Apple 's Innovative Products And Services Essay

Apple 's Innovative Products And Services Essay

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This segment can either put Apple on the edge of advantage or decrease the company’s capabilities. Over the years, Apple has proven to be a giant in this field because of its innovative products and services. Apple always takes the led while its competitors follow suit, although this also poses to be challenge for the company, it took Google less than one year to replicate ApplePay, Google called it AndroidPay it has the same capacity to function just exactly like ApplePay. This shows that Apple’s products and services could be copied thereby reducing the uniqueness of the products. Because the short lifecycle of technology, Apple needs to keep upgrading its products and services to stay on the top of the game. “Because the industries in which the Company competes are characterized by rapid technological advances, the Company’s ability to compete successfully depends heavily upon its ability to ensure a continual and timely flow of competitive products, services and technologies to the marketplace”. (Apple Inc 2015). The company has also shown that investing a lot of money in Research and Development does not equal to innovating products. In the first quarter of 2015 Apple spent $1.9billion on Research and Development compared with its competitors. Google spent $2.1billion in the same year, Microsoft $2.94B, and Samsung spent $13.4B. Despite Apple’s low spending on R&D, it has not diminish its ability to create innovative products, Apple could still record higher revenues than its counterparts who put more then 13% of their revenues in Research and Development. It is difficult to ignore the fact Apple has brought quality and unique product to life in the last years through it ability to exploit the strength of the dynamism in tech...


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... and services may result to potential loss of consumer.
Bargaining Power of Suppliers: This force is not so substantial and would not affect Apple’s productivity. As a matter of fact, Apple on its own is a major customer to most of its suppliers and switching cost from one supplier to the other is not significant as well.Apple has the strength to negotiate prices to its own favor therefore, suppliers power is considerably low.
Threat of Substitute Products and Services: The substitute goods and services are not from Apple’s major direct competitors in the same industry. In the case of Apple, substitute products would be landline telephones in place of iPhones, Mainframe desktop computers in place of MacBooks, CDs players in place of AppleMusic and hardware saving devices in place of iCloud. Therefore, the threat of substitute products and services are really low.

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