AppleLessons from the past

Creative FounderFall 2016Alessandro Battisti

HISTORY

Steve Jobs & Steve Wozniak start Apple in a garage

Steve Jobs & Steve Wozniak start Apple in a garage

Jobs is ousted

Steve Jobs & Steve Wozniak start Apple in a garage

Jobs is ousted

Apple goes down the tubes

Steve Jobs & Steve Wozniak start Apple in a garage

Jobs is ousted

Apple goes down the tubes

Jobs comes back, bromance with Jony Ive

Steve Jobs & Steve Wozniak start Apple in a garage

Jobs is ousted

Apple goes down the tubes

Jobs comes back, bromance with Jony Ive

iPhone $$$

Steve Jobs & Steve Wozniak start Apple in a garage

Jobs is ousted

Apple goes down the tubes

Jobs comes back, bromance with Jony Ive

iPhone

…?

ARE THEY IN DECLINE?

Hardware Software Services

2016 second quarter, March 26, 2016. Apple posted quarterly revenue of $50.6 billion and quarterly net income of $10.5 billion

http://www.apple.com/pr/library/2016/04/26Apple-Reports-Second-Quarter-Results.html

Hardware

http://www.apple.com/pr/library/2016/04/26Apple-Reports-Second-Quarter-Results.html

iPhone = $33 billion in revenue

“Last quarter, iPhone sales were down 16 percent year-over-year.”

Tom Warren Journalist, The Verge

http://www.theverge.com/2016/7/26/12289832/apple-iphone-sales-q3-2016

Hardware | Industrial Design

Hardware | Industrial Design

“At heart, Apple is a hardware company, not a software company, not an internet company, and not a services company. Each of those product types optimizes around a certain culture.”

Hugh Dubberly formerly head of Creative services at Apple

“…the new iPhones include several new features, including water resistance and upgraded cameras, they look pretty much the same as the old ones. The new Apple Watch does too.

Farhad Manjoo Tech columnist, New York Times

http://www.nytimes.com/2016/09/08/technology/whats-really-missing-from-the-new-iphone-dazzle.html?_r=0

Hardware | Industrial Design

Hardware | Industrial Design

https://www.youtube.com/watch?v=IbWOQWw1wkM

Hardware | Industrial Design

No sustainable business model for iOS software.

Services | App Store

“Paid apps now make up a vanishingly small proportion of my income, and nearly all of my recent successes have come from free apps.”

David Smith iOS Developer

https://david-smith.org/blog/2016/09/05/evolving-business-app-store-business-models/

Services | App Store

David Smith | Proportion of revenue

in-app purchase

paid

ads

Software | Human Interface

“Apple is destroying design. Worse, it is revitalizing the old belief that design is only about making things look pretty.”

Don Norman director, Design Lab at UC San Diego

https://www.fastcodesign.com/3053406/how-apple-is-giving-design-a-bad-name

Software | Human Interface

Software | Human Interface

…ARE THEY IN DECLINE?

“We believe in a wireless future.”

Jony Ive Chief Design Officer, Apple