The industry group ICEA stated on April 13 that after the Trump administration lifted duties on a variety of consumer electronics, Indian shipments to the US of smartphones, laptops, and other devices are anticipated to become 20% less expensive than those from China. The announcement, which was made over the weekend, is thought to be a significant boon to India’s quickly expanding electronics manufacturing industry. Smartphones, tablets, laptops, flat-panel displays, and specific semiconductor components will no longer be subject to the reciprocal tariffs that the US previously placed on nations like China, India, and Vietnam.
Advantage to India and Vietnam Over China
The exemption suggests that when it comes to selling certain goods to the US, India and Vietnam now have a significant tariff advantage over China. The chairman of the India Cellular and Electronics Association (ICEA), Pankaj Mohindroo, pointed out that 20% of iPhones, laptops, tablets, and watches are still made in China. For China, just the reciprocal duty has been eliminated. All smartphones, computers, tablets, and iPhones that are exported to the US are duty-free from India. Additionally, all Samsung and other smartphone, laptop, and tablet exports to the US are duty-free in Vietnam. Therefore, Vietnam and India both have a 20% tariff advantage over China and are subject to similar levies on these goods. After weeks of worrying about possible disruptions in exports, ICEA, which represents big businesses like Apple, Foxconn, and Dixon, said the exemption was a welcome relief. The chairman went on to say that there won’t be any more unusual disruptions.
India Becoming a Hub for iPhone Production
According to Union minister Ashwini Vaishnaw, India has become a major location for Apple’s production, with iPhone exports alone exceeding INR 1.5 lakh crore in 2024–2025. This year, mobile phone exports totalled over INR 2 lakh crore, a 55% increase over the previous fiscal year. Given the ongoing trade tensions between the US and China, industry insiders think that this most recent development enhances India’s position in the global electronics supply chain. The head of the India Electronics and Semiconductor Association (IESA), Ashok Chandak, described the tariff exemption as a major, if potentially temporary, relief for multinational tech producers.
He claimed that although the short-term export frenzy has subsided, India’s long-term prospects are still strong. With over $250 billion in electronics imports from the US, of which 30% still originate in China, Chandak went on to say that India has a lot of space to develop from its existing $12 billion base. He went on to say that now is a critical time for Indian companies to expand, refocus their plans, and solidify their place in the global electronics value chains. India needs to put even more effort into creating sustainable, long-term competitive advantages if it hopes to reach its full potential.
After increasing manufacturing in India to try to get around President Donald Trump’s tariffs, tech giant Apple hired cargo planes to transport 600 tonnes of iPhones—up to 1.5 million—to the US from India. As per a media report, the move’s specifics shed light on the American smartphone company’s change of plan. Apple has taken this step to increase its stock of iPhones in the US. Given Apple’s heavy reliance on imports from China, the primary location for iPhone manufacturing, which is subject to Trump’s maximum tariff rate of 125%, analysts have cautioned that the price of iPhones in the United States may rise. That amount is significantly more than the 26% duty on Indian imports, which is currently on hold after Trump announced a 90-day truce this week that does not apply to China. Apple “wanted to beat the tariff”, as reported by a media house. The corporation pushed Indian airport authorities to reduce the 30-hour customs clearance period at Chennai airport in Tamil Nadu’s southern region to six hours.
Special Arrangements Made to Airlift iPhones
Apple uses a similar approach at various Chinese airports, and the so-called “green corridor” structure at the airport in the manufacturing base in India was modelled after it. According to an Indian government official, since March, about six cargo jets with a capacity of 100 tonnes apiece have taken off, including one this week right before new tariffs went into effect. As reported in the media, an iPhone 14 and its charging connection weigh approximately 350 grams (12.35 oz) when wrapped. This suggests that, after deducting some packaging weight, the 600 tonnes of freight included roughly 1.5 million iPhones. According to Counterpoint Research, India now accounts for a fifth of all iPhone imports into the US, with China accounting for the remaining portion. Apple sells over 220 million iPhones annually worldwide.
Foxconn Plant Operational of Sundays as Well
Apple increased air shipments to India in order to reach its target of a 20% increase in regular production at iPhone factories. According to a media site, the company has increased staff in order to achieve this aim. Also, it has temporarily extended production operations at the largest Foxconn India facility on Sundays as well. Last year, the plant produced 20 million iPhones, including the most recent versions, the 15 and 16. Apple has set up India for a crucial role as it expands its production outside of China. Its two primary suppliers, Foxconn and Tata, currently operate three factories there, with two more under construction.
The story of BlackBerry is a cautionary tale of a once-dominant player in the smartphone industry who ultimately fell from grace. At its peak, BlackBerry was a trailblazer, pioneering on-the-go communication and email with its iconic keyboard-enabled phones. However, the company’s slow adaptation to changing market trends, lack of consumer focus, and missed opportunities ultimately led to its downfall. In this article, we shall shed light on the key factors that contributed to BlackBerry’s decline and examine the lessons that can be learned from its spectacular failure.
BlackBerry, initially known as Research in Motion (RIM), emerged in the late 1990s and quickly gained traction in the smartphone market. The company’s early success was fueled by its innovative products, such as the Interactive Pager 950, which introduced on-the-go communication and email capabilities. With its signature keyboard and secure messaging system, BlackBerry became synonymous with professionalism and efficiency.
Throughout the early 2000s, BlackBerry continued to expand its product portfolio and solidify its position in the market. The introduction of the BlackBerry Pearl series, Curve, and Bold product lines further cemented the company’s success. BlackBerry’s user base grew rapidly, and by 2011, it boasted more than 50 million units sold worldwide.
Missed Opportunities and Lack of Adaptation
Despite its initial success, BlackBerry failed to anticipate and adapt to key market shifts, leading to its downfall. One of the critical mistakes made by the company was its slow response to the touch-screen revolution. While competitors like Apple were going for touch-screen technology, BlackBerry remained loyal to its keyboard-enabled devices. This decision proved to be a significant misstep, as consumers increasingly gravitated towards touch-screen devices.
Furthermore, BlackBerry’s lack of consumer focus played a significant role in its decline. The company primarily catered to corporate and government customers, neglecting the broader consumer market. While BlackBerry’s devices offered robust security and email capabilities, they lacked the intuitive user experience and app ecosystem that consumers were seeking.
The introduction of the iPhone in 2007 marked a turning point in the smartphone industry. With its sleek design, touch-screen interface, and extensive app store, the iPhone changed the way people interacted with their mobile devices. BlackBerry, however, failed to recognize the iPhone as a direct competitor and continued to focus on its core business customers.
At the same time, Android smartphones began to gain traction, offering consumers a wide range of device options and customization capabilities. BlackBerry, with its limited device selection and lacklustre app store, struggled to compete with the growing popularity of iPhones and Android devices.
Smartphone Market Share 2024
The Failure to Innovate
Another critical factor in BlackBerry’s decline was its failure to innovate and keep up with evolving consumer demands. While BlackBerry Messenger (BBM) gained popularity as a messaging platform, the company missed the opportunity to expand its user base by locking the service exclusively to BlackBerry devices. Competitors like WhatsApp, which offered cross-platform messaging, quickly surpassed BBM in popularity and user adoption.
Additionally, BlackBerry’s operating system (OS) faced significant limitations in terms of app availability and user experience. While competitors like Apple and Android devices offered a vast array of applications, BlackBerry struggled to attract developers and provide an appealing app ecosystem for its users. As a result, BlackBerry devices became increasingly outdated and less desirable to consumers.
Recognising the need for a strategic pivot, BlackBerry decided to shift its focus from hardware to software and cybersecurity. In 2016, the company ceased smartphone manufacturing and transitioned into a software firm. Today, BlackBerry specializes in providing cybersecurity solutions and software services to businesses and governments.
The shift to software has allowed BlackBerry to leverage its expertise in security and build a new business model. The company offers a range of products and services, including endpoint security, threat intelligence, and secure communication solutions. BlackBerry’s cybersecurity offerings have gained traction in the market, positioning the company as a key player in the industry.
Blackberry Revenue from 2004 to 2024
Lessons Learned from BlackBerry’s Downfall
The rise and fall of BlackBerry offers valuable lessons for companies operating in the fast-paced and ever-evolving technology industry.
Adaptability: First and foremost, adaptability is crucial. Companies must be willing to embrace change and respond to shifting market dynamics. BlackBerry’s failure to recognise the significance of touch-screen technology and adapt its devices accordingly proved to be a fatal mistake.
Consumer Focus: Consumer focus is essential for long-term success. While BlackBerry initially targeted corporate and government customers, it failed to recognise the growing importance of the consumer market. Companies must understand the needs and preferences of their target audience and prioritise delivering a compelling user experience.
Innovation: Furthermore, innovation is key to staying competitive. BlackBerry’s reluctance to innovate and introduce new features and functionalities limited its ability to attract and retain customers. In today’s fast-paced technology landscape, companies must continuously innovate and evolve to meet the ever-changing demands of consumers.
Strategic Pivots: Strategic pivots can be necessary for survival. BlackBerry’s decision to shift its focus from hardware to software and cybersecurity allowed the company to capitalize on its strengths and remain relevant in the industry. Companies must be willing to reassess their business models and make bold decisions to adapt to changing market conditions.
Leadership and Vision: Strong leadership is crucial during times of disruption. Leaders must not only have a clear vision but also the foresight to anticipate market trends and the agility to pivot quickly. Without strategic leadership, even well-established companies can lose their edge.
The rise and fall of BlackBerry serve as a powerful reminder of the importance of adaptability, consumer focus, innovation, and strategic pivots in the technology industry. While BlackBerry’s dominance in the smartphone market may be a thing of the past, the company’s transformation into a software and cybersecurity provider demonstrates its resilience and ability to evolve.
The lessons learned from BlackBerry failure can guide other companies in overcoming the challenges and opportunities presented by technological advancements. By inculcating change, understanding customer needs, pushing for innovation, and making strategic shifts when necessary, companies can position themselves for long-term success in an ever-changing market.
FAQs
Why Blackberry failed?
BlackBerry failed because its leaders were slow to adopt touchscreen phones and app-based innovation, falling behind as the smartphone industry rapidly evolved. They underestimated the impact of competitors like Apple and Android. Their reluctance to change cost them market share and relevance.
What is the main reason for Blackberry phone failure?
The main reason for BlackBerry’s phone failure was its delay in adopting touchscreen technology and app ecosystems. While the market shifted toward full-screen smartphones and rich app experiences, BlackBerry stuck to physical keyboards and outdated software, losing relevance to faster-moving competitors like Apple and Android.
What went wrong with Blackberry?
BlackBerry went wrong by failing to adapt to major shifts in the smartphone industry. It:
Ignored the rising demand for touchscreen phones
Underestimated the importance of app ecosystems
Continued focusing on physical keyboards and enterprise users while the market moved toward consumers
Reacted too slowly to competition from Apple and Android
This lack of innovation and poor timing led to its sharp decline.
Amid declines in Xiaomi orders, Foxconn’s India subsidiary Bharat FIH is allegedly considering changing its strategy. This step is taken to concentrate on Apple’s supply chain service rather than competing in the electronics manufacturing services (EMS) market. Bharat FIH, which has been struggling since a number of its board members left last year, has reorganised its board. Now the firm has added two new independent directors: Payal Koul Mirakhur, cofounder and chief business officer of UExcelerate, and Arun Todarwal, a chartered accountant. Mirakhur joined the board of Bharat FIH in September 2024, according to her LinkedIn page. The board now consists of Abraham Joseph as managing director, Yu Yang Chih and Kam Wah Danny Tam as non-executive directors, and chairman Hui Chung Chen, according to the company’s official website.
Moving Away from EMS Market
According to a media report, Bharat FIH is trying to change its course after encountering a snag because of a sharp decline in orders from its main customer, Xiaomi. According to a media report, the business is now providing equipment maintenance and servicing for Apple suppliers. Thus far, the EMS company has collaborated with Tata Electronics-owned Pegatron and Wistron, as well as Foxconn Hon Hai at its Bengaluru and Chennai facilities. According to a source, Bharat FIH has been working on this project for the past year or so and wants to become an independent service provider to these players. Bharat FIH has personnel on hand who are trained to examine the maintenance of these devices, which are positioned at the locations of Apple suppliers. Formerly known as Rising Stars Mobile India, Bharat FIH was founded in Andhra Pradesh in 2015.
The company is a well-known supplier of smartphones from major brands like Apple and Xiaomi and is among the biggest EMS companies in the nation. In addition to assembling iPhones for Apple, it also manufactures televisions, hearables, telecom network equipment, mobile phones, and parts for electric vehicles. Bharat FIH operates two additional facilities in Sungavarchatram and Sriperumbudur, close to Chennai, India, in addition to its Sri City plant in Andhra Pradesh. According to information on its website, it currently has 25,000 employees.
Foxconn Aims to Increase iPhone’s Production
Foxconn plans to expand its iPhone production to 25–30 million devices at its facilities in India during the current year. Over the past three to four months, the manufacturer has been experimenting with limited testing activities at its new Bengaluru facility. This testing is done to check if the company can build Apple’s flagship product at scale without compromising quality standards. The iPhone manufacturer will receive an incentive of INR 6,970 Cr under the state’s Electronics System Design and Manufacturing (ESDM) policy in early March, according to Karnataka Chief Minister Siddaramaiah’s state budget speech.
The newest model in the iPhone 16 series, the iPhone 16e, has been released in India by iPhone manufacturer Apple. Pre-orders for the February 19-launched iPhone 16e will open in 59 countries, including India, on February 21. According to the business, the newest smartphones will go on sale on February 28. The 128GB base variant of the gadget would cost INR 59,900 in India. Additionally, there will be 256GB and 512GB models available, with prices of INR 69,900 and INR 89,900, respectively.
The phone is available with black and white finishes and a range of colourful cases to go with it. For INR 3,900, the iPhone 16e Silicone Case will come in five different colours: lake green, black, white, fuchsia, and winter blue.
The iPhone 16e has all of the features that customers adore about the iPhone 16 lineup, according to Kaiann Drance, Apple’s vice president of Worldwide iPhone Product Marketing. These features include an innovative 2-in-1 camera system, fast performance driven by the latest generation A18 chip, breakthrough battery life, and Apple Intelligence.
Features of iPhone 16e
The iPhone 16e features a 6.1-inch Super Retina XDR display, a durable rear glass, and a Ceramic Shield front cover. According to Apple, the Ceramic Shield front cover has the hardest rear glass in a smartphone and a proprietary composition that makes it more durable than any other smartphone glass. Apple’s most recent A18 chip powers the iPhone 16e. A 4-core GPU is included to manage graphics-intensive operations, while the 6-core CPU is said to be up to 80% faster than the A13 Bionic engine found in the iPhone 11. The C1 is the first modem created by Apple and the most power-efficient modem ever on an iPhone, extending the advantages of Apple silicon and providing dependable and quick 5G cellular communication. According to Apple, exceptional battery life is a result of the A18 silicon, which includes the C1 with a completely new internal design, and the sophisticated power management of iOS 18.
The phone has a 48MP Fusion camera with optical zoom capabilities and a built-in 2x Telephoto lens. The iPhone 16e can record at 60 frames per second in 4K with Dolby Vision. Additionally, the iPhone 16e allows for additional video sound editing options with Audio Mix and records video in Spatial Audio for immersive listening through AirPods, Apple Vision Pro, or a surround sound system. Furthermore, the iPhone 16e has Apple’s satellite capabilities, which allow for the use of Find My, Messages, Roadside Assistance, and Emergency SOS even when cellular and Wi-Fi connectivity is unavailable.
Collaborating AI with ML
The iPhone 16e is designed for Apple Intelligence, the company’s user-friendly personal artificial intelligence system, just like its predecessors in the iPhone 16 series. The 16-core Neural Engine can process machine learning (ML) models up to 6 times quicker than the A13 Bionic and is optimised for big generative models. Among its features is Clean Up in Photos, which uses Apple Intelligence to help users eliminate distractions from photos. Additionally, users can use Image Playground to experiment with different visual expressions, Genmoj to develop emojis, and work tools to add even more vibrancy to their work.
Siri is more conversational and can follow along if users fumble their speech, much like the iPhone 16 models. Users can opt to utilise ChatGPT’s knowledge without switching between apps thanks to its seamless integration with Writing Tools and Siri. In addition to IP68 water and dust protection, Apple Intelligence prioritises user privacy and offers individualised support. According to Apple, the iPhone 16e can outlast the iPhone 11 by up to six hours. iOS 18 operates on the iPhone 16e. Users will be able to switch their primary iPhone language to either Bangla, Gujarati, Kannada, Malayalam, Marathi, Odia, Punjabi, Tamil, Telugu, or Urdu in April, according to Apple. Face ID, an action button for instant access to frequently used features and visual intelligence tools, and USB-C wired and wireless charging choices are other highlights.
Apple is Manufacturing the iPhone 16e in India
The IT juggernaut Apple is exporting the recently released iPhone 16e to foreign nations while building it domestically for domestic consumers through its contract manufacturers in India. The entire iPhone 16 lineup, including the iPhone 16e, is being assembled in India for Indian consumers and for export to a few other countries, Apple told a media outlet. Notably, the Tim Cook-led company already assembles previous models of its flagship iPhones, including the iPhone 13, iPhone 14, and iPhone 15, in India.
In order to avoid incurring substantial fines in accordance with its hallmark digital antitrust regulations, the European Union has issued a warning to Apple Inc., urging the company to make its highly guarded operating systems for the iPhone and iPad easily accessible to competing technology.
In accordance with the Digital Markets Act of the European Union, the watchdogs of the EU have announced that the company based in Cupertino, California is required to comply with stringent new restrictions regarding the integration of operating systems with other technologies. Six months were given to the corporation by the authority based in Brussels to comply, or else they would be subject to potential penalties in the future.
EU Aims to Compel Apple to Re-Engineer Its Services
Despite the fact that the announcement is not yet an official inquiry, the European Union intends to force Apple to redesign its offerings in order to grant competitors an access to the operating systems of the iPhone and iPad.
According to a statement released by the Deputy Commissioner for Competition of the European Union, Margrethe Vestager, it marks the first time that specification proceedings under the DMA have been used to steer Apple towards effective compliance with its interoperability requirements. An significant factor in this is the presence of effective interoperability, which can be seen, for instance, in smartphones and the operating systems that they use.
Reasons and Repercussions if Apple Doesn’t Agree to the Norm
Assuring that other developers have access to essential Apple capabilities, such as Siri voice commands and the payments chip, is one of the goals of the Digital Markets Act (DMA).
In the case that Apple does not comply with the DMA, the European Union may decide to initiate a formal investigation at a later time. This might ultimately result in significant fines of up to 10% of the company’s yearly sales worldwide. It has already been subjected to a parallel inquiry examining the restrictions that it has established for developers within its App Store, which may also result in significant penalties.
The latest version of Apple’s flagship gadget, the iPhone 16, was introduced earlier this month. The company is hoping that it will be able to attract customers with relatively minor hardware enhancements and artificial intelligence technology that is still in the development stage.
On the other hand, the American company announced in June that certain services, such as Apple Intelligence, iPhone Mirroring, and SharePlay Screen Sharing, would not be available in the European Union. This was owing to the criteria that the DMA places on OS systems in order for them to be compatible with third-party applications.
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:
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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
Startup Name
Apple
Formerly Called
Apple Computer Company (1976–1977), Apple Computer, Inc. (1977–2007)
Industry
Consumer electronics, Software, and Online services
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 Logo
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.
Founders of Apple – Steve Jobs (left) and Steve Wozniak (right)
Steve Jobs
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.
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.
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’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
Date
Organization Name
Round
Amount
May 5, 2022
CNote
Corporate Round
$25M
Dec 6, 2021
Trala
Venture Round
$6.9M
Nov 4, 2021
Lime
Convertible Note
$418M
Aug 26, 2021
VamosVentures
Corporate Round
–
Aug 26, 2021
SweetBio
Corporate Round
–
Jun 22, 2021
Alabama A & M University
Grant
$1.3M
Jun 17, 2021
Morgan State University
Grant
$6.3M
May 7, 2021
II-VI
Post-IPO-Equity
$410M
Mar 31, 2021
UnitedMasters
Series B
$50M
May 7, 2020
Copan Diagnostics
Grant
$10M
Apple – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
Joby Aviation
Joby Aviation is an aerospace transportation company developing electric aircrafts.
Apr 1, 2022
–
Credit Kudos
Credit Kudos is a credit bureau that uses financial behavior and data through open banking to measure creditworthiness.
Mar 23, 2022
$150M
AI Music
Exploring the relationship between music and AI to enable a new age of music consumption
Feb 7, 2022
–
Paws, Inc
Paws, Inc., was founded in 1981 by cartoonist Jim Davis, as a creative house to support Garfield licensing.
Aug 30, 2021
–
SourceDNA
SourceDNA is a code similarity engine enabling companies that make or sell code to track what’s inside apps.
May 6, 2021
–
Vilynx
Vilynx increases engagement, efficiency, and insight with leading products for Publishers in the digital world.
Oct 27, 2020
$50M
Scout FM
Scout FM is a hand-curated podcast radio stations personalized with the power of data and artificial intelligence.
Sep 24, 2020
–
Spaces
SPACES designs VR, AR and MR experiences for theme parks, retail, and other public locations worldwide.
Aug 24, 2020
–
Mobeewave
Mobeewave is a Canadian-based startup that allows any mobile app to accept in-person payments with no extra hardware.
Aug 1, 2020
$100M
Fleetsmith
Fleetsmith puts Apple device management and security on auto-pilot.
Jun 24, 2020
–
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?
Steve Jobs, Ronald Wayne, and Steve Wozniak founded Apple Computers Company as a business deal on April 1, 1976.
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.
On 26th August, Apple Inc. the leading American corporation announced that it will allow iPhone or iOS app developers to use alternative payment options to the App store. The new advertising policy will help the developers to promote alternative pricing, excluding the apple cut.
However, the catch to this is that the app makers are not allowed to buy or add subscribe button that will lead to a webpage to complete the transaction. This is why app manufactures can promote alternative pricing plans and share other payment information only on their website or by sending their users an email.
According to Apple’s statement in the press release, the users of the apps must give their consent to the communications and must also have the right to opt-out. The tech giant has also expanded from lesser than 100 price options to over 500 different price options for subscriptions, in-app purchases and paid apps.
For many years, Apple has been surrounded by controversies about its practices and treatment of developers on the App Store. Apple has made this change because many small app developers were filing a lawsuit against the company. This move is said to be the biggest and the most effective change the company has made in response to the accusations made by small app developers saying Apple uses monopolistic tactics on its App Store.
The company has finally decided to include new concessions and a new fund that will help small developers in America instead of settling the lawsuits. Up until now the iOS developers had to pay a share of their total revenue that was generated on the Apple app store, which was called the Apple Tax. Earlier Apple had said that it will try to resolve a class-action suit from the American app developers.
How can iOS users avail other payment options?
Since the App developers are not allowed to advertise payment methods within the apps themselves and can advertise other payment options only through email or their website, the users of the apps can sign up for alternate payment options on the app’s website. Besides payment options, Apple will also allow App developers to make over 500 alternative pricing options for subscriptions, in-app purchases and paid apps, among others.
According to the statement by Phil Schiller who oversees the App Store said that, “From the beginning, the App Store has been an economic miracle; it is the safest and most trusted place for users to get apps, and an incredible business opportunity for developers to innovate, thrive, and grow.” He also added that, “We would like to thank the developers who worked with us to reach these agreements in support of the goals of the App Store and to the benefit of all of our users.”
Other concessions made by Apple
Apple will also continue to take its revenue cut but will allow a reduced commission to app developers that earn lesser than $1 million through the app store between June 2015 and April 2021. This is known to account for over 99% of the Apple app developers. This business can pay a reduced commission for the next three years as a part of Apple’s App Store Small Business Program.
Apple will also be publishing an annual App Store transparency report that will include important information and statistics about the app review process. It will also contain significant data such as the number of apps rejected and the reason behind it, number of customers, data based on search queries and results written in detail.
During the difficult times of the Covid 19 pandemic, the tech giant had pledged its support to small businesses by offering over $100 million to the app developers. Over the years Apple has made many concessions in order to keep boundaries such as not allowing third-party apps. There was also no mention of the third-party app stores or page loading of apps in the press conference.
Apple is allowing its app developers to advertise external payment methods through their website or email.
What is Apple Tax?
Apple tax is the share of the total revenue generated on the app store that is paid by iOS developers to Apple.
What are the other concessions Apple toward the app developers?
During the difficult times of the Covid 19 pandemic, the tech giant had pledged its support to small businesses by offering over $100 million to the app developers.
One of the most well-known rivalry in the technological industry is between Apple Inc and Microsoft Corporation. They are two of the largest companies in the world as both Apple and Microsoft have touched market capitalization value of $1.5 trillion in 2020. Both the companies have revolutionized the technological industry by providing us with two very different software applications and gadgets such as Mac and PC.
They are two of the most established companies when it comes to the production of computers. Both Apple and Microsoft are competitors even in different sectors of the industry like hardware devices like smartphone and PCs, advertising, making software’s, operating systems, etc. Apple main aim is to produce gadgets like iPhone, Mac, Apple watch , etc, while Microsoft focuses on making software applications for different devices and giving license for their software services.
Which is why both the companies have different approaches to marketing strategies. Let’s put a light on some of the key points from the marketing strategies of both companies and check how you can implement them in your business.
Apple Inc is one of the most well known American corporation which is popular for creating unique designs and selling electronics, computer software and online services. The headquarters of people Inc is situated in Cupertino, California. The company is credited for designing products such as Macintosh range of computers, iPad, iPhone, iPod, Mac, Apple watch, etc. The company is also know to make software such as iLife, the safari web browser, iOS and iTunes among others. Apple now operates in over 350 stores around the world and offers both software and hardware.
The success story of Apple
The success of Apple Inc. is solely because of the contributions made by the cofounder and entrepreneur, Steve Jobs who created good looking, easy to use products and the ability to create innovative products that consumer’s desire. The company was created during the unstable economic situation of the 1970’s. The company introduced Macintosh in 1984 after which it also got its widespread recognition because of its marketing and advertisements for its products. In 90’s after jobs resignation, apple lost a huge market share to its lower priced competitors Microsoft and Intel.
In 2000, when jobs returned and became the CEO, Apple gained it prominence after the launch of iMac and the Think different campaigns. In August 2011, Jobs resigned as CEO due to health issues, which led to Tim Cook becoming the new CEO. And the rest is history. Apple’s annual revenue for 2020 was $274.5 billion, making Apple Inc the world’s most valuable company. As of January 2021, Apple has achieved the title of becoming the world’s largest PC vendor and also becoming the world’s fourth largest manufacturers of smartphones. Apple is now also the world’s largest music retailer with iTunes.
Microsoft Corporation is an US based multinational technology company which is headquartered in Redmond, Washington. The company is known for manufacturing, licensing and selling software’s, consumer electronics, PCs, etc. Some of its well-recognized and popular contributions to the tech industry is Microsoft office suite, internet explorer, Xbox video game consoles and a variety of PCs. Microsoft is also one of the top five tech companies in the US that includes Google, Apple, Facebook, Amazon and Microsoft. In 2020 Microsoft became the 21st company in the Fortune 500 list.
The success story of Microsoft
The company was founded by Bill Gates in 1975 . The company was made from contributions of the ideas of two individuals Bill Gates and Paul Allen, as they were interested in computers and programming. The company rose to prominence in 80s with developments like Altair 8800, MS-DOS and the most popular Microsoft windows. Bill gates was then replaced by Steve Ballmer as the CEO in 2000. In the 90s the company made major acquisitions of Skype for $8.5 billion in 2011 and LinkedIn for $26.2 Billion in 2016.
Microsoft provides a vast range of products and service that are aimed at satisfying the customers on what they want in the software industry. In addition to this, the company has extended its operations in other sectors in order to enhance its competitive advantage. The company now offers a wide range of products, software’s and servers for its user’s desktops, laptops, tabs, gadgets and servers including internet search with Bing, cloud computing with Azure, mixed reality with Hololens and software development with visual studio.
The Target Audience of Apple and Microsoft
Apple Inc. has both software and hardware products and services, for software it has iCloud, iLife, iMessage, iMovie, iTunes, etc and for hardware it has iPhone, Macbook, iMac, Apple watch, iPad, etc. Which is why the apple has a vast array of target audience as it keeps expanding its market with every new product. Apple already has 1.5 billion users who fall under the age bracket of 22 to 55 years old. The male to female user ratio is 60.8% to 39.2% showing that it is expanding in the male market.
Apple also targets people with medium to high income individuals who live in metropolitan cities and are loyal to the brand. The occupation group of Apple users are considered to be students and young professionals to even managers and executives. Microsoft also has both software and hardware products and services. Everyone from the middle class house at least owns one Microsoft hardware or software that is because the target audience of Microsoft are people who don’t necessarily have a high income.
Microsoft’s target audience age group range from 16 and older and from both urban and rural areas around the world. They also target young crowds that are usually students, employees and professionals and are loyal to the brand. Microsoft also uses the approach of STP which is Market Segmentation, Targeting and Positioning in order to bring about communications in marketing as it enables the company to make propositions their priority.
Apple’s marketing mix shows us how the company matches with its business activities to the conditions in the worldwide market for information technology, consumer’s electronics and online services. While Microsoft’s is known to be marketing mix that shows how rapid invention and innovation can be combined with effective approaches to maintain a strong share of the market. Here are the 4Ps (Products, Place, Promotion, Price) of both the companies.
The marketing mix of Apple
Product mix
Apples products mostly comprise of mostly of both hardware and software which involve information technology. Apple although has more hardware products and some of the well-known products are Mac products line, iPhone line, iPad line, iPod line Apple watches, Apple TV, while it software products are software of devices, accessories, cloud services, digital content, etc.
Microsoft on the other hand started out as a software developer and still continues to give it its first preferences. However this company has grown to include an variety of products and services. Some of its products are providing different software to various devices, Apps, Xbox Video game consoles and entertainment.
Placement mix analyses the selection of appropriate places or venues that are used by the company to distribute its products. Apple Inc. placement involves apple owned locations and other parties that the company authorizes to distribute its products. Most of Apples distribution happens from Apple store locations, Company owned website and online stores for desktop and authorized sellers and lastly the telecommunication companies.
Microsoft tries to maximize its reach in the sectors of both computer hardware and software market. The company does its distribution on their official website, authorized sellers and Microsoft stores.
The marketing mix of Microsoft
Price mix
Apple uses two pricing strategy which are Freemium pricing strategy and premium pricing strategy. Apple uses premium pricing strategy to set high prices for its products which is why apple products are more expensive then android products, with this it maximizes profit margins.
In the freemium pricing case apple products are free but customers have to pay to access better features, for example the company offers free 5 GB iCloud storage but if the user wants more they can by purchasing. However Microsoft applies suitable pricing approaches like Market-oriented pricing strategy, Freemium pricing strategy similar to apple’s and Buy only what you use price strategy.
Promotional mix
Apple promotes its products in various ways to include different channels and parties. Apple also uses word of mouth, marketing campaigns and beautifully planned ad video that reaches out to their target audience. Microsoft aims on creating effective communication strategies and tactics which can be used to attract target audience. Both Apple and Microsoft uses tactics such as advertising, sales promotion, direct marketing, personal selling and public relations to promote their products.
Apple is known to be the best companies when it comes to branding and tech marketing. They don’t just market their products they try to market a brand identity. One of its main market strategies is to keep the products and marketing simple because they don’t want to overwhelm their prospective customers with too many choices. Apple lets its products speak for themselves with their simplistic design and easy to understand descriptions and simple visuals.
One of Apple’s best marketing strategies is hyping its products and making a creative campaign. The other reasons are that they understand their target audience and try to reach out to them in the language they will understand which is done by simplifying the marketing process. One of the points of Apple’s tech marketing is that they know how to speak directly to their consumer. They also create brilliant video ads and billboards that showcases human needs and speaks to the customer’s human needs.
Microsoft on the other hand depends completely on showcasing its product effectiveness and usability. Microsoft spends a lot as it depends on B2B marketing that directly sells its products to the customers. Microsoft has also updated its marketing strategy which is now based upon customer feedback and market changes. In this day and age, Microsoft has somehow managed to develop not only its marketing but also its products in order to match the rapid rate of change in today’s market.
Microsoft’s marketing strategy is to drive its enterprises business by creating cloud based solutions that will stick with its consumers. Microsoft uses a mix of demographic and behavior segmentation strategies to segments the market into different group with similar characteristics. Segmenting based on demographics is important for products like Operating systems and Office products which are applicable to everyone.
Apple has several competitive advantages over its competitors one of which is that it produces superior technological products with good OS and technology like iPhone, Macbook and iWatch making it a leader in the market space. Apple has also repeatedly taken the top spot for its brand equity and also has loyal customers. Apple has increased its revenue over the past years and also has high margins.
One of the major competitive advantages of Apple is the amount it spends on R&D, always thinking about the future of the company. Microsoft offers both software and hardware products and services, from Microsoft tablet to Xbox console games to even software. So one of the main competitive advantage that Microsoft has over its competitors is the strategy of making acquisitions. Microsoft has so far acquired companies like Hotmail, Skype and even Nokia.
Microsoft is a main competitor to apple because its operating system is installable on any PC or laptop and there is no hardware binding on the operating system which is a problem noticeable in Apple gadgets. It also has a vast product line and has worked upon TCO which is total cost of ownership so as to make the software easily and economically available to the customers.
Frequently Asked Questions – FAQs
What are some of the Apple’s products?
Apple products mostly comprise of mostly of both hardware and software which are Mac products line, iPhone line, iPad line, iPod line Apple watches, Apple TV, while it software products are software of devices, accessories, cloud services, digital content, etc.
What are some of Microsoft products?
Microsoft also has software and hardware products and usually provides different software to various devices, Apps, Xbox Video game consoles and entertainment.
What is Apple’s marketing strategy?
Apple marking strategy involves keeping its products and ads simple, knowing their target audience and reaching out to them, getting good feedback, a well appreciated customer experience.
What is Microsoft’s marketing strategy?
Microsoft marketing strategy focuses on showcasing its product effectiveness and usability and implementing customer feedback to create user-friendly products at a reasonable price.
