The product that has been chosen for analysis in the report is a new product that will be launched by Apple named iPhone 12. Apple has planned to launch its new product iPhone 12 at the end of 2020 or start of 2021. The company has planned to implement different features its new phones that mainly include smaller notch, large screen, squared cameras and reconfigured array of the cameras (Macworld.co.uk. 2020). The A14 processor chip will be used in the phone and this will be able to enhance the speed of its operations. The major features that can be used for the development of the new iPhone include Bezels which 0.9mm thinner in comparison to the iPhone 11 Pro Max, 6.7 inches screen that is bigger than 6.5 inches screen of 11 Pro Max, Thinner chassis of 7.4mm. The price skimming strategy is used by Apple for the purpose of setting the prices in such a manner so that maximum amounts of revenues can be gained. For example, high prices are set by Apple for the premium products like iPhone, Macbook and iPad (Statista.com. 2020). IPhone is a specialty product of Apple. The marketing considerations can depict that IPhone has a huge strong presence and has a loyal consumer base. The premium Apple product is priced high and distribution process is based on the usage of website and the stores that are owned by Apple. The promotional activities of Apple are targeted towards enhancing the loyalty levels of consumers.
Apple Inc. is mainly a international technology based company that has its headquarters in Cupertino, California which aims at designing, developing and selling the computer software and consumer electronics based products that are provided to customers in various parts of the world. The software based products that are manufactured by Apple include iOS, macOS, watchOS, tvOS and iPadOS. The hardware products of the firm include Apple Watch, iPod, Mac personal computer, Apple TV and AirPods (Apple.com. 2020).
Smartphones have become a major part of the lives of individuals in different parts of the world and this is considered to be the fastest growing segment in the industry of telecommunications. The global sales of mobile phones have increased by around 3.6% in the last few years. Apple had entered the industry with the development of the first iPhone in the year 2007 and had increased the levels of competition in a huge manner. Samsung is a major competitor of Apple in the global smartphone industry and this has led to reduction of market share of Samsung. The activities related to innovation that are performed by Apple have however started increasing in order to face the competition in the smartphone industry (Ibisworld.com. 2020).
PESTLE Analysis of Apple
Political factors – Major part of the sales gained by Apple is provided by countries other than the US that amounts to greater than 113.8 Billion Dollars and revenues gained by the firm from home country is around 68.8 Billion Dollars. The political unrest and insurgence can have a negative impact on the revenues and position of Apple in the industry. Political pressure provided by Foxconn can influence the sales and prices of the products of Apple as well (Andersen & Andersson, 2017).
Economic factors – The influence of global recession has also led to reduction of economic growth of different countries. The changes that have taken place in European Economy has a direct impact on the revenue reduction of Apple. Increase in inflation rates in the US also has a major influence of revenues of the firm.
Social factors – The high status based lifestyle of consumers can increase demands of high priced products that are offered by Apple. Apple has also gained major growth opportunities in third world countries due to increase in consumer spending levels (Brannen, Piekkari & Tietze, 2017).
Technological factors – The importance of information technology related aspects have started increasing in the last few years and this has an impact on the revenues that are earned. Apple has implemented technology for the purpose of understanding the minds of consumers. The growth of cyber-crimes has increased vulnerability of Apple (Cantwell, 2017).
Environmental factors – The electronic junk that is discarded by Apple and pollution based concern can have an impact on environmental aspects of China. Apple is attempting to reduce the greenhouse effect and this has a negative impact on the costs.
Legal factors – Apple has faced legal stress in the US and financial services have also been influenced by legal implications (Newburry, Deephouse & Gardberg, 2019).
Suppliers of Apple – Apple has been able to develop a complex chain of the suppliers that are mainly spread on a global basis in different nations that include China, Taiwan, Japan, US, Mexico and Brazil. The highly efficient supply chain of Apple and high control of the organization has been able to reduce their bargaining power and their influence on the prices of raw materials as well (Roberts & Darler, 2017).
Customers of Apple – The individual consumes of Apple have low influence on Apple or its competitors in the industry. However, the consumer groups or the markets can have a major influence on the prices of products and the profitability levels of Apple as well. The investments that are made by Apple in research and development has helped in development of unique products that have enhanced loyalty of consumers (Cantwell, 2017).
Competition – The cost based barriers and requirement of high levels of investments have been able to increase the threats that are faced by the new entrants in the industry. The recognition and brand image of existing players has reduced the chances of entry of the new firms. The competition levels between top organizations in technological industry are considered to be quite high. The major competitors of Apple in smartphone industry include Amazon, Google, Lenovo, Microsoft, Samsung and HP (Silva, Styles & Lages, 2017).
Intermediaries – The distribution network that has been developed by Apple with the help of its extensive supply chain facilities is able to play a key part in proper enhancement of its reach in various parts of the world. The suppliers of Apple are considered to be the most important intermediaries of the organization (Roberts & Darler, 2017).
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Strengths = Apple is the leading innovator in the technology or electronics industry. Apple has been able to depict huge levels of sales growth in the last few years based on high technology based products that are offered to consumers (Zahay, Hajli & Sihi, 2018). The brand recognition levels of Apple are high and the organization has made major investments in research and development. The marketing team that is used by Apple has been quite effective and strong in nature and this has an impact on the awareness related to its new product named “iPhone 12” (Ernst et al., 2017). |
Opportunities = The demands for products of Apple are quite high and this has led to the enhancement of the research and development process of the firm. The growth that is depicted in the market of communication devices and Apple has also aimed at providing only high end based products to consumers (Roberts & Darler, 2017). The increased use of cloud based services has led to implementation of innovation in the iCloud services that will be used in iPhone 12 as well. |
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Weaknesses = The high prices of the products of Apple is considered to be a major weakness of Apple that can affect the sales of iPhone 12. The unsuccessful levels of anticipation related to demands have been able to act as a major weakness that is faced by Apple (Roberts & Darler, 2017). The incompatibility of the products of Apple with different OS has proved a huge weakness of the firm. The declining market shares of Apple in different countries is a major weakness that is faced by the firm. Apple is highly dependent on iPhone and iPad for its sales which has also been able to influence the revenues of the firm (Zahay, Hajli & Sihi, 2018). |
Threats = The structure of the environment of electronic communication based devices has become quite complex due to increase in innovation related activities (Newburry, Deephouse & Gardberg, 2019). The damage that is caused to the reputation of Apple due to tax scandal is a major threat that is faced by the organization. The faults that are a part of the intellectual property based rights of Apple have a major negative influence on the reputation of the brand and the image of “iPhone 12” (Brannen, Piekkari & Tietze, 2017). |
IPhone 12 will be a part of the product line of Apple that is based on the development and production of best quality based smartphones that are provided to consumers in various parts of the world. The product mix that has been formed by Apple is mainly a result of the research and development based activities of the organization. The product development based strategy that is implemented by Apple will be able to support the organization so that it can launch its new product in the smartphone market (Ibisworld.com. 2020). The major attribute of iPhone 12 that will be able to attract the consumers are based on the improvements that are made with respect to the previous model that had been offered by the organization. The major benefits will be related to the enhancement of camera quality and increasing the speed of operations as well (Statista.com. 2020). The key specifications that will be implemented in iPhone 12 include the following,
Front Camera – 12 MP
Battery – 3210 mAh
Processor – Apple A13 Bionic
Display – 5.42 inches
Ram – 6 GB
Rear Camera – 12MP + 12MP + 12 MP
Special features – Other sensors – Light sensors, proximity sensor, accelerometer, barometer, Gyroscope, Compass.
Performance related factors –
Chipset – Apple A13 Bionic
Graphics – Apple GPU (four core graphics)
Processor – Hexa Core (2.65 GHz, Dual core, Lightning + 1.8 GHz, Quad core, Thunder)
Camera Setup – Single
Settings – ISO Control
Camera features – Digital Zoom, Auto Flash, Face detection, Touch to focus.
Image Resolution – 4000 x 3000 Pixels
Optical Image Stabilization – Yes
Flash – Yes Retina Flash.
The attributes and features of Apple iPhone 12 that have been stated above will be able to play a key part in proper enhancement of customer base of the firm. The benefits offered by the product will also be higher in comparison to the previous flagship product of Apple named iPhone 11 Pro. The organization will be able to implement its research and development activities in order to improve the features and benefits that are a part of the new product (Macworld.co.uk. 2020).
References
Andersen, T. J., & Andersson, U. (2017). Multinational corporate strategy-making: Integrating international business and strategic management. The Responsive Global Organization: New Insights from Global Strategy and International Business, 13.
Apple.com. (2020). Apple. Retrieved 9 May 2020, from https://www.apple.com/
Brannen, M. Y., Piekkari, R., & Tietze, S. (2017). The multifaceted role of language in international business: Unpacking the forms, functions and features of a critical challenge to MNC theory and performance. In Language in international business (pp. 139-162). Palgrave Macmillan, Cham.
Cantwell, J. (2017). Innovation and international business. Industry and Innovation, 24(1), 41-60.
Ernst, H., Hoyer, W., Krafft, M., & Soll, J. H. (2017). Virtual Co-Creation with Customers in the Early Stages of New Product Development. Available at SSRN 3053800.
Ibisworld.com. (2020). Retrieved 12 May 2020, from https://www.ibisworld.com/au/industry/mobile-phone-tablet-wholesaling/5470/https://www.ibisworld.com/au/industry/mobile-phone-tablet-wholesaling/5470/
Macworld.co.uk. (2020). iPhone 12 production stymied by delays. Retrieved 9 May 2020, from https://www.macworld.co.uk/news/iphone/iphone-12-release-date-3778073/
Newburry, W., Deephouse, D. L., & Gardberg, N. A. (2019). Global aspects of reputation and strategic management. Global Aspects of Reputation and Strategic Management, 1-20.
Roberts, D. L., & Darler, W. (2017). Consumer co-creation: An opportunity to humanise the new product development process. International Journal of Market Research, 59(1), 13-33.
Rubera, G., Chandrasekaran, D., & Ordanini, A. (2016). Open innovation, product portfolio innovativeness and firm performance: the dual role of new product development capabilities. Journal of the Academy of Marketing Science, 44(2), 166-184.
Silva, G. M., Styles, C., & Lages, L. F. (2017). Breakthrough innovation in international business: The impact of tech-innovation and market-innovation on performance. International Business Review, 26(2), 391-404.
Statista.com. (2020). Topic: Smartphone market in Australia. Retrieved 12 May 2020, from https://www.statista.com/topics/4605/smartphone-market-in-australia/
Zahay, D., Hajli, N., & Sihi, D. (2018). Managerial perspectives on crowdsourcing in the new product development process. Industrial Marketing Management, 71, 41-53.
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