Executive summary

September 9, Executive Summary: “ Has Apple peaked?” Citation:   Has Apple peaked? The world’s most valuable firm may be past its prime. Published: Jan 26th 2013 | SAN FRANCISCO | From the print edition. http://www. economist. com/news/business/21570751-worlds-most-valuable-firm-may-be-past-its-prime-has-apple-peaked
What’s going on:
The main point being driven from the contents of the article is the alleged peaking of Apple in its business cycle where the organization could have reached its apex in the maturity stage. From the symptoms manifested by Apple’s current performance, as evidenced from the information relayed: demise of Steve Jobs; decline in share prices; and emergence of stiffer competitors offering cheaper products; among others, investors and spectators were gleaming at any possibility that Apple’s future performance could be on the decline.
Interesting:
First, to counter competitors’ move of producing relatively cheaper alternatives to the iPhone, it was revealed that “ Apple could produce an iPhone for less than $150 to broaden its appeal” (Has Apple peaked? par. 7). This is a viable strategy given that competitors have already launched several alternatives to the smartphone at significantly affordable prices; especially in emerging markets, like China.
Secondly, Horace Dediu, a spokesperson from Asymco, a research firm, was cited to disclose that “ it would be a mistake to think Apple is resting on its laurels” (Has Apple peaked? par. 13). His proof was the soaring of capital expenditure of Apple which is an indication that it is producing a new product to be launched in the market.
Third, the legal battle Apple has encountered with Samsung was noted to be indicative of it being on the defensive stance. I am convinced that any organization threatened by competitors in terms of product patent would do the same thing.
As a competitor:
As a competitor, like Samsung, the apparent increase in capital expenditure that indicates that Apple is concocting a new innovative product should spur me to increase my research capabilities and try to find out from all possible avenues what these technological gadgets could be. Likewise, I could set my product engineers to design new, creative, and more innovative gadgets that would potentially be seen as blockbuster products and could be purchased at relatively cheaper amounts than what Apple normally offers.
Internal involvement:
If I am personally involved in Apple as an employee, I would definitely by knowledgeable of any possible new product innovation or future product launches that are being designed. As such, I could validate that Apple could simple be at the steady state in the business cycle, yet waiting for the perfect opportunity to renew areas of growth.
The volatile cycle has evidently been exhibited by Apple even during the on and off business relationship with Steve Jobs. With the innovative culture and drive firmly entrenched within the personnel of Apple, Inc., it is still possible that research and innovation still abounds. Thus, this is the wait and see stage and I am sure, management and employees of Apple would do everything within their resources and strategies to counter threats and capture opportunities in the market they are most familiar with.
Connection:
As noted under module two of Baltzan’s book, specifically in infrastructure, sustainable technologies, there are supporting operations that include backup and recovery plan, disaster recovery plan, and business continuity plan. I am sure Apply has an intricate and sophisticated infrastructure and sustainable technology designed to avert any potential threats in contemporary times.
Question:
Do you really believe Apple has peaked? Please justify your answer.
Works Cited
Baltzan, Paige. M Information Systems 2nd edition. Business and Economics. 2012. Print.
” Has Apple peaked?” 26 January 2013. The Economist. 15 April 2013 .