apple pay case study summary

REPORT: What Apple Pay At Five Says About The Future Of Mobile POS Payments

Apple Pay went live five years ago yesterday, on Oct. 20, 2014 .

When Tim Cook took the stage a month beforehand to announce this mobile payments innovation, he shared Apple’s vision for modernizing how consumers and merchants would interact at the physical point of sale. Instead of wasting time fumbling around for plastic cards and swiping them at terminals, consumers would use the mobile devices always in their hands to check out quickly, easily and securely with Apple Pay’s mobile wallet.

He used this video to make that point.

In true Apple fashion, the user interface was clean, crisp and slick. Apple Pay’s security and privacy protocols were state-of-the-art, leveraging the NFC standard and their Secure Element to enable secure, tokenized, contactless payments at the physical POS. Issuers lined up to enable cards in their wallets.

The tech press and pundits lauded Apple Pay as a payments and commerce game-changer, and predicted the demise of the plastic card a decade hence. Some even said Apple Pay would replace PayPal – and investors took note. eBay, which owned PayPal at the time, saw its stock slide 6 percent the day Apple Pay was announced.

I wasn’t so sure.

As I wrote in a piece right after Apple Pay was unveiled, I thought it faced many difficulties in securing ignition, and the company had vastly underestimated the challenge of getting consumers to adopt it. Apple’s reputation as a mobile innovator couldn’t overcome the reality of launching with very few merchants with contactless terminals – and even fewer consumers with compatible phones.

Perhaps the biggest obstacle of all was the consumer’s muscle memory associated with using cards in stores to pay, and their ubiquitous penetration. The lowly plastic card – practically a prehistoric relic standing alongside an iPhone 6 and an Apple Pay wallet – was accepted everywhere and at every merchant point of sale. Most consumers had a debit, credit or prepaid card they could use, and knew it would work the same way each and every time. Apple Pay wasn’t anywhere close to being able to make that claim.

And contrary to the video, most people weren’t fumbling for cards (they used them all the time). In fact, they could pay with cards lickety-split. For most consumers, there was no burning problem to be solved at the physical point of sale.

Five years later, there are more consumers with iPhones and Apple Pay wallets and more stores that can enable an Apple Pay transaction. So that’s not a problem anymore.

So, there are more transactions, because there are more phones and more places to use it, but the rate of use – the percentage of people who can use Apple Pay and do at the physical point of sale – has remained small and steady.

Apple Pay at Five

At the time of iPhone’s live debut in October of 2014, merchants accounting for only 19 percent of all retail sales could enable an Apple Pay transaction, only 39 percent of all iPhones could support an Apple Pay wallet and just 11 percent of all consumers owned one. Getting to critical mass would come down to solving the age-old “chicken and egg” platform ignition problem: getting enough consumers with the right iPhones to use it at stores that accepted it, which would incent more merchants to get on board, which would get more consumers to use it – and so on.

PYMNTS decided to document Apple Pay’s adoption and usage at the physical point of sale as almost a real-time case study in igniting an entirely new way to pay in stores where plastic cards had ruled for 60 years. Shortly after its launch and for its first three years, we studied U.S. consumers with the right iPhones who shopped at the stores that accepted Apple Pay each quarter to document how many of them used it to check out. Over those years, Apple never released anything other than vague statements proclaiming Apple Pay’s “awesome” progress, so our studies became the de facto public record for its in-store performance.

Over that three-year period, we reported that, not unsurprisingly, adoption and usage – the percentage of people with Apple Pay who shopped at merchants with contactless terminals and used it to pay at those merchants – was a slog.

Like many of you, I would stand in line behind people, iPhones in one hand and plastic card in another, paying for their purchases in the store. For most consumers, ubiquity, certainty and familiarity with how to pay trumped slickness and elegance, for both mobile and digital.

Our survey data backed that up.

I wrote over those years that the longer it would take for those consumers to get comfortable and try Apple Pay once, and then twice, at stores that supported contactless transactions, the greater the risk that it would never get enough usage and critical mass to overtake cards at the physical point of sale.

Five years after Apple Pay was available for consumers to use, and two years after our last consumer field study, PYMNTS went back into the field to examine iPhone owners and their usage of Apple Pay at the physical point of sale at merchants that accepted it.

Like always, we asked eligible consumers – those with iPhones with the Apple Pay wallet who made a purchase at a store that could enable an Apple Pay transaction – whether they used Apple Pay to pay for those purchases. For this study, in September of 2019, we fielded a national survey of 1,000 such consumers.

Apple Pay’s Payments Pie Problem

As I mentioned earlier, the Apple Pay opportunity pie has grown tremendously over the last five years, because the number of iPhones that can use Apple Pay and the number of merchants that can take it have both increased several-fold.

According to the PYMNTS analysis, in 2015, about 69 percent of the total U.S. adult population had a smartphone ; currently, 81 percent own one.

In 2015, Apple Pay was compatible with only two iPhone models, iPhone 6 and 6S, representing about 39 percent of all iPhones with 11 percent of consumers having one. Today, that percentage has grown to roughly 89 percent of all iPhones and about 34 percent of all consumers capable of using Apple Pay to pay for an in-store purchase.

Apple has also done a lot of nudging over the last few years to prompt consumers to download Apple Pay. Upgrading the OS, for example, isn’t deemed complete by Apple until Apple Pay is installed – and it’s also required to make that little round, red circle on the Settings app on the iPhone home screen go away.

In 2015, contactless terminals were new to merchants, and merchants that offered contactless only accounted for roughly 19 percent of all retail sales. Many merchants with contactless terminals also resisted activating contactless for fear of losing control of their customers and competition for their own mobile wallets. In 2019, contactless terminals are present at merchants that we estimate account for 51 percent of all retail sales, excluding automobiles.

As a result of the increase in the number of compatible iPhones and in merchants that take contactless, the volume of transactions that could be paid for with Apple Pay has increased more than eight-fold, from roughly $88 billion in 2015 to $768 billion in 2019.

In 2015, when Apple Pay was a newbie, consumer usage was about 5.1 percent. In other words, among consumers who could use Apple Pay to pay in a store that accepted it, they did so only one out of every 20 times. Just to be extra clear: When we measure usage, we are referring to consumers with an iPhone capable of having an Apple Pay wallet who are shopping in stores capable of enabling an Apple Pay purchase.

Five years later, usage of Apple Pay to check out in a physical store is about 6 percent, down from 6.9 percent in 2017. In other words, roughly 1.2 out of every 20 people who could use Apple Pay to pay in a store that accepts it, do so.

Based on these results, we estimate that Apple Pay accounts for roughly 1.1 percent of all retail and food services sales – excluding online and auto. Unless the usage rate increases from this 1/20 range, there are only two paths to increasing Apple’s share of the payments pie at the retail point of sale.

First, and most promising, the penetration of contactless terminals could increase (it could almost double from 51% percent to 100 percent, eventually). Second, and less likely, Apple’s share of smartphones could increase. Neither provides much headroom for growth in the long term, and even less so in the next few years.

The Walmart Pay Payments Pie

As part of our analysis in September, using the same methodology, we also surveyed 1,000 smartphone owners about their adoption and usage of Walmart Pay .

Walmart Pay launched a year later than Apple Pay, in December of 2015, but without two of the ignition hurdles facing Apple Pay.

Walmart Pay was enabled at all of Walmart’s U.S. stores, making the wallet ubiquitous from the start. Walmart Pay was compatible with almost all devices, too. Consumers with just about every kind of smartphone, Android and iOS, could download the Walmart Pay app – 95 percent of all smartphone users compared to Apple’s 39 percent – and could use it at every single Walmart store.

That meant Walmart Pay’s ignition challenge was to create the incentives to get consumers to download and use the Walmart Pay app to check out instead of use cash or cards in the store.

When Walmart Pay launched, it was described as a “hands-free” way to pay without tapping or waving a phone at the terminal – appealing to busy moms with kids in tow who didn’t want to fumble around for cards or fiddle with a phone at checkout. The Walmart Pay app was also linked to its Savings Catcher feature – something that was once touted as a key value driver for Walmart Pay – which did automatic price comparisons and deposited the savings differences into an account that consumers could apply at checkout via the app.

For the first three years of Walmart Pay’s debut, we saw impressive, almost hockey-stick, growth. In its first two years, the adoption and usage of Walmart Pay had outpaced that of Apple Pay, and in less time.

But unlike Apple Pay, over that last two years, Walmart’s piece of the payments pie hasn’t seen that much of an increase. In the U.S., Walmart Pay’s retail footprint includes Walmart stores – and, since all stores could enable it almost from day one, growth in share of sales had to come from growth in Walmart’s in-store sales.

Overall smartphone ownership has also increased since that time, but since Walmart Pay has always been accessible on more smartphones than Apple Pay, the growth in ownership hasn’t expanded its eligible consumer base all that much.

And over that same period, in November of 2018, Walmart announced changes to its Savings Catcher program – and announced that it would sunset the program in May of 2019. And Walmart has invested heavily in online order-ahead and curbside pickup for groceries, which drives more than half of their U.S. retail sales.

Today, Walmart Pay is positioned as a fast, easy and secure way to pay in Walmart stores.

Over the last two years, we observed that Walmart Pay’s in-store usage has declined slightly, among those consumers who have phones that can enable Walmart Pay and who choose to use it at the physical point of sale – although it’s close enough statistically to be more of a flat line than a pronounced downward trend. We estimate that Walmart Pay accounts for about 3.6 percent of sales in the retailer’s physical stores.

Like Apple Pay, Walmart Pay’s use as an in-store payment method among consumers who could use it seems to have plateaued. Unlike Apple Pay, that could be the result of consumers using the Walmart Pay app to order ahead and pay for groceries instead of going to the physical store to shop for them. Or, like Apple Pay, it could mean consumers don’t have a problem using whatever other form factors they have always used to pay.

The Digital Wallet Achilles Heel

Over the last five years, I’ve been very vocal on these pages about the failure of Apple Pay – and most every other digital wallet – in displacing the plastic card at the physical point of sale. Apple Pay and Walmart Pay, for different reasons, today stand as interesting proof points about the power of consumer habit, the efficiency of using plastic cards, and the incentives required to change the behavior of consumers when most of them don’t feel they have any problem using cards to pay when they go into stores to shop.

Long gone, thank goodness, are the annoying chirps and screams that came from terminals in the early days of chip and PIN transactions. These days, those transactions are quick, easy and quiet. More issuers are also putting contactless cards into the hands of consumers who, according to our research, are more than eager to use them to pay in-store.

In the 2019 How We Will Pay study released last month, which looked at more than 5,000 U.S. consumers, interest in contactless cards increased by 20 percent over the last year, now including nearly one-third of all consumers. Forty-three percent of the mobile-first 30- to 40-year-old bridge millennials cite having an interest in and willingness to use them at the physical point of sale. Convenience (77 percent) and security (61.9 percent) were noted as the key reasons. When it comes to where consumers are interested in using contactless, mass merchants (81 percent), grocery stores (80 percent) and drug stores (76 percent) topped the list.

Those are the same everyday merchants that Apple Pay targeted when it launched.

In a world dominated by mobile devices and apps – and trillions of dollars of sales conducted at the physical point of sale – cards still rule.

The Plastic Card Tail That Wags the Mobile Wallet Dog

This insight has not gone unnoticed by Apple, Walmart or even PayPal with Venmo, as digital wallets are turning to them, quite ironically, to drive usage of their digital wallets.

As I noted above, Apple Pay has only a few levers at its disposal to drive more share of Apple Pay at the physical point of sale.

With more than 80 percent of the U.S. adult population owning a smartphone and all of Walmart stores capable of enabling a Walmart Pay transaction, Walmart Pay gives more consumers more of a reason to download and use it.

Say hello to the plastic card with cashback rewards.

Apple made news when it introduced what Goldman Sachs’ CEO said was the most successful card launch in history – the Apple Card – which offers 2 percent cash back on Apple Pay purchases. The Apple Card runs over Mastercard rails, so it can be used everywhere Mastercard is accepted – including all of those physical points of sale that Apple Pay set out to disrupt five years ago.

Walmart introduced a cashback credit card, too, issued by Capital One and also running over Mastercard rails, which offers the same thing for Walmart Pay users. For Walmart, the co-branded card is also a way to capitalize on purchases made beyond its physical store footprint.

PayPal also joined the digital wallet credit card game when it announced last week that it will issue a Venmo credit card next year, designed to monetize the 40 million users of its digital app.

Now, whether these cards become the bridges to getting consumers to use digital wallets instead of those cards at the physical point of sale remains to be seen.

For now, they seem to be an admission by the mobile payments pioneers that consumers have some pretty strong preferences for what they like to use when checking out in the physical store.

So, What Have We Learned?

Despite the splash and pizzazz of the various “Pays” at the physical point of sale over the last five years, the Starbucks mobile app remains the most successful example of a mobile wallet ever introduced in the U.S. Mobile app users now top 16 million , driving roughly 40 percent of sales, according to the Starbucks CEO during the company’s last earnings report.

What hooked consumers at first – the ability to pay in-store using an easy-to-reload mobile app and collect cool rewards – isn’t necessarily why consumers remain hooked today. Increasingly, the appeal of the Starbucks mobile app is the convenience of using it to order ahead and skip the checkout line completely, while racking up stars to redeem on future purchases.

For the Starbucks I visit today, the lines of people waiting to order and check out in the store are dwarfed by those who have already done that on their way there. The order-ahead feature is apparently so successful that Starbucks is piloting a mobile-only store in New York City.

Every QSR is investing in order-ahead to try and hook consumers into using their app. And delivery aggregators are using it to appeal to consumers who don’t want to go to a physical restaurant to eat.

It’s what every retailer with an online presence is prompting consumers to do – buy this dress or those shoes or that watch online and pick it up in the store. It’s why grocery stores, especially Walmart, are investing so heavily in curbside pickup. Why use an app to check out in the store when you can use it to order ahead and skip the standing-in-line scene entirely?

Maybe we’ve learned what we knew all along: that for a new platform to ignite – any platform, not just payments – it has to solve a big and obvious friction. For consumers, then and now, when they are in the store checking out, the majority of the time they reach for their cards and not their mobile phones.

When they do reach for their phones, it’s because they want to skip the instore experience completely. The biggest pain point when shopping in the store isn’t pulling out a card to pay at checkout, it’s hoping that what a consumer wants to buy is in the store and then waiting in line to pay for it if it is.

Recommended

Trending news, the big story, featured news, partner with pymnts.

We’re always on the lookout for opportunities to partner with innovators and disruptors.

Brought to you by:

Apple Inc. in 2020

By: David B. Yoffie, Daniel Fisher

After a decade as CEO, Tim Cook is facing one of his biggest strategic transitions of his tenure. While Apple had performed spectacularly well under Cook, Apple's core business was maturing. Sales of…

• Length: 31 page(s)
• Publication Date: Apr 6, 2020
• Discipline: Strategy
• Product #: 720454-PDF-ENG

What's included:

• Teaching Note
• Educator Copy

$4.95 per student

degree granting course

$8.95 per student

non-degree granting course

Get access to this material, plus much more with a free Educator Account:

• Access to world-famous HBS cases
• Up to 60% off materials for your students
• Resources for teaching online
• Tips and reviews from other Educators

Already registered? Sign in

• Student Registration
• Non-Academic Registration
• Included Materials

After a decade as CEO, Tim Cook is facing one of his biggest strategic transitions of his tenure. While Apple had performed spectacularly well under Cook, Apple's core business was maturing. Sales of iPhones, iPads, and Macs were flat or down. However, Apple's new hardware-Apple Watch and Airpods-as well as services were growing rapidly. This case explores Apple's history and Cook's strategic options for driving new hardware and services into Apple's mainstream in the next decade.

Learning Objectives

This case can be used for several purposes, including industry analysis, introduction of complementary assets, sustaining competitive advantage and expanding corporate scope.

Apr 6, 2020

Discipline:

Harvard Business School

720454-PDF-ENG

We use cookies to understand how you use our site and to improve your experience, including personalizing content. Learn More . By continuing to use our site, you accept our use of cookies and revised Privacy Policy .

Apple v. Samsung patent trial recap: How it all turned out (FAQ)

The tech companies battled in a San Jose, Calif., court over patents. CNET breaks down what happened during the monthlong trial.

The latest round in the Apple v. Samsung patent-infringement battle is finally over -- well at least until it's appealed.

A jury on Friday handed back a mixed verdict in the Apple v. Samsung patent-infringement case, determining that both companies were guilty in some aspects but not guilty in others.

The trial included about 52 hours of testimony, three hours of opening arguments, and four hours of closings. It covered everything from the invention of the technology at issue in the case to what damages should total. Apple argued throughout the trial that its case was about Samsung, not Google, and that Samsung copied Apple out of desperation. Samsung, meanwhile, argued that Apple's suit was about hurting competition and Android.

CNET details what exactly happened:

What was this trial about?

For the latest case, Apple filed suit against Samsung on February 8, 2012, accusing it of infringing several patents. Samsung then filed counterclaims against Apple. In Apple's original suit, the company said Samsung "has systematically copied Apple's innovative technology and products, features, and designs, and has deluged markets with infringing devices in an effort to usurp market share from Apple." Judge Lucy Koh ordered for the trial to start March 31.

Apple v. Samsung 2014: The infringing devices (pictures)

The whole spat started when Apple filed suit against Samsung in April 2011, accusing its rival of copying the look and feel of its iPhones and iPads. Samsung countersued, and the case went to trial in August 2012. A nine-person jury sided with Apple on a majority of its patent infringement claims against Samsung. It a warded Apple $1.05 billion in damages, much less than the $2.75 billion sought by the Cupertino, Calif., company. Samsung, which asked for $421 million in its countersuit, didn't get anything.

However, US District Court Judge Lucy Koh in March 2013 ordered a new trial to recalculate some of the damages in the case, striking $450.5 million off the original judgment against Samsung. A jury in November awarded Apple an additional $290.5 million in damages, bringing the total damages to $930 million.

What did the companies argue this time around?

Apple argued, as it had in the past, that it took on a lot of work and risk to develop the first iPhone and iPad. Samsung, meanwhile, argued that Apple was trying to hurt competition by targeting it for litigation. It also claims that Apple infringed some of its patents. "Without the ability to enforce its intellectual property rights ... Samsung would not be able to sustain the extensive commitment to research and development that has enabled it to lead the way into numerous improvements across a broad range of technologies," the company said in a court document in April 2012.

What patents were involved?

There were seven patents at issue in the latest case -- five held by Apple and two by Samsung. Apple accused Samsung of infringing US patents Nos. 5,946,647; 6,847,959; 7,761,414; 8,046,721; and 8,074,172. All relate to software features, such as quick links for '647, universal search for '959, background syncing for '414, slide-to-unlock for '721, and automatic word correction for '172. Overall, Apple argued that the patents enable ease of use and make a user interface more engaging.

Samsung, meanwhile, had accused Apple of infringing US patents Nos. 6,226,449 and 5,579,239. The '449 patent, which Samsung purchased from Hitachi, involves camera and folder organization functionality. The '239 patent, which Samsung also acquired, covers video transmission functionality, and the Korean company accused Apple's FaceTime of infringing the technology.

What patents were found to be infringed?

The jury found all of Samsung's accused gadgets infringed Apple's '647 "quick links" patent but that none infringed the '959 "universal search" patent or the '414 "background sync" patent. Results were mixed for the '721 "slide to unlock" patent, with some Samsung devices, such as the Galaxy Nexus, found to infringe, and others found not to. Judge Koh, in a pretrial judgement, had already ruled that Samsung infringed the '172 "automatic word correction" patent, and the jury simply calculated damages.

What gadgets were found to infringe?

The Samsung Admire, Galaxy Nexus, Galaxy Note, Galaxy S2, Galaxy S2 Epic 4G Touch, Galaxy S2 Skyrocket, and Stratosphere infringed Apple's '172 patent. Those device -- as well as the Galaxy Note 2, Galaxy S3, and Galaxy Tab 2 (10.1) -- also infringed Apple's '647 patent. The Samsung Admire, Galaxy Nexus, and Stratosphere were found to infringe Apple's 721 patent.

Apple's iPhone 4, iPhone 4S, iPhone 5, iPod Touch (fifth generation, 2012), and iPod Touch (fourth generation, 2011) were found to infringe Samsung's '449 patent.

To see what patents each Samsung device is accused of infringing (denoted by an X), and what patents the jury ultimately decided Samsung did violate (denoted by an asterisked X*), refer to the chart below.

Samsung devices accused by Apple

Outlined below are the Apple devices the jury deemed guilty of patent violation.

Apple devices accused by Samsung

How long did the trial last?

The case kicked off March 31 with jury selection and wrapped up May 5. Court was in session Mondays, Tuesdays, and Fridays throughout the month of April, with the companies granted a total of 52 hours of testimony, three hours of opening arguments, and four hours of closings. The jury started its deliberations late in the day April 29. It reached a verdict at the end of the day May 2, but Judge Koh recalled the jury May 5 to recalculate one of the damages figures.

What did the jury miscalculate?

It had awarded Apple no damages for one version of the Galaxy S2, but Apple believed it should be awarded some money for Samsung's infringement of the '172 patent. The jury had granted Apple $4.02 million for the Galaxy S2 Epic 4G Touch and $5.8 million for the Galaxy S2 Skyrocket. After reconsidering the figures, the jury shuffled around damages awarded to each of the Galaxy S2 models but didn't change the total. The jury foreman, Tom Dunham, said it was a "clerical error."

That's tricky. Both companies were found guilty of infringing some of each other's patents and ordered to pay damages. Ultimately, it wasn't a clear-cut win for either company, but the verdict also wasn't the overwhelming defeat Samsung faced in 2012. By awarding Apple less than 10 percent of the damages it wanted, the jury of mostly tech novices, which deliberated for three full days after a four-week trial, sent a much different message than the prior trial that netted Apple nearly $1 billion. Samsung surely feels relieved by the outcome, though it still was deemed a copycat in some respects. And Apple, which was vindicated in some of its accusations, probably believes Samsung's punishment is too light.

How much money was involved?

The jury ordered Samsung to pay $119.6 million for infringing three of Apple's five patents, much less than the $2.2 billion the iPhone maker had demanded. At the same time, Apple was ordered to pay Samsung $158,400 for infringing one of the Korean company's two patents. Samsung had asked for $6.2 million in damages, and it had argued that if it had infringed all of Apple's patents, it only owed $38.4 million.

While the companies asked for damages, the case was about more than money. What's really at stake is the market for mobile devices. Apple now gets two-thirds of its sales from the iPhone and iPad; South Korea-based Samsung is the world's largest maker of smartphones; and both want to keep dominating the market.

How did the companies react to the verdict?

Apple said Friday, following the verdict:

"Today's ruling reinforces what courts around the world have already found: that Samsung willfully stole our ideas and copied our products. We are fighting to defend the hard work that goes into beloved products like the iPhone, which our employees devote their lives to designing and delivering for our customers."

Samsung said Monday, following the jury recalculation:

"We agree with the jury's decision to reject Apple's grossly exaggerated damages claim. Although we are disappointed by the finding of infringement, we are vindicated that for the second time in the US, Apple has been found to infringe Samsung's patents. It is our long history of innovation and commitment to consumer choice, that has driven us to become the leader in the mobile industry today."

What role did Google play in all of this?

Samsung argued during the trial that most features Apple said infringed were part of Android, Google's mobile operating system that powers Samsung's devices. All patents except one, called "slide to unlock," are built into Android, the Korean company said, and it accused Apple of attacking Android . Apple argued that the patent infringement trial had nothing to do with Android .

It came out during the trial, however, that Google was helping Samsung with its defense for two patents, '414 for background syncing and '959 for universal search. Those patents wielded by Apple directly target features of Android that Google developed, including the Google search box and Gmail. The other patents target features that can be tweaked by handset makers or by the Android open source community.

The jury determined that Samsung had not infringed the '414 and '959 patents but that it did infringe Apple's three other patents.

The jury said Google didn't factor into its decision for infringement or damages, but it believed Apple and Google needed to battle directly instead of involve handset makers such as Samsung.

"I guess if you really feel that Google is something that's the cause behind this, as I think everybody observed, then don't beat around the bush," said jury foreman Tom Dunham, a retired IBM software executive. "The fact is Apple has [intellectual property] they believe in. So does Samsung. So does Google. Let the courts decide, but a more direct approach might be something to think about."

Why doesn't Apple sue Google?

Suing Google wouldn't get Apple far since Google doesn't make its own phones or tablets and gives away its operating system for free. Instead, Apple has sued companies that sell physical devices using Android, a rival to Apple's iOS mobile operating system. In particular, Apple believes Samsung has followed a strategy to copy its products and then undercut Apple's pricing.

For Apple, it's easier to point fingers at the handset makers who generate revenue and profit off of Android phones, rather than Google, which only indirectly generates revenue through mobile advertising and services. It's also easier to display an iPhone next to a Galaxy device and show the similarities and describe how the iPhone predated other rival smartphones. Work had started on Android before the iPhone launched, making it harder to persuade a jury that Google was a copycat.

Overall, the lawsuits are part of a broader effort by Apple to halt the momentum of Android, which has long surpassed iOS as the dominant mobile operating system. Apple isn't just looking for damages; it wants the phones barred from sale. Legal experts say Apple could deal more damage and potentially reap a higher reward going after multiple handset manufacturers than by just striking at Google.

"It is much more effective to sue the device makers as their incremental margin per device is low relative to the benefit that Google gets from having access to your eyeballs," said Chris Marlett, CEO of MDB Capital Group, an investment bank that maintain an intellectual property database. "Ultimately if the device companies can't make a good margin on the phones, they will go out of the phone business. This ends up being a much more effective route to hurting Android."

What witnesses did each side present?

The trial contained testimony by numerous technical and damages experts, as well as people who invented the technology at issue in the case.

The first day of arguments featured testimony by Phil Schiller , Apple's head of marketing. Other witnesses who have testified for Apple include Greg Christie, an Apple engineer who invented the slide-to-unlock iPhone feature; Thomas Deniau, a France-based Apple engineer who helped develop the company's quick link technology; and Justin Denison, chief strategy officer of Samsung Telecommunications America. Denison's testimony came via a deposition video.

The crux of Apple's case came with two expert witnesses, John Hauser, the Kirin professor of marketing at the MIT Sloan School of Management, and Christopher Vellturo, an economist and principal at consultancy Quantitative Economic Solutions. Hauser conducted a conjoint study that determined Apple's patented features made Samsung's devices more appealing, while Vellturo determined the amount of damages Apple should be due for Samsung's infringement: $2.191 billion.

Samsung, which launched its defense April 11 after Apple rested its case, called several Google engineers to the stand to testify about the early days of Android and technology they created before Apple received its patents. Hiroshi Lockheimer, Google vice president of engineering for Android, said his company never copied iPhone features for Android. Other Google Android engineers, Bjorn Bringert and Dianne Hackborn, also testified about features of the operating system.

High-ranking Samsung executives, including former Samsung Telecommunications America CEO Dale Sohn and STA Chief Marketing Officer Todd Pendleton, also took the stand during the monthlong trial. The two executives testified about Samsung's marketing push for the Galaxy S2 and other devices, saying a shift in the Korean company's sales and marketing efforts -- not copying Apple -- boosted its position in the smartphone market.

The latter half of the trial largely featured experts hired by Samsung to dispute the validity of Apple's patents and to argue that Samsung didn't infringe. David Reibstein, chaired professor of marketing at the University of Pennsylvania's Wharton School of Business, refuted Apple expert Hauser's testimony from earlier in the trial. Judith Chevalier, a professor of economics and finance at the Yale University School of Management who was hired by Samsung, said her analysis determined that a reasonable royalty for Samsung's assumed infringement would be $1.75 per device, or $38.4 million overall . Apple had argued it deserved $40 per device for infringement as well as lost profits for a total of $2.191 billion.

After presenting its defense, Samsung on April 21 launched its own infringement suit against Apple. Dan Schonfeld, a professor of computer science at the University of Illinois at Chicago, testified that Apple infringed the '239 patent in its iPhone through the use of FaceTime and a feature for attaching video to messages and mail. And Ken Parulski, another expert who was part of the Kodak team that developed the world's first color digital camera, testified that Apple infringed another Samsung patent for organizing video and photos in folders.

James Storer, a professor of computer science at Brandeis University hired by Apple as an expert witness, then testified April 22 that Apple didn't infringe Samsung's patents. The company then called witnesses such as Apple engineers Tim Millet and Roberto Garcia to testify about the creation of technology used in iPhones and iPads. Millet serves as senior director of platform architecture at Apple, helping create the processors that power iOS devices. Garcia, meanwhile talked about the creation of the FaceTime technology that had been accused of infringing a Samsung patent.

How did the jury reach its decision?

The jury foreman, Tom Dunham, said the jurors simply looked at the evidence that was presented. While Google popped up time and again, that didn't impact jurors' opinions. They declined to specify which testimony or witnesses swayed their opinions.

What was the most influential evidence for the jury?

The jury said it was most influenced by information that Google was helping Samsung mount and fund its defense.

What does the verdict mean for consumers?

Ultimately for consumers, the verdict means little. It's highly unlikely that US District Court Judge Koh, who has been overseeing the battle in federal court in San Jose, Calif., for the past three years, will issue a sales ban on gadgets from either company. And Apple and Samsung already have workarounds or have changed features in the devices to avoid any more patent violations.

Buyers likely also won't see any difference in device pricing or features. But what they may see are less innovative products if litigation keeps taking attention away from product design and development.

What's next?

Appeals galore. Samsung's lead attorney, John Quinn, already said Samsung will appeal. "In post-trial motions and on appeal, we will ask the judge and the federal circuit to cut the 6 [percent] verdict to 0, which is where it should end," he said. And Apple likely will file appeals of its own. The companies could appeal the case as far as the US Supreme Court.

There also could be fresh suits in the future, particularly since Apple had so much success with its '647 patent. All Samsung devices in the case were found to infringe that patent for automatically detecting data in messages that can be clicked, such as phone numbers.

Corrected last name of MDB Capital Group on May 9.

Mobile Guides

• Best iPhone
• Best Galaxy S24 Deals
• Best iPhone Deals
• Samsung Galaxy S24 Review
• Best Android Phones
• Best Samsung Galaxy Phone
• Pixel 8 Pro Review
• iPhone 15 Pro/Pro Max Review
• Best iPhone 15 Deals
• Best Foldable Phones
• Galaxy Z Fold 5 Review
• OnePlus Open Review
• Best Galaxy Z Flip Deals
• Best Wireless Earbuds
• Best Noise Canceling Headphones
• Best Headphones
• Best Over Ear Headphones
• Best Wireless Earbuds and Headphones for Making Calls
• Best Headphones for Work at Home
• Best Noise Canceling Wireless Earbuds
• Best Sounding Wireless Earbuds
• Best Cheap Wireless Earbuds
• Best Wireless Headphones
• Best iPhone 15 Cases
• Best iPhone 14 Cases
• Best Power Bank for iPhone
• Best Airpods Pro Accessories
• Best Magsafe iPhone Accessories
• Best Speakerphone
• Best Wireless Car Charger and Mount
• Best iPhone Fast Charger
• Best Portable Chargers and Power Banks for Android
• Apple Watch Series 8 vs Series 7
• Best Apple Watch Bands
• Best Android Smartwatch
• Apple Watch Ultra Review
• Best Smartwatch
• Best Prepaid Phone Plans
• Best Cheap Phone Plans
• Best Unlimited Data Plans
• Best Phone Plans
• Best Phone Plan Deals
• Best Senior Phone Plans
• Best Family Phone Plans
• Best Travel Phone Plans
• Best Verizon Plans
• Samsung Promo Codes
• Consumer Cellular Coupons
• Verizon Promo Codes
• AT&T Wireless Promo Codes
• Best Buy Coupons
• Motorola Coupon Codes
• OnePlus Promo Codes
• Sony Coupon Codes
• Apple Store Promo Codes

Why Attend?

• Live Online
• 1,00,000+ people attended since 2009
• Rs 1999 FREE
• Certificate of Participation
• An exclusive Surprise

Table of Contents

Case Study On Apple Pay : A New Digital Marketing Tool

About APPLE

Apple Inc. is an US Based multinational technology company headquartered in Cupertino, that designs, develops, and sells consumer electronics, softwares. Its hardware products include the iPhone , the iPad, the Mac , the iPod , and the Apple Watch smartwatch.

Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne on April 1, 1976, to develop and sell personal computers.Later It was incorporated as Apple Computer, Inc. and was renamed as Apple Inc., to reflect its shifted focus toward consumer electronics.

APPLE’S Business Objective

The objective of this case study is: ‘To obtain stellar approach products and service within tight time-frame, at a cost that represents the best possible value to our customers and shareholders.’ 

Strategy Adopted by APPLE

Launched Last summer, Apple Pay has been an advanced step in replacing the traditional wallet. And not only will it have consumer benefits, and is a big plus for the retail sector but this new technology is also bringing a fresh tool for digital marketers to play with.

Apple Pay and customer data

It has been announced by Apple that it won’t be collecting any data itself through the new technology – even though this offers immense knowledge of the  customers’ spending habits and could have been extremely useful for digital marketing purposes. The data will be shared between the customer, merchant, and bank.

So this will help digital marketers  to build a profile of their customer based on data about their purchasing habits.

“Apple Pay is a mobile payment and digital wallet service by Apple Inc. that lets users make payments using the iPhone 6, 6 Plus, and later, Apple Watch-compatible devices (iPhone 5 and later models), iPad Air 2, iPad Pro and iPad Mini 3 and later. Apple Pay does not require Apple Pay-specific contactless payment terminals, and can work with existing contactless terminals. “

A new digital marketing tool

Building loyal relationships.

Those using Apple Pay are much more likely to be open to e-receipts  which is an ideal way for digital marketers to engage with customers after the foremost interaction or purchase, as the space on the receipt can be used for promotional purpose. Here brands can display their offers, and push social media channels, amongst other things, to consumers that are already engaged with them.

The mobile wallet

The ‘Passbook’ app (Wallet), where Apple Pay will be available to customers, helps users to store all of their credit and debit card details, keeping their methods of payment in one place. And with consumers constantly having their phones with them and this can  be good news for brands who are trying to reach them probably as easy as  a clickable ‘Add to Passbook’ button in marketing campaigns .

Plus, the app will even give brands the chance to build  relationships with the consumers. Customers will no longer need to carry their multiple loyalty cards, and points and rewards will be available to them on their device itself , rather than collecting receipts for the same.

The in-app purchasing process development

For apps that have adopted Apple Pay feature, iOS developers have already started witnessing  that the checkout rates are more than double. Apple has created a much smoother and simpler in-app buying process and consumers can now authenticate payments just with the touch of their finger with the new technology of TOUCH ID. Not only does this improves the user experience on mobile, but it plays a key role in deciding which app needs to be downloaded for time saving functionality. Once downloaded, the app provides another channel through which digital marketers can reach consumers with their messages.

Apple Pay is a big step for the contactless payment industry, and as other brands are in the race to create their competitor technologies, the future of the industry is looking bright. As these new technologies are developed, they will provide more ways for digital marketers to reach their target audiences, and it’s therefore important that brands adopt them as soon as possible to keep up with the evolving landscape of digital marketing.

Results Achieved by “APPLE”

Secure, simple, and even more useful.

Paying in stores have become much easier and safer because of technology. Gone are the days when we used to search for wallets and wasted moments finding the right card. Now we  can simply do so by our credit cards, store credit cards, and rewards cards with just a touch.

Apple Pay is very simple to use and works with the cards we already have on the devices we use every day. And because our card details are never shared when we use Apple Pay — in fact, they aren’t stored on your device at all — using Apple Pay on our apple mobile devices is the safer and more private way to pay.

IMAGE CREDITS : Apple

Leave a Comment Cancel Reply

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

• Digital Marketing Guides
• The Journey of a Digital Marketer
• Social Media Case Studies
• Content Marketing

• Covers all Digital Marketing Techniques

• Digital Media Mastery (with Paid Media Expertise)

Discuss With A Career Advisor

Not Sure, What to learn and how it will help you?

• SUGGESTED TOPICS
• The Magazine
• Newsletters
• Managing Yourself
• Managing Teams
• Work-life Balance
• The Big Idea
• Data & Visuals
• Reading Lists
• Case Selections
• HBR Learning
• Topic Feeds
• Account Settings
• Email Preferences

Steve Jobs, the Immediate Case Study

• Nancy Koehn

In all kinds of places this past week — from Twitter feeds to boardrooms — people discussed Steve Jobs’s career at Apple as a kind of informal but very important case study. This is not surprising, given his contributions to technology and the lasting impact he’ll have on the way we communicate. On the other […]

In all kinds of places this past week — from Twitter feeds to boardrooms — people discussed Steve Jobs’s career at Apple as a kind of informal but very important case study. This is not surprising, given his contributions to technology and the lasting impact he’ll have on the way we communicate. On the other hand, given the currency of Jobs and Apple’s achievements, this is quite rare. John Rockefeller, IBM’s Thomas Watson Sr., and many others have been recognized for their skills as strategists and organizational builders, but we didn’t use them as case studies — at business schools or in conversation — until decades and decades after their deaths.

• Nancy Koehn is the James E. Robison Professor of Business Administration at Harvard Business School.

Partner Center

• Harvard Business School →
• Faculty & Research →
• May 2015 (Revised October 2015)
• HBS Case Collection

Apple Inc. in 2015

• Format: Print
• | Language: English
• | Pages: 30

About The Author

David B. Yoffie

Related work.

• Faculty Research
• Apple Inc. in 2015  By: David B. Yoffie
• Apple Inc. in 2015  By: David B. Yoffie and Eric Baldwin

Apple Branding Strategy and Marketing Case Study

Analysis and examples of apple’s identity, positioning, key messages, tone of voice, brand archetypes, customer benefits, competitors, and marketing content..

Back To The Branding Strategies Homepage

Brand Overview

• Electronics
• Entertainment & Media

Business Type

Physical Products & Software Service

https://apple.com

Target Customer

Premium Technology Users

Primary Need ( Job To Be Done )

Use technology that provides simplicity and style

Brand Visual Identity & Content

Primary brand colors, brand typefaces.

• SF Pro Display
• SF Pro Text

Hero Content

Hero Content Type

Content features people, brand messaging, key messages, benefit or feature focus, tone of voice, brand archetypes.

( Learn More About Brand Archetypes )

Brand Positioning ( Elements of Value )

( Learn More About The Elements of Value )

Aspirational

Self-Actualization

Design & Aesthetics

Brand Benefits

Technology that prioritizes ease-of-use above all else

Modern, stylish, design that satisfies a desire for premium quality and aesthetics

Seamless connection across a family of devices to better integrate into day-to-day life

Competition

Key competitors.

Google, Microsoft, Samsung, Amazon , Dell, HP, Netflix

Get Help Growing Your Brand

Get a 10 page workbook on Purpose, Vision, and Values. Plus resources for Archetypes, Tone, Messaging, and more.

Check your email to confirm your address and receive your workbook!

Apple - The Development Of iEcosystem

Sarika Anand

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Apple.

The Apple logo is very identifiable whether you're walking down a crowded street in a major city or travelling through the highways. Whenever you spot a MacBook, an iPad, or an iPhone, you immediately recognize the logo and know who built it. Apple has accomplished more than just technological domination. The corporation has achieved something that many people strive for: international name recognition and a reputation that will outlast everyone alive today.

The company's tagline from 1997 to 2002, "Think Different," may have contributed to Apple's success. While not always hailed as a triumph, it is the result of foresight in the current competitive market. While many of us possess Apple devices, few are familiar with their history. When did Apple get its start, and how popular was it at its inception? When did Apple become well-known? And why did Apple come so close to going bankrupt? However, such achievement does not happen instantly and is difficult to duplicate. So, what is this mysterious Apple sauce? Let's have a look.

Apple - Company Highlights

About Apple, and How it Works? Apple - Industry Apple - Name, Logo, and Tagline Apple - Founders Apple - Startup Story Apple - Apple without Jobs Apple - The Fall Apple - When Did It Become A Big Name? Apple - Vision, and Mission Apple - Business Model Apple - Investments Apple - Acquisitions Apple - Competitors Apple - Future Plans

About Apple, and How it Works?

Apple Inc. is a global technology company headquartered in Cupertino, California, that specialises in portable electronics, software applications, and internet services. Apple is the fourth-largest personal computer vendor by unit sales, the world's second-most valuable company, the largest information technology company by revenue (totalling US$365.8 billion in 2021) and the second-largest mobile phone manufacturer. Along with Amazon, Alphabet, Microsoft, and Meta, it is one of the five American behemoths in information technology businesses.

Apple Inc. produces, builds, and sells computers and associated computing and communication devices, as well as services, software, networking solutions, and peripherals. Apple distributes its goods through its online shops, retail locations, direct sales representatives, resellers, and third-party wholesalers all around the globe.

The iPhone is Apple's series of cell phones that run on Apple's operating system called iOS. The Mac range of computers is centered also on the business's macOS operating system.

The iPad is a range of multi-purpose tablets from Apple that run on the iPad OS operating system. Apple TV, Air Pods, Apple Watch, Home Pod, Beats products, iPod touch, and other Apple-branded and third-party accessories are included under Home, Wearables, and Accessories.

The Company's wireless headphones that interface with Siri are known as Air Pods. The Apple Watch is the firm's smartwatch series. AppleCare, Advertising, Cloud Services, Digital Content, and Payment Services are among its offerings.

Apple - Industry

The worldwide economy has been severely impacted by the COVID-19 pandemic . Many end-user sectors, including electronics manufacturing, have been impacted. According to data from an IPC study conducted in March 2020, 40% of global electronics manufacturers and suppliers polled anticipate that the COVID-19 outbreak will have the greatest impact on consumer electronics. Another 24% of respondents said that industrial electronics would be the worst hit, with 19% predicting that the automotive electronics category would be the most brutal damage.

Electronic computers, such as mainframes, laptops, pcs, workstations, and software services, as well as computer peripheral devices, are manufactured by companies in this business. Apple, Hewlett Packard Enterprise, Dell, IBM, Lenovo (Hong Kong), ASUS (Taiwan), and Canon (Japan) are the companies that belong to this sector or industry. Annual global unit sales for 2021 hit 340 million units, up 15% from the previous year. With large exports, Europe, Africa, and the Middle East, as well as the Asia Pacific, excluding Japan, led to the rise of this industry. During the projected period, which is 2021-2026, the Electronics Manufacturing Services Market is estimated to grow at a CAGR of 9%.

Apple - Name, Logo, and Tagline

Jobs revealed in his biography written down by Walter Isaacson that he was now on one of his fruitarian diets. He was driving back from an apple farm when he came up with the name for the firm that would transform his life. Steve Wozniak's book, "iWoz: Computer Geek to Cult Icon," confirms this. Wozniak, who drove Jobs home from the airport following that trip, claimed that the firm name came to him during the journey. According to Jobs, the "apple orchard" he mentioned was a commune.

According to Jobs' biography, he believed the name "Apple Computer" sounded "energetic, fun, and not intimidating" - all crucial elements for a firm that intended to transform computing and make it far more approachable. And, that's where the logo came from.

Apple's tagline says, "Think Different."

Apple - Founders

Steve Jobs, Ronald Wayne, and Steve Wozniak founded Apple Computers Company as a business deal on April 1, 1976.

Steve Jobs was the co-founder and former CEO of Apple and Pixar Animation Studios. Jobs attended Reed College in Portland, Oregon after graduating from Homestead High School in Cupertino, California in 1972. He dropped out after one semester and went on to study philosophy and other cultures.

Steve Jobs had a keen passion for technology, therefore he went to work for Atari Inc, a major video game producer at the time. He became acquainted with Steve Wozniak, a fellow designer, and attended Homebrew Computer Club meetings with him. On August 24, 2011, Jobs resigned as Apple's CEO and became Chairman of the Board of Directors. Jobs passed away on October 5, 2011.

Ronald Wayne

Ronald G. Wayne is mainly remembered as one of the co-founders of the Apple tech firm, with Steve Jobs and Steve Wozniak, the company's primary drivers. It was a brief journey compared to the years he spent inventing and manufacturing slot machines and other professional gaming devices. He's a skilled innovator with over a dozen US patents under his belt, covering a wide spectrum of essential concepts.

Steve Wozniak

For the past three decades, Steve Wozniak has been a Silicon Valley star and philanthropist. His design of Apple's original line of devices, the Apple I and II, impacted the popular Macintosh.

With Wozniak's Apple I personal computer, Wozniak and Steve Jobs launched Apple Computer Inc. in 1976. He unveiled his Apple II personal computer the next year, which had a central processing unit, a keyboard, colour graphics, and a floppy disc drive.

Wozniak was active in several corporate and humanitarian endeavours after leaving Apple in 1985, concentrating mostly on computer capabilities in schools and emphasising hands-on learning and promoting student creativity.

Apple - Startup Story

Steve Jobs, Steve Wozniak, and Ronald Wayne created Apple in 1976 to sell Wozniak's hand-built PC, the Apple 1. The Apple 1 was supplied as a motherboard that had a Central processing unit, RAM, and some rudimentary textual-video chips. It had no built-in keyboard, monitor, casing, or other Human Interface Devices at the time.

The Apple 1 was released in July 1976 and sold for $666.66. Only a few weeks after the firm was created, Wayne chose to quit. He accepted an $800 check, which was worth about $72 billion forty years later. Wayne was the one who hand-drew the initial Apple logo, which was later replaced with Rob Janoff's bitten apple symbol in 1977.

On January 3rd, 1977, Apple Computer Inc. was founded. Mike Markkula, who was interested in the Apple-1, gave the team the necessary funds and commercial acumen. Mike Markkula, the third employee, owned a third of the firm. He nominated Michael Scott as the company's first president and CEO because he believed Steve was too young and not responsible enough to handle the role.

The Apple II, designed by Wozniak, was released in 1977. The Apple II computers were able to stay on top of market leaders Tandy and Commodore PET thanks to VisiCalc (the world's first 'killer-app'), a revolutionary spreadsheet and computing software. Because of its office compatibility, VisiCalc provided customers with another reason to acquire the Apple II. The Apple II was able to change the computer industry by introducing colour graphics. Apple had a genuine office with many workers by 1978, as well as an Apple II production sector.

Revenues for Apple doubled every four months in the following years. Between September 1977 and September 1980, their annual revenues increased from $775,000 to $118 million (an average annual growth rate of 533 per cent).

On December 12, 1980, Apple came out publicly for $22 per share. Apple's $4.6 million shares sold out very instantly, raising more money than just about any other IPO since Ford Motor Company in 1956. Steve Jobs , the largest shareholder, gained $217 million from the IPO. The company's IPO also made 300 additional people millionaires overnight.

Apple - Apple without Jobs

As tensions between Jobs and John Sculley, the company's third CEO, developed, Jobs sought to depose Sculley through a revolt, which collapsed. Apple's board of directors sided with Sculley and relieved Jobs of his work responsibilities. Jobs subsequently left his position and started NeXT, a firm that makes powerful workstations. Around the same time, Steve Wozniak sold most of his stock, and left the company, claiming that the firm was heading in the wrong way.

With Jobs gone, the board members were willing to decide what type of computers Apple might create. They chose to sell more costly Macs to high-end clients. Because Steve Jobs was resistant to raising prices, this strategy could not be implemented until after he had departed. They concluded that even if lesser units are sold, profitability will be comparable or greater. This approach was known as "55 or die," and Jean-Louis Gassée required that the Macintosh II had to make at least 55% profit per unit. Sculley hired Gassée to take the role of Steve Jobs.

Although Apple computers were more costly than other computers on the market, they offered advantages such as the UI that attracted customers. In 1991, Apple released the PowerBook laptop with the System 7 operating system. System 7 was responsible for providing the Macintosh OS colour, and it was utilised until 2001 when OS X was introduced.

Apple attempted to expand into new areas throughout the 1990s. Gassée was also involved in the creation of innovative products like the eMate and the Newton MessagePad, with the hope that they would propel the business to an unprecedented level.

Apple - The Fall

When IBM clones became inexpensive and Microsoft's influence grew in the latter part of the decade, Apple's "55 or die" strategy failed. Even while Macs had an extensive software library, they were constrained. On the other hand, Windows 3.0 was on sale for low-cost commodity machines.

Apple intended to re-enter the industry, so they released a new range of devices called the Quadra, Centris, and Performa. Because Apple computers were only accessible by mail or authorised dealers at the time, the Performa was designed to be a stocking item for lifestyle merchants and department stores. Back then, there has been no Apple Stores. Customers, on the other hand, were confused by this since they didn't comprehend the differences among the variants.

Apple has tried portable CD audio players, digital cameras, speakers, TV appliances, and other items, but they all failed. Apple's stock price and market share dropped sharply. To compound the error, Sculley spent a significant amount of time and money porting System 7 to the new IBM/ Motorola PowerPC CPU rather than the Intel processor. Apple had no luck regaining market share since most software was designed on Intel CPUs, which were cheaper.

The Apple board had enough with the very disappointing line of devices and the pricey choice to switch to PowerPC. Sculley was then replaced as CEO by Michael Spindler, a German expatriate who had worked with Apple since the 1980s. Gil Amelio succeeded Spindler as CEO in 1996.

Amelio implemented significant reforms, including mass layoffs and cost reductions. His term was also marred by the shares of Apple hitting a 12-year low. In February 1997, Amelio chose to buy Jobs' NeXT Computer for $429 million, bringing Steve Jobs back to Apple.

Apple - When Did It Become A Big Name?

The iPod, another Apple invention, was introduced in 2001. It was advertised as having thousands of music tracks worth of memory on its 5GB hard drive, which was an astonishing accomplishment for an MP3 player at that very time.

In 2003, Apple launched the iTunes Music Store to augment this. This followed the introduction two years before of iTunes, Apple's digital music software solutions. In 2003, Apple introduced a variant for Windows, and over the next several years, it began moving out to the rest of the globe. The iTunes Music Store was a convenient method for US residents to legally purchase music online; in 2006, it changed its name to the iTunes Store to include video services too. In 2005, Apple computers had Intel chips, allowing them to run Windows. All Apple PC hardware, including iMacs and MacBook Pros, will be Intel-based in the future.

In 2007, Apple Computer Inc. changed its name to Apple Inc. to reflect its expanded product line. 270,000 iPhones were ordered during the first 30 hours after its release, earning it the moniker "Apple's destiny changer."

The debut of the iPhone, iPod Touch, and iPad devices were met with overwhelming success. Apple introduced the App Store in July 2008 to offer third-party iPhone and iPod-Touch software. The App Store sold 60 million apps in a month and generated an average daily income of $1 million. Because of the iPhone's success, Apple became the world's third-largest mobile device provider.

In October 2010, Apple stock achieved an all-time high of $300. On August 24, 2011, Steve Jobs stepped down from his role as CEO owing to health concerns and was succeeded by Tim Cook . Jobs died on October 5, 2011, bringing an end to a great period for Apple and a major shift in the company's history.

Apple, on the other hand, continues to dominate the market with ground-breaking technical marvels.

Apple - Vision, and Mission

Apple's mission is “ to bring the best user experience to its customers through its innovative hardware, software, and services .”

Apple - Business Model

Apple's business model is divided into two parts: products and services. In 2021, Apple earned more than $365 billion in revenue, with $191.9 billion coming from iPhone sales, and $38.3 billion from accessories and wearables (AirPods, Apple TV, Apple Watch, Beats products, Home Pod, iPod touch, and accessories),  $35.2 billion from Mac sales, $31.86 billion from iPad sales, and $68.4 billion from services.

• Products - iPhone, Mac, iPad, as well as wearables, home, and accessory devices, are among the product lines (Air Pods, Apple-Watch and more)
• Services -  AppleCare+, Digital Content Stores and Streaming Services, and the AppleCare Protection Plan, Apple's Cloud Services, Licensing, and other services like Apple ArcadeTM, Apple News+, Apple CardTM, and Apple Pay, a cashless payment service, are all part of the services business.

Apple - Investments

Apple - acquisitions, apple - competitors.

Microsoft, Samsung, Lenovo, Dell, Sony, HP, Xiaomi, Asus, Huawei, and Oppo are the top competitors of Apple.

Apple - Future Plans

Every year in June, Apple has its global Annual Developers Conference, and in 2022, the keynote will be held on June 6. Apple will use the event to debut its next-generation software, which will be available in the autumn.

Apple is said to be developing a folding iPhone with a screen size of 7.5 to 8 inches and a release date of 2023 at the utmost. Apple is reported to be working on interactive virtual goggles with an inbuilt processor, dedicated high-end displays, and a Reality Operating System. The gadget will combine hand gestures, touch panels, and voice activation for interaction, and it is projected to cost around $3,000. In 2023, the AR/VR headset is projected to be released.

Apple is working on upgraded 14-inch and 16-inch MacBook Pro models with M2 Pro and M2 Max processors. The M2 Max processor will include a 12-core CPU and a 38-core GPU, and the new computers will be available in 2023.

The storyline of Apple's electric vehicle research has undergone numerous plot twists, but reliable Apple analyst Ming-Chi Kuo claims that the company is still targeting a completely autonomous automobile, instead of just a technology offering, with a launch date between 2023 and 2025.

Apple - FAQs

What does apple do.

Apple Inc. is a global software company headquartered in Cupertino, California, that specialises in portable electronics, software applications, and internet services

When was Apple founded?

Which companies do apple compete with.

Microsoft, Samsung, Lenovo, Dell, Sony, HP, Xiaomi, Asus, Huawei, and Oppo are some of the companies Apple competes with.

Must have tools for startups - Recommended by StartupTalky

• Convert Visitors into Leads- SeizeLead
• Payment Gateway- Razorpay
• Spy on your Competitors- Adspyder
• Manage your business smoothly- Google Workspace

Summer Heat Spurs Surge in Alkaline Water Purifier Demand

With summer here, the blazing heat has already hit Delhi, reaching the highest maximum temperature in April at 38 degrees Celsius. To keep cool and hydrated, people are rushing to get water purifiers. They are making sure to stay refreshed and healthy in this scorching weather. Moreover, with the rise

Meesho Business Model & Revenue Model

Online purchasing is ruling the market now. With a bundle of e-commerce websites coming into prominence with their wide range of products across niches along with affordable and convenient services for users that can be trusted, purchasing online has become very much a reality. The fact that online shopping websites

Big CIO Show 2024 Paves the Way for Next-Gen Technological Leadership in AI

The 13th Edition of the Big CIO Show & Awards in collaboration with Intel as the Innovation Partner, will bring together a leading group of C-level techpreneurs, innovators, and thought leaders from diverse sectors to deliberate their transitions from business enablers to growth drivers with AI. 15 April 2024, Bengaluru: Slated

GIFT City: Revving Up the Future of Motorsports with a Formula 1 Circuit

Gujarat International Finance Tec-City (GIFT City), located in Gujarat, is on the verge of a monumental addition to its infrastructure that will put it on the global racing map - the development of a Formula 1 motor racing circuit.  With an estimated cost of up to Rs 10,000 crore,