Apple Bcg Matrix Analysis

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Company Overview

Name & Logo Apple Inc.

Headquarters Cupertino, California, United States
Current CEO Timothy Donald Cook
Revenue US$233.72 billion (2015)
Profit US$53.40 billion (2015)

Apple Inc. previously known as Apple computer Inc., incorporated and headquarters in Cupertino, California, United States, by Steve Jobs in 1979 occupies in the design, manufacture and marketing of tele communications, personal computers and portable music players as well as providing a variety of related software OS X, services and applications. (Money.cnn.com, 2016)
Apple offers products and services such as the iPhone, iPad, Mac, iPod, Apple Watch, and Apple TV brands; consumer and professional software applications under
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The operating profit of the company was $53.40 billion in FY2015, an increase of 35% over 2014. (Statista, 2016)
BCG GROWTH-SHARE MATRIX
Using the Boston Consulting Group (BCG) Matrix will help determine how each product are doing for the company. The matrix examines the product by two dimensions. First, products general level of growth within its market and second, product’s market share in comparison to its largest competitor within the industry. Products are classified into four distinct groups, Stars, Cash Cows, Question Mark or Problem Child and Dog. (Academy, 2016)
The list of top successful Apple products are: iPhone; iPad; Mac.; Apple TV. Apple has a very strong and successful product portfolio and business lines which are at different stages of their respective product life cycle. (The WritePass Journal, 2012)
Product Industry Growth Rate Market Share Competitor Market Share Relative Market Share
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It is making enough profit for the company to use it to develop their star product. IPad used to be Apples star product along with iPhone. Between the years 2012 and 2014, Apple sold more than 120 million iPad units. But since then, sales of iPads have reduced to just about 30-50 million iPad units. The tablet industry is declining as smartphones get bigger (iPhone 6s plus screen 5.5inch; iPad screen 7inch). Also laptops have become smaller and easy to carry around i.e. mac book air 10 -15 inch (Costello and Costello, 2016). Need for iPad/tablet are becoming lesser and lesser. Nevertheless, Apple earns a lot from iPads, therefore continual investment is required to ensure the product retains its position.
Mac
Apple Mac is the third largest circle on the matrix. Mac is surrounded by many mature and successful players such as Lenovo, Dell, HP who have already made their space is the market. There may be less chances of gaining future market share as the technology is slowly moving to a complete portable era. Having said this, Apple Macs are most desired by big businesses due to its fast and reliable and multi functioning operating systems and features. And is also viewed as a luxury item. So further investment could produce both positive and negative outcomes for the company.
Apple

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