Apple iphone analysis Essay Example for Free

apple iphone analysis EssayThe phone starts ringing, were exit to pick it up and when we touch it, the ringer volume alacrityly goes down Yes Today a familiarity like HTC could form this build of cellphone. Since the launch of the IBM Simon in 1993, smartphone engineering has feeded levels that until recent times had tho been woolgather ab verboten. Features such as wireless sharing, HD video recording and brisk internet ar now banal and todays average smartphone has more than than processing power than computers mapd by NASA to land a man on the moon. All over the creation, the smartphone experience is macrocosm shared by more and more people every day.The convergence of mobile telephony, net services, and personal figuring devices is resulting in the emergence of a mobile net income (Ishii 2004 Funk 2001). The key devices for accessing the mobile Internet -currently dubbed smartphones are powerful new computing devices offering traditional wireless voice service as well as native computer software diligences and, perhaps most moantly, the power to connect to and run a myriad of Internet-based services including email, geo-location, streaming video, and loving networking, while providing a good user experience.The business opportwholeies presented by this new category have attracted mevery of the major spheric information and communications technology (ICT) firms, including firms from the mobile telephony, personal computer, Internet, and personal digital athletic supporter (PDA) industries, into a complex new landscape of competitor. For many of these firms, capturing a portion of the total value reachd by the smartphone industry is believed to be a key to future festering and profits. The interest is understandable. Today more than 1.3 billion mobile phone handsets are beingness sold annually, and in 2010 smartphones made up nigh 20% of that total (Gartner, 2010 Ahonen, 2010). Sales of smartphones are increasing almos t 100% per category, and total global gross revenue volume is expected to surpass that of PCs by 2012 (Gartner, 2010). By collapsing the boundaries between previously distinct devices, smartphones are subsuming gross gross revenue of mobile phones entirely and, increasingly, netbook and nonebook PCs. To complicate the landscape, the smartphone is non the only device at stake, tablets and ebook readers are uphill as key components of the mobile universe.Across all devices, total mobile revenues including advertising, subscriptions, handsets, applications, and so on are betoken to surpass $1 trillion by 2014 (Gartner, 2010). Given the rate at which smartphone are exquisite the commercialize and component heavy injurys are declining by 2015 there go forth be, at least, 2 billion smart mobile devices in use globally. According to the instructions we should make a report with a organisational business plan structure to depict current situations of apple Inc. / iPhone divisi on, and then analyze military capability and weakness of the company.I allow start with SWOT and PESTEL analysis. Then we review the most effective force on iPhone labor with Porters 5 forces. Then we depart analyze orchard apple tree iPhone Growth and market place share in depth with BCG matrix. I use mostly 2012 figures to draw an up to date image from Apple iPhone proceedsion and market situation. Ansoff matrix will be the next analysis which helps us understand iPhone market insight and how it reached diversification. Apple is a big company with several(prenominal) products and services that provide along with products. Each product has its own market.It is possible to use multiple factors and combine related statistics for analyzing a company with different product. just now in this case we are required to analyze smartphone industry only. I use recent figures (2010 to 2013) for analyses. For grimes comparabilitys I consider Apple, Samsung, HTC, ZTE, and RIM (BlackBer ry). For set goals and making the reports objectives we should specify what we want. It is required to indicate lastingness and weaknesses of smartphone section. In my opinion weaknesses are more important. They could emerge in any areas such as labor lines, technological aspects or selling process and cause big failures.Prominent strength and weaknesses will be identified and then will be matched with political, social, technological and environmental factors. Industry intensity will be assessed using Porters 5 forces analysis. This analysis classifies strong and weak points within 5 forces nemesis of new entrants and substitute products, bargaining power of suppliers and customers, and segment rivalry. These forces analyze micro environment. For macro factors we could look into PESTEL analysis. For market share and harvest-time analysis Growth-share matrix (BCG matrix) will be used. This method indicates a product strength using its sales cash flows.iPhone position will be de termined among 4 BCG matrixs categories Star, Cash cow, Dog and Question mark. Apple iPhone as a new product in comparison with existing products within a new or existing market will be analyze using Ansoff matrix. Result shows that iPhone as a new product in 2007 was magnificent. 270,000 units were sold at that time. Expanding the construct of the marketing prance is important for companies that want to adapt to new markets. For illustration, just placing a product in transshipment centers is not enough. A manufacturer with retail outlets also needs to think about physical environment and layout.The store should convey the right look and feel, steer consumers to build up positive associations with the brand. Products inside the store should be displayed logically and consistently, in the locations customers would check number 1 if they were looking for specific items. Because of all these factors a hit ext set asideed marketing mix (7Ps) will be presented. Global Smartphone t rend The global smartphone market has been experiencing fickle harvest-tide for the last several years. Competition has remained fierce all throughout, but the numbers dont lie.Two technology titans dominate the market, taking a whopping 92% of market share for themselves. These two companies are Google and Apple. entropy regarding smartphone sales during Q4 2012 has come out during the last several days, evidencing how lots people all over the clump want to get their hands on a smartphone. After a quick look at the information, it becomes evident that the luxuriously-end phone market is a one of the most extreme oligopolies of the 21st century. With the release of blackberry bush 10 just two days away, investors are starting to ask if there really is any room remaining for Research In Motions current offering.Smartphones are flying off the shelves. According to sy free radical Analytics, global smartphone shipments have increased from 490. 5 million during 2011 to 700. 1 mi llion during 2012, which is roughly 30% growth year-over-year. If anything, there is room for ruffle within the industry people will keep buying more phones. As the market grows, however, so does Androids market share Android went from having 48. 7% of the market in 2011 to a whopping 70. 1% in Q4 2012. Apples iOS has also grown slightly, capturing 22% of the market share by the end of the same period. How much is there left for everyone else? As of Q4 2012, a meager 7.9%. The success of the iPhone, Pre, and blackberry bush shows the strength of consumer demand for an intelligent, multifunctional device. The appeal of the smartphone will create significant new revenue streams for carriers and developers, who should strive to create new service bundles that build off this mobile platform with converged video, voice, and data applications. Future Smartphone sales forecast Smartphone sales blew past the number of PCs sold last year, and theyll be roughly twice PC sales this year, ana lyst Alex Cocotas of BI Intelligence predicts. More startling, smartphone sales will exceed 1. 5 billion units per year by 2016.This compares to about 350 million PCs and 1. 7 billion mobile handsets sold globally last year. Smartphone sales will be driven by two main factors, BI Intelligence says Replacement of nearly 5 billion dumbphones with smartphones (smartphones currently make up only 10% of handsets worldwide) Price declines. The average price of a smartphone will drop from about $315 last year to $200 over the next several years This will plainly have a huge impact on the mobile Internet economy, which is already exploding from the growth of smartphone penetration in the past few years. Some opposite highlights from the reportSmartphone unit sales will grow at nearly a 30% compound annual growth rate over the next five years Smartphones will represent about two-thirds of all mobile phone purchases by 2016, Smartphones will be a $320 billion market by 2016. These forecasts are much high than those of other industry analysts, who generally expect smartphone unit sales to hit about 1 billion a year by 2015. Apple Mission and Vision relation Apple designs macintoshs, the trounce personal computers in the world, along with OS X, iLife, iWork and professional software. Apple leads the digital music revolution with its iPods and iTunes online store.Apple has reinvented the mobile phone with its revolutionary iPhone and App Store, and is defining the future of mobile media and computing devices with iPad. Apple vision statement Apple is committed to bringing the best personal computing experience to students, educators, creative professionals and consumers around the world through its sophisticated challengingware, software and Internet offerings. Apple Background On December 2012 The Economist describe that Apple became the most valuable company ever (in nominal terms), beating the record that Microsoft hit in December 1999.Apples share price peaked at $705 before entering prove territory and falling by 25%, to $510 at the start of 2012 it had been $410. Apple Incorporated is an American mass that designs and manufactures computer hardware, software and other consumer electronics. The company is best known for their Macintosh personal computer line, Mac OS X, extremely loyal user-base, iTunes media application and the iPod personal music player. The company headquarters is in Cupertino, California, chief executive officer and co-founder is Steve Jobs and the company boasts 284 retail locations spanning 10 different countries.Apple Inc. was founded on April 1, 1976 in a garage by Steve Jobs and Steve Wozniak. The young entrepreneurs brought different strength to their fledgling company Jobs had a flair for conceptualizing products, while Wozniak had the technical know-how to make them happen. Apple I was the first product that Apple Inc. produced. It was a personal computer (PC) with a MOS 6502 central processor clocked at 1 MHz and 4Kb memory. In 1977, Apple introduced Apple II which became a very fortunate device. After that the company began to produce Apple II series.The Apple II was followed by Apple II plus, Apple IIe, Apple IIc, Apple IIGS, Apple IIc Plus and Apple IIe Card. Apple introduced Macintosh in 1984 that became a very successful computer. It was a first computer featuring a graphical larboard and a abstract for navigation. The new computer sold very well, pushing apples fiscal 1984 sales to an unprecedented 1. 5$ billion. By 1985, however Jobs and Scully began to disagree over the direction they wanted the company to take. After Jobs attempt to remove Scully failed, Jobs left Apple in May to start his own new business, NeXT Computers.In December 1996, Apple acquired NeXT, with the plan of using its technology as the basis for a new operating system. After being gone for more than a decade, Jobs returned to the company he had originally cofounded with Wozniak.. In 1998 Apple introdu ced the new extension of PowerMacs, PowerBooks, and the highly anticipated iMac and iBook, which were less expensive computers aimed at the how-end computer market. After an entire year without video display a profit, the first quarter of 1998 began three years of profitable quarters for Apple.Apple ventured into the market of legal downloads with the introduction of its iTunes Music Store in 2001. iTunes offers downloads at a specified price without requiring subscription or periodical fees. iTunes offers its users a selection of more than 6 million songs, with new songs continually added. For music lovers, the iPod is the greatest maneuver since the Walkman. With up to 160 GB of storage, it allows users to carry up to 40,000 songs or 200 hours of video wherever they go. on that point are currently four different iPod styles the iPod shuffle, iPod classic, iPod nano, and iPod touch.Apple earned 5,615 million just from iPod in 2012 . apprise Chronology 1976 With $1,300, Steve Jobs and Steve Wozniak found Apple Computer, Inc. 1980 Apple converts to public ownership. 1982 Apple becomes the first personal computer company to reach $1 billion in annual sales. 1985 John Scully assumes the helm after a management shakeup that causes the departure of Jobs and several other Apple executives. 1991 PowerBook line of notebook computers is released. 1994 Power Macintosh line is released. 1996 erudition of NeXT brings Steve Jobs back to Apple as a special advisor.1997 Steve Jobs is named interim chief executive officer. 1998 The all-in-one iMac is released. 2000 Jobs, severely in command as chief executive officer, oversees a leaner, more tightly focused Apple. 2001 The iPod is released Apple opens its first retail store in Virginia. 2003 Apple opens its first store in Japan. 2005 The release of a video iPod, the ordinal generation of the device, pushes total iPod unit sales to 30 million. In first-quarter 2007, Apple launched its revolutionary product, the iPhon e. iPhone combines three concepts touristy with customers a mobile phone, a widescreen iPod, and a internet communication device.The iPhone brags an entirely new user interface based on a large multi-touch display and pioneering software. which users can control with just their fingers. The iPhone default Internet browser will be Apples own Safari **, but it is open to other software as well. The iPhone allows for 8 hours of talk time. Apple sold 1million iPhone less than three month after this product was functional to customers. Apple expects this trend to continue during 2008 and to reach sales of 10 million iPhones, stealing 1 percentage of the mobile phone market share.. One year following the untimely death of Steve Jobs, the company he co-founded and led for most of his adult life appears to be thriving and lacking any serious obstacles to its break-neck growth in a rapidly changing technology market. That said, Apple Inc. still has plenty of challenges ahead. Some of tho se stem simply from the nature of the fast-paced, hyper-competitive consumer technology business the company currently competes in and largely dominates. early(a) challenges whitethorn be more unique to Apple and its singular focus on a relatively compress line of products.And long-term, the company may still feel the loss of a leader who possessed an otherworldly ability to see around corners, and bend other strong personalities to his will. The guy who could literally pull rabbits out of his hat no longer exists, said independent technology analyst Roger Kay. Apples had a phenomenally strong year since Jobs death from cancer last October, which left the company permanently in the hands of the senior management team he spent years cultivating, led by CEO Tim Cook. Its also had near stumbles along the way.Some missteps with features such as Siri the infamous personal digital assistant first embedded into last years iPhone 4S and the Apple Maps tool in the latest iPhone 5 hav e caused some level of embarrassment. The company under Jobs direction was not free of slip-ups either, and some issues have spanned both periods, such as growing concerns about the treatment of workers in the massive Chinese factories that produce the companys popular products. But if proof is in the numbers, investors may find it hard to argue against the crew running Apple now.The company is conservatively projected to report a 44% revenue gain for its just-ended fiscal year with earnings expected to post a gain of more than 60% from the previous year. Apples stock is up more than 70% from the day Jobs passed away, condescension the stated concerns at the time of many investors and analysts about how well the company could keep its pace of design without its chief visionary at the helm. The key challenge for Apples management team will be in keeping the companys strongest profit engines humming.And this will involve the right mix of technological innovation and deal making. Th e iPhone is the most crucial element. First launched in 2007, the smartphone accounted for nearly 55% of Apples total revenue in the first nine months of the just-ended fiscal year. While the company does not disclosed profitability data on its product lines, analysts believe the iPhone is the major driver of operating profits, with a gross margin of well over 50% on the devices. Apple can command those high subsidies because of the strong consumer demand for the iPhone.But competitors are pushing hard into the smartphone space. Samsung has already outpaced Apple in global shipments thanks to its use of Googles Android operating system and its wide line of phones that appeal to a broader array of markets and consumers. Apples old nemesis Microsoft is launching an updated Windows Phone platform this fall, with Nokia and Samsung building devices for the software. Investors will continue to watch closely for signs that Apples current team can not only push forward its existing product line, but add to them with new categories and innovations.Though the iPhone 5 launched a year following his death, a report by Bloomberg BusinessWeek cited unnamed sources as saying that the device trustworthy detailed input from Jobs prior to his death. Despite Apples strong run of success, its narrow product line and strong reliance on the iPhone makes it vulnerable to competitors who may come up with infract ideas. Apples future success will likely hinge on its ability to exert that posture no matter whos in charge. Apple SWOT Analysis SWOT is a great indicator of an agencys strategic ineptitude.This involves you creating a two-by-two grid and then populating it with a list of incredibly obvious client strengths and weaknesses, and another list of equally palpable opportunities and threats. Then you stand back and gaze at this list of incredibly humdrum words, such as competitors and new product, and attempt to intuit a bold, new, innovative way of doing business. The table be low provides information about current situation of Apples smartphone market position, strength and weaknesses and also its possible future situations, threats and opportunities. Table Apple Inc.Strengths and Weaknesses Strengths Weaknesses Universally accredited and well-known brand which also began kind of revolution in smartphone industry Apple is a Big name in the technology world. It brings so much responsibility and kind of obligation for company and its product. New iPhone map application problem and customer frustration would be a good example. Brand loyalty is incredible. People will line up in the freezing cold overnight just to be one of the first to get their hands on the new iPhone From the anti-capitalism point of view devices like iPhone counts as luxuries.They think this kind of huge prices could be spend somewhere more vital. Employ high technologies. This offers unique features for at least two purposes. One, First degree price discrimination and two, luxury custom er satisfactions Utilize high technology along with high quality hardware component turn Apple iPhone into very personifyly merchandise. in all likelihood many people cannot afford the price. Ease of use. Apple utilizes user friendly design elements for both hardware and software parts of iPhone. 3. 5 mm audio jack would be a good exampleiPhone is equipped with own Apple closed operating system, iOS. And apps which work with iOS can only be downloaded from App Store. Other rivals like Android have more distribution channels. Former CEO, Steve Jobs role in developing iPhone and leading Apple to the market incredibly. Steve Jobs died on Oct 2011. We can still see his works and ideas in Apple iPhone. His unconnected can be an excessive damage to the company. Having strategic agreements with well-known mobile carriers. like T-Mobile and ATT Apple analysis of PESTEL Analysis policy-making factorsThe supply and manufacture of many critical components is put to deathed by sole-source d outsourcing partners in the U. S. , Asia and Europe. Outsourcing partners in Asia perform final assembly of substantially all of the companys hardware products. Manufacturing or logistics in these locations or transit to final destinations may be disrupted for a variety of reasons including, but not expressage to, instinctive and man-made disasters, information technology system failures, military actions or economic, business, labor, environmental, public health, or Political issues.War, terrorism, geopolitical uncertainties, public health issues, and other business interruptions have caused and could cause damage or disruption to external commerce and the global economy, and thus could have a material adverse effect on the Company, its suppliers, logistics providers, manufacturing vendors and customers, including channel partners.The Companys business operations are subject to interruption by natural disasters, fire, power shortages, nuclear power plant accidents, terrorist att acks, and other hostile acts, labor disputes, public health issues, and other events beyond its control. Economic factors The global recession is having a serious impact on Apples retail death penalty The follow-on effects from global economic conditions on the Companys suppliers could affect the Companys ability to obtain components.Therefore, the Company remains subject to significant risks of supply shortages and price increases. The Company expects to experience decreases in its gross margin percentage in future periods, as compared to levels achieved during 2012, largely due to a higher mix of new and innovative products with flat or reduced pricing that have higher cost structures and deliver greater value to customers and anticipated component cost and other cost increases. Future strengthen of the U. S. dollar could also negatively impact gross margin.Social factors The Companys business requires it to use and store customer, employee, and business partner personally identi fiable information (PII). This may include names, addresses, phone numbers, email addresses, contact, preferences, tax identification numbers, and payment account information. Although malicious attacks to gain access to PII affect many companies crosswise various industries, the Company may be at a relatively greater risk of being targeted because of its high profile and the amount of PII managed.Technological factors Apple RD expense is increasing year by year. $1. 8 billion for 2010, $2. 4 billion, and $3. 4 billion for 2012 which is a crucial manner in these days competition Environmental factors The Company also sells its hardware and software products to enterprise and government customers in each of its geographical segments. The Companys products are deployed in these markets because of their performance, productivity, ease of use and seamless integration into information technology environments.The Companys products are compatible with thousands of third-party business app lications and services, and its tools enable the development and secure deployment of custom applications as well as remote device administration. Legal Factors The Company is subject to laws and regulations affecting its domestic and international operations in a number of areas. These U. S.and foreign laws and regulations affect the Companys activities including, but not limited to, areas of labor, advertising, digital content, consumer protection, real estate, billing, e-commerce, promotions, quality of services, telecommunications, mobile communications and media, television, intellectual property ownership and infringement, tax, import and export requirements, anti-corruption, foreign exchange controls and cash repatriation restrictions, data privacy requirements, anti-competition, environmental, health, and safety.