BCG Matrix

BCG for Apple Inc.
Student’s Name
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Introduction
The Boston Consulting Group(BCG) is a tool that helps in making a strategic plan for long-term basis in any company. It monitors a company growth and opportunities to see the divisions that are or are not working well. The results form the basis of choice of the brand the company should invest in. The below work shows the BCG matrix for Apple company.
Categories of Assessing the divisions of Apple company
Revenue Profit Market Share position Industry Growth Rate
Divisions Below iTunes 9.19billion 30 percent
Gross margin 44.1% 12% per year
iPhones $38.03billion 43.9 percent Gross margin 15.6 % 10% per year.
MAC computers $5848million 20 percent 7.3% 5.6% per year
iPods $3.39Billion 1.5% 4.38% -10% per year
The Star Division
The division that take the star position has both high market shares and market growth in the industry. They are the units focused by the company to invest in since they easily become cash cows to generate more cash flow in future. However, the star may end up to becoming a cash cow and instead becomes a dogs. These results when the technology advances so rapidly to outcompete the innovative products in the industry. The iPhones versions of the Apple company have an international market penetration. Within the smartphone segment, 15.6 percent of iPhone sold in the world were Apple products between the year 2007 to 2018. The company generated $38.03 billion in revenue for the second quarter of 2018 through iPhone sales.

Following the decline of RIM and the Nokia company, Apple has been one of the luckiest company to be among the top 5 positions. The company has been ranked as position two among all the smartphones companies. This is the leading contributor to Apple Inc.’s revenue a profit margin of 43.9 percent. It has an industry growth rate of 10% per year. This is an indication that the Apple company has a vast market share. Despite that a few challenges on international sales for instance low market in China, Apple has been able to have a large market for iPhone (Fischer, 2008). The iPhone 6 and 6s together with iPhone 8 and 8s and iPhone X has been one as the products that have performed well in the market. However, the new features of the iPhone have been criticized in a way in the market. The smartwatch is another product from the same company that has found a standing position in the market. This can also be classified as a star in the wearable gadget industry which is turning to be booming and a growing industry.
The Question Mark Division
This one incurs a lot of loses and consumes a significant amount of cash since they have a first growing market with low market share. At the same time, this category is a potential star which can end up being a cash cow in future. However, they rarely succeed to acquire the market share and they instead become dogs. They, therefore, require close consideration before investing in them. The Apple products, the MAC computers have penetrated in the market. However, the MAC computer products have not grasped the market position as the competitors have effectively achieved it. They have a market share of 7.3 percent reflects an industry growth rate of 5.6 percent. It makes a 20% profit having collected revenue of $5848 million. The wireless earphones have shown its potential to be accepted in the future. The customers have not welcomed the innovations well since the argue wireless earphone can easily get lost, and therefore customers still prefer the wired ones.
The BCG Matrix for Apple Inc.
-75438035560LowMarket GrowthHigh
00LowMarket GrowthHigh

iPhones
MAC computers

iTunes

iPods
53364-514861600
887095320040HighMarket ShareLow
00HighMarket ShareLow
11938023431500
The Cash Cow Division
This category has the most market share and the less market growth (Mohajan, 2017). This is especially true due to high income it brings to the company. The profit made through it needs investment into the star so that future growth can be realized. Among the various products that Apple Inc. has made, iTunes can be regarded as the cash cow for the company. The customers prefer the iTunes for downloading and accessing the digitalized music. It has a market share of 44.1% which is the leading division of Apple Inc’s. It has recorded a percentage profit of 30percent. This is through a total revenue contribution of 9.19billion. It has an industry growth rate of 12% per year. Even with other means that can be utilized in downloading and accessing the music, iTunes has instead acquired a dominant position in the market. As observed in 2013, the market share of iTunes was more than 60 percent meaning which top position. Over 44 million people in the USA alone has used the iTune at least once to access the digital music. This industry has already matured, and there few chances left for it to expand. However, it continues to bring more income now and in the future.
The Dog Division
This category has low market growth in a low market share. They are not advisable to invest in since they have negative cash returns and generations. However, some become profitable for sometimes after which they prevent further movement of the competitors. The iPods have remained popular in the market for a long time (Butler,2011). However, the iPods have reduced the popularity recently due to some recent ships in the market. It has a low market share of 4.38% making a small profit of 1.5percent. The industry growth rate is reducing at -10 percent every year hence not a good option for investment. It has a low revenue collection of 3.39 billion per year. Cloud storage, ability to stream the music online and the availability of Android phones for storage have made iPods less popular. This has acted as the basis of the Apple company to invest in other areas since the iPods have gone out of taste in the market. After it was launched, there was a high market demand that placed iPods into the cash cow.
References
Mohajan, H. (2017). An Analysis of BCG Growth Sharing Matrix.
Butler, M. (2011). Android: Changing the mobile landscape. IEEE Pervasive Computing, 10(1), 4-7.
Fischer, L., Staffieri, A., & O’Rourke, J. S. (2008). Apple, Inc.: Pricing the iPhone (B). doi:10.4135/9781526404190