A year after the death of Steve jobs, the share price of Apple stock doubled with prices incorporating all of Apple's business and the launch of a cutting-edge iPhone. Apple is a company that was created by Steve Jobs and his friend Steve Wozniak who after dropping out of high school while staying in Silicon Valley. Moreover, in 1976, while working for Hewlett Packard the pair teamed up to start Apple Inc. in the basement of Job's house. The birth of Job's brain child, creation of the first computer, revolutionized the use of computers worldwide.
Wozniak designed and introduced Apple I to Hewlett Packard (HP), who was not impressed thus chose not to pursue the venture. After that, in 1978, Apple II was introduced resulting in growth of sales from 35,000 in 1979 to 78,000 computers in 1980 (Johnson and Singer). However, over the years, the company has experienced changes in the executive management team including the death of the Founder CEO, Steve Jobs who was replaced by Tim Cook who was named acting CEO and Member of the Board of Directors. The company is committed to providing the best user experience to the clients through innovative hardware, software, peripherals and services. Further, their strategy is to leverage the unique ability of the company to design and develop its application software, operating systems, hardware and services that provide the customers new products and solutions with superior ease of use, seamless integration and innovative design.
The Organizational structure of Apple is a crucial factor to that makes the company successful. Under the CEO, Tim Cook, there are eleven executives of departments that work directly with the Company's leader. Moreover, the. CEO controls all the departments which are headed by the Senior Vice Presidents of Legal, design, iPod Operating System (iOS) software, operations, retail, Software engineering, product marketing and global communication. The responsibility of the top executives is specific to departments without any matrix relationship. The company's organizational structure is centralized with the CEO and board of directors collecting their decisions together which then goes straight down to the employees, and some are instantaneous allowing people to quickly grab opportunities identified by the top leadership and the missing apparent ideas of the company producer (Johnson and Singer).
Services and corporate events
Apple Inc. is an American multinational company that designs and manufactures computer software products, and consumer electronics and their products include Macintosh computers, the iPod and the iPhone. Moreover, the company is known for creating high-end technology products that feature beautiful designs and high performance with a closed user interface that makes its systems highly secure. Apple products include Desktops such as Mac mini, iMac, and MacPro, phones such as iPhone, Music players, software and tablets. Therefore, the company shifted from being a computer company into creating new product segments. The introduction of iPod was successful due to its ability to store over 1000 songs and have a sleek design thus transforming how music is listened to and satisfy the needs of the consumers (Wilson).
The Macintosh computers work as the digital hub for all digital devices including video cameras, cellular phones, and personal digital assistants. Further, with the invention of the cloud, which provides an integrated, harmonized and synchronized user experience has facilitated the integration with Twitter and Facebook on the Mac, iPhone and iPad. Therefore due to the brilliant interface, it delivers the experience that is second to no other (Wilson). .As a marketing strategy, the company participated in an Apple March Event where they sent out mysterious invites for the potential launch of new iPads, MacBooks, and iPads. The event aims to educate the consumers on iPad update while introducing a range of new products. Furthermore, they plan on holding a Worldwide Developers Conference in June that is traditionally devoted to software updates (Johnson and Singer).
Trends in sales and earnings and an analysis of how current macroeconomic patterns are relevant to the company.
During the March 2016 quarter, Apple announced that there would be 30% cuts in production resulting in another quarter of lost revenue. Due to the challenging economic conditions leading to slow growth in China, globally and Europe, companies such as Apple have also felt the effects. Additionally, the impact of currency exchange rates with the rising dollar has resulted in cuts in the employment and production sector. Therefore, apple sales are declining despite the company remaining profitable with a record of 18.4bn in net income. However, it is no longer benefiting from the rapid adoption of the smartphones due to rival Samsung. Additionally, other products such as iPad, Mac (Wilson ).
The role of the company is to offer a limited amount of products at a high level while focusing on gaining profits and drawing followers. Apple products face competition from Chinese products such as Android phones. The significant threat is Samsung since it has a geographic advantage for the market share of Asia. Due to Apple's inability to offer reliable products at lower prices, consumers look for cheaper alternatives. (Wilson).
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