TENT-Final Project
Submitted to: Mam Ammara Farooq
Group Members:
Name
Roll No
Shaheer Ahmed
(L1S21ASCS0028)
Anoosha Sajjad
(L1S21ASCS0015)
Husnain Sarfraz
(L1S21ASCS0017)
Hasnain Mustafa
(L1S21ASCS0038)
M. Taha Khan
(L1S21ASCS0006)
Company: APPLE.Inc
Part 1:

Mission & Vision:
Apple's mission is "to bring the best user experience to its customers through its
innovative hardware, software, and services." And in a manifesto dated 2019 Tim Cook
set the vision specified as "We believe that we are on the face of the earth to make
great products and that's not changing."

What is an iPhone?
The iPhone is a smartphone made by Apple that combines a computer, iPod, digital
camera, and cellular phone into one device with a touchscreen interface. The iPhone runs
the iOS operating system, and in 2021 when the iPhone 13 was introduced, it offered up
to 1 TB of storage and a 12-megapixel camera.
The original iPhone was announced on Jan. 9, 2007, at the Macworld convention by Apple
co-founder Steve Jobs. While it was not considered the first smartphone, the iPhone has
helped drive the global shift to mobile computing among both consumers and businesses.
Its primary rival has been Google Android-based devices from companies such as
Samsung, also introduced in 2007.
The first-generation iPhone came preloaded with a suite of Apple software, including
iTunes, the Safari web browser, and iPhoto. Internet Message Access Protocol and Post
Office Protocol 3 email services were integrated with the device.
Apple released the iPhone under an exclusive two-year partnership with AT&T Wireless,
but it took less than three months for hackers to unlock the device for use on any Global
System for Mobile communication network.

Which industry your product belongs to?
Company Name: Apple inc.
Industry: Consumer electronics Software Online services

Competitive Advantage:
Apple Corp. manufactures and markets a variety of computers and consumer electronics
products, including smartphones, tablets, and music players. The investment analyst firm
Market Realist identified brand strength, innovation, supply chain management, and
premium pricing strategy as key factors in the company’s competitive advantage.
Brand Strength
Apple was the world’s leading brand in 2017, ahead of Google, Coca-Cola, and IBM,
according to annual rankings published by brand consultancy firm Interbrand. Brand
strength gives companies like Apple great visibility in the marketplace and helps build
consumer loyalty. The company’s strong branding, and the interrelationships between its
products, encourage customers who buy one Apple product to try another. Products such
as the iPhone, iPad, and Mac share the same software and applications, and operate in a
similar way, making Apple a natural choice when customers are considering another
device.
Innovative Products
Apple has a long-established reputation for innovation and a commitment to developing
new products. The company developed the graphical user interface, first used in its own
computers, and, more recently, pioneered the iPod music player and introduced new
levels of performance for smartphones. A key competitive advantage for the company is
its ability to develop innovative products that share the same operating system, software,
and applications. This minimizes the risk, timescale, and costs of product development,
enabling the company to introduce a stream of new products and stay ahead of
competitors. Apple’s innovative strategy of developing products that complement each
other strengthens customer loyalty and helps build a barrier to competition, according to
the website Innovation Excellence.
Strong Integrated Supply Chain
An ecosystem of suppliers, developers, and business partners provides Apple with a
strong competitive advantage. The company owns chip manufacturers, controls
manufacturing, follows extremely strict software standards, and operates its own stores.
Deals with leading music and entertainment companies provide a vast source of media for
all the company’s products. It also has a community of more than 6 million independent
software developers creating applications for Apple products. This gives Apple control
over the entire process of product development, manufacturing, and marketing – an
advantage that competitors find difficult to match.
Premium Pricing Strategy
Apple sets premium prices for its products and minimizes discounts to wholesalers to
keep prices consistent across the market. The company aims to offer customers a highquality product with unique features and uses high prices to reinforce the perception of
added value and maintain profitability. The high-pricing strategy also sets a benchmark for
competitors, which must offer equivalent features to match Apple’s perceived value
without losing money.

To whom will you market your products?
Apple targets four main B2B customers-education, government, SME, and enterprise. For
the diverse SME and enterprise segments, the company organizes its sales teams based
on the industry served, not products sold.

What is the customer profile and why do customers need your product or service?
Apple is a premium brand that is associated with a premium income level. It's a brand that
everyone may want, but not everyone can afford. For this reason, the best customers for
Apple tend to be younger and wealthier, so Millennials tend to be the next preferred
targeted demographic after teenagers.
iPhones are made of high-quality materials, which goes a long way in helping them
maintain their resale value. Apple phones also remain flagship models and up-to-date
longer, as there is only one manufacturer and new and better phones aren't launched as
often as Android phones.
Part 2
Apple Business Model
Samsung Business Model
Comparison between iPhone & Samsung
iPhone is better than Samsung because of many reasons, as you can see that iPhones use their
own software IOS. Apple also owns its own hardware, operating system, applications, and
services, all tied together rather neatly with its new Cloud architecture. There are no silos inside
Apple and all decisions are made by this single executive committee. That is why everything
Apple does works together so seamlessly. Since Apple has a large market share and is known
for its versatile and fast operating system, developers prefer to launch their apps and high-end
games first on iOS and then on Android. Further, iOS runs on consistent hardware, while
Android comes in different iterations and versions depending on the phone. Another major
advantage that iPhones have over Samsung phones is the longevity of the devices. Although
Samsung now offers four years of major Android updates for its flagships and mid-range
phones, iPhones can easily last for five to six years. However, there's one important caveat to
this. Some points are as follows :
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iPhones are User Friendly
Apple gets new applications first
iOS devices are in sync with each other
Built-in features like iMessage and FaceTime
iOS and Android Updates
Apple’s Trade-in policy
Apple has strict privacy and security policies in place
iOS doesn’t come with extra baggage
iOS has its own unique interface
iPhones are in a class of their own
Part 3
What’s the total size of your market?
Apple iPhone smartphone market share worldwide 2007-2022
Apple claimed a 14.1 percent share of the market in the second quarter of 2021, a drop
from the previous quarter.
Current demand in the market?
iPhone Demand Remains High Despite Technology Market Slowdown, Say Analysts.
iPhone demand this quarter has thus far remained "surprisingly resilient" despite the
widespread supply chain issues and other factors affecting the tech industry, according
to Wed bush analysts Daniel Ives and John Katsingris. 240 million units. That is how
many iPhones were sold in 2021. Apple Inc. saw another record-breaking year after
releasing its iPhone 13 series which includes the basic model, the iPhone 13 Mini,
iPhone 13 Pro, and iPhone 13 Pro Max in 2021.
Trends in the target market
Smartphone Market Size to Grow by 464.20 million units| Growing Adoption of AI in
Smartphones to Boost Market Growth | 17,000+ Technavio Research Reports.
Smartphones keep evolving. The trends that were common in 2021 are likely to transfer
into New Year 2022 with tweaks. Smartphones have seen technologies such as folding
display and 144Hz refresh rate introduced among the premium flagship smartphones.
Other innovations like 120Hz and 90Hz refresh rate display made it to mid-segment
devices. The triple camera remained a common trend in 2021 and is likely to move into
2022. Assisting technologies like 5G will make noise in New Year 2022 as well even
though its actual arrival isn’t sure to anyone.
What barriers to entry do you face?
Apple has also faced some barriers to Innovation when it has Outsourced some parts to
other companies and they have come up short, or some suppliers did not provide in
time. Apple relies on logic a lot but innovation is not derived from logic and some
assumptions are also made which may be incorrect. App Store action is required. If App
Store developer relations is a two-way street, one side of it seems to be covered in
potholes. Here are a few of the biggest issues facing Apple in the coming year.
Navigating Trade Uncertainty.
Battles with Qualcomm.
Meeting iPhone Unit Sales Predictions.
Selling Investors on the Services Story.
Planning for the Arrival of 5G.
The Decline of the Smartphone.
1. Navigating Trade Uncertainty
Tariffs are a potential thorn in Apple's (AAPL) - Get Apple Inc. Report side, and that
might continue into the new year. Uncertainty around U.S.-China trade policy -- and
Trump's comments that he could impose tariffs on iPhones -- haven't been kind to
Apple's stock. In a recent note, Wed bush’s Dan Ives suggested that the best possible
scenario would be for the trade conflict to wind down in early 2019, with no disruption
to Apple's flagship Foxconn factory. But Apple is already making plans to shift some of
its production out of China, according to a recent report. And heading into 2019, DA
Davidson's Tom Forte believes that Apple is in a strong position to mitigate tariff risks:
"Part of this belief was based on the company's size and ability to both negotiate pricing
and terms with its manufacturers and move its manufacturing out of China,"
2. Battles with Qualcomm
Apple's been locked in a lengthy, and nasty, legal spat with Qualcomm (QCOM) - Get
QUALCOMM Incorporated Report that originated over licensing rates and patent fees,
with Apple suing Qualcomm in three countries, including a $1 billion lawsuit in the U.S.,
and Qualcomm filing countersuits of its own claiming Apple stole trade secrets to give to
Intel (INTC) - Get Intel Corporation report. Given the prospect of a damaging fight or
adverse judgments, investors are taking notice -- and keeping their fingers crossed for a
swift resolution.
3. Meeting iPhone Unit Sales Predictions
Ives suggested that unit sales of 200 million for full-year 2019 represent a "line in the
sand for the bulls/bears." Apple is shifting away from a focus on iPhone unit sales, but
they still have the potential to disappoint analysts. CFRA Research's Angelo Zino wrote
in a recent note that iPhone units could under-deliver next year, and that "consensus
expectations remain too elevated." Those estimates could shift lower in the early part of
2019, Zino wrote, meaning that Apple shares "will likely start off the year on shaky
ground," though he expects the stock to outperform the broader indices throughout
2019.
4. Selling Investors on the Services Story
In its last earnings report, Apple said that it would no longer report iPhone unit sales
because they're simply no longer relevant. Many analysts agree, but it could take time
for investors at large to adjust to the new reporting regime. Evidence of slower iPhone
demand has been seized upon by many observers, and it will take more work for Apple
to persuade investors that services -- not unit sales -- are indeed the future.
5. Planning for the Arrival of 5G
In 2019, the entry of 5G into the market could shake up the competitive landscape for
smartphones, CFRA's Zino pointed out. "We expect both Samsung (SSNLF) and Huawei
to unveil 5G-enabled devices in the calendar year 2019, which may be perceived as a
negative from a competitive standpoint," he said, projecting a "no-growth environment"
for Apple in 5G in 2019 and into early 2020. But there is still room for optimism, even if
Apple is slightly late to the 5G party. The majority of the U.S. population won't have
access to 5G until 2020, Zino noted. Apple could release a suite of 5G phones in late
2020, and investors may start factoring in the benefits of 5G for Apple by the end of
next year.
6. The Decline of the Smartphone
As smartphones have become the center of the universe for consumers, Apple investors
have reaped great rewards. Taking a longer view, however, smartphones may not
always play such a dominant role in the lives of consumers, said Forte. "Today, the
smartphone, for the most part, remains the primary means that consumers interact
with the Internet," he noted. "We see the potential for a future where the smartphone
plays a diminished role as consumers increasingly interact with connected devices
without the influence of their smartphone," such as Amazon's (AMZN) - Get
Amazon.com Inc. Report Alexa or Alphabet's (GOOGL) - Get Alphabet Inc. Report Google
Home and Google Assistant.
Apple's Siri and Apple Home Pod products have lagged behind, but over time, a future
less dependent on phones could weaken Apple's operating performance, according to
Forte.
Impact of Macro-environment
Macro Environment that Effects Apple Social-cultural, technology, economic, political,
and legislation are the elements of the macro-environment that affects Apple. iTunes is
Apple’s biggest virtual media store. In general, the image of Apple also depicts the
modern individual lifestyle, combining function and conception, resulting in brand
recognition and commitment.
Part 4
Who will be your customers?
Accordingly, Apple’s target customer segment comprises well-off individuals who are
willing to pay extra for technology products and services with advanced design, functions,
and capabilities. The trend of Apple's iPhone target market demographics is: “the average
age of an Apple customer is 35-44 … men outnumber women on a 2:1 basis … (and) onequarter of people between 18-34 will likely purchase another apple product in the next
six months”. A higher percentage of customers who buy the iPhone, MacBook Air,
MacBook Pro, and Apple TV are between the ages of 25 and 34. -- Seniors 65 and older,
and people between 35 and 44, are the biggest iPad customers.
Features & Benefits according to customer
1. iPhone one is faster
If you’re thinking of buying a newer iPhone, know that the A12 Bionic chip inside beats
anything from the Android camp. For example, the iPhone XS beat the Galaxy S10 Plus’s
Snapdragon 855 chip in Geek bench 4, which measures overall performance. The gap is
narrower than it has been in the past, thanks to the Snapdragon 855 processor that will
power this year's leading Android phones, but the iPhone XS scored a higher 11,420 to
the 855-powered Galaxy S10 Plus’s 10,732. We've also found that the latest iPhones can
transcode video faster in our editing test, with the iPhone XS taking just 39 seconds,
compared to nearly 2.5 minutes for the Galaxy S10. This speed difference also makes
enjoying demanding augmented-reality apps a smoother experience.
2. Better hardware and software integration
Other the years, there's been plenty of examples of the advantage Apple has of owning
the whole widget, which means that there are in things that only it can pull off. Or at
least pull off well before anyone else. The latest example is Face ID, which securely logs
you into the iPhone using a 3D scan of your face via a True Depth sensor. Other
companies have attempted to copy Face ID, but none have succeeded.
Animoji and Memoji are other examples of Apple hardware and software working
seamlessly together. Samsung's equivalent, AR Emoji, seems like a half-baked effort by
comparison.
3. Easiest phone to use
Despite all the promises by Android phone makers to streamline their skins, the iPhone
remains the easiest phone to use by far. Some may lament the lack of change in the look
and feel of iOS over the years, but I consider it a plus that it works pretty much the same
as it did way back in 2007. Pick it up, turn it on, and touch the app to open. Of course,
Apple has folded in enhancements over the years, such as Siri and Control Center. With
iOS 11, Apple added the ability to edit Live Photos, send payments to friends in the
Messages app and organize files via a proper Files app (which is way overdue considering
that Android has had file access from the start). And in iOS 12, users got Siri Shortcuts
and Suggestions, faster performance, Group FaceTime, and other enhancements. Expect
the improvements to continue with iOS 13 this fall.
4. OS updates when you want them
This is going to hurt a little, Android fan boy. As of February 2019, a whopping 83 percent
of all iOS devices introduced in the last 4 years were using iOS 12, according to Apple.
Google hasn't even published adoption rate numbers for the latest Android Pie as of April
2019. And it took about a year for the older Android Oreo to get to just 19 percent
penetration. If you own a compatible iPhone, you can update to the latest version of iOS
on the day it's released (or close to it, depending on how Apple's servers stand up to the
strain). This dynamic isn't going to change anytime soon.
5. The best apps first
Now that both iOS and Android have millions of apps in their stores, the arms race is over,
right? Not really. The iPhone is still favored by developers as the launch platform of choice
for the hottest new apps. The Google Play store is like the Netflix of app stores; it gets the
hits, but usually after they see their first run on iOS. A prime example is Fortnite, which
took several months to leap from iOS to Android, and even then it was a Samsung
exclusive. Other apps, such as Super Mario Run and the HQ Trivia also took months to get
to Android. The parade of apps that hit the iPhone earlier than Android includes
Monument Valley 2, Affinity Photo, and Snapchat.
The message is clear: For those who don't want to be treated like second-class app
citizens, the iPhone is still the king.
6. No bloatware!
Samsung and others have gotten better at minimizing the pain for users by lumping all
carrier bloatware into a single folder, but it's still just crap taking up space on your phone.
You won't find a single piece of carrier software preloaded on an iPhone, making for a
clean out-of-the-box experience. Apple does include some apps you might not want or
need, like Apple Watch, but it has much more restraint than other manufacturers when
it comes to bundling its own stuff. And on iOS 12, you can at least disable built-in apps
you don't need.
7. Works beautifully with Macs
If you haven't tried a Mac in a while, you might be surprised to know just how well iPhones
work with them. For instance, with the Continuity feature in macOS, you can use your
MacBook to send and receive text messages and even receive and place calls. All you have
to do is keep your iPhone nearby. My favorite feature is Airdrop, which lets you easily
transfer photos and videos over Wi-Fi from your iPhone to a MacBook. With macOS
Mojave and iOS 12, the new Continuity Camera feature lets you instantly insert a photo
into a document, mail, or note.
8. Apple Pay
Between Android Pay and Samsung Pay, Apple has plenty of rivals, but right now, Apple
Pay is the most popular method for making mobile payments. It’s also dead-simple to use.
All you have to do to use Apple Pay is bringing your iPhone close to the supported
payment terminal at the checkout counter and then press your finger on your phone's
Touch ID sensor.
With the iPhone XS and iPhone XR, you just double-tap the Side button and then stare at
your phone to use Face ID. If you’re not that excited about using your phone to pay for
stuff at the store, you can try another alternative: iOS supports sending and receiving
money from friends and family from within the Messages app. Yes, there are third-party
apps that do this, but with the iPhone, it’s built right in.
MORE: Mobile Wallets: Android Pay vs. Apple Pay vs. Samsung Pay
Apple is even rolling out its own credit card called Apple Card, which promises to improve
your financial life by making it simple to track what you're spending where. There are also
no hidden fees and Daily Cash back rewards.
9. Family Sharing
An Apple family that plays together saves together. With Family Sharing on the iPhone,
Mom, Dad, and the kids can share purchases from the App Store, iTunes, and iBooks with
up to six people. You can still keep your own iTunes accounts, too. When Junior wants to
make a purchase, you receive an alert via the Ask to Buy feature, so you can keep better
tabs on what he's downloading and also prevent bill shock.
You can choose between a 200GB iCloud storage plan for the family ($2.99 per month for
200GB or $9.99 per month for 2TB).
Other Family Sharing features include shared photo albums, a shared calendar, and the
ability to see where your kids are on a map at any time. Google doesn't offer easy family
sharing on Android devices, but Android does benefit from a much better selection of the
best parental control apps.
10. Best support and help
When you have a problem with your Android phone, you can try finding a solution on
online forums or calling your carrier. But with the iPhone, you can tap into a vast database
of useful help articles on Apple's website, get help via live chat or schedule an
appointment at an Apple Store Genius Bar. With the exception of the Pixel line, Google
doesn't have this kind of direct relationship with its customers. For other Android phones,
you have to go through your carrier or the phone maker, and you won’t see the same
level of service.
a
Apple Target Segment
Type of
segmentation
Geographic
Demographic
Segmentation criteria
Region
Density
Age
Gender
Life-cycle stage
Devices: iPhone, iPad, Mac, iPod
US and international
Urban
18 – 45
Males & Females
Bachelor Stage
Newly Married Couples
Services: iTunes and the
iTunes Store, Mac App
Store, iCloud, Apple Pay,
US and international
Urban
18 – 30
Males & Females
Bachelor Stage
Newly Married Couples
Operating system &
software: iOS, OSX,
life, iWork
US and international
Urban
20 – 35
Males & Females
Bachelor Stage
Newly Married
Couples
Accessories: Apple
TV, Apple Watch, and
related accessories
US and international
Urban
20 – 45
Males & Females
Bachelor Stage
Newly Married
Couples
Full Nest I
Full Nest I
Full Nest II
Behavioral
Income
Occupation
High earners
Professionals, managers, and
executives
Degree of loyalty
‘Hardcore loyal’
‘Switchers’
Sense of achievement and
belonging
Self-expression
Benefits sought
Psychographic
High earners
High earners
Students
Professionals,
Professionals, managers managers, and
executives
‘Hardcore loyal’
‘Hardcore loyal’
‘Switchers’
‘Switchers’
Speed of service
Efficiency
Efficiency
Speed of service
Personality
Speed of service, advanced
features, and capabilities
Determined and ambitious
User status
Non-users, potential users
Social class
Middle and upper classes
Determined and
ambitious
Users
Non-users, potential
users
Middle and upper classes
Lifestyle[2]
Resigned
Aspirer
Full Nest II
High earners
Professionals,
managers
‘Hardcore loyal’
‘Switchers’
Recreation
Self-expression
Determined and
ambitious
Non-users, potential
users
Aspirer
Succeeded Explorer
Determined and
ambitious
Users
Non-users, potential
users
Middle and upper
classes
Aspirer Succeeded
Explorer
Risk avoiding
Risk neutral
Risk avoiding
Risk neutral
Risk avoiding
Risk neutral
Upper class
Aspirer Explorer
Succeeded
Risk aversion
Explorer
Risk avoiding
Risk neutral
Risk loving
Risk loving
Part 5
Competitors of Apple
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Lenovo
Samsung
Huawei
Dell
Hp
Asus
Oppo
Xiaomi
LG
Microsoft
Vivo
Google Pixel
Strength and weakness Analysis
What substitute products are available?
The best iPhone 13 alternatives
Samsung Galaxy S22 series.
OnePlus 9 series. ...
Asus Zenfone 8. ...
Samsung Galaxy Z Flip 3. ...
Sony Xperia 1 III. ...
Google Pixel 6 series.
What is the level of competition in your product industry/sector?
Industry Competition
The level of competition among the major companies that compete directly with Apple
in the technology sector is high. 5 Apple is in direct competition with companies such as
Google, Inc., the Hewlett-Packard Company, Samsung Electronics Co., Ltd., and Amazon,
Inc.
Business Strategies?
Apple’s business strategy can be classified as product differentiation. Specifically, the
multinational technology company differentiates its products and services on the basis
of simple, yet attractive design and advanced functionality. First mover advantage is
another element of Apple’s competitive advantage.