1.The iPhone contributed to Apple’s CA. The market value of iPhone in 2014 is $101,991 and the book value is derived by adding up cost of sales and gross margin that comes to $182,795.

2.The Company does not have an underutilized human capital. For example, Steve Jobs invented the Macintosh and introduced it in 1984. His mission was to create one computer for one person. After his return to Apple, he invented the iPod and later the software for iTunes. The first Mac OS to support Power PC was invented by Apple in 1991.

3.The ongoing strategy of the company was an advantage due to the unique ability to design and develop its own operations systems. Apple has alliances with Microsoft and third party software developers. Apple and Samsung are both a rival and a supplier. Foxconn was the sole manufacturer of the iPhone 6 Plus.

4.Yes, the Company has developed the knowledge-management systems to capture what it learns. There is systematic management of the organization’s knowledge assets that creates value, meeting the desired requirement in creation, using, sharing and managing the information of the company. The supply chain, product design, research and development were the measures for potential competitive security that is managed within the company. The company has a strategy of maintain unique product design, marketing expertise and operational details.

5.Yes, the firm has intellectual assets it can legally protect. In the year 1987, Apple sued Microsoft over Graphical User Interface (GUI). Again, in the year 1989, Apple sued Xerox over GUI.

6.There is tacit knowledge as the information is based on the experiences of the employees. This knowledge of the Company technology is shared only with the consent and participation of the employees of the company. For example, when Microsoft used GUI it was sued. Apple also sued Xerox over GUI. Steve Jobs had given Microsoft some Macintosh prototypes to use to develop software, which would not have been possible if Jobs did not consent for it.