Apple Inc. Competition
Now Viewing Apple Inc.'s competition in: Computer Manufacture (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
Does the company sell mainly to other manufacturers, or to retailers and end-users? - Most manufacturers make components for other manufacturers.
How much revenue is due to the largest customer? - Small manufacturers may depend highly on a major customer.
What competitive advantages does the company have? - Unique technology or low prices are commonly cited.
What types of marketing does the company use? - Print advertising is widely used in the industry, especially by peripheral and storage device companies; trade shows are often used to introduce new products or technologies.
Does the company plan to cut prices during the next year? - US computer prices have dropped by 50 percent over the last decade.
Competitive Landscape
Demand is tied to consumer and business income. The profitability of individual computer companies depends on purchasing and production efficiencies, and on technological expertise. Large companies have economies of scale in purchasing and production. Small companies can compete successfully by specializing in certain products or by developing superior technology. The industry is capital-intensive: annual revenue per employee is about $400,000.
Business Challenges
CRITICAL ISSUES
Computer Upgrades Easy to Postpone - Sales of computer equipment depend on rising consumer income and corporate profits. Although consumers and businesses typically replace computers every few years, they can easily delay doing so if finances are weak. While sales of computers tend to rise during times of sustained economic growth, during recessionary periods sales can decline precipitously.
Customers Expect Lower Prices - Demand for computers and peripheral equipment is related to steadily lower prices. Without continuing price declines, the market would probably shrink. In the last decade, manufacturer prices have dropped 50 percent overall.
Industries Where Apple Inc. Competes
- Computer Hardware
- Personal Computers(primary)
- Computer Software
- Consumer Products Manufacturers
- Media
- Retail
