Apple may not be the most profitable company in today's consumer electronics market, but it is surely the envy of others racing in the same track. Whatever comes out of Apple, be it the Ipod, Iphone or Ipad, you may well expect them to set the industry standard and become a shining example for others emulate. Though Apple products always come with a higher price tag, the idea of value-price doesn't seem to work here. Once a new product rolls off the line, consumers would beat others to the punch and fork over the extra bucks. What is special about Apple? Grab any Apple product, you may get an idea. Sleek design, fabulous functionality and sturdiness are the first impression you get. In a manufacturing industry where everything is mass produced, Apple's workmanship and individuality stand out sharply. Behind this high level of craft is an ingenious team led by Steve Jobs, CEO and Co-founder of Apple. Often referred to as a man of creation and a boss running a tight ship, Steve was the one who made Apple what it is today.
Apple's success may also be attributed to its business model. Unlike others who believe that if you do many things at a time, you can't do them well, Apple simply does them all. The company makes its own hardware, operating system, software, consumer-electronics devices like ipod and online service like the I-tunes. Apple believes that only when you have an idea on which piece of hardware your system will be installed and on which system your software will be running, can the company have absolute control over design and production, creating the products that work seamlessly with one another.
So after 35 years since its founding, will Apple continue its legend in the coming years? And what is Apple's business strategy in China?
Ni hao, you're listening to People In the Know, bringing you insights into the headline news in China and around the world, I'm Zheng Chenguang in Beijing. In this edition of the show, we'll take a look at the business strategy of the Apple incorporation.
We are joined by David Yoffie, the Max and Doris Starr Professor of International Business Administration at Harvard Business School, and Sandy Shen, research director for Gartner Consumer Services, with more than 10 years of experience in the IT industry.