This is roughly 66% of the company’s overall sales, which makes the company vulnerable in the presence of Samsung and other competitors (Forbes, 2017). Moreover, the distribution channels of Apple in developing countries such as India are quite weak. Apple relies heavily on effective distribution channels, which can be seen from the fact that 26% out of 74% total Apple sales in 2014 was because of distribution channels (IDC, 2014). Finally, the incompatibility with other existing operating systems and difficulty in using ITunes as the sole source of media transfer to its devices make alternatives such as Samsung look quite
INTRODUCTION Apple vs. Samsung lawsuit began on April 15, 2011 when Apple filed an infringement case on Samsung for copying its technology and design. Apple filed a case in US District against Samsung for copying Apple’s Innovative technology, distinctive user interfaces and elegant and distinctive product and packaging design, in violation of apple’s valuable intellectual property rights. Apple initiated the fight and Samsung took it globally in Germany, USA, Japan, Australia, South Korea and European Union. Apple and Samsung share a buyer-seller relationship with each other, Samsung being the world’s largest memory chip maker and Apple is the largest consumer of flash memory. Apple buys flash memory from Samsung for its iPhone and iPad.
9) The sales of the company have increased relatively in 2013 but it is cancelled out by their exorbitant net loss. 10) Currently, share price also has fallen down from 17$ to only 0.56 cents leading to the company to lose more than 80% of its share value. 11) In the first quarter of 2014, net sales came down to 137.1 million USD and Gross Profit came down to 72 million USD compared to the first quarter last year. This impact was due to heavy competition. 12) About the Apparel industry in general, it has been highly volatile and inconsistent of late.
Major competitor is Samsung electronics: let us do the detailed comparison with the brand: Samsung VS Apple Business model Samsung versus Apple in cell phones, tablets and other cloud access gadgets is a fight that is progressively exciting the creative energy of the business press and other industry spectators. It is additionally intriguing to watch the progressions that the battle is driving in the Samsung and Apple plans of action. The climb of Samsung Electronics is something we have been breaking down for quite a while. Home life report, The Rise of Korea in the Electronics Market, was distributed in 1988. And, after it’s all said and done, it was clear that Samsung was a breed separated and would turn into a noteworthy thistle in the side of the worldwide IT and gadgets foundation.
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
Therefore, the threat of substitute for the watch industry of Switzerland is found to be high. The basic function of watches is now challenged by the electronic devices being launched in past few years and these devices may include laptops, mobile phones, and mp3 players (Lu & Liu, 2013). Intensity of Rivalry
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
The 2005 FCC Mandate which compels all mobile phone makers around the globe to ensure that their phones are fitted with GPS is a significant factor that could adversely affect TomTom. TomTom attempt to embrace this change by creating an Iphone app – In 2009 Apple had 66.61% of the global mobile phone market, which Android had 6% By the end of 2010 Apples market share had dropped to 50% and Android had increased to 24% but TomTom only developed an App for the Iphone, this is another shift that was outside of the control of TomTom. http://techcrunch.com/2010/03/25/admob-registers-50-market-share-for-iphone-os-based-on-smartphone-traffic/
This information is used in Apple stores through telephone, face to face, meetings etc because it would influence on the strategic decisions made by different managements which would impact on the business. Using verbal information in meetings when communicating with managers or shareholders then they would understand the conversation clearly and in detail because it can be repeated if necessary. In 1997 when Steve Jobs returned to Apple as a CEO, the business was in $1 Billion loss and had an instability in the management, the business had less than 5% market share. This was because there was less business information and the business had a poor strategy. Steve Jobs changed Apple strategy by narrowing down the product range by holding meetings and presentations (written information) with managers, shareholders and employees using verbal information to change the product and express innovative ideas for new
Use of Marketing Mix Marketing mix will be used in this analysis to review the marketing strategies of Apple in India. i. Price and Place(Distribution) Apple’s success in India has been hampered by the high price of its products. Apple uses a price skimming strategy across all of its markets in selling its iPhones. This has created a unique and prestigious image for its products.