* ITunes Online Store is an excellent source of revenue derived from sales of music and applications for Apple’s iPhone, IPad and iPod touch devices. * Excellent brand loyalty by its customers. Many own multiple products (Mac, iPhone, etc. ) * No debt, excellent cash flow. $13bn Net Income in most recent quarter. (Dec 2011). * Excellent Research & Development division that is able to deliver (premium) products that customers will stand in line to buy. Global reach, Apple’s brand is strong around the globe.
* They own their own Operating System (IOS), which is used across their entire product line allowing them to sell a complete product without paying large royalty payments to their competitors. * Apple is an innovator and technology leader. * Apple’s first time customers, buying iPhone, iPods and iPads, are buying other Apple products, including Apple’s desktop and laptop computers based on the most recent quarter. Apple’s Weaknesses Weak integration with Microsoft Office makes their product line less attractive to business enterprises.
* Google’s Android Operating system is slowing Apple’s growth rate in the mobile phone market.
* High price. Apple’s products are typically higher in price than its competitors. Price sensitive consumers tend to not consider Apple in buying decisions. * Apple tends to lead innovation and then watch other companies control the market once it has reached the tipping point and wider consumer adoption. Apple’s Opportunities ITunes will continue to generate sales from music and applications, however I believe in the next two years Applications for the iPhone, iPod touch and iPad will generate more revenue than music downloads. Apple receives a 40% gross margin on all application sales. * Cross product sales will continue to increase as more and more people choose Apple.
* Product development cycles have shortened in the mobile phone market, giving Apple a bigger opportunity in upgrade sales. Excellent iPhone 4 sales are an excellent example. Consumers are willing to update their phone hardware very two years. * A new release of Apple’s iPod touch, featuring video chat, will likely be a huge revenue generator. * A new release of Apple’s iPad, featuring video chat, will also likely be a huge revenue generator. * Apple’s direct online sales channel will continue to grow, helping improve their already impressive gross margins. * Apple new iAd advertising platform for Applications designed for the iPhone, iPad and iPod touch could be a significant revenue generator. Apple’s Threats
* Mobile Phones based on Google’s Android Operating System. Mobile Phones based on Microsoft’s new Mobile 7 Operating System. * Cheaper laptop computers from Dell, Toshiba, HP, Sony and IBM. * New Tablet computers based on Kingle Fire or Google’s Android Operating System could hurt their iPad sales. * Online Music Stores from Amazon, Yahoo! and Wal-Mart offering music cheaper. * New online music models that including renting the entire music library for a low monthly rate could change how consumers pay for music. * Technology moves quickly, new threats from new startups are likely.
Cite this List of Apple’s Original Produstc
List of Apple’s Original Produstc. (2017, Jan 22). Retrieved from https://graduateway.com/list-of-apples-original-produstc/