Is Apple Winning? – Apple is building one of the most stunning financial runs in the history of corporate America.
– Sold over 365,000,000 devices in last 5 years
– Avg. 4 billion in monthly profit
– Amasses 110 billion in cash.
With combination of anticipation plus luck, apple has been able to out-think, innovate and execute it competitors. Here are the 3 major forces behind Apple’s success.
“Skate to where the puck will be” – Steve Jobs
– Doesn’t rely on what customers want, defines what they need.
– iPhone mobilized consumers computers.
– iPad helped introduced new PC tablet products to market.
– Reshaping tradition of reading paper based newspaper.
– NYC subway shows change from print to digital.
3 trends created environment for apple to continue to the top.
– March 2012, smartphones began to outnumber basic phones.
– 50% of Americans now own a smartphone.
– Shift to smartphones makes for a new industry, the “App Economy”
– Tablet sales are soaring
– Sold 11.8 million iPads, up 151% from 2011 year.
– Competition not much cheaper in price.
– Closest comparison is Kindle, but its limited in productivity.
– Asian markets beginning to boom.
– Hundreds of millions of new consumers.
– 55% of sales from foreign countries. (not including new iPad)
– Innovative product pipeline makes for ease in international sales growth.
– Tim Cook (New Apple CEO), has responsibility to execute Steve Jobs vision.
– Company in an unusual position for a global giant: Apple can’t produce enough product to meet consumer demand.
– Supply chain working conditions handled at Chinese Foxconn.
– Plans to buy back stock from Apple shareholders.
– Shares topped $600 in april 2012, predicted over $700 in next two years.
The Bottom Line
– Apple knows its customers.
– Steve Jobs wasn’t a geek, built products for everyday use.
– Wins customer appeal with marketing.
– Mastered impulse in people.