Apple Inc.

AAPL
Lin Yung Hsien, Sammi
Agenda 01 Products and Services

02 Most Valuable Product

03 Apple’s Strategy for

the Chosen Product
 Products and Services
Apple’s revenues can be categorized into 5 categories which are iPhone, Mac, iPod, Wearables, Home and Accessories,
and Services.

• In 2Q, 2021 Iphone

sales accounts for
53.1% of total
revenue, and its
dominant position has

v
remained quite stable.

• Services and
wearable, home and
accessories has
become more valuable
over times.

References: https://pitchbook.com/profiles/company/41082-40#overview
https://www.stock-analysis-on.net/NASDAQ/Company/Apple-Inc/Financial-Statement/Assets
https://www.slideshare.net/OmarFrias3/apple-pitch-book-194382509
 Products and Services
iPhone Mac iPad Wearable, home Services
and accessories
Contribution to Apple’s 53.51% 10.16% 8.71% 8.75% 18.87%
total revenue in Q2,
2021
Features iPhone is a Mac includes iMac iPad is an It includes Apple Apple Services
smartphone that and Macbook. It invention which Watch, AirPods, includes Apple
combines an provides special can be seen as a HomePod Music, Apple
iPod, a tablet PC, applications such mix of iPhone mini and other TV, Apple
a digital camera as iMovie, which is and Macbook. It accessory podcast, App
and a cellular favorable for is renowned for devices. Store, and
phone. professionals, its effective other online
creators and portably and services.
students. acute
functionality.
One-year revenue -3% 15% 12% 25% 16%
growth rate

References: https://www.bloomberg.com/news/articles/2021-04-28/apple-sales-crush-wall-street-estimates-on-surging-device-demand
https://www.researchgate.net/publication/345985582_Financial_Analysis_of_Apple_inc
https://appleinsider.com/articles/21/04/28/apple-wearables-grew-the-least-year-over-year-in-q2-2021
https://www.businessofapps.com/data/apple-statistics/
 AirPods
The Most Valuable Product in the Category of Wearable, Home and Accessories

Percentage of growth rate in revenue (2019-2020) Estimation on the value of AirPods

AirPods Apple Apple TV

HomePod Past data Estimation for 2021
Watch
90% 40.4% 66.1% 9.3%
• Sales: $114 million • Sales: $208 million
v • Revenue: $12 billion of • Revenue: $15 billion of
revenue per year revenue per year
Yearly Sales of AirPods (million) • Number of AirPods • Number of AirPods
$120.00 sold: 85 million sold:
$114.00 • 105 million
$100.00

$80.00

$60.00 $60.00 Since 2019, Airpods have made up around 60% of the
$40.00
global wireless headphone market.
$35.00 If sales of Airpods keep growing at the same rate in
$20.00 2021, AirPods would become Apple’s third largest
$15.00
$0.00 business, following iPhone and iPad.
2017 2018 2019 2020
References: https://www.businessofapps.com/data/apple-statistics/
https://www.cnbc.com/2019/12/20/airpods-a-6-billion-business-for-apple-will-be-bigger-next-year.html
https://www.statista.com/chart/16836/estimated-worldwide-sales-of-apple-airpods/
 Apple’s Strategies for AirPods
Using 3C framework, Apple applies different strategies in Company, Customer and Competitor
3C Problem Strategy
Pricing Strategy:
• AirPods are priced just in the middle of the wireless earphone industry. Not
Try to raise the sales of AirPods by
the highstest but also not the lowest.
Company either increasing the demand or
Product Strategy:
decreasing the price sold.
• Only provide one headphone jack which is also the charging point.
• Do not sell wired earphones as a bundle with iPhones anymore.

Marketing on the qualities

Try to drive the sales of AirPods by
creating demand of AirPods and
Customer
identifying the biggest concerns of
the customers.
• AirPods can fit every person’s ears. It can be worn while walking, running,
shaking the head vigorously.
• The power-sipping W1 chip enables AirPods to run five-hour after fully
charged. A portable charging case is also provided.
• AirPods were integrated with Siri to provide an above-average sound for in-
ear audio devices.

Keep releasing new products

Seeing the big success of Apple,
• AirPods 3 will be launched in this year. It has a smaller case and a shorter
more and more competitors, such
Competitor stem compared to AirPods Pro, and it will be more affordable.
as Samsung, are designing
• Apple is working on a new version of the AirPods Pro with a more compact
wireless earphones to compete.
design and a new wireless chip.
Resources: https://www.macrumors.com/guide/apple-event/
https://www.theguardian.com/technology/shortcuts/2019/feb/10/how-did-apples-airpods-go-from-mockery-to-millennial-status-symbol
https://brianli.com/apple-airpods-pricing-strategy-2021/
Thank You