Case 10 – Teams 1-4-6
Apple, Inc. in 2010
Despite the effects of ongoing poor economic conditions in the United States, Apple Inc.
celebrated record quarterly revenues and unit sales of computers during its third quarter of 2010.
In addition, the company’s newly released iPad tablet computer had sold 3.3 million units
between its April 3, 2010 launch and the June 26, 2010 quarter end. The company also sold 8.4
million iPhones during the quarter. Most of the smartphone units sold during the third quarter of
2010 were iPhone 3GS models since the new iPhone 4 launched only four days prior to the close
of the quarter. Although there had been some criticism of ...view middle of the document...
The iPod had been important in the
company’s resurgence in the past decade, but sustained growth in iPhone sales were critical to
the company’s financial performance since iPhone sales accounted for $5.33 billion of the
company’s third quarter 2010 revenues of $15.7 billion. Research in Motion (RIM) had been
known for innovative smartphones since it introduced the BlackBerry in 1999, but Google’s
development of the Android operating system for smartphones had allowed HTC, LG, Nokia,
and Samsung to introduce smartphones that matched many of the iPhone’s best features. In
addition, Microsoft’s Windows Mobile 7 operating system planned for a late-2010 launch was
expected to surpass some of the capabilities of the iPhone operating system. Google was also
growing threat to Apple since many computer makers were developing new tablet computers
similar to the iPad that would run the Android operating system and the two seemed to be headed
for a future battle in mobile ads.Assignment Questions
1. What are the chief elements of Apple’s overall competitive strategy? How well do the pieces
fit together? Is the strategy evolving?
2. What are the key elements of Apple’s strategy in computers, personal media players, and
smartphones? Have its strategies in its core businesses yielded success? Explain.
3. What does a competitive...