Apple 2008

Topics: Apple Inc., Marketing, Operating system Pages: 5 (1152 words) Published: December 5, 2014
Exclusive Summary:
The whole paper mainly aims at providing recommendations toward the problems addressed. In the first three parts, it concentrates mainly on stating the problems that Apple is facing and analyzing the facts that are attributed to the problems. In the recommendation part, it illustrated pointed recommendations toward the problems. Specifically, they are recommendations about how to retain Apple’s innovative advantages and how to keep its products specificity. From another perspective, it also contains recommendations that help Apple solve the problem of “gray market.”

Problem Statement:
At first, from 1984 to 1997, administrated by three different CEOs, Apple shifted its major operating strategies and core markets several times. It turns out none of these changes made efforts. Apple suffered loss of revenue and loss of market share for over thirteen years. Second, Apple is losing its customer loyalty and the specificity of its products by installing more and more Microsoft and Intel software onto its products. Third, in 2008, as more than a quarter of its iPhones fell into “gray market,” Apple suffered a certain amount of loss of service share revenue. At last, more and more smartphones from Apple competitors are entering the market, which brings iPhone and iPod a lot of pressure.

Summary of Facts:
There are several facts that are associated with the problems addressed. First, former CEOs tried to increase Apple’s sale and expend its market share by reducing cost and reinvigorating core markets. However, it turns out these attempts lost more profits and market share. On the other hand, Apple outsourced the manufacturing of its most products to third party. Apple also focused on the interoperability with other software like Microsoft and Intel. By 2008, iPod, iMac and iTunes they were all able to interoperate with other operating systems and software. Before that, all Apple products could barely be synchronized with its own products. Besides, by the end of 2007, more than 25% of the iPhones sold fell into the “gray market” in several countries that iPhone were not authorized selling there. Consequently, Apple lost as high as one billion service share revenue. Moreover, in 2008, many mobile operators and handset makers collaborated, launching smartphones into the market.

Analysis of Facts:
Reviewing the progress that Apple made, every success is either accounted for its distinguished features that differentiates it from competitors’ products, or its innovative products like iPod and iPhone. Consequently, Apple’s first priority is to retain its innovative advantages. At the same time, Apple needs to concentrate on distinguishing its products from the ones from competitors. Once upon a time, education and desktop publishing was Apple’s core market. However, as technology processes, more and more home buyers are becoming the consumers of Apple products. Since Apple products are not as accessible to the operating systems (Microsoft and Intel) that were most widely used as its competing products are, it is impractical for Apple to improve profit by reducing cost. Therefore, retaining innovative advantages is the most effective strategy that Apple needs to take.

From iMac to iPod, from iPhone to iTunes, every product is the result of Apple’s innovative ability. Every new product that Apple launched was based on Apple’s exclusive operating system. During the process, Apple built stable customer loyalty and market share. The more important thing is every launch of new product is a leap for Apple, making it lead to market trend and gain the initiative. However, if Apple makes its products cable of interoperating with the most widely used software, it would fade the specificity of its product and make its products more vulnerable for others to clone its products. So Apple needs to strengthen its brand image.

From the perspective of the international market, Apple needs to authorize the sale...
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