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Jose Berengueres, June, 2021. Stockholm.
Hello! my name is Jose Berengueres.
Thank you for taking time to review this case!
v1.06

I choose Apple because it is a
well known brand that we all
can relate to

Agenda
The case is divided in 4 parts:
1. Clock model
2. Brand audit (+/-)
3. Identity model
4. Recommendations

Pre-Purchase
Purchase
Be part of the elite (1)
Clock Model

Pre-Purchase
Purchase
(1) In 2009, Cesar Guirao, (great iOS developer), explained
to me the difference between Android and iPhone. At
the time, iPhones represented 20% of all phones but
generated 80% of the app revenues [1]. The figures in
2021 are 87% (Android) to 13% (iOS) . iPhone users
spend 50bn on apps [2]. In summary, the best and
brightest develop for iOS apps [3].
[1] A, “App Store Nearly Doubles Google’s Play Store Revenue In Q3 Despite Boom In Android App Installs |
AppleInsider,” AppleInsider, 02-Oct-2020. [Online]. Available:
https://appleinsider.com/articles/20/10/02/app-store-nearly-doubles-googles-play-store-revenue-in-q3-despite-
boom-in-android-app-installs. [Accessed: 19-Jun-2021].
[2] “CRAZY Android Vs IOS Market Share Discoveries In 2021.” [Online]. Available:
https://leftronic.com/blog/android-vs-ios-market-share/. [Accessed: 19-Jun-2021].
[3] T. Avinadav, T. Chernonog, and E. Khmelnitsky, “Revenue-sharing between developers of virtual products and
platform distributors,” European Journal of Operational Research, vol. 290, no. 3, pp. 927–945, 2021, doi:
10.1016/j.ejor.2020.08.036.

Pre-Purchase
Purchase
(2,3) Some research on
personality traits of iphone users
shows that the being conscious
about social comparison
personality trait is a predictor of
iPhone purchase intent…[4].
[4] G. Sun, J. Li, Z. Cheng, S. D’Alessandro, and L.
Johnson, “Consumer personality factors and iPhone
consumption in China,” J Consumer Behav, 2020, doi:
10.1002/cb.1899.
Elegant appearance (2)
Design goes well in any setting
and any clothes (3)

Part I
Part I Clock Model:
Pre-Purchase
Purchase
Clock Model
(4) When the IBM’s thinkpad came about in 1990 it became an instant
success. It was the first TIME а laptop was designed in black color. IBM’s
designer’с [6] understood that the laptop should be black because its ubiquity
as from now one all those consultants would carry it to client’s offices but also
to coffee shops as well. The fact that someone thought about how to fit the
laptop appearance into the lifestyle of the user in multiple social settings was a
first [5]. Apple, perfected this when in the 90’s when Jobs listened to Esslinger
and understood that the computer would be used by the consumers to
“manage” their digital life’s*, not just for work [6]. In an industry clearly male
dominated it is shocking (still) to see how many brands still produce fast
performing electronics that are ugly outside. Not a problem at Apple.
Note: *photos, music, emails…. SNS… [5] “Aesthetics sells: Mobile phone sales as a function of phone attractiveness,”
pp. 551–560, 2012, doi: 10.1201/b12324-61.
G. Sun, J. Li, Z. Cheng, S. D’Alessandro, and L. Johnson, “Consumer personality factors and iPhone consumption in
China,” J Consumer Behav, 2020, doi: 10.1002/cb.1899.
[6] T. Selker and W. Burleson, “Context-aware design and interaction in computer systems,” IBM Syst. J., vol. 39, no. 3.4,
pp. 880–891, 2000, doi: 10.1147/sj.393.0880.
Laptop as a lifestyle tool,
(not a work tool) (4)

Pre-Purchase
Purchase
Clock Model
(5-8) WarrantyWeek estimates the Apple warranty costs to be
about $2bn per quarter. Higher than any other by far [7].
Worth it? Can you name another brand that used warranty
so much to build brand? Hint: RR, Hunday-7y?
[7] “Apple’s Warranties & Service Contracts, 9 November 2017.” [Online]. Available:
https://www.warrantyweek.com/archive/ww20171109.html. [Accessed: 19-Jun-2021].
unboxing as part of the
product experience (5)
owns the store experience (6)
(7) World-wide,
no questions asked warranty
(8) Best in class recall policy

Pre-Purchase
Purchase
Clock Model
(9) Now let’s take a look at the post purchase. Here
we see fascinating stuff. Apple hardware is far ahead
of the competition… and this helps the brand
experience in some invisible yet very real ways… For
example battery life, smaller chargers... Check this
youtube video to grasp the extent of the power
consumption differences between Apple
semiconductors and the rest [8]. As users get used to
longer battery life, the moat widens.
[8] ColdFusion, “How Apple Just Changed The Entire Industry (M1 Chip),” YouTube,
23-Nov-2020. [Online]. Available: https://www.youtube.com/watch?v=OuF9weSkS68.
[Accessed: 19-Jun-2021].
(9) Apple silicon leadership
ahead of ARM, intel and many other
miconductor design paradigms, leads to
smaller chargers, more efficiency in
Watts/instruction

Pre-Purchase
Purchase
(10) One of Android’s and windows OS weakness is that
they don’t force users to update… this creates a plethora of
unforeseen problems down the road… One is cybersecurity,
the other is that app developers don’t know on which version
of OS their app will run. Version fragmentation is detrimental
to the user experience, adds to coders overhead.
A third benefit about pushing updates? it makes old devices
obsolete faster. Is it legal? I don’t know. But it is great to
defragment and to control the cadence of replacement.
Bottom line here is that those forced updates is a bit of pain
now for a better long term experience overall. [9]
[9] Chen, Kuan-Yu. "Planned Obsolescence and Repurchase Intention: iPhone Batterygate as an
example." (2019).
(10) Ruthless Software updates to keep
consistency of app experience across
multiple generations of devices

Pre-Purchase
Purchase
Clock Model
(11) Ethics and good design are not always aligned with max
ROI . Example repeated model changes. Examples: bevels
shape changed from square to round from iPhone 5 to 6, and
then back to square bevels in the iPhone 11; Keyboards,
good before, bad in the last 4 years (magic keyboard), good
again now; Slight changes in the shape of phone and screen
size every model change so covers are not reusable from one
model to the other; Magsafe: yes before , not now, yes for the
next model… and so on [10].
[10] jose berengueres, “What happened to apple desgin,” 2015. [Online]. Available:
https://www.linkedin.com/pulse/what-happened-apple-design-jose-berengueres/. [Accessed:
19-Jun-2021].
(11) Annual model changes to create need of
replacement / signal who has new model of
phone / laptop (copies from car industry)

Part I
Part I Clock Model:
Pre-Purchase
Purchase
Elegant appearance (2)
Design goes well in any setting
and any clothes (3)
Laptop as a lifestyle tool,
(not a work tool) (4)
unboxing as part of the
product experience (5)
owns the store experience (6)
(7) World-wide “no-ticket”,
no questions asked warranty
service
(9) Apple silicon leadership
x2 ahead of ARM
(8) Best in class recall policy
(10) Software updates to keep
consistency of app experience across
multiple generations of devices
Clock Model Summary
(11) Annual model changes to create need of
replacement / signal who has new model of
phone / laptop (copies from car industry)

What I learnt from the clock model…

“Planned obsolescence still rocks in
the post purchase, not all of it is bad.

POSITIVES NEGATIVES
• Monopoly
• Product, service, UX, Hardware, leadership
• Crisis management. Apologized and
overcorrects in crises. For example Steve
Forstall was fired following the maps fiasco.
Cook apologized to customers when
Forstall refused to apologise. (Now Forstall
produces musical in Hollywood. :) )
• The Foxconn suicide crisis was solved and
forgotten [10]
• Monopoly
Audit
[10] Q. Cheng, F. Chen, and P. S. Yip, “The foxconn suicides and their media prominence: is the werther effect applicable in china?,” BMC Public
Health, vol. 11, no. 1, 2011, doi: 10.1186/1471-2458-11-841.

POSITIVES NEGATIVES
• Monopoly
• Product, service, UX, Hardware, leadership
• Crisis management. Apologized and
overcorrects in crises. For example Steve
Forstall was fired following the maps fiasco.
Cook apologized to customers when
Forstall refused to apologise. (Now Forstall
produces musical in Hollywood. :) )
• The Foxconn suicide crisis was solved and
forgotten [10]
• Monopoly
• Lost leadership in music
• Does not pay taxes
• Own interests not always aligned with
users best interests (See BatteryGate,
Google app maps fiasco, butterfly
keyboard fiasco, and Fortnite case)
• CEO remarkably likable but not
“rockstar” likable like Sandberg, Jobs or
Musk.
• suspicious planned obsolescence episodes
(Batterygate… )
Audit
[10] Q. Cheng, F. Chen, and P. S. Yip, “The foxconn suicides and their media prominence: is the werther effect applicable in china?,” BMC Public
Health, vol. 11, no. 1, 2011, doi: 10.1186/1471-2458-11-841.

Brand Essence background
Jobs wanted to create a consistent design language for all Apple
products. So he set up a contest to choose a world-class designer who
would be for Apple what Dieter Rams was for Braun. The winner was
Hartmut Esslinger, a German designer who was responsible for the
look of Sony’s Trinitron televisions. Even though he was German,
Esslinger proposed that there should be a “born-in-America gene for
Apple’s DNA” that would produce a “California global” look, inspired
by “Hollywood and music, a bit of rebellion and natural sex appeal.”
(Esslinger, A Fine Line, 2009)

Brand Essence today

Engineering for design, not design for engineering.” “cool”.
“human centered computing”
Core identity

User persona
- Be part of the elite and show it.
Symbol
- The design language and the product look and feel
have become the symbol because it is so present in our
daily life, close to users mind. Apple has removed its
name in all its products (only nike gone that far). It’s
logo is hardly noticed.
Organisation
- Priorizes Engineering for design not the opposite.
Apple prioritized vertical integration when it was not
fashionable. for example they source their own
aluminum because Alcoa’s aluminum not good enough
for them,.
Product
- (See Symbol section)
Extended identity

Brand recommendations
- Double down on privacy
- Hire “rockstar” ceo
- Fix music
Not my idea, Scott
said that in the
podcast, so there.

- Hire “rockstar” ceo to increase market cap 10%? [11]
- Fix music
[11] Gaines-Ross, L., 2000. CEO reputation: A key factor in shareholder value. Corporate Reputation Review, 3(4), pp.366-370.

- Hire “rockstar” ceo
- Fix music, conflict of interest with other
music apps, makes the brand look bully.
Jobs understood music.
Now they don’t. What will
happen if Spotify has a
Fortnite moment and gets
out of the app store? This
is probably the biggest
strategic threat to the
Apple halo… Joe rogan
podcast already only on
Spotify exclusively…

Part I
Part IV Recommendations
3 hurdles check on the recs
Double down on privacy
- differentiation: apples seems to be the only brand interested in privacy.
- sustainable: yes, increased worries about privacy and regulation, GDPR...
- relevant: very! particularly in Germany
Hire rockstar ceo
- differentiation: yes, and it can add a lot ot the market cap!!
- sustainable: Tim Cook has to retire in a few years
- relevant: Important for market cap but not urgent for the brand identity
Fix music
- differentiation: not anymore
- sustainable: It would help Apple good will
- relevant: Not so much as before [12], diminishing the bloatware feeling > than
fixing music
[12] Montgomerie, Johnna, and Samuel Roscoe. "Owning the consumer—Getting to the core of the Apple business model." Accounting Forum. Vol. 37. No. 4. No longer
published by Elsevier, 2013.

3 hurdles check on the recs
Double down on privacy ✅
- differentiation: Apple seems to be the only brand interested in privacy.
- sustainable: yes, increased worries about privacy and regulation, GDPR...
- relevant: very! particularly with German users
Hire rockstar ceo
- differentiation: yes, and it can add a lot ot the market cap!! (See Musk on twitter)
- sustainable: Tim Cook has to retire in a few years
- relevant: Important for market cap but not urgent for the brand identity ❌
Fix music
- differentiation: not anymore ❌
- sustainable: It would help Apple’s good will
- relevant: Not as much as before [12], diminishing the bloatware feeling > than fixing
music ❌

3 - Exemplary 2- Competent 1 - Developing
Insight Brand essence, core identity, & extended identity
complement one another
Logical, creative reasoning
Recommendations focus on one segment of the
customer journey (i.e., where on the clock)
Recommendations are supported by evidence
(e.g., competitor or industry trends)
Brand essence, core identity, & extended identity
are slightly disjointed
Reasoning mostly logical, but may be hard to
follow in some areas
Recommendations are vague or may focus on
more than one segment of the customer journey
Some evidence, but may not be clear how
supports analysis
Brand essence, core identity, & extended identity
are not cohesive
Confusing reasoning
No recommendations or recommendations are
not tied to the customer journey
No evidence or explanation behind
recommendations
Actionability Comprehensive plan to operationalize ideas
Specific, realistic recommendations
Outlines constraints or internal objections & how
to address
Prioritizes among recommendations & accounts
for tradeoffs
Plan to operationalize ideas exists, but may be
vague or too high-level
Analysis of constraints or internal objections may
lack detail
No prioritization (a laundry list of
recommendations)
No plan to operationalize ideas
Lacks thoughtful, realistic consideration of
constraints or internal objections
Structure & Design Compelling, logical storytelling
Clean design enables content to shine
Language is concise & to the point
Lack of storytelling connecting content
Basic design that does not enhance content
Language is mostly clear, length may be too long
No storytelling or flow
Design is distracting or messy
Language is confusing or wordy
Rubric

References
online at https://citat.io/ns+NBzo
[1] A, “App Store Nearly Doubles Google’s Play Store Revenue In Q3 Despite Boom In Android App Installs | AppleInsider,” AppleInsider, 02-Oct-2020. [Online].
Available: https://appleinsider.com/articles/20/10/02/app-store-nearly-doubles-googles-play-store-revenue-in-q3-despite-boom-in-android-app-installs. [Accessed:
19-Jun-2021].
[2] “CRAZY Android Vs IOS Market Share Discoveries In 2021.” [Online]. Available: https://leftronic.com/blog/android-vs-ios-market-share/. [Accessed: 19-Jun-2021].
[3] T. Avinadav, T. Chernonog, and E. Khmelnitsky, “Revenue-sharing between developers of virtual products and platform distributors,” European Journal of
Operational Research, vol. 290, no. 3, pp. 927–945, 2021, doi: 10.1016/j.ejor.2020.08.036.
[4] G. Sun, J. Li, Z. Cheng, S. D’Alessandro, and L. Johnson, “Consumer personality factors and iPhone consumption in China,” J Consumer Behav, 2020, doi:
10.1002/cb.1899.
[5] “Aesthetics sells: Mobile phone sales as a function of phone attractiveness,” pp. 551–560, 2012, doi: 10.1201/b12324-61.
[6] T. Selker and W. Burleson, “Context-aware design and interaction in computer systems,” IBM Syst. J., vol. 39, no. 3.4, pp. 880–891, 2000, doi: 10.1147/sj.393.0880.
[7] “Apple’s Warranties & Service Contracts, 9 November 2017.” [Online]. Available: https://www.warrantyweek.com/archive/ww20171109.html. [Accessed:
19-Jun-2021].
[8] ColdFusion, “How Apple Just Changed The Entire Industry (M1 Chip),” YouTube, 23-Nov-2020. [Online]. Available:
https://www.youtube.com/watch?v=OuF9weSkS68. [Accessed: 19-Jun-2021].
[9] jose berengueres, “What happened to apple desgin,” 2015. [Online]. Available: https://www.linkedin.com/pulse/what-happened-apple-design-jose-berengueres/.
[Accessed: 19-Jun-2021].
[10] Q. Cheng, F. Chen, and P. S. Yip, “The foxconn suicides and their media prominence: is the werther effect applicable in china?,” BMC Public Health, vol. 11, no. 1,
2011, doi: 10.1186/1471-2458-11-841.
[11] Gaines-Ross, L., 2000. CEO reputation: A key factor in shareholder value. Corporate Reputation Review, 3(4), pp.366-370.
[12] Montgomerie, Johnna, and Samuel Roscoe. "Owning the consumer—Getting to the core of the Apple business model." Accounting Forum. Vol. 37. No. 4. No longer published by
Elsevier, 2013.

Disclosures
Has lectured at
Has advised on R&D
Owns stock

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