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Has the Apple innovation machine stalled? Adapted from Trott, P. (2017). Innovation Management and New Product Development (6th ed). Pearson. f Stiffer competition in smartphones and tablets from the likes of Samsung has raised concerns over whether the party is over for Apple. One should not be surprised. Apple's fantastic profit margins - 38.6 per cent sales - have attracted many competitors. The iPhones and iPads still generate huge profit, but margins are being eroded by clever competitors like Samsung. One of the ways Apple keeps its competitive advantage is by keeping its components out of the mainstream by insisting on custom designs rather than off-the-shelf parts; a practice that leaves many suppliers frustrated. However, now Apple needs another breakthrough innovation. Apple needs more novel products. One of these new products is likely to be a much cheaper iPhone aimed at emerging markets. Apple sold two million of its top-of-the-range iPhones in 2013. However, most Chinese shoppers cannot afford them. Barclays, an investment bank, believes that Apple could produce an iPhone for less than $150 to broaden its appeal. This would generate revenues by appealing to mass markets. But Apple has rarely targeted the mainstream. The best way for the company to prove that it is not past its prime would be for it to disrupt another big market. Since Steve Job's death in 2011, Apple has concentrated on sprucing up its existing products. Now investors want to see it conjure up entirely new products. Question 4 Case Study 2: Organisation and the environment (Word limit is 300 words - A & B inclusive) A) Explain what is the task environment of an organisation? Using examples from the case study explain three dimensions that come under Apple's task environment? (10 marks) B) Why do you think managers need to be aware of external environment? Taking three dimensions of the general environment as examples, explain how they affect organisations and ways which managers respond to them. (10 marks)