Apple Inc. in 2018

David B. Yoffie; Eric  Baldwin

Case | HBS Case Collection | May 2018 (Revised December 2019)

Apple Inc. in 2018

Abstract

Many observers worried about what would happen to Apple when Steve Jobs died in 2011. But Apple had performed above everyone's expectations in Cook's six years as CEO. Apple's core business—the iPhone—continued to deliver spectacular results. In addition, Cook was aggressively introducing new products, ranging from Apple Watch to HomePod. Cook also had the world's biggest balance sheet to invest in new technologies and markets. The total number of products in Apple's portfolio had doubled (from roughly 20 to 40) under Tim Cook. The question for Cook in 2018 was no longer, “can Apple thrive without Steve Jobs,” but rather “can Apple move beyond a one-trick pony (iPhone)?”

Keywords: Strategy; Technology; Competitive Strategy; Corporate Strategy; Technological Innovation; Competitive Advantage; Computer Industry; Telecommunications Industry; Technology Industry;

Language: English

Format: Print

30 pages

Educators Purchase

Citation:

Yoffie, David B., and Eric Baldwin. "Apple Inc. in 2018." Harvard Business School Case 718-439, May 2018. (Revised December 2019.)

In the summer of 2016, wearables “wunderkind” and Pebble founder and CEO, Eric Migicovsky, was pleased with the young startup’s success in the five years since its founding. The Silicon Valley–based company had recently shipped its two millionth smartwatch; held the record for three of the four highest Kickstarter campaigns ever (raising cumulatively over $40 million on the site); launched its first non-watch product dubbed a “wearables game changer”; and enjoyed a loyal customer base, particularly among technology early adopters and the community of software developers that created applications and watch faces for its products. Nonetheless, the young company faced a variety of challenges. The nascent smartwatch industry recently saw a dramatic uptick in competition. Apple had introduced its smartwatch the prior year, other established technology companies such as Samsung and Motorola offered smartwatches, U.S.-based fitness tracker Fitbit had recently launched its first smartwatch, and Chinese firm Xiaomi was soon to release a low-priced smartwatch. Migicovsky considers an array of strategic options as he looks ahead.

By early 2018, voice-controlled intelligent assistants had become a major new front in the battle between the giants of the technology sector. "Voice War" focuses on Alphabet’s strategy for Google Assistant, its entrant in the voice assistant space, and asks how the voice assistant should fit in with Alphabet's larger portfolio of products and services. While the mobile phone was the major platform for Google Assistant, Alphabet had recently introduced a range of smart home speakers to challenge first-mover Amazon’s Echo of devices, which were powered by its intelligent assistant, Alexa. Google also faced competition from Apple, whose intelligent assistant Siri had long been a staple of its mobile devices, but which introduced a smart home speaker in early 2018. Other competitors included Microsoft and Samsung, along with Chinese players Tencent, Alibaba, and Xiaomi.

The case explores Ripple CEO Brad Garlinghouse’s mission to disrupt the global payments industry by leveraging the cryptocurrency XRP. Students will learn about Bitcoin and the blockchain industry, as well as Ripple’s unique crypto business model. The case provides an opportunity to navigate the areas of distributed technology, platforms, regulation, and global payments, from the perspective of a San Francisco software startup with over $20 billion in digital assets.

Faculty & Research

Apple Inc. in 2018

Abstract

Citation:

About the Author

More from the Author

Faculty & Research

Apple Inc. in 2018

Abstract

Citation:

Related Work

About the Author

More from the Author