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to think and do its business: a winning combination of exceptional products, great style and design, great strategy, innovative marketing, sleek and enticing communications. Apple owes its overwhelming success in the last years to the iPhone and to the smart iPod and iTunes product combination, a combination of a great hardware piece with great style, great software, great performance, user friendly interface, with a good e-business service. The iPod + iTunes halo effect and new great Mac computers and Mac OS software did the rest in increasing Apple revenue stream. In the 5 years between 2003 to 2008 the Apple share value increased 25 times, from $7.5 to $180 per share. At july 2008 prices, before the US Financial Crisis, Apple stock market capitalization was $160 billion. In January 2010 Apple shares topped the $210 mark. But even the best companies with the best products have bottleneck factors which often avoid full exploitation of the opportunities.
The iPod. Few people are aware - and few market analysts too - that for the first 3 years the iPod was an absolute flop. The iPod was launched in october 2001, and between 2001 and 2004 iPod sales were between 100200 thousand units per quarter, very far from today's 10-20 million units per quarter, and the iPod sales were not even covering the product research & development costs. Then, in June-Aug 2004 something happened, and iPod sales began to grow strongly, quarter after quarter. Today, we all know where the iPod stands, and what a remarkable success it is. The iPod made the fortune of Apple, and it stands out as the major turning point in the company growth. Few people know that the iPod + iTunes business idea was not conceived inside Apple, but was proposed to Apple by an outside source, a music lover and Engineer named Tony Fadell. More on Tony Fadell and on the iPod marketing on iPod Marketing Strategy The iPod marks another outstanding result in marketing: the annihilation of competitors. To know more see the analysis on
The iPod competitors
It should be noted that, since the second generation of iPods in 2002, the iPods were made compatible not only with the Mac operating systems but with Microsoft Windows operating systems as well. We should ask ourselves (and to Steve Jobs): how many iPods would have been sold if the iPods would had been compatible only with Mac operating systems?
Where the iPod is manufactured and assembled
The iPhone 3GS has a 3 megapixel autofocus camera. Steve Jobs If we talk about Apple success. no doubt. And moreover. The iPhone is 5 years ahead of all its competitors. 7. it is a product between a mobile phone and a laptop computer. In 2007. amazing user interface. and missing big numbers in unexploited sales. and he is a great communicator. and saturated. great design. He is the most skilled guy in introducing new products . Steve Jobs has been and is the great mind behind all this. With better marketing strategy. the iPhone 3G. Apple has been able to develop a revolutionary product. We have been talking with Erik Stannow about the marketing and distribution issues of Apple in the European markets and we gave some valuable suggestions to improve the Apple marketing strategy and distribution in Europe. better communication and distribution. he is a magician. and overwhelming.a market which is mature. voice control. $299 for the 32GB model. it seems that in Cupertino they don't care so much about Europe. with the successful launch of the iPhone. longer battery life... In June 2009 Apple launched its third generation iPhone: the iPhone 3GS. Vision in the strategy. A wonderful product.the most skilled in presenting the key features.". Steve Jobs has Vision. Nonetheless. Vision in the alliances. Vision in the product development. Apple has overlooked the European markets. iPhone 3GS is twice faster than the iPhone 3G. the iPhone enters a market . The most serious mistakes Apple has done concern marketing and distribution strategies in Europe. Even more important. Even calling it a smartphone is not enough. about Apple great products.The pipeline of new products which came out from Apple in the last years is impressive. In July 2008 Apple launched the second generation iPhone. . The iPhone 3GS prices: $199 for the 16GB model. more on the new iPhone 3GS on the iPhone 3GS page. Well. Apple did great.2 Mbps HSDPA internet connection. Steve Jobs is a genius. The iPhone 3GS. Apple has marked another milestone in its development and growth. Apple could have made 300% more revenues in Europe in the last 4 years.the market of mobile phones . video recording and editing capabilities. we need to talk about Steve Jobs. Apple Vice President of Marketing for Europe & EMEA. Apple Marketing in Europe We met with with Erik Stannow. and to change the paradigm in the mobile phone market. However Apple has done some serious mistakes. It is not only a mobile phone. too. More on iPhone Marketing on the iPhone Marketing Strategy page. one more thing" .
A lesson to be learned by many companies in the world. More on Apple Communications and on the Apple Commercials "I am a Mac I am a PC" on the Apple Communication Strategy page. simple. both in the online communications. of course when you have great products it is much easier to entice the costumers. Apple communication is sober. And it has a style of its own. It boosts sales. I am a PC" tv ads are a milestone in communications. clear. simple. Both in the tv ads. The famous "I am a Mac. but enhances the brand value too.. . minimalist and clever. Smart.Apple Communication Strategy. effective and humiliating (for Microsoft .). both in print ads. Well.. intriguing. but nevertheless doing it with style and cleverness is a very good point.
The Best of Apple’s Marketing Strategies If one had to summarize Apple Inc. at the launch of its products. Distribution Apple eschews big-box retailers.” The company has more than 300 Apple retail stores worldwide. Apple tries to exert control over the users’ experience with its products. it allows the company to exercise control over the sales process. Apple’s design philosophy is based on minimalism. They are asked to provide solutions to customer’s “pain points. His theatrical style and panache were successful in creating excitement before the launch of Apple products. It initially adopts skimming strategy and later launches lower-price versions with fewer features (for instance. Success by design Apple’s product strategy is simple. of late. Apple spends considerable resources to expand its stores so that it can get its prospects’ undivided attention.’s marketing strategies in one word. No Negativity. According to Yukari I.S. apart from the hardware. the company has been offering its products at lower price points in a clear effort to expand its market. iPods or iPhones.” Apple makes huge efforts to differentiate its products from its competitors. iPhone). It is no coincidence that Apple users rave about the exceptional user interface of their iPads. So. Even so. It removes clutter both from its products’ outward appearance as well as from their user interface. These efforts have succeeded in making Apple products aspirational. In California alone.” the staff at these “full service” stores are in fact trained not to sell. founder of Apple. for the iPod) or launches a newer version while continuing to sell older versions at lower price points (for example. targets early adopters with higher-than-competition prices. However. the company has more than 50 stores. In addition. Apple. Here’s a snapshot of Apple’s marketing strategies. Kane and Ian Sherr in “Secrets from Apple’s Genius Bar: Full Loyalty. Also. The hype Apple’s promotion strategy is centered around creating hype. was known for hyping up. Pricing Apple is usually referred to as the technology industry’s “high-price” leader. The late Steve Jobs. the company also develops the software so that the user has the best possible experience. with the majority of the stores in the U. It incorporates superior design in all its products so that these stand out from its competitors’ products. it would have to be “differentiation. .
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