Apple Bcg Matrix

Products:

• Mac OS X (Question Mark)

o Relative Market share: 8.5%/88.68% Microsoft Windows = .09

o Growth rate: 31.7%

• Mac software (Question Mark)

o Relative Market share: 9.63%/88.68% = .1

o Growth rate: 32%

• Ipod (Star)

o Relative Market share: 71% market share/11% SanDisk = 6.45

o Growth rate: 28%

• iPhone (Star) … smart phone

o Relative Market share: 28% market share/RIM blackberry 41% = .68

o Growth rate: 48%

• Itunes (Cash Cow)

o Relative Market share: 82% market share/Naptser 3% = 27.33

o Growth rate: 7.6%

With Apple’s diversified product line, the BCG matrix becomes an invaluable analytical tool. The graph above provides guidance for future decisions in resource allocation. The BCG matrix shows that overall, Apple has a strong portfolio. The company shines with it’s Cash Cow product iTunes, Star products such as iPhones and iPods, and Question Mark products, such as Mac OS X’s and Mac software.

The placement of the Mac OS X’s product line and the Mac software in the Question Mark category shows their potential to either gain market share or degenerate to the Dog category. In both cases, current statistics show high growth rates and low relative market shares. The Mac OS X boasts a growth rate of 31.7% with a relative market share of .09. Mac software fares similarly, with a growth rate of 32% and a market share of .01. This rapid growth means the products consume more than they generate, thanks to their low market share. Such low market shares might suggest that Apple divest itself of its computer business and focus on it’s rapidly growing Star products. However, it is obvious that the market synergies created between their computer business and it’s other products are invaluable and that divesting the Mac OS X and Mac software lines would only be likely to hurt it’s Star and Cash Cow products.

The iPod and iPhone product line fall under the Star product category, indicating both a strong consumption and...