Challenges Facing In The Future of of Apple Inc †Free Samples

Question: Discuss about theChallenges Facing iIn The Future of of Apple Inc. Answer: Introduction Apple Inc. is known for its huge product lines, which ranges from laptops to mobiles to music stores. This report elaborates on the future of Apple Inc. in the market of smartphones, smart watches, tablets and laptop business. Discussion Apple Inc. is famous for its revolutionary and innovative smartphones. These smartphones provide high customer values as Apple boasts on the high quality of components they use for their smartphones (Yi and Gong 2013). Apple has been focusing on manufacturing the vital components of its smartphones like the phones screen because they want to rely less and less on third party manufacturers for their phones. There has been an ongoing conflict between Apple Inc. and Qualcomm over the high royalty rates for the chips and modems provided by Qualcomm. Apple has implicated that they have to price their products at a high price due to the unacceptable royalty rates. The royalty system has created quite a problem for Apple Inc. as Qualcomm gets a part of the revenue generated for the innovations in IPhones. Apple is opting for other suppliers like Intel for their modems. Qualcomm manufactures far superior modems than Intel as seen in the two IPhone 7 versions one with Intel modem and another with Qualcomm modem (Forbes.com 2017). Apple will create customer value loss if they keep on using Intel modems in their phones. Broadcom on the other hand, has bid buy $103 billion to buy its rival chipmaker Qualcomm (Salinas 2017). This could mean that if the deal happens, Apple will be able price its products at a cheaper rate as Broadcom is friendlier to Apple Inc. Laptop Mag has put Apple at the top of its list in their surveys since 2010. In this year, Apple dropped down to the fifth position. This is because of the new MacBook Pros touch bar. Apple has been marketing their IPad as a replacement to MacBook (Murphy 2017). The value of IPad might rise in the near future as the users opt for more portability. The smart watch product lines of Apple will also be facing an up rise in sales with the new lines of watches with glucose monitoring smart bands. Figure 1: Quarterly IPad revenue of Apple (Source: Murphy 2017) Conclusion Thus, it can be concluded that Apple Inc.s future depends on the Broadcom-Qualcomm deal succeeding, as they will be able to provide their IPhones at a cheaper rate and the IPad with enough marketing from Apple might replace the MacBook. References: Forbes.com., 2017. Forbes Welcome. [online] Available at: https://www.forbes.com/sites/aarontilley/2016/10/20/qualcomm-intel-modem-apple-iphone-7/#7980ec622352 [Accessed 24 Nov. 2017]. Murphy, M., 2017. Apple really wants you to replace your laptop with an iPad. [online] Quartz. Available at: https://qz.com/932089/apple-aapl-really-wants-you-to-replace-your-laptop-with-an-ipad-pro-new-models-likely-released-in-2017/ [Accessed 24 Nov. 2017]. Salinas, S., 2017. A Broadcom deal could help fix Qualcomm's problems with Apple. [online] CNBC. Available at: https://www.cnbc.com/2017/11/06/broadcom-qualcomm-deal-could-ease-tensions-with-apple.html [Accessed 24 Nov. 2017]. Yi, Y. and Gong, T., 2013. Customer value co-creation behavior: Scale development and validation. Journal of Business Research, 66(9), pp.1279-1284.