Introduction
After Wozniak invented the Apple 1, he teamed up with Steve Jobs and Ronald Wayne and founded Apple, the company that would revolutionize the computer industry. Apple Inc. is the current name of the American multinational technology company, focusing on consumer electronics, software, and internet services.
Apple, valued at $1 trillion, ranks among the world’s most valuable brands. It became the first company to reach a market valuation of $1 trillion in 2018. It was the most valuable firm in the world by the end of January 2021, the fourth-largest seller of personal computers in terms of unit sales, and the second-largest mobile phone manufacturer (Flisikowski & Kucharska, 2018).
The company’s products include telephones (such as the iPhone), computers (like the Mac), tablets (like the iPad), and a range of wearable accessories. Furthermore, Apple offers digital content stores, streaming services, and software licensing services. Apple’s products run on its groundbreaking iOS operating system, which was released in 2007. This system differentiates it from all other Android devices and is incompatible with third-party hardware.
Competitive Analysis
Humans cannot function without mobile phones, which have become an inextricable part of our daily lives. Therefore, the smartphone business faces numerous competitors, many of whom cannot generate a profit beyond a pittance. Realme, Motorola, and Honor are among the top mobile phone firms, alongside Apple, Samsung, Vivo, and Oppo. Realme, Motorola, and Honor are among the leading mobile phone brands (Foster, 2018). In contrast, Samsung, the world’s top smartphone maker and a substantial presence in the personal computing market, is Apple’s most significant competitor.
Apple’s brand value is its most significant competitive advantage over its competitors. Apple was the most valuable brand in the world in 2022, according to an assessment of its brand value, which was around $355.1 billion. The second brand was Amazon, which had around $254.2 billion (Statista Research Department, 2022). The terms “brand value” and “brand valuation” are used to describe the worth of brands in the marketing industry, and “brand valuation” is the estimation of a brand’s total value. Apple has an advantage using the assumption that a famous brand name, holding other factors constant, can attract more clients than less famous names.
To improve business success, strong brands must first and foremost impact three primary stakeholder groups: (current and future) consumers, workers, and investors. They impact consumer choice and loyalty, as well as the ability to recruit, retain, and motivate personnel, and minimize the cost of financing. For example, one can take the case of Apple’s iPhone X, which was released in 2018.
The entry-level model was priced at $999, while the variant with more storage was $1,149 (Glimstedt, 2020). Because of its tremendous brand value, Apple ultimately changes perceptions and, as a result, purchasing behavior, making competitors’ products and services less interchangeable with its own. As a result, Apple adds economic value to the economy by providing more robust returns and growth while minimizing risk.
Research and development are other competitive edges that Apple has over its competitors, such as Samsung, in terms of innovation. The Apple brand invests significantly in research and development (R&D) to guarantee that its innovative products meet or exceed consumers’ expectations. Apple’s boutique retail stores, which are located in high-end locales worldwide, are operated by knowledgeable and experienced employees familiar with the company’s goods. The fact is that many other smartphone manufacturers do not have the financial ability to spend as much money as Apple does, since they do not produce anywhere near the amount of revenue that Apple does.
On the other hand, Apple is focused on a single brand, whereas its competitors are more diversified in the product category. Apple invests in a restricted set of products and technologies to support those products, whereas Samsung invests in a broader range of products and technologies. Samsung produces more smartphone models yearly than Apple and has its own logic chip fabrication business. It is also the leading developer of memory technologies and has its own chip development arm. Samsung also sells a wide range of other consumer electronics products that Apple does not, distinguishing it from Apple.
Similarly, Apple is at a distinct disadvantage when it comes to compatibility. Android is used by all of Apple’s top rivals, which results in a massive inter-reliability and data-sharing database. Examples include Android connecting to other devices through USB connections, which are available almost anywhere.
On the other hand, Apple connects to accessories using a proprietary Lightning connection exclusive to the company (Pratt, 2019). Lack of product interchangeability can lead to assembly, repair, and maintenance expenses. These expenses and delays can be highly inconvenient for customers, especially those outside the United States of America.
Marketing Strategies
Product
The term “product” refers to an object, system, or service made readily available to consumers in response to demand; it may refer to anything producers can supply to a market to meet the want or need. The firm has been credited with introducing several new and unique items during the last several years. Apple’s product range has evolved to satisfy people’s demands worldwide.
Apple’s product portfolio comprises both physical products and digital services. While the iPhone accounts for about 80% of the company’s income, the company’s other goods include the Mac, software, cloud services, the Apple Watch, iPad, iPod, Apple TV, and digital content, among others. Apple also has several other items. Apple’s product portion of the marketing mix demonstrates that the company is in the consumer electronics business, which is consistent with the company’s positioning.
Place
The place is a marketing mix component that guarantees the product is delivered and made readily available to the consumer at the correct time and in the right location. Apple is a global company with a presence in international markets. Therefore, Apple Inc.’s business model encompasses company-owned shops and third-party distributors approved by the corporation to promote its products. Apple distributes its products through the following channels:
- Desktop and mobile devices.
- Apple Store locations.
- Authorized dealers.
- Own website and online retailers.
- Telecommunications providers.
The Apple Store is a subsidiary of Apple Inc. that runs physical, or brick-and-mortar, locations where the company’s products and those of other manufacturers are sold. Additionally, buyers may purchase things on Apple’s website and through Apple’s online shop for desktop and mobile devices. Additionally, software, music, films, and other digital items are accessible via online storefronts for desktop and mobile devices, such as the App Store and the iTunes Store.
Price
The term “price” refers to the value placed on a product. The manufacturing costs determine it, the segment targeted, the market’s capacity to pay, supply and demand, and a variety of other direct and indirect considerations. Apple has developed a reputation as a luxury brand and thus has adopted a premium pricing strategy. The premium pricing method entails charging a premium for things. A premium is an amount added to the standard or usual price.
Apple products are expensive and serve as a status symbol. Apple will never undercut competitors’ prices to maintain its premium image. This premium pricing is mainly because reduced retail prices taint the brand. Apple’s premium pricing strategy is motivated by the company’s high-end technology and high-quality products. Unlike its competitors, Apple does not sell its products, which are usually reasonably priced. However, with such a vast fan following and a strong brand image, the firm is justified in demanding a premium price.
Promotion
Promotion encompasses increasing consumer and trade awareness of a product or service. Apple’s promotional approach is centered on aggressive advertising using various traditional and digital media. Apple’s promotional media include print, television, billboards, and internet advertisements. It promotes its goods using both conventional and unconventional methods.
Additionally, the items are advertised on the company’s website and through other online channels, including social media. Apple Inc.’s marketing strategy incorporates advertising on AI-driven platforms such as Google’s digital advertising network. Additionally, they also employ niche technology blogs and websites. Apple has deals with several well-known websites to advertise and promote its goods.
Additionally, the corporation employs personal selling through Apple Store personnel who deliver product-specific information to persuade store visitors to purchase. Apple’s promotion strategy also incorporates public relations to increase consumer acquisition. The advertisements are brief and to the point, with no excessive information. While commercial advertisements are aired when a product is introduced, print advertisements continue throughout the product’s existence. Apple’s advertising operations primarily focus on informing customers about the improved user experience Apple products provide.
The corporation also leverages public relations to strengthen its corporate image. For example, Apple events, product feature leaks, press releases, and exclusive interviews are meticulously orchestrated to maximize favorable PR. Additionally, the corporation participates in various programs, including ConnectED, which strives to enhance formal education results while marketing the company and its products. These activities align with Apple’s corporate social responsibility and stakeholder management strategy.
Competitive Advantage
While Apple’s premium pricing approach is disadvantageous compared to many affordable smartphone choices, Apple excels in promotion. Due to the proliferation of alternatives to Apple’s smartphones that fulfill almost all of the functionality of Apple’s smartphones, Apple has lost whatever edge it had over competitors as consumers choose less expensive alternatives. This disadvantage might have grave ramifications since the global smartphone subscription base is expected to expand by several hundred million more in the next several years. On the other hand, Apple stands out among its competitors thanks to its tremendous brand value over the years through active advertising. This campaign will maintain Apple’s position in the competitive technology market.
References
Flisikowski, K., & Kucharska, W. (2018). The condition of economies. Do most valuable global brands matter?Equilibrium, 13(2), 251–264.
Foster, R. J. (2018). Top-up: The moral economy of prepaid mobile phone subscriptions. The Moral Economy of Mobile Phones, 107–125.
Glimstedt, H. (2020). The iPhone and its antecedents: Re-thinking entry and the evolution of platform strategies at Apple Inc. Entreprises Et Histoire, 98(1), 120.
Pratt, L. (2019). Technologies, disciplines, and other puzzle pieces of the solutions renaissance. Link, 65–108.
Statista Research Department, & 5, A. (2022). Most Valuable Brands Worldwide 2022. Statista.