Table of Contents
-------------------------------------------------

Assessment 1 - Case Study Report 1 Question 1: 1 Question 2: 3 Question 3: 4 List of References 5

Assessment 1 - Case Study Report |

Case: “The success of the iPod and iPhone raises the licensing question for Apple… Again”(Source: Chap 1, Page 33)

Question 1:
Use the cyclic Innovation Model (Fig1.9, pg. 30) figure to illustrate the innovation process in this case and provide a brief description.

Innovation is not only invented via technical invention, it also consists of economics, social and cultural aspect as well. Many years ago, innovation was only simple one-way pipelines, but now it’s using a new conceptual approach to innovation, which
After the release of the iPhone 3 in December, Apples market share has increased by 20.9%. However, after launching the iPhone 5, the market share started to drop down dramatically. Johnson (2013) also stated that, the reason to the drop in market share is due to the messy and unpredictable market. The consumers are frequently changing phones and Apple does not distribute the products to other retail showrooms which greatly reduces their selling opportunities.

In the whole year of 2012, Apple shipped 101 million handsets to retailers; while Samsung has shipped over 74 million more handsets than Apple (Mac Daily News 2013). This clearly indicates that there is nearly a 40% decrease in shipment compared to Samsung. According to ABI research (2013) Apple’s market share will peak in 2013 at 22%, unless Apple is willing to cut down cost and the market share will depend only on customer loyalty.

In order for Apple to influence future technology, it will need to keep innovating and creating new products and new markets as per earlier years. Apple could also distribute their products to other retailers in order to promote their product even more and to increase their sales which would increase its market share. Apple should also reduce their cost price in order to stay in the high competitive market.

Another option for Apple is to license its software and/or hardware to other vendors and become a dominant standard which was