An Investigation into Apple's iPhone Innovation and Sales Performance

This report presents an investigation into the strategic importance of innovation for Apple's iPhone product range and its impact on sales performance. The study employs an exploratory design, focusing on how Apple's innovative practices, such as the iOS App Store, Siri, the A7 processor, Touch ID, and 3D Touch, differentiate its iPhones from competitors. The research involved a sample of 20 production department managers, utilizing purposive sampling and qualitative data analysis, including thematic analysis. The findings highlight the high costs associated with Apple's innovation process, including technological investments, training, and skilled employees. The report concludes with recommendations, such as cost reduction strategies, improved recruitment and selection processes, and enhanced training and development programs. The report also includes a detailed literature review, research methodology, data analysis, and conclusions, along with a questionnaire used in the study.

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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