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How Apple Is Organized for Innovation

• Joel M. Podolny
• Morten T. Hansen

When Steve Jobs returned to Apple, in 1997, it had a conventional structure for a company of its size and scope. It was divided into business units, each with its own P&L responsibilities. Believing that conventional management had stifled innovation, Jobs laid off the general managers of all the business units (in a single day), put the entire company under one P&L, and combined the disparate functional departments of the business units into one functional organization. Although such a structure is common for small entrepreneurial firms, Apple—remarkably—retains it today, even though the company is nearly 40 times as large in terms of revenue and far more complex than it was in 1997. In this article the authors discuss the innovation benefits and leadership challenges of Apple’s distinctive and ever-evolving organizational model in the belief that it may be useful for other companies competing in rapidly changing environments.

It’s about experts leading experts.

Idea in Brief

The challenge.

Major companies competing in many industries struggle to stay abreast of rapidly changing technologies.

One Major Cause

They are typically organized into business units, each with its own set of functions. Thus the key decision makers—the unit leaders—lack a deep understanding of all the domains that answer to them.

The Apple Model

The company is organized around functions, and expertise aligns with decision rights. Leaders are cross-functionally collaborative and deeply knowledgeable about details.

Apple is well-known for its innovations in hardware, software, and services. Thanks to them, it grew from some 8,000 employees and $7 billion in revenue in 1997, the year Steve Jobs returned, to 137,000 employees and $260 billion in revenue in 2019. Much less well-known are the organizational design and the associated leadership model that have played a crucial role in the company’s innovation success.

• Joel M. Podolny is the dean and vice president of Apple University in Cupertino, California. The former dean of the Yale School of Management, Podolny was a professor at Harvard Business School and the Stanford Graduate School of Business.
• MH Morten T. Hansen is a professor at the University of California, Berkeley, and a faculty member at Apple University, Apple. He is the author of Great at Work and Collaboration and coauthor of Great by Choice . He was named one of the top management thinkers in the world by the Thinkers50 in 2019. MortentHansen

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• International Marketing

Apple’s Global Strategy: Simplicity, Innovation, and Adaptability

• January 19, 2024

Table of Contents

Delving into apple’s global strategy, apple’s core values and the simplicity mantra, apple’s global branding strategy, apple’s global marketing strategy, case studies, apple’s global tax strategy.

• The Cornerstones of Apple’s Global Strateg

In the ever-evolving landscape of technology, Apple stands as a beacon of innovation and design, captivating consumers worldwide with its sleek products and user-centric approach. With a global presence spanning over 150 countries and an estimated $383.29 billion in revenue in 2023, according to Statista , Apple’s success is a testament to its astute global strategy , a harmonious blend of differentiation, adaptability, and unwavering commitment to quality.

Apple’s global strategy is rooted in the concept of “differentiation,” a strategic approach that sets it apart from its competitors. By consistently pushing the boundaries of innovation, Apple has carved a niche for itself, offering products that are not only technologically advanced but also aesthetically pleasing and user-friendly . This differentiation has allowed Apple to capture a loyal customer base and establish a strong brand identity across the globe .

Apple’s global strategy has evolved over time, adapting to the changing dynamics of the international market. In its early days, the company focused heavily on innovation, relentlessly pursuing cutting-edge technologies and groundbreaking designs. However, as the company matured, it recognized the importance of customer experience and began placing a greater emphasis on this aspect . Today, Apple’s global strategy is a seamless blend of innovation and customer focus, ensuring that its products and services align with the needs and preferences of consumers worldwide.

At the heart of Apple’s global success lies a set of core values that permeate every aspect of the company’s operations , from product design to marketing campaigns. These values, deeply rooted in the company’s identity, guide Apple’s approach to innovation, customer experience, and global expansion.

• Accessibility: Apple strives to make its products and services accessible to everyone, regardless of their physical or cognitive abilities. This commitment is evident in features like VoiceOver , which provides spoken feedback for visually impaired users, and AssistiveTouch , which allows users with limited mobility to control devices with gestures.
• Educational Support: Apple recognizes the transformative power of technology in education and actively supports initiatives that promote digital literacy and learning. The company’s initiatives include Apple Teacher certification programs, curriculum resources, and educational apps that enhance teaching and learning.
• Carbon Neutrality: Apple is committed to reducing its environmental impact and is working towards becoming carbon neutral by 2030 . The company has implemented numerous initiatives to minimize its carbon footprint, including transitioning to renewable energy sources, designing energy-efficient products, and recycling materials.
• Inclusive Work Environment: Apple is committed to creating a diverse and inclusive workplace where everyone is valued and respected. The company has implemented policies and programs that promote diversity hiring, provide equal opportunities for advancement, and foster a culture of inclusion.
• Privacy: Apple is a staunch advocate for user privacy and believes that individuals should have control over their personal data. The company has implemented robust privacy protections in its products and services, including encryption, data minimization, and transparency.
• Equity and Justice: Apple is committed to promoting equity and justice in its operations and throughout the world. The company supports initiatives that address social and economic inequalities, promotes human rights, and advocates for environmental sustainability.
• Supplier Responsibility: Apple is committed to ensuring that its suppliers adhere to high ethical standards and treat their workers with respect. The company has established stringent supplier codes of conduct and conducts regular audits to monitor compliance.

These core values, collectively, form the foundation of Apple’s global strategy. They guide the company’s product design, marketing campaigns, and customer service interactions , ensuring that Apple delivers products and experiences that are not only technologically advanced but also aligned with its values of simplicity, accessibility, and inclusivity.

Simplicity is a cornerstone of Apple’s design philosophy, evident in the clean aesthetics, intuitive interfaces, and user-friendly features of its products. This emphasis on simplicity has resonated with consumers worldwide , making Apple products accessible to a broad audience and fostering a loyal customer base.

By upholding its core values and embracing simplicity, Apple has not only achieved global success but also established itself as a role model for other companies seeking to build a sustainable and ethical business model.

Apple’s global branding strategy is a delicate balance of standardization and adaptation, ensuring that the company maintains a consistent brand identity while also resonating with consumers in diverse cultures and markets. On the one hand, Apple strives to project a unified brand image, conveying its core values of innovation, simplicity, and elegance across all its products, marketing campaigns, and customer interactions. This standardization helps reinforce Apple’s reputation for quality and consistency, fostering brand loyalty and recognition worldwide.

On the other hand, Apple recognizes the need to adapt its branding to local markets and cultures. This adaptability is evident in the company’s product offerings, marketing messages, and customer support. For instance, Apple has developed localized versions of its products with features and specifications tailored to specific regions . Additionally, the company’s marketing campaigns often incorporate cultural nuances and local references to connect with consumers on a deeper level.

Apple’s ability to balance standardization and adaptation has been a key factor in its global success. By maintaining a consistent brand identity, the company has built a strong foundation of brand recognition and loyalty . However, by adapting to local markets, Apple has been able to cater to the needs and preferences of consumers in different parts of the world, expanding its reach and deepening its customer base.

Examples of Apple’s Standardization

• Unifying Brand Elements: Apple employs a consistent design language across its products, including clean aesthetics, minimalist interfaces, and sleek silhouettes. This consistent visual language helps establish a cohesive brand identity.
• Global Marketing Campaigns: Apple’s marketing campaigns often feature universal themes of innovation, creativity, and personal empowerment, appealing to a global audience.
• Seamless Customer Experience: Apple’s customer support is available in multiple languages, and the company’s online store can be accessed in over 40 countries, ensuring a consistent experience for customers worldwide.

Examples of Apple’s Adaptation

• Localization of Products: Apple offers localized versions of its products, such as the iPhone and iPad, with features and specifications tailored to specific regions. For instance, the iPhone SE 2020 is optimized for Indian consumers with support for two SIM cards and regional cellular bands.
• Culturally Sensitive Marketing: Apple’s marketing campaigns often incorporate cultural nuances and local references to connect with consumers on a deeper level. For example, the company’s “ Shot on iPhone ” campaign features images captured by photographers from around the world, showcasing the diversity of visual storytelling.
• Localized Customer Support: Apple provides customer support in multiple languages and offers localized resources, such as online FAQs and tutorials, tailored to specific regions. The company also partners with local businesses to offer personalized support services.

Apple’s success in balancing standardization and adaptation is a testament to its understanding of the complexities of global branding. By striking this delicate balance, the company has been able to maintain a strong brand identity while also resonating with consumers in diverse markets , solidifying its position as one of the world’s most recognizable brands.

Apple’s global marketing strategy is a multifaceted approach that revolves around four key pillars: wide acceptance, brand value, competitive advantage, and low imitation . These pillars are intertwined, working together to propel Apple’s success in the global marketplace.

Wide Acceptance

Apple’s products have achieved widespread acceptance worldwide, attracting a loyal customer base across diverse demographics and regions . This widespread appeal is attributed to several factors, including:

• Innovative Designs: Apple consistently pushes the boundaries of design, creating products that are both aesthetically pleasing and user-friendly. The company’s sleek, minimalist aesthetic has become synonymous with Apple’s brand identity.
• User-Friendly Interfaces: Apple’s products are renowned for their intuitive interfaces, making them easy to navigate and use for people of all technical backgrounds.
• Effective Marketing Campaigns: Apple’s marketing campaigns are known for their creativity and emotional appeal, resonating with consumers on a personal level. The company often uses storytelling and cultural references to connect with diverse audiences.

Brand Value

Apple has built a strong brand value over the years, characterized by perceptions of quality, innovation, and premium craftsmanship . This brand value has been instrumental in attracting consumers and fostering brand loyalty.

• Reputation for Quality: Apple is consistently rated among the most reliable and durable consumer electronics brands. This reputation for quality has earned the company a loyal following among consumers who value long-lasting products.
• Innovation: Apple is renowned for its pioneering spirit, consistently introducing innovative products that redefine the technological landscape. This focus on innovation has helped maintain Apple’s cutting-edge reputation and attract early adopters.
• Premium Branding: Apple’s products are positioned in the premium segment of the market , commanding higher prices than its competitors. This premium positioning contributes to the company’s brand value and reinforces its image as a luxury brand.

Competitive Advantage

Apple maintains a competitive advantage in the global market through a combination of factors, including:

• Strategic Product Differentiation: Apple differentiates its products from competitors through unique features, design elements, and user experiences. This differentiation strategy has helped the company carve out a distinct niche in the market.
• Focus on Customer Experience: Apple prioritizes customer satisfaction, creating a seamless and personalized experience for its users. This focus on customer experience has helped foster brand loyalty and attract new customers.
• Global Retail Presence: Apple has a strong global retail presence, with over 500 stores in 23 countries, as per Statista . This extensive retail network provides consumers with easy access to Apple products and services.

Low Imitation

Despite facing intense competition from numerous technology giants, Apple has been able to maintain a relatively low level of imitation . This is due to several factors, including:

• Continuous Innovation: Apple’s relentless pursuit of innovation makes it difficult for competitors to replicate its products and services.
• Strengthened Intellectual Property Protection: Apple has a robust intellectual property portfolio, providing legal protection for its innovative designs and technologies.
• Brand Loyalty: Apple’s loyal customer base is less susceptible to imitation, as they are often willing to pay a premium for Apple products due to their brand loyalty and trust in the company.

Apple’s successful global marketing strategy is a testament to its ability to balance innovation, brand value, competitive advantage, and low imitation. By consistently delivering high-quality products, cultivating a strong brand reputation, and prioritizing customer experience, Apple has cemented its position as one of the world’s leading technology companies .

Apple’s remarkable global success is evident in its ability to penetrate and dominate markets as diverse as China and India. These two countries represent two of the world’s most populous and rapidly growing economies, offering significant opportunities for technology companies. Apple’s success in these markets is a testament to its ability to adapt its global strategy to local conditions and preferences .

China has become Apple’s second-largest market , with over 190 million active iPhones in use as of 2023 ( Statista , 2023). Apple’s success in China can be attributed to several factors, including:

• Pricing Strategy: Apple has adopted a tiered pricing strategy in China, offering a wider range of products at lower price points to cater to a broader range of consumers.
• Distribution Channels: Apple has established a strong network of authorized resellers and retail stores in China, making its products readily available to consumers across the country.
• Partnerships with Local Businesses: Apple has partnered with Chinese telecommunications companies, e-commerce platforms, and content providers to expand its reach and customer base.
• Localization: Apple has made sure to localize its products , marketing campaigns, and customer support for the Chinese market, ensuring that they resonate with local consumers.

Despite facing challenges such as piracy and counterfeiting, Apple has successfully established itself as a premium brand in China . The company’s commitment to innovation, design, and customer experience has resonated with Chinese consumers, who are increasingly embracing technology.

India is another key market for Apple, with a growing middle class and increasing smartphone penetration. Apple’s strategy in India has focused on tailoring its products and services to the specific needs and preferences of Indian consumers .

• Price Sensitivity: Apple has introduced more affordable iPhone models in India, such as the iPhone SE, to attract price-conscious consumers.
• Online Sales: Apple has heavily invested in its online presence in India, making it easier for consumers to purchase its products online.
• Partnerships with Local Businesses: Apple has partnered with Indian e-commerce platforms, mobile carriers, and banks to expand its distribution reach and payment options.
• Localization: Apple’s localization strategy for the Indian market has included the adaptation of its products, marketing campaigns, and customer support, including the development of Hindi-language versions of its software.

Apple’s success in India has been gradual but steady. The company has faced challenges such as competition from local smartphone brands and a lack of brand recognition in rural areas. However, Apple’s commitment to innovation and adaptation has helped it gain traction in this emerging market .

Apple’s global success has been accompanied by scrutiny over its tax practices, particularly its use of a subsidiary company in Ireland to minimize its global tax liability. This strategy, known as “ Double Irish with a Dutch Sandwich ,” has allowed Apple to shift profits offshore, effectively reducing its tax payments in the United States and other countries .

While Apple has defended its tax strategy, arguing that it complies with all applicable laws, it has faced criticism from governments, tax experts, and consumer advocacy groups . Critics argue that Apple’s tax practices amount to corporate tax avoidance, depriving governments of revenue that could be used for public services.

Advantages of Apple’s Tax Strategy

Apple’s tax strategy has several potential advantages for the company, including:

• Reduced Tax Burden: By shifting profits offshore, Apple can effectively reduce its tax payments, which can boost its profitability and financial returns to shareholders.
• Increased Competitiveness: Lowering tax costs can give Apple a competitive advantage over other companies, allowing it to invest more in research and development, marketing, and product development.
• Enhanced Shareholder Value: By reducing its tax burden and increasing profitability, Apple can improve its financial performance and boost shareholder value.

Disadvantages of Apple’s Tax Strategy

Apple’s tax strategy has also been criticized for several potential disadvantages, including:

• Public Image Concerns: Apple’s tax practices have tarnished its public image, raising concerns about corporate social responsibility and ethical behavior.
• Legal Challenges: Governments and tax authorities around the world have been investigating Apple’s tax strategy, and the company faces potential legal challenges that could lead to fines and penalties.
• Political Fallout: Apple’s tax practices have created political tensions, with some countries considering imposing stricter tax laws to prevent multinational corporations from shifting profits offshore.

A Balancing Act

Apple’s global tax strategy has been a source of controversy, highlighting the delicate balance between corporate profitability and societal responsibility . While the company may benefit financially from its tax practices, it also faces reputational risks and potential legal repercussions. Apple must carefully navigate this complex landscape to maintain its global success while addressing concerns about its ethical conduct.

The Cornerstones of Apple’s Global Strategy

Apple’s journey to becoming one of the world’s most recognizable and successful companies is a testament to its ability to balance simplicity, innovation, and adaptability. From its early days as a niche computer manufacturer to its current status as a global technology powerhouse, Apple has consistently demonstrated its knack for understanding and meeting the evolving needs of consumers worldwide .

Apple’s core values, particularly its emphasis on simplicity, have permeated every aspect of its business. The company’s products are renowned for their user-friendly interfaces and intuitive designs , making them accessible to a wide range of users, regardless of their technical expertise. This commitment to simplicity extends to Apple’s marketing campaigns, which often use storytelling and emotional appeals to resonate with consumers on a personal level.

Apple’s unwavering focus on innovation has been another driving force behind its global success. The company has consistently pushed the boundaries of technology, introducing groundbreaking products that have transformed the way people interact with the digital world . From the revolutionary iPhone to the sleek AirPods, Apple has consistently redefined the standards for innovation in the technology industry.

Alongside innovation and simplicity, Apple has also demonstrated remarkable adaptability in its global expansion . The company has successfully tailored its products, marketing strategies, and customer support to suit the unique needs and preferences of different cultures. This adaptability has been crucial in Apple’s ability to penetrate and dominate markets as diverse as China and India, where local competitors pose significant challenges.

Apple’s approach to globalization is not without its critics. The company’s tax strategy, which has been the subject of intense scrutiny, has raised concerns about corporate social responsibility and ethical behavior. As Apple continues to expand its global footprint, it will need to address these concerns and demonstrate its commitment to operating responsibly and ethically in all the markets it serves.

Looking to the future, Apple faces a number of challenges and opportunities. The company will need to continue to innovate and adapt to the ever-changing technological landscape . It will also need to navigate the complexities of global markets, ensuring that its products and services remain relevant and appealing to consumers worldwide.

Apple’s journey to global success is a compelling case study in how a company can build a strong brand and establish a lasting presence in the international arena. By embracing simplicity, innovation, and adaptability, Apple has demonstrated that it has the vision and resilience to continue to thrive in an increasingly competitive and interconnected world .

As Apple embarks on the next chapter of its global journey, it remains to be seen how the company will navigate the evolving landscape of technology, consumerism, and globalization. However, one thing is certain: Apple’s commitment to innovation and its ability to understand the needs of consumers worldwide will continue to be key drivers of its success in the years to come.

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Apple - The Development Of iEcosystem

Sarika Anand

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Apple.

The Apple logo is very identifiable whether you're walking down a crowded street in a major city or travelling through the highways. Whenever you spot a MacBook, an iPad, or an iPhone, you immediately recognize the logo and know who built it. Apple has accomplished more than just technological domination. The corporation has achieved something that many people strive for: international name recognition and a reputation that will outlast everyone alive today.

The company's tagline from 1997 to 2002, "Think Different," may have contributed to Apple's success. While not always hailed as a triumph, it is the result of foresight in the current competitive market. While many of us possess Apple devices, few are familiar with their history. When did Apple get its start, and how popular was it at its inception? When did Apple become well-known? And why did Apple come so close to going bankrupt? However, such achievement does not happen instantly and is difficult to duplicate. So, what is this mysterious Apple sauce? Let's have a look.

Apple - Company Highlights

About Apple, and How it Works? Apple - Industry Apple - Name, Logo, and Tagline Apple - Founders Apple - Startup Story Apple - Apple without Jobs Apple - The Fall Apple - When Did It Become A Big Name? Apple - Vision, and Mission Apple - Business Model Apple - Investments Apple - Acquisitions Apple - Competitors Apple - Future Plans

About Apple, and How it Works?

Apple Inc. is a global technology company headquartered in Cupertino, California, that specialises in portable electronics, software applications, and internet services. Apple is the fourth-largest personal computer vendor by unit sales, the world's second-most valuable company, the largest information technology company by revenue (totalling US$365.8 billion in 2021) and the second-largest mobile phone manufacturer. Along with Amazon, Alphabet, Microsoft, and Meta, it is one of the five American behemoths in information technology businesses.

Apple Inc. produces, builds, and sells computers and associated computing and communication devices, as well as services, software, networking solutions, and peripherals. Apple distributes its goods through its online shops, retail locations, direct sales representatives, resellers, and third-party wholesalers all around the globe.

The iPhone is Apple's series of cell phones that run on Apple's operating system called iOS. The Mac range of computers is centered also on the business's macOS operating system.

The iPad is a range of multi-purpose tablets from Apple that run on the iPad OS operating system. Apple TV, Air Pods, Apple Watch, Home Pod, Beats products, iPod touch, and other Apple-branded and third-party accessories are included under Home, Wearables, and Accessories.

The Company's wireless headphones that interface with Siri are known as Air Pods. The Apple Watch is the firm's smartwatch series. AppleCare, Advertising, Cloud Services, Digital Content, and Payment Services are among its offerings.

Apple - Industry

The worldwide economy has been severely impacted by the COVID-19 pandemic . Many end-user sectors, including electronics manufacturing, have been impacted. According to data from an IPC study conducted in March 2020, 40% of global electronics manufacturers and suppliers polled anticipate that the COVID-19 outbreak will have the greatest impact on consumer electronics. Another 24% of respondents said that industrial electronics would be the worst hit, with 19% predicting that the automotive electronics category would be the most brutal damage.

Electronic computers, such as mainframes, laptops, pcs, workstations, and software services, as well as computer peripheral devices, are manufactured by companies in this business. Apple, Hewlett Packard Enterprise, Dell, IBM, Lenovo (Hong Kong), ASUS (Taiwan), and Canon (Japan) are the companies that belong to this sector or industry. Annual global unit sales for 2021 hit 340 million units, up 15% from the previous year. With large exports, Europe, Africa, and the Middle East, as well as the Asia Pacific, excluding Japan, led to the rise of this industry. During the projected period, which is 2021-2026, the Electronics Manufacturing Services Market is estimated to grow at a CAGR of 9%.

Apple - Name, Logo, and Tagline

Jobs revealed in his biography written down by Walter Isaacson that he was now on one of his fruitarian diets. He was driving back from an apple farm when he came up with the name for the firm that would transform his life. Steve Wozniak's book, "iWoz: Computer Geek to Cult Icon," confirms this. Wozniak, who drove Jobs home from the airport following that trip, claimed that the firm name came to him during the journey. According to Jobs, the "apple orchard" he mentioned was a commune.

According to Jobs' biography, he believed the name "Apple Computer" sounded "energetic, fun, and not intimidating" - all crucial elements for a firm that intended to transform computing and make it far more approachable. And, that's where the logo came from.

Apple's tagline says, "Think Different."

Apple - Founders

Steve Jobs, Ronald Wayne, and Steve Wozniak founded Apple Computers Company as a business deal on April 1, 1976.

Steve Jobs was the co-founder and former CEO of Apple and Pixar Animation Studios. Jobs attended Reed College in Portland, Oregon after graduating from Homestead High School in Cupertino, California in 1972. He dropped out after one semester and went on to study philosophy and other cultures.

Steve Jobs had a keen passion for technology, therefore he went to work for Atari Inc, a major video game producer at the time. He became acquainted with Steve Wozniak, a fellow designer, and attended Homebrew Computer Club meetings with him. On August 24, 2011, Jobs resigned as Apple's CEO and became Chairman of the Board of Directors. Jobs passed away on October 5, 2011.

Ronald Wayne

Ronald G. Wayne is mainly remembered as one of the co-founders of the Apple tech firm, with Steve Jobs and Steve Wozniak, the company's primary drivers. It was a brief journey compared to the years he spent inventing and manufacturing slot machines and other professional gaming devices. He's a skilled innovator with over a dozen US patents under his belt, covering a wide spectrum of essential concepts.

Steve Wozniak

For the past three decades, Steve Wozniak has been a Silicon Valley star and philanthropist. His design of Apple's original line of devices, the Apple I and II, impacted the popular Macintosh.

With Wozniak's Apple I personal computer, Wozniak and Steve Jobs launched Apple Computer Inc. in 1976. He unveiled his Apple II personal computer the next year, which had a central processing unit, a keyboard, colour graphics, and a floppy disc drive.

Wozniak was active in several corporate and humanitarian endeavours after leaving Apple in 1985, concentrating mostly on computer capabilities in schools and emphasising hands-on learning and promoting student creativity.

Apple - Startup Story

Steve Jobs, Steve Wozniak, and Ronald Wayne created Apple in 1976 to sell Wozniak's hand-built PC, the Apple 1. The Apple 1 was supplied as a motherboard that had a Central processing unit, RAM, and some rudimentary textual-video chips. It had no built-in keyboard, monitor, casing, or other Human Interface Devices at the time.

The Apple 1 was released in July 1976 and sold for $666.66. Only a few weeks after the firm was created, Wayne chose to quit. He accepted an $800 check, which was worth about $72 billion forty years later. Wayne was the one who hand-drew the initial Apple logo, which was later replaced with Rob Janoff's bitten apple symbol in 1977.

On January 3rd, 1977, Apple Computer Inc. was founded. Mike Markkula, who was interested in the Apple-1, gave the team the necessary funds and commercial acumen. Mike Markkula, the third employee, owned a third of the firm. He nominated Michael Scott as the company's first president and CEO because he believed Steve was too young and not responsible enough to handle the role.

The Apple II, designed by Wozniak, was released in 1977. The Apple II computers were able to stay on top of market leaders Tandy and Commodore PET thanks to VisiCalc (the world's first 'killer-app'), a revolutionary spreadsheet and computing software. Because of its office compatibility, VisiCalc provided customers with another reason to acquire the Apple II. The Apple II was able to change the computer industry by introducing colour graphics. Apple had a genuine office with many workers by 1978, as well as an Apple II production sector.

Revenues for Apple doubled every four months in the following years. Between September 1977 and September 1980, their annual revenues increased from $775,000 to $118 million (an average annual growth rate of 533 per cent).

On December 12, 1980, Apple came out publicly for $22 per share. Apple's $4.6 million shares sold out very instantly, raising more money than just about any other IPO since Ford Motor Company in 1956. Steve Jobs , the largest shareholder, gained $217 million from the IPO. The company's IPO also made 300 additional people millionaires overnight.

Apple - Apple without Jobs

As tensions between Jobs and John Sculley, the company's third CEO, developed, Jobs sought to depose Sculley through a revolt, which collapsed. Apple's board of directors sided with Sculley and relieved Jobs of his work responsibilities. Jobs subsequently left his position and started NeXT, a firm that makes powerful workstations. Around the same time, Steve Wozniak sold most of his stock, and left the company, claiming that the firm was heading in the wrong way.

With Jobs gone, the board members were willing to decide what type of computers Apple might create. They chose to sell more costly Macs to high-end clients. Because Steve Jobs was resistant to raising prices, this strategy could not be implemented until after he had departed. They concluded that even if lesser units are sold, profitability will be comparable or greater. This approach was known as "55 or die," and Jean-Louis Gassée required that the Macintosh II had to make at least 55% profit per unit. Sculley hired Gassée to take the role of Steve Jobs.

Although Apple computers were more costly than other computers on the market, they offered advantages such as the UI that attracted customers. In 1991, Apple released the PowerBook laptop with the System 7 operating system. System 7 was responsible for providing the Macintosh OS colour, and it was utilised until 2001 when OS X was introduced.

Apple attempted to expand into new areas throughout the 1990s. Gassée was also involved in the creation of innovative products like the eMate and the Newton MessagePad, with the hope that they would propel the business to an unprecedented level.

Apple - The Fall

When IBM clones became inexpensive and Microsoft's influence grew in the latter part of the decade, Apple's "55 or die" strategy failed. Even while Macs had an extensive software library, they were constrained. On the other hand, Windows 3.0 was on sale for low-cost commodity machines.

Apple intended to re-enter the industry, so they released a new range of devices called the Quadra, Centris, and Performa. Because Apple computers were only accessible by mail or authorised dealers at the time, the Performa was designed to be a stocking item for lifestyle merchants and department stores. Back then, there has been no Apple Stores. Customers, on the other hand, were confused by this since they didn't comprehend the differences among the variants.

Apple has tried portable CD audio players, digital cameras, speakers, TV appliances, and other items, but they all failed. Apple's stock price and market share dropped sharply. To compound the error, Sculley spent a significant amount of time and money porting System 7 to the new IBM/ Motorola PowerPC CPU rather than the Intel processor. Apple had no luck regaining market share since most software was designed on Intel CPUs, which were cheaper.

The Apple board had enough with the very disappointing line of devices and the pricey choice to switch to PowerPC. Sculley was then replaced as CEO by Michael Spindler, a German expatriate who had worked with Apple since the 1980s. Gil Amelio succeeded Spindler as CEO in 1996.

Amelio implemented significant reforms, including mass layoffs and cost reductions. His term was also marred by the shares of Apple hitting a 12-year low. In February 1997, Amelio chose to buy Jobs' NeXT Computer for $429 million, bringing Steve Jobs back to Apple.

Apple - When Did It Become A Big Name?

The iPod, another Apple invention, was introduced in 2001. It was advertised as having thousands of music tracks worth of memory on its 5GB hard drive, which was an astonishing accomplishment for an MP3 player at that very time.

In 2003, Apple launched the iTunes Music Store to augment this. This followed the introduction two years before of iTunes, Apple's digital music software solutions. In 2003, Apple introduced a variant for Windows, and over the next several years, it began moving out to the rest of the globe. The iTunes Music Store was a convenient method for US residents to legally purchase music online; in 2006, it changed its name to the iTunes Store to include video services too. In 2005, Apple computers had Intel chips, allowing them to run Windows. All Apple PC hardware, including iMacs and MacBook Pros, will be Intel-based in the future.

In 2007, Apple Computer Inc. changed its name to Apple Inc. to reflect its expanded product line. 270,000 iPhones were ordered during the first 30 hours after its release, earning it the moniker "Apple's destiny changer."

The debut of the iPhone, iPod Touch, and iPad devices were met with overwhelming success. Apple introduced the App Store in July 2008 to offer third-party iPhone and iPod-Touch software. The App Store sold 60 million apps in a month and generated an average daily income of $1 million. Because of the iPhone's success, Apple became the world's third-largest mobile device provider.

In October 2010, Apple stock achieved an all-time high of $300. On August 24, 2011, Steve Jobs stepped down from his role as CEO owing to health concerns and was succeeded by Tim Cook . Jobs died on October 5, 2011, bringing an end to a great period for Apple and a major shift in the company's history.

Apple, on the other hand, continues to dominate the market with ground-breaking technical marvels.

Apple - Vision, and Mission

Apple's mission is “ to bring the best user experience to its customers through its innovative hardware, software, and services .”

Apple - Business Model

Apple's business model is divided into two parts: products and services. In 2021, Apple earned more than $365 billion in revenue, with $191.9 billion coming from iPhone sales, and $38.3 billion from accessories and wearables (AirPods, Apple TV, Apple Watch, Beats products, Home Pod, iPod touch, and accessories),  $35.2 billion from Mac sales, $31.86 billion from iPad sales, and $68.4 billion from services.

• Products - iPhone, Mac, iPad, as well as wearables, home, and accessory devices, are among the product lines (Air Pods, Apple-Watch and more)
• Services -  AppleCare+, Digital Content Stores and Streaming Services, and the AppleCare Protection Plan, Apple's Cloud Services, Licensing, and other services like Apple ArcadeTM, Apple News+, Apple CardTM, and Apple Pay, a cashless payment service, are all part of the services business.

Apple - Investments

Apple - acquisitions, apple - competitors.

Microsoft, Samsung, Lenovo, Dell, Sony, HP, Xiaomi, Asus, Huawei, and Oppo are the top competitors of Apple.

Apple - Future Plans

Every year in June, Apple has its global Annual Developers Conference, and in 2022, the keynote will be held on June 6. Apple will use the event to debut its next-generation software, which will be available in the autumn.

Apple is said to be developing a folding iPhone with a screen size of 7.5 to 8 inches and a release date of 2023 at the utmost. Apple is reported to be working on interactive virtual goggles with an inbuilt processor, dedicated high-end displays, and a Reality Operating System. The gadget will combine hand gestures, touch panels, and voice activation for interaction, and it is projected to cost around $3,000. In 2023, the AR/VR headset is projected to be released.

Apple is working on upgraded 14-inch and 16-inch MacBook Pro models with M2 Pro and M2 Max processors. The M2 Max processor will include a 12-core CPU and a 38-core GPU, and the new computers will be available in 2023.

The storyline of Apple's electric vehicle research has undergone numerous plot twists, but reliable Apple analyst Ming-Chi Kuo claims that the company is still targeting a completely autonomous automobile, instead of just a technology offering, with a launch date between 2023 and 2025.

Apple - FAQs

What does apple do.

Apple Inc. is a global software company headquartered in Cupertino, California, that specialises in portable electronics, software applications, and internet services

When was Apple founded?

Which companies do apple compete with.

Microsoft, Samsung, Lenovo, Dell, Sony, HP, Xiaomi, Asus, Huawei, and Oppo are some of the companies Apple competes with.

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Apple Inc. in 2020

By: David B. Yoffie, Daniel Fisher

After a decade as CEO, Tim Cook is facing one of his biggest strategic transitions of his tenure. While Apple had performed spectacularly well under Cook, Apple's core business was maturing. Sales of…

• Length: 31 page(s)
• Publication Date: Apr 6, 2020
• Discipline: Strategy
• Product #: 720454-PDF-ENG

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After a decade as CEO, Tim Cook is facing one of his biggest strategic transitions of his tenure. While Apple had performed spectacularly well under Cook, Apple's core business was maturing. Sales of iPhones, iPads, and Macs were flat or down. However, Apple's new hardware-Apple Watch and Airpods-as well as services were growing rapidly. This case explores Apple's history and Cook's strategic options for driving new hardware and services into Apple's mainstream in the next decade.

Learning Objectives

This case can be used for several purposes, including industry analysis, introduction of complementary assets, sustaining competitive advantage and expanding corporate scope.

Apr 6, 2020

Discipline:

Harvard Business School

720454-PDF-ENG

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• January 2009 (Revised May 2012)
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Design Thinking and Innovation at Apple

• Format: Print
• | Pages: 14

About The Author

Stefan H. Thomke

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Table of Contents

Apple target audience , marketing strategy of apple, 5 key takeaways from apple marketing strategy, a case study on apple marketing strategy.

Breaking through with several inventions in the world of technology, Apple Inc. has been carving infinite milestones ever since its inception. Even though its innovations speak for themselves, this highly-valued giant corporation has invested heavily in its marketing team to soar high up as a tech maestro. Apple Inc. realized the role of brand marketing in the success of a venture from the start as a crucial way to connect with its target audience. This brand's marketing is so vigorously carried out and well-thought that it is often an inspiration and a place of research for marketing professionals. Here we bring you a well-curated case study on Apple's marketing strategy, the key takeaways to learn from this venture, and how to incorporate the same in your business and marketing strategies. 

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To understand its key strategies for marketing Apple products, let's first understand what Apple's target audience is like. Apple's target audience consists of middle-class and upper-class users who can pay higher for products that provide them with an incredible user experience. This means that these users have a higher disposable income and are willing to pay more for as high-priced products as Apple's. 

Let's take a look at Apple's target audience with this comprehensive analysis sourced from Business Research Methodology's report on Apple Segmentation :

Besides this primary classification, Apple also explicitly targets professionals working in specialized software like music, video, photography and all kinds of design careers. These working professionals prefer Adobe’s Final Cut, Photoshop and related editing software which work well with Macbooks and IPads than other operating systems. 

Even better, business professionals prefer Apple products such as iPods and Macbooks for their day-to-day work. Products like iPads and Macbooks are lighter and portable, so they are often selected by students (upper-class), educational institutions and teaching. 

Now coming to the marketing strategy of Apple, it is a combination of well-designed products with the right user experience, promotional campaigns, distribution, and pricing. Let’s take a look at all these features of Apple marketing strategy in detail:

Focus on Finer User Experience

Apple’s branding strategy is based on its stylish, more straightforward and lush products that focus on providing a user interface that is very simple to use and learn. They are lighter, easy to carry as well as durable. This minimal look and user experience makes it a perfect sell to its target audience, which comes from the middle to upper class.

Suave Yet Simple Advertising

Storytelling is such an essential part of every Apple ad as well as a marketing campaign. Often these ads focus on minimal design as well as high-quality images. They are either blended with music or a simple story. Apple consciously ensures that its advertising and marketing don’t use too much jargon or filler language in its ads. Instead, it shines a light on the product to let it speak for itself without showing what the price is like or using complicated words for its features.

Targeting the Right Markets

Apple is excellent at tapping into its target audiences like a genuine tech witch who knows their aspirations, preferences and pain points! Its market research is always on-point and crystal clear in its products, curation, and features. 

Here are the major critical takeaways from Apple Marketing Strategy:

• Tapping into your target markets and audience is the key to curating and selling user experiences that value the preferences of its people. 
• With simplicity and finesse in design, the right products with minimal designs and features can create a perfect impact for your brand.
• Incorporating emotion in your advertising and marketing can also help you connect with your audience better. 
• Don’t exaggerate the copy and conceptualizing of your advertising and marketing campaigns and prefer the “less is more” approach. Create shorter yet emotional and empathetic ads to captivate your target audience.
• When you create an international brand value through quality and minimal, sophisticated design, you don’t need to compete in terms of price. Instead, your price will set you apart for your user experience and design features.

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Thus, we hope we have helped you understand what Apple’s marketing strategy is about! Want to read more case studies about top brands and their marketing strategies? Join Simplilearn’s specialized PGP Digital Marketing certification in collaboration with Meta Blueprint and Harvard Publishing. This certification can help you level up your career in digital marketing through case studies, industry projects, masterclasses from industry experts, ad marketing tools from Facebook, Google, and related marketing tools. 

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