Apple Inc.

Apple Inc (Apple) is a multinational technology company funded in 1976 by Steve Jobs,
Steve Wozniak and Ronald Wayne and now currently owned by CEO Tim Cook and two main
institutional investors; Vanguard Group and BlackRock, Inc. The technology company is
headquartered in Cupertino, California, USA often referred to as the “Apple Park” or the
“Apple Campus 2”. The iconic company designs, manufactures, and markets smartphones,
tablets, personal computers, and wearable devices. The company offers software
applications and related services, accessories, and third-party digital content; Apple's
product portfolio includes iPhone, iPad, Mac, iPod, Apple Watch, Apple TV, Airpods and
Apple Music.

Apple’s mission is to create high-quality, innovative products and services that enhance the
lives of its customers and maintain a strong brand identity focused on design and user
experience. The diversified technology company is involved in various aspects of the tech
industry. Such as customer electronics, software, services, retail, digital content creation,
hardware components, ecosystem, research and development.
Apple operates in the consumer electronics and technology market. This includes
smartphones (iPhone), tablets (iPad), personal computers – PC (mac), smartwatches (Apple
Watch), and various software and services like iOS, macOS, App Store, iTunes, and iCloud.
Apple also offers streaming services such as Apple TV+, Apple Music for an additional price.
Apple’s market presence is global and its products are known for their design, performance,
and ecosystem integration. Apple (April 1, 1976) competes with innovative and quickly
enhancing, fast growing companies such as Samsung (March 1, 1938), Google (September 4,
1998), and Microsoft (April 4, 1975). Samsung came out 38 years before Apple so they
predictably had the head start which ensured customers to be loyal to Samsung from the
start however when Apple came out, it was new and innovative so consumers liked the new
ideas and it became popular very quickly.
Apple is considered innovative for several reasons; one of the main reasons being product
design. Apple places a strong emphasis on sleek and user-friendly product design. The
aesthetic appeal of their devices often sets them apart in the market to competitors. An
example of this is Apple’s Air pods, the design of Air pods is minimalistic and sleek,
contributing to a modern and stylish appearance. The absence of wires and the small,
compact form factor makes them visually appealing. Famous celebrities such as Super
model Bella Hadid, Dua Lipa and Sarah Jessica Parker have been seen wearing air pods max
making them appear to be even more of a fashion statement; especially since these 3
women are seen as fashion icons by fans and regularly linked with Vogue. Although a
substantial number of users appreciate the aesthetic and functionality of Apple’s products,
there is still numerous criticisms on various aspects of the product design. Common areas of
criticism include: lack of customization, repairability and environmental impact. Regarding
lack of customisation, users criticize the limited user-configurable settings, particularly in
terms of software appearance and behaviour. However, Apple has always traditionally
maintained a more controlled and standardized approach to product design, emphasizing
simplicity and a constant user experience across its devices. While Apple remains committed
to this design philosophy, it has introduced some features and options over time to address
the desire for customisation. Such as iOS customisation – users can now personalise their
home screens with widgets, choose app icons and themes in certain apps, and create
custom app folders, app shortcuts and automation – this feature enables users to set up
personalized actions that can be triggered.
Supplementary, another reason why apple is recognised as innovative is due to its
Ecosystem integration. Apple created a seamless ecosystem where its products and services
work together cohesively. This integration, such as between iPhone, iPad, Mac, Apple
Watch, and iCloud enhances the overall user experience and it’s a key strength of the
company, creating a seamless and interconnected experience across its range of products
and services.
Apple’s most sold product is the iPhone ever since its introduction in 2007 with 1.4 million
sold in that year and 225 million sold in 2022. In the first quarter of 2009, the iPhone sales
were responsible for about a quarter of Apple’s revenue and in the fourth quarter of 2023,
Apple generated 43.81 billion U.S. dollars in revenue from the sales of iPhones alone.
The reason for the iPhone being so popular and high in demand is due to its regularly
innovated new updates and technology. The iOS operating system (designed exclusively for
Apple devices) is known for its simplicity and ease of use. The iPhone’s aesthetic appeal,
build quality, and use of premium materials contribute to its popularity – such as the new
iPhone 15 (2023) is invented with 1mm of titanium. The iPhone 15 Pro is the first iPhone to
feature an aerospace-grade titanium design, using the same alloy that spacecraft use for
missions to Mars. The reason for iPhones to be considered innovative are due to many
reasons such as the ground-breaking touchscreen interface in 2007. The original iPhone
introduced a revolutionary touchscreen interface, replacing physical keyboards with a
responsive touch screen display; This design set a new standard for smartphones. While the
original iPhone was ground-breaking, it faced a lot of criticism such as the high price. The
initial cost of the original iPhone was relatively high compared to other mobile phones on
the market at the time; iPhone retail: $600, compared to well-known brands such as
BlackBerry which at the time would be Retail BlackBerry Pearl $350-$400. This deterred
customers and was a disadvantage of innovation causing less customers to be drawn to the
product as they couldn’t afford it. Another initial drawback was that there was 3G
connectivity, at the time of the original iPhones release, it only supported 2G (EDGE) data
connectivity, which was slower than other devices. The limitation affected internet browsing
speeds and data-intensive applications.

In 2008, Apple released the launch of the App store and it transformed the way people used
smartphones. It created a centralised marketplace for third-party applications, fostering a
vibrant ecosystem of developers and apps. The ecosystem has encouraged innovation and
competition among developers, leading to a diverse range of applications. The process of
discovering, purchasing and downloading apps for the user became simplified. The App
Store has hosted a wide range of innovative apps across categories such as productivity,
entertainment, health and more. This diversity has contributed to the transformation of
how users engage with digital content and services. However, while the App Store has been
ground breaking, it has also faced criticism particularly regarding its policies on app
distribution, fees and content moderation. These aspects have sparked discussions about
fairness, competition and control within the app ecosystem. With regards to the fees, the
App Store’s main significant source of criticism is Apple’s commission structure. The
company typically charges a 30% commission on in-app purchases and subscriptions. This
has led to concerns among developers, particularly those offering digital goods and services
(m/e-commerce). They argue that the fees are too high and they affect their revenue
streams. To combat this, in November 2022, Apple announced the App Store Small Business
Program, reducing the commission rate to 15% for developers who earn less than
$1,000,000 in annual net sales on the App Store. This move aimed to support small and
independent developers.
Innovation has played a pivotal role in Apple’s success and growth and there are several
ways in which innovation has helped apple such as; product differentiation, brand loyalty,
software and services revenue. Apple’s culture of innovation coupled with a user-centric
approach, has been a driving force behind its sustained success in the technology industry.
The company’s ability to anticipate and meet customer needs through pioneered products
and services has positioned itself as a leader in the market.
Apple’s commitment to innovation has allowed the company to differentiate its products
from competitors. Unique design, cutting-edge technology and features like retina display
(face ID) and Touch Bar set Apple products apart in the market. Additionally, Apple’s
consistent introduction of innovative products and features has fostered strong brand
loyalty. Customers often perceive Apple as a brand that pushes boundaries as well as
delivering high-quality, reliable and user-centric products. Furthermore, as Apple’s focus is
expanding services such as; Apple TV+, Apple Arcade and iCloud, it represents an innovative
shift toward recurring revenue streams beyond hardware sales. This diversification of
innovation contributes to the company’s financial stability.
Innovation and enterprise have been exceptionally beneficial for Apple as the company’s
commitment to innovation has played a crucial role in its success and enduring relevance in
the technology industry. One of main reasons innovation has been advantageous for Apple
is due to vertical integration. Apple’s control over both hardware and software development
allows for greater optimization and performance. This vertical integration contributes to the
quality and reliability of Apple’s products. As Apple has a strong emphasis on controlling the
various stages of its supply chain from design and manufacturing to distribution and retail,
Apple creates a cohesive ecosystem that spans hardware and software. One of the notable
aspects of Apple’s vertical integration is its design of custom processors, such as the A-series
chips for iPhones and iPads and the M1 chip for Macs. Designing its own chips (in-house
chip design) gives Apple greater control over performance, energy efficiency and the
integration of hardware software. Apple also designs its own operating systems such as iOS
for mobile devices, macOS for Mac PC, watchOS for Apple Watch and tvOS for Apple TV+.
This allows Apple to create a consistent user experience across its product line-up.
Another one of the main reasons innovation has been advantageous for Apple is due to its
Marketing and Branding. Apple’s marketing strategies include high-profile product launches
and advertising campaigns which create anticipation and contribute to the brand’s image as
an innovative and aspirational tech company. Apple’s marketing materials are known for
their simplicity and clarity. The company conveys its message concisely, focusing on key
features that benefits in a way that is easily understood by consumers. As Apple is an
international company, their marketing has reached global appeal. The universality of its
messaging contributes to its success in diverse markets, transcending cultural and
geographical boundaries. Additionally, Apple is known for its meticulously planned and
highly anticipated product launches. These events generate significant media coverage and
public attention, creating a sense of excitement and anticipation around new Apple
products. One notable example is the launch of the iPhone X in 2017. The key elements of
the launch include the announcement at Apple Park. The iPhone X was unveiled on
September 12 2017 at the Steve Jobs theatre. This new venue added to the sense of
exclusivity and grandeur surrounding the launch. Also, the iPhone X marked the 10 th
anniversary of the iPhone so Apple represented it as a special edition to celebrate a decade
of innovation in smartphone technology. The new iPhone also came with several ground-
breaking features such as super retina display, face ID facial recognition technology and the
removal of the traditional home button. The face ID feature was demonstrated live on-stage
b Apple executives showcasing the device advanced abilities. The iPhone X launch
exemplifies Apple’s ability to create anticipation around its products; leveraging a
combination of advanced technology, exclusive venues and strategic marketing.
It’s safe to say that Apple has benefited significantly from innovation and it has been
extremely good for its business in various ways such as the development of their iconic
products; iPhone, iPad and MacBook. They have not only revolutionized industries but also
generated substantial revenue for the company. Apple’s focus on user-friendly design and
seamless integration between hardware and software has created a loyal customer base
and enhanced the customer engagement which has consequently led to Apple’s successful
recurring revenue. However, there have been several risks and disadvantages of innovation
which have affected Apple which have led to a loss of customers in the past and less
revenue in some years.
For example, constant innovation sets high expectations for each product release. If a new
product or feature doesn’t meet the anticipated standards, it can result in disappointment
among users and investors which can also result in poor product iterations. The pressure to
innovate regularly may lead to rushed products, potentially resulting in products that are
not fully mature with multiple issues. An example of this is in the MacBook Pro’s keyboard
design in 2016-2019. The butterfly keyboard received negative feedback such as dust and
debris sensitivity. The design was more susceptible to dust and debris, impacting the
keyboards functionality by making it easily dirty and slower as keys got stuck. However, in
late 2019, Apple reverted their butterfly keyboard mechanism to the traditional scissor one
which solved the dust and debris complication.
Apple’s Face ID technology faced challenges with the widespread use of face masks during
the COVID-19 pandemic. Since the Face ID relies on recognizing user’s full face, the mask
obstructs a significant portion of it leading to difficulties in successful authentication. To
address this issue, Apple introduced a feature in iOS updates that allows users to quickly
access the passcode entry screen when Face ID detects that the user is wearing a mask. This
provides a convenient and secure way for users to unlock their devices without removing
the mask. While this solution is a practical workaround, Apple didn’t directly adapt Face ID
to work with partially covered faces; instead it acknowledges the current limitations and
provides an alternate method to unlock the users phone.
Apple has employed innovation in several ways to navigate and excel in a changing market
such as the creation of wearables and health technology and environmental initiatives.
Apple has successfully entered the wearables market with products like the Apple Watch
and Airpods. The emphasis on health-related features, such as fitness tracking and health
monitoring, aligns with the growing interest in personal health and wellness. Additionally,
Apple has made strides in environmental sustainability by committing to using recycled
materials in its products, reducing carbon footprint and they’re working towards making its
supply chain and products more environmentally friendly.
In summary, innovation is a core element of Apple’s success strategy enabling the company
to lead and drive sustained growth as well as retain customers in the fast-paced tech
industry. Innovation is not just a strategy for Apple; it’s a fundamental part of the company
as it drives the company’s success and ongoing relevance in the tech industry. Innovation
has shaped Apple’s future success ever since the first iPhone in 2007 to the first Air pods in
2016 to the first iPhone with Face ID in 2017 and first iPhone built with titanium in 2023.
Innovation is extremely predominant to Apple as it’s a driving force for Apple’s success in
the market and is the main reason for the company’s sustained revenue.
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