Apple Inc.

is a rank 367(Fortune Global 500 2007) and a high-technological company for innovating in the world which established by Steve Jobs and Steve Wozniac in 1976. (DEVONthink Professional). It was the first company to release a graphical user interface (GUI) for their operating system. Apple has been bringing surprises to people all the time. From the first GUI to the latest Iphone, the symbol of apple has always been a signal of launching a refreshing change to the whole industry.

Uniqueness of business model
1. Reseach and Development

Apple has a very salient feature: every new-launched product is not only a hardware product but also being attached with highly-developed software of a powerful operation platform providing for unique and compatible service. This should be attributed to the capability of Apple’s research and development which provides continuing and timely flow of innovative and competitive products and technologies to the marketplace. This is crucial for Apple’s success for not being confronted with low profit margin competition. As it is the core value of Apple products, it would be highly maintained to draw attractive gross margins. Those unique products are the main sources of revenues which includes a great variety of categories: hardware, music and service, peripherals, software and computer technology wireless connectivity and internet.

This structure at one hand is integrated and at the other hand is responsive to different needs. Europe. Japan and Retail.S. education customers and businesses through its own sales force and retail and online stores. Apple distributes its products through wholesalers. The company also sells many of its products and resells certain third-party products in its most of its major markets directly to consumers. Most of Apple’s products are manufactured in whole or in part by 3rd party manufacturers. education channel. including sales to elementary. Distribution channels and 3rd party logistics. Ten percent of the company’s net sales in 2006 were through its U. so direct and indirect sales are both in play. secondary schools. and reduce direct control cost outside U. However. the business model reflected in its business organizations is in a kind of volatile and robust structure: it is primarily on a geographic basis.2. As it may lower the cost of operations. It is interesting to find that the Retail segment operated world-wide retail stores including Asiapacific area. higher education institutions. and individual customers. national and regional retailers and catalogues. And Europe segment also run business in Middle-east and Africa.S. 3. It outsourced much of its transportation and logistics management to 3 rd parties. Volatile organizational structure Apple’s most renowned reputation is clearly distinguished with updated uniqueness which has drawn sustainable attractiveness to loyal customers. resellers. composing of the Americas. .

Apple’s Business Model: Risks control process 1. It would be much proper to say its entry into a lot of market already full of intense competition. some key components including microprocessors and ASICs. it is under availability . As for multiple sources. Especially in Asia. By offering integrated components into an individual product. those suppliers maintain highly competitive price which contributes a reduction of cost of the company. Instead of taking aggressive move of cutting prices and lowering product margin. it poses less threat as the company’s component suppliers and manufacturing vendors are mostly located outside America. Industry competition: Apple is confronted by aggressive competition in all areas of its business. As for limited source. Apple chose the way of converting its customers’ attention to internet based service features which are unique for Apple’s products. Raw Materials: Apple’s source of materials can be seen as multiple and limited. customers would be willing to pay more for its added-value. as those competitors like a lot TaiWang OEMs eg acer has positioned itself as the 3rd largest pc manufacturer of the world. 2. price competition poses the most impending threat. Apart from rapid technological advances. By keeping a number of suppliers and vendors is good way to keep this advantage.

Trademarks. peripherals. Strategic alliance is essential to play in this sense. 3. It is urgent in this sense to contract with some long-term supplier with highlyattractive incentives of being Apple’s strategic partners. iPods. Apple also . Apple actually keeps to be highly alert to this. One is that there had been some allegation of poor working and living conditions at a manufacturing facility in China where iPods are assembled. Not long before. Internally.” arguing that other companies that use the word as part of their product names risk infringing the trademark of its popular iPod music player. Copyrights and Licenses Apple currently holds rights to patents and copyrights relating to certain aspects of its computer systems. as the change of technology may unkowningly infringe existing patents of others. and renew liceses in future in very necessary for further products and business methods. and services. as some for Apple’s needs are uncommon to the rest of the personal computer especially when new products introduced. the audit group was formed and “Supplier Code of Conduct” has been in force.Legal proceedings There are two areas may give rise to legal proceedings. Apple has claimed to the word “Pod. Those registered trademarks are important intellectual property.constraints and pricing pressure.Patents.[1] 4. software.

which still exist in recent products such as the iPod nano and MacBook. and for not promoting a global end-of-life take back for Apple hardware. regulatory proceedings and government enformcement actions. Another is about Environmental issue. Greenpeace has attacked Apple for not setting a timeline to remove PVC and BFRs. an internationally recognized leader in workplace standards. . The last risk is the financial statements have exposed the company to litigation. And a number of class actions also brings uncertain risks may affects the company’s normal operations. Apple updated their product line and this is environmentally notable.engaged the services of Verite. On 2007. Apple has a Special Committee Review and hired independent registered public accounting firm to ensure the law-abiding procedures. Correspondingly.