Apple’s Transformation: Role of iTunes & iOS

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Apple’s Transformation: Role of iTunes & iOS Professor N. Venkat Venkatraman Boston University School of Management IS714: Fall 2014 @NVenkatraman

Transcript of Apple’s Transformation: Role of iTunes & iOS

Apple’s Transformation: Role of iTunes & iOS

Professor N. Venkat Venkatraman Boston University School of Management

IS714: Fall 2014 @NVenkatraman

Music in the 1990s

Music in the 1990s

Hardware

Content

Channel

Consumer Experience

Music in the 1990s: Analog Era

Distinct Layers and

Standard Linkages

Hardware

Content

Channel

Consumer Experience

Digital Transformation in Music

Software [1]

[2]

[3]

Making iTunes Windows-Compatible

January 2001 October 16, 2003 September 2013

‘Open’ ‘Closed’

Capitalizing on the network effects of Windows PCs and Laptops in 2003

Hardware

Content

Channel

Consumer Experience

Apple & Digital Transformation in Music

Software

Digital > Physical in 2012 (USA)

1. Who’s dictating the ‘rules’ now?

2. What are alternative revenue models?

iPod to iPhone

Role of iTunes

iPhone OS iPhone OS 2.0SDK

AppStore

iPhone OS 3.0 iOS 4.0Copy/cut/paste Video recording

Facetime | Folders iBooks, Multitasking

2007 July 2008 2009 April 2010

iOS 5 iOS 6 iOS 7Computer-Free Set up OTA Software Refresh

iCloud | Siri

2011 2012 2013

Maps | PassbookEnhanced Siri & LTE

Auto Update | M7 Chip iRadio | iBeacon

0

225000

450000

675000

900000

July 2008 July 2009 June 2010 July 2011 June 2012 June 2013

#Apps Downloads (Million)

What Next for Apple?

2014