So you’re curios about Apple’s organisational structure.
Simplicity. Innovation. User experience.
These three terms come to mind when we think of tech giant Apple.
Since 1976, when Apple Computer was initially founded, Steve Jobs and Steve Wozniak revolutionised the tech industry. But what’s the secret behind their enduring success?
This sneak peek into Apple’s organisational structure shows you the mechanism propelling them to the forefront of tech.
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How it all began
Although founded earlier, Apple’s success story began in 1997 with Steve Jobs’ return.
Before then, they had about 8,000 employees and made about $7 billion in annual revenue.
Apple’s organisational structure was conventional (or traditional) at the time. This means that each product-based unit was independent of the others and had its own profit and loss.
Jobs was convinced this stifled creativity and took swift action.
He dismissed all business unit general managers in one day and placed all products under a single P&L (profit and loss).
Then, he merged the various departments across the business units into one functional organisation.
Fast-forward 26 years later, Apple has about 161,000 employees. Their annual revenue as of December 31, 2023? $385.7 billion.
Check out our guide to organisational structure.
What is Apple’s organisational structure?
Apple’s organisational structure is functional.
This means that departments are grouped by what they do (engineering, marketing, etc.) rather than by product lines.
Apple’s organisational structure has two main parts:
- The Senior leadership team
- The Board of Directors
1. Senior Leadership Team
This team reports directly to the CEO, Tim Cook, and each member is responsible for a specific business area.
They are titled Senior Vice Presidents (SVPs). Here are some key SVPs and their roles:
- Hardware Technologies: Johny Srouji – leads chip development and other core hardware innovations.
- Software Engineering: Craig Federighi – oversees the creation of Apple’s operating systems and software applications.
- Services: Eddy Cue – manages revenue streams like the App Store, Apple Music, and iCloud.
- Worldwide Marketing: Greg Joswiak – leads product marketing and advertising efforts.
- Retail + People: Deirdre O’Brien – oversees Apple’s physical stores and corporate HR functions.
- Chief Financial Officer (CFO): Luca Maestri – manages all financial aspects of the company.
- Chief Operating Officer (COO): Jeff Williams – oversees day-to-day operations and supply chains.
Below are the VPs:
These Vice Presidents (VPs) report to the SVPs and manage specific departments within their area.
2. Board of Directors
This group oversees the entire company. They act in the best interests of shareholders.
They guide the CEO on significant decisions and ensure Apple is run ethically and responsibly.
The board is currently chaired by Arthur D. Levinson, with other members from diverse backgrounds.
Note: this is a simplified overview, and Apple’s organisational structure can change as needed.
Also, check out Google’s organisational structure.
How does Apple’s functional structure work?
Apple has special teams with people from different areas to work on projects together. This way, everyone has a say, and ideas flow freely.
Every company needs a boss, and Apple’s is the CEO (Chief Executive Officer). At the time of writing, it’s Tim Cook.
Apple’s teams are grouped based on their area of expertise:
- Design team
- Mac hardware engineering team
- iPhone/iPad hardware engineering team
- Software engineering teams, and
- Marketing team
Here’s a glimpse into each team.
The design team
At the time of writing, Evans Hankey heads Apple’s design team. He’s the VP of Industrial Design.
He partners with Alan Dye, the VP of Apple’s Human Interface Design.
They both report to Jeff Williams, Apple’s Chief Operating Officer.
The design team is like the food stylists. They ensure that every feature is visually appealing and user-friendly to the user.
They craft the sleek and intuitive aesthetics of Apple products. From the curves of the iPhone to the minimalist design of the iMac.
Mac hardware engineering team
John Ternus heads the Mac hardware engineering team. He’s Apple’s SVP of Hardware Engineering and reports to CEO Tim Cook.
This team designs and engineers the “innards” of Apple’s computers – the Mac’s internal components.
They ensure smooth performance and easy integration with Apple’s software. They’re just like mechanics in a kitchen who keep the ovens and blenders working smoothly.
iPhone/iPad hardware engineering team
This team is also led by John Ternus.
They focus on the hardware that powers iPhones and iPads. They design technology while maintaining exceptional performance and battery life. All within the confines of a compact device.
Software engineering teams
Apple houses multiple software engineering teams. Each one specialises in a specific recipe.
For instance, Craig Federighi leads the iOS “recipe” developers. He’s Apple’s SVP of software engineering. Another team is responsible for the development of watchOS. This team is led by Kevin Lynch.
These teams develop operating systems that power Apple devices.
Marketing team
Greg Joswiak heads Apple’s marketing team.
The marketing team is Apple’s voice. They are very similar to food critics who review and promote dishes.
They’re responsible for:
- Captivating launch events
- Sleek advertisements, and
- Messaging that resonates with Apple’s customer base.
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What is Apple’s company culture?
Apple still has a clear two-pronged approach:
- Creating innovative products that are unbelievably user-friendly and
- Maintaining a tight grip on secrecy.
Let’s break this down.
1. Apple’s dedication to confidentiality
From the beginning, Steve Jobs understood the power of surprise.
He knew that unveiling a brand new gadget out of nowhere gave Apple a huge advantage.
Remember the iPhone launch in 2007? Everyone thought they knew what a phone could do, then BAM…iPhone. Game changer.
This secrecy thing is still a big deal at Apple today. They keep upcoming products under lock and key.
Leaks are rare. But if something does slip out, Apple jumps on it fast.
For example, in 2010 and 2011, a prototype iPhone X was forgotten at a bar in Vietnam.
Apple reportedly sent a whole crew from California to retrieve it. That’s how deep its dedication to secrecy runs.
But why all the mystery?
Well, it’s simple: secrecy keeps competitors guessing. They can’t copy what they don’t know.
This gives Apple a head start in perfecting and launching its latest and smartest products.
Pretty clever, right?
2. The user-friendly focus and attention to detail
Apple’s not all about secrecy. They’ve also stuck to Steve Jobs’ other big idea: making tech super user-friendly.
Think about it.
Their MacBooks are sleek and easy to use. iPhones are like second nature to navigate.
Apple puts people first when it comes to design.
This is why their users love their products. They keep coming back for more because Apple makes tech feel less techy.
Keeping things hush-hush and working together can be challenging. But Apple pulls it off.
Now, let’s discuss the pros and cons of Apple’s organisational structure.
What are the pros of Apple’s organisational structure?
Let’s dissect what’s good about Apple’s org structure.
#1. Quick decisions, quick action
Apple’s organisational structure lets the top dogs make swift choices. This birthed the iconic iMac, a product that punched a hole in the clunky PC market.
#2. A-Team everywhere
Apple’s secrecy breeds special forces of engineers. They dug deep to develop the M1 chip, a powerhouse that integrates processing muscle into one chip.
#3. Laser focus, laser results
Each product has its A-team, ensuring clear ownership. This focus fueled the iPhone’s success, a user-friendly product that redefined the smartphone game.
#4. Quality like clockwork
Apple’s organisational structure is well-oiled for quality control. This keeps the user experience seamless across iPhones, iPads, and Macs, making users sing Apple’s praises.
#5. Secrecy is gold
Apple’s cloak-and-dagger approach protects ideas. This secrecy weapon was crucial for the Apple Watch. Features stayed hush-hush until launch, creating a massive hype wave.
What are the cons of Apple’s organisational structure?
Here are some flaws with this structure.
#1. Changing lanes is tough
The structure struggles to adapt to rapid changes. This inflexibility might be why Siri is stuck in the slow lane compared to nimble competitors.
#2. Creativity on lockdown
Strict control can stifle creativity. This could explain why some talented employees leave Apple, like the iPod design team that left to create Nest Labs.
Do you want my advice on borrowing Apple’s organisational structure?
It’s a 50-50 situation
Apple’s organisational structure offers a strong foundation. But it’s a one-size-fits-all approach.
The ideal structure for your company depends on your specific needs and industry.
Here’s what to do:
- Identify your core values. What are the fundamental principles that guide your company’s operations?
- Analyse your industry. How fast-paced is your market? How important is innovation?
- Consider your team. How do you want to empower your employees?
Answering customers’ questions will show you if you need Apple’s organisational structure.
Cracked the code on Apple’s success? You bet.
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