PROBLEM ANALYSES AND RECOMMENDATIONS
3.1 Problem Analyses
The loss of Steve Jobs s CEO and the sluggish economic conditions in the Unites States did not stop Apple Inc. to grow its profit and revenues in 2012. This growth came primarily from the sales increase of iPhone and iPads, while Mac computers contributed 7% increase of sales from the same period. The only decline was in iPod sales, decreasing 15% from the second quarter of 2011.
Figure 3.1 Apple’s Net Sales by Operating Segment, Net Sales by Product, Unit Sales by Product,
2009-2011 (in millions)
Source: Apply Inc. (2011)
Not only the decline in iPod sales, the company also faced a serious competitive threat from the competitors, especially in the smartphone market. It is the growth in iPhone sales that sustain the company’s financial performance, by contributing $47.2 billion of total $108.1 billion revenue in 2011. The second largest contributor was iPad with sales more than $20.4 billion. Knowing the importance of smartphone market, Apple was forced to compete with its great competitors such as Samsung and Google. Samsung managed to leapfrog over Apple to become the largest seller of smartphones in 2011 and early 2012 by introducing Galaxy and other models that utilized Google’s Android operating system to beat Apple’s OS and other iPhone’s key features. Therefore, Android became the most widely used operating system platform for smartphones in Unites States with 50.9% share of market. Google also introduced its first hardware, Nexus 7 tablet computer in June 2012, followed by Dell, HP and other computer manufacturers to compete against iPad.
Table 3.1 The Top Five Worldwide Smartphone Vendors, Their Shipment Volumes, and Market
Shares, 2010 to First Quarter 2012
|Q2 2011 |Vendor |Q1 2012 |2011 |2010 |
|Rank | | |...