The company's revenue grew on account of increased sale of Mac systems and downloads of digital content. The operating profit of the company was $4,409 million during fiscal year 2007, an increase of 79.7% over 2006. The net profit was $3,496 million in fiscal year 2007, an increase of 75.8% over 2006."
1. Brand Value and Recognition - This is the biggest strength of Apple. Right from Apple PCs (MACs) which was their first product introduced to the very recent iPHONE, all their products are positioned as luxury products and are designed with features to delight the customers and give them a "WOW" feeling on using the products. This has created strong brand recognition among the consumers.
2. Product Design - All their products are developed after thorough research and design and invariably are of premium look, feel and quality. The MAC operating system, the iPHONE, the iPOD, etc. are all examples of excellence in product design.
3. Product Functions and Features - The features and functionalities of their products are state of the art and highly innovative. All their products are feature rich and absolute delight to the users.
They were accompanied by innovative accessories such as speakers, podcasts, etc. This innovation in seen continued with launch of iPHONES which have touch screen technology combined with music rich features.
5. Accessories - Accessories to accompany differentiated main Apple product lines have been a significant contribution to Apple revenues. Accessories such as software, speakers, etc. are designed with equal focus as the main products like PCs and iPODs. Hence, this is also one of the key differentiator for Apple.
1. Premium Positioning - Most of the Apple products are positioned at higher end of the market and are offered at a premium cost as compared to other comparative products. This is a lost opportunity for a larger market at a medium price positioning.
2. High Research Costs - In order to come out with innovative products, a high percentage of Apple costs are for research and design. This pushes up the product costs.
3. Incompatibilities with other existing products - Apple PCs are not easily compatible with non-Apple operating systems and software applications. Similarly, Apple operating systems and applications cannot run on other PCs.
4. Low market share for PCs - the Apple PCs have relatively low penetration and market share as compared to its next higher best competitor, Microsoft.
5. Smaller product lifecycles - as the technology progresses, the product lifecycle of Apple products are becoming shorter. Apple products are being replaced by newer Apple products making the earlier ones redundant. It is difficult to justify the huge research expenditure on products if they are going to have very short lifecycles.
1. Product Diversification on Luxury items -