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APPLE, INC.

Stakeholders Overview

Production Teams Customers Investors

New innovative Big increase in sales
Positive None
device when iPhone X
comes out

Hard to supply two iPhone 8 is too Decrease in stock
Negative expensive for a less
different phones price when iPhone 8
innovative device was released
and they have to
wait for iPhone X
Recommendations

Continue to seek other OLED suppliers similar to what we’ve done
with LG and invest in R&D to start developing our own screens

Decrease price of iPhone 8 and increase price of iPhone X

Continue with current iPhone 8 and X sales plan
Increase the
Screen Supply

We should invest $10.5 billion from our
stockpile of cash creating our own factory that
produces OLED screens.
Current Lack of
Supply

Apple’s sole reliance on Samsung also
means that any slowdown in production
of the displays could affect iPhone
availability.
Staying True to Our Culture

This recommendation will assist in
ensuring that we stay true to our company
culture and provide our teams with the
resources to succeed.
Innovating Technologies

https://www.etradesupply.com/blog/what-is-the-production-cost-of-iphone-x/
Facing a dilemma

“I am not buying this iPhone 8, it has a
hefty price tag with no or less innovation. I
will be waiting for the iPhone X.”
Keep pushing the
price gap

“There hasn’t been any customer
pushback on the iPhone, and until there
is, Apple should keep testing limits of
how much people want to spend.”
Continue on Our
Current Plan

Apple’s ‘short-term pain’ sets stock
up for long-term gain.
Waiting Out
Timeline

Oct. 20, Oct. 27, Nov. 3, Jan. 1, Jan. 31, May. 1,
2017 2017 2017 2018 2018 2018

 Shareholders  iPhone X  iPhone X  Invest  Recap 2017  Increase
hang on the pre-orders available $10.5 iPhone sales price in
stock billion in and forecast iPhone X
OLED R&D for 2018 with and
investors decrease
price in
iPhone 8
Budget
2017

Apple Production Budget for the Year 2017

PERCENTAGE OF INCOME SPENT $12000 $11,256.00

Millions
72% $10000
$8,143.49
$8000
SUMMARY

Total Sales Revenue 11256 M $6000

Total Production Cost 8143 M $4000

$2000
Net Income 3113 M
ROI 38% $0
Income Expenses
Communication
Channels
Recommendation Production Teams Customers Investors

1. Continue to seek other
OLED suppliers similar to
what we’ve done with LG Notify via Notify via
Notify via conference
and invest in R&D to start advertising email
developing our own
screens
2. Decrease price of
iPhone 8 and increase Notify via email Do not notify Do not notify
price of iPhone X
3. Continue with current Notify via
iPhone 8 and X sales Do not notify Do not notify
conference
plan
Samsung Apple
Capacities per month 180,000-270,000 panels 90,000-135,000 panels
Facilities 2 1
Facility Cost $3,500,000,000 $1,750,000,000
OLED Fabrication Equipment $14,000,000,000 $7,000,000,000
Miscellaneous Costs $3,500,000,000 $1,750,000,000

Total Costs $21,000,000,000 $10,500,000,000

Source: http://appleinsider.com/articles/17/06/30/samsung-reportedly-spending-21b-to-expand-oled-capacity-for-iphone-8-future-devices