Companies are organizations that generate profits. It is often said that it is not easy for organizations to change. What can companies do when change is urgent? Replacing the highest ranking person can be the solution. Unlike a nation, a company can change many things just by changing the CEO.
Apple is changing. Steve Jobs has showed off the iPhone and iPad, and Timcook has made the most of it. Thanks to this, Apple has become one of the best companies of IT industry. However, as the smartphone market matured, Apple's sales and operating profit growth slowed.
Apple seems to take this situation seriously. Key executives who have been successful in Apple have been preparing to leave.
First, designer Jonathan Ive, who is famous for ‘minimalism’, plans to leave Apple in the second half of 2019. He joined Apple in 1992 and has worked for 27 years. Jonathan Ive plans to set up a design company called ‘LoveFrom’ after he left Apple. At Apple, Vice President Evans Hankey and Vice President Alan Dye will be responsible for the design.
The background of this change is the conflict about design. Apple takes product design very seriously. Because of this, some of Apple products are introducing the latest technology somewhat later. Jonathan Ive made 'Apple Watch' as an accessory. However, the sale of the ‘Gold Apple Watch Edition’($ 17,000) was discontinued. 'AirPower' was not released due to the problem that the device was not charged properly due to severe overheating.
Apple is going to sign a design outsourcing contract with a company that will be founded by Jonathan Ive. However, it is unlikely that design will be top priority. Because, he won’t be a executive of Apple at that time.
Chief Operating Officer Jeff Williams is now attracting attention as leader of Apple. Jeff Williams led the development of ‘Apple Watch’, and now he is responsible for Apple's product design. He became the second most important person in Apple.
Apple is likely to release conservative products for the time being. However, the part that is expected to change is high-price strategy. The high-priced strategy has been successful for Apple for some time. However, as smartphone market growth slowed, profit declined.
Jonathan Ive tried to overcome this by raising prices by applying luxury design to existing Apple products and launching expensive products such as 'Apple Watch'. However, as seen in the recent controversy about Mac Pro, users who used Apple's products have also responded negatively to the high-priced strategy.
While Jonathan Ive is scheduled to leave, Apple is likely to reconsider its high-priced strategy. They can also use strategies that maximize revenue by delicately dividing users. For example, they can launch low-cost iPhones, mid-range iPhones, and high-end iPhones. Products such as 'Apple Watch' may seek to expand the market by lowering prices.
In any case, it seems clear that Apple will change their strategy. Let's see what kind of changes Apple will make.
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