apple a new way of life

8/17/2019 apple a new way of life

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“Design is not just

what it looks like

and feels like.

Design is how it works.”

-STEVE JOBS

CBF ASSIGNMENT 2

ALEN JOSE THOMAS

BD/14/930

FC-IV


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This assignment will analyze and discuss the most important innovation of Apple on the

basis of

product oriented

market oriented

rm oriented

conumer oriented

Innovation, development, and growth strategies are about producing a transformation and

adjustments on how societies live, work, and play. Trying to achieve that, Apple works its

innovative strategy in a mix of product, solution, technology, business model, and rebrand-

ing brand management strategy. Apple innovation and continual improvements drives its vi-

sion by internal conviction about the outside world environment. Its conviction is concernedabout shifting how users interact around music and entertainment. Apple develops a notion

of changing consumers’ landscape. The information to follow will contains a brief explana-

tion of Apple target, company sources for growth, Sec lings from company, the new product

development, the industry gap, and tactic used to develop a successful innovative strategy.

INTRODUCTION


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Apple overview Apple Inc. is an American multinational technology company headquartered in Cuper-

tino, California, that designs, develops, and sells consumer electronics, computer soft-

ware, and online services. Its hardware products include the iPhone smartphone, theiPad tablet computer, the Mac personal computer, the iPod portable media player, and

the Apple Watch smartwatch. Apple’s consumer software includes the OS X and iOS

operating systems, the iTunes media player, the Safari web browser, and the iLife and

iWork creativity and productivity suites. Its online services include the iTunes Store, the

iOS App Store and Mac App Store, and iCloud.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976,

to develop and sell personal computers. It was incorporated as Apple Computer, Inc. on

January 3, 1977, and was renamed as Apple Inc. on January 9, 2007, to reect its shifted

focus toward consumer electronics. Apple (NASDAQ: AAPL) joined the Dow Jones Indus-

trial Average on March 19, 2015.

Apple is the world’s largest information technology company by revenue, the world’s

largest technology company by total assets, and the world’s second-largest mobile

phone manufacturer. In November 2014, in addition to being the largest publicly traded

corporation in the world by market capitalization, Apple became the rst U.S. company

to be valued at over US$700 billion. The company employs 115,000 permanent full-time

employees as of July 2015 and maintains 475 retail stores in seventeen countries as of

March 2016. It operates the online Apple Store and iTunes Store, the latter of which is

the world’s largest music retailer. There are over one billion actively used Apple prod-

ucts worldwide as of March 2016.

Apple’s worldwide annual revenue totaled $233 billion for the scal year ending in Sep-

tember 2015. To put this into perspective this revenue generation accounts for approxi-

mately 1.25% of the total United States GDP. The company enjoys a high level of brand

loyalty and, according to the 2014 edition of the Interbrand Best Global Brands report,

is the world’s most valuable brand with a valuation of $118.9 billion. By the end of 2014,

the corporation continued to receive signicant criticism regarding the labor practices

of its contractors and its environmental and business practices, including the origins of

source materials.


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Apple innovation strategyTarget

Initially, Apple focused on the American market because of an aging population. How-ever, 50% of Apple customers are under the age of 30. As an observer from the sidelines,

it would appear that Apple targeted teens and adults in their twenties. The product lines

offered by Apple are an assortment of technology for different ages, genders, and working

classes. Apple’s visionary team share the belief that “If you make something great, then

everybody will want to use it.” .

Consumers falling in the age group 15-49 account for 94% of sales. Males are purchasing

74% of iPhones and college graduates account for 58%. The mean household income for

iPhone purchases is $75,600. IPod targets include ages 12-17 and 35-44 with male purchases

slightly higher than females. The household income for iPod purchasing starts at $15,000.

High school students are a target market; however, because iPod purchases are from differ-

ent demographic groups, it is hard to narrow any comparative data.

The iPad and Mac are two other product lines offered by Apple that have attracted different

demographic groups. The Mac has appealed to businessmen, so Apple has targeted end

user professional markets and college students because these groups of people are updat-

ed with technology innovation. Mac promotions are aimed to attract the 45+ age bracket

due to more disposable income. High pricing has Apple targeting college graduates be-

cause they will receive higher incomes.

Sources Of Growth

Apple grows from within rather than by acquisition or merger. “Apple has embraced this

strategy over its existence, averaging only about 1 acquisition per year during the past 25

years.” . Microsoft, Google, and Cisco acquired 30 to 45 companies in the past four years.

Apple’s internal growth executed revenue. “Apple only spent $4.6 billion on R&D over the

past four years, while revenues soared from $25 billion to $43 billion.” . Innovation is in the

minds of Apple’s employees, and the company is strategically choosing which ideas to in-

vest in.


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New Product Development

Apple has established a solid product development plan and after an extensive reviewit appears Apple is working on several new products for future growth. According to the

Macworld/iWorld source for 2012 the Apple brand is considering rebranding the iOS side

of the product. This process shows the entire ecosystem of Apple products and services.

Apple’s purpose of rebranding the iOS side of the business is to change the perception of

the product without changing the business. Consumers are partial to seeing what they like

therefore visual changes may be the answer to Apple iOS segment changes. Apple is also

venturing into music experiences that feature performances and sessions from musicians

who use Apple technology and lm events which highlight Apple’s role in television and

movies. Apple is extremely successful even without rebranding iOS segment. The focus is

on retaining heavy OSX presence with organizers introducing new packages to attract OSXdevelopers.

The Gap

Apple is continually improving on the products released. Apple focuses on making customer

center products to meet every age group. Every new production delivers customer-centered

product. New products released result in software updates to improve customer experiences

within months of initial release. An example of this process developed the iPhone 4S. The

latest release of the iPhone 4S delivered a new technology. With this new phone the cus-

tomer speaks to it treating it more like a personal assistant instead of just a regular smartphone requiring manual programming. Apple focuses in the areas they are most familiar

with to continue improvement and explore ways of making those items more customer-cen-

tered.

Creative Tactics

Apple has accomplished what many businesses only dream of, branding. Apple’s iPod is the

brand of mp3 players competing with well-known companies such as Sony and RCA. When

customers think of mp3 players or digital media distribution, iPod, and iTunes are rst on

the brain. The comparable mix of pricing strategy, variety of accessories and continuousinnovation has contributed to Apple’s success as an industry leader.


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Creative Tactics

Apple has accomplished what many businesses only dream of, branding. Apple’s iPod is thebrand of mp3 players competing with well-known companies such as Sony and RCA. When

customers think of mp3 players or digital media distribution, iPod, and iTunes are rst on

the brain. The comparable mix of pricing strategy, variety of accessories and continuous

innovation has contributed to Apple’s success as an industry leader.


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market innovationapple

Mouse

The computer mouse represents yet another technological innovation that, while not in-

vented by Apple, was popularized by an Apple product. During the mid-1980s, back when

most people were still interfacing with computers via a command line, Apple helped change

the world of computing when it introduced the original Mac. Anchored by an intuitive and

revolutionary graphical user interface, Apple popularized the idea of using a mouse as the

primary way to interact with computers.Funny thing is, the history of the modern mouse actually dates all the way back to the 1960s

when it was invented Douglas Engelbart of the Stanford Research Institute. What’s more,

the Mac wasn’t even the rst computer to ship with a mouse; that honor goes to a 1981

Multitouch

Multitouch technology is an obvious place to start. Now contrary to what Steve Jobs may

have said when introducing the original iPhone back in 2007, multitouch was not some mag-

ical technology invented deep within Apple’s R&D labs.

What’s more, Apple’s own take on multitouch was the result of its 2005 acquisition of a Dela-

ware-based company called FingerWorks.

Nonetheless, it’s indisputable that the original iPhone brought multitouch technology into

the mainstream. Following the iPhone, it wasn’t long before we began seeing multitouch

smartphones from a variety of different handset manufacturers. Multitouch may not have

been a feature developed at Apple, but the company’s implementation of the technology on

the iPhone is what truly made it a household name and, more importantly, accessible to the

masses.


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Xerox Star workstation. Still, it wasn’t until Apple released the Mac in 1984 that the mouse

truly began to seep into the mainstream.

Laptop trackpads

These days, trackpads come standard on about any laptop you’re likely to come across.

But for those old enough to remember the early 90s, that wasn’t always the case. Way back

when, many computer notebooks used a rather bulky trackball as the primary input mech-

anism. However, once Apple released its series of PowerBook 500 notebooks in May of 1994,

computing would never be the same. Apple’s PowerBook 500 notebooks did away with the

trackball and replaced it with a much more elegant and efcient two-inch square trackpad.


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Fingerprint Sensors

While ngerprint sensor technology was hardly new in 2012, the vast majority of consumers

had never used it until Apple rolled out TouchID with the iPhone 5s. Shortly thereafter, other

handset manufacturers began clamoring to implement biometric technologies on their own

devices.

Consider this: in one fell swoop, Apple managed to normalize a technology that, for most

people at the time, was nothing more than a cool technology relegated to TV shows or mov-

ies. And in what may be something of a theme here, it’s worth noting, again, that Apple

didn’t magically come up with TouchID all on its own. Rather, the company brought the req-

uisite technology behind TouchID in-house when it acquired the mobile security rm Authen-

tec back in 2012.

So while Apple didn’t invent ngerprint recognition technology, its extremely intuitive imple-

mentation of the technology nally brought it into the mainstream.

Graphical User Interface

The history of the GUI famously stretches back to the Xerox Palo Alto Research Center in the

1970s. And there it remained until Apple introduced the Lisa computer in 1983, soon followed

by the Mac in 1984. Though the technology had existed for years previous, it wasn’t until

Apple incorporated it into its own computers that the concept of a GUI truly began to gained

traction amongst mainstream computer users.

While some naysayers still like to claim that Apple “stole” the GUI concept from Xerox, there

are a few key facts worth mentioning. First, Apple licensed many GUI features from Xerox.

Second, some of the more common GUI concepts that are now considered standard and

essential aspects of the computing experience were developed by Apple engineers during

the course of developing the original Mac. Regardless, it’s hard to deny that the GUI on the

original Mac represents a monumental and landmark moment in the history of computing.


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USB

The original Bondi Blue iMac was a bold and ambitious product, and arguably a risky com-puter for Apple to release. Not only did the iMac come without a oppy disk drive, it was

also the rst computer to ship exclusively with USB ports. In the process, Apple did away

with legacy ports like ADB and SCSI and ultimately helped transform USB into a defacto

peripheral standard across the industry.

Though some PCs at the time did come with USB ports, the iMac, again, was the rst com-

puter to completely break backwards compatibility with older ports. As a result, the iMac

helped kickstart more widespread adoption of USB. Once the iMac began shipping, the

number of USB compatible peripherals began to increase dramatically. And in turn, the

number of computers that supported USB began to grow as well.

3D Touch

3D Touch is one of the more interesting and exciting smartphone advancements we’ve seen

in quite some time. But as a new technology, we won’t fully be able to appreciate how 3D

Touch will change the way we use our devices until more developers begin taking advan-

tage of it. Still, some of the ways that iOS apps already utilize 3D Touch serve to show how

much potential the technology has. It therefore stands to reason that it won’t be long before

pressure sensitive multitouch displays become the norm on smartphones across the board.

Not too surprisingly, we’ve already seen reports that 3D Touch-esque technology is likely to

hit agship Android devices sometime in 2016.


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ipod evolution

iPod

The classic iPod, released in October 2001, gave you

the option of 5GB or 10GB capacity and had a 10-hour

battery life.

Second Generation iPod

The second generation iPod released eight months later

and upped the ante by increasing capacity to 10 or 20GB

hard drives, but didn’t give any improvements to the life of

the battery.

Third Generation iPod

The all-touch interface of the third generation iPod

arrived in April 2003 with a number of hard drive

sizes (10, 20, 30, and 40GB), but came with a much

smaller and lighter body. This was the rst iPod

to sport a dock connector, but poor battery life ofeight hours really cut this model down to size.


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iPod Mini

Two versions of the iPod Mini were released in

January 2004 and February 2006. Both came in tiny,candy-colored 4 and 6GB storage models

iPod Shufe

The tiny iPod Shufe made its debut in January

2005 with a new way to listen to an iPod — totally

at random. The shufe comes without a screen, so

you are at the mercy of your library, and can only

skip forward and backward with the controls on

your headphones or the touch controls on the body.

The Shufe came with 512MB or 1GB ash memory

storage.

iPod Nano

Replacing the Mini in September 2005, the Nanohad a small, compact body (in white or black op-

tions), and came with a ash memory instead of

the previous hard drives, with up to 8GB of stor-

age.


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iPod Touch

The rst iPod with WiFi and a multitouch interface,the iPod Touch was released in September 2007

along with the iPhone. Allowing purchases of apps,

photo capabilities, and a 32GB memory make this

the best MP3 player to hit the market. Two more

re-releases in 2008 and 2009 bring Nike+ integra-

tion, a matte black color option, and a boost to

64GB of storage.

Fifth Generation iPod Touch

The newest iPod Touch shipped in Oct. 2012,

tricked our with iOS 6 and Siri functionality. But

even better than the latest and greatest operating

system were the four candy-colored hues to can

choose from, the larger 4-inch display, and the HD

ash camera!


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iphone evolution The iPhone – Released June 29, 2007

The original iPhone was a GSM phone that established the form-factor

that Apple has more or less stuck with over the years. The public was

so amazed by the device, some nicknamed it the “Jesus phone.” Apple

released the original iPhone in 4GB, 8GB and 16GB models.

iPhone 3G – Released July 11, 2008

With the second generation, Apple introduced

Assisted GPS and 3G connection. The biggest im-

provement was with an updated iOS, which includ-

ed Push email, turn-by-turn navigation and the App

store, which introduced third-party applications.

iPhone 4 – Released June 24, 2010

The iPhone 4 was the rst to feature the high-res-

olution “Retina display.” Apple also added a

front-facing camera for video calls, and upgraded

the rear-facing camera to 5 megapixels and 720p

video capture. Apple also introduced a new design,

replacing the rounded back panel with a at sur-

face, making the iPhone 4 the thinnest smartphone

in the world at the time. The iPhone 4 featured a

stainless-steel frame and the new A4 chip, which,

along with iOS 4, helped the iPhone with multitask-

ing functions.


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iPhone 4S – Released October 14, 2011

With the fth generation, Apple upgraded the cam-

era once again, this time with 8 megapixels and

1080p video recording. Apple also upgraded the

hardware to a dual-core A5 processor and intro-

duced Siri. The release of 4S brought along iCloud,

iMessage, Notication Center, Reminders and na-

tive integration with Twitter. The iPhone 4S was the

rst iPhone released after Jobs’ death.

iPhone 5 – Released September 21, 2012

The iPhone 5 featured a new dual-core A6 chip and

increased the size of the display up to four inches.

Apple also replaced the 30-pin connector it had

been using since before the original iPhone with a

new, all-digital “Lightning” connector. The iPhone

5 was also given an aluminum frame, making the

phone thinner and lighter than previous models.

The iPhone 5 was also the rst iPhone to feature

LTE support.

iPhone 5C and iPhone 5S – Released September 20, 2013

The seventh and most recent generation of the iPhone came in two different models. The

iPhone 5C is mostly the same as the iPhone 5, but has a new backside-illuminated FaceTime

camera and new body made out of polycarbonate.

The iPhone 5S maintained the same form-factor as the iPhone 5, but was given a new Touch-

ID home button with ngerprint recognition technology. Apple also updated the camera

with a larger aperture and dual-LED ash, and introduced the new A7 dual-core processor,

making the iPhone 5S the rst smartphone with a 64-bit processor. Apple also added the M7

processor into the iPhone to handle motion data.


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iPhone 6 September 19, 2014

The iPhone 6 and iPhone 6 Plus include a number of changes over their predecessor, includ-

ing models with larger 4.7 and 5.5 inches (120 and 140 mm) displays, a faster processor,

upgraded cameras, improved LTE and Wi-Fi connectivity and support for a near eld com-

munications-based mobile payments offering.Pre-orders of the iPhone 6 and iPhone 6 Plus

exceeded four million within its rst 24 hours of availability—an Apple record. More than ten

million iPhone 6 and iPhone 6 Plus devices were sold in the rst three days, another Apple

record.


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CONCLUSION“Apple enjoys enhanced performance by pursuing a deep customer–broad innovation as-

set-leveraging strategy in which it consistently provides new and unique products to an

entrenched group of existing customers by leveraging its broad technology portfolio” . By

incorporating consumers experiences into apple innovation strategy and plan the company

will achieve a successful edge.

apple a new way of life

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