Apple Inc Case Study 2022

RUNNING HEAD: CASE STUDY ON APPLE INC.
Case Study on Apple Inc.
Name of the student
Name of the university
Author’s Note
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CASE STUDY ON APPLE INC.
Table of Contents
Introduction...........................................................................................................................3
Data.......................................................................................................................................5
Analysis.................................................................................................................................8
Conclusion.............................................................................................................................8
References...........................................................................................................................10
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CASE STUDY ON APPLE INC.
Introduction
The chosen organisation of the discussion of the topic is "Apple Inc. It is an American
organization having it’s headquarter in the area of Cupertino, California. The business
exercises of Apple Inc. include structures and advancement. A portion of its well-known
items is as "Mac iPad, Apple Tablet, Macbook and some more (Green, 2015). Below image
represents the business model of Apple Inc.
Figure: Apple Inc. Business Model
(Source: Cuofano, 2019)
It’s target market: Research shows that men buy more Apple product than female and the
normal age of an Apple client is 35-44. around 94% of total Apple clients are generally
construed to be well-off than other people who use cell phones all the time.
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CASE STUDY ON APPLE INC.
Figure: Apple Inc. Targeted Market Segment
(Source: Bhasin, 2019)
Apple Inc. is specialized in, new product development in the field of technology. They aim to
introduce innovative product offerings that have not been introduced in the present era of
time. They are specialized in designing, new innovate product introduction and much more.
Product differentiation, come from the organization's estimating systems. Macintosh
Computers prime supporter Steve Jobs looked to make a first-class item with a value
proportionate to its degree of value while keeping up high-overall (Heracleous & Papachroni,
2016).
It’s pricing strategy, Offering few items inside the presentation period of the item into the
market, the pricing is premium with high-income group targeted from the strategic position of
value creation.
It’s market share, the latest report in the year 2019 shows that the cell phone maker had 51%
worldwide cell phone income share, which was more than the remaining business
consolidated. Samsung Electronics (SSNLF) was in runner up for the December-finishing
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CASE STUDY ON APPLE INC.
quarter, with almost 15.7% piece of the overall industry, an increase from figure of 14.5% in
the year 2016 (apple market share - Google Search, 2019).
Figure: Apple Inc. Market Share
(Source: apple market share - Google Search, 2019)
The market structure of Apple Inc. may be conceived to be monopolistic with no such strong
contender apart from Samsung and other others, struggling with their value offering in the
premium segment. It’s top 10 competitor's apart from Samsung are “Dell, Lenovo, Hewlett-
Packard, Microsoft, Sony, Asus, Acer, Toshiba, Google pixel, and Xiaomi” (D O'Rourke,
2018). Through the reconciliation of these systems, the organization plans to satisfy the need
for developing in the market. Also, one characteristic that its commodity has that makes them
unique in their market is that it focuses upon the “Quality” factor rather than focusing upon
the number of commodities.
Data
Market share: the company has one of the largest market shares as may be reflected in the
figures below which exhibits that the brand has been able to create its own distinctively niche
market where the customer loyalty has been sustainable and long-term because of their
continuous quality offering and aggressive marketing technique.
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CASE STUDY ON APPLE INC.
Figure: Apple Inc. Market Share (2007 – 2019)
(Source: Apple iPhone market share, 2019)
Pricing strategy: The same may be conceived to be premium with a specific target towards
the high-income group with sufficient affordability.
Figure: Pricing Strategy
(Source: This chart tells you everything you need to know about Apple's pricing
strategy, 2019)
Market growth: The same for Apple has been very promising over the years. Though there
have been recent fluctuations because of the stiff competition in the market, as may be
reflected in the below figure as well, the overall growth scenario seems to be positive for the
brand in the long-run.
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CASE STUDY ON APPLE INC.
Figure: Apple Inc. Market Growth
(Source: Tonner, 2019)
Revenue and Profit-maximization:The chart shows that the company has been able to
cumulatively gather surplus in both the top-line as well as bottom-line of the business for
years and the same may primarily be attributable to the fact that the products and services are
being consistently liked and supported by the larger number of loyal customers base across
the globe.
Figure: Apple Inc. Revenue and Profit-maximization
(Source: Power, 2019)
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CASE STUDY ON APPLE INC.
Analysis
Price elasticity of demand is a proportion of the connection between changes in the amount
requested an item and changes its cost. Interest for an ordinary item will essentially decay
once costs are raised. Be that as it may, when you are discussing an extraordinary brand like
Apple, with exceptionally solid notoriety in the corporate and social world, request changes
will barely be seen notwithstanding when costs are raised.
Cost is less expensive than the sum expended ought to be improved fundamentally. Apple
store likewise understands their issues with the first iPhone and now they produce another
one 3G. The new value appealing and progressively well known. It will make the iPhone
progressively appealing phenomenal according to clients, particularly when financial
conditions are very cloudy like today.
After a year, move up to the 3G requests turns out to be progressively earnest, as the
inexorably thick web designs and sight and sound substance (Allurwar, Nawale & Patel,
2016). Indeed, the interest towards the iPhone may be construed to be inelastic as the same
does not only bears the brand value and status; but also acts as a symbol of pride and hence,
an increase in the price level for the same does not adversely affect its demand.
However, in the times of recession, the sale of iPhone got affected and the period of 2007 to
2009 witnessed a shapr fall in the price of iPhone from $599 in the year 2007 to almost $199
in the year 2009. It is needless to mention that generally the luxury items get impacted during
the time of inflation and recession and iPhone was also no excpetion to the given rule.
In this context, it may be worth to note that when the iPhone's cost reduced drastically, the
customers raised the interest towards the iPhone once more as there was enough reaon for
them to buy a prestigious product which otherwise could not be possible for them to posses,
because of its enhanced price level.
As interest is value versatile, an increase in the cost will prompt a decrease in all-out
utilization on the telephone and henceforth a decrease in the complete income of makers.
Hence, Apple Inc. may be considered to be a price maker.
Conclusion
Based on the aforesaid discussion, it may be stated that the “Apple Inc.” items are just the
absolute best one can discover in the tech world. The solid notoriety the Apple brand has
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CASE STUDY ON APPLE INC.
gained throughout the years is one reason clients regard and appreciate them, and will
scarcely move notwithstanding when costs are raised. Apple has been placed as one of the
reputed brands in the technology sphere with its consistent thrive towards new and innovative
technologies with quality offering backed by market-disruptive innovation. The company is a
price maker and not a price taker. Finally, it may be concluded that a well-planned business
strategy sup[ported by efficient leadership will significantly enable the management to attain
the long-term goal of sustainability in a most optimum manner and Apple is one of such
nicest examples.
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References
Allurwar, N., Nawale, B., & Patel, S. (2016). Beacon for proximity target marketing. Int. J.
Eng. Comput. Sci, 15(5), 16359-16364.
apple market share - Google Search. (2019). Retrieved 21 September 2019, from
https://www.google.com/search?
q=apple+market+share&oq=apple+market+share&aqs=chrome..69i57j0l5.3442j0j4&
sourceid=chrome&ie=UTF-8
Bhasin, H. (2019). Market segment of Apple Inc - Apple Market segment. Retrieved 21
September 2019, from https://www.marketing91.com/market-segment-apple/
Cuofano, G. (2019). The Trillion Dollar Company: Apple Business Model In A Nutshell.
Retrieved 21 September 2019, from https://fourweekmba.com/apple-business-model/
D O'Rourke, A. (2018). The world apple market. Routledge.
Green, S. (2015). Apple. Bellwether Media.
Heracleous, L., &Papachroni, A. (2016). Strategic Leadership and Innovation at Apple Inc.
SAGE Publications Ltd.
Apple iPhone market share. (2019) | Statista. Retrieved 21 September 2019, from
https://www.statista.com/statistics/216459/global-market-share-of-apple-iphone/
Power, M. (2019). Apple Reports 4Q 2017 Results: $10.7B Profit on $52.6B Revenue, 46.7M
iPhones. Retrieved 21 September 2019, from
https://www.macrumors.com/2017/11/02/earnings-4q-2017/
This chart tells you everything you need to know about Apple's pricing strategy. (2019).
Retrieved 21 September 2019, from https://www.businessinsider.com/this-chart-tells-
you-everything-you-need-to-know-about-apples-pricing-strategy-2015-2?IR=T
Tonner, A. (2019). Apple Inc. Catches a Much-Needed Break in India | The Motley Fool.
Retrieved 21 September 2019, from
https://www.fool.com/investing/2016/06/22/apple-inc-catches-a-much-needed-break-
in-india.aspx
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