Apple iPhone Innovation Analysis

This assignment focuses on analyzing the role of innovation in Apple's iPhones. It requires an understanding of key innovations introduced by Apple, such as the App Store, Siri, and Touch ID, and how these features have contributed to the company's success. Students need to evaluate the effectiveness of these innovations in terms of attracting customers, increasing sales revenue, and gaining a competitive edge in the market. The assignment also delves into the potential drawbacks of innovation for Apple, such as costs and increased expectations from customers. Finally, it seeks suggestions for improving Apple's innovative procedures.

An investigation into and analysis of
the continuing strategic importance of
innovation to APPLE's iPhone product
range and sales performance.

ABSTRACT
In the modern era with the motive to operate efficiently in the market it is necessary for
business to indulge into innovative practices so that it is possible to develop unique products in
the market. The present study is based on innovative practices of Apple which has supported
business to operate efficiently in the market. One of the main reasons behind carrying out the
present study is to identify the strategic importance of innovation to Apple’s Iphone product
range and its impact on the sales performance of company. The present study carried out is
exploratory in nature where main focus is on exploring new ideas which are directly beneficial
for the business. Further, through this design it will be known whether innovative practices of
Apple which has been used in its Iphone are effective or not. . Sample size of 20 managers of
production department has been undertaken where technique of purposive sampling has been
used. Data has been analysed with the help of qualitative tool where different themes have been
formed for conducting the overall research.
According to the current research findings effective innovation process of Apple with
respect to iPhones include the iOS App Store, Siri, The 64-bit A7 processor, Touch ID and 3D
Touch. These are important innovation which have helped in making difference between iPhones
and smart phones of all competitors of Apple. According to research findings author has found
that innovative procedures are very costly for the organization because of the huge technological
investment. Along with this, it increases requirements of training and development session,
skilled and experienced employees. , organization needs to use the suggestions such as
Reduction in cost, Recruitment and selection, Training and development etc.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................4
1.1 Background of the study........................................................................................................4
1.2 Rationale of the study............................................................................................................4
1.3 Analysis and framework........................................................................................................5
Chapter 2: Literature Review...........................................................................................................6
2.1 Innovation process of Apple..................................................................................................6
2.3 Impact of innovation practices on sales performance of enterprise.......................................8
2.4 Unique features in Apple’s Iphone due to presence of innovation........................................9
2.5 Research Gap.......................................................................................................................11
Chapter 3: research methodology..................................................................................................12
3.1 Introduction..........................................................................................................................12
3.2 Research philosophy............................................................................................................12
3.3 Research design...................................................................................................................12
3.4 Research approach...............................................................................................................13
3.5 Research technique..............................................................................................................13
3.6 Dara collection methods......................................................................................................13
3.7 Sampling..............................................................................................................................14
3.8 Data analysis........................................................................................................................14
3.9 Ethical considerations..........................................................................................................14
3.10 Research limitations...........................................................................................................15
Chapter 4: Data analysis..............................................................................................................16
4.1 Introduction..........................................................................................................................16
4.2 Thematic analysis................................................................................................................16
4.3 Statistical analysis................................................................................................................20
4.4 Interpretation and Analysis..................................................................................................22
Chapter 5: conclusion and Recommedations.................................................................................24
5.1 Conclusion...........................................................................................................................24
5.2 Recommendation.................................................................................................................25
5.3 Significance for the future research.....................................................................................26
REFERENCES..............................................................................................................................27
Questionnaire for management team of Apple:.........................................................................30

CHAPTER 1: INTRODUCTION
1.1 Background of the study
In the modern era with the motive to operate efficiently in the market it is necessary for
business to indulge into innovative practices so that it is possible to develop unique products in
the market. Further, innovation has provided large number of companies to gain competitive
advantage where overall market performance can be improved easily. Apart from this, without
highlighting unique attributes in the product no business can attract customers in the market and
this sometime leads o decline in level of overall performance (Maxwell, 2009). In entire
hardware and mobile communication sector competition level is rising face which has prevented
many businesses from accomplishing desired goals and objectives. Apart from this, in the mobile
market competition level is rising at faster pace where many players are operating in the market
and they are Apple, Samsung, Sony etc. Due to this reason every business has to focus on its
innovative practices so that stability in the overall performance is possible. Innovation is possible
through continuous development in product range where models of mobile phones are updated
on continuous basis with the motive to provide convenience to target market (Mitchell, 2014).
Company overview
The present study is based on innovative practices of Apple which has supported business
to operate efficiently in the market. Further, the range of products offered by Apple are Ipod,
Iphone and other type of hardware system. At present business operates in 475 areas in 17
countries and has high market presence (Inclusion inspires innovation., 2016). Apart from this,
its innovative practices are highly appraised in the market which has supported to enhance
overall performance. Moreover, company strongly focuses on research and development
activities due to which all the unique attributes are highlighted in the product range and this has
enhanced customer base of the business.
1.2 Rationale of the study
One of the main reasons behind carrying out the present study is to identify the strategic
importance of innovation to Apple’s Iphone product range and its impact on the sales
performance of company. Further, Iphone as a product of Apple is popular in the entire market
and all the attributes in the product range acts as source of attraction. Times to time new models
of Iphone are launched in the market with new features (Matthews and Brueggemann, 2015).
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Recently the new models launched are Iphone 6, 6S and 6E which are quite innovative and have
advanced features such as advanced camera, processor, attractive design etc. In short, it has
allowed Apple to gain competitive advantage and developed trust, confidence in favor of
customers.
Aim
The main aim of the present study is “To investigate and analyze the strategic importance of
innovation to Apple’s Iphone product range and its impact on sales performance”
Objectives
Following are the objectives developed for the present study which are as follows:
 To examine the effective innovation process of Apple
 To assess the impact of innovation practices on sales performance of enterprise
 To identify the unique features in Apple’s Iphone due to presence of innovation
 To recommend the effective ways through which Apple can indulge into better
innovative practices
Research questions
Following are the research questions being developed for accomplishing aim of the study
which are as follows:
 How effective is the innovation process of Apple?
 What is the impact of innovation practices on sales performance of company?
 What are the unique attributes in Apple’s product range due to presence of innovation?
1.3 Analysis and framework
The present study carried out is exploratory in nature where main focus is on exploring
new ideas which are directly beneficial for the business. Further, through this design it will be
known whether innovative practices of Apple which has been used in its Iphone are effective or
not. Apart from this, data has been collected from both sources named primary and secondary.
Primary information has been collected with the help of questionnaire and secondary with the
help of books, journals and online articles. Sample size of 20 managers of production department
has been undertaken where technique of purposive sampling has been used. Data has been
analysed with the help of qualitative tool where different themes have been formed for
conducting the overall research.
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CHAPTER 2: LITERATURE REVIEW
Literature review is a text of published paper that covers the present knowledge as well as
findings of the topic. It is secondary source which not requires a new work or new research. The
reason of including it in the dissertation by the scholars is to guide and carry out the investigation
into the right direction. It works as a stepping stones when the researchers have the limited time
to conduct the research. The various secondary sources of information helps in gain the
information about the particular topic. The present chapter of literature review will describe the
different areas such innovation process of Apple, impacts of the new innovation practices on
sales performance, unique features of the Iphone because of the innovation and many other
things.
2.1 Innovation process of Apple
According to Amit and Zott, 2012, “the history of the Iphone smartphones begins with
the direction of Steve Jobs” (Amit and Zott, 2012). The first generation Iphone was launch on 29
June, 2007. The new innovation in this model was the OS of the phone support third party
applications using the Safari engine. The author has further stated that after this innovation, the
users has able to access the internet. By this, the customers have got the opportunities to use the
net from any place and at any time. On the other hand, Nambisan and Baron, 2013 explored that
“the first Iphone has metal rear casing body and 3.5 inch display and its capacitive touchscreen
has the new innovation in itself” (Nambisan and Baron, 2013). This has laid the foundation of
development of modern smartphones.
Chan, Pun and Selden, 2013 has found in research that “the second version of Apple
Iphone 3G was a new and more innovated phone as compare to the original one” (Chan, Pun and
Selden, 2013). The new innovation in this direction was its plastic rear which was rounded from
the corner and that gives a complete new look to it. In the contrast of the above statement, Yin,
Davis and Muzyrya, 2014 stated that “in 3G series, it was delivering the facility of 3G
connectivity, GPS and easy to access third party applications” (Yin, Davis and Muzyrya, 2014).
These were the only reason by customers wants to buy it. These all facilities and functions make
the phone better and smarter as compare to other phones.
In this context, Tilson, Sørensen and Lyytinen, 2012 has stated that “Apple company
bring again a new series of 3G that was 3GS that can be said as an improved version of older
phone” (Tilson, Sørensen and Lyytinen, 2012). The new innovation that was taking place in it is
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improvement in the speed of working of phone and make the 3 megapixel camera capable to
record the video. On the contrary, Cusumano, 2013 has explained that “adding the feature of
voice control application in 3GS was one of the most important innovation in Iphone that make it
more unique from the other smartphones” (Cusumano, 2013). With the help of this, the users
able to give the command by voice without typing the text for either searching the topic on
internet or calling to someonee.
According to Brakus, Schmitt and Zhang, 2014 “when the Iphone 4 launch in the market,
the new innovation that was seen is designing of the phone” (Brakus, Schmitt and Zhang, 2014).
The entire body of the phone was stainless steel and glass. Both front and back cameras cover
with the glass. The square and flat look of the phone was only enough to gain the attention of the
customers. On the other hand, Mirchandani, 2010 has stated that “introduction of forward facing
camera with face time, 5 megapixel camera with LED flash and a 3.5 inch retina display were
the one of the major creation of Apple company in the new series of Iphone” (Mirchandani,
2010). These all three features of the phone were useful to those users who were crazier about
the photography.
The author has further stated that “when the Apple launch a new series of Iphone 4S in
the market, the processing speed of the phone was too good as compare to previous phones”
(Hitt, Ireland and Hoskisson, 2016). Although the look of the phone was still identical to Iphone
4. In the contrast of the above statement, McNish and Silcoff, 2015 has suggested that “the new
invention in the new series was an 8-megapixel camera which has the capability of recording the
video in 1080p” (McNish and Silcoff, 2015). This new feature was left behind the other
company’s smartphones and digital cameras.
On the other hand, Chernatony, 2010 has explained that “the new creativity in Iphone
series 5 was its body that was made with aluminium that make the phone more lighter and
thinnest as compare to older phones” (Chernatony, 2010). The use of this material increase the
durability of the phone and gives it a new look. Due to this, it was easy to hold and operate for
the long time. Similarly, from the research of Huff, Möslein and Reichwald, 2013 it has found
that “in this series, the company bring the changes in the screen size by making it 3.5 to 4 inch
display” (Huff, Möslein and Reichwald, 2013). Along with this, the author has further stated
that a new innovation was also in the camera by using sapphire crystal lens and make front
camera complete HD. In the contrast of this, has explored that “the changes in 5C series Iphone
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was only its body because to make it more affordable by the customers, Apple was use plastic
rear” (Olsen, 2015). The rest of the features of this phone was similar to the 5 series.
As per the viewpoints of Yang, Trimi and Lee, 2016 “in the case of Iphone 5S, the new
innovation in this series was its designing and colour combination that make its appearance
stronger at the first glance” (Yang, Trimi and Lee, 2016). The home button was first time change
in this phone. On the other side, Simon, 2016 has stated that “introduce of new finger print touch
ID sensor to unlock the devices was the new innovation in 5S series” (Simon, 2016). This was
the new creativity of the Apple that was more effective as compare to its new design.
2.3 Impact of innovation practices on sales performance of enterprise
Mirchandani, 2010 has concluded that “innovation process of designing is one of the
important factor which has increased the attraction of customers towards the Apple iPhone”. As
per this statement innovation process helps in augmenting the number of customers for the
organization which leads increment in overall sales and financial performance of the company.
In contrast Hitt Ireland and Hoskisson, 2016 has concluded that “Innovation in camera and
associated features increases the value and quality of iPhone as compare to competitor’s products
and services”. According to this statement innovative process regarding camera has helped in
improving quality of the products and services of Apple iPhone which helps in making
differentiation between products and services of the company with competitor’s product.
Therefore, it plays important role in attaining competitive advantages of the organization.
Moreover, McNish and Silcoff, 2015 has concluded that “innovative changes in the application
and other features helps in raising durability and worth of the iPhone of the organization”.
Overall, innovative procedures have positive impacts on overall performance of Apple iPhone.
… has asserted that “customer needs and requirements are one of the major reason behind
that organizations move towards the innovations”. Therefore, innovative features in products and
services of the organization play important role in increasing the satisfaction level of customers
of the company. Similarly, … has concluded that “Research and development , innovation in
products range is beneficial for securing a market strategic position”. Along with this, company
can develop products and services for attaining growth opportunities. New and innovative
products and services increases the scope of market development which create a tough
competitions for existing competitors. Overall, most of the research studies have found that
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innovation in products and services have positive impact on satisfaction level of customers and
performance of the organization.
But on the other hand, innovative procedures of Apple iPhone have some negative
impacts on overall performance of the firm. Chernatony, 2010 has concluded that “Innovation
and changes in different features of products and services increases the cost of research and
development”. As per this statement innovation have negative impacts on total cost and financial
performance of the company. Similarly, Huff, Möslein and Reichwald, 2013 has asserted that
“Innovative process leads changes in different specifications of iPhones which leads increment in
cost of products and services of the organization”. According to this statement high cost of
iPhones reduces the purchasing power of customers which leads decline in total number of
customers for the organization. It has negative impacts on overall performance of the company.
Including this, there are some risks in innovation and organization needs to mitigate these
risks for improving performance. …has concluded that “due to innovation there are some major
risks which can occur such as product may not be accepted by the market and customers”.
Similarly, Apple is operating its business in information technology industry and due to this
reason a little innovation require huge amount of investment and this investment cannot get back
during the product life cycle. So, sometimes it becomes costly for organization. Likewise, ….has
stated that “innovation increases risk of resource management so, organization needs to pay
excessive and specific attention towards resource management, quality concentration and
marketing of existing products and services”. As per this statement lack of resources can reverse
all the advantages of the innovation and affect the overall performance of the company in
negative manner. But if organization implement all innovation in effective manner than it can
improve performance in different aspects such as financial, marketing and operational.
2.4 Unique features in Apple’s Iphone due to presence of innovation
As per view of Huff, Möslein and Reichwald (2013) all the unique features present in the
range of Iphone products in the market are quite different. Further, organization is directly
indulged into innovative practices where technological advancement supports company to
introduce highly differentiated products in the market (Huff, Möslein, M. K. and Reichwald,
2013). Moreover, no doubt, market where Apple operates is highly competitive and large number
of challenges are present which prevents firm from accomplishing its desired aims and
objectives. However Yang, Trimi and Lee (2016) argued that the iOS App store was introduced
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in the year 2008 integrated with itunes store and through this product of Apple became more
popular in the market. Apart from this, Apple started to focus more on software development so
as to provide more convenience to its customers. In the year 2013 64 bit A7 processor was
introduced by business in the market which was quite fast as compared with mobile phones of
other companies in the market. Further, the concept of touch ID was introduced by the business
which was also quite unique as Apple introduced its fingerprint scanner system with the help of
which it is possible to unlock the phone (Yang, Trimi and Lee, 2016). Therefore, this was also
highly advanced feature of the phone. Apart from this, time to time new features are added in
the Iphone range through which business provides more convenience along with comfort to
target market. Cameras in the mobile phone are also highly advanced and same supports in
providing remarkable experience to the customers as per their needs. According to Mitchell
(2014) in future Apple is planning to develop Iphones which are water proof and this represents
the real level of innovation being considered by the business for its overall growth and
development in the market. Due to presence of overall innovative features sales of Iphone is
increasing at faster pace and this in turn has acted as development tool for the company. Since
starting each and every model of Iphone is unique where the attributes present in the product are
capable enough of attracting target market and this has supported Apple to become leader in the
market (Mitchell, 2014).
Innovative features such as playing music with the help of itunes, assisted GPS, voice
control for phone, video call using face time, retina display, use of stainless steel for frame etc.
These unique features are not at all present in other type of mobile phones which are being
offered by other companies such as Samsung, Sony etc. Through advertising and other form of
marketing sources all the range of unique attributes are highlighted by Apple in front of
customers and this has assisted Apple in accomplishment of desired aims and objectives. As per
view of Chernatony (2010) advanced processor and hardware system used in the Iphone range is
quite effective where mobile phones of Apple runs faster as compared with other brands in the
market. Continuous launch of new products in the market such as 4, 4S, 5, 5S, 6, 6S etc has
represented the innovative range of Apple Iphone in the market and due to this reason business is
able to operate efficiently in the market and it is possible to deal with the range of challenges
being present in the business environment (Chernatony, 2010). However Mitchell (2014) argued
that Iphone 6S has been introduced by the business with the concept of say goodbye to the home
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button and the concept of 3D touch has been introduced where this unique feature directly
responds to the hard presses. No doubt the products offered by Apple are costly in the market as
compared with other brands in the market but every product provides value for money
experience to the customers. Therefore, with the help of this it can be stated that innovation has
become key to the organizational success (Mitchell, 2014). Further, to deal with the issue of rise
in competition level in the market Apple has considered innovation as the major tool with the
help of which business retains its loyal customers in the market. Moreover, it has enhanced
internal capability of the company to satisfy need of its target market in efficient manner. The
attributes present in the product range has provided competitive advantage to the business and
has supported to sustain in the market for longer period of time.
2.5 Research Gap
The current research study is based on innovation process of Apple and its importance for
improving sales performance of the company. Regarding this, literature has focused on different
past facts and figures about the distinct innovation procedures of Apple, impacts of innovation
on overall performance of the company and unique feature of different iPhones of Apple. There
are number of research studies which have conducted investigation in various innovations of
Apple, features of different iPhones, etc. Along with this, there are some studies which have
relate these subjects with customer’s purchase decisions. But no one have conducted combined
all these topics for a single research. Along with this, no one have accomplished study on
innovation process and its impact on organizational performance of Apple. So, it was one of the
major gap which was identified by the review of literature. Afterwards researcher has decided to
conduct study on this subject.
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CHAPTER 3: RESEARCH METHODOLOGY
3.1 Introduction
Research methodology can be defined as systematic way to solve the research problem in
effective manner. It comprises different methods as per the library, field and laboratory research.
The current research is based on importance of innovation for products and services and sales
performance of Apple. Regarding this researcher has used number of methods such as research
philosophy, approach, design and techniques, etc (Garner and Scott, 2013). Along with this, for
resolving research problem author needs to collect facts and figures about the strategic
innovation of Apple. Regarding this, study will use appropriate methods for data collection as
well as using most suitable techniques researcher will analyse them in effective manner. Overall
different methods of research methodology will play very important role in resolving research
issue and getting appropriate solution for the current investigation (Kriz, Gummesson and Quazi,
2013).
3.2 Research philosophy
Each and every research is based on a specific assumption which is associated with the
research philosophy. It can be defined as a research paradigm and it helps in conducting in-depth
investigation of research subject. The current research subject is based on strategic importance of
innovation and its impact on sales performance of Apple. For attaining this objective author has
applied positivism research philosophy because it is based ion objectivity of the research topic
rather than subjectivity (Sunil and et.al, 2014). It plays important role in analysing the
quantitative facts and figures in effective manner. Overall positivism research philosophy has
provided appropriate assistance in resolving research issue in appropriate way.
3.3 Research design
Research design plays important role in developing a research plan for conducting
investigation on innovation process of Apple for producing iPhone. There are three types of
research designs descriptive, exploratory and casual. In which author has applied descriptive
research design because it helps in accomplishing subjective as well as quantitative investigation
in effective manner (Gay, Mills and Airasian, 2011). Researcher has applied this research design
because it has helped in acquiring lots of new information through the description. There are two
types of descriptive studies field survey and observation method. For the current investigation
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author has used the field survey. Overall, descriptive research design was beneficial for
determining research problem and getting appropriate solution for resolving problem and
attaining objectives (Flick, 2011).
3.4 Research approach
Research approach can be defined as plan and procedure which help in developing broad
assumptions and detained methods of data collection, interpretation and analysis. There are two
types of research approach which can be used by authors for conducting investigation (Daniel
and Sam, 2011). The current research has applied inductive approach of the research because it
has helped in conducting investigation on the basis of the research question. Indicative approach
focuses on research from general to specific manner. At first research study has analysed
different theories of innovation and importance of this process for an organization. Afterwards
researcher has applied the findings of these theories with respect to Apple iPhone. Overall,
inductive approach has helped in analysing facts and figures in effective manner (McMillan and
Schumacher, 2014).
3.5 Research technique
It can be defined as a strategy which play important role in completing investigation in
appropriate manner. The current research subject is based on importance of strategic innovation
for sales performance of Apple. Regarding this, author has applied qualitative research technique
which has helped in analysing qualitative information in appropriate way. Thematic analysis is
one of the important qualitative method which includes different charts, graphs and diagrams for
analysing collected facts (Li, Zhao and Chen, 2012). It helps in understanding the different
aspects of innovation process and its impact on sales performance. Along with this, it also helped
in determining relationship between two different variables.
3.6 Dara collection methods
Collection of data about the research subject is one of the important task for every
research study. Author has been chosen both primary and secondary data collection methods for
obtaining facts and figures about the strategies inn ovation process of Apple and its impact of
overall financial performance of the company. Primary data has been collected by management
team of Apple using online questionnaire survey methodology. It has provided assistance in
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obtaining new and fresh information about the research subject (Colina-Coca and et.al, 2014).
On the other hand, author has used various sources for collecting secondary data collection such
as literature, books, journals, articles, blogs, website and annual report of the organization.
Secondary data collection methods has provided some insights to understand research problem
and getting appropriate solution for resolving research issue.
3.7 Sampling
For primary data collection author needs to select sample from research universe. As per
the above discussion management team of production department of Apple has considered as
research population (Ye and Lai, 2012). Random number sampling method is one of the
important method for selecting sample from research population. It helps in reducing sampling
error as well as provides equal chance to each participant to select in a sample. Sample size for
the entire research study is 20 which will represent characteristics of whole research universe in
appropriate manner.
3.8 Data analysis
As per the above discussion it is a subjective study so, author has used qualitative
techniques for analysing facts and figures. In which thematic analysis has been used by author
because it is appropriate for understanding subjective concepts relevant to the innovation process
of Apple and its importance for sales performance of the organization. Along with this, it has
comprised different charts and graphs on the basis of the primary data collection which have
played important role in analysing information and getting solution for resolving research issue
(Creswell, 2013). Overall, findings and results of the data analysis have provided appropriate
assistance in attaining aim and objectives in appropriate manner.
3.9 Ethical considerations
As per the research ethics every study needs to focus on different ethical issues. For
resolving these issues researcher needs to apply appropriate strategies. For the current
investigation author needs to focus on safety and security of personal information of all
participants. Regarding this, author has assured about to use only those information which were
required for analysing innovation process of Apple (Daniel and Sam, 2011). In addition,
plagiarism and manipulation of the data are also considered as major issues which are associated
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with secondary data collection. For resolving these issue author has used appropriate references
and citations of each study which have been used by researcher in literature review.
3.10 Research limitations
Every research is associated with some basic limitations which can affect the findings
and results of the current investigation. Lack of time, cost and experience are considered as
major limitation for the current investigation. Researcher has developed appropriate plan for
managing all these resources in appropriate manner. In addition, advance research and theoretical
knowledge about the strategic management have played important role in increasing experience
of researcher about the research subject (Ye and Lai, 2012). Overall, study has used suitable
methods for managing all limitations and getting valid and reliable findings for the current
investigation.
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CHAPTER 4: DATA ANALYSIS
4.1 Introduction
Data analysis is a process of analysing and examining information about the current
subject using different tools and techniques. It helps in getting appropriate findings for the
current investigation. Resolving research problem using appropriate solution is also one of the
major objective of this chapter. For the current research author has used thematic analysis and
statistical methods for analysing facts and figures. In which thematic analysis have helped in
examining qualitative information and statistical analysis have played significant role in
examining numerical information of questionnaire survey. Data analysis has comprised number
of graphs and charts for analysing all information and figures in effective manner. Statistical
analysis has comprised hypothesis testing which have helped in getting appropriate findings for
making final conclusion for the current investigation.
4.2 Thematic analysis
For analysing qualitative information study has used thematic analysis tool which has
helped in understanding research problem in effective manner. Along with this, it has also played
important role in getting appropriate solution to resolve research issue. It analyses all facts and
figures using charts, graphs, themes and diagrams, etc. Different themes of this methods are
based on major innovation process of Apple, effectiveness of these innovative features of Apple
iPhones for whole company, major drawbacks of the innovation in iPhone for Apple and
Innovative features of Apple iPhones and its relation with sales performance of the organization.
Therefore, all these themes have resolved all issues in effective manner. Thematic analysis for
the current study is as follows:
Theme 1: Major innovations of apple in iPhones.
What are the major innovations of apple in iPhones? Frequency
The iOS App Store 4
Siri 5
The 64-bit A7 processor 4
Touch ID 3
3D Touch 4
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For understanding impact of innovation process on sales performance of Apple author
needs to identify each and every innovation. Regarding this, author has included the above
question in questionnaire survey. Along with this, above theme has reflected that there are some
specific innovation which have got average frequency from each and every respondent. So,
according to the above graph the iOS App Store, Siri, The 64-bit A7 processor, Touch ID and 3D
Touch are major innovation of Apple company in its range of iPhones. These innovations have
played important role in success and performance of the firm.
Theme 2: The major effectiveness of these innovative features of Apple iPhones for whole
company
4. What are the major effectiveness of these innovative features of Apple
iPhones for whole company? Frequency
Attracting customers 4
Increasing sales revenue 5
Attaining competitive advantages 4
Making differentiation in products and services with competitors 3
Increasing profitability 4
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For attaining research aim author needs to be focused on effectiveness of innovative
features of Apple iPhones on overall performance of the firm. Above theme has helped in
analysing facts and figures in effective manner. Above graph has reflected 5 participants have
believed that innovative features of Apple iPhones are very effective for increasing the sales
performance of the firm. But, in contrast 4 participants have believed that Apple iPhone has
increased profitability of the organization. Similarly, 4 respondents have thought that innovative
features are effective for attracting customers and attaining competitive advantages of the
organization. In contrast, 3 respondents have thought that innovations are important for making
differentiation in products and services of Apple with existing competitors. Overall, study has
found that innovative features are effective for increasing sales, customers and profitability of
Apple. Along with this, apple iPhones and innovative features are effective for attaining
competitive advantage and making differentiation between products and services with
competitors.
Theme 3: Major drawbacks of the innovation in iPhone for Apple.
6. What are the major drawbacks of the innovation in iPhone for Apple? Frequency
Costly 6
Increases requirement of skilled and experienced employees 3
Requires lots of time 1
Decline profitability and sales due to expenses 2
Increase customer’s expectations 4
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Huge technological investments 4
For analysing effectiveness of innovation process author needs to understand number of
drawbacks of these procedures also. So, author has decided to include this question in above
questionnaire. Author has found that 6 participants have thought that it is very innovative
procedures and costly process for Apple. Likewise, 4 respondents have thought that innovation
increases expectation of customers and technological investment for organization. Including this,
3 respondents have thought that innovation procedures increases requirements of skilled and
experienced persons for different operations of the organization and according to 2 participants it
reduces the profitability and overall sales revenue of the firm. Similarly, 1 respondent have
thought that innovation process require lots of time which can affect the overall performance of
the firm. Overall, above theme has clearly disclosed lots of drawbacks of the innovation process
for Apple.
Theme 4: Relationship between innovative features and sales performance of Apple.
5. To which extent you believe that Innovative features of Apple iPhones can
increase the sales performance of the organization? Frequency
Strongly agreed 12
Agree 5
Neutral 1
Disagreed 1
Strongly disagree 1
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Above theme is based on aim of the current study which has reflected that 12 participants
were strongly agreed on the statement that innovative features of Apple iPhones can increase the
sales performance of the organization and similarly, 5 were agreed on the same. Along with this,
1 was neutral and 1 was disagreed with the same. Likewise 1 respondent was strongly disagreed
with the same. Overall highest frequency of the above theme has reflected that most of the
participants were believed that innovative features of Apple iPhones help in raising the sales
performance of an organization.
4.3 Statistical analysis
It is important analytical tool for examining numerical and quantitative facts and figures
about the innovative features and sales performance of Apple. So, for examining these facts and
figures author has decided to use hypothesis testing which will help in testing insights of the
researcher which have collected by review of literature. For the current investigation author has
applied chi square test which helps in comparing observed and expected frequency of responses
of different respondents. It helps in identifying that which will be most appropriate hypothesis as
per the aim and objectives.
Chi Square Test:
It is a non-parametric test of hypothesis which help in comparing variances of two
different samples. Along with this, it has also helped in making comparison between observed
21

and expected frequency of the survey. Author wants to determine the impact of innovation
process of the organization on sales performance and competitive advantages of the organization.
For the current research project level of significance is 5% and degree of freedom is 4. At this
stage critical value of chi square is 9.48. If this value is greater than calculated value of chi
square than researcher needs to select null hypothesis and reject alternative one.
Hypothesis 1:
Null hypothesis: Innovative features of Apple iPhones cannot increase the sales performance of
the organization.
Alternative hypothesis: Innovative features of Apple iPhones can increase the sales performance
of the organization.
5. To which extent you believe that Innovative features of Apple iPhones can increase the sales
performance of the organization?
S. No. Responses No. of
responses
% of
Responses
1 Strongly
disagree 12 60.0%
2 Disagree 5 25.0%
3 Neutral 1 5.0%
4 Agree 1 5.0%
5 Strongly agree 1 5.0%
Total responses 20 100.00%
Observed (O) Expected (E) O-E (O-E)2 (O-E)2/E
12 4 8.00 64.00 16.00
5 4 1.00 1.00 0.25
1 4 -3.00 9.00 2.25
1 4 -3.00 9.00 2.25
1 4 -3.00 9.00 2.25
Calculated value of Chi Square 23
Above hypothesis testing has reflected that calculated value of chi square is 23 and this
value if higher than tabulated value. So, researcher needs to reject null hypothesis and accept the
alterative one. Therefore, chi square test has found that innovative features of Apple iPhones can
increase the sales performance of the organization.
Hypothesis 2:
22

Null hypothesis: Innovation procedures will not play important role in attaining competitive
advantages for Apple.
Alternative hypothesis: Innovation procedures will play important role in attaining competitive
advantages for Apple.
8. Are you satisfied with this statement that “Innovation procedures will play important role in
attaining competitive advantages for Apple”.
S. No. Responses No. of
responses
% of
Responses
1 Strongly
disagree 14 70.0%
2 Disagree 3 15.0%
3 Neutral 1 5.0%
4 Agree 1 5.0%
5 Strongly agree 1 5.0%
Total responses 20 100.00%
Observed (O) Expected (E) O-E (O-E)2 (O-E)2/E
14 4 10.00 100.00 25.00
3 4 -1.00 1.00 0.25
1 4 -3.00 9.00 2.25
1 4 -3.00 9.00 2.25
1 4 -3.00 9.00 2.25
Calculated value of Chi Square 32
Analysing the sales performance of the organization is one of the major objective of the
current research subject. So, author has conducted chi square test on survey data. Calculated
value of chi square table is very high as compare to tabulated value so, author needs to accept the
alternative one and reject the null hypothesis. Overall, research objective has found that
innovation procedures will play important role in attaining competitive advantages for Apple.
Overall statistical analysis has reflected that innovation procedures play important role in
improving sales performance of the company.
4.4 Interpretation and Analysis
Findings of the data analysis have reflected that thematic and statistical analysis have
helped in attaining aim and objectives in effective manner. Qualitative and quantitative data
analysis have reflected that Apple is used innovation procedures for increasing sales of iPhones.
23

And major innovation for this organization has includes the iOS App Store, Siri, The 64-bit A7
processor, Touch ID and 3D Touch. These are considered as revolutionary innovation which
may help in increasing the overall performance of the organization in different aspects. Including
this, thematic analysis have also reflected that these innovative features of Apple iPhones are
effective for attracting customers, increasing sales revenue, attaining competitive advantages,
making differentiation in products and services with competitors and increasing profitability of
Apple. In addition, top management of the organization have believed that innovation is one of
the major process which increases the overall sales of the organization. But there are some
drawbacks and limitations which are also associated with the innovative procedures which can
affect the performance in negative manner. According to the research findings latest and new
technological innovation increases total cost, technological investment and other expenses of the
organization which reduces sales and profitability of Apple. Along with this, these innovation
increases requirements of skilled and experienced personnel which affect the performance of the
firm. Overall, thematic and statistical analysis have helped in attaining aim and objectives in
effective manner.
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CHAPTER 5: CONCLUSION AND RECOMMEDATIONS
5.1 Conclusion
Innovation is one of the major focus on Apple organization which helps in increasing the
sale performance and other aspects of the organization. The current research has used a very
systematic process for conducting whole investigation in effective manner. It has applied most
appropriate research methods for accomplishing investigation in effective manner. Literature
review has helped in getting most useful insights to understand research problem in effective
manner. Along with this, various methods of research have played important role in moving
research in appropriate areas. Researcher has also applied appropriate data analysis methods
which have helped in getting appropriate findings for the whole investigation. Thematic and
statistical analysis have helped in determining that innovation is one of the major aspect by
which Apple has attained competitive advantages.
According to the current research findings effective innovation process of Apple with
respect to iPhones include the iOS App Store, Siri, The 64-bit A7 processor, Touch ID and 3D
Touch. These are important innovation which have helped in making difference between iPhones
and smart phones of all competitors of Apple. Along with this, these innovations are very
effective for Apple. Major effectiveness of these innovation procedures include increment in
total sales revenue, profitability and number of customers of the organization. Along with this,
improvement in quality of the products and services is also considered as important effectiveness
of all these innovations. Further, innovative features of Apple iPhones are also beneficial for
attaining competitive advantages and making difference between apple and other competitor’s
products and services. Including this, research has also found that innovation procedures are
effective for increasing overall performance of the organization.
All the above discussed impacts are positive aspects of innovation process of Apple
iPhones but there are some negative impacts of these innovative practices which may affect
overall performance of apple in negative manner. According to research findings author has
found that innovative procedures are very costly for the organization because of the huge
technological investment. Along with this, it increases requirements of training and development
session, skilled and experienced employees which may augments the total expenses of the
organization. These expenses may affect the sales performance and profitability of the
organization in negative manner. So, for improving overall performance and effective
25

implementation of these innovative practices Apple needs to focus on resolve all these issues in
effective manner. But, overall research study has used appropriate methods and tools for
attaining aim and objectives in most effective manner.
5.2 Recommendation
As per the research findings there are some major drawbacks and limitations of innovative
procedures for Apple. So, organization needs to use the following suggestions which are
described as under:
 Reduction in cost: Innovation procedures include different cost of the organization. So,
organization needs to use activity based costing system for reducing unnecessary cost of
the organization. Along with this, Organization needs to focus on reduction of wastage
and defects also which will also help in reducing cost that will improve the financial
performance of the organization.
 Assessment of the viability of the investment: there are different techniques by which
apple can assess the viability of the different investment project. By which company can
determine the most profitable project for the organization which will help in reducing the
future risk for the company. Along with this, it will also provide a chance to ninvest6 in
most profitable project for the organization.
 Recruitment and selection: Organization needs to hire skilled and experienced
employees which will help in providing their best performance in introducing most
innovative features. Therefore, Apple needs to focus on effective recruitment and
selection of number of employees. It will resolve different issues of the organization. Training and development: Technological innovation increases requirements of the skills
and knowledge among number of employees. Regarding this, Apple needs to arrange
different training and development sessions which will help in increasing skills of each
and every employee. It will also play important role in improving performance of the
organization. Further, it will play important role in improving innovation procedures of
the organization. Innovation: It is one of the important method by which Apple can attain high market
share in whole industry. At present most of competitors are offering number of products
and services with low cost. On the other hand high cost of products and services of Apple
is one of the major drawback which reduces the market share of Apple. So, due to the
26

latest innovation practices Apple needs to introduce similar quality of products with low
cost. It will help in increasing high market share in the whole industry (Chernatony,
2010). Customer’s idea: By taking feedback from customers Apple can use the same ideas and
needs and requirements for developing customized products and services. It will attract
more customers and help in raising the overall sales performance of the organization.
Along with this, it will also raise the satisfaction level of all consumers which will help in
attaining competitive advantages in effective manner (Mitchell, 2014).
5.3 Significance for the future research
The current research has increased the scope of the future research, most of the author
can conduct investigation on same subject but for other organization. Along with this, in future
researcher cam compare the innovation procedures of two different companies. Therefore,
findings of the current investigation will be significant for all those authors who want to conduct
study on similar subjects in coming future. Along with this, it will be appropriate for all PhD
scholars who are conducting investigation for any subject. Along with this, management of the
apple organization can also improve their innovation process by adopting suggested strategies of
the current study. Overall findings of the current investigation will be very significant for future
researches and different organizations.
27

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Appendix 1:
Questionnaire for management team of Apple:
1. Demographic profile:
Name:
Age:
Gender:
Management level:
2. Does apple uses innovation process for introducing new features in Apple iPhones?
 Yes
 No
3. What are the major innovations of apple in iPhones?
 The iOS App Store
 Siri
 The 64-bit A7 processor
 Touch ID
 3D Touch
4. What are the major effectiveness of these innovative features of Apple iPhones for whole
company?
 Attracting customers
 Increasing sales revenue
 Attaining competitive advantages
 Making differentiation in products and services with competitors
 Increasing profitability
5. To which extent you believe that Innovative features of Apple iPhones can increase the sales
performance of the organization?
 Strongly agreed
 Agree
 Neutral
 Disagreed
 Strongly disagree
6. What are the major drawbacks of the innovation in iPhone for Apple?
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 Costly
 Increases requirement of skilled and experienced employees
 Requires lots of time
 Decline profitability and sales due to expenses
 Increase customer’s expectations
 Huge technological investments
8. Are you satisfied with this statement that “Innovation procedures will play important role in
attaining competitive advantages for Apple”.
 Strongly agreed
 Agree
 Neutral
 Disagreed
 Strongly disagree
9. Please provide your suggestions for improving innovative procedures for Apple?
32