However, the company has been able to fare well in the international market. There have been some issues with the sales of iPhones in the international market, specifically lower sales in China (Reisinger, 2016). Among the manufacturers of smart phones, Apple has been ranked at the second position, indicating the high market share possessed by the company. In the android phone industry, Apple has been renowned for its iPhones versions, capturing the international market. The stars can become a cash cow for an organization in future if the industry matures to such an extent that it doesn’t have the potential to grow with rapid strides. The growth potential of the industry indicates that the products are likely to gain a further increase in the market share with the growth of the industry. The business units that represent star of an organization also share the feature of having a high market share, but what makes them different from cash cows is that their respective industry can still expand further. The digital music industry is in a mature phase and is not likely to have any massive developments, but iTunes are expected to bring in cash for Apple Inc.
In 2012, 44 million people in the US have gained access to a minimum of one digital music file per person, showing the high popularity of the product in the market. As observed by Bostic (2013), Apple has gained more than 60% of the market share establishing a clearly leading position. Even though there are different portals which offer the customers access to digital music, iTunes seems to have a dominant position in the industry. The iTunes allows the customers to gain access to digital music files and download them. has developed various products over the years, out of which iTunes can be regarded as the cash cow for the company. Nevertheless, cash cows have the potential to bring in financial capital to the organization from the products that are in high demand. The industry in which these particular products are being sold is in the mature stage. Cash CowsĬash cows as a category in BCG matrix denotes those products that are a rich source of income for an organization due to the large market share captured by the products. The following discussion uses BCG Matrix to evaluate the case of Apple Inc. The BCG matrix can provide useful insight into the market share and growth prospects of the different products of Apple Inc. is included among the leading manufacturer of electronic devices that has market share in the global industry.
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