Why Apple Is So Successful?
“What is the secret behind Apple’s success?” is the most asked question in our generation. Technology magazines, social media, and even we discuss about this topic in our daily lives. Actually, you don’t have to be an expert to answer this question. Of course there isn’t only one answer. Here is what we can see;
1. Marketing
The way that Apple promotes its product is different than any other company. First of all, they work for the visual beauty of their products more than anyone. All of their products have a smooth surface, a comfortable hold, and an elegant colour. Even their stores give you chills by its powerful and dainty image. Apple makes a teaser video and advertisement seminars before selling a product. They put all the information about the new product on their website in regular bases. All of those videos and information makes you want that product because the colours and visual affects they use to make the product charming. Other than visual beauty, Apple cares about the customer satisfaction more than their technology. Actually, they advance their technology by the customer’s comments. When you walk in to an Apple Store, you can see a section called “GeniusBar”. It’s the place where their employees help customers about their problems and questions.
2. Software (iOS)
Apple uses a unique software which is created by itself. Apple doesn’t only sell a product, it sells the software in it. By advancing its software regularly they manage to kill their old products which leads customers to buy the new one. On the other hand, the use of this software is very simple. There’s nothing you need to learn about. Everything appears on the homepage and that’s it. To help a new customer, the very first time you open a product it starts with an introduction phase which shows how to use it.
3. Privacy Policy
Apple has one of the most strict privacy policy ever. They even got into trouble with FBI because of that. Apple adduces that they’re the most secure company compared to others. There is no way that they share personal information about their customers.
If we compare those information to other companies we can clearly see why Apple is so successful. Their customer service, visual designs, technology, and privacy have huge differences compared to other companies. For example, when you walk into a technology store you can see a separated section just for Apple products and there is always someone to help you. Other companies’ stores don’t give you same service as Apple. Apple always work for their customers satisfaction, others work for themselves. That’s why Apple is so successful.
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6 Reasons Apple Is So Successful
Apple’s iPads and iPhones are displayed inside an Apple store in New York City on Dec. 7, 2011
One of the more interesting questions I get asked about as an industry analyst who’s followed Apple since 1981 is why Apple is so successful. It’s an honest question because to those unfamiliar with Apple, the company’s rise and current dominance in non-PC devices is somewhat puzzling.
Most people have a working understanding of the fact that Apple lost the PC wars to Microsoft, and only nominally understand that when Apple created the iPod and then the iPhone, the company started to go in a new direction. And anyone who’s gone into an Apple store knows full well that Apple’s customer service and stores represent the gold standard for selling and supporting tech gadgets. But beyond that, the reasons why Apple is really successful are still a mystery to many.
There are plenty of books about Apple that talk about everything from Steve Jobs’ history to tenets of Apple’s business models to secrets about Apple’s internal-management ideas. However, after years of watching Apple up close and personal and having to deal with every one of their CEOs, as well as interacting with various Apple execs over the years, I would like to suggest that the reasons the company is successful can be boiled down to six key principles that make it very hard for competitors to compete with Apple.
1. For any product that Apple creates, the people who create it have to want it themselves
So many times with projects I do with other tech companies, the goal is almost always based around the technology first, followed by whether or not people really want to use it. Geeky engineers are dazzled by the technology at their disposal and often create something because they can. But Apple’s approach is quite different. The engineers who are creating Apple products actually make them for themselves. And Jobs was the chief “user” of Apple products when he was alive. All of Apple’s products are based on the fact that Jobs represented the real customer. And his engineers had to come to grips with that when designing a product. It has to be something that they personally couldn’t live without.
2. The products have to be easy to use
Jobs was a stickler on this point. While industrial design is a critical component of any product Apple makes, if it is not easy to use, it is considered worthless to the consumer. This is what drove the company’s user-interface designs from Day 1 and is still the mantra pushed to the software and hardware engineers every day they go to work. All of the products they create have to be intuitive and easy to understand and learn. As technology has become more intricate and users want more features, the task of keeping things simple is sometimes difficult. And Apple creates tools for power users and rookies, which can mean a broad range of ease-of-use issues. But even with that, Apple is the only company I deal with where ease of use is more important than the product itself. Apple makes this a critical goal of its approach to creating anything for the market.
3. Keep things simple
I was in Paris in the past two weeks and had talks with various French telecommunications officials about many mobile-computing issues. But one conversation I had in particular emphasizes this keep-it-simple point. We were discussing how to compete with Apple — a major pastime for all Apple competitors and carriers these days — when the question of why Apple is really successful came up. And one exec nailed it when he said he felt that the real reason Apple is successful is because it has one product; in this case the iPhone. It minimizes the decisionmaking process for the consumer by making things simple. The person speaking was with a carrier in France, and he said that in their stores, they have to have as many as 25 different models of phones available. That makes it hard for his staff to be really knowledgeable about all of them all of the time, and their customers just have too many options to choose from.
But Apple only has one iPhone model, and anyone who has gone into an Apple store understands that every staff member there knows a great deal about each of the four major products carried in its stores. Apple doesn’t have five iPhone models to choose from; it has only one. While this may seem limiting given the amount of smart phones available to users, the truth is the reverse. Our company has done consumer research for over 30 years, and consumers constantly tell us that while choice is nice, in reality they want the process of choosing a tech product to be simple and not complicated by a plethora of choices.
Yes, there are tech-savvy people who like more choices and sometimes even like complexity, but from years of experience as a market researcher, I can tell you that in the end, the majority of users are not tech-savvy, and keeping things simple for them is a plus. Apple understands this in spades and is never tempted to add multiple versions of an iPhone, iPad or even more than one or two types of iPods. This makes buying an Apple product simple. And consumers seem to appreciate this considering the huge number of iDevices that are sold each year. I know the tech media and techies are the most vocal about this issue of choice, but in the end, while choice is good for competitive pricing, what nontechie consumers really want is simplicity.
4. Offer great customer service and in-store experiences
Jobs understood one of the major conundrums of technology: even if you create products that are easy to use, the variety of things that people want to use technology for often creates complexity. Because of this, consumers at all levels may need some hand holding from time to time. I was one of the most vocal critics of Apple when it introduced its first retail store in Tokyo in 2002. I thought it was crazy for Apple to try and go into retail. At the time, and even today, tech retail stores are in decline while big-box stores like Costco and Walmart sell products on price and nothing else. I thought that if price were the issue, an upscale retail store would be DOA. Wow, were other naysayers and I wrong about Apple’s retail strategy.
Apple uses this conundrum to its advantage. Because it keeps product SKUs simple, the salespeople inside the stores know the products really well. Notice that when you go into an Apple store and are greeted by one of the sales staff, you’re not asked, “How can I help you?” Instead they ask, “What would you like to do today?” They go right to the heart of any technology user’s question, a question that’s always related to what they want to do with the technology the user is interested in.
And once you explain your needs, they take care of it on the spot in most cases. Or if you need more hand holding, they turn you over to the Apple Geniuses. No wonder 50% of people buying Apple products are new to Apple. Apple’s products are simple to understand and use, but if you do have a problem, Apple can take care of it at their stores or over the phone quickly.
5. Apple only makes a product if Apple can do it better
Apple normally doesn’t invent a new product or product category. Sure, the company did invent the first commercial PC with the Apple II, and the Mac improved on PCs with a graphical user interface and mouse input. But since then, all of Apple’s other products have been recreations of existing products. Apple did not invent the MP3 player; Apple reinvented it and made it better. Apple did not invent the smart phone; Apple reinvented it and made it better. And Apple did not invent the tablet; Apple reinvented it and made it better.
As Apple designer Jonathan Ive said recently, “Our goals are very simple — to design and make better products. If we can’t make something that is better, we won’t do it.” Clearly, Apple applied that thinking first to iPods, then smart phones and more recently, to the iPad.
6. Apple stays at least two years ahead of its competitors
This is the one that scares Apple’s competitors the most. While those competing with Apple are just getting products to market that are competitive, Apple is already working on the products at least two years out. For example, the new iPhone that will most likely go to market in October was designed and signed off on two years ago. And the iPhone the company is working on now is for the fall of 2014. The same goes for the iPad. The new iPad that we will most likely see next March was signed off on two years ago. The one that’s being worked on now we will probably see in 2015. This is a nightmare for Apple’s competitors and will continue to be for some time.
Besides having geniuses in design, software and retail, Apple also has the cash to invent components, manufacturing processes and things like that, which almost makes it impossible for the competition to make any real headway against Apple. And don’t let the fact that Android has become the No. 1 smart-phone operating system make you think that it’s the big winner. Yes, Android has gained ground by the sheer numbers of companies and products pushing Android. But the real measure of success is in the profits, and Apple is making as much as 70% of all the profits in smart phones and about 85% of the profits in tablets. Just ask any Android competitor which they would like more, market share or profits. You’ll get the answer relating to the real measure of success in this market.
These six principles may seem a bit simplistic given the fact that Apple also has great software, industrial design and a powerful ecosystem of content, apps and services as part of the company’s success equation. However, I can tell you that from my three decades of following Apple, it’s these six key principles that are what really makes it successful. And as long as it adheres to them, it’s pretty likely that Apple will continue to grow and command a relatively large share of the market in the company’s product categories where it competes.
Bajarin is the president of Creative Strategies Inc., a technology-industry-analysis and market-intelligence firm in Silicon Valley.
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Five big things that have made Apple
By Sarah Porter
BBC News, Singapore
It’s been called the most successful company in history.
And it’s just become the world’s first public company to be worth $1 trillion (ВЈ767bn).
So how’s it done it?
Here’s a quick look at five of the biggest things that have helped make Apple the gigantic success story it is today.
1. Steve Jobs — a brand unto himself
As the co-founder of one of the world’s most successful companies, his is one of the most recognised names in the world of tech.
He put Apple at the forefront of the personal computing revolution, and was behind a suite of revolutionary, highly desirable products — from the iPod to the iPad.
But he was also recognised as one of the modern world’s first auteur chief executives — and became a brand unto himself.
From the time he founded the company with Steve Wozniak in 1976 in Silicon Valley, California, Apple was seen as a firm that was set to achieve great things.
Apple shares were in such high demand that by the time it opted for a flotation in 1980, it became the biggest stock market launch since Ford in 1956.
In 1985, Mr Jobs was famously ousted from the firm he founded after a falling out with chief executive John Scully.
But by 1997, after Apple had been operating at a loss for 12 years, Mr Jobs was asked to return.
He quickly set about scrapping various projects and introduced Think Different — a campaign designed to promote Apple and its products, and revive employee morale. The firm quickly returned to profitability.
Apple just wouldn’t be Apple without his name behind it.
2. The iPhone — a revolution
Launched in 2007, the impact the iPhone has had on modern mobile communication is unmatched, and unquestionable.
Almost 1.4 million iPhones were sold in the first year they were on the market. Competitors such as Nokia and Blackberry, which had dominated the mobile phone market, were quickly knocked out.
While Apple recently dropped to third place in the battle of the world’s biggest smartphone makers, behind South Korea’s Samsung and China’s Huawei, its iPhones are still clocking strong demand worldwide.
Apple sold 41.3 million of them in the three months to June this year — and about 216 million worldwide last year.
Moreover, Apple’s bottom line is still largely determined by their sales. In the most recent quarter, 56% of Apple’s revenue came from iPhone sales.
But perhaps more importantly for Apple’s future — the iPhone is a gateway to the company’s booming services offerings.
3. Apple services — and brand loyalty
Think iTunes or Apple Music, the App Store, iCloud and Apple Pay.
These are just some of the things that make up Apple’s services business — and they’re regarded as the firm’s most important and fastest-growing drivers of revenue.
In the three months to June this year, Apple’s services saw revenue growth of 31%.
And while the iPhone might be a gateway to Apple’s offerings, things like Apple Music and the App Store, in turn, help drive brand loyalty.
If a consumer truly loves using their iPhone to buy music and movies, Apple’s hope is that they’ll move on to purchase an iPad, a Macbook, an Apple TV or watch.
«That’s the financial genius that sits inside that brand — getting consumers to keep buying the hardware,» says Paul Nelson, managing director of BrandMatters.
«Strong brands have clients who are simply disinterested in alternatives — and that’s where Apple’s strength lies. The fact that you just become a loyalist.»
4. China — and growth
Without China, the world’s biggest smartphone market, Apple’s success would look quite different.
Mainland China generates about a quarter of Apple’s profits.
In addition, most of Apple’s iPhones are manufactured in Shenzhen in southern China
And while the company suffered a rough patch between March 2016 and July last year — when its Greater China revenues saw double-digit falls — the tech giant has now reversed those fortunes.
Since September 2017, Apple has seen double-digit year-on-year revenue growth across the Greater China region.
How? Well, the iPhone has remained a symbol of wealth and prestige among China’s growing middle-income, big city dwellers.
So despite the stiff competition from cheaper home-made brands, Apple’s more lucrative iPhones, iPads and Macs have helped repair its regional revenue numbers.
5. The Apple brand today
The Forbes list, which measures the value of a company’s brand by looking at its financial numbers, has ranked Apple as the most valuable brand for the last eight years in a row. This year, it was valued at $182.8bn.
Now Forbes may only analyse companies with a presence in the US, but compare Apple’s brand value to that of Coca-Cola’s — a one-time world leader in terms of brand recognition — this year valued at just $57.3bn.
For those of us born before the turn of the millennium, it’s probably difficult to imagine a world without Coca-Cola signs somewhere along our local shopping streets.
But for the generations that follow, the instantly recognisable eaten apple seems set (so far) to be one of the brands of the 21st Century.
«The thing that Apple has been able to do, that Coca-Cola hasn’t been able to, is to remain relevant and contemporary,» says BrandMatters’ Paul Nelson.
«They have kept the human at the centre of their ecosystem, and at the centre of everything they do. Their whole brand is about humanising technology.
«The reason you get to a trillion dollars is that you create in your business model built-in barriers for customers to move elsewhere. And Apple is just that — it’s a complete ecosystem.»
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