Apple & its Ecosystem 2

Apple would like to Partner more

• Let’s have a look at this problem intrinsic to Apple (being a hardware company) and it’s DNA … 
• Let’s not forget late Steve Jobs was envious of Microsoft’s Partnering capability!

Apple's Cash Pile

http://www.investopedia.com/articles/fundamental/03/062503.asp

1. Obviously there are better returns in other potential investments for Apple than a mere 4% !!
2. So not efficient and there is wastage here

Apple needs to keep churning out devices

1. Don’t want to run out of Cash or else it’s all over!
2. Room for Innovative Insurers and Financiers to work with Apple. 
3. Apple Financing & Insurance is not for any other company either – and unique to Apple
4. Insurance for the Plant 
5. Finance for the Plant 
6. And then Apple can go and spend the Cash Pile on investments which give a higher return!!

Tiered Security by finding a Security Partner

1. Some high profile examples:
1. Celebrity Sex Photo Hacks
2. FBI requesting key of Apple
3. Two (2) (or more) – levels of Security could solve this problem – Premium Security
4. Preferably a Security Partner in the wings as not a core business of Apple - Apple is a mobile or hardware company
5. Again this is ~ Selective Sharing

Apple Cloud

• Only key data needs to be kept in Apple Data Centres (iCloud)
• Find my iDevice
• Apple Contacts
• Non – core should not clutter premium Apple Cloud Space (e.g. iOS versions of Office which automatically sync to the Cloud)
• That is Cloud that is tightly integrated to the data on the device
• Apple is NOT a Public Cloud company

De-clutter Apple Shop

• Headphones -> Beats ?? – an audio jack but it’s all about data transfer protocols now! 
• Ditto for Speakers, Ear phones
• Cases, Charges are also easily sold by eco-system
• Waste of precious space & time
• No need to clutter Apple Shop - keep it clean & roomy!
• No need to sell Drones in the shop – not sure if Apple’s best interest is served – don’t believe average iOS or Mac customer would purchase a drone

Apple Partnering with Watch / Jewellery shops

• Tinting Screens
• Engraving
• Band Repairs
• Battery Changes
• Cleaning
• Jewellery Insurance
• Sale & Delivery
• Gold Valuations
• Second hand & refurbished jewelry

…

Now an added Security Element especially with more expensive watches $2k - $25k

• Jewellers have had years of dealing with theft – know security break-ins and hold ups – hindsight of experience
• Apple does NOT Much, much higher target for theft than iPhone or a MacBook Air
• Apple at the very least needs Security advice, if not physical Security Partners

Finally subcontracting Genius Bar Repairs out to 3rd Party Mobile Phone Fixers!

• They are very competitive!
• Good for Out-of-Warranty Repairs
• Would be nearly impossible to accurately forecast break and fix
• Customers do not need to wait
• Reduce Genius Bar wait times ** IMPORTANT **
• Admittedly issues for Apple & Subcontractors to work out

Apple & Developing an Ecosystem

If Apple were to Partner with financial Partners more:

• Business Rental Plans with a financing Partner
• Salary Sacrifice Partner
• Refurbished hardware Partner 

This would allow for business Customers among st other things:

1. Latest devices – useful for businesses as they can deduct against revenue but usually prohibitively expensive for most consumers
2. Perpetual Revenue to SPLA Revenue 

Of course Apple already has and should seek to nuture:

• Ever-growing, diverse and thriving array of accessory makers …
• Strong broken and refurbished device ecosystem …
• Investors into the Apple shops [Apple will not traditionally ‘franchise’ as such …]

The App store (of course) is an example of (a) successful ecosystem – partners whom developed the apps, investors whom saw the potential, customers who bought the apps!

Apple really should look at a unique way of 'franchising' its shops particularly in Australia!

Here's some excellent locations for Apple shops that don't already have shops!

Darwin
Northern Territory Government terms might not be acceptable for Apple, especially with regards to Police, Education etc ...
Good location due to Kakadu

Alice Springs
Northern Territory Government terms might not be acceptable for Apple
Good location due to Uluru

Cairns
Close to Barrier Reef and other tourist locations

Broome
Another great tourist location

Castle Hill
?? Not sure why they put an Apple Shop here ??

Other good locations in Regional Australia
This general Regional Area is certainly under-represented for Apple presence.

Locations of Apple Shops (NZ)

• Additionally Apple Shops in New Zealand have been slow to rollout.