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Business Models for High Tech Products - Essay Example

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Apple Inc. Assessment of Business Behavior and Models to Date The evolution of Apple over the decades has been a mixed story of success and failure based on good and bad business decision making. Apple’s initial run in the computing market was stinted by Apple’s monopolistic behavior which prevented Apple from diversifying and cooperating with other technological giants of that era…
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Business Models for High Tech Products
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Download file to see previous pages This limitation applies equally well to Apple’s other technological ventures such as the iPod, the iPhone and the iPad and others where it is obvious that Apple’s products target the upper segments of the market alone. This is more often done by Apple through differentiating their products with larger price tags for example the i-series of products from Apple is generally 30% or more priced from other market competitors. Whereas companies like Nokia have been ruling the market through domination of the underdog customer, Apple has chosen not to do so. Recently as other competitors have jumped into Nokia’s market share, the company has held steady because the lower end of the market is still firmly in its hand. In Apple’s case this is very different. Time and again Apple has found itself in troubled waters because Apple’s market segment (more appropriately targeted customer segment) has come under attack from other product makers. This has meant the bleeding of revenue to other competitors while Apple scrambles to innovate their products in the market segment under attack in order to keep relevant. The case of Windows 7 is very relevant in this regard. The introduction of Windows 7 hit the iOS market for computing solutions rather hard and Apple’s domestic computing solutions user drifted out of hand while Apple scrambled to recapture their interest. Had Apple been more diversified such as in the government and the corporate sectors, the threat would not have been that dangerous. Currently Apple derives most of its revenue from the mobile computing lineup consisting of the iPod, the iPad and the iPhone. The segment of mobile computing is expected to rise all the more in coming years as people would be looking for simple, lightweight mobile devices instead of grounded desktops and bulky laptops. The question now is how Apple plans to survive in an already crowded environment. Historically Apple has been providing its core and peripheral consumers with something new every other quarter or so but this run at innovation seems like dying down now. Future Course of Action Strangely enough Apple has always had the “Steve Jobs” stigma. As long as Mr. Jobs was online, Apple’s “applecart” seemed to move in the right direction. In this sense, Apple has always been a Jobs-centric company. The death of Steve Jobs in recent days might spell disaster for Apple as a company because previous runs with Jobs provide ground for such belief. Apple can already be seen entangled in a losing battle as the company’s most recent release the iPhone 4S was a complete disaster. The primary reason that the iPhone 2G succeeded was because it gave something to the market that was never there already even with the large variety on hand. Apple fanatics and others were all expecting Apple to come out with some new and innovative device that would once again revolutionize the world of smart phones but Apple has failed to live up to these expectations. This serves as a beacon for Apple’s future course of action – the company should refrain from delivering half baked pizzas one after the other. The company needs to bring in something big and well planned and executed like Steve Jobs delivered the iPod lineage. For another thing, Apple needs to lower the price tags on its devices ...Download file to see next pagesRead More
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