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Apple Company is involved in designing and manufacturing mobile communication devices, personal computers, portable music players, as well as related software. The Company also delivers digital content. The management of the Company is on the geographical basis based on the nature and the location of the customers. It operates under the leadership of Tim Cook. The paper reflects the lessons that can be learned from the Apple Company and identifies the areas for further development.
Lessons learned and Areas of Further Development
Apple saw the last three months of 2014 as impressive in terms of the profit it made reporting a record revenue of $7.6 billion and a net profit of 18 billion which was the largest quarter profit ever experienced by any Company(Apple Inc. 45). The chief executive of the company talked about the schedule for the development of the Apple watch that was first unveiled in September 2014 and was expected to be available in the market in the early 2015. The financial statements of the Company reveal to us that the Macs growth is not hidden in the iPads issue. Apple sold a lot of Mac computers in2014 at the time that iPad was not fairing with a record decline in the sales. It seems like Smart phones are like computers, but the financial statements of the Apple Company find the people wondering whether replacing the computers with the tablets work perfectly in favor of the Company.
We also know from the financial statements of the company that Apple pay is doing well after the launch as it made $2 out of $3 of every purchase made using the contactless payment across United States card networks(Apple Inc. 44). The market share was impressive after the launch. The success of the Apple pay was evident as one looks at the statistics and the performance of other modes such as the unpopular contactless payments to understand the success of the Apple pay.
We also learn from the financial reports that Apple is bigger in China contrary to most people’s opinion. The revenues in China grew by more than 70% in one year indicating a major success of the products (Apple Inc. 46). Although most of the Apple products made record sales in US, the sales in China doubled over the years. According to the executive officer of the Company, the revenues in China for the year ended in 2014 were more than the sum of previous sales for the last five years (Apple Inc. 44).
Apple Company looked doomed for the last decade, but the current financial reports indicate a financial comeback because of the profits made in the recent years and growth of sales in most parts of the world such as China. The Company helps us understand that it is important to take into consideration the ideas and opinion of customers in designing user-centric innovation. We also learn that the computer and smart phone companies must sometimes ignore the ideas of the critics to survive in the market. The launch of the iPod and the Apple pay were received by critics as ridicule, but the Company ignored their comments and is now succeeding in the market. We also learn about failing wisely as new products and innovations were results of previous failures. For instance, the Macintosh was an innovation because of the failure of Lisa and iPhone a result of failure from the original music phone.
There are several areas of further development that the Company should look. One of them is the development of the iCloud. After its launch, most customers feel that the Company does not have enough talent to develop the service and would have resulted in major revenues for the Company. It also needs to develop the internet services despite several failures such as the Apple maps and mobile Me. Besides, Apple can expand its revenues by acquiring deals outside its companies.
Apple Inc. Apple Inc. 2014 Form 10-K. Washington D.C: United States Securities and Exchanges Commission, 2014. Print.