ms to understand what will get people excited about its products, and then it executes on

that vision” (Enderle, 2004). Instead of talking about product features or technology, Apple is

showing that they care about their consumers’ lifestyles. They advertise their products to offer the

better life to customers and make the trend of aesthetics and lifestyle appeal important. All of

Apple’s products were launched with these attributes and outstanding functionality.

Apple is a unique electronic manufacturer because they have an approach of product

launches that is more similar to fast moving consumer goods companies with new products every

six months or at least once a year. When a new product is launched, that product is supported by

an advertising campaign, and the end result is to generate a large amount of sales. This approach

makes people excited about Apple’s products and keeps Apple as a leader in the technology

industry.

Apple’s Retail Strategy

While other PC manufacturing brands are competing for shelf space, promotion, position,

etc. at retail stores, Apple invests heavily in their brilliant retail strategy. Apple currently has over
300

stores in 11 countries, 87 of those stores are outside the U.S. at this time (Bajarin, 2011). Apple is

aware of the importance of interacting with customers in order to fully understand their needs.

Apple has their own retail stores so they also have direct conversations with their customers

and potential customers. In fact, customers come into the stores to experience Apple’s products
and

give feedbacks or their expectations and what they do or do not like about products (Bajarin,
2011).

This information is invaluable for Apple to stay ahead the competition of adapting and evolving

consumer needs. As a result, Apple’s retail stores hosted 71.1 million visitors in one single
quarter

this year; this overwhelming statistic was an increase of 51% over the same period last year
(Bajarin,

2011). In addition, Apple’s retail stores brought in $3.19 billion in the quarter, which is a new Q2
record and a 90% increase in the same period last year (Bajarin, 2011).

Manufacturing both hardware and software

While the rest of the PC industry is struggling with differentiation and depends on software

providers to improve their products, Apple has a strong competitive advantage because they

manufacture both software and hardware. According to Wayne, a senior analyst in competitive

analysis at IHS, “Apple takes a vertically integrated approach to its products, from the operating

system to the user interface, to the hardware design, down to the selection of individual parts
used in

the device” (Wayne, 2011). Manufacturing both hardware and software also helps Apple control
the

compatibility between two aspects of a product. Therefore, the high tech company can provide
the

best overall experience to its customers.

Digital Asset Management

Apple displayed smart strategy when they invested in digital asset management. Apple

became one of the biggest digital retailers in the world with 100 million consumer credit accounts

through iTunes (Lessin, 2012). Consumer psychology told us that when a consumer sets up an

account and gives credit card information that means those customers will make purchases in the

The Innovative Success that is Apple, Inc. 17

future (Lessin, 2012).It also keeps customer using Apple’s products because once they purchase

digital contents, they can have it in every other smart product of Apple. This is one of Apple’s

strength, and it helps not only increase sales in the digital market but also keep Apple Inc.’s

customers continuing use of their future products.