Apple Corporation Essay Example | Topics and Well Written Essays - 1000 words

apple Corporation - Essay ExampleBut there comes a represent of stagnation in every industry electronics industry is not an exception to it, considering how the conduct electronics company, Apple Corp. and its designer CEO Steve Job have been striving hard to maintain the competitive edge through cost-cutting do possible only by launching of better versions of their electronic products. Title Page Former CEO, Jobs, guide Apple on the path of induction. Although still the Company has been working with the same batch of product knowledgeableness people, but things are not happening like when Jobs was at the helm of Apples functions. The botch of Apple Maps is a proof of the fact that after the death of Jobs, the product innovation team at Apple has ca utilize losses than just not succeeding in innovating new products. Cohan has enumerated many reasons for the approaching day of reckoning for Apple, disagreeing with Blodget for presenting Apple as a buy. It is a wrong notion t hat stock of Apple is cheap season traded as a P/E of 9, which is below the market average of 15. Actually, Apple is becoming costlier with its income decrease at the rate of 17% in the first quarter of 2013 it is heading for a reduction of 1% in overall for the whole year of 2013. Product innovation had been boosting and sustaining Apple amid competition but lately, innovation has taken the back seat, as there are no new products in the offing. Samsung has been giving grueling time, inspiring customers to go for new products of Samsung rather than buying latest versions of iPhone 5S and iPad Mini.At the times of Jobs, innovation was used as a strategic tool to develop a better version of the products, helping at the same time in reducing cost. Product speciality was the key during the management of Jobs products were either cheaper than leading competitors or better than what the market offered, such as Apples MP3 players, smart phones, and tablets, resulting in investors and c ustomers cladding up for its products that created Apples appeal for investors and customers soaring (Cohan 7 Reasons Apple is More Doomed Than You judge 1-2). Apple Corp. needs to position itself strategically because of not launching any new product and remain for too long with its super-premium pricing strategy. Apple led the market under the command of Jobs through differentiation in product offering, which is evident from the fact that customers were willing to buy iPhone4 at 44% premium, ensuring a coarse profit of 71% (Cohan 7 Reasons Apple is More Doomed Than You Think 2). In the present scenario, if Apple is to remain and lead in competition, it has to cut down on cost, relatively lower to the competitors product offerings. It is in any case true at the same time that former CEO, Jobs charisma was the leading force behind the glorious performance of Apple Corp. for developing products like iPhone and iPad. Competition is presently causing reduction in gain due to co mpetition, as gross margins have come down in the latest quarter from 47.4% to 37.5% year-on-year on with shrinking net profits for the first time in the past 10 years from $11.6