Apple Company Weak spot Essay


General Compnay Weak spot: Declining Research and Development (R& M ) Expense Apple Pc's investment in R& M has declined over the past several years. Thoug apple investment in R& Deb rhas increased in total terms coming from $471 , 000, 000 in 2003 to $782 million in 2007, its R& M investment as being a perscentage of total profits has decreased from 7. 6% in 2003 to three. 3% 5 years ago. By contrast, Ms corporation, one of the main competitors with the company in music player and operating system business has invested 16. 1% of their total profits on R& D, in the fiscal season 2007. Hewlett-packard, another competition in the personal computing devices, features invested about 4. 6% of the total revenues in R& D representing $3, 611 , 000, 000. Although, the organization has been releasing successful items in the past, extended deline inside the R& G investments when compared with its competitors could adversely affect the future competitiveness in rapidly growing technology markets. This weakness has afflicted in particulary their fresh innovation the iPhone. Image – The Apple company is not targeted towards business people, which will most smart phones have targeted. Does not have a standing as being compatible with the corporate universe. (corporate business world that is completely outclassed already to smart phones, exclusively the Cell phone phone.

Price – it selling price started for $600 in that case lowered to $350, the iPhone can be sold at a fair price due to its value. That outperforms any other PDA or perhaps smart phone in the marketplace bon the earth of convenience of having multiple features merged into one-device. This features increases its overall value to basic customer, although not business buyers. The forecasted demand for the iPhone was overstated plus the marked-up cost over it is direct compitoter, The Black Burrey. Apple has just did start to offer less costly models to get more cost conscious consumers. one hundred dollar price cut within the Apple 8 GByte iPhone. But this after almost two years on the market...