Wednesday, April 1, 2015

Captain Cook: New Era for Apple

Captain Cook: New Era for Apple

Beyond products already in development, however, the post-Jobs era at Apple raises bigger questions. The investors and analysts are down on Cook, suspecting the fresh administrative decisions he makes could undermine Apple’s competitiveness and impact in the market.

Jobs did do an unprecedented and unparalleled job, but it is imprudent to stand still and refuse to make any changes in the post-Jobs era. To achieve enduring success, a company should preserve the core while stimulating progress on their business strategies and practices so as to adapt to the changing world. Considering the core purpose of Apple -- “to bring the best personal computing experience to students, educators, creative professionals and consumers around the world through its innovative hardware, software and Internet offerings”,(1) it’s acceptable to break new ground and make some changes. Revolution is inevitable and essential for Apple.

Contrary to Jobs, Cook stresses the significance of consumer demand and the market, which could be seen from the renovation of iPhone and iPad.

Due to the mission of iPhone from Jobs, which is to be portable and convenient for consumers, the screen size of pervious generations iPhone never exceeds 4 inches. However, as bigger phones are pervasive than ever, Cook decided to change the formal philosophy into developing bigger iPhone. And here comes the iPhone 6 with 4.7 inches and 6 plus with 5.5 inches. Given the fierce controversy at the very beginning, iPhone6 and 6 plus win market share from competitors. The sale of iPhone in the first quarter is 74,500,000, gaining 15% of market share, and breaking the sales records of any brands in a single quarter.

Meanwhile, the introduction of Apple Pay indicates Cook’s awareness of each tache of the supply chain. Since it concentrates on (financial) service than end products, it is a breakthrough to the Apple Inc. However, the expansion is not inexpedient. Three months after its launch, Apple Pay has occupied 90% of America's credit card transaction market. According to Denée Carrington, a senior analyst at Forrester Research, Apple Pay will account for $35 billion in American e-commerce turnover by 2019.(2)

From the above, we could see that the dynamic of preserving the core while stimulating progress is the reason that companies became elite. Just like JohnGruber said, “ I do not know whether Apple Watch is the what Apple should do, but I know the least thing for Apple to do is: doing nothing.”

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