BlackBerry (BBRY)’s Passport and Apple (AAPL)’s iPhone 6 were both highly anticipated smartphones that launched in September. Apple sold more than 10 million units of iPhone 6 models in the first weekend after launch on September 19. On the other hand, BlackBerry sold 200,000 Passport smartphones during its first few days in select markets. Although Apple’s sales were 50x greater than BlackBerry’s, the latter’s sales might have a more relevant impact on the company’s share price and, thereby make BlackBerry an attractive buying opportunity.
Accurately gauging the impact on stock price
Ultimately, investors’ interest lies in the price change that these sales could bring about. However, to accurately estimate the impacts we should first establish
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In selling 200,000 Passports, BlackBerry sold 42,283 units per $1 billion of its market capitalization – nearly thrice as much Apple achieved using this metric. As a result, the Passport's sales of only 200,000 units might actually be more meaningful for BlackBerry's stock than the iPhone 6 and 6 Plus are for Apple.
A different revenue mix adds to the impact
BlackBerry’s business model is different from that of Apple’s or any of its competitors for that matter. Over the years, the iPhone has accounted for more than half of Apple’s total sales, representing a primary revenue source for the company. On the other hand, Blackberry – learning from its smartphone debacle – has done well in moving on and setting its sights on a different industry. Therefore, a large part of its success is now measured in clients for its secure software instead of cell phones. Blackberry’s hardware business represents about 40 to 46 percent of its total sales -- to the tune of $380-$415 million per quarter. Its service segment generated revenues of $943 million during the first half of fiscal 2015, while hardware segment generated $796 in the same
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For years, BlackBerry’s share in the smartphone market has rapidly diminished, but, with the launch of Passport, many analysts believe that BlackBerry is ready to make itself relevant in the smartphone industry once again.
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While the competition has taken BlackBerry to the cleaners in past years, its devices, platforms and messaging services are still among the most secure in the world. Its encryption technology and security features are of special interest to businesses and corporate buyers. Not to mention, it is the only provider to receive Authority to Operate (ATO) and Full Operational Capability (FOC) status from the U.S. Department of Defense for its Mobile Device Management (MDM).
Therefore, it only makes sense for it to focus on its strengths and target enterprise users, and not the broader consumer market. And the company done exactly that with Passport, which is aimed at “Power Pros” – a term coined by BlackBerry for people who do not have time for any nonsense like playing games or sending Snapchats, instead are more interested in getting some work done.
Privacy being important to the people, Beres uses a small, but effective and adequate amount of ethos. He explains that the iPhone and iPad are not alone when it comes to the FBI needing to “brute force” the devices open to obtain data. The ANdroid devices that he owns are much like the iPhone and iPad, in which people refer to them to have what's called the “self destruct” function that erases all data from the device. Making this reference to Android and comparing how the mobile operating systems share similarities, is an important method of using ethos to explain that Apple is not the only company using this kind of security for their customers. Though many would think this ”backdoor” would not affect them, Matthew Deluca over at NBC News, explains in his article “ Apple vs. Feds: Lawmakers hammer FBI Chief in Encryption Hearing”, that reducing encryption and security on smartphones and tablets could be fatal to millions of consumers around the world.
Mainly blackberry is very weak at marketing their brand, it spent ($41.3 million) on marketing, 10 times lower than Apple ($400 million) and 8 times lower than Samsung ($334 million). Blackberry has many opportunities, which are possible increase in demand from governments because of their high security and the smart-device market growing fast about 41.7% per year. Blackberry faces many threats that include rapid technological change.
There are types of technology its consumers use on a daily basis such as cell phones. There are two leading phones that are being used which is Apple and Android. These brands are very competitive towards each other. They have almost looked very similar over the years. Both of these brands have drawn people in.
How Sustainable is Apple’s Competitive position Introduction Apple started out simply as a computer company producing Macintosh computers and software, but has since evolved over the years to manufacture other products. It introduced iPods in 2001 for music players, in 2007, it started producing iPhones. Its products are consumer oriented and this has contributed to the success of the company. Apple also views innovation as basis of survival and business development (Yoffie, 2012).
It´s important to remember that disruption is positive for the mass-market and are innovations that make products and services more accessible and affordable, thereby making them available to a much larger population. When we look at the full extent of Xiaomi´s business model, we can clearly see how different and how disruptive it is. How does Xiaomi keep their prices at least 60% lower than their competitors? While Apple need to come up with a new model to maintain their high profits, Xiaomi have found a clever way to reach these profits without overserve the market with smartphones. For Xiaomi to sell high-end smartphones at such cost, Xiaomi keeps their models
Apple states in their Form K-10 Report (2017, p.1) they are “committed to bringing the best user experience to its customers through innovative hardware, software and services.” In an Industry where profit margins are low, technologies are constantly evolving and competition is high it is essential that Apple continues to offer innovative and simple products that increases customer experience (Heracleous, 2013) so to maintain a competitive advantage. A variety of tools have been used to evaluate Apple’s external and internal environment, including the PESTEL (Appendix 1), Porter’s Five Forces Analysis (Appendix 2), SWOT (Appendix 3). It is envisaged that the information derived from these tools and the associated analysis will support Apple’s CEO to make strategic decisions that addresses the challenges ahead in the short term, ensuring Apple can be competitive in the long term (Rothaermal, 2017).
Q1a. MARKET STRUCTURE OF APPLE INC Apple Inc. operates different types of market structure in terms of their different products. In the smart phone business, they happen to be one of the major players with their different models of the “iphone” which makes them operate in an oligopolistic market. Oligopoly arises when there is an imperfect competition in which there are just few firms producing similar products. As a result of high competition, monopolies, interdependence among firms there are just a few big players having the market power and making it very difficult for new firms to penetrate the market with their products.
Apple Inc. embraces diversification strategy as a means of promoting its viability in the market. Largely, the creation of the three products lines compounds the sources of the company’s income. In fact, the company does not rely on a single source of income because the product design belongs to different categories. This strategy cushions the business from suffering risks of associated with depending on a single business. According Hitt, Ireland, and Hoskisson (2014, p.135), the benefit of handling many products is that when one product fail or does poorly in the market, the business is would shift its attention of the best performing products.
Apple on the hand arguably is considered to be the mother of modern smartphones. On June 29, 2007, the cofounder of Apple Inc Steve Jobs announced the release of iPhone, a technology they had been working on for about five years. It was the first of its kind compared to the other players in the market like Blackberry, Motorola and Palm who were already making pocket personal computers. The new tech had a bigger screen, multi-touch interface and the mind-boggling on-screen keyboard was met with a lot of excitement. With these new ideas Apple dominated the phone market and during the Macworld Expo keynote speech, Jobs reported that the Apple iPhone had a 28% market share in Q4 2007 this represented significant growth in the second full quarter that iPhone has been on sale and translated to a
ACHIEVING GLOBAL COMPETITIVE ADVANTAGE OF APPLE INC. Apple Inc. is an American conglomerate company located in one immeasurable loop, Cupertino, California in the middle of the Silicon Valley. (OPPapers, 2012). Apple is motivated on their designing, developing, innovating new products like the personal computers, other related software products, and the electronic products such as MP3 players and iPods. Apple Inc.’s main products are iMac, iPod, iPhone, iPads and its latest advanced product is iWatch, which is on the edge of creating another revolution after iPhone. Apple Inc. has transformed its image from an inventive computer manufacturer to a fully-fledged consumer 's electronic company.
Segmentation, Targeting and positioning, also known as STP are an essential part in marketing today. This model is important for generating marketing communication strategies and it aids the marketers to prioritize schemes and deliver personalized and pertinent messages to diverse audiences. This approach is audience oriented rather than product focused in terms of communication, which results in conveying appropriate messages to the members who are more commercially appealing. Segmentation benefits the managers in finding out the area on which they have to concentrate on in terms of geography, demographics, social factors or behaviors.
The paragraph above shows data of a comparison between Apple and Samsung. Apple retail was increasing over Samsung in the smartphone market. Samsung used to rule the mobile market until Apple started its iPhone series. Even now Samsung is trying to give a head to head competition with its new Note series. But Apple being Apple, think different (Apple's tagline) and released iPhone X to blow out every other phone from the market.
Each and every goal should be analyzed to determine the potential impact on firm
Today, almost every person caries a smart phone with them and some can’t survive the day without it. There are many companies and manufacturers who build smart phones like the popular ones such as Htc, Nokia, Samsung, Apple, Huawei, Motorola, Sony and many more, but what makes those companies not alike are the phones they release through the years, but are they that different? To compare, let us take an example of two leading rival companies in the field of smart phones, Samsung and Apple, who newly released their flagship devices, the Samsung Galaxy Note 4 and the Apple iPhone 6 plus. The Samsung Galaxy Note 4 features a 5.7 inch Super Amoled touch screen, a 16 megapixel back facing camera, an octa core processor with 3 gb of Ram and a 3220 mah battery whereas the Apple iphone 6 plus comes with a 5.5 inch retina display touch screen, an 8 megapixel back facing camera, dual core processor with 1 gb of Ram and a 2915 mah
According to Bullen and Rockart (1981), critical success factor is the significant skills, areas, or actions of a company that contributes to the competitive performance that can make it become successful. The main key success factor of Apple is its core competency, technology. The company that owns the advanced technology may get high revenue and a larger market share when imply this technology in its product or service (Roth & Miller, 1992). Apple has used this core competency to develop many highly functional and usable digital device and software which can develop the loyalty of customers to its brand (Laugesen & Yuan, 2010). For example, many electronics products in the market are use Google’s Android system, while Apple uses its own system, iOS in all of its digital devices (Johnson, et al.,