This article covers the BCG matrix of Apple.
About the company:
Founded in 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne, Apple Inc. has grown into an American multinational technology company that designs, develops, and sells consumer electronics, computer software, and online services.
Considered as one of the Big Four technology companies, alongside Amazon, Google, and Microsoft, Apple became the first public U.S. company to be valued at over $1 trillion in August 2018.
World’s largest technology company by revenue, Apple also has a high level of brand loyalty and is ranked as the world’s most valuable brand.
Apple boasts a strong product line that caters to a wide customer base
- Apple TV
- Air Pods
- Apple TV+
Out all these products which one falls under what quadrant of BCG matrix, let’s check out.
BCG MATRIX OF APPLE
Before we dig deep into the BCG matrix of Apple, let’s first have a quick look at what BCG matrix really is and what all it covers.
BCG matrix also known as the growth-share matrix is a chart that was created by Bruce D. Henderson for the Boston Consulting Group in 1970 to help corporations to analyze their business units, that is, their product lines.
The BCG matrix is used as an analytical tool that helps the company allocate resources in different business verticals.
Using the chart, analysts plot a scatter graph to rank the business units (or products) on the basis of their relative market shares and growth rates.
CASH COWS: Products/Businesses in low growth markets with a high market share.
STARS: Products/Businesses in high growth markets with a high market share.
QUESTION MARK: Products/Businesses in high growth markets with low market share.
DOGS: Products/Businesses with low growth or market share.
The key feature for the business or product that falls under the cash cow category is that it brings in much more money than the money it burns.
The products/ businesses under this category have a large enough market share that brings in high sales for the organization.
Apple Laptops are the Cash Cows for the company.
Catering to the changing times and customer needs, Apple has invested a huge sizeable amount of money in introducing new product features that would help the brand compete against its competitors and ultimately achieve a sizeable amount of market share.
For instance, With every new launch, Apple tries to do something new with its MacBook that makes it appealing for the target market. Based on these factors, Apple Laptops can be identified as a cash cow for the organization.
Apple’s iPhones are the Stars for the brand. These products have a high market share in a very high growth market.
In this high-paced growth industry, Apple is investing a sizeable amount of its revenue in R&D in its mobile phone business and comes up with an innovative product every year.
Apple iPhone 11 and iPhone 11 Pro are the new launches of Apple in the iPhone category that are most liked by the customers.
Products/Businesses in high growth markets with low market share. The small market share obtained by the organization makes the future outlook for the product uncertain, therefore investing in such domains is seen as a high-risk decision.
For Apple, its the Apple TV and Apple Airpods which can be considered as the Question Mark.
Stiff competition from Big brands as well as other smaller players has added a lot more pressure on the company to gain market share.
Hence Apple TV and Apple Airpods can easily be placed in the Question Marks quadrant of the BCG Matrix
Dogs are those products that were perceived to have the potential to grow but however failed to create magic due to the slow market growth.
Considering the performance of all the products that Apple offers, Apple iPods is one such product that can be placed in the Question Mark quadrant of the BCG Matrix of Apple.
Falling market demand/growth and high innovation in the music-sharing industry have made Apple iPods fall in the Dogs quadrant of the BCG matrix.
Hence Apple iPods can easily be placed in the Dog quadrant of the BCG Matrix
This concludes the BCG matrix of Apple