Apple Business Model: An Analysis Of Apple's Business Strategy

Apple Business model

We all know Apple makes cash. but how? Apple sells its products through the retail channel, taking part in the role of wholesaler, while also selling directly to consumers through stand-alone retail stores and on-line stores.

Now we 'll explain the elements of Apple’s Business Strategy.

⦁ FY 2001: $5 billion revenues. Net loss of $25 million.

⦁ FY 2007: $24 billion revenues. Net profit of $3.5 billion.

⦁ FY 2010: $65 billion revenues. Net profit of $14 billion.

⦁ FY 2015: $234 billion revenues. Net profit of $53 billion.

A very few corporations witness such growth in their revenues and profits. These no. shows how world category product can change anything. Apple launched iPod in October 2001 , iPhone in june 2007 and then

They design and develop their own operating systems, hardware, application software system and services and so integrates them in such the simplest way that provides easy-to-use superb products. additionally their customers has to rely on them too, if anything goes wrong, and hence there comes their service part of business model too.

In short, Apple isn 't dependent on any of its partners for any technical breakthrough. They innovates on their own. Their product differentiation helps them in maintaining premium pricing. once combined with low cost sourcing and products assembly strategy, Apple is ready to improve the business profit margins.

Apple 's Lines of Business

The company sells numerous products like iPhone, iPad, Mac, iPod, iTunes, Software, and Services, and

Macs are sold by Apple, using 3 completely different business models.

• Apple acts as wholesaler to a small group of retailers that are approved mackintosh retailers.

• Apple sells Macs direct to customers through its web site.

• 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 product are their mobile devices and tablets. They dominate the cellular phone and tablet industries. Apple has targeted a lot on quality construction, and customer experience to develop its hardware, software, and cloud service to integrate into their mobile platform. They evolved iPod into the iPhone by combining cellular technology with their app store, that evolved later on into the iPad product line combining computer functionality as well.

Apple’s approach to mercantilism mobile devices is comparable to that of its computer business. Apple sells iPhones and iPads through:

• The traditional retail channel of its own bricks-and-mortar retail stores.

• Partners

• Web channels

• It additionally follows the freemium business model by providing free or discounted phones in return for long-term contracts in specific