Analysis of the Apple Business Model

One Company, Many Business Models

When evaluating Apple's business model, it's useful to think in terms of the pre-1996 era and

the post-1996 era. Apple has always been and continues to be a manufacturer of computers and
electronics with a focus on complete hardware and software integration. Prior to 1996, the
company focused almost exclusively on personal computers in the Macintosh line, with the
occasional foray into innovative products like the Newton. When Steve Jobs rejoined the company
in 1996, that mission evolved beyond personal computing into products like the iPod, iPhone, and
iPad.

Apple continues to manufacture hardware often through

contract manufacturers like Foxconn with a focus on software integration and the complete user
experience. That part of their business hasn't changed all that much. What has changed is how the
company has expanded its approach to the market by adding new business models. Apple sells its
products through the retail channel, playing the role of wholesaler, while also selling direct to
consumers through stand-alone retail stores and an online store, the traditional
retail and manufacturer directbusiness models, respectively.

Apple's Lines of Business

The company divides its own product lines into iPhone, iPad, Mac, iPod, iTunes, Software, and
Services, and Accessories. I will group these as three lines of business: Computing Hardware &
Software, Mobile Devices, and the iTunes Store.
Computing Hardware & Software
Apple's longest running line of business is that of computer hardware and software. The company
has always believed that hardware is only as useful as its software, and the importance of full
software and hardware integration cannot be underestimated. This dedication to owning the full
integrated product has allowed Apple to focus on quality and usability, at the cost of market share
with its Mac line of products.
Macs are sold through the mass market retail channel with Apple employing three different
business models. First, Apple acts as wholesaler to a small group of retailers that are authorized
Mac retailers. Second, Apple applies themanufacturer direct model by selling Macs direct to
consumers through its website. Finally, Apple takes on the role of traditional retailer itself by
selling Macs through its own bricks-and-mortar retail stores.

Mobile Devices
The company's signature in the post-1996 era is its development of mobile devices and its
dominance of the cell phone and tablet industries. Beginning with the iPod music player, Apple
has steadily focused on ease of use, quality construction, and customer experience to develop its
hardware, software, and cloud service integration into a powerful mobile platform. The iPod
evolved into the iPhone by incorporating cellular technology and the app store, which evolved into
the iPad product line.
The company's approach to selling mobile devices is similar to that of its computer business. Apple
sells iPhones and iPads through the traditional retail channel, through partners and through its
own retail and web channels. Through its cellular partners, it also layers in a
the freemium business model by offering free or discount phones in return for long-term
contracts. A final component of the mobile device product line is the recurring revenue coming in
from the app store, which is a variation of the razors & blades business model.
iTunes Store
Originally launched in support of the iPod, the iTunes store has become the primary e-commerce
engine for media consumption on Apple devices. As the company's products have expanded beyond
music, so has the iTunes store, moving from music to video to apps, and books.
The iTunes store enables several innovative digital business models for Apple as well as its
developer community. From Apple's perspective, everything sold through the store is sold at a
simple mark-up of about 30%, so Apple itself is benefiting as a cost-plus retailer. As mentioned
above, recurring revenue comes in with the razors & bladesmodel. App developers are able to use
the iTunes store pricing model to employ the freemium as well as razors & blades models to
entice customers with free or low cost apps, earning future revenue through in-app purchases.

Apple's Profit Pools

The impact that the mobile device line of business has had on Apple cannot be understated. The
graphic below maps out Apple's profit pools by product, showing that the iPhone and iPad make up
a huge share of the company's revenue and profit margin. Consider how small Apple would be
today if this chart did not include the iPod, iPhone, and iPad products.

Disruption

and

Design

Apple has a tried-and-true method for success: disruption through better design. Its methods are
not tied to any specific business model and, in fact, the company's willingness to employ multiple
business models has made it a better competitor in the post-1996 era.
As everyone knows by now, Apple pioneered the graphical user interface on personal computers,
revolutionizing how humans interact with their machines. While the company ultimately lost the
PC war to Microsoft, its intuitive and revolutionary user interface design disrupted the microcomputer industry. Unfortunately, Apple became just another computer and software maker,
struggling to gain market share in a crowded marketplace. When Steve Jobs returned to the
company, he reestablished the design focus by introducing the popular iMac. But Jobs had much
more
up
his
sleeve.
At the turn of the century, the music industry was struggling with new digital formats and illegal
file sharing over the internet. It became possible to store hundreds of songs on digital music
players -- something the record industry wasn't prepared for. While the iPod wasn't the first music
player on the scene, its simple design, large storage capacity, and logical user interface quickly
made it a must-have product. Once again, Jobs demonstrated Apple's ability to disrupt an industry
through
better
design.
Looking back, the steps from the iPod to the iPhone and iPad seem obvious, but it was anything
but. While the success of the iPod was acknowledged far and wide, few analysts believed that
Apple could successfully enter the cell phone industry with the iPhone. Recall that the iPhone
launched without the benefit of the App Store and its hundreds of thousands of easy-to-use, solveany-problem smart phone apps. Ultimately, Apple disrupted the cell phone industry, not by
building a better cell phone, but by creating internet devices that made cell phones look like
cheap,
dumb
pieces
of
plastic.
The story of the iPad is remarkably similar. Analysts expressed fewer doubts, but there were

plenty who believed a larger iPhone was pointless, and the tablet industry had already busted at
least twice before. Like music before it, the iPad is creating significant disruption for book,
newspaper, and magazine publishers, movie and television studios, as well as cable and network
television operators. Personally, the iPad has moved me much closer to the paperless office than
a
laptop
ever
did.

The

Apple

Business

Model

Canvas

Alexander Osterwalder and Yves Pigneur, authors of Business Model Generation, have developed
the popular business model canvas. The canvas is described as a shared language for describing,
visualizing, assessing, and changing business models. It's made up of nine building blocks that help
focus attention on key attributes of a business. What follows is an attempt at a business model
canvas
for
Apple,
Inc.

The

Future

of

Apple

Apple is positioned well for the future, and it's not a company that's willing to settle for current
success. Unafraid of cannibalization, the company continues to churn out iPhones that make the
iPod look like a hobby, as well as the iPad Mini that unashamedly steals market share from its big
brother. Notoriously secret, the company reveals little about the product pipeline, but its
believed that Steve Jobs left a product roadmap for more than a decade.
One of the most significant rumors is that of an Apple Television, not to be confused with Apple
TV. From one perspective, the Apple Television fits the progression from small internet-connected

devices like the iPhone, to the larger iPhone, to an even larger screen, the television. It also fits
with
Apple's
pattern
of
disrupting
staid
media
industries.
Other rumors suggest that Apple will go smaller to go along with improved batteries and
processors by creating an iWatch basically an iPhone for your wrist. The validity of this rumor is
questionable and probably tied to the popularity of Bluetooth-connected watches that are rapidly
entering the market, but there is no doubt that Apple would have little trouble blowing up the
watch
industry
as
easily
as
it
has
other
industries.
More interesting to watch in the long-term is how Apple continues to develop its mobile and
desktop operating systems, which seem to be growing more and more similar as the years go by.
The company continues to push for a future where your media is with you everywhere on any
device. If there is one company that can make us forget about the difference between mobile and
desktop, the stuff on a hard drive and the stuff in the cloud, it's Apple.

Analiza modelului Apple a Business

O companie, mai multe modele de afaceri
La evaluarea modelul de afaceri de la Apple, este util s gndim n termeni de epoca pre-1996 i
perioada post-1996. Apple a fost ntotdeauna i continu s fie un productor de calculatoare i
electronice, cu accent pe hardware complet i de integrare software. nainte de 1996, compania sa
concentrat aproape exclusiv pe computerele personale din linia de Macintosh, cu incursiune ocazional n
produse inovatoare, cum ar fi Newton. Atunci cnd Steve Jobs a revenit companiei n 1996, c misiunea
a evoluat dincolo de computere personale n produse, cum ar fi iPod, iPhone, iPad i.

Apple continua sa fabrice hardware de multe ori prin intermediul productorilor de sarcini, cum ar fi
Foxconn cu un accent pe integrarea de software i experiena complet. Acea parte din afacerea lor nu
sa schimbat tot att de mult. Ceea ce sa schimbat este modul n care compania i-a extins modul de
abordare a pieei prin adugarea de noi modele de afaceri. Apple a vinde produsele sale prin canalul de
retail, jucnd rolul de angrosist, in timp ce, de asemenea, vnzarea direct ctre consumatori prin
intermediul, modelele tradiionale de vnzare cu amnuntul i productor directbusiness magazine cu
amanuntul de sine stttoare i un magazin on-line, respectiv.

Linii Apple de afaceri

Compania imparte propriile linii de produse n iPhone, iPad, Mac, iPod, iTunes, software i servicii,
precum i accesorii. Voi Grup de acestea ca trei linii de business: de calculare, echipamente, programare,
dispozitive mobile, iar iTunes Store.

De calcul, echipamente, programare

Cea mai lung linie de funcionare Apple de afaceri este c de hardware i software. Compania a crezut
ntotdeauna c hardware-ul este doar la fel de util ca software-ul su, precum i importana de software
complet i de integrare hardware-ul nu poate fi subestimat. Aceast dedicare a deine produsul
integrat pe deplin a permis Apple sa se concentreze pe calitate si usurinta in utilizare, la costul de cota
de pia cu linia sa de produse Mac.

Mac-urile sunt vndute prin canalul de retail pe piaa de mas cu Apple folosind trei modele diferite de
afaceri. n primul rnd, Apple acioneaz ca angrosist de un mic grup de comerciani cu amnuntul care
sunt autorizate comercianii cu amnuntul Mac. n al doilea rnd, Apple se aplic themanufacturer
modelul direct prin vnzarea de Mac-uri directe ctre consumatori prin intermediul site-ul su. n cele
din urm, Apple are rolul de retailer tradiional n sine prin vanzarea de Mac-uri, prin magazinele sale
proprii crmizi i mortar de vnzare cu amnuntul.

Dispozitive mobile
Semntura companiei n era post-1996 este dezvoltarea de dispozitive mobile i dominaia industriilor
telefon mobil i comprimat. ncepnd cu music player iPod, Apple sa concentrat n mod constant pe
uurina de utilizare, construcie de calitate, precum i experiena clientului pentru a dezvolta hardware,
software, precum i integrarea sa serviciu de cloud ntr-o platform mobil puternic. IPod-ul a evoluat n
iPhone prin incorporarea tehnologiei celulare si App Store, care a evoluat n linia de produse iPad.

Abordarea companiei de a vinde dispozitive mobile este similar cu cel al afacerii sale calculator. Apple a
vinde iPhone i iPad-uri prin canalul de retail tradiional, prin intermediul partenerilor i, prin propriile
retail si web canalele sale. Prin intermediul partenerilor si celulare, de asemenea, straturi ntr-o
modelul de afaceri freemium prin oferirea de telefoane gratuite sau cu discount, n schimbul contracte
pe termen lung. O component final a liniei de produse dispozitiv mobil este venitul recurente care
vine de pe App Store, care este o variaie dethe aparate de ras i lame modelul de afaceri.

iTunes Store
Iniial lansat n sprijinul iPod, magazinul iTunes a devenit motorul de e-commerce primar pentru
consumul de media pe dispozitivele Apple. Ca produsele companiei s-au extins dincolo de muzica, asa ca
are magazinul iTunes, trecerea de la muzica la filme de aplicaii, i cri.

Magazinul iTunes permite mai multe modele de afaceri digitale inovative pentru Apple, precum i
comunitatea de dezvoltator. Din punct de vedere al Apple, totul vndute prin magazinul este vndut la
un simplu semn-up de aproximativ 30%, astfel nct Apple n sine beneficiaz ca un retailer cost-plus.
Dup cum sa menionat mai sus, venituri recurente vine cu aparate de ras si bladesmodel.
Dezvoltatorilor de aplicaii sunt n msur s utilizeze modelul de tarifare magazin iTunes pentru a
angajathe freemium, precum i aparate de ras i lame de modele pentru a atrage clienii cu aplicaii
gratuite sau low cost, ctignd venituri viitoare prin achiziii n aplicaie.

Apple Profit piscine

Impactul pe care linia de dispozitiv mobil de afaceri a avut la Apple nu poate fi subestimat. Graficul de
mai jos harti din bazine de profit Apple de produs, artnd c iPhone i iPad au o pondere foarte mare a
veniturilor i marja de profit a companiei. Luai n considerare ct de mic Apple ar fi astzi dac acest
grafic nu a inclus iPod, iPhone, iPad i a produselor.

Perturbarea i Design
Apple are un ncercat i-adevrat metod de succes: ntreruperi printr-un design mai bun. Metodele sale
nu sunt legate de orice model de afaceri specific i, de fapt, dorina companiei de a angaja mai multe
modele de afaceri a fcut un concurent mai bine n era post-1996.

Dup cum tie toat lumea de acum, Apple a pionier interfaa grafic de utilizator pe calculatoare
personale, revolutionand modul in care oamenii interactioneaza cu mainile lor. n timp ce compania n
cele din urm a pierdut rzboiul PC-ul la Microsoft, a proiectului de interfa intuitiv i revoluionar
perturbat industria de micro-computer. Din pcate, Apple a devenit doar un alt calculator i software de
filtru, se lupt s ctige cot de pia ntr-o pia aglomerat. Atunci cnd Steve Jobs a revenit la
companie, el a restabilit accentul de design prin introducerea popular iMac. Dar Jobs a avut mult mai
mult n mnec.

La nceputul secolului, industria muzicala se lupta cu noi formate digitale i fiiere ilegale de partajare pe
internet. A devenit posibil pentru a stoca sute de melodii pe playere de muzic digital - ceva industria
de nregistrare nu a fost pregtit pentru. n timp ce iPod-ul nu a fost primul juctor muzica de pe scena,
design-ul simplu, capacitate de stocare mare, i interfaa cu utilizatorul logic a fcut repede un musthave produs. nc o dat, Jobs a demonstrat capacitatea Apple de a perturba o industrie prin design mai
bun.

Privind napoi, paii de la iPod la iPhone i iPad prea evident, dar a fost nimic, dar. n timp ce succesul
iPod-ului a fost recunoscut de departe i-n lat, puini analiti consider c Apple ar putea intra cu succes
n industria de telefon mobil cu iPhone. Amintii-v c iPhone-ul lansat fr a beneficia de App Store i
sutele sale de mii de uor de utilizat, rezolva-orice-problem aplicaii de telefoane inteligente. n cele din
urm, Apple a perturbat industria de telefon mobil, nu prin construirea unui telefon mobil mai bine, dar
prin crearea de dispozitive de internet care au fcut telefoane mobile arata ca piese ieftine, prost din
material plastic.

Povestea de iPad este remarcabil de similare. Analitii i-a exprimat ndoieli mai puine, dar au existat o
multime care au crezut un iPhone mai mare a fost inutil, iar industria comprimat au prins deja cel puin
de dou ori nainte. Cum ar fi muzica nainte de aceasta, iPad este de a crea perturbri semnificative
pentru studiouri de carte, editorii de ziare, reviste i, de film i televiziune, precum i operatori de
televiziune prin cablu i de reea. Personal, iPad mi-a apropiat mai mult de office paperless dect un
laptop fcut-o vreodat.

Apple Modelul de afaceri Canvas

Alexander Osterwalder i Yves Pigneur, autori de afaceri generatie a modelului, s-au dezvoltat populare
model de afaceri panza. Panza este descris ca fiind IA limbaj comun pentru a descrie, vizualizarea,
evaluarea, iar schimbarea de afaceri models. Este alctuit din blocuri de nou construcie care ajut s
se concentreze atenia pe atribute cheie ale unei afaceri. Ceea ce urmeaz este o ncercare de un model
de afaceri pnz pentru Apple, Inc.

Viitorul Apple
Apple este poziionat bine pentru viitor, i nu este o companie care e dispus s se mulumeasc cu
succes curent. Frica de canibalizare, compania continua sa putinei iPhone care fac iPod-ul arata ca un
hobby, precum i iPad Mini care fur fr ruine cota de pia de la fratele su mai mare. Notoriu secret,
compania dezvaluie putine lucruri despre conducta de produs, dar a crezut ei c Steve Jobs a lsat o
foaie de parcurs de produs pentru mai mult de un deceniu.

Una dintre cele mai importante zvonurile este cea a unui televizor Apple, a nu se confunda cu Apple TV.
De la un punct de vedere, Televiziunea Apple a potrivete progresia de la mici dispozitive conectate la

internet, cum ar fi iPhone, pentru iPhone mai mare, la un ecran i mai mare, la televizor. De asemenea,
se potriveste cu modelul Apple de a perturba industriilor mass-media neschimbat.

Alte zvonuri sugereaz c Apple va merge mai mici pentru a merge mpreun cu baterii i procesoare
mbuntite prin crearea unui iWatch practic un iPhone pentru ncheietura minii. Valabilitatea
acestui zvon este discutabil i, probabil, legat de popularitatea de ceasuri cu Bluetooth conectate, care
sunt introduse rapid pe pia, dar nu exist nici o ndoial c Apple ar avea ceva probleme suflare
industria de ceasuri la fel de uor ca are alte industrii.

Mai interesant sa ma uit pe termen lung este modul n care Apple continua sa se dezvolte sistemele sale
mobile i desktop de operare, care par s fie n cretere mai mult i mai asemntoare ca anii trec.
Compania continu s fac presiuni pentru un viitor n care mass-media este cu tine peste tot pe orice
dispozitiv. Daca exista o companie care poate face s uitm despre diferenta dintre mobile i desktop,
chestii pe un hard-disk i lucrurile n nor, este Apple.