at various AI and ML-powered improvements and enhancements.

• The Apple Watch utilizes machine learning to identify motions and detect sleep. Users only need to wear the Apple Watch to bed, and it will track their sleep.
• The new handwashing functionality on the Apple Watch, which utilizes AI to detect when one is scrubbing the mitts and starts a countdown, is one of the greatest examples of Apple’s approach.
• One of the features in iOS that allow the iPhone to listen for things like doorbells, sirens, dogs barking, or babies crying is sound alerts. AI excels at picture recognition tasks, and recognizing both Chinese and English characters is an accurate model. 
• Apple HomeKit, a smart home solution, allows customers to use their smartphones to control and interact with connected gadgets. Users can utilize the HomeKit framework to provide a means for users to configure accessories and define actions to control them. Users may even bundle actions together and use Siri to initiate them.
• In iOS 14, Apple included a translation app. The app’s purpose is to provide translations from one language to another. Because of the inbuilt on-device machine learning, the Translate app works offline. The program includes various beneficial features while learning a new language and seeking to communicate with someone who speaks an anonymous language.
• Handwriting recognition is a difficult challenge for AI because the more natural a task is for humans, the more difficult it is for AI. In the most recent iPadOS update, when users draw anything with the Apple Pencil, the iPad can recognize their handwriting and, using Scribble, transform it into written text. It works in the same way that most machine learning does.

Artificial intelligence and its subset, machine learning, are being employed to improve the user experience in various Apple gadgets.

Comparison with Google, Amazon, Microsoft

Google paid $400 million for a DeepMind startup in 2014. This company provides various AI-powered solutions, ranging from picture and speech recognition to human simulation in video games. Google employs AI in various mundane tasks, including Gmail reply suggestions and sophisticated search algorithms. In addition, the business just released TensorFlow, a machine learning technology that is open to use by any developer. 

Google also has Google Assistant, which assists users in doing daily chores more effectively and timely. It is supported by a wide range of devices (Sonos speakers, Samsung smart TVs, and Philips Hue) and is one of the most extensively used AI solutions today. Duplex is an AI-powered voice that assists users in scheduling business appointments using Google Assistant. The most recent PAIR initiative from Google in AI is worth mentioning. PAIR is an acronym that stands for People + AI Research and attempts to make working with AI as pleasurable and helpful as possible.

When consumers think about Amazon in AI, the first thing that comes to mind is Alexa. This is another virtual assistant that can set alarms, send alerts, and communicate by speech and is supported by Amazon Echo Dot speakers. 

Amazon has lately launched the Alexa Shopping functionality. Customers may now use Alexa to place orders on Amazon. The assistant may add things to the basket, delete them, track their progress, and alert customers when they are delivered. Voice shopping reached $40 million by 2020; Amazon made a very smart move.

Microsoft Research AI is a Microsoft-founded organization dedicated to AI research and development. Since the corporation currently uses AI in its processes (Skype chatbots, data analysis, interaction with Cortana, and so on), it’s no surprise that it intends to increase its usage. 

In addition, Microsoft has been releasing AI-powered products through its Azure cloud computing service and working on AI integration into Office 365. By 2018, Microsoft had bought five artificial intelligence (AI) technology firms. Its most recent purchase was XOXCO, a software product design and development firm.

Apple has Siri, one of the world’s most popular virtual assistants. Siri was initially developed as an app and released on the Apple app store by Nuance Communications, Inc. in February 2010. Apple acquired it two months later, on April 27, 2010, for approximately $200 million. Siri was then introduced with the launch of iPhone 4S on October 4, 2011. 

It offers face recognition, which is entertaining to experiment with and improves security. Furthermore, Apple employs AI to identify fraud and improve battery usage, appearing to be an equal competitor.

Apple does not spend as heavily on AI as Google or Amazon. Second, it takes a fairly local approach, with its CreateML framework only operating on iOS devices, whereas most businesses train their ML models in the cloud. 

Since 2006, Google has invested over $3.9 billion in AI in disclosed transactions. Several organizations have invested money in acquiring AI startups up until 2018. Some of these businesses are Amazon ($871 M), Apple ($786 M), and Microsoft ($690 M). 

Acquisitions Related to AI

According to a report from GlobalData, Apple acquired around 25 artificial intelligence firms between 2016 to 2020. The various acquisitions that Apple made include: 

• Emotient (Jan 2016)

Emotient, a San Diego business developing artificial intelligence technology that scans facial expressions to determine emotions, was bought by Apple. Apple did not specify the details of the acquisition in the report.

• Flyby Media (Jan 2016)

Apple acquired Flyby Media, an augmented reality business that created technology that lets mobile phones “see” the world around them. Apple has been interested in virtual reality for several years. The purchase occurred shortly after Apple announced the hiring of a prominent AR/VR specialist, Doug Bowman. Apple may have been working on technology that will someday find its way to the iPhone, similar to Google’s Project Tango, which delivers computer vision to mobile devices.

• Gliimpse (August 2016)

Gliimpse, a health data firm, was purchased by Apple for around $200 million. Gliimpse allowed users to import their medical information into a single virtual environment. Apple’s incorporation of Gliimpse into its existing products appeared to be more evident, given that the business has been working on health-related software for some years now. It was simple to see how Gliimpse, with its structured data centered on individuals, would be useful in products such as HealthKit, ResearchKit, and CareKit. Thus opening a gateway for Apple in the healthcare sector .

• Turi (August 2016)

Apple purchased Turi, a machine learning and artificial intelligence business, for more than $200 million. The acquisition is part of Apple’s bigger push into artificial intelligence and machine learning. Apple’s ambitions for Turi’s technology are unknown, but the corporation has been expanding its Siri personal assistant and associated technologies to make a larger push into artificial intelligence.

• Tuplejump (September 2016)

Apple bought Tuplejump, a machine learning team based in India and the United States. The acquisition was motivated by Apple’s interest in FiloDB, an open-source project developed by Tuplejump to quickly apply machine learning ideas and analytics to enormous volumes of complicated data as it came in.

• RealFace (February 2017)

Apple has spent $2 million acquiring the Israeli company RealFace, a cybersecurity and machine learning business focusing on face recognition technologies. RealFace’s software employs exclusive IP in the realm of “frictionless face recognition,” which enables quick learning from facial traits.

• DeskConnect (March 2017)

DeskConnect, the start-up behind Workflow, was acquired by Apple. Workflow is similar to Automator, an Apple utility tool that comes with macOS Sierra but has no iOS counterpart. DeskConnect’s namesake cross-platform file-transfer tool was discontinued last month. Apple’s AirDrop, Handoff, and Universal Clipboard, among other services, were recommended by the firm.

• Lattice Data (May 2017)

Apple invested $200 million in acquiring Lattice Data, an AI firm. By acquiring Lattice Data, Apple was prepared to expand into machine learning and artificial intelligence. Around 20 engineers also joined Apple.

• SensoMotoric Instruments (June 2017)

SensoMotoric Instruments, a German provider of eye-tracking eyewear and systems, was acquired by Apple. SensoMotoric has created eye-tracking technology for virtual reality headsets such as the Oculus Rift, which monitors the wearer’s gaze and aids in reducing motion sickness, a major side effect of VR. Apple revealed a prototype set of “smart glasses” that would link to an iPhone and show the wearer “pictures and other information.”

• Regaind (September 2017)

Regaind, a French firm, was bought by Apple. Regaind had been working on a machine vision API for analyzing photo content. Apple used this technique to improve the Memories tab in the Photos app. iOS builds albums depending on events, location, and other factors. Using Regaind, iOS may search for aesthetically similar photographs, display the best image as cover art, and generate a recap movie with the finest photographs. Apple has integrated Regaind technology with the new Face ID sensor in the iPhone X, for example, to enhance animoji facial expressions.

• Pop Up Archive (December 2017)

Pop Up Archive, an Oakland-based online platform focused on developing tools to transcribe, organize, and search audio recordings, was bought by Apple. Apple, the long-dominating hands-off curator of the podcast world, has bought a technology aimed at boosting the knowability and sortability of the hundreds of thousands of broadcasts delivered via its Apple Podcast platform.

• Spektral (October 2018)

Apple invested over $30 million in Spektral, a computer vision business in Denmark that has worked on segmentation technology. Spektral’s initial application may have been the rather outdated world of school photos and the most prominent contribution Spektral might make to Apple’s photographic industry.

• Asaii (October 2018)

Apple invested less than $100 million in Asaii, a music analytics start-up focused on discovering new and rising musicians. The acquisition comes as Spotify, Apple Songs’s major competitor, expands its reach beyond conventional popular performers and supports unsigned musicians, who may now submit their music straight to the service.

• Silk Labs (November 2018)

Silk Labs, a firm focused on developing on-device machine learning software, had been acquired by Apple. The purchase perfectly fit Apple’s privacy-focused approach to artificial intelligence. Apple followed a similar approach to AI development, distinguishing itself from competitors such as Google, which collects large volumes of user data and analyses it on the cloud.

• PullString (February 2019)

PullString was acquired by Apple for around $30 million. This acquisition is a big indication of Apple’s plan to make Siri creation easier for iOS developers. The acquisition also provides Apple with extensive domain experience in voice app development, voice app designer and developer requirements, and the complexities of both Amazon Alexa and Google Assistant.

• Laserlike (March 2019)

Laserlike, a machine learning start-up, has been bought by Apple. Laserlike uses machine learning to collect massive amounts of data from the web and then give user-specific findings via an eponymous app. The transaction was made for an unknown purpose, according to Apple. Laserlike’s team may be trying to improve Siri’s long-struggling capacity to retrieve relevant information from the web.

• Lighthouse AI (March 2019)

Apple purchased Lighthouse’s patents for AI-powered home security cameras (eight patents and patent applications). Even the Lighthouse’s Co-Founders, along with about 20 employees, had joined Apple. Apple’s current emphasis on AI-driven home security systems is part of a broader tech industry embrace of so-called smart or connected homes, which include many AI-driven and machine-to-machine gadgets.

• Drive.ai (June 2019)

Apple bought Drive.ai in June 2019. Due to the agreement, hundreds of Drive.ai developers joined the tech giant’s top-secret Project Titan. Apple bought the company’s assets, including its self-driving vehicles.

• Spectral Edge (December 2019)

Apple invested an unknown sum in another UK start-up, Spectral Edge, in an apparent move to strengthen the iPhone camera. Spectral Edge created Phusion, a computer photography approach that employs infrared light that is invisible to the human eye to sharpen and restore color in smartphone images.

• Xnor.ai (January 2020)

Apple acquired Xnor.ai, a Seattle business specializing in low-power, edge-based artificial intelligence solutions, for around $200 million. According to the agreement, Xnor’s AI-enabled picture identification technologies might become standard capabilities in future iPhones and cameras.

• Voysis (April 2020)

Apple Inc. acquired Voysis, an Irish artificial intelligence firm, in April 2020 for an undisclosed amount. Voysis’ technology, which includes a platform that adds vocal interactions to digital shops, might be used to improve the understanding of what consumers say by Apple’s Siri speech assistant.

• Inductiv Inc. (May 2020)

Apple Inc. acquired Inductiv Inc., a machine-learning firm situated in Ontario, Canada. Inductiv created technology that employs artificial intelligence to automate the job of detecting and repairing data problems. This technology will be used by Apple in a variety of products and improve Siri data.

• Subverse Corp.(Scout FM) (September 2020)

Apple Inc. acquired Subverse Corp. (Scout FM), a start-up that makes listening to podcasts more like tuning into radio stations, to strengthen its service in the face of increasing competition from Spotify. While other podcast applications, such as Apple’s, allow users to select an individual podcast to listen to, Scout FM established podcast stations on various themes. Scout FM was popular among Apple device owners and could be linked with CarPlay. This interface shows on compatible car screens when an iPhone is connected to Apple’s Siri digital assistant.

• Vilynx (October 2020)

Apple Inc. invested $50 million in acquiring the artificial intelligence and vision firm Vilynx Inc. Vilynx technology might be adapted to Siri and Apple’s general search operations.

Apple Services

Apple has been working on different services to increase revenue, especially since 2018, when iPhone sales have been declining. Apple knew this was bound to happen, so the company employed several tactics to boost its revenue. One is simply increasing the price. 

Apple iPhone, iPad, Watch, and MacBook average prices have seen growth, which has helped Apple consistently increase its revenue. But that tactic was a short-term plan, and Apple Couldn’t rely on it for the long term. That’s where Apple services come into the picture. 

Apple has introduced several services in the past 6 to 7 years, such as Apple Pay, App Store, Apple News+, Apple Music, Apple TV+, Apple Podcasts, Apple Fitness+, etc. 

Apple generated $53.7 Billion in 2020 through its services, which accounted for 19% of total revenue. Surely, the number will keep growing in the coming years as Apple has a solid user base and is making the services a part of its ecosystem, which will help in user experience. 

iMessage is Apple’s instant messaging service for iPhone, iPad, and Mac devices. iMessage, which debuted with iOS 5 in 2011, allows users to share messages, photographs, stickers, and other content between any Apple devices through the Internet. iMessage is exclusively available on Apple devices. That implies users won’t be able to send an iMessage to their Android contacts. Apple prioritizes privacy, which is why everything users transmit as an iMessage is encrypted from beginning to end. This implies that no one can intercept or read it except the person to whom it was sent, even Apple. In reality, even if they have a smartphone, they cannot force their way into a user’s iMessages. No, not without a user passcode. Apple has been chastised by the US government for this same reason since it cannot, even if it wanted to, expose iMessages. 

Apple’s FaceTime is a video chat application. FaceTime was built by Apple on an open standard, which implies that it may be utilized across a variety of platforms and that other manufacturers may exploit FaceTime’s protocol. But instead, FaceTime was only available to customers of Apple products until recently. With the release of iOS 15, FaceTime is coming out of the Apple closet. The software giant is making it possible for people with Android phones and Windows laptops to hop on FaceTime calls — no iPhone required (well not really tho).

Before you jump to search the FaceTime app on the Play Store , here’s the catch- you won’t find it. Users can join a FaceTime call on their Android and Windows devices using a link, so long as the person scheduling or starting the call has an Apple device and an Apple account. It now has a market share of less than 0.01%. Zoom is the market leader in this industry, with a 39.66% market share, followed by GoToWebinar with a 20.64% market share, and Cisco Webex with a 16.48% market share. 

Apple Maps and Google Maps have transformed the way we locate destinations, discover local businesses, and share directions with friends. Both serve the same objective, although their navigation tools and interfaces differ slightly . Google Maps, which debuted in 2005, has been the leading mobile mapping service since the smartphone’s inception. Apple acquired Placebase on July 7, 2009, to build its own Maps application for iPhone and iPad. This app didn’t come until 2012 and was stuck with technical challenges for years.

With the introduction of iOS 13 and iPadOS 13, Apple gained a foothold. Apple Maps was upgraded to exclude third-party navigation data in favor of new data obtained exclusively by Apple. The new maps are significantly more precise and accurate, thanks to millions of miles driven in camera- and LiDAR-equipped automobiles, new high-resolution satellite photos, Apple staffers canvassing areas on foot with radar modules strapped to their backs, and plenty of aerial photography. 

Apple included routes for bicycles, routing for electric cars, congestion zones, and Guides for discovering the finest locations to visit in cities around the world in iOS 14 and iPadOS 14. Apple Maps is only available on Apple devices, including iPhones, iPads, and Apple Watches. It’s incorporated into all Apple-branded products, including Macs. It is not available on devices that are not part of the Apple ecosystem. 

According to the latest survey data from The Manifest in 2018, most smartphone owners use navigation applications, with the majority preferring Google Maps. It has a market share of 67% compared to 12% for Waze, 11% for Apple Maps, and 8% for MapQuest. 

Apple’s digital software distribution platform for iOS devices is known as the App Store. The App Store, which debuted in 2008, allows software developers to publish content designed exclusively for the iPad, iPhone, and iPod touch. Apps may also be downloaded for the Apple Watch through the iOS App Store. 

The App Store is more than just a shop; it is an innovative place dedicated to delivering incredible experiences. Much of it ensures that the firm’s applications adhere to the highest privacy, security, and content standards.  

As of the first quarter of 2021, Android users had a choice of 3.48 million apps, making Google Play the app store with the most available apps . With about 2.22 million iOS apps available, the Apple App Store stands second in the ranking. 

While the actual number of applications may vary since Apple and Google constantly delete low-quality material from their app stores, the number of applications has continuously increased over the years. 

Since 2008, the App Store has paid out more than $200 billion to developers.

According to mobile expert Horace Dediu, who provided even more current data, which are as follows: 

• $1.8 billion in App Store sales over the week between Christmas Eve and New Year’s Eve (+27% year on year)
• $540 million in App Store sales on January 1, 2021 (+40% year on year)
• 600 million: The number of iPhone users with an active subscription.

According to Apple, the App Store saw $643 billion in total commercial transactions in 2020, a 24% increase compared to 2019. At the present rate of growth, the indicated economic value might exceed $1 trillion within two years. 

Apple TV+ is Apple’s own TV and movie streaming service. It features award-winning shows, captivating dramas, ground-breaking documentaries, children’s entertainment, comedy, and more. Every month, new Apple Originals are added. The service is positioned as Apple’s direct competitor to Netflix, Amazon Prime Video, and Disney+ and will exclusively offer original programming via the existing Apple TV app, which is available on various platforms. 

Apple TV+ is available on a monthly subscription and is accessible across several devices via the most recent version of the Apple TV app. It provides ad-free, unique programming that has either been green-lit or created in-house by Apple. 

A family membership to Apple TV+ costs £4.99 / $4.99 per month. Apple’s services package, which includes Apple Music, Apple TV+, Apple Arcade, Apple News+, and Fitness+, was launched in October 2020. Apple TV+ is accessible on iOS/iPadOS devices and the Mac via the Apple TV app.  

A survey was conducted in May 2020 with Apple’s reader at Android Authority, ‘Which streaming service would they pick if they could only pick one?’ From this survey, it was seen that Apple TV+ captured less than 1% of the total vote. The majority of consumers complained that the library was just too small, while it would work better as a second or third membership for people who can’t get enough content. 

Position in the Market Compared To Others

Apple TV+ was marketed as a unique curated stream of entertainment available exclusively through the Apple TV app. Despite Apple’s investments in new movies and programming for its streaming service Apple TV+, the platform is still considered to gain a large success. During the fourth quarter of 2020, it was reported that Apple TV+ has only a 3% market share in the United States, trailing competitors such as Netflix, Disney+, and even Peacock.

Apple TV+ was not the most popular streaming service in the fourth quarter of 2020. Apple TV+ trailed Peacock, NBCUniversal’s streaming service launched in July 2019, with a 6% market share during the same period. Netflix maintained its 31% market share of streaming platforms in the United States, while Amazon Prime Video grew and drew close to 22%. Hulu came in second with 14%, followed by Disney+ with 13%, and HBO Max with 9%. 

In 2020, Apple had a terrible year because most productions were halted due to the COVID-19 pandemic. Apple TV+’s catalog is extremely modest in comparison to its competitors because it only includes original movies and series. Apple extended the Apple TV+ trial term to members who had previously completed the one-year free trial in January 2021. 

Apple is in a unique position since it both creates original video content and distributes third-party video bundles. Apple’s aim to become the “bundler of bundles” looks to profit when power shifts from one or two corporations to many others. Apple TV+, Apple’s streaming video service, was priced at $4.99 per month, which was less than any other major provider. 

As additional competitors plan to launch their services with larger video libraries consisting of famous series and movies, the firm was obliged to keep the pricing low . Within a few months of its inception, the one-year free trial had propelled Apple TV+ to the top of the streaming services. 

Apple’s Plan to Increase Its Streaming Business

Tim Cook, Apple’s CEO, announced the debut of video streaming, news subscriptions, and a credit card in 2019. Apple made a calculated move to enter the video streaming market, which is a slight departure from the company’s core business, which has garnered its brand recognition.

Furthermore, since Apple has broadened its horizons in the services category, the launch of a video streaming service appeared to be an opportune decision since this sector has a lot of untapped development potential.

• Online video streaming might be considered a replacement for television. In the United States, video streaming services have already surpassed television in terms of household penetration, with 69% of homes using a video streaming service.
• Apple has the economies of scale to enter this market with relative ease. It has significant client loyalty and may be able to gain clients more readily as a result of its loyal client base. Furthermore, with the aid of its existing products, the firm may effortlessly pull in its existing consumers on video streaming services.

Apple TV+ is less expensive than the majority of its competitors. It costs $4.99 per month, which is less than half the price of a standard Netflix membership, and it is free for the first year for customers who buy Apple gadgets. Even now, Apple has been collecting older movies and episodes for its TV+ streaming service, intending to build a back library of material that can compete with the massive libraries offered on Netflix, Hulu, and Disney+. According to sources familiar with the topic, the company’s video-programming executives have received presentations from Hollywood studios about licensing older content for TV+ and have purchased several episodes and movies.

It is predicted that in the future the company might acquire Disney . If Apple is serious about becoming a large SVOD player, which they may not be, abandoning Apple TV+ and redirecting its programming to Disney’s established streaming portfolio makes sense. Disney is the only studio large enough to propel Apple into streaming dominance, and it just so happens to fit Apple’s family-friendly image and public values. 

“Apple can easily push the Disney streaming apps onto every phone and make certain offerings free for everyone in markets that are underserved.” – David Offenberg, Associate Professor of Entertainment Finance in LMU’s College of Business Administration

Apple had planned to introduce augmented reality material to Apple TV+ as it sought new methods to attract and keep members, as well as generate interest in AR technology. Even the ‘Bonus content’ has been one of the numerous ways in which Apple has attempted to increase the value of TV+ and keep consumers enrolled. Apple is planning to launch podcasts based on existing TV+ series. Apple is planning to release a headgear that combines augmented and virtual reality in 2022, with an emphasis on gaming, media consumption, and virtual meetings. 

Apple Music

Apple Music was launched in 2015 and is a music streaming service that offers access to over 70 million songs. Its fantastic features include the option to download favorite tracks and play them offline, real-time lyrics, listening across all of your favorite devices, new music customized specifically for its users, curated playlists from its editors, and many more. All of this is in addition to exclusive and unique material.

Apple Music also includes live radio stations and connectivity with Siri, allowing users to operate most of their devices with voice commands. The Apple Music service not only allows one to stream any tune from the iTunes collection on demand, but it also allows one to access all of the music in one location on all of the devices, whether purchased from iTunes, copied from a CD, or downloaded from the web. Individual plans cost £9.99 (US$9.99) per month. A Family subscription, which can accommodate up to six people, costs £14.99 or $14.99 per month, which is less than Spotify’s equivalent. The University Student plan, which costs £4.99/$4.99 a month, is the final option. 

This streaming service now supports lossless streaming quality up to 24-bit/192 kHz! This app is available even for Android OS users to download and get a subscription, starting at only $1.19 or ₹99 per month. University students can get it even cheaper with free Apple TV+, making it one of the world’s best and surprisingly affordable lossless music streaming services. It’s unlike Apple to open up its ecosystem to other players, but audiophiles certainly appreciate this move.

Acquisitions and Collaborations

• On August 1, 2014, Apple acquired Beats Music & Beats Electronics for $3 billion. 

“Music is such an important part of all of our lives and holds a special place within our hearts at Apple. That’s why we have kept investing in music and are bringing together these extraordinary teams so we can continue to create the most innovative music products and services in the world.” – Tim Cook, CEO of Apple

Beats Electronics began to employ Apple’s patented technology in various products following the acquisition, such as the W1 chip in select Bluetooth headphones. Apple shut down Beats Music at the end of the year in anticipation of the 2015 launch of Apple Music.  

• In Jan 2015, Apple purchased Semetric , a business that analyzes music data online. This agreement was reached to revitalize the development of iTunes and Beats Music. Apple’s interest in Semetric is most likely limited to the Musicmetric product, which might be used to reliably compute record label royalties for a music streaming service like Apple Music. After purchasing Beats for $3 billion last year, Apple wanted to extend its online music services with the acquisition. 
• Apple purchased technologies from cloud-based music platform Omnifone in November 2016 and employed at least a dozen (at least 16) former Omnifone workers. Omnifone provided “white-label” music services, which allowed businesses to provide their personalized music services to clients and subscribers. Many former Omnifone employees have gone on to work as software developers at Apple, presumably in areas such as iTunes and Apple Music. 
• In April 2021, Pinna, an on-demand audio entertainment service provider, announced collaborations with Apple . “Pinna is thrilled to be at the forefront of this exciting launch in collaboration with Apple.”, said Maggie McGuire, CEO of Pinna. Apple Podcast subscriptions will let them expand their worldwide reach even further, providing them with a unique ability to personalize channels to certain demographics and interests.    

Apple has joined a crowded, competitive field populated by banks and upstart fintech companies. During Apple’s 2018 quarterly earnings call, Tim Cook provided some insight into the company’s progress toward  becoming a financial player . 

Apple Pay transactions increased from the previous year to over 1 billion in 2018. Apple had been working on a credit card with Goldman Sachs and MasterCard. In 2019, Apple launched its Apple credit card in collaboration with Goldman Sachs and MasterCard.

According to the firm, Apple customers were able to sign up for the new card using their iPhones in the summer of 2019. It revolves around Apple Pay, the company’s mobile payment and digital wallet service, which debuted in 2014. 

Even though Apple was late to the credit card industry, its marketing prowess and dedicated client base allowed the business to expand very swiftly. Tim Cook, Apple’s CEO, indicated that more than 70% of U.S. shops accept Apple Pay and that around 40 countries had joined by the end of 2019.

• The Apple Card is more likely to put branded credit card issuers under competitive pressure than Goldman’s rival banks. Apple may continue to provide additional financial products to its customers, notably bank accounts, which are a good complement to credit accounts.
• According to Gene Munster of Loup Ventures, Apple Pay is still active on around 25% of all iPhones in the United States. This would hasten the adoption of Apple’s payment method since, unlike Apple Pay, the card could be used everywhere.   
• Apple also paid around $100 million to acquire Mobeewave, a payments start-up. The startup provides near-field communications (NFC) technology, which allows smartphones to be used as payment terminals. This technology enables mobile payment options such as Apple Pay and Google Pay. 

Apple Pay was launched in October 2014 and is an Apple Inc. mobile payment and digital wallet service that allows users to make payments in person, in iOS applications, and on the web using Safari. It is compatible with the iPhone, Apple Watch, iPad, and Mac. 

Apple introduced person-to-person Apple Pay payments using the Messages app on the iPhone and Apple Watch in 2017. As of 2019, Apple Pay has surpassed Starbucks to become the most-used mobile payment platform in the United States.

In 2020, the Apple Card had around 3.1 million users in the United States. Apple Pay also allows customers to make one-tap purchases within applications that have implemented the Apple Pay API. It is available on the web on iOS 10 or macOS Sierra or later devices. 

Presently, Apple Pay is accepted by more than 85% of retailers in the U.S. Apple Pay is also available at a variety of locations other than regular retail outlets, such as colleges, ballparks, non-profit organizations, Bitcoin payment providers, and ATMs from Bank of America, Chase, and Wells Fargo.

Apple Inc. announced Apple Card in August 2019 in collaboration with Goldman Sachs and MasterCard. It is a credit card with Apple Pay branding that gives 2% cashback on Apple Pay transactions. In addition to cash benefits for Apple Pay transactions, the card provides financing alternatives for Apple devices.

Apple Card functions similarly to a traditional credit card, but it is deeply integrated into the Wallet app, providing real-time views of the most recent transactions, a comprehensive overview of spending organized by category, and payment options optimized to encourage minimal interest. 

Apple also provides 3% cashback when using the Apple Card with Apple Pay to make purchases at Uber, Uber Eats, T-Mobile, Walgreens, Nike, and Duane Reade. Apple also intends to offer 3% cashback rewards to additional shops and applications in the future.    

What are the Potential Future Products of Apple?

Ar/vr/mr devices.

Apple is developing a range of augmented and virtual reality products that will be powered by a new 3D sensor technology. They announced Vision Pro , a new extended reality headset, on June 5, 2023. Interestingly, they never used the terms “virtual reality” or “augmented reality” throughout their presentation and marketing material. Instead, they’re calling this their first “Spatial Computer.” We’re well familiar with Apple’s tendency to create unique names for everything in their catalog.

Interestingly, we noticed one of their recently granted patents on this technology was filed back on May 4, 2007. It indicates that Apple has been working on this headset idea since the same year they launched the first iPhone! Say what you will about their walled-garden ecosystem approach; their vision (no pun intended) and relentless spirit of innovation are truly commendable.

This headset doesn’t need external controllers. You can control it using eye movement, voice, and hand gestures! The product even supports 3D video capture, allowing users to record and store memories like never before. 

Through the VisionOS interface on its immersive dual 4K displays, Apple may be positioning this headset as a future replacement for smartphones and other handheld computing devices. Looking at the company’s track record of delivering seamless tech integrations into its ecosystem, we believe that the Vision Pro would be a natural extension of everyday tech for an Apple user. 

Apple acquired SensoMotoric Instruments in 2017. The German provider of dedicated computer vision applications, SensoMotoric Instruments’ tech, was used in ARKit and likely made its way to the Vision Pro. In the same year, Apple acquired VRvana, an augmented reality headset startup, for $30 million. A number of the startup’s employees had joined Apple in California. Their work and expertise would have made their way to Vision Pro.

The product isn’t set to launch until early 2024 in the US, but its featured claims seem revolutionary in this niche. Its asking price of $3499 is undoubtedly a steep jump for most consumers, and Apple is aware of that.  Financial Times  reports that Apple has reduced its production supply goal from 1 million in 2024 to 400,000. This product may take some time to pick up speed for all but the most tech-savvy  consumers and early adopters.

Apple Glass

Apple Glass is expected to operate on Starboard (or perhaps glassOS), a proprietary operating system revealed in iOS 13’s final version. The augmented reality framework appears several times in code and text documents, implying that Apple is testing activation and application. According to Bloomberg, Apple Glass will be available in 2023 at the earliest. Apple is getting closer to releasing a VR headset that will compete with the Oculus Rift 2. 

According to Scoble, Apple will most certainly release AR glasses next year , giving it a 2-3 year head start on all competitors.

Apple’s objective is to personalize computers. The Cupertino firm has everything in place to launch an AR product to the masses:

• Hardware manufacturing competence and a stable supply chain allow for seamless integration with iPhones, AirPods, and Apple Watches.
• It comes with its operating system, chip, and App Store.

Because every buyer of these AR glasses will almost certainly have an iPhone, Apple can provide a lightweight product at a reasonable price.

Apple’s foray into personal mobility appeared to have begun in 2014 , with the announcement of Project Titan. This project involves the company’s efforts to bring a Tesla-style electric vehicle to market before the end of the decade.

The Apple Car project has had many lead changes and hundreds of layoffs during its development, but it is currently led by John Giannandrea, Apple’s Chief of AI and machine learning. Giannandrea took over from Bob Mansfield after Mansfield departed in 2020. 

In December 2020, it was verified that Apple is still working on a car and now aims to produce a vehicle in three to six years. According to Ming-Chi Kuo, an Apple analyst, a car would not be launched until 2025 to 2027. Ming-Chi Kuo, an Apple analyst, believes the automobile will be the company’s “next star product,” with Apple able to offer greater integration of hardware, software, and services than prospective competitors in the automotive business , thanks to Apple-designed processors made by TSMC.

“We’re focusing on autonomous systems. It’s a core technology that we view as very important. We are sort of seeing it as the mother of all AI projects. It’s probably one of the most difficult AI projects to actually work on.” – Tim Cook, CEO of Apple

Apple’s first car chassis might be built on Hyundai’s E-GMP electric vehicle (BEV) platform. The Apple Car will almost certainly be sold as an “extremely high-end” or “substantially higher” model than a regular electric car. Apple has been aiming for a game-changing design that might be employed in a future driverless car.

Apple is also working on a novel battery architecture that has the potential to “radically” lower battery costs while increasing vehicle range. The battery technology has been compared to “the first iPhone” and hailed as “next level.” Apple intends to use a novel “mono cell” design that bulks out the individual cells in the battery while freeing up room inside the battery pack by removing pouches and modules that carry battery components.

Apple is also developing a self-driving shuttle service known as ‘PAIL’ (Palo Alto to Infinite Loop). The shuttle service will transport staff between Apple’s Silicon Valley headquarters. Apple is collaborating with Volkswagen and will put self-driving software in Volkswagen T6 Transporter vehicles that will act as staff shuttles. 

In 2019 and 2020, speculations circulated that the project had shifted once again and that Apple was still pursuing an Apple-branded car. However, many speculations in late 2020 indicated that Apple is still working on a full-fledged Apple-branded automobile. This is primarily aimed towards customers, with ambitions to collaborate with an established vehicle manufacturer.

Under the secret name “Project Titan,” Apple had hundreds of people working on the design of an electric minivan. Steve Zadesky, Apple’s VP of Product Design, is leading this project.

Apple bought Drive.ai , a self-driving car startup, in June 2019. For its self-driving vehicle project, Apple engaged many Drive.ai professionals in engineering and product design. According to Axios, Apple bought the company’s assets, including its self-driving cars. 

Drive.ai vans are customized Nissan NV200s that operate in a restricted region near major sites and sports venues. This acquisition was made primarily to improve the company’s autonomous vehicle development effort.   

According to Morgan Stanley analysts, Apple spent approximately $19 billion on research and development in 2020, which equates to almost one-fifth of the overall R&D investment across the automotive sector (about $100 billion). 

By May 2020, 700 employees were working on Apple AV Tech in the Bay Area. 

What does Apple M&A Landscape look like?

Apple is well-known for its strict secrecy, especially regarding new iPhone releases. Apple has completed around 100 mergers and acquisitions in the last six years, the majority of which were done in secret. Apple has rigorous nondisclosure agreements in place and urges acquired staff not to update their LinkedIn pages. 

The top 10 major acquisitions that Apple has made are mentioned below:

Apple’s Top 10 Acquisitions

Acquisition of beats.

The highest amount at which Apple did an acquisition on August 1, 2014, was at $3 billion for Beats Music & Beats Electronics. This acquisition includes buying both Beats Audio hardware and Beats Music. One of the main reasons for this acquisition was the talent and reputation that Apple looks for when creating new products and services. Another relevant reason is Apple wanted to modify and uplift its iTunes. Therefore, Apple began acquisition negotiations with Beats just four months after their Beats Music service first debuted. Even Apple was impressed by the amount of revenue that Beats generated from their headphones.  

Acquisition of Intel Smartphone Modem Business

In July 2019, the acquisition of Intel Smartphone Modem Business for $1 billion was Apple’s 2nd largest acquisition ever. In this deal, Apple had acquired the majority of Intel’s smartphone modem business. This deal also included the transactions of intellectual property, equipment, and approximately 2,200 Intel employees joining Apple. The agreement aided Apple in acquiring a large portfolio of wireless patents from Intel. More than 17,000 wireless technology patents have been held by Apple, ranging from cellular network protocols to modem architecture and modem service. According to multiple reports, Apple intends to produce its modems for iPhones by 2022-2023, and this Intel contract will undoubtedly aid those efforts. 

Acquisition of Dialog Semiconductor

On October 11, 2018, Apple went under a deal to license IP, acquire assets and talent from Dialog Semiconductor to expand chipmaking in Europe at a deal of $600 million. The deal also involved more than 300 Dialog staff transitioning to Apple employees, becoming part of Apple’s hardware technologies team under Johny Srouji. In some cases, Apple will take over whole buildings formerly occupied by Dialog, and in others, they will co-locate in buildings where Dialog will continue to grow its own business.  

Acquisition of Anobit Technologies

In December 2011, Apple went under an acquisition with Anobit Technologies , an Israeli semiconductor startup. The deal was completed at approximately $500 million. The two main reasons for which this acquisition was made include the flash memory controllers of Anobit, which made a key component of all Apple’s leading products (from iPads and iPhones to MacBook Airs), and finally, the acquisition added a large team of chip engineers to the payroll. Flash memory has been a crucial piece of Apple’s technology puzzle.  

Acquisition of Texture

In March 2018, Apple acquired Texture , a digital magazine service by Next Issue Media LLC, for $485 million. The service provided subscribers with unrestricted access to their favorite titles for a single monthly subscription fee. 

“We’re excited Texture will join Apple, along with an impressive catalog of magazines from many of the world’s leading publishers. We are committed to quality journalism from trusted sources and allowing magazines to keep producing beautifully designed and engaging stories for users.”  – Eddy Cue, Apple’s Senior Vice President of Internet Software and Services 

Acquisition of Shazam

On September 24, 2018, Apple acquired Shazam to have more opportunities to explore and experience music. The deal was finalized at $400 million. 

“Apple and Shazam have a long history together. Shazam was one of the first apps available when we launched the App Store and has become a favorite app for music fans everywhere. With a shared love of music and innovation, we are thrilled to bring our teams together to provide users even more great ways to discover, experience, and enjoy music.” – Oliver Schusser, Apple’s Vice President of Apple Music 

In May 2018, Apple revealed that Apple Music had reached 50 million users.  

Acquisition of Next Software

Back in 1996, Apple acquired Next Software at a deal of $400 million. Apple paid approximately $350 million in cash and stock for the privately held Next to purchase that company’s shares and an additional $50 million to cover its debts. 

Since its technology was agile, Apple hoped that Next’s object-oriented, Java-enabled open software platform would greatly boost its Internet and intranet status. It also aimed to capitalize on Next’s enterprise role. 

“This is a complementary arrangement, and the pieces fit together better than any other alternative we looked at, and it will launch a new round of technology.”  – Gilbert Amelio, Former Chairman and CEO at Apple

Acquisition of PrimeSense

In 2013, Apple acquired PrimeSense , an Israeli-based pioneer in 3D sensor technology. The deal was completed at approximately $360 million. PrimeSense’s system could potentially be used in a variety of Cupertino devices. This acquisition was Apple’s second purchase of an Israeli company, as it bought Anobit in January 2012. Apple did not disclose the intentions behind the purchase of PrimeSense.   

Acquisition of AuthenTec

In 2012, Apple bought AuthenTec , a developer of fingerprint sensor technology, for approximately $356 million. The fingerprint technology used in mobile phones in Japan to authenticate mobile payments would help Apple bring those services to markets such as the United States. 

Apple also acquired the right to pay the company to license certain patents totaling as much as $115 million. AuthenTec’s authentication features would be integrated into Apple’s iPads and iPhones and potentially used as security measures for other features, such as non-mobile computer systems or cloud-based networks or services.  

Acquisition of PA Semi

In 2008, Apple acquired PA Semi , a chip designer, for approximately $278 million. This acquisition was a strategic move by Apple, as it aimed to continue to differentiate its next-generation handheld products amongst a growing fleet of competitors. Even the power savings offered by P.A. Semi’s designs may have been amongst the firm’s most compelling assets in Apple’s eyes. 

Now, let’s move forward to Apple’s top 5 Market regions besides the US.

What are Apple’s Top 5 Markets besides the US by Revenue?

Apple’s top markets besides the US by revenue include the regions from Europe, Greater China, Japan, and the rest of Asia Pacific. America’s high income is partly attributable to Apple’s good performance in its home market, the United States. Apple has by far the greatest market share among smartphone suppliers in the United States. 

Even though overseas sales account for a greater portion of Apple’s overall income, the United States still accounts for around 40% of Apple’s net sales.

During the years 2020 and Q1 2021, the annual revenue of Apple is divided into several regions, such as the U.S., Europe, Greater China, Japan, and the rest of Asia Pacific. The new iPhone 12 Pro and 12 Pro Max, now in their 14th iteration, continue to contribute to the success of Apple’s trademark product, helping push for year-on-year iPhone sales increase despite the COVID-19 pandemic. 

Apple gained 28% of the European market in the first quarter of 2020, making it the company’s greatest first quarter of the fiscal period. Even in China during the year 2020, Apple captured a market share of approximately 10.5% . In Q4 2020, Apple was the only brand that showed positive year-on-year growth in the China market that year. 

The following table shows the annual revenue:

Source: Statista

What does Apple’s Investment Landscape look like?

With the accelerating pace of technological change, investing in startups has become a key part of Apple’s corporate strategies. By doing so, they also tend to closely monitor their smaller brethren. Given below are the top 5 investments made by Apple.

Top 5 Investments Made by Apple

Apple has made several investments in startup companies globally. Amongst them, the top 5 investments include:

• In May 2016, Apple announced it had invested in a Chinese ride-hailing service, Didi Chuxing . Apple invested around $1 billion to help Apple understand the critical Chinese market. The investment gave Apple a stake in two burgeoning waves of technology: the sharing economy and car technology. Even Apple has been trying to reinvigorate sales in China, where it has come under greater pressure from regulators. 

“From a Didi point of view, we see that one, it is a great investment. Two, we think that there are some strategic things that the companies can do together over time. And three, we think that we’ll learn a lot about the business and the Chinese market beyond what we currently know.”  – Tim Cook, CEO of Apple 

• Even in June 2016, Apple and other firms backed unicorn Didi Chuxing Technology , which raised $4.5 billion in a fundraising drive to oppose Uber’s assault on the Chinese market. 
• On March 31, 2021, Apple invested $50 million  in UnitedMasters, a music distribution and data analytics company. The platform aims to democratize the music industry by allowing budding musicians to earn money and get distribution across various music platforms, including Spotify and Apple Music. This agreement marks the beginning of a strategic engagement with Apple, which will open up many new prospects for UnitedMasters artists.

“Steve Stoute and UnitedMasters provide creators with more opportunities to advance their careers and bring their music to the world.”   – Eddy Cue, Apple Executive

• In March 2016, Apple, together with Blackboard, Dropbox, Udemy, and other companies, invested around $2.3 million in Volley Labs , a learning technology firm. Volley’s primary goal is to provide technology that assists students, particularly those enrolled in advanced high school or college curricula, in understanding the content they are learning by surfacing relevant, machine-curated explanations from the web via their mobile devices. The Volley’s funders’ ultimate goal is to spare students from spending too much time “processing” material and redirect their time and energy to meaningful learning. 
• On November 21, 2015, Apple invested in God-i , a startup specializing in wearable devices, in the seed round. However, Apple exited from further investments in God-i.  
• On February 25, 2019, Apple and other investors  invested  $21 million in FreightWaves during a Series B funding. FreightWaves is a data and content forum that delivers near-real-time statistics to industry players.  

Apart from investing in smaller companies and startups, collaboration is another strategy opted by Industry giants such as Apple. Let’s look at the top 10 partnerships and collaborations Apple has made over the past years.

Top 10 Partnerships/Collaborations Made by Apple

The various top partnerships and collaborations that were made by Apple are mentioned below:

• In September 2020, Singapore’s government and Apple announced a collaboration on the health initiative LumiHealth, which would use Apple Watch. LumiHealth, developed in partnership with a team of physicians and public health professionals, encourages the use of technology and behavioral insights. Singaporeans might use their Apple Watch and iPhone to stay healthy and complete wellness challenges.

“Singapore has one of the world’s leading healthcare systems, and we are thrilled to be partnering with them to incorporate Apple Watch and LumiHealth into their holistic approach to well-being” – Jeff Williams, COO of Apple 

• In April 2020, Google and Apple announced a partnership initiative to use Bluetooth technology to help governments and health organizations reduce the transmission of the COVID-19 virus. With user privacy and security at the forefront of the design, both organizations would offer APIs in May that would allow Android and iOS devices to communicate with public health applications. Users could download these official apps from their respective app stores. 
• In October 2017, Apple and GE launched a collaboration to deliver powerful industrial applications that would provide predictive data and analytics from Predix, GE’s industrial Internet of Things (IoT) platform, to iPhone and iPad. The corporations announced the release of a new Predix software development kit (SDK) for iOS, providing developers with the tools they require to build their own powerful industrial IoT apps. 

“Together, Apple and GE are fundamentally changing how the industrial world works by combining GE’s Predix platform with the power and simplicity of iPhone and iPad.” – Tim Cook, CEO of Apple  

• In August 2017, Apple and Accenture announced a collaboration to help businesses revolutionize the way employees interact with consumers by developing new business solutions for iOS. Accenture Digital Studios would establish a dedicated iOS practice in key locations worldwide. The two firms would provide a new set of tools and services, including IoT, to assist businesses in unlocking new income sources, increasing efficiency, improving customer experience, and lowering expenses.  
• In September 2016, Apple and Nike unveiled the Apple Watch Nike+, the latest product of their long-standing collaboration. Apple Watch Nike+ has been the ideal running tool, combining exclusive Nike Sport Bands with the Apple Watch Series 2, including GPS, a two-times brighter display, 50-meter water resistance, a strong dual-core CPU, and watchOS 3.

“Apple Watch Nike+ takes performance tracking to a whole new level and we can’t wait to bring it to the world’s largest community of runners.”   – Jeff Williams, COO of Apple 

• In May 2016, Apple and SAP announced a collaboration to reimagine the mobile work experience for corporate clients of all sizes by combining powerful native apps for the iPhone and iPad with the better capabilities of the SAP HANA platform. 

“As the leader in enterprise software and with 76% of business transactions touching an SAP system, SAP is the ideal partner to help us truly transform how businesses around the world are run on iPhone and iPad. Through the new SDK, we’re empowering SAP’s more than 2.5 million developers to build powerful native apps that fully leverage SAP HANA Cloud Platform and tap into the incredible capabilities that only iOS devices can deliver.”  – Tim Cook, CEO of Apple 

• In 2016, Apple and Deloitte announced a collaboration to assist organizations to accelerate business transformation on iPhone and iPad. They would also collaborate on the creation of EnterpriseNext, a new service offering from Deloitte Consulting designed to help clients fully leverage the iOS ecosystem of hardware, software, and services in the workplace.

“Our dedicated Apple practice will give global businesses the expertise and resources they need to empower their mobile workforce to take advantage of the powerful ecosystem iOS, iPhone, and iPad offer, and help them achieve their ambitions while driving efficiency and productivity.”  – Punit Renjen, CEO of Deloitte Global 

• In August 2015, Apple announced a partnership with Cisco to build a fast lane for iOS business customers by optimizing Cisco networks for iOS devices and apps and integrating iPhone with Cisco corporate settings to offer unique collaboration on iPhone and iPad. 

“iPhone and iPad have become essential tools for the modern workforce and are changing the way work gets done. Together with Cisco, we believe we can give businesses the tools to maximize the potential of iOS and help employees become even more productive using the devices they already love.” – Tim Cook, CEO of Apple  

• In July 2014, Apple and IBM announced an exclusive collaboration combining each company’s strengths to improve workplace mobility by integrating IBM’s big data and analytics capabilities into iPhone and iPad. The collaboration would improve the integration of Apple’s machine learning framework, Core ML, with IBM Watson, resulting in strong insights that become deeper with time and use. The alliance would include exclusive IBM cloud services optimized for iOS, such as device management, security, analytics, and mobile integration.  
• In 2013, Square partnered with Apple to offer the new Square Stand, a point-of-sale system through Apple’s extensive retail network. The Square Stand is an iPad accessory that can connect to various devices, including cash registers, barcode scanners, and printers. In addition, the gadget has a built-in credit card reader. In 2016, the company announced a new collaboration allowing consumers to connect money saved on Square’s virtual card, Square Cash, to their Apple Wallet.  

Future Outlook

Apple has been doing more than good for a long time and has been saying since the company launched the iPhone. 

For the 10th consecutive year, Forbes magazine ranked Apple as the most valuable brand in the world in 2020. Apple’s great track record should continue as long as future management takes care of the brand and pushes it into new sectors. Apple’s breakthroughs are often incremental, with the company adapting its design prowess to the most recent consumer tech trends.

Looking ahead to ten years, the Apple of 2030 should continue to progressively enhance its hardware products while also introducing new ones such as Apple automobiles, AR/VR headsets, AR smart glasses, and so on. Apple will also broaden its brand to provide a suite of packaged consumer offerings.

In 2020, Apple executed an AR-related acquisition, acquiring NEXTVR for around $100 million. This decision was made considering AR’s future growth and vast applications and how Apple can take advantage of them. 

“When I think about that in different fields, whether it’s health, whether it’s education, whether it’s gaming, whether it’s retail, I’m already seeing AR take off in some of these areas with the use of the phone,” said Tim Cook on a podcast . “And I think the promise is even greater in the future.”  

Aside from possible smart eyewear, Apple is said to be working on self-driving automobiles. Besides these new, futuristic initiatives, Apple is projected to continue selling many iPhones, Apple Watches, iPad tablets, laptops, and desktops even ten years from now. By 2030, it’s feasible that Apple will have a version of almost every form of entertainment, financial, or other consumer service.

Apple announced an acceleration of its US investments, with plans to make additional contributions totaling more than $430 billion and create 20,000 new jobs throughout the country over the next five years, beginning in April 2021. Apple has increased its investment by 20% over the next five years, boosting American innovation and delivering economic benefits in every state. Tens of billions of dollars will be invested in next-generation semiconductor research and 5G innovation throughout nine US states.

“At this moment of recovery and rebuilding, Apple is doubling down on our commitment to US innovation and manufacturing with a generational investment reaching communities across all 50 states.” – Tim Cook , Apple CEO.

It is becoming undebatable that Apple has amassed enormous status and reputation worldwide. The capacity of Apple to retain and satisfy users inside its ecosystem is at the heart of its sustained success. In a realistic scenario, the future growth of Apple from 2022 to 2031 is depicted below:

• In this scenario, iPhone revenue will be moderately higher at the end of the 10 years than in 2021.
• By 2031, the Mac will grow only by 5%, the iPad by 8%, Wearables, Home, and Accessories by 20%, and Services by 15%. One new product introduction, Product X, will generate $10 billion in revenue by 2031.

Over 10 years, sales growth is 9.66%, a reasonable rate for a company of this size. The iPhone growth narrative is far from done, and a couple more upgrade cycles may drive a revival in growth over the following two decades. Even if App Store fees are reduced to 0%, Apple’s management will find another way to monetize service offerings. 

Authored By: Vipin Singh, Market Research

Next Read: Amazon Business Strategy: Insights of its operation and investment plan to become the top Fortune 500 company

Also Read: Airbnb expanding into social media? A peek into Airbnb’s expansion plan

[…] What is Apple Business Strategy?; […]

[…] instance, Apple’s strategic plan in the early 2000s centered on designing groundbreaking products like the iPhone, which set clear […]

[…] 1. GreyB: Apple Business Strategy: A Detailed Company Analysis 2. EdrawMind: Apple Segmentation, Targeting, and […]

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Apple Business Model

Apple Business Model focuses primarily on selling its products and offering services through subscriptions. Sales of Apple products like the iPhone, iPad, Apple Watch, and MacBook make up a large percentage of Apple’s revenue, while its services include Apple TV+, Apple Fitness+, Apple Music, iCloud+, and Apple Arcade, although a small percentage of its revenue, net them a whopping average of $13 billion per quarter.

Apple has surpassed the trillion-dollar market cap mark through its business model, making it the first company to ever manage such a feat.

A brief history of Apple:

Steve Jobs and Steve Wozniak, two college dropouts, founded Apple on April 1, 1976, using Jobs’ garage as their main office. They aimed to revolutionize the way people saw computers. They wanted to make computers small enough to fit in people’s homes and offices. In effect, their first product, the Apple 1 — a hand-built computer —, included only functional hardware modules like CPU, RAM, and basic textual-video chips , and excluded features like monitors, keyboards, and other Human Interface Devices.

On their second product, the Apple II, expansion slots were included for attaching floppy disk drives and other components and Human Interface Devices. This second product increased their sales from $7.8 million in 1978 to $118 million in 1980 (when they went public).

A few years later, in 1983, Wozniak left the company, and Jobs followed suit in 1985, after hiring PepsiCo’s John Sculley as president . He was ousted after the growing friction between him and Sculley resulted in him organizing a ‘coup’ to remove Sculley. This coup backfired, however.

Steve Jobs founded his NeXT software company soon afterward, after buying Pixar from George Lucas. However, his departure was short-lived, and in 1997 Apple bought his company. This was done to bring him back to the company in order to save their declining market shares. The changes he implemented after coming back saved the company from impending doom, and in 2007, they launched one of their most successful product, the iPhone.

They have launched other successful products and services since then, which helped them become the first company ever to cross the trillion-dollar mark, this was in 2018. In 2020, they doubled their market cap by doubling down on their highly successful business model .

Who Owns Apple:

According to 2021 shareholder data, Apple’s major shareholders included corporations like  The Vanguard Group (7.68%), BlackRock, Inc. (6.47%), Berkshire Hathaway Inc. (5.56%), and private investors like Tim Cook, Apple’s CEO, Artur Levinson, Jeff Williams, Al Gore, Dave Adams, and Andrea Jung.

Apple’s mission statement:

Apple’s Mission Statement is: “To bring the best user experience to customers through innovative hardware, software, and services.” – Bstrategyhub

How Apple makes money

Apple leverages its unique ability to design and develop its own operating systems, hardware, application software, and services to provide its customers with products and solutions with innovative design, superior ease of use, and seamless integration — 10-K 2017 .

Apple makes money by designing, manufacturing, and selling smartphones, tablets, personal computers, wearables, and accessories. Their main products include iPhones, MacBooks, iPads, Apple Watch, AirPods, and the Apple TV. They also generate revenue by offering subscription services like their iCloud cloud services, Apple TV+ subscriptions, Apple Arcade, and iTunes. The company recently announced its plans to start hardware subscription services for its products.

Furthermore, Apple makes money when the users of its products pay fees for the extension of their warranties. In addition to their products, they also sell compatible third-party accessories and apps.

As a passive revenue source, Apple also makes money through in-app purchases on iPhones, and app sales on their App Store — they take a 30% cut from every transaction.

Their largest and most profitable revenue source is the sales of their products, however, their subscription services generate the highest gross margins in comparison to product sales.

Apple’s Business Model Canvas

Let’s take a look at the Apple  Business Model Canvas  below:

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Apple’s Customer Segments

Apple’s customer segments consist of:

• Product Buyers: These include people that buy their products for their high-end performances and people who use them as their primary devices regardless of performance. A section of their customers also buys their products because of the brand name;  
• Service Subscribers (most service subscribers overlap as product buyers): These include subscribers of Apple Arcade — their games’ subscription service —, Apple TV+, iCloud+, and their warranty extension services.
• App Developers (and music producers) : Anyone that would like to sell their apps and music to the Apple user base and monetize through app store or iTunes.

Apple’s Value Propositions

Apple’s value propositions consist of:

• Premium High-end Products (with a focus on privacy): Apple offers its customers carefully crafted products with a focus on performance, stability, and privacy, a number of its customers have stayed around because of this.
• An ecosystem of interconnected services : Apple’s line-up of services (and products) are well integrated with each other, offering users hassle-free inter-use of their products and services.
• Access to iPhone/iPad user base : one of the richest user bases in the world that are willing to spend much more than Google Android user base.

Apple’s Channels

Apple’s channels consist of:

• Apple Stores
• Third-party Stores
• Telecom Companies (Apple’s iPhones are typically bundled with a mobile plan to reduce costs by offering monthly repayment packages)

Apple’s Customer Relationships

Apple’s customer relationships consist of:

• Social Media
• Customer Service
• Operating Systems
• Loyal Community

Apple’s Revenue Streams

Apple’s revenue streams consist of:

• Sale of Products
• Subscription Services
• App Store and in-app purchase percentage cuts
• Licensing Fees
• Cloud Services

Apple’s Key Resources

Apple’s key resources consist of:

• Brand Name and Recognition
• Management Team

Apple’s Key Activities

Apple’s key activities consist of:

• Design & Manufacturing
• Marketing & Sales

Apple’s Key Partners

Apple’s key partners consist of:

• Hardware Suppliers , such as Qualcomm, Samsung, Cisco, etc.;
• Software Providers : cloud service providers, such as Google and Amazon; 
• Investors/Shareholders
• Telecom Companies

Apple’s Cost Structure

Apple’s cost structure consists of:

• Manufacturing & Distribution
• Platforms Maintenance Fees
• Payment Processing Fees
• Management & Administration

Apple’s Competitors

• Samsung : One of Apple’s main competitors in the smartphone space, Samsung holds a whopping 20% share of the global smartphone market. Samsung’s entrance into the market with its Samsung Galaxy and Note series has negatively influenced the sales of iPhones globally, however, they are not the only company that has contributed to this, others include Xiaomi, Vivo, and Oppo.
• Dell : Dell Technologies (DVMT) is a company that makes desktop and mobile computing devices, including laptops, tablets, and mobile phones. Dell’s biggest competitor is Apple; the two companies have a long history of competing against one another. In fact, in 2004 Dell released a product to compete with Apple’s iPod music player: Dell DJ.
• HP : Hewlett-Packard Co. (HPQ), established in 1939, is known as the founding company of Silicon Valley as well as for making affordable consumer computers. HP has expanded its presence in recent years to include computers for a broader range of consumers around the globe. Apple Inc. is a leading competitor for HP outside the United States.

Apple’s SWOT Analysis

Below, there is a detailed SWOT Analysis of Apple:

Apple’s Strengths

• Pricing Strategy : Apple’s high prices makes it possible for the company to sell a small number of products and still rake in a large amount of revenue;
• Subscription Services : The company’s subscription services and the principles of the subscription business model enables Apple to have a predictable chunk of revenue;
• Performance : Apple’s insistence on rolling out its products with high-performance processors has cemented its name as a go-to company for high-quality products;
• Brand Recognition : Their popularity and fame as a goto company for quality products and services has helped them increase and maintain their market cap;
• Loyal Community : Apple’s community of loyal customers allows them to have customer feedback aimed at improving the quality of their products and services. This community also enables Apple to have a somewhat stable revenue proposition.

Apple’s Weaknesses

• Pricing Strategy : Apple’s prices make it a luxury company in developing countries, thus driving away most middle-class and lower-class potential customers;

Apple’s Opportunities

• Products and Pricing Strategy : Although being partially implemented, the design and manufacturing of products aimed at middle-class and lower-class consumers will enable Apple to increase its already high revenue and market cap.

Apple’s Threats

• Market Trends : As a result of Apple’s yearly release of products, the market trend is a big factor that determines the revenue yield of its new line-up of devices. Because most customers already have recent versions of their products or do not have plans of purchasing new ones, Apple’s yearly revenue yield at new product launches seems to be reducing year by year, and will most likely continue;
• Competition : Competitors like Samsung are already affecting Apple’s customer base via their offering of flexible and customizable OS in their products. The arrival of better competitors aimed at the high and middle classes of developed countries will most likely affect Apple’s user base.

-> Read More About Apple’s SWOT Analysis .

Through the success of its application, Apple’s business model is worth considering for new entrants into the tech space. However, do not expect overnight success since Apple experienced its fair share of challenges even with its implementation of its business model. Apple’s combination of the subscription business model and their product sales was a major factor that determined their huge revenue growth and as such, if you are to adopt the Apple business model, do not overlook the subscription business model .

Who is Daniel Pereira ?

I love understanding strategy and innovation using the business model canvas tool so much that I decided to share my analysis by creating a website focused on this topic.

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Get Inspired From These Top 12 Slides in Apple's Original Pitch Deck

Are you looking to build a powerful pitch deck for fundraising? Want to know how Apple drives funds? We have covered all, but before, let us know how it started for Apple.

On the 2nd of August, 2018, Apple created history by becoming the first publicly-traded company to reach the $1 trillion mark in the United States of America.

Later in 2020, they again broke the record by attaining the feat of 2 trillion dollars market capitalization.

The Story of Steve Jobs & Apple

The history of Apple's origin will take us back to the 1970s. The journey of our startup tech, Apple, is a fairy-tale of one garage, three friends, and absolute dedication to succeed.

The two Steve's, Jobs and Wozniak, are the brains behind Apple.

But, there would have been no i Pods, iPhones or Mac, if Jobs hadn't convinced his friend Wayne to invest in 10% of the company's stocks.

Three friends launched the first personal computer named Apple 1 in 1976, sold at a whopping price of $666.66.

A few weeks later, Wayne left the company.

A year after, Apple II was launched with ground-breaking features such as spreadsheets and calculating software; it also introduced color graphics that revolutionized the computer industry.

By 1978, they had a real office with a team of intelligent programmers.

From 1977 to 1980, their sales numbers grew at a rapid annual rate of %533.

After 1980, things weren't easy because of the mushrooming of competitors in the market, such as IBM and Microsoft.

Therefore, Apple came with its computer upgrade Apple III to stand out.

However, they lost the battle to IBM computer because of its primary design flaw.

On 12th December 1980, they went public, selling their stocks at $22 per share.

In 1984, the Lisa operating system was swapped with Macintosh, delivering a user-friendly experience.

In 1983 Jobs hired John Sculley as the company's CEO. He was brought from PEPSI (he was the youngest CEO) with this famous quote- "Do you want to sell sugared water for the rest of your life? Or do you want to come with me and change the world?"

However, differences between Jobs and Sculley became a rift, and the company's board of members took the side of Sculley to send Jobs packing.

What's the Master Financial Plan of Apple?

This scripted the tremendous decline of the company as the stocks of Apple were at 12-years lowest. And the entry of Jobs as an interim CEO in 1997.

From there on, Jobs made some bold decisions, such as partnering with Microsoft to create a new version of Macintosh and starting an online Apple store. The Apple iTunes music store was introduced in 2003. Between 2003-2006, the stocks of Apple increased ten times.

Now, arrived at the acne Apple's biggest gamble, which paid off, the iPhones in 2007. Their range of iPhones was selling like hot cakes across the globe. The shares of Apple hit a staggering $300 in October 2010.

A year after Job resigned as CEO due to health concerns, Tim Cook replaced him. On 5th October 2011, Steve Jobs was passed — the end of an incredible era.

Apple’s Funding at a Glance (Apple Pitch Deck Included)

To date, Apple has raised $6.2 billion from SIX fundraising rounds, with the latest being on Sep 6, 2017, from a Post-IPO Debt round.

SIX central investors fund Apple, and Berkshire Hathaway & Microsoft are two notable names in that list. We talk about Apple's original pitch deck in the upcoming segment, essential slides included.

12 Top Slides Included in Apple’s Investor Funding Pitch Deck

Apple has done a terrific job pitching its idea to angel investors. They have prepared a compelling pitch deck that narrates the brand story, describing the management & team, sustainability indices, objectives and problems to be solved, competitive analysis, etc.

Let's dive right into the relevant slides in Apple's investor deck to increase the success chances of raising necessary funds from prospective investors.

Click Here to Explore World's Largest Collection of Pitch Decks

Slide 1: a well-illustrated slide about apple as a multinational technology firm.

Show how you can change the thought and philosophy for a particular product or service in the market. Grab the attention of investors by showcasing your upcoming plans using vision, mission, and goal statements, just like Apple.

Tell the purpose of your technology firm, and this is what Apple has demonstrated though this slide.

Don't forget to state what you will offer to the public with a quick brief on who you are and how you decided to corporate this plan into your business.

Try to give a brief of your story to investors from this point of the presentation.

Download this 100% editable slide from Apple Pitch Deck Presentation

Slide 2: A Stately Covered Slide for Various Problems Limiting User Experience

“It’s So Much Easier to Suggest Solutions When You Don’t Know Too Much About the Issues,” said Malcolm Forbes.

Describe the real problem the public is facing.

Showcase and include this impactful slide in your pitch deck as it will elevate the interest of the investors in your business.

See how Apple has clearly stated their product’s problems in brief. Try to demonstrate the same situation as yours with our editable slides of the pitch deck.

Also, remember to use a creative image reflecting the problem and emphasizing the impact.

Slide 3: An Impressive Slide That Showcases the Solutions Provided by Apple

Apple has pictorially demonstrated the answers they are going to offer the general public.

The solutions slide in the pitch deck must be well-aligned to the exact problems and provide something that the target audience cares about.

“Business Must Be the Solution, Not the Problem” – said Dennis Weaver.

Put forth the solutions just like mentioned in this pitch deck for Apple. Mention the need for the solution section-wise. Use images to elaborate.

Try to avoid distractions by using too many graphics and infographics. Clearly state what you have to offer the customers.

Potential investors fund your business only when there is something definite and unique in your solutions.

Edit this slide of the Apple pitch deck and augment your growth with winsome tactics.

Download This 100% Editable Apple Pitch Deck Presentation

Slide 4: A Professionally Designed Slide That Determines the Potential Market Size for Your Company

Highlight the insights of the market size present across the globe. Apple has much market share in Asian and European countries.

Geographical representation of the market size for your company not only indicates crucial points in the pitch deck but is also pivotal for getting funded from genuine investors.

Like Apple conducted and is continuously working on surveys that can cater details for the potential market size it can gather in its cluster.

Every new start-up or business looking for augmented capital while raising funds must give due importance to the research of potential market share of themselves.

Try to give reasons to people to choose you over others through world maps or international market competitive analysis.

Slide 5: An Engaging Slide to Cover the Prospective Target Market for Your Brand

Investors are interested in your pitch deck because they are looking for fertile financial products like your business to invest their money in and generate valuable profits from them.

“There Is Only One Winning Strategy. It Is to Carefully Define the Target Market and Direct a Superior Offering to That Target Market” – Philip Kotler.

This slide in the pitch deck exhibits the potential target market of Apple with detailed customer demographics based on many selects.

Intense research on the customer base attracts angel investors’ attention to your business. This assures them of returns on their investments, long-term picture of your goals, all at the same time.

Never underestimate the investor’s knowledge about the demand and requirements of the market.

Your wrongly presented information or stats can affect the decision to fund a lot.

Slide 6: An Effectively Designed Slide That Will Determine the Profitable Business Model for Your Company

Apple is an entirely customer-centric brand & their business model emphasize two elements:

“Every innovation should come from the customer. Innovation should be as such it is not able to be replicated in 2 years.”

Customize this slide and establish a brand identity for your business.

The model will clarify investors about your idea and all the activities undertaken to achieve that position. Describe how your profitable model can align with brand strategy to give productive and effective results.

Make the slide eye-catching.

Try using high-quality images complimenting the business model.

Slide 7: Potential Slide to Showcase Various Products Offered by Your Brand

Undermentioned is the slide through which Apple made aware about their products to angel investors with a briefing on each of those products’ features, specs, prices, etc.

Why have you called investors to your place? Why must they invest in your business? What new are you offering that is not there in the market?

This slide is the answer to all of such questions.

Segment your products based on different categories.

Offer your products in the most creative form, using images and infographics.

Conserve your investors towards your offering and assure them to gain a competitive advantage over others.

Slide 8: Persuasive Market Traction Slide That Displays Competitive Landscape Addressing Your Brand’s Competitors

To work as a clear winner in the eyes of angel investors, showcase your competitive advantage analysis like Apple has done.

“If all you are trying to do is essentially the same thing as your rivals, then it’s unlikely that you will be very successful – Michael E. Porter.”

Exhibit every bit of information that others offer in the same product line and how you are better.

Even guarantee investors that your competition factors stand-alone and single out in the market after conducting in-depth research.

Assured investors like Apple have done that they can beat the competition in the technology sector like a river flowing down from the mountain.

Edit this slide for your funding pitch deck & get goal-driven solutions for brand expansion.

Slide 9: An Engaging Slide to Address Sales & Distribution Channels for Customer Reach

Investors want to trace your sales and distribution reach strategy after listening about what products and solutions you offer to customers.

Apple’s pitch deck embraces such a slide that exhibits details for sources of sales and distribution of the products to the customer.

It has presented each channel with its name and picture to clear investors about the business model.

Convey the complete information to investors that assures them of your integrity, transparency, commitment, and perseverance for getting funds.

Download this well-researched and impactful pitch deck and seal the business deals with genuine investors.

Reach new milestones with guidance from our research teams and access to the Apple pitch deck.

Slide 10: An Amazing USP Slide Carrying Details About Key Members Involved in Brand’s Management Team

The slide in the pitch deck citing the details of the team members responsible for the project is the perfect attention-grabber for investors.

‘Great things in business are never done by one person. They are done by a team of people. – Steve Jobs’

The team slide of the Apple pitch deck exhibits the introduction, experience, designation, and other vital descriptions of each key team member.

Edit this slide according to your business requirements and team details and fill your funnels with efficient investor’s capital.

Do you know what investors are looking for in this slide of your pitch deck? ‘THE EXPERIENCE OF YOUR TEAM MEMBERS!’

Slide 11: A Traction Slide That Determines Your Company’s Progress

As we discussed earlier, fundraising is not a one-time affair. Instead, it is a long game for any business to survive in the market for long.

Apple’s pitch deck includes this slide to present investors with the progress of Apple’s past products across the globe.

It even mentions the achievements of showcasing Apple’s success over the years.

Similarly, you can use this slide to address investors about your accomplishments in the past.

Customize the slide based on requirements and drive potential angel investors for your business in 2021.

Slide 12: Showcase your Key Statistics associated with Brand through this Impactful Slide

Here is the last chance to grab the maximum attention of investors for raising funds with the key statics.

Use numbers, ratios, percentages, and other info-graphic tools to showcase data like Apple has done. Include every component of your business in this slide, whether it is, no. of employees, year of establishment, etc.

‘People who know what they are talking about don’t need PowerPoint” – Steve Jobs.

Raising funds is no more a challenging task for Apple because they have proved themselves in the market for their innovation.

Discover the art of elevating ROI by grabbing this pitch deck and customizing it based on personal needs.

Unlock your potential in front of investors and skyrocket your business in no time.

Let’s Put the Lid On

Come with your ideas and problems to us. Our team will prepare a compelling pitch deck for you and guide you on how to customize the same in the future.

I hope you got the idea of how to get into the footsteps of the Apple pitch deck.

At SlideTeam , we offer full-spectrum pitch decks for you that are well-researched and tailored based on your requirement.

At SlideTeam, we have a pool of research analysts, content curators, and designers to create a investor deck that echoes your idea and improves the chances of nailing the investment prospect.

We have specialization across industries. Purchase our membership and have access to ten original companies and industry-specific investor presentations. Membership Starting Only at $49.99.

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Profitable Business Models > Business models of large companies

Apple Business Model Canvas: How it became the King of Innovation

• by  Joanne Moyo
• September 23, 2021

Unless you’ve been living under a rock, you probably know just how big Apple, Inc. is. Over the last few decades, Apple has become one of the most recognized brands in the world. It’s been dominating the technology industry, becoming one of the most valued companies in the world.

As of August 2021, Apple had a market cap of around $2.43 trillion. With a business model based on innovation and consumer-centric devices, Apple can retain a loyal customer base through user-friendly designs, easy data migration to new product lines, and integration between Apple devices. Every time Apple drops a new iPhone, the long winding queues are proof of how successful its business model is.

But how did the company manage to create such a fierce love for the brand?

Apple created an entire technological ecosystem, often referred to as the Apple Ecosystem Lock. The company’s insistence on integrating its products makes it easier for customers to keep using new Apple products. Thus, it is more challenging to switch to a competitor’s product.

In terms of hardware and high-end gadget sales, Apple created brand loyalty in the early 2000s by radically aiming to put a computer in every pocket. Unlike the then-dominant Microsoft, whose focus was on putting a computer on every person’s desk. This nonconformist business model is what propelled Apple to the top of the technological food chain.

However, every success story also has a couple of failures along the way. Over the last 40 years, Apple has faced disappointing product releases, continued leadership, and legal issues. Nevertheless, its profitable business model has ensured Apple’s success.

Let’s take a look at how this giant was born.

1971-1989: The birth of Apple

1971: the beginning of personal computers.

In the 70s, computers were big and expensive machines, and the industry was dominated by IBM. Additionally, only a handful of enthusiasts knew how to manage and use these technologies aside from the big corporations.

The idea for microcomputers began to take root among computer enthusiasts in Silicon Valley. Several people were building personal computers using parts such as the first chips manufactured by Intel.

During this time, the founders of Apple, Steve Jobs, and Steve Wozniak, first met through a mutual friend, Bill Fernandez, in 1971. They began their first business partnership later that year when Wozniak, who had experience in electronics, started to build his original invention called the “blue boxes.”

These boxes made it possible for people to make free long-distance phone calls. Jobs convinced Wozniak to sell some two hundred blue boxes for $150 each, and they split the profits. Wozniak was also working on several other inventions, one of them being a video terminal that he could use to log on to minicomputers.

1975: The first commercial, personal computer

In 1975, the Altair 8800 became the first computer to achieve commercial success. It, however, required the user to assemble the different components, so it had no real appeal to the average person. It mostly captured the hearts of electronic hobbyists and computer geeks who would have the know-how. 

At the time, Wozniak could not afford to buy the microcomputer CPUs that were on the market. Instead, he decided to learn as much as he could, designing computers on paper. This paid off tremendously, and by 1975, Jobs and Wozniak had withdrawn from Reed College and UC Berkeley, respectively.

They started attending different meetings and conferences to gain more knowledge about the computer industry. One specific meeting they went to at the Homebrew Computer Club inspired Wozniak to build a microprocessor into his video terminal and have a complete computer.

1976: Apple Computer Inc. was born

In April, along with Ronald Wayne (who worked with Jobs at Atari), Jobs and Wozniak formed Apple Computer. Wayne designed the first company’s logo and prepared the first partnership agreement with a 10% stake. However, just twelve days later, he relinquished his stake to avoid any potential financial risk. 

Wozniak finished working on his hand-built personal computer kit that was named the Apple I.  It was a circuit board that lacked basic features like a keyboard, monitor, and case. Jobs had to sell his Volkswagen Type 2 minibus for a few hundred dollars. Wozniak sold his HP-65 programmable calculator for $500 to raise money to pay for the parts.

They used Job’s parent’s garage in Los Angeles, California, as their office and factory. The first public launch of the Apple I was at the Homebrew Computer Club. The computer received a warm reception convincing the pair to go commercial.

Wozniak offered the design to Hewlett-Packard (HP), where he worked at the time, but they turned him down. So he decided to sell the Apple I for a little more than the cost of the parts. All he wanted was to recover the money they had put into making the computer.

Partnership with Byte Shop

Jobs, on the other hand, had bigger plans. He approached a local computer store called The Byte Shop to sell them 50 units of the Apple I. It was a considerable risk for the shop for several reasons. First, there was not enough Apple I to fulfill the order, and Apple Computer Inc. didn’t have the money to produce them.

Atari, where Jobs worked, required cash for the components it sold him, and a bank he had approached for a loan had turned him down. While Job’s friend’s father had offered to loan him $5,000, it wasn’t going to be enough. 

Fortunately, Paul Terrell,  Byte Shop’s owner, decided to grant Apple the $500/unit purchase deal anyway. Jobs hoped that Wozniak could produce enough working computers to settle the bill from the proceeds (they were selling the Apple I for $666.66).

They roped in family and friends at a kitchen table to help solder parts they had bought from Cramer Electronics (a national electronic parts distributor). Once the computers had been tested, Jobs drove them over to Byte Shop. All in all, 200 Apple I units are sold.

1977-1978: Apple’s First Investor & the Apple II

On January 3, Apple Computer Inc. was incorporated. Wozniak designed the Apple II, an upgraded personal computer intended for mass-market production. Meanwhile, Jobs and Wozniak meet Mike Markkula, who invests $250,000 in the company.

Markkula was pivotal in securing credit and additional venture capital for Apple. He also recruits Michael Scott, who acted as Apple’s first CEO.

Wozniak and Jobs wanted to create a computer that would fit into the average person’s everyday life. Thus the Apple II was released in June of that year at a retail price of $1,298. The Apple II had a completely redesigned TV interface, with a simple text display and graphics.

Other competitors & Partnerships

However, it wasn’t the only personal computer of its kind on the market. Its rivals, the Commodore PET 2001 and the Tandy TRS-80 were launched at the same time. All three machines were designed to make personal computers as straightforward as possible.

Users didn’t need to have the computer skills required to start using one. However, the Apple II had something different; a color video connection and presentable packaging. The Apple II had no visible boards and wires. Additionally, Apple partnered with programmers Dan Bricklin and Bob Frankston, and the Apple II became the official carrier of the new VisiCalc spreadsheet program in 1978.

VisiCalc opened the way for Apple to enter the business market. Moreover, the fact that the Apple II was starting to have corporate clients attracted more software and hardware developers like Microsoft to the machine. In fact, Apple’s home user customer segment grew because of the Apple II’s compatibility with Microsoft Office’s basic program.

The value proposition of the Apple II was its flawless design and high performance. It’s no wonder that the product exploded in popularity. By the end of the year, Apple had made $750,000 in revenue.

1980: The Third Generation Computer & Going Public

After riding off the success of the Apple II for two years, Apple announced the arrival of the Apple III in May of 1980 during the National Computer Conference (NCC) in Anaheim, California.

Apple rented Disneyland for a day and commissioned bands to play in the Apple III’s honor. This third-generation PC was meant to solidify Apple’s hold in the business environment. Despite the success of the Apple II, IBM was still dominating the corporate computing market.

The Apple III was released in November at a retail price ranging from $4,340 to $7,800. While it was a relatively conservative design for computers of the era, it had some fantastic features that corporations enjoyed. For example, it had a typewriter-style upper and lower case keyboard and an 80 column display.

The following month in December, Apple went public. Selling 4.6 million shares at $22 per share.

Apple Business Model Canvas: The Early Days

At this point, Apple’s Business Model Canvas looked like this:

1981-1990: Product Failures & Fierce Competition

1981-1982: competition from the ibm pc & failure of the apple iii.

By August, Apple was among the largest microcomputer companies in the industry. It was slowly overtaking giants like IBM and revenue in the first half of the year had already exceeded 1980’s $118 million.

In fact, the lack of production capacity was constraining growth. The pairing of the Apple II and VisiCalc ensured that businesses kept purchasing Apple’s PCs. When IBM discovered that all its corporate customers wanted VisiCalc, the computer giant quickly launched its own personal computer in August 1981.

However, Apple had many advantages over IBM PC. Firstly, Apple established a strong network of dealers in the US who provided them with parts for their hardware. Apple also had partnerships with hundreds of independent software developers and had an established international distribution network. Additionally, the Apple II had more than 250,000 customers.

The IBM PC had none of that. Fortunately for IBM, the failure of the Apple III would prove to be its saving grace. The Apple III had significant flaws and was prone to overheat, glitches, and minimal software. By 1982 Apple had to recall 14,000 Apple III computers, and Apple’s reputation for producing flawless computers tanked. It was a significant blow.

1983: The Apple Lisa

By 1983, Apple was losing ground to IBM. Revenue from the Apple II was dwindling, and Apple hadn’t released a successful product since 1977. Jobs had to act fast if Apple was to compete with the expanding personal computer market.

To gain a competitive advantage, Apple decided to move away from the text-based format that PCs were coming in. Jobs discovered a new technology by a company called Xerox that developed a demo PC with a graphic user interface and a mouse. He convinced Xerox to grant Apple’s Engineer access to the technology. In exchange, Xerox bought 100,000 Apple shares at a discounted price of $10 each.

The Apple Lisa was launched in January 1983. It was a high-end business machine that was targeted at business users. It retailed for $10,000, but unfortunately, it was a commercial failure. It had a lackluster software library and an unreliable floppy disk.

There were simply better and cheaper computers on the market, and the Apple Lisa failed to sell.

Problems with Apple Leadership Begins

Jobs had gotten so involved in the development of the Lisa that he had started bypassing the management structure of the company. This caused significant problems for him when the Apple Lisa failed to take off.

Michael Scott, the then CEO, and president and Mark Markkula created a new corporate structure that sidelined Jobs and stripped him of any responsibility for research and development within Apple. Looking for a new project, Jobs turned his sites to the Apple Macintosh, which had been in development for a couple of years.    

1984: The Iconic Macintosh

Apple needed another hit to guarantee its future and target the lower end of the market as the Lisa. The Apple III had failed to make waves in the high-end market. This hit came in the form of the Macintosh. It combined the low production cost of the Apple II with the Apple Lisa’s features.

Before the launch of the Macintosh, Apple decided to increase its marketing budget. All the previous launches had been somewhat reserved. This time they wanted to create a buzz because they believed that much in their product.

Apple put a call to its ad agency and tasked them with securing sixty seconds during the third quarter break of Super Bowl XVIII. The production budget of this new campaign stood somewhere between $350,000 and $900,000. The commercial featured a sportswoman in red shorts in a sea of pale men, all dressed in grey clothing sitting down on benches in front of a big screen.

The woman is holding a sledgehammer and is being chased by police-like figures as she runs towards the screen. The commercial ends with the woman throwing the hammer at the screen and a voice-over announcing:

On January 24th, Apple Computer will introduce Macintosh.

And you’ll see why 1984 won’t be like “1984”.

It was an indirect reference to how IBM was dominating the PC industry and how Apple was trying to break the monopoly. The “1984” phrase was taken from a novel by George Orwell where the earth is controlled by “Big Brother”.

The ad was a hit and the Mac went on sale in January 1984 at a retail price of $2,495. While it wasn’t cheap, it was good value for money, and sales skyrocketed.

The Mac fails to make significant traction.

Although the Macintosh was received well, it still needed a killer application, as VisiCalc had been on the Apple II.

The PageMaker was a desktop publishing computer program that helped users create ads, brochures, newsletters, and books was Mac’s golden ticket. It was backed up by the revolutionary Apple LaserWriter printer. It would establish the Mac as a contender in the low-end market. The LaserWriter was the first mass-market laser printer, even though it wasn’t the first laser printer.

Unfortunately, the Mac was three times more expensive than the average PC. Moreover, the new graphic user interface required much more effort for existing software developers to make new programs compatible with the Mac. This resulted in very limited programs and applications for the Mac.

Apple was also against IBM in the home customer segment. IBM had a stronghold in the corporate world. Many customers who used IBM computers at work simply decided to go with what they knew when they bought their first home computers.

The IBM PC came with a range of software and included the hugely popular VisiCalc spreadsheet program and the EasyWriter word processor.  Within a few months, sales began to dwindle as consumers were not interested in an expensive PC that was not compatible with anything. This led to conflict within Apple’s leadership.

1985: Jobs is forced out of Apple

Although Steve Jobs was Apple’s most public face and the company’s co-founder, he wasn’t its CEO. Apple’s leadership has changed hands a few times since 1976. In the mid-80s, John Sculley was hired by Apple to run the company.

At first, Sculley and Jobs got along; however, Jobs had the vision to create a computer for the mass market. He wanted a computer that would cost $1000 or less; unfortunately, production costs had doubled the price.

Jobs and the development team had pegged the Mac at $1,995. Still, Sculley, who needed to ensure profitability, insisted on hiking the price by an additional $500. This caused a lot of friction between the two men.

The tanking sales of the Mac increased the tension, and the board urged Sculley to reign in Jobs. They felt that he was taking unnecessary risks, putting the company at risk financially.  Again Jobs was stripped of his duties with the Macintosh team and given a ceremonial role as Chairman. Jobs was not happy about this demotion at all and decided to launch a coup.

Unfortunately, Sculley got wind of it, and Jobs was forced to resign. He took with him a few Apple employees and went on to start a company called Next.

1986-1997: The decline of Apple

1986-1992: an identity crisis.

The departure of Steve Jobs signaled the beginning of an immense identity crisis for Apple. Up until now, Jobs had driven the company’s direction towards one single goal; making low and high-end PCs at a consumer-friendly price.

Sculley and the board wanted to go in a different direction. They wanted Apple to be a premium computer company that sold cutting-edge products. Since Apple already appealed to creative business users, they figured that the most logical step was to target the high-end market. They settled for more powerful and thus more expensive Macs.

Apple raised the price of the Mac at a time when competing PCs from Microsoft and IBM were becoming cheaper. The strategy was to create demand by selling fewer units at a higher price, resulting in higher profits. Boy, were they wrong! Despite the unique user interface that created brand loyalty, Apple’s stock prices and market share continued to decline.

They introduced several products such as the Centris PC line, a low-end Quadra offering, and the ill-fated Performa PC line. These products were sold with many configurations and software bundles to avoid competing with consumer outlets such as Sears, Price Club, and Wal-Mart. They were the primary dealers for these models.

1993-1997: The Dark Years

In 1993 Michael Spindler replaced Sculley as CEO. Spindler completely restructured Apple, laying off 15% of the workforce and splitting up the product development team according to the market. He wanted to focus on building as many cheap products as possible.

Not only did this weaken the product development team, but it also caused a lot of confusion. The product line was so complicated that no one could identify which product was best for which market.

Apple experimented with several failed consumer targeted products that included digital cameras, portable CD audio players, speakers, video consoles, and TV appliances. Unfortunately, none of these products helped, the company continued to experience challenges. None of its products were seeing the success that the Apple II had enjoyed. There were simply better alternatives on the market.

1994: Microsoft: The New Giant in Town

At this time, Microsoft began making significant strides in the market. Its Windows software was proving to be highly reliable, and it came at an affordable price. Microsoft continued to gain market share.

To address Microsoft’s growing dominance, Apple joined forces with IBM and Motorola in the AIM alliance. The aim was to create a new computing platform that would use IBM and Motorola’s hardware and Apple’s software. The AIM alliance hoped that the new platform would replace the PC and thus counter Microsoft.

The same year, Apple launched the Power Macintosh, the first of Apple’s computers to use Motorola’s PowerPC processor. The following year Apple decided to license the Mac Operating System and Macintosh ROMs to 3rd party manufacturers to produce Macintosh “clones.” They wanted to achieve deeper market penetration and earn extra revenue for the company. However, this backfired as the clones were competing with Apple’s Macs and reduced Apple’s own sales.

1996-1997: Steve Jobs Saves the Day

In 1996, Spindler was replaced by Gill Amelio. Amelio implemented more layoffs and cost-cutting measures to try and keep the company afloat. It was clear that Apple was dying a slow and painful death. They just could not keep up with how quickly the tech industry was changing.

While Apple had experienced initial success with the Apple II, once competitors developed similar and more stable technologies, Apple could do little to stop the inevitable. It had lost the element of surprise.

Realizing this, Amelio tried to improve Mac OS, but nothing was working. In a last-ditch effort, he chose to approach Steve Job’s NeXT and its operating system. He also decided to bring Steve Jobs back to Apple as an advisor.

In July 1997, Gil Amelio was fired, and Jobs became the interim CEO. He began restructuring the company’s product line, creating a dream team to drive up innovation. They decided to launch just four computers, the iMac, Power Mac, iBook, and the PowerBook.

Furthermore, he partnered with Microsoft agreeing to release new versions of Microsoft Office for the Macintosh. In exchange, Microsoft made a $150 million investment in non-voting Apple stock.

In November, Apple introduced the Apple Online Store launching a new build-to-order manufacturing strategy. They closed off the year, having sold 80,000 units of their four products, creating a constant income stream for the cash-strapped company.

Apple Business Model Canvas: The Dark Days

1998-Present: Return to Profitability

1998-2007: moving beyond the pc & key acquisitions.

In August 1998, Apple introduced a new all-in-one computer similar to the Macintosh 128K: the iMac. The iMac had modern technology and a unique design. Within 5 months, it had sold almost 800,000 units.

Apple made several vital acquisitions throughout this period:

• In 1998, Apple bought Macromedia’s Final Cut software. This was a move into the digital video editing market.
• In 2001 they bought Spruce Technologies, a DVD authoring company that had developed a software called DVDMaestro. This software was a direct competitor to Apple’s own newly released DVD Studio Pro 1.0. Apple wanted to incorporate the features of DVDMaestro into its new DVD Studio Pro 2.0 software.
• In 2002, Apple purchased Nothing Real’s Shake app. It was a high-end video compositing software application that enabled Apple to integrate it into their computers for better video quality.

2001-2003: First Official Store, iPod, and iTunes

In 2001 after years of development, Apple released the Mac OS X aimed at the average consumer and the professionals. In May that same year, Apple opened the first official Apple Retail Stores in Virginia and California.

A few months later, in October, Apple announced the iPod portable digital audio player and started selling it on November 10. The iPod was a phenomenal success. In 2003, Apple’s iTunes Store was launched, offering online music downloads for $0.99 a song. Users could integrate iTunes and the iPod.

Soon Apple became the market leader in online music services.

2007-2011: The iPhone, App Store, iPad & iCloud

In June, Apple introduced what was to be their best-selling product yet, the iPhone. During the Macworld Expo, Jobs announced that Apple Computer Inc. would now be called Apple Inc. The reason was that the company was now focusing on mobile electronic devices and not just PCs.

This led to the development of the iPhone, iPod Touch, and the iPad. Apple became the first to achieve a mass-market adoption of the touch screen user interface with pre-programmed gestures. Additionally, Apple expanded its business model and introduced its App Store to purchase third-party software applications.

The iCloud was launched in 2011. The online storage and syncing service for music, photos, files, and software solidified Apple’s Ecosystem. Users of Apple products could seamlessly move from one device to another and still have access to their data. This signaled the beginning of the Apple we know today.

Unfortunately that same year, Steve Jobs passed away and with his passing Apple began to lose some of its competitive edge and innovation.     

Apple Business Model Canvas: The Profitable Days

The Apple we see today is a far cry from the highly rebellious, non-conformists start-up it was under the guidance of Jobs. Jobs’ greatest skill was relentless internal competition. While Tim Cook (who now leads Apple) has focused on making the company profitable, it’s clear that he follows a more conservative approach.

The danger for Apple now is that 90% of its business is now centered on one product; the iPhone. Apple has fallen into the classic monopoly trap where because of its dominance they’ve stopped innovating and are now focusing instead on protecting their core business.

History is clear, monopoly is never a good place to get comfortable. Just look at Microsoft, it was late to the internet, late to the cloud, and late to portable music players, all because it was trying to protect its Windows software.

Time will tell whether Apple will survive a post-mobile phone era with this strategy.

• https://finance.yahoo.com/quote/AAPL/
• https://www.marketing91.com/business-model-of-apple/
• https://www.bailiwickexpress.com/jsy/life/technology/apple-timeline-key-milestones-companys-40-year-history/
• https://www.nydailynews.com/news/national/apple-turns-40-timeline-tech-giant-evolution-article-1.2581048
• https://www.macworld.co.uk/feature/history-of-apple-steve-jobs-mac-3606104/
• https://www.investopedia.com/articles/personal-finance/042815/story-behind-apples-success.asp
• https://www.nytimes.com/2015/01/30/business/how-and-why-apple-overtook-microsoft.html
• https://www.investopedia.com/articles/markets/111015/apple-vs-microsoft-vs-google-how-their-business-models-compare.asp
• https://medium.com/age-of-awareness/what-made-apples-1984-advert-so-successful-dc5af1b073f3
• Tags: apple , business model canvas , cloud services , ibm , itunes , microsoft , steve jobs , wal-mart

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Apple Business Strategy: a brief overview

Apple business strategy can be classified as product differentiation. Specifically, the multinational technology company differentiates its products and services on the basis of simple, yet attractive design and advanced functionality.

Apple business strategy consists of the following four elements:

1. Focus on design and functionality of products . According to its business strategy, Apple has adapted advanced features and capabilities of its products and services as bases of its competitive advantage. The list of innovations introduced by Apple include, but not limited to the introduction of iPad, the first device of its kind that stored thousands of songs with a simple shuffle capabilities through songs, development Macintosh, the first computer to use a graphical user interface and the launch of iMac that “ripped up the computer design rule book, doing away with dull beige boxes and instead replacing them with fun, translucent machines in shades such as “Bondi Blue” that hinted at the aesthetic Apple would become so well-known for.” [1]

The first company ever to be valued at $1 trillion systematically improves features and capabilities of its products, setting new standards for the industry at the same time. Take photos for example. Apple single-handedly advanced global photography industry with a range of innovations illustrated in table below.

Photography innovations by Apple Inc.

First mover advantage is another element of Apple competitive advantage. It has to be stated that Apple competitive advantage may be challenging to be sustained for long-term perspective. Specifically, the management may fail in terms of ensuring the addition of innovative features and capabilities in new versions of its products, thus compromising its competitive advantage.

2. Enhancing customer experience. Focusing on customer experience is one of the pillars of Apple business strategy. It is not rare for Apple fans to create videos of themselves unwrapping their new Apple products and uploading the video on YouTube. This happens because the company has succeeded in creating a customer experience that extends beyond the purchasing process of a product.

For example, starting using any Apple product is extremely easy. Customers open the box, plug to electricity, turn on and start using products. There is no need to install or download anything. More than 518 Apple Stores in 25 countries and regions, where people can try products and ask helpful staff questions effectively also contribute to customer experience.

3. Strengthening Apple ecosystem . Apple business strategy can be characterised as vertical integration in a way that the company has advanced expertise in software, hardware, and services at the same time. Apple’s vertical integration is one of the major factors that set it apart from the competition. The company has been benefiting from its vertical integration immensely. Specifically, an important source of Apple competitive advantage relates to its ecosystem, which is enabled by such integration.

Apple devices and software sync easily and work well with each other. Applications work on multiple Apple devices at the same time and there is no much difference in user interfaces. However the same items do not pair with products of other companies, thus creating the likes of a closed ecosystem. Apple’s ecosystem creates switching costs for its customers to the competition. The ecosystem also provides the opportunities to leverage relationships with existing customers to offer other products and services.

4. Decreasing dependence of the business on the sales of iPhones . Apple business strategy is transitioning from relying on iPhone sales to prioritizing its services business and other divisions. John Giannandrea has been promoted to a machine learning and AI role, retail chief Angela Ahrendts left the company and Bill Stasior has been removed as a head of Siri. [2] These high-profile changes that took place within the timeframe of less than three months are clear indication of company’s focus on services and other business divisions in order decrease dependence of the business on the sales of iPhones.

It is important to note that these and other efforts are showing positive results. Specifically, Apple’s services business division generated record revenues of USD 53,77 billion in 2020, an increase of 16% compared to the previous year. [3]

Apple Inc. Report contains the above analysis of Apple business strategy. The report illustrates the application of the major analytical strategic frameworks in business studies such as SWOT, PESTEL, Porter’s Five Forces, Value Chain analysis, Ansoff Matrix and McKinsey 7S Model on Apple. Moreover, the report contains analyses of Apple leadership, organizational structure and organizational culture. The report also comprises discussions of Apple marketing strategy, ecosystem and addresses issues of corporate social responsibility.

[1] Apple’s Greatest Innovations (2016) The Telegraph, Available at: http://www.telegraph.co.uk/technology/picture-galleries/6099399/Top-10-Apple-innovations.html

[2] Broussard, M. (2019) Apple’s Recent Leadership Changes Suggest Transition From iPhone Reliance to Focus on Services, Mac Rumors, Available at: https://www.macrumors.com/2019/02/18/apples-leadership-changes-services/

[3] Annual Report (2020) Apple Inc.

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Apple’s Global Strategy: Simplicity, Innovation, and Adaptability

• January 19, 2024
• LinkedIn 29

Table of Contents

Delving into apple’s global strategy, apple’s core values and the simplicity mantra, apple’s global branding strategy, apple’s global marketing strategy, case studies, apple’s global tax strategy.

• The Cornerstones of Apple’s Global Strateg

In the ever-evolving landscape of technology, Apple stands as a beacon of innovation and design, captivating consumers worldwide with its sleek products and user-centric approach. With a global presence spanning over 150 countries and an estimated $383.29 billion in revenue in 2023, according to Statista , Apple’s success is a testament to its astute global strategy , a harmonious blend of differentiation, adaptability, and unwavering commitment to quality.

Apple’s global strategy is rooted in the concept of “differentiation,” a strategic approach that sets it apart from its competitors. By consistently pushing the boundaries of innovation, Apple has carved a niche for itself, offering products that are not only technologically advanced but also aesthetically pleasing and user-friendly . This differentiation has allowed Apple to capture a loyal customer base and establish a strong brand identity across the globe .

Apple’s global strategy has evolved over time, adapting to the changing dynamics of the international market. In its early days, the company focused heavily on innovation, relentlessly pursuing cutting-edge technologies and groundbreaking designs. However, as the company matured, it recognized the importance of customer experience and began placing a greater emphasis on this aspect . Today, Apple’s global strategy is a seamless blend of innovation and customer focus, ensuring that its products and services align with the needs and preferences of consumers worldwide.

At the heart of Apple’s global success lies a set of core values that permeate every aspect of the company’s operations , from product design to marketing campaigns. These values, deeply rooted in the company’s identity, guide Apple’s approach to innovation, customer experience, and global expansion.

• Accessibility: Apple strives to make its products and services accessible to everyone, regardless of their physical or cognitive abilities. This commitment is evident in features like VoiceOver , which provides spoken feedback for visually impaired users, and AssistiveTouch , which allows users with limited mobility to control devices with gestures.
• Educational Support: Apple recognizes the transformative power of technology in education and actively supports initiatives that promote digital literacy and learning. The company’s initiatives include Apple Teacher certification programs, curriculum resources, and educational apps that enhance teaching and learning.
• Carbon Neutrality: Apple is committed to reducing its environmental impact and is working towards becoming carbon neutral by 2030 . The company has implemented numerous initiatives to minimize its carbon footprint, including transitioning to renewable energy sources, designing energy-efficient products, and recycling materials.
• Inclusive Work Environment: Apple is committed to creating a diverse and inclusive workplace where everyone is valued and respected. The company has implemented policies and programs that promote diversity hiring, provide equal opportunities for advancement, and foster a culture of inclusion.
• Privacy: Apple is a staunch advocate for user privacy and believes that individuals should have control over their personal data. The company has implemented robust privacy protections in its products and services, including encryption, data minimization, and transparency.
• Equity and Justice: Apple is committed to promoting equity and justice in its operations and throughout the world. The company supports initiatives that address social and economic inequalities, promotes human rights, and advocates for environmental sustainability.
• Supplier Responsibility: Apple is committed to ensuring that its suppliers adhere to high ethical standards and treat their workers with respect. The company has established stringent supplier codes of conduct and conducts regular audits to monitor compliance.

These core values, collectively, form the foundation of Apple’s global strategy. They guide the company’s product design, marketing campaigns, and customer service interactions , ensuring that Apple delivers products and experiences that are not only technologically advanced but also aligned with its values of simplicity, accessibility, and inclusivity.

Simplicity is a cornerstone of Apple’s design philosophy, evident in the clean aesthetics, intuitive interfaces, and user-friendly features of its products. This emphasis on simplicity has resonated with consumers worldwide , making Apple products accessible to a broad audience and fostering a loyal customer base.

By upholding its core values and embracing simplicity, Apple has not only achieved global success but also established itself as a role model for other companies seeking to build a sustainable and ethical business model.

Apple’s global branding strategy is a delicate balance of standardization and adaptation, ensuring that the company maintains a consistent brand identity while also resonating with consumers in diverse cultures and markets. On the one hand, Apple strives to project a unified brand image, conveying its core values of innovation, simplicity, and elegance across all its products, marketing campaigns, and customer interactions. This standardization helps reinforce Apple’s reputation for quality and consistency, fostering brand loyalty and recognition worldwide.

On the other hand, Apple recognizes the need to adapt its branding to local markets and cultures. This adaptability is evident in the company’s product offerings, marketing messages, and customer support. For instance, Apple has developed localized versions of its products with features and specifications tailored to specific regions . Additionally, the company’s marketing campaigns often incorporate cultural nuances and local references to connect with consumers on a deeper level.

Apple’s ability to balance standardization and adaptation has been a key factor in its global success. By maintaining a consistent brand identity, the company has built a strong foundation of brand recognition and loyalty . However, by adapting to local markets, Apple has been able to cater to the needs and preferences of consumers in different parts of the world, expanding its reach and deepening its customer base.

Examples of Apple’s Standardization

• Unifying Brand Elements: Apple employs a consistent design language across its products, including clean aesthetics, minimalist interfaces, and sleek silhouettes. This consistent visual language helps establish a cohesive brand identity.
• Global Marketing Campaigns: Apple’s marketing campaigns often feature universal themes of innovation, creativity, and personal empowerment, appealing to a global audience.
• Seamless Customer Experience: Apple’s customer support is available in multiple languages, and the company’s online store can be accessed in over 40 countries, ensuring a consistent experience for customers worldwide.

Examples of Apple’s Adaptation

• Localization of Products: Apple offers localized versions of its products, such as the iPhone and iPad, with features and specifications tailored to specific regions. For instance, the iPhone SE 2020 is optimized for Indian consumers with support for two SIM cards and regional cellular bands.
• Culturally Sensitive Marketing: Apple’s marketing campaigns often incorporate cultural nuances and local references to connect with consumers on a deeper level. For example, the company’s “ Shot on iPhone ” campaign features images captured by photographers from around the world, showcasing the diversity of visual storytelling.
• Localized Customer Support: Apple provides customer support in multiple languages and offers localized resources, such as online FAQs and tutorials, tailored to specific regions. The company also partners with local businesses to offer personalized support services.

Apple’s success in balancing standardization and adaptation is a testament to its understanding of the complexities of global branding. By striking this delicate balance, the company has been able to maintain a strong brand identity while also resonating with consumers in diverse markets , solidifying its position as one of the world’s most recognizable brands.

Apple’s global marketing strategy is a multifaceted approach that revolves around four key pillars: wide acceptance, brand value, competitive advantage, and low imitation . These pillars are intertwined, working together to propel Apple’s success in the global marketplace.

Wide Acceptance

Apple’s products have achieved widespread acceptance worldwide, attracting a loyal customer base across diverse demographics and regions . This widespread appeal is attributed to several factors, including:

• Innovative Designs: Apple consistently pushes the boundaries of design, creating products that are both aesthetically pleasing and user-friendly. The company’s sleek, minimalist aesthetic has become synonymous with Apple’s brand identity.
• User-Friendly Interfaces: Apple’s products are renowned for their intuitive interfaces, making them easy to navigate and use for people of all technical backgrounds.
• Effective Marketing Campaigns: Apple’s marketing campaigns are known for their creativity and emotional appeal, resonating with consumers on a personal level. The company often uses storytelling and cultural references to connect with diverse audiences.

Brand Value

Apple has built a strong brand value over the years, characterized by perceptions of quality, innovation, and premium craftsmanship . This brand value has been instrumental in attracting consumers and fostering brand loyalty.

• Reputation for Quality: Apple is consistently rated among the most reliable and durable consumer electronics brands. This reputation for quality has earned the company a loyal following among consumers who value long-lasting products.
• Innovation: Apple is renowned for its pioneering spirit, consistently introducing innovative products that redefine the technological landscape. This focus on innovation has helped maintain Apple’s cutting-edge reputation and attract early adopters.
• Premium Branding: Apple’s products are positioned in the premium segment of the market , commanding higher prices than its competitors. This premium positioning contributes to the company’s brand value and reinforces its image as a luxury brand.

Competitive Advantage

Apple maintains a competitive advantage in the global market through a combination of factors, including:

• Strategic Product Differentiation: Apple differentiates its products from competitors through unique features, design elements, and user experiences. This differentiation strategy has helped the company carve out a distinct niche in the market.
• Focus on Customer Experience: Apple prioritizes customer satisfaction, creating a seamless and personalized experience for its users. This focus on customer experience has helped foster brand loyalty and attract new customers.
• Global Retail Presence: Apple has a strong global retail presence, with over 500 stores in 23 countries, as per Statista . This extensive retail network provides consumers with easy access to Apple products and services.

Low Imitation

Despite facing intense competition from numerous technology giants, Apple has been able to maintain a relatively low level of imitation . This is due to several factors, including:

• Continuous Innovation: Apple’s relentless pursuit of innovation makes it difficult for competitors to replicate its products and services.
• Strengthened Intellectual Property Protection: Apple has a robust intellectual property portfolio, providing legal protection for its innovative designs and technologies.
• Brand Loyalty: Apple’s loyal customer base is less susceptible to imitation, as they are often willing to pay a premium for Apple products due to their brand loyalty and trust in the company.

Apple’s successful global marketing strategy is a testament to its ability to balance innovation, brand value, competitive advantage, and low imitation. By consistently delivering high-quality products, cultivating a strong brand reputation, and prioritizing customer experience, Apple has cemented its position as one of the world’s leading technology companies .

Apple’s remarkable global success is evident in its ability to penetrate and dominate markets as diverse as China and India. These two countries represent two of the world’s most populous and rapidly growing economies, offering significant opportunities for technology companies. Apple’s success in these markets is a testament to its ability to adapt its global strategy to local conditions and preferences .

China has become Apple’s second-largest market , with over 190 million active iPhones in use as of 2023 ( Statista , 2023). Apple’s success in China can be attributed to several factors, including:

• Pricing Strategy: Apple has adopted a tiered pricing strategy in China, offering a wider range of products at lower price points to cater to a broader range of consumers.
• Distribution Channels: Apple has established a strong network of authorized resellers and retail stores in China, making its products readily available to consumers across the country.
• Partnerships with Local Businesses: Apple has partnered with Chinese telecommunications companies, e-commerce platforms, and content providers to expand its reach and customer base.
• Localization: Apple has made sure to localize its products , marketing campaigns, and customer support for the Chinese market, ensuring that they resonate with local consumers.

Despite facing challenges such as piracy and counterfeiting, Apple has successfully established itself as a premium brand in China . The company’s commitment to innovation, design, and customer experience has resonated with Chinese consumers, who are increasingly embracing technology.

India is another key market for Apple, with a growing middle class and increasing smartphone penetration. Apple’s strategy in India has focused on tailoring its products and services to the specific needs and preferences of Indian consumers .

• Price Sensitivity: Apple has introduced more affordable iPhone models in India, such as the iPhone SE, to attract price-conscious consumers.
• Online Sales: Apple has heavily invested in its online presence in India, making it easier for consumers to purchase its products online.
• Partnerships with Local Businesses: Apple has partnered with Indian e-commerce platforms, mobile carriers, and banks to expand its distribution reach and payment options.
• Localization: Apple’s localization strategy for the Indian market has included the adaptation of its products, marketing campaigns, and customer support, including the development of Hindi-language versions of its software.

Apple’s success in India has been gradual but steady. The company has faced challenges such as competition from local smartphone brands and a lack of brand recognition in rural areas. However, Apple’s commitment to innovation and adaptation has helped it gain traction in this emerging market .

Apple’s global success has been accompanied by scrutiny over its tax practices, particularly its use of a subsidiary company in Ireland to minimize its global tax liability. This strategy, known as “ Double Irish with a Dutch Sandwich ,” has allowed Apple to shift profits offshore, effectively reducing its tax payments in the United States and other countries .

While Apple has defended its tax strategy, arguing that it complies with all applicable laws, it has faced criticism from governments, tax experts, and consumer advocacy groups . Critics argue that Apple’s tax practices amount to corporate tax avoidance, depriving governments of revenue that could be used for public services.

Advantages of Apple’s Tax Strategy

Apple’s tax strategy has several potential advantages for the company, including:

• Reduced Tax Burden: By shifting profits offshore, Apple can effectively reduce its tax payments, which can boost its profitability and financial returns to shareholders.
• Increased Competitiveness: Lowering tax costs can give Apple a competitive advantage over other companies, allowing it to invest more in research and development, marketing, and product development.
• Enhanced Shareholder Value: By reducing its tax burden and increasing profitability, Apple can improve its financial performance and boost shareholder value.

Disadvantages of Apple’s Tax Strategy

Apple’s tax strategy has also been criticized for several potential disadvantages, including:

• Public Image Concerns: Apple’s tax practices have tarnished its public image, raising concerns about corporate social responsibility and ethical behavior.
• Legal Challenges: Governments and tax authorities around the world have been investigating Apple’s tax strategy, and the company faces potential legal challenges that could lead to fines and penalties.
• Political Fallout: Apple’s tax practices have created political tensions, with some countries considering imposing stricter tax laws to prevent multinational corporations from shifting profits offshore.

A Balancing Act

Apple’s global tax strategy has been a source of controversy, highlighting the delicate balance between corporate profitability and societal responsibility . While the company may benefit financially from its tax practices, it also faces reputational risks and potential legal repercussions. Apple must carefully navigate this complex landscape to maintain its global success while addressing concerns about its ethical conduct.

The Cornerstones of Apple’s Global Strategy

Apple’s journey to becoming one of the world’s most recognizable and successful companies is a testament to its ability to balance simplicity, innovation, and adaptability. From its early days as a niche computer manufacturer to its current status as a global technology powerhouse, Apple has consistently demonstrated its knack for understanding and meeting the evolving needs of consumers worldwide .

Apple’s core values, particularly its emphasis on simplicity, have permeated every aspect of its business. The company’s products are renowned for their user-friendly interfaces and intuitive designs , making them accessible to a wide range of users, regardless of their technical expertise. This commitment to simplicity extends to Apple’s marketing campaigns, which often use storytelling and emotional appeals to resonate with consumers on a personal level.

Apple’s unwavering focus on innovation has been another driving force behind its global success. The company has consistently pushed the boundaries of technology, introducing groundbreaking products that have transformed the way people interact with the digital world . From the revolutionary iPhone to the sleek AirPods, Apple has consistently redefined the standards for innovation in the technology industry.

Alongside innovation and simplicity, Apple has also demonstrated remarkable adaptability in its global expansion . The company has successfully tailored its products, marketing strategies, and customer support to suit the unique needs and preferences of different cultures. This adaptability has been crucial in Apple’s ability to penetrate and dominate markets as diverse as China and India, where local competitors pose significant challenges.

Apple’s approach to globalization is not without its critics. The company’s tax strategy, which has been the subject of intense scrutiny, has raised concerns about corporate social responsibility and ethical behavior. As Apple continues to expand its global footprint, it will need to address these concerns and demonstrate its commitment to operating responsibly and ethically in all the markets it serves.

Looking to the future, Apple faces a number of challenges and opportunities. The company will need to continue to innovate and adapt to the ever-changing technological landscape . It will also need to navigate the complexities of global markets, ensuring that its products and services remain relevant and appealing to consumers worldwide.

Apple’s journey to global success is a compelling case study in how a company can build a strong brand and establish a lasting presence in the international arena. By embracing simplicity, innovation, and adaptability, Apple has demonstrated that it has the vision and resilience to continue to thrive in an increasingly competitive and interconnected world .

As Apple embarks on the next chapter of its global journey, it remains to be seen how the company will navigate the evolving landscape of technology, consumerism, and globalization. However, one thing is certain: Apple’s commitment to innovation and its ability to understand the needs of consumers worldwide will continue to be key drivers of its success in the years to come.

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Apple’s Product Development Process – Inside the World’s Greatest Design Organization

Apple’s Product Development Process may be one of the most successful design processes ever implemented. With a valuation that exceeds $2 trillion, there’s a lot that designers can learn from Apple and introduce into their own design environments.

Apple is a notoriously secretive business. In Steve Jobs’ time at the company it would have been near impossible to find out about the internal workings of the business. This isn’t surprising when a business’s market advantage is its design approach. It’s worth keeping it under wraps.

However, Adam Lashinsky, the author of Inside Apple: How America’s most Admired and Secretive Company Really Works has been given a look at the process. While there are still aspects of the way that Apple works that are shrouded in secrecy , you can get a good idea of the overall high level process through this book. And in this article, we’ve distilled the key takeaways from the book.

Apple’s Product Development Process

Design is at the forefront.

Author/Copyright holder: GiuliaPiccoliTrapletti . Copyright terms and licence: CC BY-SA 4.0

How do you give designers the freedom to design and ensure that the products they produce fulfil their visions? Well at Apple they put design at the forefront.

Jony Ive, the British designer who was the Chief Design Officer (CDO) at Apple, and his design team do not report to finance, manufacturing, etc. They are given free rein to set their own budgets and are given the ability to ignore manufacturing practicalities.

At the heart of the design department is the Industrial Design Studio where only a select few Apple employees have access.

It’s a simple concept that allows for the creation of incredible products.

Design Teams are Separated From the Larger Company

When a design team works on a new product they are then cut off from the rest of the Apple business. They may even implement physical controls to prevent the team from interacting with other Apple employees during the day.

The team is also removed from the traditional Apple hierarchy at this point. They create their own reporting structures and report directly to the executive team. This leaves them free to focus on design rather than day-to-day minutiae.

A Documented Development Process

Author/Copyright holder: Ed Uthman . Copyright terms and licence: CC BY-SA 2.5

The Apple New Product Process (ANPP) information is given to a product development team when they begin work. It details every stage of the design process and it goes into elaborate detail. The idea is to define what stages the product creation team will go through, who will be responsible for delivering the final product, who works on which stage and where they work and also when the product is expected to be completed.

Monday is Review Day

The Apple Executive Team holds a regular Monday meeting to examine every single product that the company has in design phase at that point in time. This isn’t as daunting as it may sound; one of the keys to Apple’s success is that they don’t work on hundreds of new products at once. Instead, resources are concentrated on a handful of projects that are expected to bear fruit rather than being diluted over many lesser projects.

If a product cannot be reviewed at one meeting – it’s automatically at the top of the agenda for the next meeting. In practice, this should mean that every single Apple product is inspected by the executive team at least once a fortnight. This keeps delays in decision making to a minimum and enables the company to be very lean with its approach to design.

The EPM and the GSM

The EPM is the engineering program manager and the GSM is the global supply manager. Together they are known within Apple as the “EPM Mafia”. It’s their job to take over when a product moves from design to production.

As you might expect, these people are usually going to be found in China, Apple does very little of its own manufacturing. Instead it relies on contract outsourcing companies like Foxconn (one of the largest employers in the world) to do this for them. This removes much of the headache of manufacturing for Apple whilst keeping production costs as low as possible. There is a significant market advantage to this approach and its one that many other electronics manufacturers are emulating now.

The EPM Mafia may sound scary (and they probably are to the suppliers) but their real job is simply to ensure that products are delivered to market in the right way, at the right time and at the right cost. They may disagree at points but their guiding principle is to act in the interests of the product at all times.

Iteration Is Key

Like any good design company , the design process at Apple is not over when manufacturing begins. In fact, Apple iterates the design throughout manufacturing. The product is built, it’s tested and reviewed, then the design team improves on it and it’s built all over again. These cycles take 4-6 weeks at a time and may be run many times over a product’s development lifecycle.

Author/Copyright holder: CyberDoc LLC . Copyright terms and licence: Fair Use.

When production is complete the EPM will take possession of some or all of the test devices and then take them back to Apple’s headquarters at Cupertino.

This is a very costly approach but it’s one of the reasons that Apple has a reputation for quality. The more you invest in design, the more likely you are to build incredible market changing products. It’s the process that the iPod, the iPhone and the iPad went through.

The Packaging Room

This is a very-high security area in Apple and it’s where prototypes are unboxed. As you might expect, the security is to prevent leaks to the outside world. If you ever do see a leaked prototype for an Apple product – it won’t have come from here. It’s more likely to have vanished from a production line in China.

A Launch Plan

Author/Copyright holder: Manutaus. Copyright terms and licence: CC BY-SA 3.0

The final step in Apple’s product development is product launch. When the product is considered to be as good as it can be – it enters an action plan known as “the Rules of the Road”. This explains all the responsibilities and actions that must be taken prior to a commercial launch of the product.

It must be a nerve-wracking experience to be privy to the “Rules of the Road” because if you lose it or leak it… you’re immediately fired. This is explained in the document itself.

The Take Away

Apple’s process is complex, expensive and demanding. If you compare it to most business theories – it shouldn’t work. However, to date it has out-performed even the wildest of expectations.

You may not be able to emulate all of their processes within the space of your own workplace but there’s no reason that you can’t develop written processes for design phases and launch phases of your projects, for example. And, of course , there is no reason at all for you in not iterating!

The more you know about successful design processes, the more you can take some of the best aspects of them and use them to enhance your own products.

Find out all the details of the design process in: Inside Apple: How America's Most Admired--and Secretive--Company Really Works by Adam Lashinsky ISBN 97814555512157, Published January 25, 2012

And take an insight into Apple’s greatest designer’s mind in : JonyIve: The Genius Behind Apple's Greatest Products by Leander Kahney ISBN 159184617X, Published November 14, 2013

Hero Image: Author/Copyright holder: Sreejithk2000. Copyright terms and licence: Public Domain.

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September 13, 2018 By Denis Oakley

What is the Apple Business Model Canvas?

What is Apple’s business model? In this video, I describe how Apple makes money by working through all 9 components of Apple’s business model canvas.

Apple creates consumer electronic products that have amazing design and usability and bundles them with software products to lock consumers in. Because they are so attractive they deliver great status and productivity to users leading to a premium price.

Customer Segments in the Apple Business Model

Apple’s business model targets mass-market consumers. That is hundreds of millions of consumers. They may be middle class and fairly affluent. It may be marketed as a premium product but it is a mass-market electronic good.

There are smaller customer segments that it focuses on for non-handheld products. Designers and entrepreneurs both use and love Mac products but in 2019 this is a relatively small proportion of Apple’s revenue.

In the tables below Apple’s customer segments are broken down across a number of different measures, geographic, demographic, behavioural and psychographic

Apple’s Customer Segmentation – Geographic

Apple’s Customer Segmentation – Demographic

Apple’s Customer Segmentation – Behavioural

Apple’s Customer Segmentation – Psychographic

Value Proposition

The Apple Value Proposition revolves around three core concepts.

Think Different

• Tech That Works

Your Privacy is Safe with Us

“Think different” sets Apple apart. In the years since the original advert, shown below, it has developed into a philosophy that spawned the design style

The value proposition is that Apple is for the people who Think Differently , who see the world differently, who change it. Creatives, Entrepreneurs and Hipsters.

Their Apple devices are a way of letting them make their statement about who they are and what they are doing. The design, which many people say is important, is an outward and visible sign of the value proposition. Not the value proposition itself

Tech that Works

Living in a Microsoft environment before I got my first iPhone I remember how difficult it was to get things to work. It took me a day once to install a printer for an insurance company. I spent hours trying to get music onto my Creative music player. Technology promised lots of gains, but you had to put the hours in to get the technology to work to get those gains.

What Apple brought, brings, to the table, is technology that is seamless and integrated. Play around with Google for a while and you quickly discover that their products aren’t really integrated. Google Plus is dead but I still had to go somewhere that looked a lot like Google Plus to change my YouTube channel name today. Microsoft Windows has a UI that is half sleek and modern , and then suddenly jumps you back 20 years due to legacy coding issues.

The Apple business model is in large part the experience of using Apple products. Google’s is to consume advertising – which is why the experience isn’t nearly so good.

This is a major differentiation between it and it’s Android competitors. Apple controls the software, the hardware and the content. This means that it is able to finely tune the experience that users have.

In contrast, Samsung and other users of Android OS have to face the fact that they control the hardware, have some control over the version of Android that they use and have little control over the apps on the Play Store. This results in a far less joined up, or easy, experience for users.

Because Apple is the only company able to offer this it is major support for the premium that it is able to charge.

Apple sells Software and Hardware. It doesn’t sell advertising or make a market in data. It also builds all of its products into a single consistent eco-system or walled garden.

Once you are in you are safe. You stay safe. Apple doesn’t take your data. Apple makes sure that no one else takes your data unless you explicitly give them permission to do so.

This creates a core value proposition that separates them from Google. Google’s whole business model is based on taking your data and selling it to other people.

We can break these down into a number of smaller value propositions which Apple delivers to customers through its hardware and software products

Sense of Achievement

For many, there is a sense of achievement in getting an Apple Phone. When billions have a $50 smartphone being able to afford a phone that can cost over $1,000 is important. This is especially so for those who started off with an Android phone and were able to, through hard work or endeavour, to be able to achieve one. It’s a visible mark of success and is treated as such.

Self Expression

The self-expression component of Apple’s value proposition is an identification of the user with Apple’s brand values. Having an Apple product makes you hip, cool, an entrepreneur, creative, individual, someone who thinks different, successful. Any of the or all of these may apply to particular individuals. Invariably, individuals use Apple products to show to the world that these are important truths about them

Speed of Service

Speed of service is an important value proposition for Apple’s customers. This is not really about how fast your new Apple phone is delivered. It’s about how fast you can set it up and start using it. It’s about how quickly you can learn to use it. It’s about how smoothly the product has an impact on what is important in your life and how it makes you more efficient and effective.

“I waste less time trying to do stuff now that I have an Apple”

The efficiency component is deeply related to Apple’s speed of service value proposition. It’s not about the tech. Apple is notoriously behind many other hardware manufacturers in its tech.

It’s about how the tech interacts with your life. Is there friction between the tech and you? If there is then the technology is not really delivering the value that the hardware claims. This is a big part of ‘design’. It’s about ergonomics and usability. It’s stripping waste, or muda , out of every customer interaction. Those milliseconds and seconds stack up to a far more efficient customer experience

Advanced Features & Capabilities

This is all the cool tech stuff. Retina displays. Multiple Cameras. Fingerprint sensors. They are important but other manufacturers have them – and often better

So despite Apple entering the smartphone and tablet categories first, it is happier to be a fast second. The value proposition is a hygiene factor. Not a critical success factor.

Finally recreation. People play lots of games on Apple devices. They watch lots of videos. But the consumers who buy them are predominantly wealth successful business people.

Recreation on Apple devices is a much lower importance value proposition for many of them. For example, I have Netflix on my iPhone, no games and almost every app contributes to me doing my job better.

Apple Products

Apple has four groups of products

Operating Systems

Accessories.

• iPhone smartphone
• iPad tablet computer
• Mac personal computer
• iPod portable media player
• Apple Music
• Airpods – wireless headphones
• Apple Watch – Smartwatch
• AppleTV – digital Media player
• HomePod – smart speaker

Distribution Channels

Apple uses a number of powerful promotional channels in the Apple business model, several of which have now been copied so much that they no longer differentiate Apple. These include the packaging of Apple products and the genius bar layout of apple stores.

These include:

• Apple Stores
• Apple’s websites
• Third Party Stores
• Telecom Companies

Apple Stores make a statement in a way that their competitors do not

Apple also controls the distribution of its products through its own website

Third-party stores have their brand and image tightly controlled so that they support the Apple brand.

Finally, Apple phones and tablets are sold through telecoms companies – bundled with the SIM and data required to make the most out of the device.

Marketing Channels

Apple generates an immense amount of PR and this is supported by strong brand awareness campaigns ‘shot with iPhone’ is a classic and long-running campaign.

Just as importantly – more so even – is the word of mouth. Because of the importance of self-expression and achievement in Apple’s value proposition users need and want to talk about their ownership of an Apple product.

If no one knows that they own an Apple device then they don’t get as much benefit from it. So they talk and often evangelise.

The final component of Apple’s word of mouth is the importance of groups.

“People like us do things like this” Seth Godin – Marketing Guru

Creatives, entrepreneurs, hipsters and business people have all adopted Apple products as part of their definition of group membership.

You can’t really be a ‘proper’ designer unless you use an Apple product. This isn’t true, but to members of a group, and especially to aspiring members of a group it can seem so.

Customer Relationships

With over 1.6 billion devices sold Apple is a mass-market consumer company by any definition.

Apple has a number of channels where they manage customer relationships

Telephone Customer Support

Chat and Online Customer Support

These are all great and are typically much better than competitors. Staff are onshore, rather than offshore, and as can be seen often match the demographics of target customers. Compare this to a lowest cost outsourced customer service department at Verizon.

However what makes the biggest difference in Apple’s customer relationships are:

• Evangelists

The evangelists have been mentioned in the section on Marketing Channels. They provide a similar service in the customer relationships – advocating for Apple, as unpaid salespeople. They will often also provide a front line level of support for other users.

Design is critical. Because Apple is a product-led company – they focus on building great products and expect success and scale to be based on the product – a great deal of the need for customer support is designed out.

In many ways, customer support, an important part of customer relationships in the business model canvas, is a failure of product design. Consumers contact support when something goes wrong. If you can design out failures…. then you need far less customer support.

Revenue in Apple’s Business Model

Apple’s business model is hugely cash generative. It makes more profits and has a stronger cash flow than Amazon, Google and Facebook combined.

Apple’s $60B of TTM operating income was nearly 50% more than the combined operating income of Alphabet ($24B), Facebook ($15), and Amazon ($3B). Above Avalon

So what does Apple sell? How does Apple monetise its business model?

• Apple Watch
• iTunes Store,
• Garage Band

Almost all of those are large enough to be a large company in their own right.

Key Resources in the Apple Business Model

The most important key resources in the Apple Business model are:

• Product First Design Philosophy

Supply Chain

• Walled Garden

Apple’s Product First Design Philosophy

If you look at Apple’s products you will find that they are often not better, on a technical sense

If you look at Apple’s products you will find that they are often not better, on a technical sense than its competitors. They are also priced similarly to the competitors’ premium products.

Apple, despite this, manages to extract far more profit from its products and services than its competitors.

This is a key feature of the Apple business model. When you charge the same price for a similar service and make a lot more money from it something must be going on under the hood.

The difference is Apple’s Product First Design philosophy.

This starts from the premise that they are going to make the best possible product for their market segment. Unlike competitors, they don’t initially think about scale and volume.

The focus is on how to make a product that will delight and inspire its users.

Those are the design constraints. Most other companies use budget and manufacturability as design constraints.

For them, a functional product is good enough. Customers understand that it is a functional product and treat it as one. In contrast, Apple’s focus is on creating a product that excels.

This is captured in their core values

• We believe that we’re on the face of the Earth to make great products.
• We believe in the simple, not the complex.
• We believe that we need to own and control the primary technologies behind the products we make.
• We participate only in markets where we can make a significant contribution.
• We believe in saying no to thousands of projects so that we can really focus on the few that are truly important and meaningful to us.
• We believe in deep collaboration and cross-pollination of our groups, which allow us to innovate in a way that others cannot.
• We don’t settle for anything less than excellence in every group in the company, and we have the self-honesty to admit when we’re wrong and the courage to change.

 The result of this is that Apple’s business model creates products that work well. I mean well on a very deep level. They are hard to design, easy to manufacture and easy to use.

There is a significant amount of risk in doing this. If their idea of a product is wrong, if it doesn’t gel with the times, then they could lose a lot of money.

It’s a philosophy of perfection and, after their market entries, means that they will rarely be at the forefront of technology.

Design perfection means that they take longer to bring products to market. If they didn’t then they would lose the ease of use and many of the subtle components of the value proposition that makes the Apple business model so successful.

This key resource is composed of hugely talented people and a number of research and development labs working to bring products and services to fruition.

The second key resource that Apple has is its supply chain. In some ways, this is a misnomer as Apple, as part of the design of its business model, has positioned itself as a designer of products

It has decided to buy the manufacturing of its products as a key resource delivered by key partners (ie Foxconn) rather than make them itself.

In contrast, many computer hardware manufacturers are, well, computer hardware manufacturers.

They have to spend a great deal of cash building and running factories, and then even more time focusing on the management of their supply chain to make sure that it works efficiently.

Imagine we have a management team that has a limited amount of time and attention.

It can decide to spend some of its time on manufacturing and some on design. That’s what most companies do. They produce good products as a result.

What Apple does in its business model is to focus ‘all’ its time on design. It then gets Foxconn to spend ‘all’ its time on manufacturing and supply chain.

As a result, it gets far better outcomes in both design and manufacturing than other computer hardware manufacturers do.

This also nicely ties in with the design focus of Apple’s business model.

Much of the visible design is focused on the consumer experience. A great deal of the invisible design is focused on the manufacturability of the product.

Because Apple gives another party critical control over a key part of its business model there is a huge risk of things going wrong.

The manufacturing design, done in Cupertino, work hard to design out as many faults as possible in the product. They are easier to manufacture as a result, and this, in turn, reduces the number of issues of product failure and reduces the need for customer support.

The Walled Garden

The final resource that the Apple Business Model has is the walled garden. This could also be called the Apple Ecosystem

Everything works smoothly together.

This delivers a key part of Apple’s value proposition. It’s easy, unlike Windows or Android

If we look back into history Microsoft Windows created a platform that worked with any piece of hardware and allowed almost any software to run on it.

The operating system was the middleware that allowed everything to happen. The problem was that hardware designers and software developers cared only about their own products and didn’t often follow standards.

That meant that Windows was often a frustrating product to use as software and devices didn’t work, couldn’t be installed easily or crashed with the famous blue screen of death

Apple in an attempt to differentiate itself from Microsoft kept tight control of the ecosystem – perhaps because early users were creatives and not good at IT (Slanderous assertion I know) – and ensured it was user-friendly in a way that Microsoft did not.

This was rolled over into the Apple Store when the first iPods and iPhones were released. It then became an increasing part of the Apple experience. Everything played nicely together.

That then provided additional benefits.

Because Apple made its money from hardware sales it has no need to mine customer data and sell it to other people.

Apple can give users privacy. It also provides them with safety and security from many of the threats on the internet.

Finally, the more Apple products you use the greater the synergy you have. With each product, you add you get fewer irritations and hitches in your electronic life.

Key Activities in the Apple Business Model

Apple has two key activities in its business model. The first is the design. The second is branding.

We’ve spoken a great deal about design already, so I won’t go into too much detail there.

Why did I talk about branding being a key activity rather than marketing?

Apple is fundamentally about associating their products and services with emotional feelings in its users.

Apple wants its users to feel successful. Apple wants them to feel that they have achieved. It wants them to feel different. It wants them to be special

This is not something that can be done with traditional feature-based product marketing.

Branding thus connects people who want to be a ‘Mac’ and creates the need to buy the product in them.

It is all about who they can be and the lifestyle that they will become part of if only they buy into the Apple lifestyle.

Branding also works well because Apple controls a big chunk of its direct distribution channels – the Apple Stores.

Key Partnerships in Apple’s Business Model

There are two groups of key partners in the Apple business model.

These are the:

• Contract manufacturers
• Telecoms companies

Telecoms Companies in the Apple Business Model

Whilst Apple does have 500 shops worldwide this is a small number compared to the shops of other mobile phone companies, telecoms companies and resellers.

Expanding this network to enable everyone who wants to buy a phone would be cost prohibitive.

Apple’s key sales channel is selling phones through telecoms companies. They bundle the Apple iPhone with a subscription and let consumers pay for the phone over a couple of years. They provide the consumer financing that lets many people afford an expensive phone.

Apple outsource sales to the phone companies and uses their distribution networks and million of direct customers to achieve scale far faster than it could through its own store and website distribution service.

Contract Manufactures

Apple made the decision to buy manufacturing services rather than making its own. It derisked this by focusing on its design and quality control. As a result it freed up a huge amount of cash on its balance sheet.

It thought, correctly, that by using a manufacturer that it had a deep long term relationship with that it could get lower prices, a lower cost per unit, than if it ran factories itself.

Costs in the Apple Business Model

Apple employs some of the most expensive designers in the world in one of the most expensive locations in the world.

Equally, it spends a great deal on branding and on sourcing high-quality components.

Does it make sense then to say that Apple is a cost-driven company?

I think it does.

The expensive designers mean that Apple’s products hit the value proposition sweet spot demanded by their customers. As a result, Apple makes more $ per designer’s time than competitors.

The expensive branding means that it has to spend far less on tactical marketing and sales.

The expensive components deliver a superior user experience that generates intense loyalty and significantly reduces the retention cost and churn of apple users.

As a result, this focus on spending a lot on very valuable activities means that the actual cost of making Apple products is remarkably low and this is the fundamental reason for Apple’s incredible profitability.

Cost is a strategic goal, not a tactical one in the Apple business model

That’s the secret of Apple’s business model!

• Marketing Experimentation
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• Value Proposition Design Questionaire
• Should a Brand be Desirable?

About Denis Oakley

Explorer | Trail Runner | Mountain Lover

'Big' companies are civilisation. I stay in the wilderness guiding entrepreneurs and startups on their journey to becoming 'Big'.

Then I head back to the frontier

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Outcome : More Traction, Bigger Rounds, Better Products

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The vice president’s remarks lasted roughly 35 minutes on the final night of the convention in Chicago.

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This is a transcript of Vice President Kamala Harris’s speech on Thursday night in which she formally accepted the Democratic Party’s nomination for the presidency.

OK, let’s get to business. Let’s get to business. All right.

So, let me start by thanking my most incredible husband, Doug. For being an incredible partner to me, an incredible father to Cole and Ella, and happy anniversary, Dougie. I love you so very much.

To our president, Joe Biden. When I think about the path that we have traveled together, Joe, I am filled with gratitude. Your record is extraordinary, as history will show, and your character is inspiring. And Doug and I love you and Jill, and are forever thankful to you both.

And to Coach Tim Walz. You are going to be an incredible vice president. And to the delegates and everyone who has put your faith in our campaign, your support is humbling.

So, America, the path that led me here in recent weeks was, no doubt, unexpected. But I’m no stranger to unlikely journeys. So, my mother, our mother, Shyamala Harris, had one of her own. And I miss her every day, and especially right now. And I know she’s looking down smiling. I know that.

So, my mother was 19 when she crossed the world alone, traveling from India to California with an unshakable dream to be the scientist who would cure breast cancer.

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Spreadsheet for Business Plan

Hi, I am writing a Business Plan and was wondering if anyone knows of a "Numbers" spreadsheet that will assist me.

I am looking to plan revenue, expences and finally I hope the result is the cash flow required to operate the business.

Can anyone recommend a resource like that Please?

MacBook Air, Mac OS X (10.7), Numbers

Posted on Aug 2, 2011 6:36 PM

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Aug 7, 2011 7:24 AM in response to awssie

As far as I know, Numbers is supposed to be able to import XL documents.

So, import the template and check if everything is correctly treated.

A five years old child is able to do that, aren't you ?

Yvan KOENIG (VALLAURIS, France) dimanche 7 août 2011 16:23:47

iMac 21”5, i7, 2.8 GHz, 4 Gbytes, 1 Tbytes, mac OS X 10.6.8 and 10.7.0

My iDisk is : < http://public.me.com/koenigyvan >

Please : Search for questions similar to your own before submitting them to the community

To be the AW6 successor, iWork MUST integrate a TRUE DB, not a list organizer !

Oct 23, 2011 7:53 AM in response to awssie

Hi. ION FreshStart has a Business Plan Financial Workshop in iWork Numbers . It has everything - all of the financial statements you'll need for your business plan. All formulas and calculations are pre-programmed. http://www.ionfreshstart.com

Aug 7, 2011 6:55 AM in response to awssie

I have since found a site that has Business Plan Templates. These are in Word and Excel formats. Can be used with Pages and Numbers.

Aug 7, 2011 6:59 AM in response to awssie

Sorry, here is the link:

http://www.score.org/resources/business-plans-financial-statements-template-gall ery