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If Apple has to retain one, either ipad or iphone which one would you recommendand why?

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If Apple has to retain one, either ipad or iphone which one would yourecommend and why?

As consumers, we buy millions of products every year. And just like us, these products have alife cycle.

Product Life Cycle Stages

arious stages of product life cycle!!

"he product life cycle has # very clearly defined stages!.

Introduction Stage$ "his stage of the cycle could be the most e%pensive for a companylaunching a new product. "he si&e of the market for the product is small, which means sales arelow, although they will be increasing..

Growth Stage$ "he growth stage is characteri&ed by a strong growth in sales and profits, andbecause the company can start to benefit from economies of scale in production, the profitmargins, as well as the overall amount of profit, will increase.

Maturity Stage$ 'uring the maturity stage, the product is established and the aim for themanufacturer is now to maintain the market share they have built up.

Decline Stage$ (ventually, the market for a product will start to shrink. "his shrinkage could bedue to the market becoming saturated or because the consumers are switching to a differenttype of product. )hile this decline may be inevitable, it may still be possible for companies tomake some profit by switching to less!e%pensive production methods and cheaper markets.

Lets see where apple products iphone and ipad stands in their product life cycle.we will dosome data analysis for both the products.

http://productlifecyclestages.com/product-life-cycle-stages/introduction/http://productlifecyclestages.com/product-life-cycle-stages/growth/http://productlifecyclestages.com/product-life-cycle-stages/maturity/http://productlifecyclestages.com/product-life-cycle-stages/decline/http://productlifecyclestages.com/product-life-cycle-stages/growth/http://productlifecyclestages.com/product-life-cycle-stages/maturity/http://productlifecyclestages.com/product-life-cycle-stages/decline/http://productlifecyclestages.com/product-life-cycle-stages/introduction/

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*

+elow chart shows the uarterly iphone unit sale from *-- to *-/0

IPHO!

1"2 34 "I#S *-//1/ *-,005,---*--1/ *-,--- 1* /,-0,---1* /,//6,--- 10 0,-##,---10 *,0/7,--- 1# 07,-##,---1# /,-0,--- *-/*1/ *8,-*5,---*--51/ /,--- 1* *8,6/-,---1* 8,56*,--- 10 #,56,---.--10 # ,080,--- 1# 0,#0-,---1# 0,60,--- *-/01/ 0/,*#/,---*--61/ 7,*-5,--- 1* 00,6,---1* ,#--,--- 10 7/,-*7,---10 5,--,--- 1# #0,/6,---

1# 5,7-,---

*-/-1/ 6,#--,---

1* /#,/-*,---

10 /8,*07,---

1# /5,87-,---

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0

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I PHO! Product Performance

"he following table presents iPhone net sales and unit sales information for *-/0, *-/* and*-// 9net sales inmillions and units in thousands:;

$%&' (hange $%&$ (hange $%&&

*-/0 Change *-/* change *-//

net sales s operating segments,e%cept for the 2est of Asia Pacific segment. ?f we draw a product life cycle curve of iPhone 9nota curve of a particular model of iPhone:, it will look different from the curve above. iPhone>sforecasting behaves in a different manner than most electronic devices. @enerally, people areslow to adopt the new technology or product, which is depicted by the stretched introduction and

growth phase. 4nce technology has been tried and tested, the mass adoption occurs. 4n thecontrary, with iPhone, the initial hype is such that their majority of sales happen during initial /!*years, and then immediately dry up. "his whole distortion can be attributed to the huge fanfollowing of Apple, who are not only loyal, but also want to e%perience the new product beforeothers. Also, Apple constantly innovate the product and launch a totally revised version of theproduct 9iPhone 7 is the last e%ample:, that greatly increase the product life cycle of the AppleiPhone..+y seeing the data of unit sold we can say that apple ? phone has just entered in the maturityphase and it will take few more years to complete the maturity phase and after that it will startdeclining.

Lets have a look on the other smart phone suppliers)competitors

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*

? phone competitors in the above chart,As we discussed they have formed two categories

hori&ontal and vertical .anufacturers like samsung,htc,motorolla and lg electronics they fiollow

vertical approach where they license their own 4S and built their hardware which will give them

the freedom of cost effectiveness and lesser lead time.?3 *-/* ? Phone greatest threat camefrom A3'24?' an open and free platform developed by @oogle.Samsung 4wns 3early "he

(ntire Smartphone bill of materials on the other hand, Apple relies on third parties.

+orldwide Smartphone Aerage Selling Price -ASP. /y 0egion and 123ear (AG0 -figures

in 4"SD.

0egion$%&'

SmartphoneASP5

$%&6Smartphone

ASP51 3ear (AG0

AsiaBPacific

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Latin America

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8

"hough its hardly a surprise that the average selling price of Apples iPhones is higher than that

of Android smart phones. As what is surprising though, is the fact that the price gap between

i4S and Android devices is actually widening. ?n *-/0 the price gap was s i4S as Apple pays more tothe developers , hence the price point charged to consumers is high

#H! HA0D+A0! SID!; )hile the cost of manufacturing for both the euipment should not

be much of a difference given the volumes both Apple and @oogle enjoy. Eowever the

difference comes down to the +rand Perception and the Coolness Factor which Apple enjoy.

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Apple have positioned themselves more on the consumer side 9 crowd.. led by loyal and core

actinosh users who were early adopters and had history on its side to boast of

Android however has no Eistory to boast off,ncluding Samsung, (ricsson, Golo, icroma%, L@ ,

Lenevo and otorola :. "hats why, despite and in spite of declining in market shareApple still

takes the lions share of profits in the smartphone industry.

Let us compare the manufacturing cost and the profit margin.if the materials cost roughly c.customer loyality.

d.brand reputation and retail stores.

+ea=ness

a. Eigh price

b. incompatibility with different os

c. decreasing market share

d. patent infringements

e. long term gross margin decline

opportunity

a.scope of new customers in india,china,bra&il and other countries

b.digital marketing viasmartphone

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c.increasing demand for cloud based services.

d.creating patent through acuisitions.

#hreat

a.rapid technological changes

b.*-/0 ta% increase

c.raising paylevel for fo%conn workers

d.breached ?P rights

e.price pressure from other smart phones specially Samsung

f.android os growth and strong dollar.

>

IPAD

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#0:0OM$%&% "I#S

9(HAG!

& 0,*-,---

$ #,/55,--- *5

' ,00/,--- 7

* #,86#,--- !08

1 6,*#8,--- 67 //,/*0,--- *-

6 /7,#0#,--- 06

> //,65,--- !*#

@ /,-#*,--- ##

&% /#,-08,--- !/5

&& **,58-,--- 80

&$ /6,#,--- !/7

&' /#,8/,--- !*7

&* /#,-6,--- !#

&1 *8,-07,--- 57

&7 /8,07-,--- !0

?Pad and iPad miniI are the Company>s line of multi!purpose tablets based on Apple>s i4Sulti!"ouch 6operating system. iPad has an integrated photo and video camera and photo library app.

P0OD"(# P!0:O0MA(!2

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*-/0 change *-/* change *-//

net sales

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A wea=ening ta/let mar=et

one trend affecting both Apple and its Android!powered competitors is a tablet market that,overall, is showing signs of weakness. ?f thats the case, it will a sharp drop from last year, when

the tablet market grew by more than 7-=."he growing popularity of smartphones with larger screens may be having some effect on tabletdemand, particularly in emerging markets. Last year, ?'C reported that phablets outsold bothtablets and PCs in most Asian markets during the second uarter. "hese phones boast screen

si&es between five and seven inches.#he iPad company

'uring its first two years on the market, the iPad e%perienced rapid growth, selling faster thanany of the products that had preceded it. Some projected that, one day, Apple would becomethe KiPad companyK !! its tablet business looked on track to eventually overtake the iPhone.

At this point, that notion looks to be thoroughly shattered. +arring drastic changes to its tablet

strategy, Apples tablet business should continue to disappoint.

IPAD selling price and profit margin!ipad net sales per unit is

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endor

$&' "nit

Shipments

$&' Mar=et

Share

$&$ "nit

Shipments

$&$ Mar=et

Share

3ear2oer2

3ear Growth

/. Apple /#.8 0*.#= /.- 8-.0= !/#./=

*. Samsung 5./ /5.-= *./ .8= *.-=

0. ASJS *.- #.7= -.6 0.0= /*-.0=

#. Lenovo /.7 0.0= -.# /.0= 0/0.6=

7. Acer /.# 0./= -.# /.#= *#.6=

4thers /.7 05.5= .# *8.*= /08.8=

#otal *18& &%%8%9 $>8' &%%8%9 1@879

&$

+orldwide #a/let Mar=et Share /y Screen SiBe Cand, $%&& 2 $%&6Apple I phone and ipad sales)reenue comparison

Screen SiBe $%&& $%&' $%&6

>E *= 77= 7=

>E F &&E 0= #0= 0=

&&E -= *= 8=

#otal /--= /--= /--=

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conclusion

)ith the above data we can say there is growth in the overall tablet market by *-/8 the market

will grow by /-*= and demand in the apple tablet will increase by-= but at the same time we

have to see the other tablets price in the market which will be lesser than apple and to meet the

customer reuirement apple has to reduce the price further. ?n *-/0 we can see that ? phone ty

is *.0 times more than the ipad with higher profit margin. ?n *-/8 the ? phone sale is still /.5

times higher than ipad with /7= more profit margin.we can say that ? phone is more revenue

generator with higher profir margin.

+y seeing the product life cycle of both the product we can say that iphone is in just start of the

maturity phase and ipad is at the end maturity phase.?t is advisable to continue with iphone and

we can slowly stop the ipad as it is giving lesser profit margin.

)e can coclude that from the revenue generation and profit point of view apple>s ?phone is a

better product than ?pad and we can pahase out ipad production in ne%t coming years9* to 0

years:

no of words2$16'

&'

$%&' in million in million 4 million appro

worlwide sold

units apple ty9 of totalty

current unitprice4

totalsales 4

salesratio grossmargin

? phone 6/5 /8- / 87/ /-#-/5 *.0 ##=

? pad /67 / 08 8*5 ##806 *7=

$%&7 in million in million 4 millionworlwide units

to sell apple ty9 of totalty unit price4

totalsales 4

salesratio

grossmargin

? phone /7/8 *56.778 /6./ 770.07 /8-**8 /.5 0-=

? pad 086.*75 /86.87* #7.6 700.5 6-78- /7=

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If Apple has to retain one, either ipad or iphone which one would you recommendand why?

Method of analysis2

&8 product life cycle

$8 i phone sales analysis

'8 i phone performance

*8 i phone mar=et share and price

18 swot analysis

78 i pad unit sales analysis

68 i pad product performance

>8 ipad technology and competitors

@8 ipad swot analysis

&%8 worlwide mar=et share

&&8 sales reenue comparison for iphone and ipad

&$8 (onclusion

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&