Apple’s Marketing Strategy

Topics: IPhone, Apple Inc., Marketing Pages: 12 (3864 words) Published: April 6, 2013
Apple’s Marketing Strategy
Yanting Fang
Polytechnic Institute of New York University

Author Note
This paper was prepared for Marketing, taught by Professor James A. Cincotta. Apple’s Marketing Strategy
The Purpose of This Study
Markets change fast. Traditional marketing are difficult to adapt to the new market environment. Apple’s products catered to the consumer’s "appetite", so as to achieve the purpose of its marketing. From the original iPhone to the latest iPhone 5, it is always difficult to own an Apple’s product. Apple uses a different marketing strategy like Hunger Marketing, Innovation and Customer Satisfaction. Its unique design concept, incomparable technology advantages, electronic products in the world popularity and reputation accumulation make its marketing strategy means to have a proven track record. From 2007 when the original iPhone launched to the date of iPhone 5 released, its stock has quadrupled a high of $ 701.91. Mostly it is due to its marketing strategy, and the share price will be increased in a short period. Introduction

Apple Inc. is an American multinational corporation whose core business are electronic products like consumer electronics, computer software, and personal computer. The company's best-known hardware products are the Macintosh line of computers, the iPod, the iPhone and the iPad. Its software includes the OS X and iOS operating system, the iTunes media browser and the iLife and iWork creativity and production suites. Apple is the world's third-largest mobile phone maker after Samsung and Nokia. [1] Established on April 1, 1976 in Cupertino, California, and incorporated January 3, 1977, [2] the company was named Apple Computer, Inc. for its first 30 years. The word "Computer" was removed from its name on January 9, 2007, [3] as its traditional focus on personal computers shifted towards consumer electronics. [4] As of July 2011, Apple has 364 retail stores in thirteen countries [5] as well as the online Apple Store and iTunes Store. [6] It is the largest publicly traded corporation in the world by market capitalization, with an estimated value of US$626 billion as of September 2012. [7][8] It is furthermore the largest technology company in the world by revenue and profit, earning more than Google and Microsoft combined. [9][10] As of September 24, 2011, the company had 60,400 permanent full-time employees and 2,900 temporary full-time employees worldwide; [11] its worldwide annual revenue in 2010 totaled $65 billion, growing to $108 billion in 2011. [12] Industry Structure and Global Markets

Apple, as the weathervane of the innovation of consumer electronics products, has become the object that global consumer electronics companies is competing to imitate and learn. Apple’s Major Competitors

Apple Inc. is more like an oligopoly corporation, because its competitors have also occupied lots of markets shares (see Table A1 for Apple’s principal competitors).

Table A1
Apple’s Principal Competitors
Computer| Gateway, Compaq, HP, Dell, IBM|
Mobile| Sony, Samsung, HTC, Nokia, BlackBerry |
Tablet PC| Google, Microsoft, Asus|
MP3 (MP4)| Sony, Zune|
Operating System| Microsoft, Linux|
TV Box | Roku|

Apple’s Property
Actually, the manufacturing process includes both imports and exports activities. Take iPhone 4 as example, 34% of the parts come from Japan, 17% from Germany, 13% from South Korea, 3.6% from China and 27% from numerous other small players in the global economy. And it is considered a Chinese export to the USA even though Apple is in California. [13] Affection of Global Competition

Markets change fast and pressures of market competition increase. It’s hard for traditional marketing means to adapt a new market environment because the increasing global competition. Obviously, Apple is no exception. A huge consumer electronics market. Thanks to...

References: [1] "Gartner Says Worldwide Sales of Mobile Phones Declined 2 Percent in First Quarter of 2012; Previous Year-over-Year Decline Occurred in Second Quarter of 2009". Retrieved in May 16, 2012.
[2] Apple Investor Relations FAQ, Apple inc. Retrieved March 2, 2007.
[3] "Form 8-K SEC Filing" (PDF). January 10, 2007. Retrieved December 8, 2007.
[4] Markoff, John (January 9, 2007). "New Mobile Phone Signals Apple 's Ambition". The New York Times. Retrieved January 9, 2007.
[5] (USA) "Apple Retail Store – Store List"
[7] Kim, Susanna (August 20, 2012). "Apple (AAPL) Becomes History’s Most Valuable Firm on iPhone 5 Rumors". ABC News. ABC News Network. Retrieved August 20, 2012.
[8] “Market Cap Rankings". Ycharts. Zacks Investment Research. September 12, 2012. Retrieved September 13, 2012.
[9] “Apple 's $46 billion sales set new tech record". CNN. January 24, 2012.
[10] “Apple now worth more than Google and Microsoft combined". February 9, 2012. Retrieved February 22, 2012.
[11] “2011 Apple Form 10-K"
[12] "2010 Apple Form 10-K". Retrieved October 7, 2011.
[13] Xing,Y., and N.Detert How the iPhone Widens the United States Trade Deficit with the People 's Republic of China. ADBI Working Paper 257. Tokyo; Asian Development Bank Institute. 2012.
[14] Apple Inc. Corporate Governance Guidelines. Updated July, 2012
[16] Harvard Business School Report, by David B. Yoffie Penelope Rossano, August 14, 2012
[17] “2011 Apple Form 10-K".
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