Product Line of Apple
Global Competitors of Apple
Product Life Cycle
Logistic & Supply Chain of Apple
Indian Market remain untapped
Strategies for the Company
Apple Inc. Current Profile
Name Apple Incorporation
Former CEO Steve Job
New CEO Tim Cook
Revenue $ 350.508 billion (2014)
Area served Worldwide
Headquarter California, United States.
Total number of employees 82,800
Apple Inc. has continued to expand its product line.
In Apple’s, the following are the main product lines:
Product Line of Apple
Samsung Electronics commenced its operations in India
in December 1995
Two R&D centers in India- Delhi & Bangalore
In 2010 achieved a sales turnover of $3.5 billion
Market leader in LED TVs, LCD TVs, Slim TVs
India’s largest mobile handset brand
Leading in smart phone segment in India
Micromax is an Indian consumer Electronics Company
headquartered in Gurgaon, Haryana.
Micromax has entered into handset market in 2008
and within 3 years it has become the third largest
handset manufacturer in India.
In this period, it has focused mainly on rural market &
has become a leader in the same. Now it wants to
expand its presence within India & then on international
Market Share of Smartphones in India
1. Faithful customers
2. Apple is a leading
innovator in mobile
3. Brand reputation
4. Financial Strength
5. High Profit Margin
1. High price
2. Decreasing market share
3. No major improvements in
latest product versions
4. Narrow Product Range
1. Product Diversification
2. Formation of Strategic
3.Investment in R&D
4.Growth of tablet and
5.Strong growth of mobile
1. Rapid technological change
2. Aggressive competition
3. Loss of innovative potential
due to decease of legendary
founder Steve Jobs
(Lack of Innovation)
4. Rising labor cost in countries
where Apple plants are
The foremost quality which the company
provides was access to the world renowned
Apple IOS operating system.
Thus the high quality processing speed also
lend a hand towards the popularity of the
ITunes, apple store and exclusive apps
Apple authorizes sellers to ensure control over
this component of the marketing mix. The
following places are included in Apple’s
Online Apple Store and App Store
Apple uses a premium pricing strategy
A standard price is maintained across
Iphone pricing policy is that it does not
offer any discounts. However, discounts
might be given in the form of sales
promotions or by exchange offers
Apple customers are not budging and
they are very much loyal to the Apple
brand and to Iphone.
The components used by Apple for
prmotions are-Advertising, Personal
Selling, Sales Promotion, Public Relations.
Some Apple Stores offer old models at
Apple Events, leaks of new product
features, press releases, are carefully
implemented to maximize positive
Product Life Cycle
•With the introduction of the new iPhone, all other iPhones will be
on the decline.
•The Apple iPhone 5s is now moving into the maturity phase of the
product life cycle. During this phase the primary objective of Apple
is to defend market share while maintaining revenue.
Apple’s direct competitors are Samsung, Micromax, Lenovo, Karbonn
Apple stays at least two years ahead of its competitors, having
geniuses in design, software, and retail
Apple has competitive advantage of screens, the I-Phone showed the
potential of new screens by increasing their size, given the screens a
hard glass surface that responded to light finger gestures.
Indian customers are not willing to pay for Iphones because they are
too costly for middle class customers.
Samsung fulfill the demands and requirements of middle class and
rich class customers. Recently Samsung has launched J series with 4G in
it at only 8990/- (online store prices).
Apple targets users who are typically between ages 15 & 50+
Apple's computers target home users, schools, and media and
Upper class income people are a primary focus for Apple because
they are usually willing to pay slightly more for “a better user
Apple's retail stores are dedicated to serving the needs of all new
and existing customers and are considered "friendly" places where
consumers can look at and test out the company's products
Customers will generally be loyal if there are only a few
competitors out there offering the same product and your product
offers better quality overall.
Apple’s Logistics and
A report by AMR Research has named Apple as the company
with best supply chain practices in the world for the third year running.
In a feature exploring the secret behind Apple’s success, it was
found that company’s ability to bring together two sides of the supply
chain (digital and physical) efficiently and at increasingly low cost.
India remains Apple's great untapped opportunity
Apple had a very low market share in smartphones in India. The market share
ranges from2%-7% in Indian market.
The reason behind this low share in Indian markets are income of population of
the country, people are not able to afford Apple's current lineup of smart phones.
It recently crossed the $1 billion milestone of annual sales in the country. There
is much scope of expansion in the country.
Strategies for the Company
Opening of more Apple Stores is the first step in establishing Apple as a luxury brand.
Sales are done through a whole range of stores from the common, where iPhones are
placed next to Samsung phones like a vegetable cart vendor.
Apple’s authorized resellers in India don’t do a very good job of letting consumers
hold, touch and ultimately fall in love with an iPhone or iPad.
Opening of Apple Stores will result in more footfalls and sales than the current stores
selling Apple products.
B-Refurbished IPhone Plan:
Till next year India and other developing countries will be flooded with refurbished
versions of the relatively latest iPhone.
Apple has currently applied for permission from the government to import and sell
these type of phones in India. Apple is doing in US
In order for it to receive permission it has to prove to the environment ministry’s
Technical Review Committee that it isn’t trying to move e-waste from the US to India.
If plan is approved then refurbished IPhone 6S could be sold for approximately Rs.
25,000 in India.
Apple created a very strong overall marketing strategy for the iPhone and managed
every aspect of the iPhone’s launch very effectively
Apple was able to develop a unique product for tech-savvy consumers interested in a
combination smart phone-music player and make those customers aware of the
product through well-managed marketing efforts and strong publicity.
In addition to satisfying consumers with an easy payment method, Apple built a
powerful partnership with telecom companies like Airtel & Reliance and selling the I-
phones from their retail outlets through easy down payment procedure.
Apple was promoted in India by PM Mr.Narendra Modi
Mr. Narendra Modi proposed a solution to Tim Cook to set up a manufacturing base in
the country. This would cut down on the company's production, logistics, and
distribution costs, and could offer a route to making its devices more affordable.
The CEO responded positively.