The hidden cost of Apple’s Business Model

April 3rd, 2012 by Patrick Stähler

Apple is the poster child of business model innovation. Apple has reinvented several business like music with itunes and the ipod, the telecommunication industry with its iphones and currently, the publishing/news/information industry with the ipad. But success is also associated with costs we should consider.

Apple has a market capitalization of 576.79 billion USD. There are 43’400’000 search results at Google when you look up Apple Business Model Innovation. Apple is the household name for innovation for sexy products and services for which people camp in front of stores to be the first to get the latest gadgets.

But it is also interesting to look at the cost associated with Apple’s success. Take a look at infographics made by mbaonline.com.

5 Responses to “The hidden cost of Apple’s Business Model”

  1. alfonso Says:

    Really, you as a BM Specialist share this nicely done infograph that doesn’t identify IMHO any specific cost of the apple products. In fact it could be applied to many electronic devices, couldn’t it?

  2. james Says:

    this is complete crap. attributing a regulatory failure to the most popular product is sheer link bait.

  3. Patrick Stähler Says:

    James, you have a short sided view on the world. You can not blame regulatory failure on this. Firms have to go beyond regulation in the long term. It is up to Apple to control better its supply chain. You can not be shiny company and have some dirty suppliers. However, as Alfonso has pointed out it is the problem of the whole smartphone industry and of us, the users.

    If you want to have more background information, check this article by brand eins, a German magazine. Thanks to Daniel for the tip.
    And a youtube movie http://www.youtube.com/watch?feature=player_embedded&v=5cL60TYY8oQ

  4. Peter Linder Says:

    Patrick, I have written a similar piece on the model in a broader context http://bit.ly/HypBEU

  5. invoice fanancing Says:

    Apple has belatedly answered many of these accusations, merely responding is the last thing many expected of this pioneer in its field. It may be breaking new ground with its technological innovations, but appears content to react rather than lead when it comes to the environmental and social impact of those products.

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