APPLE WHAT NEXT?

One of the most popular and innovative company in todays era, Apple has
achieved remarkable success through its continuous efforts to keep itself ahead of
the times. The survival-reinvention-resurgence-and-ultimate-dominance of Apple
is the greatest American business story of the post industrial age. Apple has proven
its ability to innovate beyond any "reasonable" multiple. As the premium-priced
option in each of its categories, it's by far the most profitable among its
competitors.

But the bigger question that now arises is where does Apple go from here. How
does Tim Cook keep Apple at the peak? What is the next big thing that we see from
Apple?

Before we try to find out what Apples strategy might be, lets have a look at the
Apples current mission and vision statements.

Apples current mission statement is, Apple designs Macs, the best personal
computers in the world, along with OS X, iLife, iWork and professional software.
Apple leads the digital music revolution with its iPods and iTunes online store.
Apple has reinvented the mobile phone with its revolutionary iPhone and App
store, and is defining the future of mobile media and computing devices with iPad.

The mission statement also talks about Macs, OS X, iLife, iWork, and others.
These details are important in recognizing and setting the baseline for future
actions that Apple will implement. The mission statement includes details about
what Apple intends to do in its various businesses. For example, the firm states that
it is defining the future of mobile media and computing devices. This part of the
mission statement shows that Apple plans to continue focusing its research and
development on mobile devices and related media. Such mobile media may
include online media via iTunes, which is accessible through mobile devices like
iPad and iPhone.

Apples current vision statement was introduced by CEO Tim Cook, who stated,
We believe that we are on the face of the earth to make great products and thats
not changing. We are constantly focusing on innovating. We believe in the simple
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not the complex. We believe that we need to own and control the primary
technologies behind the products that we make, and participate only in markets
where we can make a significant contribution. We believe in saying no to
thousands of projects, so that we can really focus on the few that are truly
important and meaningful to us. We believe in deep collaboration and cross-
pollination of our groups, which allow us to innovate in a way that others cannot.
And frankly, we dont settle for anything less than excellence in every group in the
company, and we have the self- honesty to admit when were wrong and the
courage to change.

Apples vision statement is considerably detailed and reflects the companys

comprehensive approach in ensuring continued growth and success. In addition,
the vision statement specifies simplicity, which is also an integral aspect of the
companys approach to product design and development. Apple highlights
employees collaboration and excellence as keys to its business. This detailed
vision statement is quite comprehensive in addressing the different aspects of
Apples business. It effectively shows the holistic approach of the companys
leaders.

Cook faces a mammoth challenge: finding ways to make the worlds most valuable
company even more valuable when its already so big that conventional growth
strategiesextending product lines, moving into new territorieswould barely
move the needle.

The next big thing from Apple should be coming from the areas of Artificial
Intelligence, Augmented Reality, Autonomous Car, Apple TV etc. Apple's next era
of innovation starts with digital lifestyle hub 2.0, which will comprise of peripheral
devices that will enable the user to create content and enhance their experience
around content consumption on their devices.

One bright spot is Apples services business, which is expected to grow steadily. As
it sells more gadgetsover 1 billion devices are in useit can also sell content
and services, and gain revenue from music, its app store and more.

James McQuivey of Forrester, another research firm, says that it will be difficult
for Apple to come up with another single product as central to daily routines as the
iPhone. Collections of devices in connected homes will matter more instead. The
exception may be augmented reality (see article), but Apples rivals already appear
to be ahead.
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Talk about a wireless future had people already looking toward big changes that
could be in store for next year, the 10th anniversary of the iPhone, and beyond. Mr.
Bajarin, for example, expects Apple to introduce wireless charging to the iPhone in
the near future. Should wireless connections become a bigger part of Apples
future, it is not a leap to imagine closer integration between the companys various
devices and its software meant for cars, called CarPlay.

The five foundational services that Apple is creating to make this all possible:
HomeKit, CarPlay, Apple Pay, Siri and HealthKit. Ben Thompson of Stratechery in
a recent post writes, each of these services follows a similar model to the one
Apple uses for the iPhone itself: Apple isnt creating the furniture for HomeKit, the
cars for CarPlay, the banks or retailers for Apple Pay, or information services for
Siri. Instead they are leaving that up to the market in a modular fashion; the only
integration is the actual interaction between the Apple layer and your iPhone.

Apple Inc. uses a range of business strategies such as differentiation,

diversification, broadening consumer base, creating ecosystem products,
innovation and retail. Apple is now the worlds the most valuable technology
company. Apples growth and to keep its lead depend on innovation and its future
business strategy. Apples strategic direction for the future is to focus beyond the
success of the iPhone and iPad, expand into emerging markets and continue
innovation.

By the nature of the industry where technological advancements and product

obsolescence are rapid, Apple should continue to invest in Research &
Development in order to keep its lead in industry with new innovations.

Apples premium pricing strategy can exceed what some consumers cant afford.
Low end of the market is being left unaddressed by Apple. Apple should follow
diversification based on each on product model to address different segments. By
making a low cost entry level phones, Apple should attract people into the Apple
ecosystem. Apple has an ecosystem which enables to position Apple as the center
of its consumers digital lifestyle. This means there is a tight connectivity and
compatibility among various Apple products which is exclusive to Apple. Once a
person buys one of Apples products, he/she will probably buy again, because an
Apple product works best with the other Apple product. Therefore, Apple should
access more customer segments.

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References:

1. http://panmore.com/apple-mission-statement-vision-statement
2. http://fortune.com/2016/01/07/tim-cook-apple-growth-challenge/
3. http://www.wsj.com/articles/SB100014241278873244926045790869828249
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4. https://yourstory.com/2016/09/digital-hub-strategy-apple-innovation/