Apple Don't What You to Know These Strategies

For a moment, let's go back to the early 1990s and imagine doing all our current favorite things back then 🤗 like listening to music, playing video games, and speaking on the phone with a friend.

Each activity required us to shift our positions and actions because they had their own things to spread a smile on our faces - iPads for music, landlines for talk time, and consoles for video games.

But by integrating all these (well, not massive video games, at least) into one platform, Apple released its first iPhone 😮 Since then, Apple has been thriving. Today, it has become one of the most adored brands worldwide.

But why only Apple? Are there hidden magnetic strategies Apple uses to make people stick with it?

Let's see!

Starting in 1976, the company grew from building personal computers to becoming a global leader in smartphones, wearables, and digital services.

Its ability to change industries, create new markets, and build an ecosystem that keeps customers coming back has made it one of the most valuable companies in the world today. So, what did Apple do to become the talk of the town always?

The Timeline of Events

• 1976 - The Birth of Apple

Steve Jobs, Steve Wozniak, and Ronald Wayne invented Apple in 1976 in a garage. Their first product, the Apple I, was a simple computer with no keyboard or display.

Yet, it marked the beginning of a revolution in personal computing. They sold 200 units of Apple I for $666.66 each, and it was one of the earliest fully assembled personal computers.

• 1984 - The Macintosh Launch

Apple introduced the Macintosh in 1984 with a Super Bowl ad. It was the first personal computer with a graphical user interface (GUI) and a mouse. They sold 70,000 units of Macintosh in its first few months.

This unique perspective on technology set Apple apart from its competitors and positioned it as a leader in user-friendly design.

• 1997 - Steve Jobs’ Return

Apple faced financial struggles in the 1990s, with declining market share. By 1996, Apple was losing $1 billion annually. In 1997, Steve Jobs returned as CEO and led the company through a massive turnaround.

Apple received a $150 million investment from Microsoft, which helped stabilize the company. While this was critical, it led to a partnership where they worked on Microsoft Office for Mac computers.

• 2007 - The iPhone Era

They launched Apple’s most revolutionary product, the iPhone, in 2007. It was a game-changer in how people interacted with technology because it combined a phone, iPod, and internet browser into a single device.

By 2008, Apple sold 6.1 million units of the first-generation iPhone globally.

• 2020 - The Rise of Wearables

By 2020, Apple was leading in the wearables market with products like the Apple Watch and AirPods. These products contributed to Apple’s revenue, with the wearables alone generating $38 billion that year.

You know the revenue from wearables was even more than what they made selling Mac. Additionally, Apple’s services, like Apple Music, iCloud, and the App Store, became proper revenue streams for the brand.

• 2023 - Apple's Focus on Sustainability

As of 2023, Apple has committed to becoming carbon neutral by 2030. It is using recycled materials in products like the iPhone and MacBook and reducing its carbon footprint across the supply chain.

In 2023, Apple used 20% of recycled materials across its products and moved a step towards its sustainability goals.

Analysis

Several strategies contribute to Apple's success and set it apart from its competitors and the fierce competition in the market. So, how is Apple able to do it? What strategies does it use to achieve all we see it has today?

Relentless Focus on Innovation

Apple has always been known for its innovation. From the first Macintosh in 1984 to the iPhone in 2007, Apple has consistently disrupted markets with products that redefined how people interact with technology.

What makes Apple’s innovation stand out is not just about introducing new technology but about doing so in a simple and user-friendly way. The iPhone, for example, was not the first smartphone.

But it was the first to combine a phone, music player, and web browser in a simplified package. The simplicity of its design with the App Store changed the entire mobile phone market. By 2023, Apple had sold over 2.2 billion iPhones, making it the most successful product in tech history.

• Apple’s success lies in its ability to pick complex technologies and make them accessible to the everyday user. And that is why its products dominate the markets they enter.

Check out this clip to see one of Apple’s innovations and how it’s helping:

Building a Strong Ecosystem

One of Apple’s wildest strategies is creating an ecosystem of connected products and services. The iPhone, iPad, MacBook, Apple Watch, and AirPods all work together, letting users stay within the Apple ecosystem.

Once you buy an iPhone, you are more likely to buy a MacBook or Apple Watch because of how easily these devices work together.

Apple’s services, such as iCloud, Apple Music, and the App Store, support this ecosystem further with ongoing value and create a sticky customer experience.

Apple’s services revenue in 2023 was $53.8 billion, up from $46.3 billion in 2019. It shows how its ecosystem drives constant customer spending.

• The ecosystem strategy helps Apple retain customers and locks them into a loop of buying more Apple products to improve their experience.

Here’s a video by a tech content creator explaining his mini Apple ecosystem:

Design as a Differentiator

Apple has always prioritized design, not just in terms of aesthetics but also in usability. The clean, minimalist designs, from the MacBook to the iPhone, have created a sense of luxury and sophistication.

This focus on design has made Apple’s products aspirational, even when competitors offer cheaper alternatives. While many brands exist in the market, Apple’s attention to detail in the design, with its user-friendly interface, has made it a status symbol.

By 2023, Apple controlled 24% of the global smartphone market, with iPhone sales consistently leading the premium segment.

• Apple’s investment in design helped create an emotional connection with its customers, making them more loyal to the brand.

Here’s a clip explaining how the team at Apple designs Apple products:

Sustaining Customer Loyalty

Apple’s commitment to make high-quality products and services has resulted in one of the highest customer loyalty rates in the tech industry.

Apple’s brand loyalty rate is about 90%, meaning 9 out of 10 iPhone users will stick with the brand when upgrading their device.

While Apple’s ecosystem, excellent customer service, and the premium experience of Apple products could be a reason, one major factor behind this loyalty is Apple’s regular updates to its hardware and software.

Their effort to make even older devices run the latest operating systems puts the brand above all other brands. This ongoing support keeps customers satisfied and encourages them to upgrade within Apple.

• Apple’s ability to retain customers has become its core strategy in sustained revenue growth, as returning customers repeat business.

Here’s a video of a productivity influencer explaining why he uses Apple products only:

Leveraging Market Trends

Apple has been successful in identifying and capitalizing on emerging market trends. For instance, it quickly focused on the wearables market by introducing products like the Apple Watch and AirPods.

Apple was early to realize that wearables, particularly in health tech, would be a notable growth area, and by 2020, Apple's wearable segment generated $38 billion in revenue.

The Apple Watch now includes health monitoring features such as heart rate tracking and ECG. These features align with the increasing consumer interest in personal health and wellness.

Now, you might question if these features work just fine or if they are as similar to other watches out there. Trust me, you might want to look at these.

Case 1, Case 2, Case 3

• Apple’s ability to stay ahead of market trends, whether in wearables or digital services, has allowed it to diversify its revenue streams and maintain its market leadership.

Sustainability and Corporate Responsibility

In recent years, Apple has focused on sustainability, which resonates with environmentally conscious consumers. One of Apple's goals is to become carbon neutral by 2030 and use 100% recycled materials in its products.

This focus on sustainability is good for the planet and business, as it aligns with consumer demand for ethical and sustainable brands.

By 2023, Apple used 20% of the recycled materials in its products. As people become more environmentally aware, Apple’s commitment to sustainability will boost its brand image and customer loyalty.

• Apple’s focus on sustainability is helping it position itself as a forward-thinking, responsible company, which is becoming more worth a thought for buyers when choosing brands.

Check out this video in which Apple made its promise:

Results

• Apple’s total revenue reached $383.2 billion in 2023, a notable jump from $233.7 billion in 2015.

• By 2023, Apple had sold over 231.3 million iPhones globally, with 24% of the smartphone market share.

• In 2023, Apple’s services made $53.8 billion in revenue, compared to $46.3 billion in 2019 because of its focus on the App Store, iCloud, Apple Music, Apple Pay, and Apple TV+.

• As of 2023, Apple was the first company to reach a market capitalization of $3 trillion, which no other company has achieved.

• In 2023, Apple held approximately 53% share of the U.S. smartphone market, making it the dominant player.

• By 2020, Apple's wearables segment made over $38 billion in revenue, and it held over 30% of the global wearables market in 2023.

Conclusion

Apple's success revolves around continuous innovation, ecosystem, and customer loyalty. Its ability to lead across smartphones, wearables, and digital services has made it more revenue and solidified its position.

Apple remains a leader in technology by focusing on sustainability and evolving with market trends, setting benchmarks for both business success and customer satisfaction in today's digital world.

It's your turn now (We will feature the best answers in the next post):

• How important is sustainability in shaping the future of brand perception, especially for tech companies?

• What strategies can brands adopt to explore new revenue streams without diluting their core product offerings?

• How can other companies replicate Apple’s customer-centric approach in building ecosystems around their products?