Markets & Marketing

 Players in the industry

 Market shares of top 5 and bottom 5 players
 Controlling ministry
 7p’s
 Product
 Product line
 Major brands
 Market share
 Advertising punch line/slogan
 Logo
 Price,place,promotion,people,process,physical evidence.
 Market segments
 Customer segments
 Each segment target customer
 Services positioned for each target segment
 Product life cycle
 Micro environment
 The suppliers
 The resellers
 The customers
 The competition
 Macro environment
 Demographic forces
 Economic factors
 Natural/physical forces
 Technological factors
 Political and legal forces
 Social and cultural forces
 Demographics
 Disruptive innovations affecting the organization
 Players in the industry
Apple Inc. (AAPL) is one of the most widely recognized and popular companies the world over.
Apple products have been synonymous with innovation, sleek design and approachable user
interfaces for millions of users and for multiple decades. Nonetheless, the company retains its
fair share of competitors. Given that Apple operates in the desktop and laptop
computer, smartphone and entertainment technology spaces, it faces competition from an ever-
growing array of peers and from a number of different sides.

Computer Manufacturers
Many of Apple's primary competitors are primarily manufacturers of computers. Dell
Technologies (DVMT) is a manufacturer of both desktop and mobile computing devices and one
of Apple's primary competitors. The rivalry between these two companies goes back many years,
with Dell even attempting to corner some of Apple's share of the mobile music player market
with its Dell DJ, designed as an early competitor to the iPod. Dell has participated in
numerous acquisitions and other partnerships in recent years, though it does not offer
smartphones.

Lenovo Group is another computer manufacturer that competes with Apple. This Chinese
company offers consumer PCs as well as mobile phones and other electronics. In this way,
Lenovo competes with Apple on many different product lines.

HP Inc. (HPQ) has a history dating back to 1939 as part of the original Hewlett-Packard Co.
Most recently, the company focuses on affordable consumer computer products. One of HP's
strengths is its broad, global presence, making it a particularly strong Apple competitor outside
the U.S.

Smartphone Manufacturers
Among the most significant Apple products is the iPhone. As in the computer space, though,
Apple has not completely dominated the market. Samsung, a South Korean company producing
both personal computers and smartphones, is a major competitor, particularly for the iPhone.
The Samsung Galaxy and Note series have been responsible for reductions in iPhone sales for
many years. Today, Samsung has developed into one of the largest and most profitable
companies, both in the Asian region and in the world overall.

Market shares of top 5 & bottom 5 players

Arthur Levinson, Chairman of the Board
Arthur Levinson is the chairman of the board of Apple, the current CEO of Calico, and
the single-largest individual shareholder with 1.1 million shares as of Aug. 3, 2018. In
addition to sitting on Apple's board of directors since 2000, Levinson serves on the board
of the Broad Institute, a biomedical research center affiliated with MIT and Harvard.
Levinson's current work at Calico focuses on combating aging and related illnesses.
Alphabet launched the company in 2013.
Tim Cook, Chief Executive Officer
Tim Cook is the current chief executive officer (CEO) of Apple and the second-largest individual
shareholder with 878,425 shares as of Aug. 24, 2018. Prior to being named CEO, Cook served as
Apple’s chief operating officer, responsible for the company's international sales and operations.
Before joining Apple in 1998, Cook worked for computer distributor Compaq as the
company's Vice President for Corporate Materials.

Craig Federighi, Senior VP of Software Engineering

Craig Federighi is Apple's senior vice president of software engineering and the company's third-
largest shareholder with 412,571 shares as of Aug. 9, 2018. In this capacity, Federighi oversees
the development of iOS, OS X, and Apple's common operating system with a team of engineers.
Federighi and his team of engineers are responsible for delivering the software that powers
Apple's product line, from user interface to application programming. The senior vice president
formerly worked under Steve Jobs at NeXT, where he helped develop the Enterprise Objects
Framework. Federighi joined Apple when it acquired NeXT in 1996.
Federighi holds a bachelor's degree in computer science and a master's degree in electric
engineering from the University of California, Berkeley.
Jeffrey Williams, Chief Operating Officer
Jeff Williams is Apple's chief operating officer and fourth-largest individual shareholder with
108,085 shares of the company as of Oct. 3, 2018. Williams first joined Apple in 1998 as the
company's head of worldwide procurement, and six years later he was named the vice president
of operations. In 2007, Williams worked on the team that helped launch the iPhone into the
global mobile phone market, and he has led worldwide operations for iPod and iPhone sales
since that time.
Williams holds a bachelor's degree in mechanical engineering from North Carolina State
University and an MBA from Duke University.
Bruce Sewell, Senior VP of Legal and Global Security
Bruce Sewell is Apple's former General Counsel, former Senior Vice President of Legal and
Global Security, and current fourth-largest shareholder with 108,085 shares as of Oct. 3, 2018.
At Apple, Sewell was responsible for overseeing global security and privacy, intellectual
property, corporate governance, and other legal matters. Sewell joined Apple from Intel
Corporation, where he led the company's legal, corporate affairs, corporate social responsibility
programs. Sewell announced his retirement from Apple in October 2017 and joined the non-
profit Village Enterprise in April 2018.

Controlling ministry
 Former Chairman Chairman of the
Arthur D. and CEO, Board
Levinson Genentech Audit Committee

Former CFO and

Corporate
President,
James A. The Boeing
Bell Company Audit Committee

Tim Cook CEO, Apple

Former Vice Compensation

President Committee
Albert A. of the United Nominating
Gore Jr. States Committee

Compensation
President and Committee Chair
Andrea CEO, Grameen Nominating
Jung America Committee

Former Chairman
and CEO,
Northrop
Ronald D. Grumman Audit Committee
Sugar Corporation Chair

Co-founder and
Susan L. Director,
Wagner BlackRock Audit Committee

7P’s products
Mac, iPod, iPhone, iPad, Apple Watch, Apple TV, OS X, iOS watch, OS iLife, iWork, Apple
Store, online Apple Store, iTunes Store, iOS App Store, Mac App Store, iBooks Store, iCloud,
Apple Music place. They are very strong in technology and launching very high tech products
and define new categories. Latest additions being Apple watch and music.
 Product line
Apple wach, macintosh, iphone7, ipad, apple pro mac, imac ,iphone6, apple macbook pro,apple
tv,mac book air, apple airpods,iphones,macbook,iphone11, apple mac mini, ipod,airpod, imac
pro, ipod mini, apple pad air, apple ipod nano, imac G3, mac intosh SE.

Major Brands
Apple’s iPhone sales have dropped in recent quarters, particularly in China, where cheaper rivals
Huawei Technologies and Xiaomi have gained traction. Smartphone revenue fell 17% for the
latest three months to $31 billion, but the stock jumped 5% on the results. One big reason:
record-high services revenue.

The company’s services division includes its App Store, Apple Pay, iTunes, cloud services and
more. It is now the second biggest segment for Apple after the iPhone, with revenue of $37
billion in 2018, and Morgan Stanley expects it to top $100 billion in 2023. The projected growth
speaks to the power of the Apple brand.

Apple tops Forbes’ annual look at the world’s most valuable brands for the ninth straight
time. The brand of the tech giant is worth $205.5 billion, up 12% over last year. It is the first
time a brand crossed the $200 billion threshold.

Apple has made an art form of moving its customer base from one product category to another.
Mac users adopted the iPod, followed by the iPhone, iPad and Apple Watch. Customers trust the
brand will work seamlessly across all categories in the Apple ecosystem, which has helped make
the Cupertino, California-based company the most valuable in the world. Services is the next
frontier for the company and brand.

While Apple maintains its spot at the top, Google is closing fast with a value of $167.7 billion,
up 23%. The Apple brand was worth more than twice as much as the ubiquitous search brand
just four years ago.

Google has cornered the global search engine market with a 92% share over the past 12
months, according to StatCounter(Bing, 2.6%, and Yahoo, 1.9%, are miles behind). Like Apple,
Google has used its brand to move into other categories of consumers’ everyday life from email
to Web browsing to maps to cloud storage.

Market Share
For the first time ever Apple Inc. (AAPL) has garnered more than 50% of the global smartphone
market during the fourth quarter, thanks to its high-end iPhone X.
For the fourth quarter ending in December, which includes the holiday shopping season, Strategy
Analytics found the Cupertino, Calif., smartphone marker had 51% global smartphone revenue
share, which was more than the rest of the industry combined. In the fourth quarter of 2016,
Apple had market share of 48.5% according to Strategy Analytics. Samsung Electronics
(SSNLF) was in second place for the December-ending quarter, with just 15.7% market share, up
from 14.5% in 2016.
“Apple iPhone generated a huge US$61 billion in the quarter, helped by solid demand for its
premium X model, and Apple now accounts for more revenue than the rest of the entire global
smartphone industry combined,” wrote Neil Mawston, executive director at Strategy Analytics,
in a press release highlighting the results of the latest research. “Apple iPhone’s average selling
price [ASP] is approaching US$800 and almost three times higher than the overall industry
average. Apple iPhone is an incredible money-making machine.”
Apple’s strong showing in Q4 comes even after it missed Wall Street expectations for iPhone
sales in the last three months of 2017, reporting it sold 77.3 million units, a drop of 1% year-
over-year and lower than the 80.2 million units Wall Street was looking for. The average selling
price of $796 was higher than Wall Street views. On a global basis, Strategy Analytics said
smartphone revenue increased 8% annually to hit an all-time high of $120 billion in the fourth
quarter.
Meanwhile, with the stock market whipsawing between steep losses and gains since the start of
February, Bank of America Merrill Lynch has been pounding the table on Apple’s stock, arguing
in a recent research report that it's a good way to weather the volatility in the stock market. And
Guggenheim Investments is predicting Apple’s “other” products—which include its Apple
Watch, AirPod wireless earbuds and HomePod, its voice-activated speaker—will surpass the
iPad as a contributor to revenue, becoming a $22 billion business by 2019.

Advertising Punch Line/Slogan

“THINK DIFFERENT”
Logo
Price
From a marketing perspective, price refers to the amount the customer has to pay or exchange for
a product or service. In the past, price were set according to the production cost. But now price is
intertwined with production, distribution, packaging, design, and branding.

Psychologists also discover that branding, economic situation and price change have a
considerable effect on how people make decision on how much to pay and whether to pay at all.

Let's take a look at how economic situation influence price. In the UK, there are explosion of
low-cost retailers including Aldi, Poundland, SportsDirect and TK Maxx. In 2008 economic
recession, the consumer confidence level fell to its lowest level since 1992. The general public
has been under austerity with massive cuts in public spending and pensions. The retailers
mentioned earlier started to provide affordable alternatives to the British consumers. They can
buy their favourite groceries such as Heinz sauce and Dove soap cheaper at Aldi than from the
likes of Tesco. Also they can buy Polo Ralph Lauren shirts from TK Maxx outlet.
Place
Place is about where and how customers can get a hold on a product and service. When
customers decide to buy something, they will buy it from either bricks-and-mortar stores or
online websites.

Depending on what type of products you are offerings, location heavily influences how
customers make a decision. If a business is selling exclusive product such as limited edition
Louis Vuitton handbag in Paris boutique store, then some people are willing to travel there to
buy it. Whereas, if you want to drink an orange juice, then you gonna find it from any local
convenient store.

Promotion
The term 'promotion' can have different meanings. According to Baines (2014) promotion is the
'use of communications to persuade' the target audience to buy products and services.
Communication can happen in a variety of ways such as mass media (tv), word-of-mouth,
personal selling, and opinion leaders.

For example, a boutique hotel pays an influential travel blogger to write an article about the
hotel. The article praises the hotel and encourages readers to experience the service there.

People
In service sector, people are inarguably crucial to the business. The importance of employee
engagement with the customers is highlighted across many businesses. Employee are the first
people whom the customers will encounter whether it's a store or call to the customer service.

Process
Process is a combination of 'tasks, schedules, activities, and routines' that allow people to use the
service successfully (Baines, 2014). Businesses plans how their customers can use the service
with minimised efforts and complications. Marketers and planners have the responsibility to
inform the customers about what they have to do during the entire process. The aim is to avoid
boredom and ensure that customers are actively engaged with the service.

Physical Evidence
Physical evidence encapsulates any thing that customers can have a proof of existence of the
business

Physical evidence does something intertwine with other pillars of the

 Market Segments
Market segmentation is the b identification of different portions of a market to satisfy the needs
of all the potential customers. Market segmentation allows a company to drive complete, unified
solutions that are in agreement with customer outreach, messaging and channel strategies for
supporting and selling to customers. This concept calls for understanding potential clients and
working to satisfy their needs (Wedel & Kamakura, 2000). Different customers have different
needs, and thus, one cannot satisfy them all by treating them alike. Customers need to be treated
according to other specific needs. A good example is the older generation and the youth. Both of
these groups have different needs and aspiration and satisfying them requires different
approaches and products. However, Apple is very innovative not only in products development
but also in market segmentation.

Apple Inc understands the need for market segmentation and thus operates in different market
segments. Apple Inc applies the strategy of studying the market and then targeting specific user
experiences. The company then builds a product around the experience accordingly. There are
two types of market segmentation. These include Psychographic and behavioral segmentation.
Psychographic segmentation is the grouping of customers as per their lifestyle. Interests,
activities, and opinions are a good way of measuring lifestyle. Behavioral segmentation, on the
other hand, is the actual behavior of the customer towards the company’s products. Some of the
variables in this segmentation method include usage rate, brand loyalty, sought benefits,
readiness to buy, and user status. For different segments to be practical, they must be accessible,
identifiable, substantial, unique, and durable. The market segmentation of apples includes
demographical bases, geographical bases, behavior bases and psychographic bases.

Each Segment target customer

Targeting is when the company decides on which target customer segment they want to go after,
which they think will be profitable for them.

For Apple, the market segmentation and target are clearly defined as

 Age group: 22 – 55
 Gender: Male and Female
 Income: Being an affluent brand, Apple targets medium to high-income individuals
 Lifestyle: Income becomes synonymous with lifestyle and since Apple has medium to high-
income individuals as segments, the lifestyle they target is to Modern, young, open to change
etc.
 Behavior: Hardcore loyalists – Once an Apple user, always an apple user!. These customer
groups become very loyal to a brand and hardly change their brand.
 services positioned for each target segment

Positioning of a brand is a marketing effort and can only be done through promotion and
advertising. A company’s brand identity, its elements, its product and its
communication, they all play an important role in positioning a product.

So, what really is positioning of apple in the market?

Below are the factors which attributed to the positioning of Apple in the market

Brand Identity: All the intangible brand assets like Apple’s brand values, its culture,
employees, Brand colors, Tagline, Tone of voice, Type of Imagery etc all these elements
contribute in forming a specific position in the minds of the customer.

Product Design and Quality: Since its inception, Apple has been rolling out products which
have been an epitome of design and quality. Apple Macintosh was the first personal computer to
have a mouse and graphical interface for a user. Apple’s iPod made the old ugly walkman’s put
to shame.

Apple has always come up with innovative technology and improved designs and this, in turn,
has led them to have a strong command in the market and ask premium prices for their products.

Advertisements: ” The less the Better”: Apple always followed “The Less the Better”
philosophy – Clear and straight messaging, and usage of minimalistic colors is what has worked
wonders for Apple. The usage of mediums to promote their messaging also plays an important
role in positioning Apple.

PRODUCT LIFE CYCLE

Often you would have seen new products coming into the market. These products gradually
evolve, receive their share of market acceptance and then eventually vanish from the market.

Sure, many products, which are decades and decades-old may still not have vanished from the
market. These are some long-living legends that are unique. However, even these products, as they
are today, are not the same as they were years back.

There is a continuous evolution happening, a product lives its life, develops, grows old and
naturally doesn’t remain the same forever.

Product Life Cycle (PLC) is a sequence of stages through which products pass. It outlines the
typical journey traversed by a product in its lifetime right since the time it is introduced in the
market to the time phases out.

The Product Life Cycle Model was introduced in the 1950s but remains relevant even today, even
though people have started producing their own variations of this model.
Introduction Stage of an Apple iPhone :-
This is the stage wherein a product is introduced to the market. Usually, the prices are kept as
low as possible to capture themaximum market share.
However, this is only in the case of mass products.

In the case of high-end products like the Apple iPhone, the strategy is different.
In the Introduction Stage of the Product Life Cycle of Apple iPhone, the price is kept high so as
to maintain the exclusivity of ownership.
iPhone users wouldn’t prefer everyone owning an iPhone, that’s why the price is so kept so as
to attract only a premium segment of the audience.
During the introduction phase, advertising, sales & marketing costs are usually high. Coupled
with low prices, this results in a period of negative profitability/loss for the company.
The first part is true for the iPhone as well.

In order to hold Keynote conferences, create advertising and marketing campaigns, it has to spend
a lot of money. And therefore in the Introduction stage of the product life cycle of Apple iPhone,
the company doesn’t make profits right from the first day.
Growth Stage of Apple iPhone :-

By the time a product enters the growth phase, the audience has already started building a certain
affinity towards it.

This is the time when product quality is maintained well so as to not let the audience down.
As far as marketing is concerned, firms start spending more money on marketingnow in order
to both reach out to a wider audience as well as to become a top-of-the-mind brand among the
primary target group.
Because of the product, its reviews, and marketing activities, the sales are expected to pick up
sharply in the growth stage.
In the case of Apple iPhone, every subsequent launch gets in some more sales and adds to the
overall sales volume.

Here, we are considering the iPhone as a whole, but if we were to delve deeper, we will realize
that every iPhone model is at a different stage of the product life cycle of Apple iPhones.
The one in the growth stage will be the predecessor of the latest model, i.e. iPhone 8, 7 and its
variants. The latest one will be closest to the introduction, the middle ones closer to maturity, and
the earliest ones closest to decline.

Maturity Stage of Apple iPhone :-

During this phase, the rate of increase in sales may decline but the overall sales are maintained
at a certain level.
By this time, many competing products enter the market. Some of them may be genuinely
good products, whereas some of them will be a replica of your own product.
Currently, the mid-generation of iPhones such as the iPhone 8 will be in the maturity stage where
sales have stabilized more or less.

Decline Stage of Apple iPhone :-

By this time, the audience move s on to better things in life. They are no longer interested in
your product because they offer nothing new as compared to other products that are currently in
the introduction or growth phase.

A product in the decline phase has become technologically obsolete.

Most common Product Life Cycle management tactics implemented by brands to make the most
out of their product during decline include lowering prices, removing after-sales support to
reduce marketing and personnel costs, or discontinuing the product.

Micro Environment
Using external environmental analysis to find the impact upon Apple iTunes with European
music delivery market mainly in Denmark • Using Porter five forces To define the Apple
iTunes business • Using SWOT analysis of Apple business and Try to define the competitors
and the competitive advantages of Apple ITunes • Giving consideration of future strategy of
Apple iTunes how to continue success

1.3 Methodology The report contains the secondary research such as Apple industry articles and
statistics. We did also use the relevant theoretical models to obtain the objectives. I will use
PEST analysis to analyze the external environment and use porter 5 forces to analyze the internal
environment. To define the rivalry posed by existing and potential new competitors and a
consideration of the continued success for Apple ITunes, I did also use SWOT model to
summarize our data. Due to the limited research recourses and shorted of report pages, I will just
make a general view of the Apple ITunes within music delivery business and try to formulate the
further developing directions. 2. MARKET BASIC FACTORS: 2.1 Market definition During
one century, there are major changes within home news and entertainment. Home music has
made the major revolution in those periods, from gramophone turn to listen the music from radio
and televisions broadcast, and then use computer and portable music devices such like IPod
provide music download through website. Since the debut of the IPod in 2001 & Apple ITunes
launched in 2002, it took the dominate position in the music delivery business and has
revolutionized the digital music industry. Apple ITunes is a kind of software that allows people
to import large number of audio files into their computers. The software could also provide
ultimate source for music, you could download the videos, movies, TV sitcoms and audio books
through web store. The ITunes software and Apple’s digital productions (IPod, IPhone, MAC
note books…) becomes the perfect match. ITunes begins with the success of an organizational
music database and jukebox quickly became a very large multi profitable music store. 2.2 Market
growth Since April 28th, 2003 Apple opened their new ITunes Music Store, it starts with an
estimated 200,000 songs could be recently download, within 8 months Apple announced that
they had sold more than 25 million songs online. On April 28th, 2004, they made their profitable
history that they managed for track sold of 70 million. Within two months the ITunes music store
went through world wide, on 1st, September, 2004, it reached to 125 million for track sold. More
and more countries were joining the chain in the ITunes music store on October, 2004, such like
Spain, Portugal, Italy, Austria, Finland… On 2005 October, due to IPod has adjusted its several
functions, it could also play video clips and TV shows, so on 2006, it changed to ITunes store
with selling also video and original broadcast. On 2007, the production company MGM Studios
also start to provide classic movie through ITunes. This widespread adoption of Apple ITunes
has deeply combined with IPod, Phone, MAC notebook… and it has a dramatic success within
music delivery business. 2.3 Market share On 2008, Itunes has put a dent of its dominating 70%
of market share, Amazon has analyst by NPD group estimates only 10% of its customer are also
current from or former ITunes.

The suppliers
Analog Devices (ADI)
NASDAQ-listed ADI is based in Norwood, MA and provides the capacitive touchscreen
controllers for the iPhones and the Apple watch. The company supplies these components from
facilities based in Ireland, the Philippines and the U.S. Back in March 2015, ADI stock
soared after Barclays reported that Apple was considering using ADI to source its then-
anticipated 3-D touch feature.

That report pushed ADI's stock price up 9.8% over the course of a day to the company's highest
levels in a decade, which indicates the impact of Apple’s business on its suppliers' valuations.

Glu Mobile (GLUU)

NASDAQ-listed Glu Mobile doesn't supply Apple with hardware but is a major provider of iOS
apps and mobile games. Valuewalk reports that “Glu Mobile makes 64% of revenue from
Apple,” implying its major dependency on Apple.

Jabil Circuit (JBL)

Jabil’s manufacturing facilities are based in China and it is listed on the NYSE. It supplies phone
casings for Apple. Jabil also makes a wide variety of electronic and manufacturing devices like
computer numerical control tools and medical device miniaturization and it also
provides services such as product ideation, design, development, and creation. Despite this
diversified set of products and service-lines, Jabil reportedly relies on Apple for
approximately 20% of its business.

Micron Technology (MU)

Micron and its subsidiary companies, like Elpida Memory, are based in multiple locations across
the U.S., Taiwan, Singapore, China, and Japan. They supply various memory modules like
DRAM, LPDDR3, and LPDDR2 for Apple devices. These modules are used by smartphones and
electronic devices to efficiently multitask and run various applications. The recent iPhone 6 uses
LPDDR3, while the company is currently testing the next version LPDDR4, which is expected to
be up to 60% faster and low on power consumption.

Murata Manufacturing Ltd.

Murata is based in Kyoto, Japan, and supplies to Apple from manufacturing facilities spread
across China, Japan, Vietnam, Singapore, and Indonesia. Apple and Samsung are Murata’s top
two clients, procuring ceramic capacitors from the company. These electronic parts are used to
control the flow of electricity in electronic devices and according to Reuters, they constitute 40%
of Murata’s overall sales towards smartphones and other electronic devices.

Nidec
The much anticipated Apple Watch comes with a special device called a taptic engine, which
produces a sensation of being tapped on the wrist. Japan-based Nidec has emergedas the key
supplier of this technology. Nidec was established in 1973 and is a global market leader in
smartphone vibration motors.

Qualcomm (QCOM)
NASDAQ-listed Qualcomm is the world leader in semiconductor, mobile and telecom products
and services. It is known to supply multiple electronic components to Apple, including Envelope
Power Tracker, Baseband Processor, Power Management module and GSM/CDMA Receiver
and Transceiver.

These are various instruments used in the devices' power management systems and in mobile
signaling. However, the most important component that is missing from Apple’s own A-chip
processor is the cellular baseband modem. Qualcomm has filled this important space for Apple
devices, offering the needed modem technology.

Samsung
With three different subsidiaries – Samsung Electro-Mechanics Co. Ltd., Samsung Electronics
Co. Ltd., and Samsung SDI. Co. Ltd. – which are located in four different countries (South
Korea, China, the U.S., and the Philippines), Samsung is one of Apple's major suppliers. It
supplies multiple components, including flash memory, which is used for storing data content;
the mobile DRAM, used for multi-tasking various applications in devices and the application
processors which are responsible for controlling and keeping the whole device running.

Despite being a competitor to Apple in the mobile phones market, Samsung uses its supplier
status to reduce its own component manufacturing costs via bulk production.
STMicroelectronics (STM)
STM is a Geneva, Switzerland-based electronics and semiconductor multinational company. It
supplies a low-powered, three-axis gyroscope and accelerometer to Apple, used to detect the
orientation and altitude of a mobile device. Along with Apple, STM’s top clients include
BlackBerry, Nokia, and Cisco. However, recent reports suggest that all may not be well between
STM and Apple.

Apple has been sued by a patent troll for allegedly infringing seven STM patents after Apple
decided to go with STM’s competitor InvenSense to procure gyroscope and accelerometer parts
for the iPhone 6.

Texas Instruments (TXN)

TI serves Apple through its multiple facilities spread across Taiwan, the U.S., Malaysia, Japan,
Mexico, the Philippines, the United Kingdom, Germany, and China. In the Apple Watch, TI is
expected to provide the current operational amplification system, which in turn, contains 30
different components itself. For iPhones and iPads, it supplies the touchscreen controller, power
management chip, and a control device. According to past reports, TI was “said to receive a
significant number of orders from Apple,” which generated "thousands of jobs" for this supplier.

Resellers
Amazon :-
Amazon.com recently became an Authorized Reseller of Apple products, meaning that Apple
specifically approved the sale of its products on Amazon and, as a result, can better control its
sales on the online marketplace.
This also means that only Amazon or other Apple-authorized sellers can sell certain Apple
devices on its online marketplace—Amazon third-party sellers cannot in the absence of
permission from Apple to do so. These devices include computers, iPads, Apple Watches and
Apple TV, and will likely include iPhones soon. This arrangement affects the sales of Apple
products on Amazon in the U.S., U.K., Germany, France, Spain, Italy, Japan and India.
In preparation for this move, Apple notified all of its third-party sellers that they would have to
apply to Apple to become authorized sellers of Apple products, or their listings would
automatically be removed by Amazon. According to an Amazon seller forum, this led third-party
sellers whose sole business was selling Apple products to complain to Amazon that this would
“doom” their business. Currently, consumers can still buy accessories for Apple products on
Amazon, like an accessories set for the Apple AirPods or the Apple Pencil, from third-party
sellers.
Undoubtedly, Apple’s goal was to both streamline the buying process for Apple products across
various platforms, but also—and perhaps more importantly—to reduce the unauthorized sale of
products on Amazon.
That the world’s most powerful brand has taken these steps is a testament to the fact that brands
must be proactive in controlling their online sales in light of today’s market dynamics. While not
all companies enjoy Apple’s brand power and the ability to negotiate terms of this nature,
companies can and should carefully curate their online sellers and significantly limit those sellers
allowed to sell on online marketplaces.

Flipkart :-
E-commerce major Flipkart is now an Apple authorised internet reseller for iPhones in India.
Until now, only Infibeam had enjoyed this status. While Flipkart is already an authorised online
reseller for Mac and iPad, the e-tailer had to source iPhones from third party vendors, prior to
this announcement.

With this partnership, Flipkart can now procure the latest iPhone 7 and iPhone 7
Plus smartphones directly from Apple, making it the only authorised online reseller for all Apple
products- Mac, iPad and iPhone, according to a report byBGR.in. Note that Infibeam can only
sell iPhones and iPads, according to the official Apple India website.

Flipkart has already dedicated a new microsite for selling the iPhone 7 from October 7.

The new Apple iPhone 7 is now a water resistant smartphone that lacks a 3.5mm audio jack. The
phone will come in two new colours and the iPhone 7 Plus will also sport a dual-camera primary
camera system

Paytm mall :-.

E-commerce platform Paytm Mall has announced a partnership with Apple to sell its latest
products like iPhone and iPad models in India. Apple products listed on Paytm Mall would have an
authorised tag, which is given only to brand authorised sellers.

The iPhone maker would promote Paytm Mall on its website, mentioning it as an authorised
reseller for Apple products in the country, Paytm Mall said in a statement. Apart from the iPhone
and iPad lineup, other Apple products are also under the purview of the partnership.

As per the deal, only authorised sellers would be allowed to sell Apple products on the platform.
Any other independent seller would be required to get authorisation from Apple before listing their
products on Paytm Mall.

"This would ensure that customers get only the genuine product at a fair price," said Paytm Mall in
its press statement. Also, the iPhone maker would promote Paytm Mall on its website mentioning
it as an authorised reseller for Apple products in India.
 "We are excited to partner with Apple to directly start selling latest editions of iPhone, iPad and
other Apple products in India. Paytm Mall is one of India's leading seller of premium mobile
phones, and adding Apple's range will further strengthen our list of offering to our customers. Our
customers will also be eligible to avail offers such as additional discounts on select credit cards and
cashbacks. All latest Apple products will be available on our platform and will come with a valid
Standard Apple Warranty," said Srinivas Mothey, Vice President at Paytm Mall.

Customers

 SAMSUNG.
 SUPERIOR DIGITAL:- Superior Digital. ...
 ST MICRO ELETRONICS.
 TEXAS INSTRUMENTS.
 MURATA MANUFACTURING LTD.

Competitors

Top Apple Competitors

Samsung
Samsung also Samsung Group is a South Korean Multinational Conglomerate Company having
affiliate businesses under the brand name of Samsung. Samsung Group has a huge product line
i.e. consumer electronics, semiconductors, telecommunication equipment, home appliances,
automotive and many more. Samsung is founded in 1938 by Lee Byung-Chill and currently in
the top 10 most valued companies in the world.
Samsung is the one of the Top competitors of Apple in the Smartphones segment. Samsung is
the leader in smartphone market share. Galaxy smartphones is considered the pioneer in the
industry. Apple iPhone and Samsung Galaxy are strongly competing to increase market share.
One way another it greatly affected the iPhone market share. Samsung is able to produce phone
with affordable prices. In laptops segment, Samsung has a decent market share but not among
the top apple competitor in laptop segment.

Dell
Dell named after Michael Dell. It is an American multinational computer company that deals in
manufacturing, selling, repairing of computer and related parts (products and services). Dell is
strong competitors of Apple in the Laptops segment. This rivalry started many years ago when
Dell introduced a competitive product Dell DJ and become one of the early competitors of iPod.
Few years back Dell has launched XPS laptops product line which are competing with MacBook
Pro.

Though dell is competing with Apple in the PC market, Apple has more loyal customer base.
Over the year Apple Inc. build a strong brand awareness in the mind of consumer in all the
segments they are dealing.
 HP
Hewlett-Packard Company HP (HPQ) is a multinational Information Technology Company. HP
was founded in 1939 by William R. Hewlett and David Packard. HP is dealing in computers,
laptops, printers, scanners, monitors and 3D printers. Few years back, Hewlett-Packard split into
two different companies one is Hewlett Packard Enterprise and HP Inc.

HP Inc. and Lenovo are top companies having almost 22% market share followed by Dell and
Acer and Apple. HP Inc. is providing acceptable quality products with affordable prices. On the
other hand Apple is providing high quality products with premium pricing. HP Inc. is a strong
Apple competitor for example specter and MacBook. Hewlett-Packard focused on outside US
while Apple is concentrating on US Market. HP is among Top Apple Competitors.

Lenovo
Lenovo or Lenovo Group Ltd. is multinational technology company headquartered in Beijing,
China and North Carolina, United States of America. Lenovo is a global leaders that provides
Laptops, Tablets, Desktops Computers, Servers and software. Lenovo is on Fortune 500 and
consider top brands in the world. The reason behind its growth is not only organic but also
acquisition of IBM personal computer business and Motorola mobility.

Sony

Sony Corporation is multinational Japanese corporation headquartered in Minato, Tokyo. Sony

was founded in 1946 by Masaru Ibuka and Akio Morita. Sony is known for gaming playstations,
consumer electronics, Films, Telecommunication equipment, computers and financial service
sectors.

Sony brand is known for its playstation which is have a larger chunk of market share i.e. over
50%. Sony is one of the Apple competitors based on their laptops and smartphones. Sony Vaio
 and Xperia XZ android phone can be considered one of the alternatives of Apple MacBook and
iPhone.

 Asus
AsusTeK or Asus is a multinational computer and phone hardware manufacturer and distributor.
Asus provides the world’s leading personal computers, mother boards, monitors, mobile phones
and networking equipment.

In the year 2017, Asus won more than 4500 awards for providing cutting edge, innovativeand
high quality products. Search for Incredible brand spirit, Asus has almost 17000 employees
which include 5000 R&D professional. Asus is global player in the IT market. Asus is one of the
competitors of Apple. It is giving a closer competition to Apple in design and value.

1. Microsoft
Microsoft is an American Technology company which revolutionized the information
technology in past decades. Founded by Bill Gates in 1975 it is known for Microsoft windows
product line. In the past 4 decades Microsoft achieved its objectives in the visionary leadership
of Bill Gates.

MSFT product line includes windows, office, gaming Xbox, surface and mobiles. Microsoft is
one of the leading competitors of Apple in many segment i.e. operating system, computers and
smartphones.

1. Google
Google is a well-known American technology company founded in 1998 by Larry Page and
Sergey Brin. Google is known for search engine, online advertising, cloud computing, Google
maps, Operating systems, Desktop and Mobile application.

Google is a primary competitor to Apple in the operation system segment. Google strategy is
focused on mass penetration as android hold 84.7% of market share. On the other hand Apple
iOS having 11.7% market. Windows and Blackberry phones having 8 and 3.6 respectively.

In the smartphone segment Google Pixel is the Top Apple competitor. Both iPhone X and
Google Pixel 2 are high end smartphone and competing in the market to attract customers.
iPhone X is has a better scree design and wireless charging support but Pixel 2 having better
camera and smart assistant. These two brands are competing to increase market share and
generate revenue.

1. Huawei
Huawei founded in 1987 is a Chinese multinational company that provides telecommunication
equipment and consumer electronic products. Huawei is operation in more than 170 countries,
having more than 180000 employees.
 Huawei is the top most competitor of Apple iPhone. In the worldwide smartphone market
Huawei is giving a tough time to Apple iPhone. Samsung is still the leader the smartphone
market having more than 20% market share. Huawei has introduced “GPU Turbo” technology
which will increase brand reputation of Chinese Tech Giant. Apple is also a game changer in
innovative technology and having a strong brand loyalty and trust. Both these brands Huawei
and Apple have fierce competition in the smartphone market.

1. OPPO Electronic Corp.

Oppo Electronics Corporation also Oppo is a Chinese consumer electronics and mobile
company. Oppo was founded in 2001 and became Top smartphone brand. It globally ranked no.
8 in the year 2016. In 2017, Oppo ranked no. 4 worldwide in the smartphone segment. Oppo is
providing cutting-edge photography experience to almost 200 million customers globally. Oppo
is one the apple competitors in the smartphone segments.

Macro Environment
Apple Inc Company, started by Steven Jobs, Steve Wozinak and Roynald Wayne is 30 old ages
old now ; Steven Jobs is the adult male behind this successful company. Apple has expanded
from computing machines to consumer electronics over these old ages and batch of alterations
has occurred during these periods, which evidently happens in any originative industry. In the
month of January 2007 the name was changed from Apple Computer Inc to Apple Inc Officially.
Some of the merchandises of apple over a decennary are power Mac g4 regular hexahedron, I
pod, Mac book pro, I phone and the latest 1 is the I pad.
In the selling system economic environment plays a major important function. It is concerned
chiefly about the consumer buying power and disbursement forms. Harmonizing to high
economic growing assures higher criterions of employment and income, which leads to selling
roar in many industries. Selling programs are influenced by many economic points such as
current income, monetary values, nest eggs and recognition. The major tendencies of income and
consumer disbursement in the market should be known to the sellers.
The economic factors of Apple Inc gross in 2008 was less when compared to 2009. The gross
growing of 2009 was projected to increase by 10 % . The gross revenues of I phone and I pod
increased tremendously during this period. The iPod has contributed majorly for apple
computing machines. The gross revenues of personal computing machines decreased about 8 %
in 2009. They have updated the package ‘s in new iphone. Apple television which was 40gb has
been changed to 160 sarin during sept 2009. They upgraded the imac by replacing the cold
cathode fluroscent lamp with quicksilver free LED. These frequent alterations in the
merchandises made the consumers to purchase more.
Since 2006 Apple Iraqi National Congress has set and met the of import ends to cut down the
impact on the environment. Every merchandise which is shipped has assessed the full life rhythm
of green house gas emanations ( GHG ) . Green house gas emitted from the production,
conveyance, usage and recycling of merchandises is over 95 % and the remainder 5 % is used for
installations. Everyday operations and environmental impact is managed carefully by apple.
Energy ingestion by them is cut downing twelvemonth by twelvemonth to command C
emanations foot print. Apple has introduced a renewable energy in the twelvemonth 2008 which
has converted 100 % of energy to renewable beginnings. They have introduced recycling and
composting plans to cut down the waste. Continuous environmental, wellness and safety
directions are done to better the merchandise, procedure and services.
Advanced thoughts create a new merchandise, altering the old merchandise by updating new
package ‘s. Factors and tendencies related to inventions that affect the development of new
merchandises or the selling procedure. New engineerings make the consumer ‘s to purchase the
merchandise peremptorily. Advanced engineerings can convey forth latest industries, gives rise
to new concern and progress merchandises for bing concern. New engineering factors can
besides make negative sides for concern. To better their places sellers should invariably
supervise the vocational environment to look for better chances.
Apple Iraqi National Congress is chiefly covering with computing machines and electronic
appliances so engineering plays an of import function. They update their package ‘s on a regular
basis so people tend to purchase the new version one. In the twelvemonth 2009 apple has
updated many specifications like, desktops and mac notebooks earn epeat gold position, mac
mini, imac and mac pro has met the energy star 5.0 specification, mac book pro has been updated
by built in batteries and iphone 3GS has a power arranger which performs planetary energy
efficiency criterions.
Apple Iraqi National Congress is Planing to present the latest nomadic device – Ipad which is
something really thin and has multi touch screen where you can see the web, electronic mail,
exposures and pictures within seconds. It is really convenient to manage besides. Largely all the
functionalities will work in any orientation. This manner you can look into your mails, messages
and confabs with your friends instantly.

Demographic forces
 Although Apple is considered a premium brand and many products come with a premium price
tag, teens are consider one of the primary Apple target market demographics. This is because
teens are attracted to the value of an iPod and this translates into wanting iPhones, Macs, and
other products later on in life.
In just 7 years, Apple has dominated with over 60% of the total smartphone industry.
After the 2015 freefall of their stock value, there are some definite stormy clouds on the horizon.
A majority of Apple’s target demographics admit that their loyalty is blind to the brand. Only
about half of iPhone users say they’re impressed with their phone. Windows phones actually
outsell the iPhone in two dozen countries.

Who Are the Best Customers for Apple?

 54% of consumers who purchase an iPhone say that their last phone was also an iPhone.
 1 in 4 people say that they’ve purchased Apple products because their friends also had an
Apple product.
 For people who have purchased multiple Apple products in the past five years, less than
30% say that the iPhone is the best phone on the market today.
 Just 0.3% of people in a recent survey stated that the interface created by Apple is the
reason why they prefer the brand’s products.
 The average household income for Mac owners is $98,500.
 2 out of every 5 Mac owners is younger than 34.
Apple is a premium brand that is associated with a premium income level. It’s a brand that
everyone may want, but not everyone can afford. For this reason, the best customers for Apple
tend to be younger and wealthier, so Millennials tend to be the next preferred targeted
demographic after teenagers. Millennials are hooked into technology like no other generation,
exploit the benefits Apple can provide, and this leads to more wealth for them and more sales for
Apple.

Why Businesses And Educators Are Attracted to Apple

 Owners of iPads, when compared to users of laptops or desktops, place larger orders
when shopping online.
 Users of iPhones place larger orders than those on Android and Blackberry devices.
 Apple users who shop for travel options online may spend as much as 30% more per
night for rooms and other travel needs when compared to other users.
 Apple owners are about 50% more likely to have arranged an online travel purchase
within the last month.
 One-third of Apple’s retail sales went to a household that earned at least $100,000 in the
previous year. At the $125,00 salary level, Apple’s target market demographic is
overweight by a 4:1 basis when compared to Android products.
 People who own Apple products tend to be more urban, have a college education, and
follow technology news on a regular basis.
 The average Apple target customer will state that they are addicted to digital devices and
use an Apple product to help them maintain a professional or managerial position.
 With Apple, the value proposition that is being offered is the key point that each targeted
demographic must consider. The iPhone only costs about $50 to produce, for example, but with
cellular providers not subsidizing the phones any more, this means the average consumer will be
forced to shell out about $650 to get an updated model each year. This limits the number of
people who will ultimately see the value of owning such a device when a household could
purchase 4 Chromebooks and still spend less than 1 iPhone.

The Trends of Apple’s Target Market Demographics

 Men outnumber women on a 2:1 basis when it comes to purchasing Apple products.
 The average age of an Apple customer is 35-44.
 1 in 4 people in the 18-34 age demographic express a strong interest in purchasing an
Apple product at some point in the next 6 months.
 Apple users are 94% more likely to be affluent than others who utilize mobile devices on
a regular basis.
 Apple has done an excellent job at database marketing for their new products and
services. The Apple app store routinely sells more than $1.5 billion worth of downloads
annually. As long as the core customer base is still intrigued by Apple and its new
products while being able to maintain their own wealth, then this record-setting brand can
still look forward to a bright future. If those Apple target market demographics change,
however, the storm clouds that seem to always be on the horizon could turn dark and
gray.

Economic factors
Most of the economic external factors in Apple’s remote or macro-environment create
opportunities. This aspect of the PESTEL/PESTLE analysis model indicates market and industry
conditions that impact firms. In this external analysis case of Apple Inc., the following economic
external factors are the most significant:

1. Stable economies of developed countries (opportunity)

2. Rapid growth of developing countries (opportunity)
3. Increasing disposable incomes among target customers (opportunity)

The economic stability of developed countries creates opportunities for Apple’s expansion.
However, the rapid growth of developing countries is a more significant economic external
factor in this PESTEL/PESTLE analysis case, in terms of support for growing the technology
business. For example, the high economic growth rates of Asian countries are opportunities for
Apple to increase its revenues through sales in these foreign markets. In relation, higher
disposable incomes create more opportunities to sell the company’s relatively high-priced
technology products. In exploiting these economic opportunities, it is essential to consider
competitive forces in the international market, as described in the Porter’s Five Forces analysis
 of Apple Inc. These external strategic factors indicate growth potential for the corporation and its
competitors, especially large multinational firms like Samsung. Based on this part of the
PESTEL/PESTLE analysis framework, speed and effectiveness are critical in Apple Inc.’s
growth and expansion efforts because competitors also target these same economic opportunities.

Natural/physical forces
Apple Inc. is an American intercontinental organization with a hub on conception and fabricating
consumer electronics and intimately connected software products. The Company began as “Apple
Computer,” best known for its Macintosh personal computers in the 1980s and 1990s. Despite a
strong brand, rapid growth, and high profits in the late 1980s, Apple almost went bankrupt in 1996.
Then Steve Jobs went to work, transforming Apple Computer into “Apple Inc.” with innovative
non-PC products, starting in the early 2000s. As of November 2010, Apple operates over 300
stores worldwide and online shop where its products are sold.
Threat of Substitute It focuses on the alternative products available in market with low price and
better performance. Apple produces music players, PCs, mobile phone and tablet PCs. There are
many other companies that are producing same products with lower price. The competitions
between the existing companies in same industry are high. The competitions result in margin,
pressure on selling price. Apple’s products are higher in price than its competitors so threat level is
high for Apple. Apple produces various products. Each products and services have various
competitors. However, Macintosh/MacBook/MacBook Air/IMac thanks to creative marketing and
several innovative computer products, Apple became the third-largest PC vendor in the U.S.
Competition • Hewlett-Packard is most recent leader of PC manufacturing Industry. • Dell who
held the second-largest market share with 12.6% of worldwide PC shipments for 2011. • Lenovo,
China-based, vaulted into the front of ranks od PC venders in 2005 when it acquired IBM’s
memory-losing PC business for $1.75 billion • Acer, Taiwan-based, Acer bought Gateway, a
leading U.S. PC brand, and became the third-largest PC vender in the world.

Technological factors
The technological external factors in Apple’s remote or macro-environment generally provide
opportunities for the enterprise. In this aspect of the PESTEL/PESTLE analysis framework,
current technologies and technological trends are evaluated based on their effect on business
conditions. In Apple’s external analysis case, the following technological external factors are the
most significant:

1. Growing cloud computing demand (opportunity)

2. Increasing technological integration in businesses (opportunity)
3. Growing mobile market (opportunity)
4. Growing technological capabilities of other firms (threat)
 This PESTEL/PESTLE analysis of Apple Inc. identifies the growing demand for cloud
computing as an opportunity to grow the business. The company now offers cloud services,
although to a limited extent. In exploiting this opportunity, together with support from Apple
Inc.’s corporate structure, developing an expanded cloud infrastructure could maximize the
profitability of the business in offering cloud-computing services. In relation, the external
strategic factor of increasing technological integration presents the opportunity to enhance the
company’s services and grow the business by offering its technological goods and services to
more customers, including organizations. Furthermore, this PESTEL/PESTLE analysis includes
the growth of the mobile market as an opportunity for Apple Inc. to gain higher revenues,
including revenues through the App Store and related digital content distribution platforms.

Political and legal forces

The political external factors in Apple’s remote or macro-environment mainly present
opportunities. This aspect of the PESTEL/PESTLE analysis model indicates the influence of
governments and related organizations on businesses. In Apple’s case, the following are some of
the major political external factors:

1. Improving free trade policies (opportunity)

2. Stable politics in developed countries (opportunity)
3. Trade disputes, especially between the U.S. and China (threat)

Better overall free trade policies are created over time. This external strategic factor increases the
opportunities for Apple Inc. to distribute more of its products around the world. This
PESTEL/PESTLE analysis also identifies the stability of the political landscape of developed
countries as an opportunity for Apple to grow, considering the reduced political problems
affecting business operations in these countries. In spite of these trends that present
opportunities, the political external factor of trade disputes, especially between the United States
and China, creates a threat against the company’s potential growth and the global sales revenues
of its products, such as consumer electronics. For example, growing China-U.S. tensions could
lead China to impose higher tariffs on imported electronic components used in Apple’s product
assembly. Based on this part of the PESTEL/PESTLE analysis, Apple can improve its
performance by taking advantage of political opportunities in its remote or macro-environment,
although caution is needed to ensure stability despite trade disputes.
Legal forces :-
The legal external factors in Apple’s remote or macro-environment create threats to the business.
This aspect of the PESTEL/PESTLE analysis framework indicates the impact of laws or
regulations on businesses. In Apple’s case, the following are the most significant legal external
factors:

1. Increasing privacy regulations (opportunity & threat)

2. Legal challenges against Apple’s policies and practices (threat)
 Governments’ pressure on privacy in the digital age has resulted in increasing privacy
regulations on businesses like Apple Inc. This legal external factor is a threat that could impose
costly regulatory compliance requirements and more limits on the technology company.
However, this PESTEL/PESTLE analysis identifies the same external factor as a trend that
presents the opportunity for Apple to boost its business through enhanced privacy measures. In
addition, the company faces legal challenges related to its practices and policies on after-sales
service and other areas of the business..

Social and cultural forces

Apple’s business is subject to the effects of social or sociocultural trends. This aspect of the
PESTEL/PESTLE analysis model points to the social external factors that influence consumer
behaviors and expectations. In Apple’s case, the following sociocultural trends are significant in
the remote or macro-environment:

1. Rising use of mobile access (opportunity)

2. Increasing dependence on digital systems (opportunity)
3. International anti-Apple sentiments (threat)

The rising use of mobile access is an opportunity to grow Apple Inc.’s revenues. This social
external factor relates to the increasing demand for devices like smartphones and tablets. This
PESTEL/PESTLE analysis also points to the increasing dependence on digital systems, which is
another sociocultural trend that creates opportunities for Apple to sell more of its products based
on higher demand. Despite these opportunities, the company faces the social threat of opposition
against its business operations. Anti-Apple sentiments are mounting, questioning business
practices, such as the company’s lawsuits against third-party repair service providers that repair
products like the iPhone and MacBook. In the PESTEL/PESTLE analysis context, these
sentiments have the potential to reduce brand image and consumer confidence in the
corporation’s technological products. These sociocultural factors emphasize the importance
of Apple Inc.’s corporate social responsibility strategy. Such strategy helps satisfy stakeholders,
including customers and governments. In addition, Apple Inc.’s corporate culture is a relevant
factor because it influences the quality of service provided to customers. The company’s internal
cultural approach must align with the sociocultural trends influencing the global market. In this
part of the PESTEL/PESTLE analysis of Apple Inc., opportunities for growth, as well as threats
against the business, are identified. These strategic concerns require that the company continue
improving its policies and practices, as well as its approaches to technological innovation.
Also, Apple Inc.’s marketing mix or 4Ps must include strategies that match such social external
factors.

Demographics
Apple, the latest tech company to reveal its workforce demographics, said Tuesday that its U.S.
staff is 55% white, 15% Asian, 11% Hispanic and 7% black. Two percent of workers are
multiracial, and another 9% did not declare their race.

In regards to gender, Apple’s global workforce is 70% male and 30% female. Within tech-related
jobs specifically, the disparity is 80% male and 20% female.

Apple’s employee-demographic trends are similar to those of other major tech companies,
several of whom, like Google, Facebook and Twitter, have also recently released diversity
reports. Like the other firms, Apple included in its report a public commitment to increase the
diversity of its workforce.

“As CEO, I’m not satisfied with the numbers on this page,” Apple head Tim Cook said in a letter
accompanying the figures. “We are making progress, and we’re committed to being as
innovative in advancing diversity as we are in developing our products.”

In addition to race and gender, Cook said that Apple celebrates other types of diversity, like
people with disabilities as well as varying sexual orientations.

Disruptive innovations affecting the organization

Google and 3M have been able to consistently come up with truly disruptive innovations that
have created new categories. Products like Google Maps, which funds a satellite imagery service
by selling ads to hardware stores and the like, isn’t the type of idea that thrives in a centralized
structure.

Both companies have versions of the 15% / 20% rule which encourages experimentation on a
massive scale, rather than a laser like focus on a few blockbuster products. Other organizations
pursue disruptive innovation with internal VC arrangements, innovation jams, hackathons,
innovation days and yes, innovation departments.
So while Apple’s approach has worked magnificently in the past, that’s no guarantee that it will
succeed in the future. Before Mr. Cook dismisses workable approaches that other companies
have adopted successfully, he might want to look around a bit more.

Which brings me to something else Tim Cook said in the Businessweek interview about what
Steve Jobs told him when he handed over the reins

Perhaps Jobs knew that, after him, Apple would have to become a very different company, that
they would have to find their own way, set their own mark and operate differently.