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Apple Case Net 3A Adrian
Transcript of Apple Case Net 3A Adrian
The success of the iPod and iPhone raises the licensing question for Apple ...again
Q1: Explain how the iPod is
helping Apple achieve increased sales of its range of Mac personal computers?
Made iPod as a PC peripheral as well.
With the move to the PC market, Apple accessed a much broader market.
Q2: What are the potential benefits and limitations of licensing the iPod software to other MP3 manufacturers?
Q3: With sales of the iPod falling and Apple facing fierce competition from all quarters such as Sony, Dell and other electronics firms as well as mobile phone makers who are incorporating MP3 into their devices, can the iPod survive?
Q4: If open innovation has been so successful for Procter & Gamble and others, why is Apple not adopting this model of innovation?
Q5: Can Apple continue to be successful in the long term by adopting a "BMW strategy"(BMW strategy is to target high -premium segments) for its iPod, iPhone and iPad?
Q6: What are the advantages and disadvantages of the Apple approach to launching a new product at Apple users first and then the larger Microsoft Windows user audience second?
Q7: Discuss whether Apple's demand for secrecy from its suppliers may have gone too far.
Apple would receive a license fee from each producer that uses their software in the device.
The use of Apple software in more brands will make Apple technology available to more people.
Apple's refusal to licensing contributed to its demise in the market because only their devices use that software.
Apple sells itself as an exclusive brand, having their technology available in other brands will deteriorate their marketing strategy as a unique brand.
No it can't. Apple launched series of iPod products:
Shuffle - lower-priced, improved battery performance
iPod Nano - ultra thin
iPod Touch - impressive touch screen interface
Nowadays most people use their smartphone as a music player, there is no need of having two devices.
Apple's team assembled the best people around the world.
Steve Jobs believed that knowledge and information confer power only if they are carefully guarded.
Apple markets itself as a very secretive company with exclusive products.
Apple has successfully made itself become a high-premium brand.
Lots of crazy Apple's fan around the world, whom are willing to pay more for a "better" product.
Apple launched the 5C in 2013 which is a cheaper Iphone.
We think the secrecy contracts Apple signed with the suppliers have gone too far, the Iphone is 90% other brands, Samsung, TSMC, Broadcom, LG Display and Japan Display. Those technologies are used also in other phones so secrecy does not really makes much sense for all suppliers.
Thank you for your attention!
Think different....or not
Repay the loyal customers with unique products.
Make the product different (niche market).
Strengthen Apple's customer loyalty and enhance brand equity.
Apple runs the risk of competitors seeing what is happening and responding quickly by offering a similar product to the much larger Microsoft Windows users. The difference in the size of the market is significant here: 90% Windows users versus 10% Apple users.
Claudiu Adrian Lazar
Apple was at one time the leading PC manufacturer. This position was lost in the late 1980s and 1990s to HP, Compaq, Dell and generic PC manufacturers. Hence, the iPod offers Apple an opportunity to promote its PCs to the iPod generation.