Apple's Lines of Business
The company divides its own product lines into iPhone, iPad, Mac, iPod, iTunes, Software, and Services, and Accessories. I will group these as three lines of business: Computing Hardware & Software, Mobile Devices, and the iTunes Store.
Computing Hardware & Software
Apple's longest running line of business is that of computer hardware and software. The company has always believed that hardware is only as useful as its software, and the importance of full software and hardware integration cannot be underestimated. This dedication to owning the full integrated product has allowed Apple to focus on quality and usability, at the cost of market share with its Mac line of products.
Macs are sold through the mass market retail channel with Apple employing three different business models. First, Apple acts as wholesaler to a small group of retailers that are authorized Mac retailers. Second, Apple applies the manufacturer direct model by selling Macs direct to consumers through its website. Finally, Apple takes on the role of traditional retailer itself by selling Macs through its own bricks-and-mortar retail stores.
Mobile Devices
The company's signature in the post-1996 era is its development of mobile devices and its dominance of the cell phone and tablet industries. Beginning with the iPod music player, Apple has steadily focused on ease of use, quality construction, and customer experience to develop its hardware, software, and cloud service integration into a powerful mobile platform. The iPod evolved into the iPhone by incorporating cellular technology and the app store, which evolved into the iPad product line.
The company's approach to selling mobile devices is similar to that of its computer business. Apple sells iPhones and iPads through the traditional retail channel, through partners and through its own retail and web channels. Through its cellular partners, it also layers in a the freemium