Advanced competitive Positioning Assignment -apple Introduction
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| Diversification Strategy For the past 10 years, the investment story on Apple was fairly straightforward. Investors and analysts only cared about how many iPhones it sold and while that’s still the primary metric for the company’s success, it is no longer the only metric. The Apple is more diversified than the company gets credit. Apple sold 52.5 million iPhones in the first three months of 2018, missing analyst projections of 3 million units sold. That’s a relatively meagre 3 percent growth. Apple spent $23.5 billion on share repurchases. Since 2012, Apple has spent $200 billion on buying back its shares. It has returned an additional $75 billion to shareholders over that period in the form of dividends. But beyond that cash bazooka that is sitting on the desk of Apples CFO, there’s the fact that Apple has real growth in two new categories. Apples “wearables” business was up 50 percent and is now the size of a Fortune 300″ company. That implies its wearables — which include the Apple Watch, AirPods and Beats — is a $9 billion annual business, which is growing at a 50 percent rate. Apple has the wearable market all to itself right now. And, all signs point toward Apple accelerating its development in the category. There are multiple reports that Apple is exploring the creation of a pair of augmented reality glasses. While Google, and others, have failed with glasses, Apple has a proven track record of selling sexy consumer computing products. Because of the failures by Google and others, there’s a strong possibility that in five years, Apple will be owning the consumer’s face with glasses, the consumer’s wrist with the watch and the consumer’s ears with Air Pods. (Refer to the exhibit no 3) Download 352.41 Kb. Share with your friends:
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