MINISTRY OF FINANCE

UNIVERSITY OF FINANCE- MARKETING

INTERNATIONAL BUSINESS

CRAFTING AND EXECUTING STRATEGY

Topic

ANALYZING APPLE’S PRODUCT DIFFERENTIATION STRATEGY

GROUP MEMBERS:

NGUYỄN THÚY QUỲNH ( mssv: 1821003392)

BÙI THỊ PHƯƠNG THANH ( mssv:1821003397)

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HỒ NGUYỄN THANH TRÚC (mssv: 1821003462)

HO CHI MINH CITY – 2021

 Table of content

I. Theory about product differentiation strategy....................................................................3

1. Definition.......................................................................................................................... 3
2. Advantages and disadvantages..........................................................................................3
3. Types of product................................................................................................................ 4
4. Factors of product.............................................................................................................. 4
5 Market situations favorable................................................................................................5
II. Analyzing and reviewing Apple's product differentiation strategy...................................5
1. Introduction to Apple.........................................................................................................5
2. Business environment of Apple.........................................................................................7
a Macro environment.............................................................................................................7
b Micro environment.............................................................................................................9
3. Product differentiation strategy of Apple.........................................................................10
a Main product lines of Apple.............................................................................................10
b Product’s differentiation of Apple....................................................................................17
III. Recommendation...........................................................................................................22
1. SWOT.............................................................................................................................. 22
2. Recommendation.............................................................................................................24
 PREFACE
At present, all companies operate in a fiercely competitive environment and competitors are
constantly changing policies to attract customers. For each type of goods, consumers face
many different choices of types, and brands of goods go along with the increase in
customers' needs. Therefore, customers have the right to choose the most attractive goods
in order to satisfy their needs and benefits as much as possible.
Faced with such fierce competition, companies have to do policies and make strategies to
survive and win. Businesses cannot work on inspiration and worship the needs of their
customers and competitors; they aware that marketing is a company-wide philosophy, not
just a function. Employees are trained to be customer-oriented and best respond to their
needs. However, in order to attract customers, it is necessary to have a positioning strategy
to create a difference between companies and their competitors. Therefore, companies need
to identify the weaknesses to have solution and differences to create a competitive position,
along with finding the weaknesses of competitors to attack and avoid.
Apple is also not out of these differentiation strategies, which is founded by Steve Jobs- a
person really wants the magnetic business and Steve Wozniak- an electrical engineer. After
nearly 35 years, Apple has become a major company in the world and has entered the top 5
companies with the highest market capitalization in the US stock market. The unique
success in this history is due to the wise leadership of the company led by Steve Jobs and
the creative and enthusiastic work of a team of programmers and managers.
Facing Apple's inexplicable success, research to find out the reasons for the above success
is very meaningful for managers, especially Vietnamese ones, when we are preparing to
enter the process of globalization integration with the world economy, which is facing the
fierce competitiveness of this dynamic and fierce market economy. With the desire to learn
more about the competitive strategy and apply the theory to the practice of the Apple
company, in order to focus this essay on “Apple's product differentiation strategy”.
Although there are many reasons that led to the causes of Apple's success, due to the
limited ability outlined in this document, we only mention a few main issues: General
theory of product differentiation strategy in business, analyzing and reviewing Apple's
product differentiation strategy and its swot strategy.
 I. Theory about product differentiation strategy
1. Definition
Product differentiation is a marketing strategy designed to distinguish a company's products
or services from the competition with the aim of appealing to a target market. Successful
product differentiation involves identifying and communicating the unique qualities of a
product or company while highlighting the distinct differences between that product or
company and its competitors.
When implemented successfully, product differentiation builds a competitive advantage because
customers view a product as superior over other similar product substitutes.
It also serves as a catalyst in a buyer's decision-making process.
2.Advantages and disadvantages
 Advantages
It creates additional value
Product differentiation will give your prospective customers added value. This value can
either come directly from the product and service, or from the brand perception.
It develops brand loyalty
Every time people see your products on store shelves or in an online ad, they'll know
exactly what your brand represents. And they'll be more likely to choose your product over
the competition.
It allows businesses to compete in different ways
With product differentiation, companies have the ability to compete in areas other than
price. They can be innovative in style, quality, features, etc. It's up to the business to decide
which area of differentiation will work best for their target markets.
 Disadvantages
Revenue increases are not guaranteed
Will consumers find value in the unique features your product provides? A differentiation
strategy doesn't necessarily guarantee that consumers will find the value that separates your
product from other, standard options.
The offering's perceived value can decline
As consumers become savvier and technology and products advance, the differentiation of
your product might no longer provide value to customers. You should consider how long
your differentiation strategy will last and if it will need to be modified eventually.
It can strain resources
Pursuing a differentiation strategy means a lot of time, energy, resources will be spent to
develop a product that sets itself apart from the competition. This can put a burden on
research and development teams, product manufacturers, and even your profit margins.
These effects are felt more by smaller businesses who have few employees and limited
resources.
3.Types of product
 Horizontal differentiation
Horizontal differentiation refers to differentiation in products that cannot be analyzed in
terms of quality or price point. Products associated with horizontal differentiation offer the
same thing at similar price points. Making decisions about horizontally differentiated
products often involves a customer's personal preference. Horizontal differentiation can be
about packaging, shapes, flavors and colors (mineral water brands, types of dish soap, and
beverages, such as soda)
 Vertical differentiation
Vertical differentiation refers to distinctions in products that can be evaluated based on
quality. Products in this type of differentiation are also dependent on price. The aim of
vertical differentiation is to distinguish a product so it can improve toward higher quality
and therefore gain a competitive advantage (vehicle brands as per their manufacturers, and
branded product vs. generics, such as basic clothing compared to clothing by a top
designer)
 Mixed differentiation
Also referred to as simple differentiation, mixed differentiation depends on numerous
factors. This type of differentiation is often combined with horizontal differentiation (Cars
of the same class and same price points from two distinct manufacturers)
4.Factors of product
Differentiation of a product can occur based on various factors, including:
Features: Product characteristics like ingredients, origin, shape and size differentiate
products that are in the same price spectrum.
Design: The design of the product or any visual elements concerned with the product can
be used as a source of differentiation. Minor design enhancements in the packaging or
internal/external appearance can often lead to positive reactions.
Price: Price is an essential determinant of which target group will be drawn to a particular
brand's product. In this regard, cheaper is not the only differentiating factor to consider with
product pricing.
Marketing efforts: Marketing efforts are a good strategy for establishing brand image,
which is a good product differentiator. Additionally, marketing strategies such as sales
promotion fulfill the role of add ons to differentiation strategies.
5.Market situations favorable
 Buyer needs and uses of the product are diverse.
Bigger window of opportunity to do things differently
 There are many ways to differentiate the product or service that have value to buyers.
Industries in which competitors have opportunities to add features to products and services
are well suited to differentiation strategies.
 Few rival firms are following a similar differentiation approach.
Differentiator encounter less head to head rivalry when it goes it own separate way in
creating value and does not try to out differentiate rivals on the very same attributes
Many rivals base their differentiation and “strategy overcrowding”- competitors end up
chasing much the same buyers with much the same product offerings.
 Technological change is fast-paced and competition revolves around rapidly evolving
product features.
Rapid product innovation and frequent introductions of next version products heighten
buyer interest and provide space for companies to pursue distinct differentiating paths.
II. Analyzing and reviewing Apple's product differentiation strategy
1. Introduction to Apple

Formerly
Apple Computer, Inc
(1976 - 2007)
Apple, Inc (2007 – today)
Founded April 1, 1976

Founders Steve Jobs

Steve Wozniak
 Ronald Wayne

CEO Timothy D. Cook

Headquarters 1 Apple Park Way,
Cupertino, California, US
Number of locations 510 (2020)
Number of employees 147,000 (2020)

Apple Inc is an US computer technology corporation, headquartered in Silicon Valley in

San Francisco, California. Apple was founded on April 1, 1976 under the name Apple
Computer Inc and changed its name to Apple Inc in early 2007. Because at this time the
company does not only supply computers but also other products such as smartphones,
computers. tablet and so on.
By the end of 2020, Apple’s total revenue is $ 274.5 B, the total profit is $ 57.4 B. Of
which, the largest share is coming from iPhone and iPad tablets. Up to now, Apple has sold
more than 1 billion iPhone phones. A desirable number for any cell phone manufacturer.
Over the years, Apple has expanded the number of retail locations and their geographic
reach with 510 stores in 25 countries worldwide.
History and important milestones
Apple’s history and development have always been associated with breakthrough turning
points in the creation of new generation electronic technology products.
In 1976, the first Apple product was a circuit board computer. The machine was unveiled at
a computer club in Palo alto, California.
In 1979, Steve Jobs introduced the Apple III, making a giant breakthrough in computer
technology . The Apple III is the first Apple product to allow the user to choose both a
screen font and a keyboard layout. This is extremely important in the advancement of
personal computers
In 1985, after a power conflict, Steve Jobs left Apple. But in 1997, after the company lost
more than 1.8 billion, the board of Apple decided to invite Steve Jobs back as CEO of
Apple.
In 1998, Apple released the iMac G3, which was the first of its line of iMac personal
computers and continues to evolve to this day. A week after the iMac came out, Apple
announced that sales tripled its sales in the previous year, with more than 1 million
computers sold.
In 2001, Apple introduced the iPod music player. With its impressive storage capacity and
transfer speed, the iPad quickly became the best-selling product in 2001. In addition, Apple
also launched the operating system mac os 10. Stability, high speed and ease of use have
made many people decide to switch from Windows to Mac.
In 2007, the first generation iPhones were officially launched on the market by Apple.
In 2010, Apple launched the iPad tablet computer. iPad is like a large iPhone but fully
functional as a laptop. After the iPad came out, more than a million tablets were sold within
a month.
In 2011, Apple officially surpassed the oil corporation exxon mobil to become the
enterprise with the largest break-even value in the world. Before surpassing Exxon, Apple
defeated other big names including Microsoft, IBM and Intel. The products that bring
Apple where it is today are the iPod music players, iPhone phones and iPad tablets.
2. Business environment of Apple
a Macro environment
 Political factor
To bring its products into the market of a certain country requires strategists to study the
legal and political environment as an essential part of business. The volatility and rapid
change of politics create a risky environment for doing business because there are different
laws and regulations in each country. Apple’s products and services are now available in
many countries. So it may face a wide range of political forces because of its global
presence. For instance, Apple lowered its revenue outlook in early 2019 and blamed the
trade war between China and the USA for this .
 Economic factor
Apple is the first US company to be valued at $2 trillion on the stock market . However,
there are some economic factors that may turn out to be costly for the company. For
example, China is the world’s biggest smartphone market. Therefor, a slowing Chinese
economy in 2019 badly impacted on the sales of iPhones. Or last 2020, the world economy
was facing a global financial crisis due to covid. However, this crisis benefits the tech giant
of Apple. In mid-March 2020, Apple’s market capitalization was still just under $ 1 trillion
when the stock market plunged due to psychological panic about the epidemic. But then,
the stock market – especially shares of the five Big Techs including Apple, Microsoft,
Amazon, Alphabet and Facebook – soared. Investors have poured billions of dollars into
technology corporations, because they believe that corporations’ enormous strength and
size will be a safe heaven in this recession. As a result, this economic crisis has made the
already strong companies stronger.
 Sociocultural factor
Many youngsters love tech devices and consider them part and parcel of their lives. This is
surely a good thing for Apple. However, it is also true that there are now many people in
the USA and some other countries who are concerned about the growing powers of tech
companies. This may impact on their buying decisions.
Apple made a lot of money in China by attracting middle-class customers with luxury
products; however, it is now challenged by local players such as Huawei and Xiaomi who
are eating into Apple’s market share by offering customers tech devices that are lot cheaper
than Apple’s products.
 Technological factor
Needless to say that Apple has revolutionised the global technology industry. However, it is
now locked in technology battles with a number of competitors. Its competitors have the
capabilities and technologies to duplicate its products and services. Although Apple is a
technology giant, it has come up with a limited number of new products in recent years
( Apple Watch and Apple Music). As the competition is extremely high, the company
should explore the potentials of introducing fundamentally new products and services into
the market.
 Environmental factor
Many environmentalists argue that Apple is contributing to the damage of natural
environment. Making smartphones is harmful to the environment as it requires dangerous
mining practices. Likewise, it requires the use of hazardous chemicals with no proper
recycling system. Therefore, many customers are now sticking with old iPhones rather than
buying new ones. However, Apple has announced that its products are going to be carbon
neutral by 2030.
 Legal factor
To protect the interests of the company and consumers, Apple has participated in a series of
patent lawsuits. Apple is very active and put in a lot of effort to protect its products.
Typically, the lawsuits over design copyright disputes between two technology giants,
Apple and Samsung, have yet to come to an end.
b Micro environment
 Employees
Apple is aware that success of any organization cannot be achieved without employees.
Each employee at Apple has clear allocation of responsibilities; they understand their role
and deliver the service as per the standards established by the Apple. All managers treat
their employees with respect and dignity. Managers guide their team members and provide
all type of support, training to drive customer satisfaction and organizational growth. Apple
also ensures that it provide opportunity of growth and learnings to its employees.
Employees at Apple can freely share their problems and issues with their seniors. A healthy
working environment at Apple resulted in mutual growth of stakeholders.
 Suppliers
Apple has a large supplier base that gives the company high bargaining power. The
company’s suppliers are located in different regions of the world, such as China, India and
South Africa. Apple believes in empowering its suppliers by offering training and capacity
building programs. A healthy and close relationship with suppliers allows a company to
manage its supply chain effectively and gain a competitive advantage. Apple has developed
strict codes of conduct for its suppliers that suppliers need to follow. Apple ensures that all
suppliers follow the code of conduct by performing different tests throughout the year and
across locations. Apple guarantees that even the small components are of the best quality.
 Customers
Apple delivers what it promise to its customers such as good quality, innovative
technology, excellent functioning and competitive pricing. Apple achieved customer
satisfaction by efficiently managing all processes starting from procuring equipment,
production of goods, retailing of the products and after sales services.
 Competitors
Apple is operating in competitive market. Major competitors of Apple are Samsung,
Microsoft and Google. In developing countries Apple’s products are considered as
premium products due to high pricing, however, Samsung has variety of products that are
capable to fulfill needs of the customers and suitable on their pockets. Developing countries
have wide untapped market and huge potential of growth that is presently not targeted by
the Apple. It is important for the Apple to increase its product range and develop products
in low price range in order to gain market share. Presently Samsung is holding top position
when it comes to market share in Smart phone market. Apple needs to work strategically in
order to regain its top position especially when product life cycle is too short and dynamics
of market are continuously changing.
3. Product differentiation strategy of Apple
a Main product lines of Apple
 Ipod
The name iPod was proposed by Vinnie Chieco, a freelance copywriter, who was called by
Apple to figure out how to introduce the new player to the public. The iPod is a line
of portable media players and multi – purpose pocket computers designed and marketed
by Apple Inc. 

There were six generations of the iPod Classic. The first iPod released in 2001 was part of
this line that would be called "Classic". It was available in silver or black from 2007
onwards, replacing the "signature iPod white". On September 9, 2014, Apple discontinued
the iPod Classic.

- The iPod Mini was a smaller digital audio player that was designed and marketed

by Apple. While it was sold, it was the midrange model in Apple's iPod product line.
It was released on February 20, 2005. While it was in production, it was one of the
most popular electronic products on the market, with consumers often unable to find
a retailer with the product in stock. The iPod Mini was discontinued on September 7,
2005 after 1 year of being made, and was replaced by the iPod Nano.
- The first iPod Nano generation model was introduced on 7 September 2005, as a
replacement for the iPod Mini, using flash memory for storage. The iPod Nano went
through several differing models, or generations, since its introduction. Apple
discontinued the iPod Nano on July 27, 2017.
- The iPod Shuffle was the smallest model in Apple's iPod family, and was the first
iPod to use flash memory. The first model was announced at the Macworld
Conference and Expo on January 11, 2005; the fourth and final – generation models
were introduced on September 1, 2010. The iPod Shuffle was discontinued by Apple
on July 27, 2017.
 - The iPod Touch was a line of iOS – based mobile devices designed and marketed
by Apple Inc, with a touchscreen – controlled user interface. It can be used as
a music player and a handheld gaming device, also it can be used as a digital camera,
a web browser and for messaging. It was similar in design to the iPhone, but it
connects to the Internet only through Wi – Fi and does not use cellular network data,
therefore it was not a smartphone. The first generation was released on September
5 , 2007 and the current iPod Touch was the seventh generation model, released on
May 28, 2019.
 Iphone
Iphone was presented by Apple in 2007 and rapidly became a new standard in the global
smartphones market. Whether you love Apple or not, everyone needs to admit that the birth
of the iPhone is not like the birth of any other technology devices, but it is considered as the
first bell for a revolution in the smartphone market. Because the birth of the iPhone was a
turning point in the development of the mobile industry and made Apple truly one of the
leading technology groups in the world.
 January 9, 2007: iPhone 2G
CEO of Apple – Steve Jobs introduced the iPhone as a combination of three devices in one,
including a phone, a web browser and an iPod. The first generation of iPhone created a
strong wave in the global smartphone market. The selling price of iPhone in the US is $500
for the 4 GB version and $600 for the 8GB version with a 2 year contract.
 July 1, 2008: iPhone 3G
iPhone 3G was not 3rd generation but it implied that this phone has been intergrated with
3G network. If the first iPhone back’s was aluminum, the back of iPhone 3G is plastic with
2 colors black and white. This generation also has 2 versions, 8GB and 16GB, priced at
$200 and $300 in the US.
 June 8, 2009: iPhone 3GS
iPhone 3GS was a little different in hardware and software compared to the iPhone 3G such
as 3MP camera, digital compass, voice over, high-speed BLX, high-end graphics, 3D game
support.
 June 7, 2010: iPhone 4
iPhone 4 had a slim and sophisticated design with a stainless steel shell combined with 2
black glass layers. This device had 2 versions with 16GB and 32GB capacities. It did not
have memory card slot but was equipped with micro – sim slot. iPhone 4 was improved in
terms of design and has a high – quality camera that was compared to a camera and has a
faster and more powerful iOS 4.
 October 5, 2011: iPhone 4s
Apple has officially introduced the iPhone 4S. It retained the design of iPhone 4 but was
equipped with A5 chip, graphics processing speed 7 times faster than the previous
generation, the ability to intelligently switch between two antennas to transmit and receive
better signals. With the new equipment, Apple still ensured battery life with 8 hours of
talking time on 3G networks, 14 hours of talk time on 2G networks, 6 hours of web surfing
with 3G or 9 hours of Wi-Fi mode. The Siri feature allowed users to give commands to
iPhone 4S with voice, it can fulfill both complex inquiries and requests.
 September 21, 2012: iPhone 5
iPhone 5 was released inheriting the design of iPhone 4 / 4S, powerful A6 processor, 4G
LTE network, 4 – inch screen resolution, 8MP camera with full HD video, Panorama
shooting, new operating system, iOS 6 with many complete features. These improvements
would help iPhone 5 win more loves among users and promised to be the best-selling
iPhone. The iPhone 5 was explicity discontinued and replaced by the iPhone 5C.
 September 20, 2013: iPhone 5s and 5C
Apple announced the iPhone 5C and the iPhone 5S during a media event at
its headquarters in the United States.
The iPhone 5S maintained almost the same external design as its the iPhone 5, although the
5S received a new white/gold color scheme in addition to white/silver and space gray/black.
It has vastly upgraded internal hardware and introduced the A7 chip. A redesigned home
button with Touch ID, a fingerprint recognition system which can be used to unlock the
phone and authenticate App Store and iTunes Store purchases. The camera was also
updated with a larger aperture and a dual – LED flash optimized for different color
temperatures.
The iPhone 5C is a variant of the iPhone 5, with similar hardware specifications but a hard-
coated polycarbonate shell instead of the aluminum of the original iPhone 5. The iPhone 5C
was available in several color options and shipped with iOS7.
 September 19, 2014: iPhone 6 and iPhone 6 Plus
The iPhone 6 and 6 Plus include larger 4.7 and 5.5 inches (120 and 140 mm) displays, a
faster processor, upgraded cameras, improved LTE and Wi – Fi connectivity and support
for a near field communications – based mobile payments offering. The iPhone 6 and 6
Plus received positive reviews, with critics regarding their redesign, specifications, camera,
and battery life as being improvements over previous iPhone models.

 September 25, 2015: iPhone 6s and iPhone 6s Plus

The iPhone 6s and 6s Plus had a similar design to the iPhone 6 but includes updated
hardware, including a strengthened 7000 series alunimium alloy chassis and upgraded A9
chip, a new 12-megapixel rear camera that can record up to 4K video at 30fps, can take
dynamic “Live Photos” and also features for the first time front facing “Retina Flash”
which brightens up the display three times of its highest possible brightness for selfies, 2nd
generation Touch ID fingerprint recognition sensor, LTE Advanced support, and "Hey Siri"
capabilities without needing to be plugged in. Those also introduced a new hardware
feature known as "3D Touch", which enabled pressure-sensitive touch inputs. The iPhone
6S and iPhone 6S Plus were also the first smartphones to use the fastest high end flash
storage NVM Express. The iPhone 6S and 6S Plus were discontinued on September 12,
2018.
 March 31, 2016: iPhone SE
The name SE is an acronym for Special Edition. The first – generation iPhone SE shares the
same physical design and dimensions as ịPhone 5s, and has upgraded internal hardware,
including the newer Apple A9 chip, greater battery capacity, and a 12-megapixel rear
camera that can record up to 4K video at 30 frames per second. Like the iPhone 6s, the
iPhone SE can shoot Live Photos and has features like Retina Flash, and the option to have
Hey Siri activated, without the need to be plugged into a power source. The iPhone SE was
discontinued by Apple on September 12, 2018. Its successor, the second – generation
iPhone SE, was announced on April 15, 2020, and released on April 24, 2020.
 September 16, 2016: iphone 7 and iPhone 7 Plus
The iPhone 7 and iPhone 7 Plus's overall design is similar to iPhone 6S and iPhone 6.
Changes introduced included new color options (matte black and jet black), water and dust
resistance, a new capacitive, static home button, revised antenna bands, and the
controversial removal of the 3.5 mm headphone jack. The device's internal hardware
received upgrades, including a heterogeneous quad – core system – on – chip with
improved system and graphics performance, upgraded 12 megapixel rear-facing cameras
with optical image stabilization on all models, and an additional telephoto lens exclusive to
the iPhone 7 Plus to provide enhanced (2x) optical zoom capabilities and portrait mode.
The iPhone 7 was discontinued and removed from Apple's website on September 10, 2019.
 September 22, 2017: iPhone 8 and iPhone 8 Plus
The iPhone 8 and 8 Plus retain the Retina HD Display found in the iPhone 7, but they now
feature True Tone technology, allowing for automatic screen adjustments based on
surrounding ambient lighting. The iPhone 8 features a 12 MP camera with autofocus, f/1.8
aperture and optical image stabilization capable of capturing 4K video at 24, 30, or
60 frames per second, or 1080p video at 30, 60, 120 or 240 frames per second. The iPhone
8 and 8 Plus contain the Apple A11 chip, a hexa-core processor that the company says
features two cores that are 25% faster than the iPhone 7's A10 processor and four cores that
are 70% faster than the prior model.
 November 3, 2017: iPhone X
The iPhone X used a glass and stainless-steel form factor and "bezel – less" design,
shrinking the bezels while not having a "chin", unlike many Android phones. It was the
first iPhone to use an OLED screen. The home button's fingerprint sensor was replaced
with a new type of authentication called Face ID, which used sensors to scan the user’s
face to unlock the device. This face-recognition capability also enabled emojis to be
animated following the user's expression (Animoji). With a bezel-less design, iPhone user
interaction changed significantly, using gestures to navigate the operating system rather
than the home button used in all previous iPhones. At the time of its November 2017
launch, its price tag of US$999 also made it the most expensive iPhone ever, with even
higher prices internationally due to additional local sales and import taxes. The iPhone X
remains discontinued, but as of February 2019, Apple started selling refurbished models
starting at $769. The price was subsequently lowered to $599 in November 2019, and $549
in October 2020.
 September 21, 2018: iPhone Xs and iPhone Xs Max
The XS Max was the first plus-sized iPhone to have the newer bezel-less form factor, as the
iPhone X did not have a larger variant. The iPhone XS has a design visually near-identical
to the iPhone X but includes upgraded hardware, featuring the A12 Bionic chip built with
a 7 nanometer process. It also features a 5.85 inch (149 mm) OLED display (marketed as
5.8 inch) with a 2436x1125 resolution at 458 ppi and contains dual 12-megapixel rear
cameras and one 7-megapixel front-facing camera. The iPhone XS Max features the same
hardware and cameras, but has a larger 6.46 inch (164 mm) OLED display (marketed as 6.5
inch) 2688 x 1242 resolution at 458 ppi and battery (3,174mAh). It was also noted by the
media that the XS received a smaller battery than that of the X (dropping to 2,658 mAh
from 2,716 mAh). The XS' battery is a new single-cell L-shaped battery, while the iPhone
XS Max battery remains two cells like the iPhone X. Additionally, Apple states that the
iPhone XS lasts up to 30 minutes longer than iPhone X, while the iPhone XS Max lasts up
to 1.5 hours longer than iPhone X.
 October 26, 2018: iPhone Xr
The XR had similar hardware to the XS, but with a few features removed to reduce the
price. Instead of 3D Touch, the XR came with Haptic Touch where the user long-presses
until they feel a vibration from the Taptic Engine. The XR also had an LCD display known
as "Liquid Retina" instead of the OLED screen used on the X, XS, and XS Max. The
display on the XR had a resolution of 1792 × 828 pixels and a pixel density of 326 ppi,
compared with 458 ppi on other X-branded iPhones. However, it has 120 Hz Touch Sample
Rate same as the XS and XS Max. Unlike most other phones in the X-series, the XR ships
with a single camera on the rear on the phone, featuring exactly the same main camera
sensor as on the XS and XS Max, utilizing a 1/2.55" sensor size and 1.4μm pixel size.
Unlike the XS, it did not have optical zoom, because of the single camera.
 September 20, 2019: iPhone 11, iPhone 11 Pro, iPhone 11 Pro Max
The prominent changes compared with the iPhone XR are the Apple A13 Binonic chip, and
an ultra-wide dual-camera system. While the iPhone 11 Pro came with an 18 W Lightning
to USB-C fast charger, the iPhone 11 came with the same 5 W charger found on
previous iPhones, though the 18 W charger is compatible with both models.
The 11 Pro is Apple's first iPhone to feature a "pro" designation, The iPhone 11 Pro and Pro
Max both have an A13 Bionic chip processor. Both models were rated IP68 water and dust
resistant, and were resistant for 30 minutes at a depth of 4 meters. The iPhone 11 Pro had a
5.85 inch (marketed as 5.8 inch) OLED display with a resolution of 2436 × 1125 pixels (2.7
megapixels at 458 ppi), while the iPhone 11 Pro Max has a 6.46 inch (marketed as 6.5 inch)
OLED display with a resolution of 2688 × 1242 pixels (3.3 megapixels at 458 ppi). The
iPhone 11 Pro and Pro Max both include a triple-lens 12 MP rear camera array. The phone
also had an automatic Night Mode allowing the camera to take brighter pictures with
reduced noise in low light environments. Both were discontinued on October 13, 2020.
 October and November of 2020: iPhone 12, iPhone 12 mini, iPhone 12 Pro, iPhone
12 Pro Max
The iPhone 12 series was the first major redesign since the iPhone X, The iPhone 12 and 12
Mini have a new design featuring a flat chassis, a design seen with the iPhone 4 until
the iPhone 5s and the original iPhone SE. The notch size was similar to previous iPhone
models, despite speculation about a reduction in width. All of the iPhone 12 series had
the Apple Bionic chip A14, the first ARM - based smartphone system – on –
chip manufactured on the 5 nm process node. Both phones had two rear 12 - megapixel
cameras: wide and ultra-wide. The wide camera was a 26mm full-frame equivalent with an
f/1.6 aperture (which captures 27% more light than the f/1.8 aperture in the iPhone 11) and
a seven-element lens. The ultra-wide camera is a 13mm full-frame equivalent with an f/2.4
aperture and a five-element lens.
The iPhone 12 Pro features a 6.1-inch display and the larger iPhone 12 Pro Max variant
features a 6.7-inch display. Both models had the Super Retina XDR OLED display with
thinner bezels than previous generation iPhones. The iPhone 12 Pro Max featured the
largest display on any iPhone to date. The phones also introduced a new glass –
ceramic covering, named 'Ceramic Shield'. Apple claimed the Ceramic Shield has "4 times
better drop performance" and that it is "tougher than any smartphone glass".
The iPhone 12 Pro featured four cameras: one front-facing camera and three back-facing
cameras, including a telephoto, wide, and ultra-wide camera. The iPhone 12 Pro also
featured a LiDAR scanner for AR and computer-aided photo enhancement services. The
iPhone 12 Pro also adds Night Mode for video recording on all four cameras. Night Mode
video supported up to 4K resolution and 60 frames per second camera recording. Unlike the
iPhone 11 Pro and iPhone 11 Pro Max where the only difference was the screen size and
battery size, the iPhone 12 Pro Max adds sensor-shift image stabilization to the camera
system, and replaces the f/2.0 aperture telephoto camera lens with a f/2.2 aperture lens. The
iPhone 12 Pro and iPhone 12 Pro Max were the first smartphones capable of shooting in
10-bit high dynamic range Dolby Vision 4K video at up to 60 frames per second.
 iPad
iPad is a line of tablet computer designed which run the iOS and iPadOS mobile operating
systems. The first iPad was released on April 3, 2010; the most recent iPad models are
the eighth – generation iPad, released on September 18, 2020; the fifth – generation iPad
mini, released on March 18, 2019; the fourth – generation iPad Air, released on October 23,
2020; and the second-generation 11-inch (280 mm) and fourth-generation 12.9-inch
(330 mm) iPad Pro, released on March 25, 2020 (different models and generations listed in
the sidebar).
 iMac and Macbook
Although nowadays iPhone is the thing that "overwhelm" each release, but the Apple
computer is what started it all. Transforming from the Apple I, II, III of the late 19th
century has gradually turned into the iMac, Macbook of the 20th and 21st centuries, the
development of the Mac computer was associated with the process of formation and
development of Apple Inc. MacBook Air M1 and Macbook Pro M1 is the most latest
product that Apple introduced to the market.
 Apple Watch
The Apple Watch was released in April 2015 and quickly became the best –
selling wearable device. Apple has introduced new generations of the Apple Watch with
improved internal components each September, each labeled by Apple a 'Series', with
certain exceptions.
b Product’s differentiation of Apple
 Feature: Using their own operating system
 Comparison of MacOs with Window on PC:
Not as many as Windows users, but most Mac fans become worshipers, followers and feel
difficult to switch to another operating system. The first impression of the MacOs is its
elegance, in addition to its ease of use, stability, all in a top notch design. However, despite
having few users, the market share is not large, but Apple's computer is revered as a legend.
Here are 4 points that make the Mac more different than Windows.
 The MacOs is more secure than Windows
Mac users have no concept of viruses eating up programs. Only a very small number of
malware attacks this operating system. Meanwhile, Windows is the main point of computer
viruses, malware with millions of different malicious codes. Mac computers also show
harmony between hardware and software, so there are less compatibility errors. Mac OS X
software is regularly updated with a single source. Another point that makes hackers not
excited to penetrate the Mac is that the market share of these products is too small, not
much applied to important areas like Windows.
 Mac is easier to use than PC
With a streamlined interface, MacOS X has a reputation for being easier to use than
Windows. Even the first - time computer users have such views.
 Mac is better for artists
With a smooth interface, well – designed laptop and support tools, MacOS X is loved by
the art people. The creativity of Apple in its products from design to outstanding features
for the artist. The iLife software suite, for example, allows users to make short videos,
develop ideas and facilitate video editing. Other Apple applications also provide good
support for those who do graphics, 3D design, sound,etc.
 Mac is more stable than Window
Windows depends a lot on the version used. While XP was appreciated, Vista left
Microsoft in the battle for the Mac. In addition, Apple computers are stable, because their
operating system is compatible with the hardware, "Apple" produces both, while Microsoft
only offers software to install on computers of different brands.
 Compare iOS from iPad, iPhone to Android for competing products
 Fast software updates for many years
Apple generally supports new iPhones and iPads with iOS updates for five to six years after
their release date, and all of those devices get the same updates at the same time. Users get
new features and apps, support for new image and video formats and security protocols,
and patches for both online security threats and flaws that could allow people to get data
from your phone. Among Android phones, only Google’s Pixel phones are guaranteed
prompt updates—and even then, only for two or three years from the device’s release date.
 Long – term value
Because Apple supports iOS devices for a relatively long time, you can hand them down to
friends and family members without worrying about app compatibility or security risks.
And they hold their resale value better than Android devices, so you can sell them for more
money, or get more for a trade - in, when it comes time to upgrade.
 Design
Apple has introduced extremely beautiful designs and become a leader in design of a
technology brand. Apple's designs have become an iconic. Apple's changes have created
new design trends both inside and outside the computer industry to bring great user
experiences. They really impress consumers in the harmonious combination between
fashion beauty and modern technology. The laptops, phones, or music players all have
simple, modern lines, but are very delicate, seductive, and attract users. Apple device
models almost never feel cheap or inferior, but all are very delicate.
 iPhone
Until now, the iPhone has two design is that the round edges of the display and the square
ones. Every time it upgrade to a new version, the design of the iPhone does not change
much, the material is more improved, the screen is wider and the touch screen that any
company can not keep up with. All of that bring to the users a different experience when
using.
 iMac
Apple differentiation’s based on sophisticated design which is considered the computer as
part of an office decoration rather than a simple ugly machine. The iMac is an all – in – one
computer model that brings screens and components together into one. Having
breakthrough design with matte case makes the iMac unlike any previous generation of
computers. This is also a big step forward which repelling boring monotonous cases into
the past and replacing it with a multicolored transparent plastic shell that has been for a
long time. IMac keyboard is designed super thin, the keys are flat, soft, feeling very
comfortable when typing. The iMac is considered to be perfect in every detail. Every little
detail of the iMac also makes a difference.
 Macbook
Considering the world's thinnest laptop, the MacBook Air can be contained in an A4 –
sized case because as Steve Jobs introduced "the thinnest part of the MacBook Air is only 4
mm thick and the thickest detail is only 16 mm ". This is the feature that the Macbook can
knock out all competitors in this segment.
 Price
Apple has power over prices through product differentiation, innovative advertising,
ensured brand loyalty, and hype around new product launches. By focusing on customers
willing to pay more and maintaining a premium price at the cost of unit volume, the
company also set up an artificial entry barrier to competitors. Apple sells its products and
resells third-party products in most of its major markets. It sells directly to consumers
and small to midsized businesses through its retail and online stores. The company also
employs a variety of indirect distribution channels, such as third – party cellular network
carriers, wholesalers, retailers, and value-added resellers.
 Retail pricing
Apple uses a MAP (minimum advertised price) retail strategy. MAP policies prohibit
resellers or dealers from advertising a manufacturer’s products below a certain minimum
price. MAPs are usually enforced through marketing subsidies offered by a manufacturer to
its resellers. According to Macworld, Apple maintains its high - priced products’ popularity
by only offering retailers such as Walmart or Best Buy a marginal wholesale discount. This
small percentage in savings isn’t enough of a profit margin for retailers to offer big
discounts on Apple’s products. Therefore, customers end up paying a price close to the
manufacturer’s suggested retail price. However, a retailer could give up this small profit
margin and offer products at a discount to attract more customers. Apple prevents this
scenario by offering monetary incentives to retailers to sell goods at the MAPs fixed by the
company. This pricing strategy is effective, as it prevents retailers from competing directly
with Apple’s own stores. It also ensures that one reseller doesn’t have an advantage over
another. Apple is thereby able to keep its distribution channels clean while making more
money on its direct sales.
 Premium products and pricing
Steve Jobs’s vision for Apple was always to create a premier product and charge a premium
price. Apple’s cheapest product prices are usually midrange, but the products’ features
ensure a high – quality user experience. The hardware and user interface are designed to
provide a lot of value for the price, keeping profits high. Iphone 12 mini is an example
which is one of the newest smartphone that Apple released last year. It only had the price at
$649 and still had the high – quality that the users need.
 Promotion
Apple applies a life cycle marketing strategy that includes the following stages:
introduction, growth, maturity, and decline. Specifically, we see that every Apple’s product
launched on the market absolutely follows the above steps with a suitable marketing
strategy for each stage.
When the market comes to the decline stage, the design department launched a series of
new models to create a new life cycle for the product. The appearance of a series of
different versions of iphone continuously get consumers crazy for it.
 Focusing on unique value proposition
One thing Apple hardly engage with is the pricing of their products. No matter how many
people think they are higher than their competitors, Apple doesn't budge because they focus
on selling their unique value proposition - creating high quality, innovative products that
are an experience from the moment customer open the box. With this in mind, Apple has
also managed to focus on creating unique customer experiences that other competitors
simply cannot replicate. From features to applications and the overall Apple ecosystem that
works harmoniously to create a seamless experience across all of its products, Apple knows
how to make customers feel like they are getting value for money.
 Effective use of product placement
An important feature of Apple marketing strategy is that it does not use online ads on with
Google or Facebook. Instead, marketing strategy of Apple relies mainly on two pillars –
product placement, especially with celebrities and in popular shows, and the buzz created
by positive reviews in the media. The company achieves positive reviews due to high
quality and advanced features and specifications of its products and services. Moreover, the
company proactively contributes to the creation of positive reviews in the social media. For
example, Apple usually sends new iPhones to selected technology and mainstream media
outlets to allow them to publish reviews before the phones went on sale.
 Storytelling through video and viral marketing
Storytelling through video and viral marketing is an important element of marketing
strategy for Apple. The company conveys its marketing message through aspirational
storytelling that resonate with members of target customer segment. An important part of
creating a memorable customer experience lies in using the art of storytelling to create
these experiences that connect with customers and audiences through the sensors. It's the
high quality images that draw your eye when you see an Apple ad, or the feel of the
products you get when you're in an iStore. This all helps immerse customers in an
experience that doesn't necessarily feel like you're shopping for just a product but rather for
something that excites you, and will continue to excite you long after you've made the
purchase.
 III. Recommendation
1. SWOT
 Strength
Brand: Apple is considered the third valuable company globally, behind Amazon and
Google with a brand value of up to $ 140 billion (as of early 2020)
Over the years, Apple has built a solid brand name in the IT market. It can be said that
when talking about Apple, people will think of a famous, safe, and classy brand.
The technology leader: Apple was one of the first companies to produce the most
innovative products, for example, the duo of products that changed the world: the iPhone
and the iPad. Apple is still working on perfecting and making better devices.
Huge app store:
Apple's app store has reached 775,000 applications and has reached 40 billion downloads
for its products, especially for the iPhone and iPad, which has created a huge customer
loyalty to the smartphone market and personal computer.
Customer loyalty:
The image of "half bite apple" has entered the minds of consumers, especially young people
with love and pride in owning an Apple product. Besides, Apple is also very successful in
attracting new customers.
Listen to customers :
The most important thing that businesses should pay attention to create new experiences
for customers and from there to loyal customers. This is exactly how Apple did it, let
customers use its products, then gathered their opinion on the product. Based on that, Apple
will create products that suit the tastes of consumers and get very positive feedback from
customers.
 Weakness
Release Restrictions: One of Apple's weaknesses is that they are the only company that can
make products with their operating systems (OSX and iOS). Add to that they offer a simple
product line, and you get a very limited set of products compared to using other systems.
Limited advertisement & promotions : Apple has solidified their grounds by establishing
loyal customers, even with limited advertising resources. Apple marketing relies heavily on
its iconic and flagship retail stores.
Because of their success, Apple does not feel the need to have excessive spending towards
advertisement in comparison to other big brands such as P&G, Coca Cola and Samsung
technology.
Expanding into non-professional areas: Apple is rapidly expanding into new services such
as video content streaming, game streaming, credit card – competing with the dominant
players such as Netflix, Disney, Citi, Chase, Paypal, etc.
They might be entering into areas in which they lack competencies; remember the failure of
Apple maps
High Priced Products : It can be easily seen that the prices of Apple products on the
Vietnamese market in particular and the world market in general are standing at a high
level. We know that Apple's policy is towards customers in the wealthy group, but at
today's prices, only a small portion of customers can afford an Apple product.
 Opportunity
Consistent Customer Growth : Apple has been dominating the technology sector for years
now. They provide top quality and cutting-edge technology that offers a breakthrough in
customer experience. Their customer retention rate of 92% is phenomenal. Apple can
always rely on the power of the internet for future opportunities to gain new customers and
form new alliances.
Targeted to customers who love technology: All Apple products, when released to the
market, have perfection in every detail, capable of satisfying many different needs of
entertainment and applications. This is a great advantage that convinces most customers to
love high technology.

Distribution system: Apple Inc. has the opportunity to expand its distribution network.
Currently, the distribution network that Apple has is very limited and leaves room for
minimal growth.
Apple can generate higher revenue and sales if it focused on creating an expansive
distribution network. Furthermore, the company can benefit from diligent marketing and
promotions.
Expanding consumer market: Apple has strong ties with wireless service providers and
distributors. Apple has joined hands with several suppliers in Europe, and then in Japan and
China. Apple products are available on bestbuy.com's home page, and have a special place
in the electronic stores of retailers such as Wal-Mart.
Mobile advertising market: Apple officially acquired Quattro Wireless in early 2010. This
is seen as a new step to confirm the presence of apple in the field of mobile advertising, At
the same time, adding more competition to the company's war with rival Google. It can be
said that Apple is making great efforts to get maximum profit from the mobile advertising
market.
 Threat
Pandemic Corona: Apple has mainly set up its manufacturing headquarters in China. The
Corona pandemic has severely affected Apple's revenue and profitability
Counterfeit goods: With the reputation and reputation of Apple, many individuals and
businesses have taken advantage of Apple to make fake, poor quality products to profit.
This causes a bad reputation and negative reactions from users
Competitors: Although Apple as a brand has solidified itself, it still faces threats from
competitors. With the advancement in technology, brands like Samsung, Google, and Dell
are giving Apple tough competition.
As the competition is getting stronger, Apple either has to introduce new technologies or
revise its pricing policy to stay ahead of its competition.
China Tariffs : US government has imposed a higher tariff on imports from China,
increasing the overall cost of the products. Consequently, it adversely affects the gross
margin on the products and may make the product more expensive for customers.
2. Recommendation
Apple Inc. possesses major strengths to effectively address organizational weaknesses. The
company can also use these strengths to exploit opportunities, such as the expansion of its
consumer electronics distribution network. Moreover, the company can use its strong brand
image and rapid innovation processes to successfully develop and launch new technology
product lines.
However, Apple faces the threats of aggressive competition and imitation, which are
challenges affecting players in the global market for consumer electronics, computer
hardware and software, and online digital content distribution services.
A recommendation is to continue the aggressive and rapid innovation in developing the
company’s products. Technological innovation reduces the adverse effects of imitation.
Also, it is recommended that Apple further enhance the automation of its production
processes and support the automation of its contract manufacturers to address rising labor
costs. Another recommendation is to establish partnerships with more distributors to
improve the overall market reach of the company’s consumer electronic products.

REFFERENCES
Apple Inc. SWOT Analysis & Recommendations, available at:
http://panmore.com/apple-inc-swot-analysis-recommendations?
fbclid=IwAR1kIBBIrTKMI9T5VzzoTaxgkYycQqhZ1M_JgtyVfvNtU7bz9jDgDwQXq3U
Arthur A. Thompson, Margaret at el, Crafting and executing strategy, 135-136
Micro-Environmental Analysis Of Apple Inc, available at:
https://www.wowessays.com/free-samples/micro-environmental-analysis-of-apple-inc-
essay-sample/?fbclid=IwAR2nvUXLEejA0pa-
OkjESUmelG_O2Vyi8PZUYsTxowjE8ZzKQ8jGDEhVjWY

PESTEL analysis of Apple, available at:

https://howandwhat.net/pestel-analysis-apple/?fbclid=IwAR2MQxrbMuv7rdOXS-
2JjmwiWWEcFiu9pNgYgorGiO_D4-3djlMYUaz2jmc

Product Differentiation, available at:

https://www.iedunote.com/product-differentiation?
fbclid=IwAR0Co509PuaGCsPtUi8uQMCz4k40ieN6qElBQUpQ-Dy-cxG1a3Af57oRDvE