Apple Inc. 's Current Standard Of Interchangeable And Adaptive Technology

1128 WordsAug 20, 20155 Pages
Apple Inc. is a technology giant which has a diverse market related to personal computing experience, cellular phone technology, software, media, and most recently wearable technology. Famous products in the technology world include iPhone, iPad, MacBook, iPod, AppleTV, and iWatch. As a result of innovation and diversification, Apple Inc. has become the first company to have a market value above $700 billion. It has also been noted that Apple Inc. is the fifth most profitable Fortune 500 company on the website. The newest product recommendation is that of Apple Vision or iGlasses. This device would expound upon the current wearable technology product line by implementing a new device that would follow Apple Inc.’s current…show more content…
Industry Analysis Porter’s 5-Forces Analysis Porter’s 5 Forces Analysis demonstrates that Apple, as a company, has few forces against it. The few risks to the company are essentially negligible, and only offer medium risk. There is no real competitive rivalry to speak of as Apple is exclusive in it’s products, and cannot be re-created at this time. There are substitute goods available, but they do not match all of the specifications of a singular Apple product. Apple has also avoided price-based competition by staying out of low end markets where price is the main differentiator. Additionally, Apple products never go on sale. This is due to Apple generating a superior product to Android, rival tablets and eReaders. This has allowed Apple to compete primarily on quality, service, and maintain a unique ecosystem. As bargaining power is determined by the uniqueness of supplier’s products, supplier for Apple have little competitive advantage nor bargaining power. In fact, the majority of suppliers compete for contracts with Apple, and seek out maintaining those contracts by providing products at cheaper than competitor rates. Apple has also reduced the power of suppliers through the designing of its own computer chips and processors. Additionally, Apple reduced the power of manufacturers, like Qualcomm, by buying manufacturing equipment and only allowing this equipment to be
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