About Apple and iPhone
Apple Inc. is a consumer technology company- founded by Steve Jobs, Steve Wozniak, and Ronald Wayne- that engages in the designing, manufacturing, and selling of iPhone, iMac desktops, MacBook notebooks, iPad tablets, AirPods, Apple TV, and Apple watch (Forbes, 2021). In addition, it provides services such as an iOS operating system for mobile devices, macOS operating system for notebooks, tvOS operating system for Apple TV, watchOS operating system for Apple Watch, iTunes for digital content services, Apple Pay digital payment service, Apple Music for online multimedia streaming, and Apple News (Business Standard, 2020).
Geographically, Apple operates retail locations in 25 countries – and this has benefited the company’s marketing approach which boasts 900 million users and over 1.65 billion Apple devices across the globe(Kastrenakes, 2021). Hence, in 2021, Apple was valued at over $2 trillion and with a revenue of about $365 billion in 2020 (Curry, 2021). This is a significant growth compared to what it was in 1997 where it had 8,000 employees and grossed $7 billion in revenue.
Apple is renowned to be an innovation leader, marked by its recognition as the most innovative company in the world according to the Boston Consulting Group(Ang, 2021). While Apple has remarkable products, the iPhone stands out in terms of product innovation, market adoption, and revenue generated since its release. The iPhone combines the features of the iPod, computer, digital camera, and mobile technology into one device with a touchscreen interface (Kerner, Provazza, & Andrew Froehlich, 2021); and with the in-built capacity to support internet connectivity, web browsing, and Bluetooth. It runs on the proprietary iOS operating system offering diverse kinds of large storage and camera-pixel capability.
The iPhone is the most successful product of Apple as it contributes majorly to the company’s revenue(Vailshery, 2021). In 2020, 196.9 million units of iPhones were sold and this translated to revenue of $137.7 billion(Curry, 2021); and in the first quarter of 2021, the revenue from iPhone is $47.9 billion accounted for 53% of Apple’s total revenue(Walsh, 2021). This performance clearly exceeded Apple’s other products in 2020 such as iPad selling 71.1 million units, and a revenue of $31.8 billion; Mac with 20.2 million sales and $35.1 billion revenue (Curry, 2021); and iPod with 114 million sales and revenue of over $6 billion (Pound, 2019). Clearly, this reveals that the iPhone is a strong product in Apple’s business categories.
These sales by iPhone are driven by the varying model of the product available; and these are conventional iPhone, Mini, Pro, and Max which are priced differently and aimed at appealing to different consumer segments based on their purchasing abilities. Over the years, Apple has launched improved models which built on functionalities in earlier models. So far, the models are: iPhone 3G (2008), iPhone 3GS (2009), iPhone 4 (2010), iPhone 4s (2011), iPhone 5 (2012), iPhone 5s and iPhone 5c (2013), iPhone 6 and iPhone 6 Plus (2014), iPhone 6s and iPhone 6s Plus (2015), iPhone SE (2016), iPhone 7 and iPhone 7 Plus (2016), iPhone X, iPhone 8 and iPhone 8 Plus (2017), iPhone XR, XS and XS Max (2018), iPhone 11, 11 Pro and 11 Pro Max (2019), iPhone SE (2020), iPhone 12 mini, 12, 12 Pro and 12 Pro Max (2020), iPhone 13 mini, 13 Pro, and 13 Pro Max (2021) (Hristov, 2021).
However, sales could have increased much more but for increasing competition and consumers’ peaking utility that causes holding on to current phones longer than expected, aided by software upgrade provisions from Apple.
Assessment
This work utilized secondary data obtained online to discuss the innovative approach in iPhone by Apple. The materials covered include those released as articles by renowned websites, research papers focused on Apple, case studies about Apple and/or iPhone available for the public, reports, and publications that implicitly, or explicitly, talk about iPhone. These ensured the findings are robust by providing a well-rounded perspective on the accuracy of the findings based on the reviews of multiple stakeholders on the company and the product category under-studied.
iPhones’ Incremental Innovation from Technology Perspective
The evolution of the iPhone is built on two strategies: new product innovation and incremental improvement. The phone started with one model in white and black in 2007 but has churned out over fourteen models of varying colors in the past decade(Lyytinen, 2017). While there were mobile devices before iPhone’s launch, Apple improved on them significantly by increasing their own screen size, creating a multi-touch interface, and innovating an on-screen keyboard (Hristov, 2021). This componentry made the iPhone to be named an omnibus three-in-one product: a technological combination of an iPod music player, conventional smartphone, and Internet communication.
Technologically, iPhone has created breakthrough innovations in the product lines, and these have been incrementally upgraded for consequent newer models. These include enlarged screen size and resolution, customized operating system, finger-controlled interfaces, internet connectivity with a built-in capacity to be integrated with local emails and web-browsers, video recording capability, enlarged storage capacity, light sensors, on-screen keyboard, mobile applications, iPod music, and video player with support for iTunes. Over the years, Apple launched improved models which built on these functionalities.
The first iPhone mobile device released in 2007 had Apple’s operating system, Safari web browser, iPhoto, and email services such as Internet Message Access Protocol and Post Office Protocol 3. The first second-generation iPhone, named iPhone 3G and 3GS and released in 2008, had more functionalities: they could connect to 3G mobile networks, support Microsoft Exchange email, had mobile security features that could connect with corporate networks, the improved storage capacity of eight and six gigabytes, GPS, and Bluetooth system that supported wireless earpieces.
However, the device could not support technologies such as Flash, Java, Multimedia Service (MMS), stereo audio, laptop tethering, and File Transfer Protocol(Hristov, 2021). These limitations were partly improved in the newer version; in addition, they had the capacity to copy-and-paste and expanded software development kit that allowed developers to create in-app purchasing features. Overall, this newer model was a gradual improvement that was faster than the first, had better Internet connectivity, improved camera, and more storage capacity.
These previous improvements were further built on in 2010 and 2011 when Apple launched the iPhone 4 and iPhone 4s. These new devices featured an improved camera with a retina display and a higher pixel density of 640 by 960 pixels resolution; front-facing camera for selfie; improved video recording of 720p HD; smaller, micro-SIM card slot; secondary microphone for cancellation of noise; multi-access connectivity to varying cellular network carriers; new glass-and-metal design; dual-core chip, 8-megapixel camera, iCloud (a cloud storage solution), iMessage (for text and multi-media technology), and a smart voice assistant called Siri.
From 2012 to 2013, Apple further improved on the products by introducing iPhone 5, iPhone 5s, and iPhone 5c. Here, Apple started a backward integration strategy by designing chips itself with the aim to optimize performance and control design. Notable improvements that these new models bear are enlarged screen size from 3.5 inches to 4 inches; increased aspect ratio to 16:9 from 3:2; increment to screen resolution to 1136 by 640-pixel resolution; support for 4G LTE (Long-Term Evolution); enhancement for 5GH 802.11ac Wi-fi band; improved color display; 64-bit dual-core chip; touch ID for fingerprint biometric identification; and introduction of the plastic casing at an affordable price. Furthermore, the new products had new applications: native Maps and Passbook for storage of digital credit cards.
In 2014 and 2015, iPhone 6, iPhone 6 Plus, iPhone 6s, and iPhone 6s Plus were released. These new models significantly improved on the older versions: increment of the screen to 4.7 inches with a resolution of 1334 by 750 and 5.5 inches with the display of 1920 by 1080 resolution; thinner and more durable aluminum body; better camera with auto-focus capability for videos and pictures; increased memory capacity to 64GB and 128GB; 3D Touch; improved recording ability to 4K video shooting, increased time limits, and editing possibility; introduced live photos for recording a short video and still image.
In 2016, iPhone 7 and iPhone 7 Plus were released. The improvements that came with these were water-proofing capacity, a 12-megapixel dual-camera system, the introduction of a telephoto lens for zooming-in photographs, improved video stabilization, and improved displays that featured DCI-P3 mode that ensured contents look more beautiful and appealing. In 2017, iPhone X, iPhone 8, and iPhone 8 Plus were released. These new products introduced OLED display and Face ID functionality, glass back, wireless charging, a bionic chip with a neural engine, and an improved storage capacity of 256GB.
In 2018, iPhone XR, iPhone XS, and iPhone XS Max were introduced into the market. These products functioned on previous and new innovations of gesture navigation, Face ID systems, AMOLED displays, dual camera systems, telephoto lens for 2-times zoom, and LCD screen technology. In 2019, iPhone 11, iPhone 11 Pro, and iPhone Pro Max. These products were like the ones released in 2018; however, the major changes with them are with the new ultra-wide camera that made it possible for the users to take landscape photographs and take pictures in tight spaces; inclusion of Wi-Fi 6 wireless chip for better Internet connectivity speed. In addition, these new products were slightly thicker, had stronger and better battery life, and Night Mode function that made taking pictures in very dim light possible.
In 2020, Apple released iPhone 12 Mini, iPhone 12 Pro, and iPhone 12 Pro Max. The designs of these products had flat sides, slim bodies, and 5G mobile data chipsets for connectivity, and with technical functionality to revert to LTE networks in case of unavailability to save battery. In 2021, iPhone 13 mini, iPhone 13 Pro, and iPhone 13 Pro Max were released. The major improvements are in the battery life with up to about 20% improvement; photographic styles on the front camera for color contrast control; and cinematic mode capable of recording 1080p video among others.
There are projections for 2022 through 2024 to feature newer models like iPhone 14, iPhone SE 3, iPhone 15, and foldable iPhones. These would be marked by improved telephoto and ultrawide camera, 10 GB 5G modem and antenna system, Android-style hole-punch camera design, better face, touch, and fingerprint ID technologies, 4nm A16 chip, slimmer rear camera and lens, cooling system, and periscopic camera which would altogether enhance performance and power efficiency(Charlton, 2021).
Drivers of the Incremental Innovation
The improvements in the iPhone models over the years are rooted in Apple’s innovation culture. The company ensured it deployed human resources to support the company’s strategic objectives through the alignment among innovation strategy, corporate culture, and internal company structure. These have fostered innovative thinking in the technological design of each improved iPhone model(Livescault, 2019). There are three significant components of the innovation culture in Apple with respect to creating iPhones: organizational structure; leadership characteristics traits; and customer-centric attitude.
Organizational Structure
The continuous technology innovation demonstrated by iPhone is significantly impacted by the co-founder, Steve Jobs, whose vision for iPhone was a product unparalleled to any mobile device. This was shown in his relentless drive to its success from a market and technological point of view - and supported by sustainable internal restructuring.
The organizational organogram and the corresponding leadership delegations have played significant roles in supporting iPhone’s technological innovation success. In 1997, Steve Jobs combined all the departments into one functional organization whose model prevented the leaders from being boxed in departmental functions that affects the overall understanding of business domains. The improvements Tim Cook implemented when he took over as the CEO after the demise of Steve Jobs, including splitting the hardware function into hardware engineering and hardware technologies. He further added artificial intelligence and machine learning as a functional area, and then moved human interface from software. This, he merged with industrial design thereby creating an integrated design function.
This model made the leaders be cross-functional and versatile thus competent enough to collaborate because they are knowledgeable about details (Podolny & Hansen, 2020). This is expedient for two fundamental reasons: first, within the mobile industry, the rate of disruption and innovation is very high – thus, Apple required the technical expertise of people with deep knowledge to lead the innovation curve; and second, when making decisions, the focus is on superior innovation and performance for market domination, rather than on saving costs or making profits.
Leadership Traits
In choosing leaders within the company, three leadership attributes are usually considered: deep expertise for productive engagement within their individual functions; immersion in the details of those functions; and desire to collaborate, contribute, and debate in other areas during collective decision-making (Podolny & Hansen, 2020). Apple is structured for experts to lead experts: for instance, software experts manage software engineers and in similar fashions across other functional units and specializations.
A pertinent example is Roger Rosner, the functional Head of the Software Application Business. In this role, he manages work-productivity applications such as Pages, Numbers, Keynote, GarageBand, iMovie, and News(Podolny & Hansen, 2020) which are apps for word processing, spreadsheets, presentations, music composition, movie editing, and news content respectively. Prior to this role, he had served as Senior Engineering Manager, Director of iWork applications, Vice President (VP) of productivity apps, and the VP of applications since 2013. Through these roles, he had developed significant expertise and experiences needed to lead a team of other experts. Within the camera division, this approach is also demonstrated. The unit is led by Graham Townsend, a camera expert, who leads about 600 experts on camera hardware technology across the product lines.
In addition to deep expertise are the senior leaders’ trained abilities to drill down into details. A notable example is in producing the rounded corners of iPhones. Contrary to the conventional method of connecting the perpendicular sides of a rectangular object with an arc of a circle, the Senior Product Leaders insisted on the continuous curve which demanded the Operations Leaders commit to precise engineering that is not transitioning from straight to curve(Podolny & Hansen, 2020). These instances show that expert leading experts foster productive thinking, cross-learning from one another, problem-solving, and innovations refining.
The collaborative culture in Apple has fostered technological innovation. Within the company, there are hundreds of specialist teams – and many of them come together when creating an essential component of a new iPhone model. For instance, when the iPhone models with dual-lens camera and portrait mode were to be designed, there were collaborations among specialist teams from camera software, camera sensor design, motion sensor hardware, core motion, video engineering, and reliability engineering teams. Thus, Apple places importance on effective collaboration, both to attain and remain in a leadership position.
In 2009, Paul Hubel, Chief Scientist of Camera Technology, demonstrated this collaboration when he had an idea to create a feature that could portrait pictures while blurring the background. While there were initial successes, there were many tough discussions among the camera team and others about upholding Apple’s strict engineering standard of no artifacts. The debate caused the engineering teams to bring the senior design and marketing leaders into the discussion thus creating a reassessment of the zero-artifacts standard of Apple. Another debate that ensued was the option to preview a portrait picture with a blurred background. The status quo was blurring effects could only be seen after photographs were taken but the Human Interface (HI) Design Team opposed and insisted on the option for live preview. This ensued a collaboration between the video engineering team, low-level software, camera operations, and control sensor teams and eventually resulted in success.
These leadership traits that spring up innovations in iPhone are reinforced through the weekly executive meetings that involve all the operational heads of Apple(Frey, 2021). Since the time of Steve Jobs, the management meeting was institutionalized for open discussion and a rigorous debate focused on product planning and strategic development. These helped to develop the best ideas by ensuring all relevant departments needed on a new project are early on in the process. The meeting ensured to keep the future in focus by questioning one another on the new things to develop and what each product should do next. These meetings instigate a sense of shared vision, centralized control, and prevent divisions among the different departments through aligning focus and bringing everyone up to speed (Frey, 2021).
This model is sustainable because of the human resources strategy that entails a rigorous hiring process that focuses on the expertise needed to make a substantial contribution to innovation (Kate, 2020). This helps bring a fresh perspective in solving problems and developing new solutions. One way this is possible is because of the freedom employees have in considering fresh approaches to complex problems in the previous models released. This allows for flexibility in the processes. However, while there is autonomy to conceptualize great incremental innovation ideas, the management curtails these by saying no to ideas that do not align much with the corporate objectives at given periods to prevent risks of spreading resources too thinly.
Customer-centric Approach
Apple combines a binary approach to its customer-centricity: internal discussions about how to improve customer experiences, and listening to customers through numerous touchpoints, and adapting to the results of their feedbacks. This is evidenced in Apple being ranked top-three company in service hall of fame and with 83.4% of the iPhone users claiming their next device would be an iPhone(Frohlich, Stebbins, & Comen, 2016). The company is strongly focused on how to enrich people’s daily lives and, thus, continues to listen strategically to its customers (Anastasia, 2020). The approach entails developing products that incorporate the needs of humanity into them; and by this, Apple, in designing iPhones, starts with the customer experiences and then works backward on how to achieve them with technology.
In getting feedbacks, Apple deploys multiple approaches such as market research, survey emails to customers after purchase in its store, customer satisfaction rating, and listening to comments on social media about the products and services. In addition to this, in the United States, Apple leverages on its over 28 customer service call centers- with more than 19,000 inherent employees who ensure quality assistance- to ask customers about their experiences(Frohlich, Stebbins, & Comen, 2016). Cumulatively, this focus has consistently driven the company to find new ways of improving products, finding new functions that would meet needs, imagining new benefits to give to customers through the development of newer models, and working on previous technical issues to birth innovative solutions(Livescault, 2019).
In terms of technological design, there are three notable examples that have shown Apple’s commitment to customers’ experience. First, the iPhone’s camera through continuous incremental innovation from 2007 till present upgraded high range imaging, true-tone flash, optical image stabilization, dual-lens camera, portrait mode, portrait lighting, and night mode which are aimed at helping consumers capture cleaner and better pictures (Podolny & Hansen, 2020). The second is the iPhone 13 which presents the features that consumers care about, like 5G, better cameras, and improved battery life(Peterson, 2021).
Having noted the limitation of iPhone 12, iPhone 13 was designed to better support the 5G network, have improved battery life, and more enduring video playback (which in this case is 28 hours, the longest of all iPhone models). Also, the installment payment structure for owning an iPhone is 8 to 26-percent lower compared with the iPhone 12. Lastly, the development of iOS 15 whose new features are aimed at helping users to reduce distraction, finding focus, staying connected, exploring the world, and share their experiences in real-time(Saunders, 2021)
Conclusion and Recommendation
For the smartphone market projected to double in the next few years, tendencies for all mobile phones to become smartphones, and consumer attitudes becoming upgrading phones very regularly (Dilger, 2013), Apple needs to uphold the culture that has enabled it to dominate the smartphone market with its iPhone products if it would still remain a market leader. To do this, it is important for Apple to consider how to better leverage its cultural norms of deep expertise, attention to detail, collaboration, and hiring smart people in strategic positions. There are two ways to do this: enhancing the efficiency of senior leaders and unlocking the abilities of junior team members.
First, it should consider how to better engage the senior leaders who have garnered sufficient technical expertise and knowledge. For instance, Apple should consider moving senior leaders into new responsibilities outside their original expertise. This will allow the leaders to grow their teams through teaching them their craft, delegating their works, and transferring their expertise. This way, Apple will continue to innovate.
Second, Apple should monitor trends and consider how to cut costs for consumers. For instance, there are projections that the future of smartphones is modularity, smart glasses, ambient computing, foldable-- with special concerns on price and durability in the screen, hinges, and other moving parts susceptible to dust and water (Bohn, Johnson, & Welch, 2021). One way to do this is through consistent investment in R&D and enabling the intellectual development of the team in unlocking their innovative abilities for products that are easy to use and that meets customers’ needs.
