Apple and OpenAI were sued on 25 August in a U.S. federal court in Texas by Elon Musk’s AI startup xAI and his social network business X. They allegedly accused Apple and OpenAI of illegally collaborating to stifle competition in the field of artificial intelligence.
Allegations of Market Lock-In and App Store Bias
In order to maintain their monopolies and prevent the expansion of new businesses like xAI, the lawsuit claims that Apple and OpenAI “locked up markets”. Apple and OpenAI attempted to prevent xAI’s products, such as the Grok chatbot and X app, from being available on the Apple App Store, according to the complaint.
It claims that if it weren’t for its unique agreement with OpenAI, Apple would have given them more publicity, according to Reuters.
Musk’s Warnings and Apple–OpenAI Partnership
Regarding the case, Apple and OpenAI have not yet responded. Musk had already threatened to sue Apple earlier this month. He wrote on X that it was “impossible for any AI company besides OpenAI to reach #1 in the App Store” due to Apple’s actions.
ChatGPT Integration Into Apple Devices
According to sources, Apple and OpenAI have partnered to integrate ChatGPT into Macs, iPhones, and iPads. According to the lawsuit, OpenAI has an edge thanks to ChatGPT integration, whereas Apple is ranked against “super apps” and AI chatbots like Grok.
As stated in the CNBC story, the court filing claims that competition will continue to be hindered and competitors like xAI will continue to suffer unless judges stop Apple and OpenAI’s efforts
Musk vs Altman: From Co-Founders to Rivals
In March, Musk’s business xAI paid $33 billion to acquire X. He intended to use it to enhance AI chatbot training. Additionally, Musk has linked Tesla vehicles to his Grok chatbot. Less than two years old, xAI faces competition from Chinese firm DeepSeek, Microsoft-backed AI initiatives, and OpenAI.
Musk’s California Lawsuit Against OpenAI
Additionally, Musk is suing OpenAI and its CEO, Sam Altman, in California. His goal is to prevent OpenAI from becoming a for-profit company instead of a nonprofit. According to Reuters, Musk and Altman co-founded OpenAI as a nonprofit in 2015.
Altman’s Response to Musk’s Claims
Apple’s App Store has already been sued. A judge decided that Apple must permit greater competition in app payments in the instance of Epic Games, the producer of the “Fortnite” video game. In his response to Musk on X, OpenAI CEO Sam Altman described Musk’s assertion as “remarkable”.
He said that Musk himself manipulates X to harm competitors and benefit his own businesses. According to the CNBC article, an Apple representative previously stated that the App Store is “fair and free of bias” and now displays thousands of apps using numerous signals.
Even after Apple and OpenAI announced their partnership, some users on X Community Notes noted that competing chatbot apps, such as DeepSeek and Perplexity, were still ranked #1 in the App Store. The ongoing conflict between Altman and Musk, two erstwhile comrades who now disagree over artificial intelligence, has a new chapter thanks to this lawsuit.
Quick Shots
•Filed on 25 August in Texas federal
court by xAI & X (Elon Musk’s companies).
•Accuses Apple & OpenAI of illegal
collaboration to stifle AI competition.
•App Store bias: Musk alleges Apple
blocked/promoted apps unfairly.
•Musk earlier warned: “Impossible for
any AI company besides OpenAI to reach #1 in App Store.”
Apple is negotiating to get the US rights to broadcast Formula 1 as the internet giant expands its live sports programming and builds on the success of its popular film based on the racing car series.
Various media reports stated that when the broadcast deal opens up next year, the iPhone manufacturer plans to challenge Disney’s ESPN, the current American broadcaster of Formula 1.
Considering that Brad Pitt’s F1 is the company’s first major box office hit since it started producing original content for its Apple TV+ streaming service, demand is high.
Liberty Media, the US owners of Formula 1, hopes that by drawing in younger, female, and American viewers, the movie and Netflix’s Drive to Survive documentary series will have raised the value of the racing rights.
F1’s Box Office Collection
Apple’s highest-grossing film to date is F1, which has grossed approximately $300 million at the box office. This production marks a transition to mainstream spectacles following the commercial failures of Killers of the Flower Moon and Napoleon.
With a 2022 agreement with Major League Baseball to stream games on Friday nights and a more comprehensive agreement with Major League Soccer in North America, Apple has already ventured into the live sports streaming space.
The race car series’ current television partner, ESPN, brings in approximately about $85 million annually. Additionally, F1 charges viewers directly for live race streaming on its own streaming service in the United States.
Prior to the debut of the F1 movie, analysts at Citi had previously predicted that the next US broadcast deal for Formula One may be worth $121 million annually. In 2024, its overall revenue from media rights increased by nearly 8% to approximately $1.1 billion.
According to someone with intimate knowledge of the situation, F1 has not yet decided on its future broadcasting arrangements, and ESPN may still hold the rights.
Formula One is no Longer a Monopoly of ESPN
ESPN had a window of opportunity to negotiate a contract without having to contend with other bidders. But last year, that window closed without a contract, so competitors might now enter the market.
It is anticipated that other bidders would pursue the rights as well. Liberty Media prioritises the US market, and in recent years, it has expanded its race calendar to include Miami and Las Vegas in addition to its grand prix in Austin, Texas.
In 2026, Cadillac, a US brand supported by General Motors and billionaire financier Mark Walter’s TWG Motorsports, will become the eleventh team to compete.
From 554,000 viewers per race in 2018, the year after Liberty Media acquired Formula 1, to around 1.1 million in 2024, F1’s audience on ESPN has doubled. F1 saw an average of 1.3 million spectators over its first 10 events this year, with record attendance in Australia, China, Monaco, Spain, Canada, and Austria.
The $100 billion in services revenue that Apple generates annually, which includes goods like the App Store, iCloud, and Apple Pay, does not include money from Apple TV+ or its production division, Apple Studios.
After long-time operations chief Jeff Williams plans to retire, Apple CEO Tim Cook has made a significant leadership change by appointing Indian-origin executive Sabih Khan as the company’s new COO.
Khan, who has worked for Apple for thirty years, has been instrumental in creating and overseeing the company’s international supply chain.
Khan was born in Moradabad, Uttar Pradesh, and spent some time in Singapore. His ascent to the second-ranking spot at Apple is a landmark achievement for Indian-origin talent in the global computer sector.
From Moradabad to USA
Born in Moradabad, Uttar Pradesh, in 1966, Sabih Khan later relocated to Singapore with his family. After moving to the US, he graduated from Tufts University with two bachelor’s degrees in economics and mechanical engineering.
He then went on to Rensselaer Polytechnic Institute to acquire a master’s degree in mechanical engineering. Khan was an applications development engineer at GE Plastics before joining Apple.
He joined Apple in 1995 as a member of the procurement team and worked his way up to the position of Senior Vice President of Operations in 2019. Khan has been in charge of Apple’s global supply chain, manufacturing, product fulfilment, procurement, and logistics in this capacity.
His leadership was also evident in Apple’s supplier responsibility initiatives, which prioritised environmental sustainability and worker rights.
Khan a ‘Brillian Strategist’: Cook
Apple said in a statement that Jeff Williams will retire later this year and hand over his duties to Khan by the end of the month. Tim Cook hailed Khan as a “brilliant strategist” and one of the main designers of Apple’s worldwide supply chain in his statement.
Cook credited Khan with helping Apple reduce its carbon footprint by more than 60%, highlighting his efforts in sophisticated manufacturing, expanding production in the US, and sustainability programs.
Cook expressed complete faith in Khan’s ability to influence Apple’s future, saying, “Above all, Sabih leads with his heart and his values.”
With this change, Khan assumes a position that places him among the most powerful executives in the most valuable corporation in the world, and Tim Cook will now receive direct reports from Apple’s design team.
India Benefiting from US-China Trade Tension
The shifting of Khan coincides with Apple’s efforts to lessen the effects of US tariffs by moving some of its manufacture from China to India.
Trade conflicts between the US and China, which started under former President Donald Trump, are the direct cause of Apple’s entry into India.
These tensions have now developed into strategic actions on both sides, with China retaliating with limits on technology, talent, and raw materials and the United States providing tax incentives and trade agreements to nations like Vietnam and India.
Though it might not seem as dramatic, China’s most recent action might be just as destructive as a trade battle. The risk is growing on both sides for Apple, which intends to manufacture the majority of iPhones for the US in India by 2026.
Apple is the biggest name in the technological industry. With many amazing products, Apple has very few competitors. Well, the man behind the success and rise of the company is Steve Jobs.
He is regarded as one of the greatest entrepreneurs of all time and is an inspiration for many. Under his leadership, the company started to produce revolutionary technologies, some of the most famous products are the iPhone and iPad. Due to the success of the company, the products are a symbol of economical status in the present generation.
Now the question arises who made Apple the brand it is known for today? And how did Steve Jobs become successful? Steve Jobs entrepreneur story is a powerful example of innovation, resilience, and transforming the tech industry through vision and creativity. Read on to know more about the success story of Steve Jobs.
Steve Jobs Information
Name
Steve Jobs
Born
24 February 1955, San Francisco, California, United States
Died
5 October 2011, Palo Alto, California, United States
Citizenship
American
Education
Reed College, Portland, Oregon
Title
Co-founder, Chairman, and CEO of Apple Inc.
Occupation
Entrepreneur, Industrial designer, Investor, Media proprietor
Steve Jobs was an American inventor and entrepreneur who was the co-founder, chief executive, and chairman of Apple computers which became the biggest name in the technology sector.
The company’s product has dictated the evolution of modern technology. Steve was born in 1995 to two University of Wisconsin graduate students who gave him up for adoption.
Since his childhood, Stevewas smart but directionless. He had dropped out of college and started off experimenting with different sectors before co-founding Apple with Steve Wozniak in 1976. After that, Jobs left the company in 1985 and launched Pixar Animation Studios. Later on, after a decade, Jobs returned to the company.
Steve Jobs Success Story
Steve Jobs – Early Days
Steve was born on February 24, 1955, in San Francisco, California. He lived in Mountain View, California, this place was later renamed the Silicon Valley. During his childhood, Jobs and his father worked on electronic equipment in the family garage. His father used to demonstrate to him how to take apart and reconstruct electronics. This hobby instilled confidence, tenacity, and mechanical prowess in Jobs. Therefore, the path to excellence started to off from his family’s garage.
Jobs was always an intelligent and innovative thinker since his childhood. However, his youth was struck in the quicksand of formal schooling education. Due to the boredom, he was a prankster during his days in elementary school, and hence, his fourth-grade teacher needed to bribe him to study. He tested so well that the administrators wanted him to skip ahead to high school. However, his parents declined that offer.
Post high school, Steve enrolled at Reed College in Portland, Oregon. There too, he was frustrated and dropped out of college and spent the next year and a half dropping in on creative classes at the school. He had developed a love of typography during his struggling days.
In 1974, Jobs took over the job of a video game designer with Atari. A few months later, he left the company and travelled to India.
Job Application – Steve Jobs (Aged 18)
Steve Jobs – How Did He Start Apple
During the days when Jobs was enrolled at Homestead High School, he was introduced to Steve Wozniak. Later on, the duo co-founded Apple. During an interview, Wozniak has stated that their partnership was successful because of their love for electronics.
They used to work for hours with digital chips, and very few had an idea about chips during that time. Although Wozniak had designed many computers before Jobs did, both of them shared a common interest that fueled their journey to success.
Steve Jobs with Steve Wozniak
The start of their entrepreneurial venture was in 1976 when Jobs and Wozniak started a company named Apple Computer. The first headquarters of the company was at Jobs’s family garage. Initially, they funded their entrepreneurial venture by Jobs selling his beloved bus and Wozniak selling his scientific calculator.
Later on, the duo is credited with revolutionizing the computer industry with their company by democratizing the technology and making machines smaller, cheaper, and more accessible to everyday customers.
Wozniak had conceived of a series of user-friendly personal computers, and with Jobs in charge of the marketing sector of the company, they marketed the computer for $666.66 each. The Apple I earned the venture around $774,000! After three years of Apple’s second model, the Apple II, the company’s sales increased by 700 percent to $139 million.
In 1980, the product became a publicly-traded company and comprised a value of $1.2 billion by the end of the first day of trading. Alter on, Jobs asked the marketing expert John Sculley of Pepsi-Cola to accept the role of CEO of Apple. However, the next several products of the company experienced negative feedback due to the flaws in the products. Hence, IBM surpassed Apple in sales and Apple had to compete with a PC dominated world by IBM.
The year 1984 experienced the release of Macintosh, it was both romantic and creative. However, despite positive sales and performance superior to IBM’s PCs, the product was still not compatible with IBM. Later on, Jobswas pushed into a marginalized position in the company and left the company in 1985.
Steve Jobs – Founding NeXT, Returning to Apple, and Pixar
Post his tenure at Apple, Jobs began a new hardware and software enterprise named NeXT. The brand floundered in its attempt to sell its operating system to the public and later on, was taken over by Apple in 1996 for $429 million.
In 1997, Jobs returned to Apple and came back with a new management team. The team under Steve altered stock options and self-imposed an annual salary of $1 per year.
Under Jobs, the company came back on track and his products like iMac gained positive reviews from the customers. In the upcoming years, Apple introduced many more revolutionary products like Macbook Air, iPod, and iPhone. The competitors struggled to produce similar technologies and this became the reason for the success of Apple and Steve Jobs. Later on, Apple became the face of technology.
In 1986, Steve purchased an animation company from George Lucas. This brand was called Pixar Animation Studios. Jobs had invested $50 million of his own money into the company. The studio became popular in the industry by producing many iconic movies like Toy Story, Finding Nemo, and The Incredibles. Pixar’s movies earned the company a whopping $4 billion. In 2006, it merged with Disney and in this case, Jobs was the largest shareholder of the acquisition. In 2024, Steve Jobs’ net worth is estimated to be $7 billion, but he could have been significantly wealthier if he had held onto his Apple shares.
Steve Jobs – Philanthropy
Unlike many billionaires, Steve Jobs was not widely known for philanthropy and faced criticism for not donating as much as his peers. He was a very private person, which led some to believe he may have made anonymous donations over the years. Here are some of the key philanthropic contributions made by Steve Jobs:
After leaving Apple, Jobs created the Stephen P. Jobs Foundation, initially focused on vegetarianism and nutrition, but later shifted to social entrepreneurship.
When Jobs returned to Apple in 1987, he cut Apple’s philanthropic programs to reduce costs. This decision contributed to Apple’s image as one of the least charitable tech companies.
Later in his life, he donated $50 million to Stanford Hospital and gave an undisclosed amount toward AIDS research.
Jobs is mostly remembered and admired for his innovative business achievements, rather than for philanthropy.
Steve Jobs, Apple’s co-founder, shared many powerful quotes that can inspire you as you chase your own business dreams.
Innovation distinguishes between a leader and a follower.
Be a yardstick of quality. Some people aren’t used to an environment where excellence is expected.
You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in your future.
Don’t let the noise of others’ opinions drown out your own inner voice.
Stay hungry. Stay foolish.
Your time is limited, so don’t waste it living someone else’s life.
I’m convinced that about half of what separates the successful entrepreneurs from the non-successful ones is pure perseverance.
You can’t just ask customers what they want and then try to give that to them. By the time you get it built, they’ll want something new.
Conclusion
Steve Jobs is regarded as a marketing genius by many as he made Apple products a status symbol for the next generation. Due to his strong personality and intelligence, Steve Jobs will be remembered as the most iconic entrepreneur ever!
FAQ
Who is Steve Jobs?
Steve Jobs is an American entrepreneur and co-founder of Apple. He is known as the man behind the success of Apple.
How did Steve Jobs start Apple?
Steve Jobs with Steve Wozniak started Apple in his parent’s garage. Steve Wozniak sold his scientific calculator and Steve Jobs sold his Volkswagen bus to fund the business.
Is Steve Jobs an entrepreneur?
Yes, Steve Jobs is an entrepreneur who co-founded Apple with Steve Wozniak.
Who is founder of Apple?
Steve Jobs and Steve Wozniak started Apple in 1976 with a capital of $1350.
Where did Steve Jobs grow up?
Steven Paul Jobs grew up in Cupertino, California. It is now known as Silicon Valley.
What made Steve Jobs successful?
Steven Paul Jobs was successful because of his strong vision, creativity, and focus on design and user experience. He had a unique ability to understand what people wanted before they knew it themselves. Jobs also pushed for perfection, inspired his teams, and made bold decisions that changed technology, from the Mac to the iPhone. His passion and persistence helped build Apple into one of the world’s most valuable companies.
How long did it take Steve Jobs to become successful?
Steve Jobs became successful in about 5 years after starting Apple in 1976. By 1980, Apple went public and made him a millionaire. However, his real global success came later with products like the iMac (1998), iPod (2001), and iPhone (2007) after returning to Apple in 1997. His journey had ups and downs, but his major success took about 20–30 years of vision and hard work.
Apple Inc., a trillion-dollar corporation, is a household name. Unboxing their premium products reveals the phrase “designed in California.” The company has a great reputation for having the best products and has a crazy fan following. People who use Apple products swear by the quality and religiously wait for the new launches and buy them.
However, nothing in life is flawless. The same may be said about Apple. Although the company has introduced several extremely unique, game-changing ideas, not every product has been well received by fans, and some have been huge disappointments.
But this hasn’t stopped the company from producing market-leading items regularly. However, the focus of this article is on Apple’s flop products, which have received widespread criticism from customers as they failed terribly in the market.
Let’s take a look at some of Apple’s failed products.
The Apple Newton was launched as a Personal Digital Assistant (PDA). The CEO at that time, John Sculley, led this idea of a personal digital assistant. The device had several features and task management applications. The Apple Newton is often cited among Apple failure products due to its poor handwriting recognition.
The main feature was the handwriting recognition one, where the device was able to understand and recognize different handwriting on the screen, but the outcome was disastrous. The device was nothing but a glitchy mess. Its ground-breaking idea was made fun of, and the company discontinued it after Steve Jobs came back to the company in 1998.
Apple tried hard to enter the gaming console world by launching a product called Apple Pippin. During the mid-90s, the company released a cross between a gaming console and a computer system. The Apple Pippin was a video game console that was released in 1996.
The computer contained the classic Mac OS. The product would have been better but the features were really poor. The product had only a 14.4 kb/s modem and had no support from major game corporations. And a big price of $599 didn’t help the product at all. Despite being marketed as a multimedia device, it failed to compete with other popular consoles like the Sony PlayStation and Nintendo 64 and was discontinued a year later. Apple Pippin was an Apple product that failed in the gaming industry.
3. Round Mouse
Product Name
Round Mouse
Launched In
1998
Discontinued In
2000
Price At Launch
NA
Apple Products That Failed – Apple USB Mouse
The company attempted to launch something unique and exciting but instead created one of the most disliked products in history. Apple thought they did something when they released the round-shaped mouse.
The company is known for its curved edges, but the limit was crossed when the round mouse was launched. Officially named the Apple USB Mouse (M4848), but famously known as the “Hockey Puck“. The mouse was round, with a two-tone design. It was called clumsy because it rotated while using it, was small in size, and was weird to hold and use. It was one of Apple flop products.
4. The Apple Macintosh Portable
Product Name
Apple Macintosh Portable
Launched In
1989
Discontinued In
1991
Price At Launch
$7,300
Apple Failed Products – Apple Macintosh Portable
The company’s first attempt at portable computers was a horrible disaster. The Apple Macintosh Portable – a 4-inch thick portable computer was not easy to carry and could not manage even simple tasks.
Even though the Macbooks we have now had the best performance and design, this was not the case back then. The Macintosh was slow and would not even turn on sometimes, even after plugging it in. The Apple Macintosh Portable is one of the Apple products that flopped due to its weight and high cost.
5. The Power Mac G4 Cube
Product Name
Power Mac G4 Cube
Launched In
2000
Discontinued In
2001
Price At Launch
$1,799
Apple Products That Failed – Apple Power Mac G4 Cube
The cube-shaped computer was aesthetically pleasing to the eye, unlike the previously mentioned Round Mouse, but apart from the looks, nothing was special. The Apple Power Mac G4 Cube device was not well received and everyone hated it. The system didn’t have any monitors and was extremely expensive. While it was praised for its design, it was considered too expensive and lacked the processing power of other desktop computers at the time. The Power Mac G4 Cube had style but poor sales, making it one of the notable Apple flops. After a year, the product was discontinued because it failed to impress Apple fans.
Apple attempted everything it could to make its U2 iPod a hit product, but no amount of marketing or promotion could save it. They collaborated with U2, a well-known Irish rock band, to release an iPod.
With a red-colored button wheel, U2 songs featured, and signatures of all the band members on the back, the branding was spot on. It was designed for fans, but it failed to impress the general public because it cost $50 more than the standard model. The U2 iPod is often seen as one of the worst Apple products because it offered little beyond branding.
7. Apple eMate
Product Name
Apple eMate
Launched In
1997
Discontinued In
1998
Price At Launch
$799
Apple Products That Failed – Apple eMate
Apple launched eMate in 1997, but it was discontinued after only 1 year. It was not available to the general public and was only for educational purposes. It was only seen at educational institutions.
Apple is secretive about it too, as they never released the sales of eMate. The product was a hybrid between a computer, a laptop, and a PDA. It was quite affordable too, with a price tag of just $799.
8. Macintosh TV
Product Name
Macintosh TV
Launched In
1984
Discontinued In
1994
Price At Launch
$2,495
Apple Failed Products – Apple Macintosh TV
In 1993, Apple released the gadget that prepared the way for the now-famous Apple TV. The device combined television with a computer, but one big limitation was that it could only accomplish one thing at a time. On its 14-inch screen, one can watch TV or use it as a computer, but not both at the same time. And all this came with a hefty price of $2,495.
Apple Products That Have Failed
9. eWorld
Product Name
eWorld
Launched In
1994
Discontinued In
1996
Price At Launch
$8.95 for a month
Apple Failed Products- Apple eWorld
The company tried to create a virtual world and an online community where people could hang out, send emails, and much more. Apple eWorld was really advanced for its time but failed to impress as it was expensive and only available for Macintosh users, which limited the market. It was pulled off the shelves in 1996 as it was highly unsuccessful.
10. The Apple III
Product Name
Apple III
Launched In
1980
Discontinued In
1984
Price At Launch
$4,340
Failed Apple Products – Apple III
The Apple III computer was business-focused but failed to impress as it was poorly designed with no cooling fans to provide a silent, quiet working experience, which led to overheating of the device and ruining several components of the computer. This extreme market failure tainted the company’s image, and it was discontinued in 1984.
Apple is known for coming up with innovative approaches and challenging old technologies, which is exactly what it did when it introduced FireWire, a USB competitor. It was claimed by the business to be a speedier alternative to USB.
Nobody noticed the change and continued to use the existing USB port. Hardware manufacturers did not include a FireWire port on their products, as to do so, they had to pay Apple for licensing, which was not worth it.
12. Apple Lisa
Product Name
Apple Lisa
Launched In
1983
Discontinued In
1986
Price At Launch
$9,995
Failed Apple Products – Apple Lisa
Apple Lisawas the world’s first personal computer with a graphical user interface. It was a step forward toward the future of personal computers. But the price tag of nearly $10,000 was way too much for the technology, the overall performance was not even good, and the fact that it was not compatible with many software applications led to poor sales. The company only managed to sell 10,000 Lisa in two years. It was discontinued in 1986. Apple Lisa is on the list of failed products because of its high cost and low adoption.
13. 20th Anniversary Macintosh
Product Name
20th Anniversary Macintosh
Launched In
1997
Discontinued In
1998
Price At Launch
$7,499
Failed Apple Products – Apple 20th Anniversary Macintosh
Apple 20th Anniversary Macintosh is an iconic piece of history as it was released to celebrate Apple’s 20 years of existence and business. It is also known as “Spartacus”. The system was technically advanced and had many features like an LCD screen, Bose sound system, FM radio, and many more. However, it didn’t do well because of the hefty price of $7,500. Apple even reduced the price to $1,995 to clear out the stock and get rid of the failed product.
14. iTunes Ping
Product Name
iTune Ping
Launched In
2010
Discontinued In
2012
Price At Launch
NA
Apple Failed Products – Apple iTunes Ping
iTunes Ping was a music-based social networking service that was launched in 2010 for connecting with your friends and musicians. But when the product launched, it was not connected to Facebook (Now Meta), so it was really difficult to find friends on that, and the overall service was not up to the mark; hence, it was considered an unsuccessful product of Apple.
15. MobileMe
Product Name
MobileMe
Launched In
2008
Discontinued In
2012
Price At Launch
$99
Failed Apple Products – Apple MobileMe
Before iCloud, the company had a similar thing called MobileMe, which was a collection of online services with a subscription of $99 per year. The features include storage space, a synced calendar and contacts, and so much more. But the service was not well received as people were unable to use it. People who were trying to subscribe couldn’t sign up, and the ones who had subscribed were not able to access the service. It was a total flop and was shut down in 2011.
In 1995, Apple tried to launch cheaper computer systems while trying to cut costs. They destroyed their reputation as the computers were horrible to use and became popular among the population as “Macs to be avoided at all costs”. The hardware was terrible, and the systems were painfully slow. Due to this, many people started believing that Macs were overall inferior and slower than Windows, which damaged Apple’s sales in the 90s.
17. Homepod Original
Product Name
Homepod Original
Launched In
2018
Discontinued In
2021
Price At Launch
$349
Apple Failed Products – Apple Homepod and Homepod Mini
Apple launched its smart speaker, HomePod, in 2018. While it received positive reviews for its sound quality, the price tag was so high as compared to other smart speakers on the market and failed to gain much traction. The later release of a smaller, cheaper version, the HomePod Mini, was the final nail in the coffin for the original HomePod.
After receiving criticism from the buyers, the company permanently reduced the price to $299 in 2019. That still didn’t help, and the company finally discontinued it in 2021.
18. iPod Hi-Fi
Product Name
iPod Hi-Fi
Launched In
2006
Discontinued In
2007
Price At Launch
$349
Apple Failed Products – Apple iPod Hi-Fi
The main concern with the discontinued Apple products has always been the hefty price and the terrible performance. The same goes for the next Apple product, too. In 2006, Apple released the Hi-Fi, a high-end speaker system designed to work with iPods. The iPod Hi-Fi was meant to capitalize on the popularity of portable speakers with iPod docks. But the price of the speaker was so high that the general public didn’t buy it at all. We can’t blame them because the product was $349, which was significantly more expensive than any other competing brand. While it received positive reviews for its sound quality, it was considered too expensive and failed to gain much traction in the market. It was one of the Apple products that
Apple tried to replace the pre-installed Google Maps on its devices by coming out with its own Apple Maps. It was for iPhones and iPads, but it was full of distorted images and wrong directions, and the final product was so glitchy and terrible that the CEO, Tim Cook, had to apologize for it. Apple didn’t discontinue the product and launched a newer version that was much better.
20. iPhone 6
Product Name
iPhone 6
Launched In
2014
Discontinued In
2016
Price At Launch
$649
Apple Failed Products – Apple iPhone 6
Who doesn’t remember the infamous Bend Gate? There was a time on YouTube when all the tech channels were bending the iPhone 6 in their reviews. It became such a huge problem for Apple as it showcased its phone as not durable and of poor quality. The company claimed that it was only a case for a few iPhone owners and that a replacement would be conducted for those who were facing this issue.
Apple Product Failures
21. Apple Butterfly Keyboard
Product Name
Apple Butterfly Keyboard
Launched In
2015
Discontinued In
2020
Price At Launch
–
Failed Apple Products – Apple Butterfly Keyboard
Apple’s most significant modern technology setback began in 2015 with the release of the 12-inch MacBook, which featured a keyboard with low-profile “Butterfly” switches. Although the ultra-slim design of the notebook was generally praised, the keyboard faced widespread criticism for its stiff and unresponsive feel, alongside complaints about the limited number of ports.
22. Airpower
Product Name
Airpower
Launched In
2018
Discontinued In
2019
Price At Launch
$199
Apple Product Failures – Airpower
AirPower was an unreleased wireless charging mat by Apple, designed to charge three devices simultaneously. Announced in 2017, it was canceled in 2019 due to multiple development challenges, including overheating, inter-device communication issues, and mechanical and interference problems. These technical difficulties prevented the product from meeting Apple’s standards.
23. Macintosh Copland
Product Name
Macintosh Copland
Launched In
1994
Discontinued In
1996
Price At Launch
Never released as a product
Apple Failed Products – Copland
Apple’s Copland project, intended to revolutionize the Mac OS, failed due to overambitious goals, leadership changes, and significant technical challenges, including stability issues and missed deadlines. These problems, combined with competitive pressure from emerging operating systems, led to the project’s cancellation in 1996. Apple ultimately shifted focus, acquiring NeXT to develop what would become macOS. Apple’s Copland was one of the most unsuccessful Apple products.
24. iPod Socks
Product Name
iPod Socks
Launched In
2004
Discontinued In
2012
Price At Launch
$29
Apple Product Failures – iPod Socks
iPod Socks, a set of colorful knit covers for iPods, was launched by Apple in 2004. They were designed to protect the devices from scratches and came in a pack of six different colors. The product was discontinued in 2012 due to declining demand and the changing landscape of Apple’s product line. As iPods evolved and new models were introduced with different form factors and built-in protective features, accessories like the iPod Socks became less relevant.
25. Apple Xserve
Product Name
Apple Xserve
Launched In
2002
Discontinued In
2004
Price At Launch
$2999
Apple Product Failures – Apple Xserve
The Xserve, one of Apple’s biggest failures, was Apple Inc.’s first rack-mounted server series. Designed for tasks like file serving, web hosting, and high-performance computing, it also came in a special “Cluster Node” version without a video card or optical drives fr use in computing clusters. Initially powered by a PowerPC G4 processor, it was later upgraded to a PowerPC G5 in 2004 and Intel Xeon processors in 2006, with both single and dual-processor options. Apple discontinued the Xserve in 2011, replacing it with the Mac Pro Server and Mac Mini Server.
Apple’s Closed Ecosystem: Apple controls everything on its devices, software, apps, and services like Apple TV and the App Store. This gives Apple more control but also means it has to handle a lot by itself. Unlike Samsung, which uses Google’s Android system, Apple must do everything in-house, which can slow things down.
Slow Innovation: People expect each new Apple product to be perfect and groundbreaking. This makes Apple careful and slower to try new ideas compared to companies like Google or Samsung, who release new products or updates faster. Apple still leads but others are catching up quickly.
Other Challenges: Apple’s products are expensive, which could be a problem if the economy worsens. Also, Apple competes in tough markets like streaming (Apple TV vs. Netflix) and payments (Apple Pay vs. PayPal and banks). Apple relies more on its brand than heavy advertising.
Conclusion
Apple is a trillion-dollar corporation with customers all around the world. It has developed several cutting-edge products and services. However, like any other company, Apple has had its share of failures throughout its history. Apple has seen a few notable Apple failures over the years, including products like the Newton, the Pippin console, and the discontinued Xserve servers.
However, Apple’s ability to learn from its mistakes and continue to innovate has enabled the company to maintain its position as a leader in the technology industry. By focusing on delivering products that meet the needs and desires of its customers, Apple has been able to thrive and create some of the most iconic products of our time. Ultimately, Apple’s failures serve as a reminder that even the most successful companies are not immune to missteps, and that innovation often requires taking risks that may not always pay off.
FAQs
What are some failures of Apple?
Apple iPhone 6, Newton, U2 iPod, Apple III, FireWire, Lisa, Homepod were some of the biggest failures of Apple.
What was Apple’s biggest mistake?
Dan Ives, an analyst said that Apple’s biggest mistake was not acquiring Netflix years ago. The company does not have a major stake in the popular streaming giant.
How did Apple almost fail?
Due to overpriced computers, and mediocre service, the company was about to be shut down in the mid-90s.
What is Apple’s main product?
The iPhone is Apple’s main product, with more than 1.7 billion iPhones sold since 2017.
What is the most famous failed product by Apple?
The Apple Newton is often cited as one of Apple’s most famous failed products.
How has Apple’s approach to product development evolved over time?
Apple has evolved its approach to product development over time by becoming more customer-focused, prioritizing simplicity and ease-of-use, and placing greater emphasis on design and aesthetics.
What can other companies learn from Apple failed products?
Other companies can learn from Apple’s failed products by understanding the importance of listening to customers, balancing innovation with practicality, and being willing to learn from mistakes.
What products does Apple not manufacture?
Apple does not manufacture accessories like printer devices, external displays (non-Pro models), routers (like the discontinued AirPort), or TVs. It also doesn’t make game consoles, smart glasses (yet), or budget phones below a certain price point. Most hardware production is outsourced to companies like Foxconn.
Apple Inc. is a world-renowned name for innovation and breakthroughs in the consumer electronics and computer industry. Apple is known to be one of the greatest marketers of all time because it understands that marketing is one of the most crucial aspects of a business venture, which greatly determines its success in the consumer realm. This is why Apple has always taken steps to keep its marketing process free of new market challenges in its attempt to penetrate deeper into the market.
Apple Inc. is one of the world’s most valuable brands; this is no surprise to many, as according to Brand Finance, Apple’s brand is valued at USD 574.5 billion in 2025, making it the world’s most valuable brand. It stays ahead of its nearest competitor, Microsoft, which is valued at USD 461 billion. The brand has been voted the winner of the CMO Survey Award for Marketing Excellence for ten consecutive years. This is because Apple has had consistent marketing excellence built into its core principles, which other companies will benefit from learning from and applying.
Apple’s marketing strategy is so effective that it has become a benchmark for other companies that want to achieve the same global popularity, revenue growth, and staying power.
Marketing is not just limited to advertising the products and services to the end customers. It also entails the determination of complete channels through which a product or service is going to be introduced in the niche market, as well as its promotion throughout the potential customer base in order to encourage them to buy the product. This is exactly what Apple is good at doing; it creates an awareness of the product, has an effective marketing strategy, and also focuses on developing a need for the product among other market sectors.
The iPhone, iPad, Apple Watch, Mac, and Apple TV are all products that have revolutionized their respective market space, and their success is a direct result of their marketing strategies.
Apple goes way beyond what other brands do; they focus on creating products for their target audience and loyal customers who truly believe the company’s products improve their lives. So why has Apple remained a consistently excellent marketer for over a decade? Let’s look at its marketing strategy to find out.
Product: Apple is a company that offers a wide variety of products. These include the MacBook, iPad, iPhone, Apple TV, iPod, Apple Watch, digital content, software, accessories, and cloud services. This diversification demonstrates the brand’s commitment to innovation and customer satisfaction. Furthermore, with recent developments like VR boxes and Apple glasses, Apple is constantly pushing the boundaries of technology.
Pricing: Apple uses two main pricing strategies for its products: Premium pricing and Freemium pricing. The premium pricing strategy involves setting prices higher than competitors’ due to Apple’s unique products, which result from their innovative designs. Customers are willing to pay for the brand’s premium quality, despite it being more expensive. On the other hand, the Freemium pricing strategy provides customers free access to basic products or services while charging extra for advanced features.
Place: Apple employs a multi-channel marketing mix strategy that utilizes online and offline distribution channels. The company offers its products through its own Apple Store locations, official company websites, and online stores. Additionally, Apple has partnered with telecom companies such as Verizon and AT&T to sell iPhones. Authorized resellers also offer Apple products through online stores like Amazon and eBay.
Promotion: The company uses various promotional techniques to market its products. These include advertising, sales promotions, personal selling, and public relations. Apple products are advertised on prominent websites, and sales promotions are run in stores or by authorized sellers. Personal selling involves informing customers about the product to persuade them to purchase. Finally, public relations helps the company to build its brand image. The marketing of Apple focuses on simplicity, innovation, and creating a strong emotional connection with customers. Apple promotion strategy focuses on simplicity, innovation, and emotional connection to attract and retain customers.
Apple is known for making stylish, easy-to-use, and advanced tech products. It carefully chooses its audience to create a premium and exclusive feel. Here are the key groups Apple targets:
1. Tech Lovers & Early Buyers: People who love new technology and want the latest devices. They often work in creative fields like design, video, and music, where they need powerful tools.
2. Creative Professionals: Photographers, designers, musicians, and filmmakers who need strong hardware and great software like MacBook Pro, iPad Pro, Final Cut Pro, etc., to do their work well.
3. Students & Teachers: Apple helps in schools and colleges with tools like iPads, Apple Pencil, and learning apps. It also offers student discounts and special teacher programs to build loyalty early.
4. Rich & Premium Buyers: Apple is a luxury brand. Wealthy customers choose Apple for its elegant design, high quality, and status symbol. They love the brand’s image and style.
5. Health & Fitness Users: With Apple Watch, Apple targets people who care about fitness and health. It tracks workouts, heart rate, and gives health tips, making it popular with fitness lovers.
6. Loyal Apple Fans: Some people just love Apple. They always buy the latest iPhones, Macs, and updates. Apple rewards this loyalty with great design, smooth experiences, and constant innovation.
Top Reasons Apple Marketing Strategy Has Been Successful
1. Apple Keeps Its Product Presentation and Marketing Simple
Apple iPhone 16 Product Presentation – iPhone Marketing Strategy
Apple follows the philosophy that simplicity is better in its products. They don’t overwhelm their targeted customers with too many choices, options, or even parameters.
Apple lets its products speak for themselves and keeps its messaging and visuals simple. They know that their products will sell without relying on expensive advertisements.
This strategy is also seen in their logo, a simple apple with a missing corner. Even their retail stores are designed for testing and checking out the products rather than just buying the boxes.
The products have short names that are easy to remember, and along with that, it has well-appreciated sleek and minimal designs with simple color schemes. The company also reduces confusion by simplifying its web and sales copy by using simple and direct words, and it continually stresses the benefits that consumers need.
This is part of their brilliance in content marketing, where they produce high-tech products without high-tech terms. Apple’s advertisements and marketing strategies don’t just convey specifications and features but rather how the product can change your life and make it better.
2. Apple Knows Its Target Audience and How to Reach Them
Apple’s Target Market Age Distribution
Apple has worked hard to find its target audience, it understands its audience’s likes, dislikes, habits, and language they want to use. By simplifying the marketing process in a language that the audience understands, an amazing bond is formed between a prospective customer and the brand, and a lasting connection is formed for an existing customer. Apple does mention all its specifications and technical details, which are usually below the fold rather than on the front.
When a customer visits the website, they have to scroll past the beautiful and aesthetically designed product images and large font, simple copy telling them about the benefits of the product.
Apple advertisements show happy people having a great time with the simplicity of their iPads.This consistent display of positive emotion in Apple’s marketing strategy is one of the driving forces behind its sales. They’re not selling more storage or battery life, but way more than that.
For example, the iMac product advertisements portray iMac as not just “a computer,” it helps make your computing experience exciting and pleasurable orthe iPhone isn’t just “a smartphone,” it lets you put the power of an Apple computer in your phone.
3. Apple Provides A well-Appreciated Customer Experience
Apple Retail Store Experience – Marketing Strategy of Apple
Apple holds the customer’s experience in high regard. The experience can include every element, including comparing different product versions to each other, trying out new products in the retail store, buying the item, receiving it, unboxing it, and setting up the device. All the devices are carefully crafted according to the company’s specifications to appeal to the consumer’s requirements.
For example, when it comes to installation, one of the things Apple fans truly appreciate about Apple computers is that it is very easy to set them up. This is why Apple spends a lot of money and thousands of hours testing and replicating to refine its designs.
The retail store is also carefully designed with warm lighting and monochromatic color schemes, and the layout of the store features all that appeals to the shopper’s requirements.
Apple Watch Series 9 – Marketing Strategy of Apple
Another prominent reason that makes Apple successful in its marketing strategy is its commitment to carbon neutrality. In 2020, Apple achieved carbon neutrality for its corporate emissions worldwide and introduced its “Apple 2030” climate goal, committing to be 100% carbon neutral for its products and supply chain by 2030.
In September 2023, Apple launched its first carbon-neutral product with the Apple Watch Series 9. These watches meet strict criteria: they use 100% clean electricity for manufacturing and product use, incorporate 30% recycled materials, and cut air transportation for shipping by 50%, resulting in a 75% reduction in product emissions.
Apple’s green efforts extend to its packaging, targeting 100% fiber-based packaging for the Apple Watch and over 99% for the iPhone 15. These environmentally conscious initiatives are seamlessly woven into the marketing strategies of Apple company, further enhancing its eco-conscious and forward-looking brand image. Their long-term goal is a 90% emissions cut by 2050, a commitment that not only resonates with consumers but also reinforces Apple’s dedication to sustainability and innovation.
5. Apple Creates Mystery and Hype Around the Product
Usually, when a company launches a new product in the market, the marketing team will reveal details and information about the new product. The reason behind this is to tell customers everything about a product to get them excited and build anticipation. However, when it comes to Apple, it takes a new and unique approach, creating excitement by withholding information around new products as it teases them out. Apple marketing objectives focus on building brand loyalty, highlighting innovation, and reaching a global audience through simplicity and user-focused strategies.
This is why the marketing strategy of the Apple company involves creating mystery around product launches, which is considered one of their best tactics. It is a clever approach as it turns the target audience into loyal fans, as this will make them curious, encouraging them to search for more information and share everything they find about the product.
For more than ten years, Apple has worked hard to build a community of loyal users, customers, and fans around the world. Apple’s marketing strategies include making customers want to belong to that community as it is deemed to be “cool”. Apple smartly capitalized on the universality of that self-perception, which made its customers believe that the brand understood them and was likethem.
Even small brands, taking inspiration from Apple marketing strategies, can build a community of devoted users and customers by fostering a strong and engaged user community. It’s crucial to get clear on your company’s brand values and personality, as exemplified by the marketing strategies of Apple, to establish a connection with your audience.
Another important step is to make sure that the marketing copies and content express and resemble those values and personalities. The website must be consistent with the words you chose to describe your brand, from graphics to fonts to color schemes.
What makes perceived value so important from a company perspective is that customers may be willing to pay a higher price because they deem the brand high quality or a higher status symbol. This is at the heart of Apple’s continued success over its competitors. The Apple marketing strategy strategically capitalizes on creating a perception of innovation, design excellence, and exclusivity, which enhances the perceived value of their products, leading consumers to willingly invest in the brand at premium prices.
In the last months of 2017, Apple captured 87% of total smartphone profits despite Samsung selling more phones. This demonstrates Apple’s strong market dominance in the smartphone industry. Apple advertising strategy focuses on simplicity, emotional appeal, and highlighting product innovation without overwhelming details.
This is also an integral part of Apple inc marketing strategy. The company has its relationship in Hollywood. In a federal court, Apple revealed that it relies heavily on product placement.
Apple Product Placement in Legally Blonde Movie – Marketing Strategy of Apple
According to Phil Schiller, an Apple Fellow (earlier Apple SVP of global marketing), “Apple’s employees work closely with Hollywood on so-called product placement so its gadgets are used in movies and television shows.”
It’s intelligent for the company, as the cost is less than the hardware itself, and offering it up for free can reduce a lot of money that is put into advertising television and film budgets while putting the products, following an effective Apple advertising strategy, in the spotlight in front of millions of people.
9. Less is More
Apple uses a simple marketing and design approach. Did Steve Jobs start this idea? by saying, “Let’s make it simple. Really simple.” Apple’s ads avoid prices, long texts, slogans, or tech complexity. Instead, they use their bitten apple logo, which is instantly recognized.
Apple’s products, like iPhones and MacBooks, are sleek, user-friendly, and have simple names. They focus on being easy to use, with high-tech details in the background online. This minimalist strategy helps Apple attract customers without overwhelming them. Apple marketing strategy analysis shows a focus on simplicity, premium positioning, emotional appeal, and strong brand loyalty through innovation and seamless customer experiences.
Apple cares about sustainability because it helps its image and builds customer trust. They aim to be 100% carbon neutral for all products and their supply chain by 2030. Their Apple Watch series is already carbon neutral, and they use eco-friendly packaging.
By going green, Apple improves its brand image, makes customers happier, and stays ahead of less sustainable competitors. It also strengthens ties with stakeholders.
Conclusion
Apple is one of the leading trillion-dollar companies in the world. What is the secret behind its success – Apple’s marketing strategy? Apple marketing plan emphasizes minimalist design, customer-centric messaging, and promoting sustainability to enhance brand loyalty and market leadership. It has always placed itself in the premium market and markets its products to high-end customers. Many brands still can’t figure out how Apple has such loyal customers, and the reason is its ingenious marketing strategies.
FAQs
How does Apple promote their products?
Apple promotes products through simple ads, its iconic logo, launch events, and a focus on innovation and user benefits.
Why is Apple so successful at marketing?
Apple knows its audience, so instead of bombarding them with specs, it keeps its keynote simple with aesthetically designed product images and a large font.
What is Apple’s marketing strategy objective?
The target audience of Apple is high-end product users so it focuses on premium branding and ensures to provide unmatched customer service.
How does Apple market their products?
Apple markets its products with sleek designs, minimalistic ads, emotional storytelling, launch events, and a focus on user experience.
What is Apple company marketing strategy?
Marketing Strategy of Apple company centers on creating a premium brand through innovative design and user experience, while also emphasizing sustainability initiatives to enhance its eco-conscious image. The company builds customer loyalty through storytelling and ecosystem integration.
When Apple thinks about making a new product, what are some of the customer needs, they consider?
Apple considers customer needs for innovation, usability, and design, prioritizing features that enhance user experience and align with evolving technological trends. The company focuses on creating products that seamlessly integrate into users’ lives, offering both functionality and aesthetic appeal
How does Apple get their products to their customers?
Apple delivers its products through Apple Stores, online platforms, authorized resellers, and direct shipping.
What is Apple target audience?
Apple target market includes tech-savvy individuals, creative professionals, and premium customers who value quality, innovation, and user-friendly designs.
How does Apple advertise their products?
Apple advertises its products through simple, minimalist ads, emotional storytelling, high-profile product launches, and its iconic logo, often avoiding detailed explanations or complex terminology.
To satisfy American demand, Apple is dramatically increasing production of the Pro variants of its upcoming iPhone 17 series in India this year.
Despite U.S. President Donald Trump’s concerns about Apple’s growing manufacturing presence in India, the move underscores the nation’s growing role in the tech giant’s global supply chain strategy and indicates that the company’s expansion plans remain unchanged.
According to a media report, Apple intends to source the majority of the US iPhone demand from India, and the US has one of the largest demand for iPhone Pro models, so the scale-up of the Pro models of the forthcoming iPhone 17 series will take place this year. The scale-up is also a result of India’s growing demand for Pro models.
Foxconn, Apple’s biggest contract manufacturing partner in India, will increase production of the iPhone 17 Pro model, the source claimed. While Tata Electronics is also engaged in the trial manufacture of components like casings for the new lineup, Foxconn has begun producing the iPhone 17 series in India.
Last year, Apple started producing high-end iPhone Pro models at its Foxconn facility in Sriperumbudur. In contrast to the mid-twenties in India, where 50–60% of all iPhone demand is for Pro versions, another source stated that this percentage is also anticipated to increase in 2025.
Apple Standing Firm on its Decision
According to a media report, Apple’s plans for development in India also state that the company’s policy has not changed in spite of comments made by US President Donald Trump that criticised it.
Additionally, the business maintains constant communication with the Indian government, assuring it of its ongoing dedication to India as a significant manufacturing hub. The expansion is expected to continue this year, according to the study.
Since India is one of the key markets, Apple’s investment ambitions there have not changed. Speaking to Tim Cook, the CEO of Apple Inc., on May 15 in Doha, Qatar, U.S. President Donald Trump stated that unless it is expressly for that market, there is no reason to establish plants in India.
Trump’s Advice to Tim Cook
After speaking with Apple CEO Tim Cook in Doha, Trump informed him that his administration has no interest in Apple constructing in India and that they can handle themselves. Trump went on to say that he and Tim Cook had a minor disagreement yesterday. “I am treating you very well,” he added to his friend Cook.
Trump further stated, “I’ve heard that you’re building all over India with the $500 billion you’re coming up with. You shouldn’t construct in India, in my opinion. Since India has some of the highest tariffs in the world, it is very difficult to sell there, but if you want to take care of the country, you may build there.”
Trump added that India has made the United States an offer in which they essentially agree to charge America no tariffs at all.
Apple is being treated quite well by the US government, which has tolerated all of its Chinese plants for many years. The US government currently opposes Apple’s decision to produce in India. India is capable of taking care of itself.
By the end of the year 2024, 78.05 percent of the global population was using smartphones, according to Statista. The report also details that many people use multiple smartphones which results in a higher number of smartphone subscriptions than the physical handsets. What was 6.97 billion smartphone subscribers in the year 2023 is expected to rise to a whopping 8 billion by the year 2028.
The two prominent market leaders in the smartphone industry are Apple and Samsung. Statista also reported that, in the second quarter of the year 20224, Samsung held 18.3% of the global smartphone market share, closely followed by Apple with 17.7%. These two smartphone brands are fiercely competitive and are continuously swapping the top two positions in global market share. The competition between Apple and Samsung is strong, as both companies compete in smartphones, tablets, and other tech products with different features and price ranges. Here’s a look at both these brands and their journey, highlighting their fierce competition.
Origin
Apple Inc.
Apple’s first product, the Apple I, designed by Steve Wozniak
Headquartered in Cupertino, California, Apple currently enjoys the status of the world’s biggest company by market capitalization. As of January 31, 2025, Apple’s market value is $3.55 trillion. Over the past year, it has grown by 24.91%. As valuable as the company is, its story is one that has been told many times. Suffice it to say that Apple Computer Company was founded in the year 1976 by Steve Wozniak, Steve Jobs, and Ronald Wayne to develop and sell Apple I Computers. A year later the company changed its name to Apple Computers, Inc. and then went public in the year 1980. Management disagreements and power struggles between the executives led Steve Jobs and Steve Wozniak to step back from their respective roles and pursue other individual ventures. The company landed in more trouble over the next decade and brought back Steve Jobs in a bid to guide the company back to success.
Apple – iPhone, Mac, and the iPod
It was then, that Steve Jobs turned Apple Inc., around by introducing a number of tactics and devices that included the iPhone, Mac, and the iPod. Through the years it launched many memorable campaigns, opened Apple Store retail chain, and acquired numerous companies to broaden its product portfolio. The brand enjoys a high level of customer loyalty and has been consistently ranked as one of the world’s most valuable brands.
The South Korean company was founded in the year 1969 and is headquartered in Suwon, South Korea. It was established as an industrial part of the Samsung Group. It was the result of a joint venture that was named Samsung-Sanyo Electric with Sanyo and Sumitomo Corporation. Samsung-Sanyo Electric was the predecessor to today’s Samsung Electronics.
Samsung SH-100 – Samsung’s First Mobile Phone
The company went on to produce electronic and electric appliances including televisions, calculators, refrigerators, air-conditioners, and washing machines. Since then, over the years, the company has grown its product footprint and expanded its presence across the globe. The company launched its first mobile phone in the South Korean market in the year 1988. It was only in the year 2007, that the company became the world’s second-largest smartphone manufacturer.
Samsung Electronic Products
By the end of the year 2021, Samsung Electronics was ranked at number two as the ‘Best Global Brands’ by the market research firm YouGov, and by mid-2022, PricewaterhouseCoopers ranked it at number 22 on their global top 100 companies by market capitalization.
Both of these conglomerates make some of the best products in the industry. Within the scope of consumer electronics, both these companies make the same products like smartphones, laptops, wearables, etc. Product commonality, however, breeds a very different customer base for both of these giants. The main reasons behind this are differences in design, price, compatibility, functionality, and the elusive idea of brand loyalty.
This is a look at one such common product – smartphones and how each brand fares in this particular product category.
User Experience
Apple and Samsung – Operating Systems
Even though both the smartphone brands work on different operating systems, Android on Samsung and iOS on Apple, the user experience in both is very similar. Samsung has made significant improvements over the years. Having said this, both these brands can improve in terms of design and optimization.
Product Durability
Apple and Samsung – Durability
Historically, both Apple and Samsung had huge issues with product durability. However, in recent years, both companies have made huge leaps and upgraded their products to be waterproof as well as have highly improved glass tensile strength.
Performance of the Product
Samsung is leading on the performance part as they have beaten Apple in 5G Systems by at least a year. However, the chips in Apple phones far outperform Samsung. Apple optimizes its chips rather than sourcing designs from other semiconductors on the open market. Samsung, on the other hand, leads the market with its display screens due to its concentrated R&D efforts. Overall, the product performance of an Apple smartphone in the real world is faster than that of Samsung.
Supply Chain Integration
This is a category in which Samsung is the clear winner as Apple is dependent on Samsung for product parts like OLED displays, NAND flash, and DRAM. Although Apple designs its own chips and is very competent in the area, its dependence on Samsung for procuring some parts reduces its competition with Samsung.
App Ecosystem and Native Services
Apple is unbeatable in this particular category due to its ecosystem in terms of the quality of services it offers on its devices. Samsung is dependent on Google for its services on Android. Also, Google’s apps and services that are implemented on iOS, sometimes work better than the Android version.
Platform Privacy and Security
Samsung’s platform openness versus Apple’s closed and personally managed platform means there is no comparison between the two when it comes to platform privacy and security. Apple has a track record of hardly keeping any personal logs or information about its users which stands it in good stead in the privacy category. Google, used by Samsung, is, at its heart, an advertising company. This means that the company collects data and information about its users for future use. Also, the Android ecosystem is full of malware making its usage a risk.
Product Range Comparison
Apple offers fewer phone options, with only its top models featuring the best technology at premium prices. More affordable choices come from older versions, which may get updates in the future.
Samsung provides a wider range, with budget-friendly options for basic users, high-end models with top performance, and foldable phones that remain expensive.
Pricing Comparison
Samsung is known for its budget-friendly phones. Its most affordable option offers a long-lasting battery, a reliable fingerprint scanner, and regular software updates, making it a solid choice for basic needs.
In countries like India, the UK, and parts of Europe, Samsung’s budget lineup includes phones with large batteries and multi-camera setups. These models sit below the more refined mid-range series but share some features with minor adjustments, including different processors.
Apple, on the other hand, does not offer phones at budget prices. The most affordable iPhones are either older models with outdated hardware and software or second-hand devices.
Apple iPhones have a simple and stylish design. They are easy to use, have a good camera, and a long battery life.
Samsung phones have more features, bigger screens, and more ways to customize.
Samsung offers phones at many prices, from budget to premium. Apple only sells expensive phones, with no budget options.
Apple’s software is smooth and secure, while Samsung gives more control and flexibility to users.
Conclusion
Apple and Samsung competition is strong, with both companies offering different designs, features, and price ranges to attract customers. Both are highly innovative companies that apply their innovations differently.However, customer loyalty is built by product offerings and whether it delivers value for the cost as well as in comparison to its competition. Both these companies are prime players in the consumer electronics sector and each has its own consumer base. It remains to be seen how they will both perform in the coming years.
FAQs
When was Apple founded?
Apple Computer Company was founded in the year 1976 by Steve Wozniak, Steve Jobs, and Ronald Wayne to develop and sell Apple I Computers.
Which was the first Samsung mobile phone?
Samsung launched its first mobile phone SH-100 in the South Korean market in the year 1988.
On which operating system does Samsung work?
Samsung works on the Android platform.
Are Apple and Samsung competitors?
Yes, Apple and Samsung are big competitors in the smartphone market.
How does Samsung compete with Apple?
Samsung competes with Apple by offering more phone options, bigger screens, more features, and Android’s flexibility, while Apple focuses on premium, simple, and secure devices.
Why is Samsung Apple’s biggest competitor?
Samsung is Apple’s biggest competitor because it sells the most smartphones worldwide, offers phones at all price levels, and competes in innovation, design, and technology. Both brands lead in premium devices, but Samsung also provides budget and mid-range options, attracting more users.
The human race has come a long way in providing easy access to comfort and luxury. Hence, there is no surprise in knowing that now we feel the ‘need’ to have those gadgets to own luxury. And when we talk about luxury, Apple takes our brain space immediately. Apple is a brand that believes in the quality, luxury, and aesthetic aspects of its products. Take an iPhone, for example. It might be a really good user interface gadget, but some people still own it for its aesthetic capability.
Gradually, Apple is enhancing its presence in the wearable and hearable industry too. Before the Coronavirus outbreak, this market was growing at a relatively slower pace than post-pandemic. People are being exposed to a more sedentary lifestyle, with their living place becoming their office space.
Businesses know how to create the need for their products among consumers. Hence, the coronavirus came as an opportunity for some firms. Apple, being the technology firm, also stood on the favorable side of the situation and reaped its benefits more rigorously.
If we look at the basic ideology of a brand behind expanding its product line, we realize that these companies are good speculators of future prospects. That being so, why wouldn’t they invest then? They have all the reasons to diversify, and many did. The difference is Apple did its work extraordinarily.
Now, take the case of Apple. What really happened? According to International Data Corporation Data for the year 2020, Apple has been seen as the top player in the smart wearable device market, with it being the number one choice among the population. These products include smart watches, smart airpods, smart bands, etc.
The graph shows that iPhone shipments have seen fluctuations in recent years, from a peak of 231.2 million units in 2021 to 195.6 million units in 2019. The company had Apple’s 21.5% market share of wearable device unit shipments in the first quarter of 2023.
There are a number of possible explanations for the slow growth. One possibility is that the smartphone market is becoming saturated. Another possibility is that consumers are becoming more interested in other types of devices, such as tablets and laptops. Additionally, the rise of Chinese smartphone brands has posed a significant challenge to Apple.
Apple’s Annual Market Share
The graph shows the market share of Apple. The company has seen a consistent rise in its market share from 13% in 2019 to 18% in 2022. It vividly made itself stand out of the crowd.
The wearable technology market size was estimated at $61.30 billion in 2022. The market size is expected to grow from $186.48 billion in 2023 to $419.44 billion by 2028, and Apple will play a major role in achieving this goal.
Reasons Why Apple Is Dominating the Wearables Industry?
Apple’s Authenticity
Apple products are outrightly its own. The chief reason behind Apple’s products dominating the market is its uniqueness and originality, which it keeps intact and provides the best quality products to its customers. It may not be the inventor of a product, but it definitely fills the market with its best version.
Though the majority of brands today focus on the UI of their products, Apple stands out of the line by providing innovations in its UI. It makes the product in such a way that a customer feels belonged to the product. Take the Apple Active 2 watch, for example; it has the feature of memoji which you can change as and how you like it.
Regardless of the fact that these wearables at their initial stage were fitness trackers, that is, a sports accessory. Gradually, the demand for trackers becoming an ‘easily accessible tool’ grew. People wanted it to be a complete package, like an easy shortcut to texting, emailing, answering a call, and listening to music while being a fitness tracker. Apple changed the game for itself here.
In January this year, Tim Cook said there are over 1.5 billion active users of iPhone in the world. It gives those users a considerable reason to choose the Apple brand over other market competitors and an edge to Apple over its rival firms. We can’t really say that 100% of those users are wearable users, but they certainly are potential consumers for the brand.
Apple’s Credibility
When you know the brand and its market presence for quite a good amount of time, it earns your trust. This trust is then reciprocated when the company expands itself. Apple’s wearable technology will also aim to maintain the company’s credibility by providing customers with the best experiences.
Apple’s Luxury
The association of the brand with luxury is something a user wants to acquire in his/her span of life. The luxury being a need evolves from society and consumer’s socialization needs. Apple is well-known for its luxurious aspect of services. The price of Apple wearables also comes under luxurious products.
The sedentary lifestyle that Coronavirus pandemic has brought is more or less a catalyst in the sudden surge of sales in this industry. And when it comes to investment, people tend to invest in something that gives them more benefits and durability, even if it is slightly on the higher end.
Apple’s Competitor’s value for money
These wearables are slightly on the higher end of the price because they are a lifestyle product and not a necessity product. So when you compare the things, you realize what brand ticks the most boxes for you. According to data, Apple shines in this category. Examples of Apple wearable devices are the Apple Watch, AirPods, AirPods Max, Air Tag, Laptop Tag, etc.
Apple’s Growing Sector
The wearables industry is one of the fastest-growing business lines presently. Although Apple is a mega brand, it is really obvious that there has been a notable spike in its end users, which is not only for Apple but for all the other firms, too. The growing market and demand for Apple wearables will help the company increase its market share and gain a competitive edge over its competition.
Apple Watch Series 10: The Apple Watch Series 10 is expected to be released in September 2024. It is rumored to feature a new design, a faster processor, and improved health sensors.
AirPods Pro 3: The AirPods Pro 3 is expected to be released in the fall of 2024. They are rumored to feature a new design, improved noise cancellation, and support for lossless audio.
Apple AR/VR Headset: Apple is also rumored to work on a mixed-reality headset that combines augmented reality (AR) and virtual reality (VR). It is a smart wearable device by Apple. The headset is expected to be released in 2024. It will allow users to interact with digital objects and information in the real world and experience immersive VR experiences.
Apple Glasses: Apple is also rumored to work on a pair of smart glasses. The glasses are expected to be released in 2025 or 2026. They will allow users to interact with digital objects and information in the real world without looking at a smartphone.
Apples wearable glasses
Conclusion
Apple is one of the finest business firms and has a very firm step in the global market. It generally launches its products during the year-end, which is a festive season for most parts of the world, which again is a fair reason for rising sales. People look forward to its new product launches and, above that, trust it. Apple doesn’t really offer something out of the world in its products, but it knows how to present its products to its buyers efficiently. It is a smart brand equipped with smart brains. Thus, the bottom line is Apple is a player in its regime, so it knows how to be exceptional.
FAQs
What is a smart wearable device?
Wearable devices arefashion electronics and accessories that are electronic devices with microcontrollers. These smart electronic devices are worn close to the surface of the skin, and they can detect, analyze, and transmit information concerning body signals.
What are Apple wearable products?
Apple Watches
Apple AirPods
Apple Headphones
Who are Apple’s competitors in wearables technology?
Apple is the market leader in wearables technology. Some competitors in the wearables industry are:
With a market capitalization of over a trillion dollars at the time of this writing, Apple is among, if not the most valuable brand in the world. In recent years, it has become increasingly rare to not use an Apple product at some point in your day. In fact, as of this month, there are over one billion Apple products being used across the world. The little apple with a bite out of it has become synonymous with technology, music, and growth.
Apple Inc. is an American multinational technology company headquartered in Cupertino, California, that designs, develops and sells consumer electronics, computer software, and online services. Apple is considered one of the Big Four technology companies, along with Amazon, Google, and Facebook.
The company’s hardware products include the iPhone smartphone, the iPad tablet computer, the Mac PC, the iPod portable media player, the Apple Watch smartwatch, the Apple TV digital media player, and the AirPods wireless earbuds. Apple’s software includes the macOS, iOS the iTunes media player, the Safari web browser, and the iLife and iWork creativity and productivity suites. Its online services include the iTunes Store, the iOS App Store, the Mac App Store, Apple Music, iMessage, and iCloud.
The history of everyone’s favorite start-up is a tech fairytale with one garage, three friends – Steve Jobs, Steve Wozniak, Ronald Wayne, and their wild passion to do something big. The two Steves attended the Homebrew Computer Club together; a computer hobbyist group that gathered in California’s Menlo Park from 1975. Woz produced the first computer with a typewriter-like keyboard and the ability to connect to a regular TV as a screen. Later christened the Apple I, it was the archetype of every modern computer hand-built entirely by Wozniak.
It was sold as a motherboard (with CPU, RAM, and basic textual-video chips)—a base kit concept. The approach was to make something simpler for the rest of us. A philosophy even reflected today in Apple’s products. The Apple I went on sale in July 1976 and was market-priced at $666.66 ($2,995 in 2019 dollars, adjusted for inflation).
According to the biography of Steve Jobs, the name was conceived by Jobs after he returned from an apple orchard. He apparently thought the name sounded “fun, spirited, and not intimidating.” The name also likely benefitted by beginning with an A, which meant it would be nearer the front of any listings.
Apple Computer, Inc. was incorporated on January 3, 1977, without Wayne, who had left and sold his share of the company back to Jobs and Wozniak for $800 only twelve days after having co-founded Apple. Multimillionaire Mike Markkula provided essential business expertise and funding of $250,000 during the incorporation of Apple.
During the first five years of operations, revenues grew exponentially, doubling about every four months. Between September 1977 and September 1980, yearly sales grew from $775,000 to $118 million, an average annual growth rate of 533%.
Steve Jobs was convinced that all future computers would have GUI. The first home computer with a GUI, or graphical user interface — an interface that allows users to interact with visual icons — was the Apple Lisa. Jobs adapted the technology of The Xerox Alto(the first computer to feature GUI) into a computer small enough to fit on a desktop. Despite a fantastic breakthrough, it was a commercial failure due to its high price and limited software titles.
On December 12, 1980, Apple (ticker symbol “AAPL”) went public selling 4.6 million shares at $22 per share, generating over $100 million, which was more capital than any IPO since Ford Motor Company in 1956. By the end of the day, the stock rose to $29 per share, and 300 millionaires were created. Apple’s market cap was $1.778 billion at the end of its first day of trading.
The Macintosh Computer, In 1984, Apple introduced its most successful product yet — the Macintosh, a personal computer that came with a built-in screen and mouse. The machine featured a GUI, an operating system known as System 1 (the earliest version of Mac OS), and a number of software programs, including the word processor MacWrite and the graphics editor MacPaint. The New York Times said that the Macintosh was the beginning of a “revolution in personal computing.”
Macintosh sales were initially good but began to taper off dramatically after the first three months due to its high price, slow speed, and limited range of available software. In early 1985, this sales slump triggered a power struggle between Steve Jobs and CEO John Sculley, who had been hired by Jobs using the famous line, “Do you want to sell sugar water for the rest of your life or come with me and change the world?” Jobs resigned from Apple in September 1985 and took a number of Apple employees with him to found NeXT Inc. Wozniak had also quit his active employment at Apple earlier in 1985 to pursue other ventures. He continues to represent the company at events or in interviews, receiving a stipend estimated to be $120,000 per year for this role.
In 1997, Jobs returned to Apple as the interim CEO, and a year later the company introduced a new personal computer, the iMac. The iMac was a strong seller, and Apple quickly went to work developing a suite of digital tools for its users, including the music player iTunes, the video editor iMovie, and the photo editor iPhoto. These were made available as a software bundle known as iLife.
In 2001, Apple released its first version of the iPod, a portable music player that allowed users to store “1000 songs in your pocket”. By 2015, Apple had sold 390 million units.
The iPhone
During his keynote speech at the Macworld Expo on January 9, 2007, Jobs announced that Apple Computer, Inc. would thereafter be known as “Apple Inc.”, because the company had shifted its emphasis from computers to consumer electronics. The event also saw the announcement of the iPhone and the Apple TV. The company sold 270,000 iPhone units during the first 30 hours of sales, and the device was called “a game changer for the industry”. Apple achieved widespread success with its iPhone, by October 2008, Apple was the third-largest mobile handset supplier in the world.
After years of speculation, Apple unveiled the iPad on January 27, 2010. The iPad ran the same touch-based operating system as the iPhone, and all iPhone apps were compatible with the iPad. Later that year on April 3, 2010, the iPad was launched in the US. It sold more than 300,000 units on its first day, and 500,000 by the end of the first week. In May, of the same year, Apple’s market cap exceeded that of competitor Microsoft for the first time since 1989.
Jobs passed away in 2011, months after stepping down as CEO, marking the end of an era for Apple, he was replaced by Tim Cook. The company continues to enjoy growth, engaging in many high-profile acquisitions, in recent years buying companies such as Beats Electronics and hardware sensor giant PrimeSense.
In the 20th century, Apple catered primarily to the home computer market, selling products which, although coming with a premium price tag were still affordable for the mass market. In the 21st century, following Jobs’ re-branding of Apple Computers Inc. to Apple Inc., Apple has focused increasingly on consumer electronics, with the iPod, the iPhone, and the iPad becoming flagship products. They continue to cater to the premium end of this market.
Value Proposition
The key to Apple’s success is majorly given to its meticulous, elegant design. Moreover, the loyal customer base formed by Apple in the initial years is still a strong standing point, with customers ready to pay time and again for flawless, high-performance, brilliantly designed devices.
Customer Relationships
Apple maintains its strong relationship with its customers by offering phone and web-chat-based customer service channels, in addition to providing in-person assistance at its various stores worldwide.
Key Activities
Apple’s key activities are investing a lot in quality control to ensure products meet the standard their customer base has come to expect. Aside from design, and quality control, branding is a huge part of what Apple does. Apple is extremely conscious of controlling the image it projects and it has painstakingly and consciously cultivated an image of quality, precision, sophistication, and class that enables it to justify the higher price tags its products command relative to its rivals.
While home computer sales comprised the majority of revenue for most of Apple’s history, in the last decade, this has changed as Apple has focussed on smaller consumer electronics. For FY 2022, the sale of iPhones generated between 40-60% of the company’s revenues and is consistently their biggest earner.
Macintosh computers were the second biggest earner in FY 2022, generating around 6-10% of the company’s revenue.
The sale of the iPad generated 5-8% of Apple’s income in FY 2022.
Sale of other products, including Apple watches and iPods generate around 8-10% of revenue.
Apple’s internet services, including iTunes, Apple Care, and Apple Pay accounted for 19.8% of revenue in FY 2022.
Apple’s Revenue Breakdown by Product for FY 2022
The key highlights of the analysis of Apple as a Tech giant are that when the need felt to a shift from the computer industry to consumer electronics, it didn’t wait for the numbers to slump, it immediately started working on newer products.
It worked really hard to maintain the quality standard and never compromised on it even if the sales fluctuated.
Another major reason for Apple’s dominance in the upper crest of digital products is the customer relations it has maintained over the years. The brand loyalty that we see when it comes to Apple’s tribe is unmatched by any other company.
The user-friendly interface, attractive updates, and excellent customer service never let Apple’s presence fade away despite the extravagant costs.
Apple also works on its advertising strategy, launching exciting ads that ultimately make it the talk of the industry. Whether the reputation is positive or negative, Apple makes sure that it does not let the popularity descend. This constant adaptation and perseverance is what makes it sit on the trillion-dollar throne.
FAQs
When was Apple founded?
Apple Computers, Inc. was founded on April 1, 1976, by Steve Jobs and Steve Wozniak.
What is Apple’s first product?
The first Apple product was launched on April 11, 1976. It was just a fully assembled motherboard, with about 60 chips.
Who is the CEO of Apple?
Tim Cook serves as CEO of Apple since 24 Aug 2011.
