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Steve Jobs, the Immediate Case Study

  • Nancy Koehn

In all kinds of places this past week — from Twitter feeds to boardrooms — people discussed Steve Jobs’s career at Apple as a kind of informal but very important case study. This is not surprising, given his contributions to technology and the lasting impact he’ll have on the way we communicate. On the other […]

In all kinds of places this past week — from Twitter feeds to boardrooms — people discussed Steve Jobs’s career at Apple as a kind of informal but very important case study. This is not surprising, given his contributions to technology and the lasting impact he’ll have on the way we communicate. On the other hand, given the currency of Jobs and Apple’s achievements, this is quite rare. John Rockefeller, IBM’s Thomas Watson Sr., and many others have been recognized for their skills as strategists and organizational builders, but we didn’t use them as case studies — at business schools or in conversation — until decades and decades after their deaths.

a case study on apple

  • Nancy Koehn is the James E. Robison Professor of Business Administration at Harvard Business School.

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By: Frank T. Rothaermel

The case is set in September 2019 and the protagonist is Tim Cook, the CEO at Apple, Inc. In 2019, Apple had revenues of $260 billion; yet, net revenues were down by 7 percent over the same period.…

  • Length: 24 page(s)
  • Publication Date: Nov 18, 2019
  • Discipline: Strategy
  • Product #: MH0069-PDF-ENG

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The case is set in September 2019 and the protagonist is Tim Cook, the CEO at Apple, Inc. In 2019, Apple had revenues of $260 billion; yet, net revenues were down by 7 percent over the same period. Much of the decline in Apple's revenues is a result of decreased sales of the iPhone, which contributed 62 (!) percent of Apple's total revenues in 2018, and declined to 54 percent in 2019. The case highlights the problems Tim Cook faces as demand of the iPhone slows, and Apple has failed to introduce any major new product since the iconic iPhone was launched in 2007. Trade tensions between the United States and China, moreover, are also negatively impacting the company. Over the past few years, the Chinese market accounted for 25 percent of Apple's total revenues. Apple is exposed to the trade tensions in two ways in particular. Moreover, the threatened imposition of tariffs on Chinese goods by the United States would further hurt Apple by raising the effective cost of Apple products in the United States because almost all of their manufacturing is done in China by Foxconn. Finally, Apple recently entered the video-streaming market, with its Apple TV+ service, which will develop original programming as well as act as a pipeline for other channels. This is a crowded market with strong existing players such as Netflix, Hulu (controlled by Disney), and AT&T's HBO. Other notable new entrants into the content streaming market include Disney+.

Learning Objectives

Strategic Leadership; Business Model; External and Internal Analyses; Competitive Strategy; Innovation and Technology Strategy; Industry Life Cycle; Diversification

Nov 18, 2019 (Revised: Nov 18, 2019)

Discipline:

Geographies:

China, United States

Industries:

Information technology industry

McGraw-Hill Education

MH0069-PDF-ENG

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a case study on apple

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Apple Five Forces Analysis & Recommendations (Porter’s Model)

Apple Five Forces Analysis, competition, customers, suppliers, substitution, new entrants, Porter, consumer electronics business case study

This Five Forces analysis gives insights into the external factors influencing Apple’s success. Michael E. Porter’s Five Forces analysis framework is a strategic management tool for evaluating the five forces affecting the business organization: customers, suppliers, substitutes, new entrants, and competitors. This Five Forces analysis of Apple Inc. sheds light on what the company does to ensure industry leadership. Despite the negative effects of external factors in the competitive landscape of the computer software and hardware, consumer electronics, and online services markets, Apple’s mission statement and vision statement are fulfilled through relevant business goals and strategies. Based on this Five Forces analysis, the company addresses competitive forces and external factors through effective leaders, such as Tim Cook. This Five Forces analysis indicates external factors that Apple’s strategic efforts must focus on to keep its leadership in the industry.

Based on the Five Forces analysis model, external factors in Apple’s industry environment point to competitive rivalry or intensity of competition, and the bargaining power of buyers or customers as the primary forces for consideration in the company’s strategic planning. Nonetheless, all five forces influence the company’s business situation, together with the effects of other external factors, such as the industry and market trends identified in the PESTLE/PESTEL analysis of Apple Inc .

Summary: Five Forces Analysis of Apple Inc.

Apple’s generic competitive strategy and intensive growth strategies are partly based on competitive forces in the external business environment. These forces limit or reduce the firm’s market share, revenues, profitability, and business development potential. This Five Forces analysis points to the following strengths or intensities of competitive forces in Apple’s industry environment:

  • Competitive rivalry or competition: Strong force
  • Bargaining power of buyers or customers: Strong force
  • Bargaining power of suppliers: Weak force
  • Threat of substitutes or substitution: Weak force
  • Threat of new entrants or new entry: Moderate force

Recommendations. Considering the results of this Five Forces analysis, Apple must focus its attention on competitive rivalry and the bargaining power of buyers. This external analysis supports the company’s current position of continuous innovation. Innovation and the business competitive advantages shown in the SWOT analysis of Apple address the five forces in the external environment, although much of the company’s effort is for strengthening its position against competitors and for attracting customers to its products. An applicable course of action is to intensify research and development for innovation to develop novel products that complement iPhones, iPads, and other current products. Apple can also improve its support and resources for software or app developers, to strengthen the company’s ecosystem of hardware, software, and online services against the competitive challenges identified in this Five Forces analysis.

Competitive Rivalry or Competition with Apple (Strong Force)

Apple faces the strong force of competitive rivalry or competition. This component of Porter’s Five Forces analysis model determines the intensity of the influence that competitors have on each other. In Apple’s case, this influence is based on the following external factors:

  • High aggressiveness of technology firms (strong force)
  • Low differentiation of many products (strong force)
  • Low switching cost (strong force)

Competitors’ aggressiveness in innovation and marketing imposes a strong force in the information technology industry environment. In the market for consumer electronics, software, and Internet services, Apple competes with Google (Alphabet) , Microsoft , Samsung, and Sony . In the video-streaming market, Netflix , Disney , Amazon , and Facebook (Meta) compete with Apple TV Plus. This Five Forces analysis also considers other technology firms, such as IBM and Intel , which influence Apple’s competitive environment. Moreover, in terms of product differentiation, products in the market are generally similar in fulfilling specific purposes. For example, many popular apps are available for Android and iOS devices, and cloud storage services from different companies are similar and available to users on different platforms. In this Five Forces analysis of Apple, such a condition creates a strong force by making it easy for customers to switch to other sellers or providers. On the other hand, the low switching cost means that it is easy for customers to switch from Apple to other brands, based on price, function, accessibility, network externalities, and related concerns. The combination of these external factors in this part of the Five Forces analysis leads to tough competitive rivalry that is among the most significant considerations in Apple’s strategic management.

Bargaining Power of Customers/Buyers (Strong Force)

The bargaining power of buyers is strong in affecting Apple’s business. This component of Porter’s Five Forces analysis model determines how buyers’ purchase decisions and related preferences and perceptions impact businesses. In Apple’s case, buyers’ strong power is based on the following external factors:

  • Small size of individual buyers (weak force)
  • High availability of information to buyers (strong force)

It is easy for customers to change brands, thereby making them powerful in compelling Apple to ensure customer satisfaction. On the other hand, each buyer’s purchase is small compared to the company’s total revenues. In this Five Forces analysis of Apple, such a condition makes customers weak at the individual level. However, the availability of detailed comparative information about competing products’ features empowers buyers to shift from one provider to another. This external factor enables buyers to exert a strong force in the industry, although promotional strategies and tactics in Apple’s marketing mix (4P) can communicate tailored information to persuade customers to buy the company’s products. Thus, this part of the Five Forces analysis shows that Apple must include the bargaining power of buyers or customers as one of the most significant strategic variables in the business.

Bargaining Power of Apple’s Suppliers (Weak Force)

Apple Inc. experiences the weak force or bargaining power of suppliers. This component of the Five Forces analysis model indicates the influence of suppliers in imposing their demands on the company and its competitors. In Apple’s case, suppliers have a weak bargaining power based on the following external factors:

  • Moderate to high number of suppliers (weak force)
  • Moderate to high overall supply (weak force)
  • Large size of some equipment and component manufacturers (strong force)
  • High ratio of firm concentration to supplier concentration (weak force)

The global size of its supply chain allows Apple Inc. to access many suppliers around the world. In Porter’s Five Forces analysis context, the resulting high number of suppliers is an external factor that presents only a weak to moderate force against the company. Also, the moderate to high overall supply of inputs, such as semiconductors, makes individual suppliers weak in imposing their demands on Apple. However, some large suppliers, such as OEMs and producers of chips, significantly influence the industry. Nonetheless, in this Five Forces analysis case, the high ratio of firm concentration to supplier concentration limits suppliers’ power and influence in the industry. This external factor reflects the presence of a small number of big companies, like Apple and Samsung, in contrast to a larger number of medium-sized and large suppliers. Thus, this part of the Five Forces analysis shows that the bargaining power of suppliers is a minor issue in developing Apple’s operations management strategies for supply chain management, value chain effectiveness, innovation, and industry leadership.

Threat of Substitutes or Substitution (Weak Force)

The competitive threat of substitution is weak in affecting Apple’s computing technology, consumer electronics, and online services business. This component of the Five Forces analysis framework determines the strength of substitute products in attracting customers. In Apple’s case, substitutes exert a weak force based on the following external factors:

  • Moderate to high availability of substitutes (moderate force)
  • Low performance of substitutes (weak force)
  • Low buyer propensity to substitute (weak force)

Some substitutes for Apple products are readily available in the market. For example, instead of using iPhones, people can use digital cameras to take pictures, and landline telephones to make calls. In this Five Forces analysis of Apple, such an external factor exerts a moderate force in the industry environment. However, these substitutes have low performance because they have limited features. Many customers would rather use Apple products based on convenience and advanced functions. This condition weakens the force of substitution in impacting the company’s business in this Five Forces analysis context. Also, buyers have a low propensity to substitute. For instance, customers would rather use smartphones than go through the hassle of buying and maintaining a digital camera, an analog phone, and other devices. This part of the Five Forces analysis shows that Apple does not need to prioritize the threat of substitution in management decisions for business processes, like marketing, market positioning, and product design and development.

Threat of New Entrants or New Entry against Apple (Moderate Force)

Apple Inc. experiences the moderate force or threat of new entrants. This component of Porter’s Five Forces analysis model indicates the possibility and effect of new competitors entering the market. In Apple’s case, new entrants exert a moderate force based on the following external factors:

  • High capital requirements (weak force)
  • High cost of brand development (weak force)
  • High capacity of some potential new entrants (strong force)

Establishing a business to compete with Apple Inc. requires high capitalization. Also, it is extremely costly to develop a strong brand to compete with large companies, like Apple. These external factors make new entrants weak in this Five Forces analysis case of the IT business. However, there are large firms with the financial capacity to enter the market. For example, Google has already done so through its consumer electronics. Samsung also used to be a new entrant. These examples show that there are large companies that have the potential to directly compete with Apple Inc. in multiple markets. Thus, the overall threat of new entry is moderate. This part of the Five Forces analysis shows that Apple must maintain its competitive advantages through innovation and marketing to remain strong against new entrants’ moderate competitive force.

  • Apple empowers small businesses to grow and serve their customers .
  • Apple Inc. – Form 10-K .
  • Apple introduces global developer resource for labs, sessions, and workshops .
  • Apple scores record 13 Academy Award nominations .
  • Jahan, S. A., & Sazu, M. H. (2023). Role of IoTs and analytics in efficient sustainable manufacturing of consumer electronics. International Journal of Computing Sciences Research, 7 , 1337-1350.
  • Sforcina, K. (2023). Digitalizing Sustainability: The Five Forces of Digital Transformation . Taylor & Francis.
  • U.S. Department of Commerce – International Trade Administration – Software and Information Technology Industry .
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Table of Contents

Apple target audience , marketing strategy of apple, 5 key takeaways from apple marketing strategy, a case study on apple marketing strategy.

A Case Study on Apple Marketing Strategy

Breaking through with several inventions in the world of technology, Apple Inc. has been carving infinite milestones ever since its inception. Even though its innovations speak for themselves, this highly-valued giant corporation has invested heavily in its marketing team to soar high up as a tech maestro. Apple Inc. realized the role of brand marketing in the success of a venture from the start as a crucial way to connect with its target audience. This brand's marketing is so vigorously carried out and well-thought that it is often an inspiration and a place of research for marketing professionals. Here we bring you a well-curated case study on Apple's marketing strategy, the key takeaways to learn from this venture, and how to incorporate the same in your business and marketing strategies. 

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To understand its key strategies for marketing Apple products, let's first understand what Apple's target audience is like. Apple's target audience consists of middle-class and upper-class users who can pay higher for products that provide them with an incredible user experience. This means that these users have a higher disposable income and are willing to pay more for as high-priced products as Apple's. 

Let's take a look at Apple's target audience with this comprehensive analysis sourced from Business Research Methodology's report on Apple Segmentation :

Besides this primary classification, Apple also explicitly targets professionals working in specialized software like music, video, photography and all kinds of design careers. These working professionals prefer Adobe’s Final Cut, Photoshop and related editing software which work well with Macbooks and IPads than other operating systems. 

Even better, business professionals prefer Apple products such as iPods and Macbooks for their day-to-day work. Products like iPads and Macbooks are lighter and portable, so they are often selected by students (upper-class), educational institutions and teaching. 

Now coming to the marketing strategy of Apple, it is a combination of well-designed products with the right user experience, promotional campaigns, distribution, and pricing. Let’s take a look at all these features of Apple marketing strategy in detail:

Focus on Finer User Experience

Apple’s branding strategy is based on its stylish, more straightforward and lush products that focus on providing a user interface that is very simple to use and learn. They are lighter, easy to carry as well as durable. This minimal look and user experience makes it a perfect sell to its target audience, which comes from the middle to upper class.

Suave Yet Simple Advertising

Storytelling is such an essential part of every Apple ad as well as a marketing campaign. Often these ads focus on minimal design as well as high-quality images. They are either blended with music or a simple story. Apple consciously ensures that its advertising and marketing don’t use too much jargon or filler language in its ads. Instead, it shines a light on the product to let it speak for itself without showing what the price is like or using complicated words for its features.

Targeting the Right Markets

Apple is excellent at tapping into its target audiences like a genuine tech witch who knows their aspirations, preferences and pain points! Its market research is always on-point and crystal clear in its products, curation, and features. 

Here are the major critical takeaways from Apple Marketing Strategy:

  • Tapping into your target markets and audience is the key to curating and selling user experiences that value the preferences of its people. 
  • With simplicity and finesse in design, the right products with minimal designs and features can create a perfect impact for your brand.
  • Incorporating emotion in your advertising and marketing can also help you connect with your audience better. 
  • Don’t exaggerate the copy and conceptualizing of your advertising and marketing campaigns and prefer the “less is more” approach. Create shorter yet emotional and empathetic ads to captivate your target audience.
  • When you create an international brand value through quality and minimal, sophisticated design, you don’t need to compete in terms of price. Instead, your price will set you apart for your user experience and design features.
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Dr John Sullivan Talent Management Thought Leadership

Talent management lessons from apple: a case study of the world’s most valuable firm (part 1 of 4).

September 12, 2011

This past August Apple became the most valuable corporation in the world based on market capitalization, surpassing every firm in the technology industry and every other industry! As a consumer products company, its prolonged growth spurt is even more amazing because it has continued through economic times when consumers are reluctant to spend what little they have. Considering that Apple was near bankruptcy in 1997, its story is both extraordinary and noteworthy.

The extraordinary valuation is not a result of 30+ years of stellar performance. Apple has failed at many things. Its success isn’t the result of access to special equipment, manufacturing capability, or a great location, but rather superior leadership, access to great talent, and unusual talent management approaches.

Almost everyone in business is aware of Apple’s amazing product success and the extraordinary leadership of Steve Jobs. Some authors have described the firm’s approach to HR, but few have analyzed the firm close enough to identify  why the approaches work. Visits to the headquarters and interviews with HR leaders convinced me that there are lessons to be learned from this company. After two decades of researching and analyzing Apple’s approach to talent management, I have compiled a list of the key differentiators.

Apple Talent Management Approaches to Emulate

This three-part case study covers the many talent management factors that contributed to Apple’s extraordinary success in workforce productivity and innovation. It does not focus on the many important things that Steve Jobs did at Apple, because such things are not easily copied by others. It also focuses primarily on the approaches used within Apple’s corporate facilities versus those of Apple’s retail operations.

Agility Allows for Innovation into Completely New Areas

Many firms develop the capability to dominate their industry. Procter & Gamble, Intel, and Toyota are excellent examples. Apple is in a different league, however, because it has demonstrated the ability to shift into and dominate completely new industries every few years. For most of its history, Apple was a computer company (and its name used to be Apple Computer), but in the last decade Apple tackled the music industry with the iPod device and iTunes distribution channel. Next Apple conquered and dominated the smartphone industry with the iPhone and “App Store.” Most recently Apple challenged the PC as we know it and is in the process of disrupting the publishing industry. This ability to successfully shift from one industry to another in a few short years is known as agility. In my book, even wildly successful firms like Google, Facebook, Toyota, or Procter & Gamble can’t come close to matching Apple’s agility track record.

A great deal of Apple’s agility comes from the direction and vision of its senior leadership and its corporate culture, which reinforces the need to get ready for “the next big thing.” While Apple looks for agility in talent, the real key to Apple’s agility occurs post onboarding. At Apple, there is a cultural expectation that after succeeding in one task, you will immediately move on to something completely different. You know that you will have to retool and learn quickly. The expectation of radical change eliminates resistance and sends a message that employees can’t rest on their laurels. That means that they must mentally prepare for (and even look forward to) the next extraordinary challenge, even though you will get almost no “career path” help in determining which is the next best challenge for you. Apple employees work in numerous disconnected team silos, competing against one another with little or no foresight into the purpose or intended use date of their work.

The rapidly shifting work load means than an employee bored with their work won’t be for long because the work and the focus will change, a major attraction factor that brings in recruits desiring the challenge of radical change. Looking at the big picture, Apple’s ability to move into and dominate completely unrelated industries is only possible because of its extraordinary talent, the way that it manages it, and its approach to building an image that attracts the new skills needed to successfully move into completely new product areas.

A “Lean” Talent Management Approach Contributes to Extraordinary Productivity

Most firms strive to have a productive workforce. One of the best ways to measure workforce productivity is revenue per employee. Apple produces what can only be considered extraordinary revenue per employee; $2 million. A second measure of workforce productivity is profit per employee: nearly $478,000 for Apple (unbelievable considering it has a retail workforce).

If you are familiar with the concept of lean management, then you’ll understand the prime drivers for Apple’s extraordinary employee productivity. For years, the leadership of Apple has followed the philosophy that having less is more, meaning that by purposely understaffing and operating with reduced funding, you can make the team more productive and innovative.

Innovation at most firms is expensive because you must pay for a lot of trial and error. The lean approach, however, can improve innovation because with everything being tried, there simply isn’t enough time or money for major misses and re-do’s. “Unrealistic deadlines” at Apple mean that you have to get project problems solved early on, because there isn’t time to redo things over and over. Being lean forces the team to be more cohesive. Even providing a lean schedule forces everyone to be productive because they know there is no room for slippage. At Apple, the lean approach means that even with its huge cash resources, every employee must adopt the mentality of leanness. If you understand the lean concept and its advantages, you shouldn’t be surprised that numerous innovations have been developed in “garages,” the ultimate lean environment.

Build and Reinforce a Performance Culture

Any business analysis of Apple will reveal its laser focus on producing industry-leading results. While some feel the performance emphasis comes solely from Steve Jobs, the “performance culture” is continually reinforced by operational processes and practices. For example, having stock as a primary motivator forces employees to focus on the performance of the company and its stock. The rewards and recognition programs at Apple don’t include a component for effort or trying — only final results. Rather than celebrating numerous product milestones, only the final product unveiling is worthy of a major celebration.

A performance culture requires significant differentiation based on performance, and it’s clear that in this culture, the top performers and those who are working on mission-critical products are treated significantly differently. In fact, current and former employees frequently complained about the special treatment given to those designated as the “top 100 most important employees.”

Treating top performers differently may cause some employees to be disgruntled, but treating all employees exactly the same will frustrate your high-impact top performers and cause them to leave. Functions receive different funding also, based on their potential impact. Overhead functions that don’t directly produce product (i.e. HR) are often underfunded compared to product producing functions like engineering and product design.

Although there is certainly politics at Apple (where marketing seems to rule), having a degree from a prestigious school or past success on other products won’t get you far in the highly competitive culture at Apple. Jobs has no degree at all. The internal competition is fierce (even though they don’t know what other teams are doing) to develop or contribute to the most-talked about feature for the next WOW product.

Rather Than a Work/Life Balance, Emphasize the Work

Numerous HR functions proudly and prominently push work/life balance. Like them, Apple is proud of its long-established culture. You won’t find the term “balance” anywhere on the career site; instead, Apple makes it clear it is looking for extremely hard-working and committed individuals. On the website, for example, it proudly states: “ This isn’t your cushy corporate nine-to-fiver .” It reinforces the “hard work” message several times, including “ Making it all happen can be hard work. And you could probably find an easier job someplace else. But that’s not the point, is it ?

And: “ We also have a shared obsession with getting every last detail right. So leave your neckties, bring your ideas .”

If you don’t care about getting every precise detail perfect, great work, and a lot of it, Apple makes it crystal clear that this is not the place for you.

Next week: Part 2 — more talent management approaches to copy and learn from.

Talent Management Lessons From Apple … A Case Study of the World’s Most Valuable Firm (Part 2 of 4)

In Part 2 of this case study on Apple’s talent management practices, I look at its approach to innovation, compensation, and benefits, careerpathing, and online recruitment (its career site). Some approaches discussed are unique to sub-factions within Apple, as would be expected in any organization of significant size. It’s also quite rare for organizations that design, manufacture, and sell through direct retail to have consistent approaches across all units.

Talent Management Lessons To Learn and Copy (continued)

You should not be surprised to learn that the firm that made the term “think different” a brand uses talent management approaches that are well outside the norm. In addition to  the lessons presented in Part 1 , some approaches other firms can learn from Apple include:

Career paths reduce self-reliance and cross-pollination  — in most organizations, HR helps to speed up employee career progression. The underlying premise is that retention rates will increase if career progression is made easy. The Apple approach is quite different; it wants employees to take full responsibility for their career movement. The concept of having employees “own their career” began years ago when Kevin Sullivan was the VP of HR. Apple doesn’t fully support career path help because it doesn’t want its employees to develop a “sense of entitlement” and think that they have a right to continuous promotion.

Apple believes career paths weaken employee self-reliance and indirectly decrease cross-departmental collaboration and learning. Absent a career path, employees actively seek out information about jobs in other functions and business units. In a company where creativity and innovation are king, you don’t want anything reducing your employee’s curiosity and the cross-pollination between diverse functions and units. Automatically moving employees up to the next functional job may also severely narrow the range of internal movement within the organization, which could reduce the level of diverse thinking in some groups.

Create and manage a culture of innovation  — most firms have a culture with a singular focus on one attribute like performance, quality, customer service, or cost-containment. Apple is unique in that it has two dominant cultural attributes that exist side-by-side. The first (discussed in part one) is “performance,” with the second being “innovation”; the latter may actually be the strongest of the two. The dual emphasis works at Apple because the firm operates in the consumer technology field, where there is a universal expectation for “disruptive” performance.

Producing $2 million-plus in revenue per employee certainly establishes Apple as a performer, but it is its industry-dominating product innovation that differentiates it from competitors like HP, Sony, Microsoft, and IBM. Three factors drive the innovation attribute, including the expectation of continuous innovation, extreme secrecy within the product development process, and continuous brainstorming/challenge meetings (even at play just days before a product launch).

“I expect a pony”

Apple’s culture of innovation is unique because the goal is to produce a “pony, not a real horse but instead something so desirable that everyone wants it and considers it ‘gorgeous.’” Simple evolution doesn’t cut it — only extraordinary industry-leading innovation that results in WOW products does. To accomplish that, Apple doesn’t do what most consumers assume it does. Instead of developing completely new industry technologies, Apple takes existing technologies and then bundles numerous small developments on top to produce what appears to the public as giant step forward. It takes a powerful culture and group of managers to delay taking great work public faster, but Apple knows that numerous small releases don’t produce the same media and consumer buzz.

The expectation of innovation permeates the culture

The expectation of innovation is driven by Apple’s history of innovation, its leaders (who forbid the use of “that’s not possible”), and the peer pressure among employees to be among the contributors to the final product that the customer sees. In order to generate this expectation of innovation, it doesn’t rely on posters or motivational slogans (although they have those too …  around here, changing the world just comes with the job description ). Instead, every communication, process, product launch event, and even advertising slogans ( Think Different, Imagine the Possibilities, Here’s to the crazy ones. The misfits. The rebels. Etc. ) make it crystal-clear that innovation is at the heart of Apple’s success. Innovation has driven Apple’s past and current successes, and it will continue to drive future success. After walking in the door of the corporate offices in Cupertino, California, you can literally “feel” the expectation to innovate.

Secrecy drives internal competition

The second critical driver of innovation is the product development process. This innovation process is unique in that it doesn’t rely on a formal “ideation” type model; instead, it has been described as an “iteration” process energized by peer competition and Apple’s famous siloed/secret approach to teams. Apple does many things using small development teams, as many firms do, but doesn’t rely on a single team to design each product element. Multiple teams may be assigned to the same area (or they may accidentally wander into the same area). The approach has been called 10 to 3 to 1 because 10 teams may work on a product area independently. When work is ready for review a formal peer review, it will whittle 10 mockups to three and eventually down to one. It is an approach that is unique to Apple. Outsiders may consider it expensive and slow, but they can’t argue it isn’t effective.

Apple is well known for its obsession with secrecy in order to heighten the impact during a product release. Secrecy is also the most unique element in its innovation process. In order to maintain secrecy, development and design teams are intentionally siloed. As a result of these communication barriers, team leaders may not be initially aware of how many teams they’re competing against and what those other teams are working on. The level of open collaboration that you might find at other firms like Google is not possible under this process, but neither is early-stage groupthink. Once possible feature solutions move forward to peer review, the organization benefits from broader scope best-practice sharing and collaboration. While it may seem counterintuitive, Apple has turned “team silos” that would be a negative factor at most firms into a positive force.

Paired design meetings force free-thinking to continue until the end of the design

Another element of the design and innovation process is the holding of weekly “paired design meetings.” Every design team is expected to hold two meetings each week. The first is a traditional production meeting where small refinements are discussed and made. The second is a “go crazy” meeting, in which everyone brainstorms and uses free-thinking to scope out parameters. Most organizations stop these brainstorming meetings once the design parameters are clear, but Apple continues them long into the development cycle to guarantee that completely new ideas will constantly raise the innovation bar.

The talent management lessons to learn in the area of innovation include the concept that intense competition may produce innovation faster than any formal ideation process. In addition, peer vetting of ideas, delaying collaboration until toward the end of the development process, and requiring the continuous use of brainstorming processes may result in bolder innovations and higher levels of risk-taking.

Tying economic rewards to overall company success can reduce selfish behavior  – You won’t find anyone who will publicly argue that Apple pays well with regard to base compensation. Economic rewards at Apple are significant, but largely tied to the company’s valuation. The primary monetary motivator at Apple is “the opportunity for wealth creation” as a result of stock ownership. Most employees at Apple get periodic stock grants to reward their contribution. By putting the focus on the stock, they send every employee a clear message that individual accomplishments are important only if they directly contribute to the overall success of the company. This approach, coupled with the firm’s famous “product focus,” keeps everyone focused on product success rather than individual results and individual rewards. Individual rewards are provided based on performance and consist of stock grants and cash bonuses up to 30% of base salary. Apple’s retail employees also have stock opportunities. They are paid on an hourly basis and do not receive a sales commission.

Benefits and even pay play a secondary role in recruiting and retention — at Apple, the primary long-term attraction and retention factors are stock growth and exciting work. Because of the importance of these two factors, its message on benefits is clear. If you’re doing the best work of your life and having a major impact on the world, do you really need sushi in the cafeteria? (It has that also.) Although most talent competitors to Apple spend huge amounts of money on benefits, Apple’s offerings are spartan when compared to Google, Facebook, and Microsoft. While Apple’s health plan is well-funded, and it has good food and an on-campus gym, neither the food nor the gym is free. One perk that does excite potential applicants (especially in retail) is the employee discount on Apple products which is given to every employee. These discounts further support and reinforce Apple’s companywide emphasis on the product.

Your corporate jobs website should boldly inspire  — because the primary goal of most corporate career/jobs websites is simply to provide company and job information to potential candidates, most corporate job pages are chock-full full of information. Apple’s website is lean on information but strong on inspiration. As a result, after exploring the site, the potential applicant comes away inspired rather than with a pile of information about the company.

There are two categories of inspirational messages on the site, and each one is bold. The first group of corporate messages makes it clear that Apple is “anti-corporate.” In fact, the first bold headline you see is “ corporate jobs, without the corporate part .” They also highlight what they are proud  not  to have including  endless meetings, being bureaucratic, having executive perks and managers wearing suits . Instead they boldly tell you “ don’t expect business as usual .”

The second category of inspiration on the website concentrates on openness, innovation, and changing the world. Key phrases include “ open minds, collaboration, and of course innovation .” You will also find the phrase “ there’s plenty of open space — and open minds ” (obviously perfect sentence structure isn’t a high priority either). Finally, they promise to “ give you a license to change the world ” and “ be inspired .”

Its focus on inspiration is so strong that for a tech firm, there is a surprising  lack of technology-speak on the page . You will not find blogs, videos, or any mention of Apple’s availability on Twitter or Facebook easily. When it comes to mobile access, the site will render fine on the latest smartphones, but receives a 1.51/5.0 with regard to meeting mobile standards. If you visit the site, you might even find links that don’t work and features that load very slowly. What you will find is inspiration — loads of it.

I’ll leave you with this introductory statement from its career site:

“There’s the typical job. Punch in, push paper, punch out, repeat. Then there’s a career at Apple. Where you’re encouraged to defy routine. To explore the far reaches of the possible. To travel uncharted paths. And to be a part of something far bigger than yourself. Because around here, changing the world just comes with the job description.”

Next week,  Part 3:  Employer branding, recruiting, retention, and other talent management approaches to copy and learn from.

Talent Management Lessons From Apple… A Case Study of the World’s Most Valuable Firm (Part 3 of 4)

Want to impress your CEO? Few CEOs wouldn’t mind having the innovation track record of Apple, so there is probably no quicker way to become an “instant hero” then by learning how Apple’s talent management practices have contributed to its success and applying those practices relevant to your organization. In this installment of the case study, we’ll look at internal branding, employer branding, and recruiting.

Internal Brand Encourages Fighting the Status Quo

Steve Jobs and the management team at Apple have worked tirelessly to build a unique internal brand image at Apple that positions employees (at least mentally) as revolutionaries and rebels. Many years ago the organization influenced this internal brand by challenging employees to think how much more exciting it would be to be a pirate, rather than someone who followed the formal protocol of the regular Navy. It even flew a pirate flag over its corporate headquarters. The tradition of being revolutionaries is upheld even today with many supportive slogans including “Part career, part revolution.”

Apple is well known for using T-shirts, parties, and celebrations to build cohesion and to reinforce the internal brand as a ragtag group of revolutionaries. By getting employees to view their role as attacking the status quo, it helps to spur continuous and disruptive innovation. It has been successful in maintaining that internal brand image despite the fact that the top-down approach and intense secrecy run counter to its hatred of bureaucracy and all things “too corporate.” The external image further supports the internal brand.

You Can Have a Strong External Employer Brand Without an Employer Branding Program

Many among us dream of working at Apple, but unlike Google and Facebook, it’s pretty difficult to find out what it’s actually like to work there. A quick search on the Internet reveals that apart from a few alumni, most who have roamed the halls are pretty tight-lipped about their experience. While that silence is probably largely driven by Apple’s widespread use and vigilantly enforced non-disclosure agreements, even the corporation itself is relatively mum. You won’t find a great deal of employment advertising or find the Apple name on any one of a dozen or more best-company-to-work-for lists covering the technology sector, even though competitors like Google, Microsoft, and Intel are regularly listed.

Despite the silence, most would agree that Apple has a great “employer brand image”; Universum ranks Apple No. 10 among global engineering companies. The lesson to be learned is simple: use management practices that support your desired brand and elaborate brand management work will be unnecessary. Get your potential applicants to admire your firm for who and what the firm does by being the admirable firm.

Your Product Brand Should Serve Double-duty as Your Employer Brand

Instead of spending millions on building an employer brand, Apple lets its product brand do all the talking. Apple works hard on building and maintaining its product brand, which is ranked as  the #1 global brand  according to BrandZ ranking. Although product brand messages are intended primarily for customers, the messaging which emphasizes innovation and thinking differently also hasa major impact on potential applicants and employees. The logic is that if your organization lives up to its product promises, then it is natural to expect that the company’s jobs would also live up to the firm’s brand promise. In their minds, potential applicants make the connection between great products and a great place to work. In addition, because Apple’s products are talked about by everyone, there is a lot of brand association power lauded on those who work at Apple.

This public awareness and admiration can, coupled with a strong employee referral program, make generating a high volume of quality applicants easy. That same attention and curiosity will also enhance a firm’s retention rates because your employees will realize that the public sees them as collectively changing the world. Having employees believe that they are likely doing “the best work of their lives” is a powerful situation that most companies can’t easily mimic.

Being a Most-admired Firm May Be Enough

Apple does receive some notoriety in the press as the world’s  “most admired firm.”  In fact, Apple has been No. 1 for four years running on the list. That is an amazing feat. Apple dominates this list by being ranked first in eight out of the nine possible ranking factors. Those eight categories include factors that impress potential applicants, including people management, quality of management team, innovativeness, and social responsibility. The most admired list is based on the perceptions of business people and executives, something that Apple excels at managing. Having your firm admired garners enormous publicity in addition to increasing employee pride, engagement, and retention. The lesson to be learned by other firms is that if you don’t offer great benefits (which Apple doesn’t) you can get the same or even larger impact if you manage the perceptions of executives at other firms.

We want our people to be on the leading edge, so that everyone wants them… and then we must treat them right so they will stay, no matter what offers come along! – Apple Senior Manager

Aggressively Recruit the Best From Other Firms

The pirate-raiding mentality at Apple certainly carries over into recruiting. Apple has a long history of recruiting away top talent from other firms. In fact, the development of its iPod probably wouldn’t have occurred if it wasn’t for importing external talent from firms that didn’t appreciate the value of this new technology. Steve Jobs himself has been known to get directly involved in recruiting top talent. Apple has a top-grading type philosophy in that it targets top performers. Jay Elliot, its former VP of HR, cites one of Apple’s core principles as: ”Always… hire the best  ’A’ people. As soon as you hire a B, they start bringing in Bs and Cs.”

Apple’s recruiting approach is evolving because it has recently imported a team of recruiting leaders from Electronic Arts, but historically, despite the aggressive philosophy, its recruiting methods were pedestrian. It uses job boards and has an employee referral program that has paid up to $5,000, but its candidate experience is far from perfect. Glassdoor users rate Apple interviews 3.0/5.0 with regard to difficulty. Its college recruiting effort isn’t exceptional, with the exception of using recent college hires to help recruit the new crop. The key lesson for other firms to learn is that you can generate huge volumes of high-quality applicants if your firm is highly admired and if potential employees believe that they will be working on leading-edge products that everyone will be talking about.

In the retail group, there are two notable recruiting practices. The first has been the naming of the “ Genius Bar ,” where technical support is provided. Many applicants and employees in the retail area seem to be willing to put up with the relative drudgery of retail work simply for the opportunity to someday work their way up to becoming certified as a “genius.” The second is the use of employee referral cards that are well-designed and powerful. They reinforce the companywide focus that originated with Steve Jobs on recruiting the best from other firms. Recruiters and employees who witness great customer service at other retail and customer service outlets hand the card to those few individuals who provide impressive service. The front of the referral cards say “You’re amazing. We should talk.”

The back praises the individual and their work with a near perfect narrative … “ Your customer service just now was exceptional. I work for the Apple store and you’re exactly the kind of person we’d like to talk to. If you’re happy where you are, I’d never ask you to leave. But if you’re thinking about a change, give me a call. This could be the start of something great .”

Next week,  Part 4 : Apple’s approach to training and development, management, leadership, and other difficult-to-categorize talent management lessons to learn from.

Talent Management Lessons From Apple… A Case Study of the World’s Most Valuable Firm (Part 4 of 4)

The purpose of this case study was not to say that you should copy everything Apple does, but rather to point out that with relentless execution and focus on key factors even a firm near bankruptcy can fight its way back to the top. In 13 years Apple has transformed itself from an organization of the verge of collapse to the world’s most valuable firm, amassing a phenomenal innovation record in the process. While Apple’s approach wouldn’t work for every firm, there are lessons to be learned that can influence program design regardless of industry, firm size, or location.

In part 4 of this case study (here’s parts  1 ,  2 , and  3 ) on talent management lessons, the attention is on development practices, role of management, and inspirational leadership.

Make your employees “own” their learning, training and development  — because Apple frequently produces new products requiring expertise in completely different industries (i.e. computers, music devices, media sales, and telephony), its employee skill set requirements change faster than at almost any other tech firm. While there is plenty of training available, there is no formal attempt to give every employee a learning plan. Just as with career progression, employee training and learning are primarily “owned” by employees. The firm expects employees to be self-reliant. Its retail salesforce for example receives no training on how to sell, a practice that is certainly unconventional in the retail environment. The lesson is simple: providing target competencies and prescribing training can weaken employee self-reliance, an attribute problematic in a fast-changing environment. Employee ownership of development encourages employees to continuously learn in order to develop the skills that will be required for new opportunities.

Make managers undisputed kings  — Apple is not a democracy. Most direction and major decisions are made by senior management. “Twenty percent time” like that found at Google doesn’t exist. While in some organizations HR is powerful when it comes to people management issues, at Apple, Steve Jobs has a well-earned reputation for deemphasizing the power of HR. Although Apple was the first firm to develop an HR 411 line, I have concluded that most of the talent management innovations at Apple emanate from outside of the HR function. There is a concerted effort to avoid having decisions made by “committees.” Putting the above factors together, it is clear that at Apple, managers are the undisputed kings. The resulting decrease in overhead function interference, coupled with the increased authority and accountability, helps to attract and retain managers that prefer control. Unfortunately, concentrating the authority has resulted in having some managers being accused of micromanagement and abusing team members.

Having a product focus drives focus, cooperation, and integration  – Apple is notably famous in the business press for its “product-focused” approach (versus a functional or regional focus). Everything from strategy to budgets to organizational design and talent management functions are designed around “the product.” One of the primary goals of talent management is to ensure that the workforce is focused on the strategic elements that drive company success. That focus can be distracted with selfish or self-serving behavior that instead shifts the emphasis to the individual, a business function, a particular business unit or even a region. Although deciding to have a product focus is normally a business decision, it turns out that Apple’s strong product focus also has significant positive impacts on talent management.

This laser focus on producing a product makes it easy for everyone to prioritize and focus their efforts. A product focus is so powerful because it’s easy for employees to understand that final products can never be produced without everyone being on the same page. A product focus increases coordination, cooperation, and integration between the different functions and teams because everyone knows that you can’t produce a best-selling product without smooth handoffs and a lack of silos and roadblocks. With a singular focus on producing product, there is simply less confusion about what is important, what should be measured, what should be rewarded, and what precisely is defined as success. A product focus increases the feeling of “we’re all in this together” for a single clear purpose: the product.

Apple purposely offers only a relative handful of products, so employee focus isn’t dispersed among hundreds of products as it is at other firms. By releasing products only when it can have a major market impact, Apple essentially guarantees that every employee can brag that they contributed to an industry-dominating product that everyone is aware of. This focus on product helps to contribute to employees feeling that they are “changing the world.” This focus may also reduce the chance that employees will notice that the day-to-day work environment with its politics and the required secrecy may be less than perfect. And because Apple is no longer a small firm, with nearly 50,000 employees, a unifying and inspiring theme is required to maintain cohesion and a single sense of purpose.

Find a passionate and inspirational leader  — although Steve Jobs is no longer the CEO, no analysis of Apple would be complete without mentioning his importance in the firm’s success and the design of its talent management approach. He influenced nearly every aspect of the talent management approach. Not only is he one of the highest-rated CEOs by the public (he is  ranked  number three on the glassdoor.com list) but as a role model, he has had a huge impact on innovation, productivity, retention, and recruiting. His value is indisputable. The day after he resigned, Apple’s stock value fell by as much as $17.7 billion. It is too early to tell whether the new CEO, Tim Cook, who is markedly less inspirational, will be able to maintain the momentum that Jobs created. He has already shifted some executives and changed the company’s philanthropy approach by instituting a matching gift program for charitable donations.

Other miscellaneous talent management issues  — Apple executives are certainly in high demand at other firms that seek to be equally as innovative (for example, the head of the retail operation recently left to become CEO at JCPenney). Despite this demand, Apple certainly doesn’t have any significant turnover problems. You can, however, find  plenty  of negative comments about Apple on sites like glassdoor.com. Some describe Apple’s approach toward employees as a bit arrogant, and employees are certainly pushed to their limits. If you don’t “bleed six colors,” you simply won’t enjoy your experience at Apple for long. Although originally the firm emphasized employee recognition, it is not easy for those outside the firm to connect recent product successes to a single individual or team.

Apple is a team environment. Although many teams are forced to operate in isolation, that actually helps to build team cohesion. The competition between the different development teams is also intense, but that also helps to further strengthen cohesion. Like most engineering organizations, its decision-making model is certainly focused on data. Apple management likes to control all aspects of its products, but despite that, it is one of the best at using outsourcing to cover areas like manufacturing, which it has determined is not a core corporate competency.

Final Thoughts

Although Apple clearly produces extraordinary results, its approach to talent management is totally different than that of Google and Facebook, which also produce industry-dominating results. As Apple has grown larger, its rigor around sustainable innovation has grown as well, a feat that proves impossible for most organizations including the likes of HP, Microsoft, and Yahoo.

The three “big picture” learnings I hope you walk away from this case study with include:

  • Focus on “the work” — it is management’s responsibilty to do whatever is necessary to keep work exciting and compelling.
  • Strive for continuous innovation — Apple’s emphasis on being “different” is so strong that it can’t be overlooked by any employee or applicant. It delivers industry-dominating innovation levels because everyone is expected to.
  • Deliver on your brand — Apple works hard to make sure that potential applicants, employees, and even competitors admire its products, the firm, and how it operates.

These three factors are not easy to copy, but they are certainly worth emulating. If you can bring them and the results that they produce to your firm, there is no doubt that you will be a hero.

Author’s Note : If this article stimulated your thinking and provided you with actionable tips, please take a minute to follow and/or connect with Dr. Sullivan on  LinkedIn .

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Apple Inc. in 2023

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a case study on apple

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Apple - The Development Of iEcosystem

Sarika Anand

Sarika Anand

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Apple.

The Apple logo is very identifiable whether you're walking down a crowded street in a major city or travelling through the highways. Whenever you spot a MacBook, an iPad, or an iPhone, you immediately recognize the logo and know who built it. Apple has accomplished more than just technological domination. The corporation has achieved something that many people strive for: international name recognition and a reputation that will outlast everyone alive today.

The company's tagline from 1997 to 2002, "Think Different," may have contributed to Apple's success. While not always hailed as a triumph, it is the result of foresight in the current competitive market. While many of us possess Apple devices, few are familiar with their history. When did Apple get its start, and how popular was it at its inception? When did Apple become well-known? And why did Apple come so close to going bankrupt? However, such achievement does not happen instantly and is difficult to duplicate. So, what is this mysterious Apple sauce? Let's have a look.

Apple - Company Highlights

About Apple, and How it Works? Apple - Industry Apple - Name, Logo, and Tagline Apple - Founders Apple - Startup Story Apple - Apple without Jobs Apple - The Fall Apple - When Did It Become A Big Name? Apple - Vision, and Mission Apple - Business Model Apple - Investments Apple - Acquisitions Apple - Competitors Apple - Future Plans

About Apple, and How it Works?

Apple Inc. is a global technology company headquartered in Cupertino, California, that specialises in portable electronics, software applications, and internet services. Apple is the fourth-largest personal computer vendor by unit sales, the world's second-most valuable company, the largest information technology company by revenue (totalling US$365.8 billion in 2021) and the second-largest mobile phone manufacturer. Along with Amazon, Alphabet, Microsoft, and Meta, it is one of the five American behemoths in information technology businesses.

Apple Inc. produces, builds, and sells computers and associated computing and communication devices, as well as services, software, networking solutions, and peripherals. Apple distributes its goods through its online shops, retail locations, direct sales representatives, resellers, and third-party wholesalers all around the globe.

The iPhone is Apple's series of cell phones that run on Apple's operating system called iOS. The Mac range of computers is centered also on the business's macOS operating system.

The iPad is a range of multi-purpose tablets from Apple that run on the iPad OS operating system. Apple TV, Air Pods, Apple Watch, Home Pod, Beats products, iPod touch, and other Apple-branded and third-party accessories are included under Home, Wearables, and Accessories.

The Company's wireless headphones that interface with Siri are known as Air Pods. The Apple Watch is the firm's smartwatch series. AppleCare, Advertising, Cloud Services, Digital Content, and Payment Services are among its offerings.

Apple - Industry

The worldwide economy has been severely impacted by the COVID-19 pandemic . Many end-user sectors, including electronics manufacturing, have been impacted. According to data from an IPC study conducted in March 2020, 40% of global electronics manufacturers and suppliers polled anticipate that the COVID-19 outbreak will have the greatest impact on consumer electronics. Another 24% of respondents said that industrial electronics would be the worst hit, with 19% predicting that the automotive electronics category would be the most brutal damage.

Electronic computers, such as mainframes, laptops, pcs, workstations, and software services, as well as computer peripheral devices, are manufactured by companies in this business. Apple, Hewlett Packard Enterprise, Dell, IBM, Lenovo (Hong Kong), ASUS (Taiwan), and Canon (Japan) are the companies that belong to this sector or industry. Annual global unit sales for 2021 hit 340 million units, up 15% from the previous year. With large exports, Europe, Africa, and the Middle East, as well as the Asia Pacific, excluding Japan, led to the rise of this industry. During the projected period, which is 2021-2026, the Electronics Manufacturing Services Market is estimated to grow at a CAGR of 9%.

Apple - Name, Logo, and Tagline

Jobs revealed in his biography written down by Walter Isaacson that he was now on one of his fruitarian diets. He was driving back from an apple farm when he came up with the name for the firm that would transform his life. Steve Wozniak's book, "iWoz: Computer Geek to Cult Icon," confirms this. Wozniak, who drove Jobs home from the airport following that trip, claimed that the firm name came to him during the journey. According to Jobs, the "apple orchard" he mentioned was a commune.

According to Jobs' biography, he believed the name "Apple Computer" sounded "energetic, fun, and not intimidating" - all crucial elements for a firm that intended to transform computing and make it far more approachable. And, that's where the logo came from.

Apple Logo

Apple's tagline says, "Think Different."

Apple - Founders

Steve Jobs, Ronald Wayne, and Steve Wozniak founded Apple Computers Company as a business deal on April 1, 1976.

Founders of Apple - Steve Jobs (left) and Steve Wozniak (right)

Steve Jobs was the co-founder and former CEO of Apple and Pixar Animation Studios. Jobs attended Reed College in Portland, Oregon after graduating from Homestead High School in Cupertino, California in 1972. He dropped out after one semester and went on to study philosophy and other cultures.

Steve Jobs had a keen passion for technology, therefore he went to work for Atari Inc, a major video game producer at the time. He became acquainted with Steve Wozniak, a fellow designer, and attended Homebrew Computer Club meetings with him. On August 24, 2011, Jobs resigned as Apple's CEO and became Chairman of the Board of Directors. Jobs passed away on October 5, 2011.

Ronald Wayne

Ronald G. Wayne is mainly remembered as one of the co-founders of the Apple tech firm, with Steve Jobs and Steve Wozniak, the company's primary drivers. It was a brief journey compared to the years he spent inventing and manufacturing slot machines and other professional gaming devices. He's a skilled innovator with over a dozen US patents under his belt, covering a wide spectrum of essential concepts.

Steve Wozniak

For the past three decades, Steve Wozniak has been a Silicon Valley star and philanthropist. His design of Apple's original line of devices, the Apple I and II, impacted the popular Macintosh.

With Wozniak's Apple I personal computer, Wozniak and Steve Jobs launched Apple Computer Inc. in 1976. He unveiled his Apple II personal computer the next year, which had a central processing unit, a keyboard, colour graphics, and a floppy disc drive.

Wozniak was active in several corporate and humanitarian endeavours after leaving Apple in 1985, concentrating mostly on computer capabilities in schools and emphasising hands-on learning and promoting student creativity.

a case study on apple

Apple - Startup Story

The garage where Apple-I was developed

Steve Jobs, Steve Wozniak, and Ronald Wayne created Apple in 1976 to sell Wozniak's hand-built PC, the Apple 1. The Apple 1 was supplied as a motherboard that had a Central processing unit, RAM, and some rudimentary textual-video chips. It had no built-in keyboard, monitor, casing, or other Human Interface Devices at the time.

The Apple 1 was released in July 1976 and sold for $666.66. Only a few weeks after the firm was created, Wayne chose to quit. He accepted an $800 check, which was worth about $72 billion forty years later. Wayne was the one who hand-drew the initial Apple logo, which was later replaced with Rob Janoff's bitten apple symbol in 1977.

On January 3rd, 1977, Apple Computer Inc. was founded. Mike Markkula, who was interested in the Apple-1, gave the team the necessary funds and commercial acumen. Mike Markkula, the third employee, owned a third of the firm. He nominated Michael Scott as the company's first president and CEO because he believed Steve was too young and not responsible enough to handle the role.

The Apple II, designed by Wozniak, was released in 1977. The Apple II computers were able to stay on top of market leaders Tandy and Commodore PET thanks to VisiCalc (the world's first 'killer-app'), a revolutionary spreadsheet and computing software. Because of its office compatibility, VisiCalc provided customers with another reason to acquire the Apple II. The Apple II was able to change the computer industry by introducing colour graphics. Apple had a genuine office with many workers by 1978, as well as an Apple II production sector.

Revenues for Apple doubled every four months in the following years. Between September 1977 and September 1980, their annual revenues increased from $775,000 to $118 million (an average annual growth rate of 533 per cent).

On December 12, 1980, Apple came out publicly for $22 per share. Apple's $4.6 million shares sold out very instantly, raising more money than just about any other IPO since Ford Motor Company in 1956. Steve Jobs , the largest shareholder, gained $217 million from the IPO. The company's IPO also made 300 additional people millionaires overnight.

Apple - Apple without Jobs

As tensions between Jobs and John Sculley, the company's third CEO, developed, Jobs sought to depose Sculley through a revolt, which collapsed. Apple's board of directors sided with Sculley and relieved Jobs of his work responsibilities. Jobs subsequently left his position and started NeXT, a firm that makes powerful workstations. Around the same time, Steve Wozniak sold most of his stock, and left the company, claiming that the firm was heading in the wrong way.

With Jobs gone, the board members were willing to decide what type of computers Apple might create. They chose to sell more costly Macs to high-end clients. Because Steve Jobs was resistant to raising prices, this strategy could not be implemented until after he had departed. They concluded that even if lesser units are sold, profitability will be comparable or greater. This approach was known as "55 or die," and Jean-Louis Gassée required that the Macintosh II had to make at least 55% profit per unit. Sculley hired Gassée to take the role of Steve Jobs.

Although Apple computers were more costly than other computers on the market, they offered advantages such as the UI that attracted customers. In 1991, Apple released the PowerBook laptop with the System 7 operating system. System 7 was responsible for providing the Macintosh OS colour, and it was utilised until 2001 when OS X was introduced.

Apple attempted to expand into new areas throughout the 1990s. Gassée was also involved in the creation of innovative products like the eMate and the Newton MessagePad, with the hope that they would propel the business to an unprecedented level.

a case study on apple

Apple - The Fall

When IBM clones became inexpensive and Microsoft's influence grew in the latter part of the decade, Apple's "55 or die" strategy failed. Even while Macs had an extensive software library, they were constrained. On the other hand, Windows 3.0 was on sale for low-cost commodity machines.

Apple intended to re-enter the industry, so they released a new range of devices called the Quadra, Centris, and Performa. Because Apple computers were only accessible by mail or authorised dealers at the time, the Performa was designed to be a stocking item for lifestyle merchants and department stores. Back then, there has been no Apple Stores. Customers, on the other hand, were confused by this since they didn't comprehend the differences among the variants.

Apple has tried portable CD audio players, digital cameras, speakers, TV appliances, and other items, but they all failed. Apple's stock price and market share dropped sharply. To compound the error, Sculley spent a significant amount of time and money porting System 7 to the new IBM/ Motorola PowerPC CPU rather than the Intel processor. Apple had no luck regaining market share since most software was designed on Intel CPUs, which were cheaper.

The Apple board had enough with the very disappointing line of devices and the pricey choice to switch to PowerPC. Sculley was then replaced as CEO by Michael Spindler, a German expatriate who had worked with Apple since the 1980s. Gil Amelio succeeded Spindler as CEO in 1996.

Amelio implemented significant reforms, including mass layoffs and cost reductions. His term was also marred by the shares of Apple hitting a 12-year low. In February 1997, Amelio chose to buy Jobs' NeXT Computer for $429 million, bringing Steve Jobs back to Apple.

Apple - When Did It Become A Big Name?

The iPod, another Apple invention, was introduced in 2001. It was advertised as having thousands of music tracks worth of memory on its 5GB hard drive, which was an astonishing accomplishment for an MP3 player at that very time.

In 2003, Apple launched the iTunes Music Store to augment this. This followed the introduction two years before of iTunes, Apple's digital music software solutions. In 2003, Apple introduced a variant for Windows, and over the next several years, it began moving out to the rest of the globe. The iTunes Music Store was a convenient method for US residents to legally purchase music online; in 2006, it changed its name to the iTunes Store to include video services too. In 2005, Apple computers had Intel chips, allowing them to run Windows. All Apple PC hardware, including iMacs and MacBook Pros, will be Intel-based in the future.

In 2007, Apple Computer Inc. changed its name to Apple Inc. to reflect its expanded product line. 270,000 iPhones were ordered during the first 30 hours after its release, earning it the moniker "Apple's destiny changer."

The debut of the iPhone, iPod Touch, and iPad devices were met with overwhelming success. Apple introduced the App Store in July 2008 to offer third-party iPhone and iPod-Touch software. The App Store sold 60 million apps in a month and generated an average daily income of $1 million. Because of the iPhone's success, Apple became the world's third-largest mobile device provider.

In October 2010, Apple stock achieved an all-time high of $300. On August 24, 2011, Steve Jobs stepped down from his role as CEO owing to health concerns and was succeeded by Tim Cook . Jobs died on October 5, 2011, bringing an end to a great period for Apple and a major shift in the company's history.

Apple, on the other hand, continues to dominate the market with ground-breaking technical marvels.

a case study on apple

Apple - Vision, and Mission

Apple's mission is “ to bring the best user experience to its customers through its innovative hardware, software, and services .”

Apple - Business Model

Apple's business model is divided into two parts: products and services. In 2021, Apple earned more than $365 billion in revenue, with $191.9 billion coming from iPhone sales, and $38.3 billion from accessories and wearables (AirPods, Apple TV, Apple Watch, Beats products, Home Pod, iPod touch, and accessories),  $35.2 billion from Mac sales, $31.86 billion from iPad sales, and $68.4 billion from services.

  • Products - iPhone, Mac, iPad, as well as wearables, home, and accessory devices, are among the product lines (Air Pods, Apple-Watch and more)
  • Services -  AppleCare+, Digital Content Stores and Streaming Services, and the AppleCare Protection Plan, Apple's Cloud Services, Licensing, and other services like Apple ArcadeTM, Apple News+, Apple CardTM, and Apple Pay, a cashless payment service, are all part of the services business.

Apple - Investments

Apple - acquisitions, apple - competitors.

Microsoft, Samsung, Lenovo, Dell, Sony, HP, Xiaomi, Asus, Huawei, and Oppo are the top competitors of Apple.

Apple - Future Plans

Every year in June, Apple has its global Annual Developers Conference, and in 2022, the keynote will be held on June 6. Apple will use the event to debut its next-generation software, which will be available in the autumn.

Apple is said to be developing a folding iPhone with a screen size of 7.5 to 8 inches and a release date of 2023 at the utmost. Apple is reported to be working on interactive virtual goggles with an inbuilt processor, dedicated high-end displays, and a Reality Operating System. The gadget will combine hand gestures, touch panels, and voice activation for interaction, and it is projected to cost around $3,000. In 2023, the AR/VR headset is projected to be released.

Apple is working on upgraded 14-inch and 16-inch MacBook Pro models with M2 Pro and M2 Max processors. The M2 Max processor will include a 12-core CPU and a 38-core GPU, and the new computers will be available in 2023.

The storyline of Apple's electric vehicle research has undergone numerous plot twists, but reliable Apple analyst Ming-Chi Kuo claims that the company is still targeting a completely autonomous automobile, instead of just a technology offering, with a launch date between 2023 and 2025.

Apple - FAQs

What does apple do.

Apple Inc. is a global software company headquartered in Cupertino, California, that specialises in portable electronics, software applications, and internet services

When was Apple founded?

Which companies do apple compete with.

Microsoft, Samsung, Lenovo, Dell, Sony, HP, Xiaomi, Asus, Huawei, and Oppo are some of the companies Apple competes with.

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Apple Case Study

Executive summary, introduction, measuring capability performance, options, recommendations and implementations, list of references.

Since Apple was established in mid 1970s, its popularity has become immense especially in computer technology industry. Its full potential was realised when it shifted its focus from marketing and promotion of computer products to development of innovative industrial design in modern electronics, unique hardwares, operation system and application softwares and services. It provides customers with new products and solutions that are easy to use and seamless integration.

The relevant competitive models chosen for this assessment includes the Michael Porte’s five forces such as entry of competition, threats to substitutes, bargaining power, power of suppliers and rivalry, SWOT and Industrial analysis as well as micro analysis in order to assess Apple Inc. strategic capabilities and suggest future directions for the business. Apple assessment also analyses the results of a study presented to examine how it utilises customer satisfaction data obtained from formal feedback mechanism.

Company background

Apple was founded in 1970s by Steven Jobs who then became the company CEO. Apple first started as a computer company in 1976 and was fast recognised for its intuitive adaptation approach of graphical user interface that saw the adoption of the first mouse and first onscreen windows.

Steven Job innovative approach focused more on specialised products and by 2001, its full inventions came into play with the introduction of iPod, a product that ranked top in the market leader in music players. Eventually, iPhone came into play in 2008, followed by iMac, iPad and iTunes which have also been widely successful. This meant that electronic products combined with eminent good customer support throughout its product base were slowly becoming the company’s primary objectives.

Summary of Macro Analysis

Macro analysis also known as PESTLE is an analysis of the external macro environment in which a business operates. PESTEL analysis includes factors such as political, economic, social, technological, legal and environmental issues. For a detailed analysis, the following table illustrates the macro environment of Apple Inc:

Apple Case Analysis

Apple ranged top in customer satisfaction with phone-based technical support, feedback, face-to-face communication, email communication, and information exchange in the American Consumer Satisfaction index (ASCI) in the second quarter of 2009. These companies were credited for offering the best technical customer satisfaction service within the Personal Computers category with a base score of 77 on a 100 point scale and earned 83 points in the second quarter of 2006.

Business analysts have argued that the companies’ ability to focus on product innovation and customer satisfaction has won the company loyal customers compared to other PC vendors. Quality of customer service is always the determining factor for success of any company and not its products, and the three companies for this case have gained tremendously from such strategy.

Van Amburg, the managing director of the American Customer Satisfaction Index (ACSI) argues that customers from other service providers were very frustrated with company’s customer service despite the quality of its PC hence loss of loyal customers and the services continued to deteriorate as years went by (Moore & Knight 2010; Keizer 2009).

In ensuring quality satisfaction in information collection, Apple launched Consumer Privacy Policy that ensured the collection, use and disclosure of personal information regarding customer issues are kept at optimum security. The company pledges to safeguard personal information collected when visiting the company’s website, purchase of products and services and when a customer calls the sales team or support associates.

Personal information collected here is aimed at helping the company deliver higher customer service and provide convenient access to company’s products and services. Information collected from customer’s reviews also helps the company implement and post the latest product announcement on special offers, software and events (Apple 2010; Levitan 2004; Prasaad 2009).

Summary of Industry Analysis

Porter’s analysis focuses on the threat of new entrants, bargaining power of suppliers and buyers, power of substitutes and rivals on profitability in an industry.

The following table presents Porter’s five forces analysis of the micro environment of Apple Inc.

The industry analysis of our company in the market displays strong competition in the computer technologies and electronics. Apple maintained its competitive edge by progressively innovating product designs and operational execution.

Its product lines were also diversified and supplied its products to retail stores and eliminated third-party retailers. The company also opened up to 247 stores including 19 internal locations averaging to $29.9 million in sales revenues. The company has numbers of loyal, & the customer base reports the permanent growth (Keizer 2009).

Suppliers have helped Apple diversify their products. Apple entered into a multi year agreement requiring its major key components that included dynamic random access memory DRAM, LCD displays, NAND flash memory and microprocessors that included partners such as Hynix Semi-conductor, Intel Corporation, Samsung, Micron Technology and Toshiba Corporation. It also partnered with other corporations internationally to ensure final assembly of its products are concentrated on quality issues (Keizer 2009).

On market research aspect, Apple was reported to collect personal information on various occasions for market research purposes. This information is aimed at gaining better understanding of customers needs, improve products and determine how best to provide useful information (Apple 2010; Hewlett-Packard Development Company 2010).

Apple partnered with other service vendors such as MobileMe and iTunes stores to help in collection of information by requiring customers to customer’s to create an “phone company ID” before purchase of products.

The ID is strategy is designed to help customers have easier access to web services and saves them time since they don’t have to give their personal information when requesting for services. The procedure requires creation of personal profiles by adding the name, phone number, email address or credit card number together with a suitable password that will be used to access the profile.

Once the signing up procedure is completed, the customer is allocated personal ID and a password that the system generates automatically. Therefore next time the customer enters the website to re-purchases products is welcomed by personal greetings by mentioning his name and is able to access up to date information regarding the product purchased which can be used wherever the client goes (Apple 2010).

In order to survive in the competitive environment, company’s have to device a number strategies to beat their competitors like changing the price of the product-which is in fact a temporary solution, improving product features- key to success, creatively using channels of distribution and exploiting relationship with suppliers. When we look at these examples, brand recognition seemed to cut down costs of advertisements.

On this perspective, Apple diversified to digital consumer electronics such as iPod, iPhone, iMac among others widened its product markets. Apple dominated computer markets introducing itself a premier provider of technology solutions for educators, web designers and graphic artists, to digital entrainment company. The software iPod was later integrated into windows version of iTunes making it easier for everyone one to purchase and use (Keizer 2009).

Apple introduction of feedback system and outreach programs enabled customers to report on defective machines and the company to attend to problems before they occur. For example, one of the Company’s products “iMac” was widely reported for to be giving clients problems and the company responded by giving 15% refund bonuses to all faulty 27 inch iMac in the UK and was also reported to extend $300 apologies to all its aggrieved customers in the US.

In resolving the issue, the company responded quickly by offering free repairs to all the affected machines and launched a support page where it described how minor problems could be resolved and the resulting warranty extension for each affected machine. The company also reimbursed customers who used their own money to repair the faulty machines and advised them take their drives to official Apple repair channels (Moore & Knight 2010; O’Reilly & Anderson 1980).

On bargaining power of suppliers’ aspect, Apple’s primary segments included America, Europe, Africa, Japan and Middle East and other retail divisions Italy, Canada and the United Kingdom. It offered its customers wide range of products and invested heavily on R&D year after year. Apple’s products were distributed all over US retail stores where customers could easily access and report of defective devices (Mank & Nystrom 2000, p.504).

Summary of Internal Analysis

Internal Analysis also known as SWOT analysis determines company’s competitors and develops sales & marketing strategies for the company that allow it to achieve its marketing & strategic objectives.

The SWOT Analysis of the Apple Inc. position in the market is necessary for the development of the marketing plan.

Resources Analysis

Amidst the financial crisis, Apple continued to introduce strongest products lines, with most talented employees and best customers with sales revenue totalling to $10 billion in quarterly revenue of 2009 and $25 billion in cash safety bank with zero debt. Demographic & socio-economical factors like population distribution changes & increase/decrease in income levels of social group also affected the company to a considerable extent (Apple reports 2008; Hesseldahl 2009).

Dynamic Capability Analysis

Dynamic analysis refers to the innovative strategies a firm employs to gain competitive advantage over its competitors. In other words, what Apple is doing different that sets it apart from other companies. For instance, the company has progressively applied technological advancement and business diversification over the years.

Apple continues to diversify its product line from PCs inventions, to iPods, iPhones, iTunes and other peripherals. Also, the 2007 smart phone technology that saw the integration of wireless phone, music player, video player as well as internet browsing demonstrated how the company continues to diversify in our markets (Apple reports 2008).

Strategic Capability Analysis

Apple’s strategy to integrate Intel-based iMac desktop and the MacBook Pro portable softwares increased its company’s market share. Also, the introduction of feedback system and outreach programs that enabled customers to report on defective machines seemed to have gained the company a competitive edge over its competitors. The company also introduced support centre strategically designed to attend to software problems before they occur (Apple reports 2008).

Apple’s recent merger with software developers and leading voice-entry technology providers demonstrated its strong command and reputation in information technology. However, Apple should take adequate time in testing its products before rushing to introduce them to the markets like case for MacBook Air that left many customers disappointed (Apple reports 2008).

Gap analysis and assessment of current strategy

Gap analysis is a methodology that helps a company identify gaps and decide upon marketing strategies and tactics. The company has moved beyond personal computer industry to music, videos, movies, and television. Diversification is in it itself a good marketing strategy, but the company should concentrate on development of quality products to cut down on increased numbers of defective products and recalls.

Apples hiring John Sculley from PepsiCo spearheaded marketing and operations of the company while Steven Job focused on technology that lead to the introduction of more creative products like Macintosh in 1984. The new CEO enabled breakthrough in electronic products in terms of elegant design and easy use. The company should employ the same strategy in future to in employing competent workforce that will turn boost company sales revenues.

How does strategy match the macro environment?

For Apple, there is a large gap between product strategy and socio-economic and demographic changes. Keeping in pace with technology helped the company gain competitive advantage over its competitors and the uniqueness of goods and services offered facilitated the further strengthening of market position. However, its inability to adjust to socio-economic and demographic changes might undermine its market position in future.

How does strategy match the industry environment?

Apple engaged in a head to head competition with Dell in the computer markets with company CEO Steve Jobs claiming that market shares weren’t everything. This statement is in itself contradictory since company’s engage in business activities for profits. Dell was able to dominate the markets due to its efficient supply chain management although Apple outperformed it in inventions and other metrics. Apple should look into fixing sufficient price flexibility and adjustment to socio-economic changes.

Since compatible software were introduced in the markets, IBM prices dropped and Apples costs for R&D were higher industry costs since the company spend a considerable amount of its sales revenue on R&D. Scully innovative efforts were not enough to sustain the company’s poor performance. Apple could have taken time to study its markets demands before heavily investing in unprofitable deals. Since Michael Spindler came into play in 1993 introducing PowerMac, Apple moved to price-performance edge.

The new CEO’s strategy was to let other companies manufacture Mac clones, a strategy that saw many clones stealing 20% of the Macintosh unit sales. For this case, Apple should be seeking a CEO that upholds their key capabilities and strengths, whilst being able to improve in other areas that are deficient (Mank & Nystrom 2000, p.501).

Apple’s current strategy of launching more new products to expand the markets should be sustained. However, the company should also try to promote its products through media advertising and offering products at discounted price to increase the satisfaction level of the customers. Apple never seemed to experience intense competition since it had strong market power and had the ability to introduce new products.

Its strategies to beat the markets severely stretched its budgets that amounted to further losses. For example, when Macintosh was first introduced in the markets quickly became people’s favourite with large graphics but had slow performance and could not be integrated with many softwares in the markets. NeXT Computer introduced after Macintosh proved costly and did not yield the company any profits. For this case, Apple should incorporate through market analysis to avoid sipping in market shares.

Apple., 2010, ‘ Apple Customer Privacy Policy ’. Web.

Apple reports fourth quarter results, 2008. Quarterly results. Web.

Hesseldahl, A., 2009. Apple’s impressive quarterly numbers . BusinessWeek. Web.

Hewlett-Packard Development Company, 2010. Overcoming the no. 1 challenge in data center transformation . Web.

Keizer, G., 2009. Apple still can strive, sans Job. Computer World, 56 (2), pp.1-4.

Levitan, B., 2004. Improving customer loyalty through proactive communication. Consumer Interaction Solution . Web.

Mank, D. & Nystrom, H., 2000. The relationship between R&D spending and shareholder returns in the computer industry. Management of Society Proceeding , 20, pp.501-504.

Moore, C. & Knight, D., 2010. Apple Retains Lead in Customer Satisfaction, iMac Screen Problem Resolved, 64 GB for Mac Pro and More . Web.

O’Reilly, C. & Anderson, J., 1980. Trust and the Communication of Performance Appraisal Information: The Effect of Feedback on Performance and Satisfaction. Human Communication Research , 6, pp.290-298.

Prasaad, S., 2009. Establishing successful customer relationships through effective communication: An Indian perspective. Marketing and Management Communication , 64, pp.1-71.

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1. IvyPanda . "Apple Case Study." February 7, 2019. https://ivypanda.com/essays/apples-case-study/.

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How Apple Achieved a Legendary $2.98 Trillion Fortune by Outsourcing | Case Study

How Apple Achieved a Legendary $2.98 Trillion Fortune by Outsourcing | Case Study

In the annals of technological innovation, Apple Inc. stands as a testament to what strategic decisions and visionary leadership can achieve. From its humble beginnings in a garage to becoming a three trillion-dollar behemoth, Apple’s success narrative is a tale woven with threads of innovation, design excellence, and a shrewd approach to outsourcing. In this extensive case study, we embark on a journey to dissect the intricate layers of outsourcing strategy to extract valuable lessons for businesses aiming at sustainable growth.

Apple’s evolution is a saga of perpetual reinvention. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ronald Wayne, the company started as a player in the personal computer industry. [ 1 ] Fast forward to the present day, and Apple Inc. has transformed into a global powerhouse, setting industry benchmarks and captivating consumers with its innovative products.

Table of Contents

#1: outsourcing: apple inc.’s manufacturing backbone, a: challenge: scaling up production.

As Apple Inc. ventured into the realm of consumer electronics with products like the iPhone, iPad, and MacBook, the challenge of meeting unprecedented demand emerged. In response, Apple strategically embraced outsourcing, forging key partnerships to tackle this manufacturing conundrum.

Foxconn, also known as Hon Hai Precision Industry Co., Ltd., emerged as Apple’s manufacturing linchpin. With its headquarters in Taiwan, Foxconn became the largest electronics contract manufacturer globally. The statistics tell a compelling story—Foxconn’s revenue in 2021 reached a staggering $214 billion, ranked 20th in the 2023 Fortune Global 500—a significant portion of which was attributed to its collaboration with Apple.

B: Benefit: Cost Savings and Efficiency

The outsourcing strategy wasn’t merely about meeting demand but a calculated move to optimize costs. According to industry reports, the cost of manufacturing an iPhone X was estimated to be around $370, with the device retailing at $999. This exemplifies the cost-effectiveness achieved through outsourcing, particularly with partners like Foxconn, renowned for their efficiency in mass production. In 2023, Apple Inc. launched the titanium-based iPhone 15 Pro Max, manufactured at $558 and currently retailing from $1199 to $1599.

#2: Leveraging Global Talent and Expertise

A: challenge: the pursuit of excellence.

Apple’s commitment to excellence extends beyond its sleek product designs to encompass the entire user experience. To provide this seamless experience, Apple Inc. strategically tapped into a global talent pool, seeking specialized expertise through outsourcing.

Beyond manufacturing, Apple’s collaboration extended to specialized components. For instance, Apple Inc. sourced its A-series chips from Taiwan Semiconductor Manufacturing Company (TSMC), a world leader in semiconductor manufacturing. In 2022, TSMC’s revenue soared to $63 billion, a testament to its pivotal role in Apple’s supply chain.

B: Benefit: Innovation and Quality Assurance

Outsourcing to experts meant that Apple could integrate cutting-edge technology seamlessly. The A-series chips, fabricated by TSMC, consistently pushed the boundaries of performance, ensuring that Apple’s devices were aesthetically pleasing and technological marvels. This collaborative approach contributed to Apple’s reputation for innovation and quality assurance.

#3: The Design Imperative

A: challenge: nurturing creativity.

Apple’s design philosophy is synonymous with elegance and innovation. Outsourcing became a tool to liberate internal resources, allowing Apple’s design team to focus solely on what they do best—creating iconic products.

By outsourcing components and manufacturing, Apple’s in-house design team gained the freedom to innovate without being bogged down by production intricacies. Statistics reveal the impact—Apple’s design-led approach contributed to a brand value of $263.4 billion in 2022, making it the most valuable brand globally.

B: Benefit: Unleashing Creativity

This focus on design resulted in visually stunning products and fostered a culture of innovation within Apple Inc. The iPhone’s iconic design, for instance, not only captured the market but set a new standard for the entire industry. The freedom to innovate became a catalyst for Apple’s success.

#4: Outsourcing in the Digital Age

Outsourcing is Apple Inc.'s secret to $3 Trillion networth

A: Challenge: Navigating the Digital Landscape

As the digital landscape evolved, Apple Inc. faced the challenge of staying at the forefront of software development. The solution lies in strategic outsourcing partnerships that complement Apple’s internal capabilities.

Apple’s collaboration extended to software development, with partnerships and acquisitions reinforcing its commitment to excellence. For instance, the acquisition of Beats Electronics in 2014 for $3 billion not only bolstered Apple’s presence in the audio industry but also brought the expertise of Beats’ software engineers into the Apple ecosystem.

B: Benefit: Software Synergy

Outsourcing software development allowed Apple to harness the collective expertise of a global talent pool. The collaborative synergy translated into user-friendly interfaces, seamless integration across devices, and a robust app ecosystem. The strategic outsourcing of software development became a key ingredient in Apple’s recipe for success in the digital age.

#5: Ethical Considerations and Corporate Responsibility

A: challenge: balancing success and responsibility.

While the outsourcing strategy contributed significantly to Apple’s success, it also brought attention to ethical considerations and corporate responsibility. Reports of challenging working conditions at some manufacturing partners prompted Apple to reevaluate its approach.

Apple’s response to these ethical concerns showcased adaptability and a commitment to responsible business practices. According to Apple’s Supplier Responsibility Progress Report in 2022, the company conducted over 1,100 supplier assessments, addressing issues related to labor practices, environmental impact, and ethical sourcing.

B: Benefit: Ethical Leadership

Addressing ethical concerns associated with outsourcing elevated Apple’s corporate image. The commitment to responsible business practices resonated with consumers and set a precedent for the industry. This ethical leadership became a crucial element in Apple’s success story.

Final Verdict: The Outsourcing Symphony

In the grand symphony of Apple’s success, outsourcing plays a pivotal role as a harmonious melody that elevates the entire composition. The strategic outsourcing of manufacturing, expertise, design, and software development has propelled Apple to unprecedented heights and is currently worth almost $3 trillion. This in-depth exploration attests to the transformative power of strategic outsourcing.

* Lessons Learned: A Call to Action

1. Strategic Partnerships : Identify and cultivate strategic outsourcing partnerships that align with your business goals and values. Partnering with industry giants like Foxconn and TSMC gave a solid foundation.

2. Focus on Core Competencies : Outsourcing allows you to concentrate on your core competencies, whether design, innovation, or marketing. As exemplified above, streamlining the design process can lead to market-leading products.

3. Global Talent Pool : Tap into a global talent pool to access specialized expertise and stay at the forefront of innovation. Partnerships with global leaders, such as TSMC in semiconductor manufacturing, were proven to be instrumental.

4. Ethical Outsourcing : Prioritize ethical considerations and corporate responsibility in your outsourcing practices to build a positive brand image. As demonstrated above, regular assessments and a commitment to transparency can set industry standards.

5. Adaptability : Be adaptable and responsive to challenges, iterating your outsourcing strategy to meet evolving demands. Responsiveness to ethical concerns showcases the importance of adaptability in sustaining success.

In the business landscape, the outsourcing symphony can be the key to sustained success. As businesses consider their growth strategies, the above case study serves as a compelling testament to the transformative power of strategic outsourcing. Embrace the symphony, conduct it with precision, and let the echoes of success reverberate through the corridors of your organization.

Get in touch with us at CodersOnFire and start outsourcing your software development projects to gain monumental success in your business.

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Apple fires back at DOJ antitrust case, calls for immediate dismissal

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Apple's motion to dismiss the Department of Justice's (DOJ) allegations of antitrust behaviour , is required to start with a maximum three-page pre-motion letter outlining the arguments for dismissal. Apple has today filed that letter with US District Judge Julien Neals , claiming that this "case lies well beyond the outer limits of antitrust law."

According to Apple, the DOJ has brought an antitrust case as a Section 2 Sherman Act claim, and that this can only "move past the pleadings" if it is shown that three specific allegations are valid. The DOJ, says Apple, has to show that the company has:

  • Monopoly power in a relevant market
  • Has performed anticompetitive conduct
  • It has had anticompetitive effects

"This complaint fails on all three fronts," continues Apple's letter. "The Supreme Court has repeatedly held that the type of conduct at the core of this case — namely, Apple's decisions about how and whether to grant third parties access to its platform — does not give rise to Section 2 liability as a matter of law."

Apple then says that the DOJ has accused it of restrictions that it has then failed to show have had anticompetitive effects. Apple "faces fierce competition from well-established rivals" and does not have "the market share necessary to establish or infer market power."

Consequently, Apple is asking the court to dismiss the case. But it's also going further in accusing the DOJ of attempting to change antitrust law. "This Court," it says, "should reject the invitation to forge a new theory of antitrust liability that no court has recognized."

Apple's filing of this pre-motion letter starts a process that will next see the DOJ responding by the end of the month. After that, Judge Neals may call for a conference with the two parties.

All subsequent steps depend on Judge Neals but assuming Apple is allowed to then file its full motion to dismiss, that it likely to be no sooner than mid-June. Then once more the DOJ gets to file an opposition brief, and Apple can then issue a reply to that.

If the case gets this far without the judge declining to dismiss, there will probably be a hearing but no date will be set for some time. Given the scope of the case, though, it is likely that the motion to dismiss will be heard in court no sooner than September.

If Apple's motion to dismiss is not upheld, the DOJ's case will continue and proceed to a full hearing. The dates for this are again down to the court.

With appeals expected regardless of outcome from either side, it's unlikely that the case will be resolved for some years.

11 Comments

The case is a ridiculous waste of DOJ’s resources. It’s also an insult to what could be the most ethical and socially responsible major company in history. 

This DOJ is honestly good for nothing.

Can we get a new DOJ that knows the difference between justice and harassment please

jas99 said: The case is a ridiculous waste of DOJ’s resources. It’s also an insult to what could be the most ethical and socially responsible major company in history.  The waste of taxpayer dollars at the DOJ with regard to ANTITRUST is set to increase, thanks to a strong push by the Whitehouse: https://news.bloomberglaw.com/antitrust/biden-requests-63-million-boost-to-justices-antitrust-division

I’m sure every company files for immediate dismissal in cases like this.   100%.    And the dismissal rate is far less than 100%.  

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a case study on apple

New study shines light on a big problem for Apple's iPad business

A ccording to a CIRP report , Apple customers usually wait at least three years to upgrade to a new iPad model. Now, Consumer Intelligence Research Partners discovered that compared to iPhone users, iPad customers just hang on to their old devices, which might be a problem for Apple's iPad business.

That said, while a minority of users are looking for reasons to upgrade to the M4 iPad Pro, some are just hanging on second-hand iPad models.

In the 12 months ending March 2024, 67% of repeat iPad buyers kept an old one, either by giving it to a family member or friend or simply retaining it. For comparison, only 41% of iPhone buyers kept or handed down their old iPhones.

While iPhone users are eager to upgrade their devices more often, it's interesting that they usually opt to trade in for a new model. In contrast, iPad users just keep them (36%), give their tablets to a family member or friend (31%), or buy a new model because they lost, broke, or had the device stolen (23%).

CIRP says the data suggests "old iPads are quite usable and useful, so retiring them, even in favor of a new model with enhanced features, may not feel urgent."

The research notes that the secondary market for refurbished iPads is less robust than for iPhones or that customers find more value in keeping an old iPad than monetizing it.

I would love to say otherwise, but I feel represented by those CIRP reports. It's been a while since I last upgraded to a new iPad. While thinking about getting the M4 iPad Pro , I found myself surrounded by older models I was either offering for family members or ultimately just keeping for no reason. Why is it so hard to let go of old iPads? And why does Apple offer such low trade-ins for them?

The post New study shines light on a big problem for Apple's iPad business appeared first on BGR .

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Some iPhone Customers Could Get Up to $349 in an Apple Settlement

A class-action lawsuit about audio issues in iPhone 7 and 7 Plus phones has led to a $35 million settlement, though the company denies the phones were faulty.

The exterior of an Apple Store in the shape of a transparent cube is seen amid other buildings in Manhattan. It has the apple-shaped logo prominently displayed.

By Johnny Diaz

Some Apple customers who owned an iPhone 7 or 7 Plus and experienced audio issues may be entitled to up to $349 as part of a proposed $35 million settlement on a class-action lawsuit.

The lawsuit, which was filed in 2019 in the U.S. District Court for the Northern District of California, claimed that the iPhone 7 and the iPhone 7 Plus had audio issues related to the “audio IC” chip in those devices, according to a settlement administrator’s website . The settlement received preliminary approval last year.

Apple has denied the allegations of audio problems and has denied any wrongdoing, according to the website. The company did not immediately respond on Thursday to a request for comment about the settlement.

In a joint statement, Andrea Gold and Greg Coleman, lawyers for the six original plaintiffs in the case, said they were “proud of the nationwide class action settlement that is pending final approval before the court.”

Customers included in the settlement may have received an email or postcard notification about the lawsuit.

Who is eligible for a payment?

Customers residing in the United States who owned an iPhone 7 or iPhone 7 Plus between Sept. 16, 2016, and Jan. 3, 2023, and who reported covered audio issues to Apple, or paid Apple for repairs or replacements for covered issues, may be eligible for a portion of the settlement.

The deadline is June 3.

Customers who want to be included in the settlement must submit a form online or have the envelope postmarked by June 3, 2024, according to the administrator. After filing, customers can select how they would like to be paid, whether by electronic check or physical check.

To apply for a claim, people can visit the settlement administrator’s website or download a form, complete and print it out and mail it to the address provided on the form.

The form requires users to submit contact information, such as a home and email address, and to select a payment option.

How much should customers expect?

A $35 million settlement fund will be established. Users who paid Apple out of pocket for repairs or replacements for audio issues for their iPhone 7 or 7 Plus could receive a payment of at least $50 and up to $349. Customers who reported audio issues to the company, but did not pay Apple for out of pocket repairs or replacements, will receive payments of up to $125.

When will users get their money?

A judge will hold a final approval hearing, which is scheduled for July 18, 2024, according to the administrator’s site. People who qualify would receive their payments electronically or by check.

The deadline to submit a claim, object or be excluded from the settlement is June 3, 2024.

Kirsten Noyes contributed research.

Johnny Diaz is a reporter for The Times covering breaking news from Miami. More about Johnny Diaz

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a case study on apple

By Zaheer Kachwala (Reuters) – Nvidia’s shares rallied around 6% to hit a record high on Tuesday, leaving the AI chipmaker’s stock market value about $100 billion away from overtaking Apple in a major reshuffle of Wall street’s biggest players.

Last trading at $1,128, Nvidia’s market capitalization reached $2.8 trillion, compared to a market value of $2.9 trillion for Apple, which is Wall Street’s second-most valuable company after Microsoft.

Its stock surged as much as 8% to $1,149.39 during the session, an intra-day record high. Apple’s stock was down 0.2% in afternoon trading.

Nvidia’s shares have surged nearly 13% since it forecast second-quarter revenue above Wall Street expectations last week and announced a stock split, which excited investors as they continue to bet on the AI poster child.

“The market has been struggling to keep up with the company’s ever improving growth trajectory. At a mid-thirties forward earnings multiple, this still doesn’t feel like bubble territory,” said Derren Nathan, head of equity analysis at Hargreaves Lansdown.

Nvidia recently traded at 36 times its forward profit estimates, compared with 38 for Advanced Micro Devices and 21 for Intel, according to LSEG data.

The company’s shares have more than doubled so far this year after more than tripling last year.

Nvidia, which has been one of the biggest beneficiaries of the AI boom, reported a five-fold jump in revenue at its data center segment last week as customers line up for their high-performance chips.

Alphabet, Microsoft, Amazon.com and other technology companies have been competing for a limited supply of Nvidia’s high-end chips as they race to dominate AI computing.

“Business is doing incredibly well, there are so many opportunities to keep growing, and the AI theme still has legs. When the song is that catchy, investors want to keep humming it all day long, said Dan Coatsworth, investment analyst at AJ Bell when asked about the stock’s rally.

Long considered a must-own stock on Wall Street, Apple has underperformed other Big Tech companies in recent months, falling around 2% this year as it struggles with weak iPhone demand and tough competition in China.

Microsoft overtook Apple as the world’s most valuable company earlier this year as it raced ahead of other tech firms due to gains made by early investments in artificial intelligence across its cloud services.

Microsoft’s shares were down 0.4% on Tuesday, giving it a market value of $3.1 trillion.

Apple has also been slower in rolling out generative AI, which can generate human-like responses to written prompts, than rivals such as Microsoft and Google, which are weaving them into products.

(Reporting by Zaheer Kachwala and Arsheeya Bajwa in Bengaluru; Additional reporting by Noel Randewich in San Francisco; Editing by Arun Koyyur)

Disclaimer: This report is auto generated from the Reuters news service. ThePrint holds no responsibilty for its content.

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'ZDNET Recommends': What exactly does it mean?

ZDNET's recommendations are based on many hours of testing, research, and comparison shopping. We gather data from the best available sources, including vendor and retailer listings as well as other relevant and independent reviews sites. And we pore over customer reviews to find out what matters to real people who already own and use the products and services we’re assessing.

When you click through from our site to a retailer and buy a product or service, we may earn affiliate commissions. This helps support our work, but does not affect what we cover or how, and it does not affect the price you pay. Neither ZDNET nor the author are compensated for these independent reviews. Indeed, we follow strict guidelines that ensure our editorial content is never influenced by advertisers.

ZDNET's editorial team writes on behalf of you, our reader. Our goal is to deliver the most accurate information and the most knowledgeable advice possible in order to help you make smarter buying decisions on tech gear and a wide array of products and services. Our editors thoroughly review and fact-check every article to ensure that our content meets the highest standards. If we have made an error or published misleading information, we will correct or clarify the article. If you see inaccuracies in our content, please report the mistake via this form .

The best kids' tablets, according to parents

allison-murray

Finding age-appropriate summer entertainment for your little ones can be a challenge when you're not outside. That's why tablets have become a viable asset to keep kids entertained (in a safe digital environment) during long car rides, when you need to get some work done, or when you need a break. However, parents are naturally hesitant to spend hundreds of dollars on a device that their kid(s) will surely  put to the test . 

Also: The best kids' phones

What are the best kids' tablets right now? 

The good news is you don't have to spend a fortune to get a decent tablet for kids. You can find a device that offers plenty of educational content, entertainment options, and parental controls like limiting screen time so kids aren't glued to their tech devices. ZDNET's tested pick for the best kids' tablet overall is Apple's iPad  that both parents and parenting experts recommend. 

Also:  The best smartwatches for kids

Best tablets for kids in 2024

Apple ipad (9th generation), best kids' tablet overall.

  • Solid performance
  • Long battery life
  • Ample app support
  • Apple's Family Sharing

Apple's tried-and-true tablet, the base model iPad, is great for kids. You get all of the same features as the more expensive iPad Pro and iPad Air models but in a lightweight form factor with a 10.2-inch display that has True Tone . 

Although there's a newer iPad model, the 9th generation has pretty much all of the same features and costs less than the 2022 model at $330. (I don't recommend spending $449 for the newer model for your child to use and abuse unless you plan to share it with them.)

Review:  Apple iPad (2021) review: If it's not broken, don't fix it

Early education experts agree that the 9th-gen iPad is kid-friendly and the best option for most people. 

Troy Portillo , director of operations of  Studypool , an online learning platform for students, said that if you have younger kids in need of a tablet, you can't go wrong with Apple's iPad: "Your kid doesn't need the more expensive iPad Air or even the iPad Pro."

"You can still get all the great security features that come standard with Apple products and customer support. You can also easily monitor your kid's activity online, limit screen time, and use parental controls for specific apps," he said. 

Parents can control their kids' iPad experience through Apple's Family Sharing feature. This feature lets them limit screen time for specific apps, notifies them if a child is trying to buy an app, and sends reminders for events like family game night, among other things. 

And as a recent Best Buy customer said in their review, "The iPad is so easy to use. The kids love it. There are lots of learning apps and games to play. It's great for in-car entertainment as well." 

Apple iPad (9th generation) t ech specs: Display : 10.2-inch with True Tone |  Processor : A13 Bionic chip |  Storage : 64GB or 256GB |  Biometrics : Touch ID |  Colors : Silver and space grey  |  Cameras : 8MP f/2.4 back, 12MP Ultra Wide f/2.4 front |  Weight : 1.08 pounds |  Dimensions : 9.8 x 6.8 x .29 inches |  Connections : USB-C, Smart Connector |  Battery life:  Up to 10 hours

Amazon Fire HD 10 Kids Pro tablet

Best kids' tablet with a large display.

  • Better and brighter display
  • Great price point
  • Amazon's Appstore is slightly limited

For bigger kids (ages 6-12), there is Amazon's new Fire HD 10 Kids Pro tablet. New to this generation is 25% faster speeds, higher quality 5-megapixel cameras, and 13 hours of battery life instead of 12 hours. 

Thanks to the 10.1-inch display, you'll get a larger screen without adding much to the overall cost. The resolution is better than previous generations, with a 1080p Full HD brighter display. It comes with a protective case, a two-year worry-free guarantee, and a year subscription to Amazon Kids+. 

It comes with a slim, kid-proof case and preset age filters for kids ages 6-12. Even with all these improvements, this model is still $10 less than the previous generation, at $190. 

Review:   This new tablet is redefining what a kids tablet can do

ZDNET writer Maria Diaz went hands-on with the new Amazon Fire HD 10 Kids Pro tablet and was "pleasantly surprised" by its smooth performance. 

"The Fire HD 10 Kids Pro has proven itself decidedly faster than both generations of the Fire HD 8 Kids tablets we have, and since the older ones were passed down to a four-year-old and a two-year-old, that hasn't been a problem. However, the seven-year-old and new owner of the Fire HD 10 Kids Pro definitely notices the difference," she wrote. 

In a Best Buy review, one customer noted, "Once you have learned how to use Amazon Kids to download apps, it works great. My five-year-old loves it. It's pretty durable considering this has a slimmer case than the old version."

Amazon Fire HD 10 Kids Pro tablet t ech specs: Display : 10.1-inch 1080p Full HD display |  Processor : Octa-core 2.0 GHz |  Storage : 32 (expandable by up to 1 TB) |  Memory:  3GB |  Colors:  Happy Day, Mint, and Nebula |  Cameras : 5 MP front and rear-facing cameras with 1080p HD video recording |  Weight : 23.21 oz |  Dimensions : 7.5 x 10.1 x 0.7 inches (with kid-friendly case) |  Connections : 3.5mm headphone jack, USB-C 2.0 |  Battery life:  13 hours

Samsung Galaxy Tab A8

Best samsung kids' tablet.

  • Samsung Kids experience
  • Expandable storage
  • Great tablet for simple entertainment
  • Sluggish performance
  • Battery life isn't as great as other options

If you'd rather your kid have a proper Android tablet with full Google support, look no further than the Galaxy Tab A8. 

"This tablet is packed with features that make it the perfect choice for parents looking to keep their children entertained and informed while they are away from home," parenting expert and creator of  Parental Questions  Mo Mulla told ZDNET. 

Mulla also speaks highly of Samsung Kids, which parents can access from any Samsung tablet, as it lets parents give their kids access to specific contacts and apps, provides learning challenges for kids to avoid mindless scrolling, and even includes interaction with Samsung-specific animated characters. 

"Its kid-friendly content has been explicitly created with kids in mind and includes educational apps and games to help entertain them and keep them active during playtime," he said. 

While the Samsung Galaxy Tab A8 won't blow you away with overall performance, it can run your favorite apps, handle light gaming, and stream movies and shows. In addition, its expandable storage capacity ensures there is never a shortage of space on the device for downloads or extra materials when needed. 

One Best Buy customer noted in their review of the Samsung Galaxy Tab A8 how expensive other tablets can be, especially when considering buying one for kids: "If you don't want to spend $300+ on an iPad for your kiddo, this is definitely the route to go." 

Samsung Galaxy Tab A8 t ech specs: Display : 10.5 inches |  Resolution:  1920 x 1200 |  Processor : Octa Core Unisoc T618 |  Storage : 32GB, 64GB, 128GB, microSD up to 1TB |  Cameras : 8MP rear, 5MP front camera |  Weight : 1.12lbs |  Dimensions : 9.72 x 6.37 x 0.27 inches |  Connections : 3.5mm headphone jack, USB 2.0 |  Battery life:  7,040mAh (About 6 hours)

Amazon Fire HD 8 Kids Tablet

Best kids tablet for littler kids.

  • Kids edition has many perks
  • Easy to use
  • Performance will be an issue
  • Amazon's Appstore is hit or miss

While similar to the Amazon Fire HD 10 Kids Pro tablet, the Amazon Fire HD 8 Kids tablet is made with little kids in mind. It comes with a colorful kid-proof case built to withstand 3- to 7-year-olds since it protects against drops and bumps, and it comes complete with an adjustable stand so your kids can go hands-free. 

It also comes with a free one-year subscription to Amazon Kids+ and an Amazon FreeTime Unlimited subscription, which grants access to thousands of kid-friendly, ad-free books, movies, games, and other kid-friendly and educational content. 

"The Fire HD 8 Kids tablet is a well-built, entry-level tablet that comes with a sturdy kid-proof cover and features useful parental controls," says Diaz, who  bought  the tablet for her kids. 

Review:  I bought this Amazon kids tablet instead of an iPad and wasn't sorry

"Its 13-hour battery life means that you'll need to charge it less often than other competitors, and the combination of a durable case and screen ensures the integrity of the Fire tablet for years to come," she says. However, Amazon offers you a two-year worry-free guarantee in case the tablet does succumb to playtime. 

One Amazon customer said they were impressed with the device's durability: "One of the first things that caught my attention is the impressive build quality of the tablet. Designed with kids in mind, the sturdy construction and reinforced edges provide a sense of durability that assures me the device can withstand the inevitable bumps and drops that come with the territory of young users."

Amazon Fire HD 8 Kids tech specs: Display:  8-inch display |  Processor:  Hexa-core 2.0 Ghz |  Storage:  32GB or 64GB (expandable by up to 1 TB) |  Memory:  2GB |  Colors:  Blue, purple, Disney Mickey Mouse, or Disney princess  | Cameras:  2 MP front and rear-facing cameras with 720p HD video recording |  Weight:  18.3 ounces |  Dimensions:  8.7 x 7.1 x 1.1 inches|  Connections:  3.5mm headphone jack, USB-C port |  Battery life:  13 hours

Lenovo Tab P11 Plus

Best kids' tablet for battery life.

  • Full Android
  • Great display
  • Keyboard not included
  • Performance

Lenovo's Tab P11 Plus is an attractive tablet that's not overly expensive. The 11-inch 2K display looks fantastic, and the battery life will keep your child entertained for hours. The battery life is perhaps the best part of this tablet: Lenovo touts up to 15 hours of video streaming, and ZDNET tests can back that claim up. Plus, it runs Android 11 out of the box. 

An Amazon customer also mentioned in their review that the Lenovo Tablet P11 Plus had surpassed their expectations regarding battery life compared to other tablets. 

One downside to the Tab P11 Plus is that it lacks a headphone jack, so if you want to keep your child's cartoons or games quiet, you'll have to invest in some kid-friendly Bluetooth headphones. 

Review:  Lenovo Tab P11 Plus: A budget Android tablet that's surprisingly good

Moderately priced at $250, the Lenovo Tab P11 Plus is easily recommended and competent. In ZDNET's review, June Wan said, "It's hard to argue against how much value you're getting with this tablet." 

Plus, you'll get kid-friendly features already built into the tablet.

"For parents, the tablet can dial into Android's  Kids Space . When turned on, the Tab P11 Plus switches to a child-friendly interface filled with teacher-approved games, educational videos, and digital content to keep any kid engaged," Wan wrote. "Through the Family Link app, you can monitor, set screen-time limits, and even lock the tablet from your phone."

Lenovo Tab P11 Plus t ech specs: Display : 11-inch display |  Processor : MediaTek Helio G90T |  Storage : 64GB or 128GB |  Memory : 4GB or 6GB |  Colors : Slate grey |  Cameras : 8MP front and 13MP rear |  Weight : 1.1lbs |  Dimensions : 10.2 by 6.4 by 0.3 inches |  Connections : USB-C, microSD |  Battery life:   Up to 15 hours

Amazon Kindle Kids

Best kids' tablet for reading.

  • Parent Dashboard to keep track of reading progress
  • Vocabulary Builder and Word Wise features
  • Strictly for reading--no apps or games
  • Profile switching can be difficult
  • Complaints of Parent Dashboard interface

While tablets are meant to provide entertainment for your kids, it's not necessarily always the best kind of entertainment. A Kindle Kids e-reader is a great way to compromise on a tablet that stimulates your child's brain. The Kindle Kids e-reader is designed for kids ages 3-12 and comes with an Amazon Kids+ subscription for kid-friendly books and audiobooks. 

You can even keep track of their reading progress with Amazon's Parent Dashboard, adjust book age filters, add books to your kid's library, and set a bedtime for each child's profile. Plus, Kindle Kids comes built-in with Vocabulary Builder and Word Wise to help young readers build their reading skills and tackle more challenging books.

And since kids are unpredictable, this reading tablet comes with a two-year worry-free guarantee. If it breaks, Amazon will replace it for free. 

One Amazon customer shared their child's experience using the Amazon Kindle Kids: "I got this for my 11-year-old son for Christmas. He loves reading, and he's read 11 books in one month! I didn't realize this would be smaller than the standard Kindle, but it is a good size for kids. It has a good selection of books for his age as well."

Amazon Kindle Kids tech specs: Display:  300 ppi high-resolution, glare-free display |  Storage : 16GB | Weight: 9.03 ounces |  Dimensions:  6.3 x 4.5 x 0.53 inches |  Connectivity : Wi-Fi and Bluetooth |  Battery life:  Up to 6 weeks

Factors to consider when choosing a kids' tablet

Apple's base iPad is the best kids' tablet that money can buy. It offers the complete package of performance, battery life, app availability, and widespread accessory support. It's a great option for kids who need a reliable device for schoolwork, gaming, or streaming content. However, if you prefer Android OS or a better price point, there are plenty of solid alternatives on the market.

Which is the right tablet for your kid?

Picking the right kids' tablet comes down to a couple of questions you must ask yourself. First and foremost, you need to have a set budget in mind. Once you decide how much you will spend, you can begin narrowing down your options. Then, determine if you want a tablet made by a specific company.

Before you invest in a kids' tablet, you'll want to consider the following: 

  • Durability: Having a tablet that can last is especially important when kids will be using the device. If a tablet isn't durable to bumps and drops (like the iPad), be sure to invest in a kid-proof case.
  • Ease of use: A tablet for kids needs to be simple. Consider factors such as large screens, built-in apps, and operating systems that are easy for kids to learn. 
  • Parental controls: Your kids' safety and privacy are #1 when it comes to tablets. Look at what kind of parental controls each tablet offers, including features like screen-time monitoring and app restrictions. 
  • Cost : Kids tablets run the gamut in price, so decide on your budget, as well as what you need and what features are most important to you in a tablet. 

Tim Dikun, dad and Teaching.com COO and vice president of product, also recommended you "look for granular parental controls, including if specific apps can be blocked and/or unlocked around certain times. For example, Amazon's FreeTime app allows parents total control over how children use the tablet by setting learning goals, limiting time spent on gaming apps, or locking gaming apps until learning goals are met." 

How did we test these kids' tablets?

ZDNET does hands-on testing for variety of tablets, including tablets for kids. We also take into consideration advice from parents and parenting experts, as well as user reviews. In our tablet testing and research, we consider factors like durability, battery life, user interface, and parental control options. We also write reviews of new tablets we test, and update this list periodically with the latest tablets for kids we recommend.

What should parents know about tablets and screen time?

Rebecca Mannis, PhD., learning specialist at Ivy Prep Learning Center , referred to The American Academy of Pediatrics' new guidelines, which recommends no consistent screen exposure before 18 months of age, one hour tops of screen exposure for ages 2 through 5, and limiting screen use to two hours after age 5. 

"In considering preschools and primary schools, it is helpful to know their policies -- both to see how their philosophies match your family values, and so you can reinforce their rules at home," she said. 

Mannis added that while kids often learn to read these days through a tablet, thanks to reading apps, it's essential to switch up how your child reads. 

"Researchers have found that the brain processes content that we read online in a different way - and one that is not as skilled," she said. "So, as great as online reading is, give your kids lots of opportunities to hold books in their hands to maximize their literacy skills growth. Or 'cross train' their reading between devices and traditional print books to see if you as a parent notice a difference."

Can my kids use YouTube on Amazon's Fire tablets?

Not officially. Amazon customizes the base version of Android and turns it into Fire OS, forgoing any Google certification in order to make Google's apps available on the tablets. 

You won't find the official YouTube app available in the Appstore, but you can use Amazon's Silk browser to access the YouTube website to gain access to the video platform. 

How many GB is enough for a kids' tablet?

Depending on the tablet, you want to ensure you have sufficient storage for downloading or pre-installing kid-friendly content for those long road trips. 

Assuming your child will obsess over taking pictures and videos -- which can easily take up 5-6 GB -- we would recommend a tablet with at least 32 GB of storage. 

What brand of tablet is best for kids?

Although there's plenty to choose from our list above, the Amazon Fire HD 10 Kids Pro is the most promising. As the 11th generation of the Amazon Fire 10 Kids tablet, its proven to be one of the best evolving kids tablets out there. 

It is faster, higher quality, and has a long battery life. If you can get past Amazon's slightly limited app store, this tablet is sure to keep your child entertained on an airplane or long car ride. 

Are children's tablets the same as regular tablets?

If you're worried about your child's online safety, nowadays, you can put parental controls on almost any tablet, so there's no free range to downloadable content.

When it comes to everything else, i.e., price, case, warranty, and subscription, it's best to consider a kids' tablet in case something happens. 

Overall, a kids' tablet will provide a safe and engaging environment tailored to your child's needs while a regular tablet will always cater to a wider audience. 

Are there alternative tablets for kids worth considering?

There are plenty of tablets on the market that can be kid-friendly. Be sure to look for features like parental controls, long battery life, and ease of use. Here are a few other options to consider. 

ZDNET Recommends

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