Unit 1 Case Analysis: Apple, Inc. , 2008 Background Apple Computer, Inc. was created by Steve Jobs and Steve Wozniak in April 1976. It started as a computer software and hardware manufacturer. Apple Computer, Inc. is famous for having one of the largest and most loyal customer bases that have helped to make concrete consistent growth for the company (Yoffie, Slind, 2008). In 2007 Apple Computer Inc. , became Apple Inc. to mirror its expansion into the consumer electronics market while still upholding its traditional focus on the personal computer. Apple Inc. as changed from being known as strictly a computer company into a diverse technology company that is known for its art, video, graphics, and always pushing the envelope as a content creator. CEO Steve Jobs is not only the company leader he is one of its major creators. Jobs latest creation is the iPhone. He refers to it as a magical device that will change the world (Boykin, Fiorini, Tanaka, & Webb, 2008). Present Day Apple, Inc. (21st Century) A fast-increasing portion of Apple’s hub operations involved non-Macintosh business areas that were less than a decade old (iPod, iTunes) or, indeed, less than a year old (Apple TV, iPhone).
These product lines set Apple on a path to becoming a qualified digital convergence company (Yoffie, Slind, 2008). Apple introduced the iPod, a portable digital music player based on the MP3 compression standard, in November 2001. Thanks to its sleek design, it soon became a symbol of the Digital Age (Yoffie, Slind, 2008). Initially, the iPod could only be compatible with Macs. But in August 2002 Apple introduced an iPod for Windows. The company’s approach to developing and marketing the iPod was less closed than its longtime approach to deploying the Macintosh (Yoffie, Slind, 2008).
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Apple and its distribution partner, the mobile operator AT Mobility (formerly called Cingular Wireless), began selling the iPhone in late June 2007. The iPhone was Apple’s effort to unite the iPod with a mobile phone service. But the company’s real goal for the product, according to Job, was to reinvent the phone. In July 2008, just a year after launching the iPhone, Apple reinvented it. The new submission, called the iPhone 3G, came not only with faster network service, but also with an entirely new pricing model and with a new platform for adding hird-party applications to the device. Apple had undergone great changes during the first decade of the 21st century from its migration to new microchip architecture to its expansion into whole new business lines (Yoffie, Slind, 2008). Issues and/ or Problems With careful examination of Apple Inc. ’s current market situation we have together agreed that there are two major issues that Apex strongly suggests Apple Inc. re-evaluate in regards to the manufacturing, marketing, and selling of the highly recognizable iPhone. The first problem is the current pricing of the iPhone.
Cost is extremely high and not within the budget of its target market. The second problem is the target market. Apple is focusing on the younger crowd. Even though these consumers want the phone few actually have the resources to actually purchase it (Boykin, Fiorini, Tanaka, & Webb, 2008). Possible Solutions One solution would be the ability to offer this new iPhone at a lower price than the current one. Since the new iPhone wouldn’t have as many applications and storage space as the current one, they could sell it at a lower cost to the consumer.
Building corporate accounts could be another solution of developing this product, and businesses could have more of an incentive for this product because they would feel that it is a product built for business uses. Apple could sell a large number of this new product and lead to them being able to offer both iPhones at a lower cost and take control of both markets (Boykin, Fiorini, Tanaka, & Webb, 2008). Best Solution and Implementation They should develop a new marketing campaign that would start to target business professionals.
This would be made of dual advertising with one set of ads directed to the consumers who want an iPhone for personal use and media aspect of Apple Inc. ’s products, such as music and videos. The other advertisements would be directed to business professionals with a stronger emphasis on more business useful applications like web browsing and e-mail (Boykin, Fiorini, Tanaka, & Webb, 2008). What would work best for Apple would be to approve the research and development of a new iPhone. The new product would be specially designed for the business professional while eaving the current iPhone for a more youthful or media oriented consumer. Apple could design an iPhone with better business applications and wouldn’t require the memory and storage the current iPhone needs for media options. Apple should develop an iPhone with which a professional user could possibly view a power point while taking a call so that person could view and hear a presentation anywhere (Boykin, Fiorini, Tanaka, & Webb, 2008). References Boykin, R. , Fiorini, A. , Tanaka, L. , & Webb, M. , (2008), Apple, Inc. , Retrieved June 05, 2011, from http://74. 6. 238. 254/search/srpcache? ei=UTF-8=Apple%2C+Inc. 2008+problems+and+issues=b1ie7=http://cc. bingj. com/cache. aspx? q=Apple%2c+Inc. +2008+problems+and+issues=5026778389285352=en-US=en-US=763d4b38,660dab06=1&. intl=us=8. 8I5eWJvypdvvUZySn8HQ– Yoffie, D. , & Slind, M. , (2008), Apple, Inc 2008, Retrieved June 05, 2011, from http://74. 6. 238. 254/search/srpcache? ei=UTF-8&p=Apple+Inc. %2C+2008&fr=b1ie7&u=http://cc. bingj. com/cache. aspx? q=Apple+Inc. %2c+2008&d=4553498776897120&mkt=en-US&setlang=en-US&w=7e790027,1be1087f&icp=1&. intl=us&sig=16gnjpqRTWYVFXDTJv8lDw– Yoffie, D. & Slind, M. (2008), Apple Inc. , 2008, Harvard Business Review.