1. Apple. Inc, 2015 Gamze Sargın Only Liu Weiyi Ella Leppänen
Umur Hastürk

2. Agenda > > 1. Synopsis of The Case 2. Identify The Problem
1.1 Background
1.2 Summary
2.1 Vertical Identification
2.2 Horizontal Identification
3. Recommendation
4. Conclusion
3.1 Short-Term Solution
3.2 Long-Term Solution
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EUGO & Co.

3. 1. Synopsis of The Case > >
A solution, not broaden the categories of products.
Establish
Sculley
SpindlerAmelio
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EUGO & Co.

4. 1. Synopsis of The Case iPad iPhone iPod Mac > > Apple Watch?
EUGO & Co.

5. 2. Identify The Problem $ > > High dependence on iPhone
Failure of AppleWatch and ApplePay
56%
Almost dead of iPad and iPod $
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EUGO & Co.

6. 2.1 Vertical Identification
“Closed”
System
High Cost
Structure
Overpriced
Quantity↓
Compete with
Low-Cost Manufacturers
Premium-Price
Strategy
Product
Job’s
Reshape 4P
2 minutes
Place 3V
Price
Promotion
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EUGO & Co.

7. 2.2 Horizontal Identification
3 minutes and a half
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EUGO & Co.

8. 2.2 Horizontal Identification
Price
Benefits
iPad
Samsung
Microsoft
Amazon
AFTER
Contribution of iPad to total revenues start to decrease
Tablet market started to shrink
iPad is moving from being the ‘’rising star’’ to ‘’cash cow’’
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EUGO & Co.

9. 2.2 Horizontal Identification
Price
Benefits
Dell
Apple HP
Lenovo
Acer
1 minutes and a half
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EUGO & Co.

10. 2.2 Horizontal Identification
1 minute
The biggest revenue stream
Samsung’s market share is bigger but it was projected that Apple had more than 60% of the total smartphone profits
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EUGO & Co.

11. 2.2 Horizontal Identification
Price
Benefits
Xiaomi
iPhone
Currently performs well
Most of the total smartphone profits
The biggest revenue stream
BUT:
Samsung is a tough competitor
iOS has been losing to Android
Xiaomi is a truly threat
Samsung
Lenovo
iPhone is doing really well, it can be referred as a “cash cow” since its ASP is around $650 but its BOM is only around $200.
Samsung is a very tough competitor: relatively lower price, comparable set of applications available, more variety
Xiaomi can be seen as a serious threat: their business model is built on selling low price phones that fulfil the high-end specifications, and they are yet planning to expand outside China
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EUGO & Co.

12. 2.2 Horizontal Identification
Cannibalization
Price
Benefits
Spotify
Pandora
iPod
Amazon
1 minute
Napster
Walmart
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EUGO & Co.

13. 2.2 Horizontal Identification
Price
Benefits
Samsung
Fitbit
Sony
Garmin
Lenovo
Pebble
AppleWatch
23%
Motorola
34%
Apple watch: too expensive for fitness purposes, too technical to compete against “real high-end watches”, really tight market, just a combination of iPhone and watch, unclear benefits,
Apple Pay: there are many payment methods already, legal & security problems, it is not easier compared to credit cards and pin code system → you need to put your finger on the home button and wait, works only with iPhone and Apple watch?
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EUGO & Co.

14. 3. Recommendation > > Short-Term Long-Term 3 minutes and a half
EUGO & Co.

15. 3.1 Short-Term Solution > > iPad
Innovating the iPads for the use of specific industries.
Creating complementary accessories to increase the attractiveness of iPad.
1 minute
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EUGO & Co.

16. 3.1 Short-Term Solution
1 minute
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EUGO & Co.

17. 3.2 Long-Term Recommendations
Complementary products won’t secure Apple’s position in the long-term
→ It should enter a new high-tech consumer industry
Apple has a lot of money
It has done it earlier with other products
The entry would attenuate Apple’s dependency on iPhone
1minute and a half
Complementary products won’t secure Apple’s position in the long-term and they don’t solve the problem of being too dependant on iPhone
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EUGO & Co.

18. 4. Conclusion > > Value-Added Consulting Services
30 seconds
Diversify the Revenue Portfolio
Entering into New Industry
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EUGO & Co.