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Apple, the leading technology brand was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in 1976. It is the maker of iPhones, iPad, iPod, MacBook, Apple Watch. Apple was initially founded with the intention of selling Wozniak’s hand-built personal computer named Apple1. It was sold without a monitor, keyboard, or casing (which they decided to add on in 1977). The Apple II revolutionized the computer industry with the introduction of the first-ever color graphics. Sales jumped from $7.8 million in 1978 to $117 million in 1980, the year Apple went public. Through the rest of the 1980s, Apple was still doing well and in 1990 it posted its highest profits.
In 1996 Steve decided to make some changes around Apple. He forged an alliance with Microsoft to create a Mac version of its popular Office software. Not long after this decision was the turning point for the company. Jobs revamped computers and introduced the iBook (a personal laptop). He also started branching out into mp3 players (iPod) and media player software (iTunes). This was Jobs’ best move yet. While computers are still an important part of Apple, its music-related products (i.e. iPod and iTunes) have become the company’s most profitable sector.
Mac is a leading operating system in competition with windows. However, Apple is remarkable for several other things like watches and TVs. It holds its own distinct place. The last few years have seen Apple perform really well financially. In 2018, it touched its ever highest valuation of 1 Trillion Dollars.
Apple mission statement
Apple’s mission statement is “to bring the best user experience to its customers through its innovative hardware, software, and services”.
Growing market of Apple
Its revenue growth over the last two years has been driven majorly by its services and products like Apple Watch and AirPods, while Its main iPhone business have remained flat due to the not so good performances by its devices like iPhone XR and iPhone XS. However, it is predicted to grow in the year 2020 because of the increasing demand for lower prices of iPhone 11 and upgrading of 11pro devices and the potential launch of 5G handsets this year.
*Apple’s Revenues have grown by 13.5% from around $229 billion in 2017 to $260 billion in 2019 and is expected to grow by 9% to $284 billion in 2020
Apple is the first company with a Trillion Dollar market cap.
Brand Equity
One of the reasons for its competitive advantage over others is its Brand equity. Apple is known for delivering the best quality products and services. It has maintained the trust levels among the customers for years. A brand is how people feel about the company and surely its fans have a lot of positive feelings about it. Apple does a great job of ensuring that its customers get the best experience, be it the way you shop in the stores, the way it handles customer supports, and of course the way it feels to unbox a brand new Apple device. Apple has always been innovative with its products that are a lot different from its rivals. Its customers eagerly await for its new products and are ready to pay premium prices for them. Today, Apple is the world’s leading technology brand with brand value at over $200 Billion.
Apple knows how to delight its customers beyond simply meeting their expectations and this is what makes its customers fall in love with the brand.
Premium and a wide variety of products
Apple has done an excellent job in delivering a wide range of innovative products over the years which has resulted in higher revenues and popularity. Its products range from MacBooks to the latest versions of iPhones, iPad, iPods, Apple Watch, Apple TV, etc. iPhone is the best-selling product of apple and contributes majorly to its revenues. MacBook is also a major source of its market cap and revenue. Its service range also includes iPhone OS (iOS), OS X and watchOS operating systems, iCloud, Apple Pay, etc. The premium quality of Apple products has been its major growth driver.
Innovation
Today’s world is highly driven by technology. The companies spend a huge number on research and development to cater to the technological needs of the consumer to deliver innovative products. Apple is known to be a highly innovative company since the beginning. It has produced several innovative products including macOS, iOS, MacBooks, iPhones, iPods, iTunes, and others. Apple has spent a larger portion of its revenue on R & D since 2003. During the fiscal third quarter of 2019, Apple spent $4.2 billion on research and development. That being said, this is the most Apple has ever spent on R&D during a single quarter. With spending of $4.2 billion, Apple spent 7.9 percent of its total revenue on research and development during the quarter. Just in 3 years, its R&D costs have increased by more than 4 Billion dollars. However, it has resulted in high financial performance and growth of the company.
Customer Relationship
Customer relationship/royalty can be very advantageous in today’s era. Every company works towards retaining its existing customers and maintaining customer loyalty. Apple generally focuses on ensuring that customers have an experience, rather than simply making a purchase. The Apple Support accepts all kinds of feedback, be it good or bad. By acknowledging people who complement them and working quickly to solve any issues, they make everyone feels valued.
Premium Pricing
Though keeping high prices may lead to a fall in demand and market but Apple’s premium price policy has proven to be a source of strength and advantage for it. It has built an image of a premium/expensive brand which never compromises on quality and technology. Keeping relatively a high price than other brands, Apple has placed itself distinctively over its competitors. It has marked its impact and popularity among rich people or people with high purchasing power.
All these things have led Apple to gain a competitive edge over its competitors.
