APPLE.

Beginnings and challanges

Apple is one of the most recognizable companies in the world, its market valuation is $1
trillion, and millions of its devices are in the hands of users from all around the world, Apple
has been revolutionizing consumer technology for decades.

Steve Jobs, Steve Wozniak and Ronald Wayne founded Apple, in Jobs family garage in
1976.Shortly after, Wayne sold off his 10% stake in the company leaving just Jobs and
Wozniak.

Wozniak was the man behind Apple's first device, the Apple 1, building the first version by
hand, using a wooden casing, it was far from the kind of computers we know and use today
and its design was meant to serve as a kit computer that you would put together on your
own.

The Apple 2, which was also designed by Wozniak, launched just a year later in 1977, it was a
far more commercially successful product, it was a self-contained system, with plastic case
and keyboard, but it was the VisiCalc Spreadsheet app that ran on the Apple 2 that helped in
making it a must have for businesses and business users alike.

Apple released the Apple 3 in 1980, it was the first computer Wozniak didn't design and
suffered a litany of problems: heating issues causing melting problems, chips to pop out of
their sockets, and to get them back in place Apple told users to pick up the system, and slam
it on a desk, if not for the Apple Two's popularity Apple could have been in serious trouble.

In 1985 interview with Playboy, Jobs said that the losses from the Apple 3 were incalculable.
Apple also filed its IPO (initial public offering) in December 1980 at a price of $22.00 per share
(the stock has split four times since then).
Following the Apple 3, Apple began to work on the Lisa and Macintosh, both systems were
meant to run graphical user interfaces (Gui’s mean collections of window programs icons and
folders we depend on to use computers to this day) prior to the advent of the GUI, users
would interact with their computers using programmable languages. The Lisa debuted in
1983, but failed due to its $10,000 price tag, still it was the first consumer computer to come
with the mouse.

The Macintosh on the other hand proved incredibly successful for Apple as it was the first
mass market consumer priced computer which used a GUI and mouse like Lisa.At a price tag
of $2495 the Macintosh still wasn't cheap but it was far from the $10,000 Lisa.

Neither Jobs nor Wozniak where Apple's CEO when the company started, its first CEO was
Michael Scott, who came over from a national semiconductor in 1977.

Mike Markkula an early investor and apples third employee took over from Scott in 1981 and
headed the company until 1983.

It was in 1983 that Job’s famously pitched Pepsi CEO John Sculley to be Apple's next CEO, by
asking him whether he wanted to sell sugared water the rest of his life or change the
world.Sculley and Jobs initially hit it off, but their relationship soon sourer. In 1985 Jobs plan
to get Scully off his position as the head of Apple backfired and thus the headquarters
decided to move Jobs into the role of chairman, which was far from the position Jobs wanted,
so he decided to leave the company, and form his own PC company (later named NEXT
computers)

Meanwhile in 1985, Wozniak frustrated with no longer being needed as the engineer at the
company he helped found, announced that he would leave Apple to start up a home video
production company. At that time Wozniak said that he felt Apple have been going in the
wrong direction for several years, he sold much of his stock on the way out.

Sculley led Apple from 1983 through 1993 and took the company from an annual revenue of
$569,000,000 to 8.3 billion, but internal strife, moving Apple computers to the PowerPC
chips, instead of Intel processors and the launch and failure of the Newton PDA led Apple's
board to oust Scully from his position as CEO.
Apple then turn terrains over to Michael Spindler, during his tenure which lasted until 1996,
Spindler fought off proposals seeking to split Apple into separate companies for hardware
and software. He also oversaw Apple falling behind in the PC price wars, which saw the
company eventually license it's OS 7 operating system to other computer manufacturers
creating a handful of Mac clones, those systems however ended up cutting into Apple’s
bottom line.

In 1996 Apple named Gil Emilio CEO, his time in the driver seat lasted just a year, but while
there, he purchased NEXT computers from Steve Jobs for $400 million to use their operating
system in Apple's computers. Naturally,part of the deal included bringing Jobs on as an
advisor. The next year Emilio was out and Jobs was named interim CEO of Apple.

Back in the company he helped found, Jobs starts cutting various products and projects to
make Apple as trim as possible, with the goal of returning the company to profitability.

Jobs went on to lead Apple during a period of major growth with the introduction of the
colorful iMac all-in-one computer, Mac OS 10, the iPod and iTunes. The company's crown
jewel though was the iPhone, which Jobs unveiled in 2007.

The next year (2008) jobs announced the App Store and later launched the iPad. Jobs also
oversaw the launch of the MacBook Air, which would change how laptops and computers
were designed and built for years.

Jobs however also battled pancreatic cancer and that forced him to hand the company over
to Tim Cook, while seeking treatment. When Jobs passed away from the disease in 2011, Tim
Cook took over as CEO. Apple's iPhone 5 was the last device that Steve Jobs was involved in
working on.

Since then Tim Cook and company have been running the show. In that time Apple has
released: iPad Pro, new desktops and laptops, more than ten additional models of iPhones,
the Apple watch, and airpods.
The company hasn't been without its controversies in the intervening years though: there
was bending problems with a new plus model iPhone 6 which would bend in people's
pockets, that time when the company put you 2 on everyone's iPhone, and performance
throttling issues.

Still the iPhone drove the majority of Apple’s growth, cementing it as the biggest comeback
story in business history. That was further solidified on August 2nd, when Apple's market
valuation officially crossed the $1 trillion mark.

From there it's any guess where the company will go but chances are it's up. In the years
since its founding, Apple helped launch the computer revolution, oversaw the explosion of
digital music and ushered in the smartphone age.

Strategies and core values:

After years of dominating the technology market Apple, has become synonymous with the
words: brilliant, creative and innovative.

Apple is one of the greatest marketers of all time with the iPhone becoming arguably the
most popular and recognizable smartphone in the world.

Apple's consistent marketing excellence is built on a series of core values, which others would
benefit from learning from, and applying to themselves. Apple has mastered the art of being
ahead of his competitors, one of the primary reasons why they're able to be leaders in the
industry, is their amazing ability to innovate and keep things fresh, with every release there is
always some new technological advancement that strives to push the industry forward:
whether it's a new chipset, allowing their products to be more powerful or the wireless
airports that have become ubiquitous around the world.
Apple's dedication to the customer experience and their ecosystem of products is the key
reason why people flock to Apple stores and line up for hours, just to get their hands on the
new product release.

The importance of a first impression cannot be underestimated, much like in person the fact
is that you make a judgment about something in approximately 4 seconds, and this is
finalized largely within 30 seconds of initial contact.Apple knows this ensuring that they
mastered the art of minimalism: product aesthetics, user interfaces, the brand logo, support
functions and even advertising are stripped down to the fundamentals.

Apple's obsession with minimalism isn't solely about aesthetics, rather it's a crucial piece of
their overall business strategy within the Apple ecosystem. Every component of this
minimalist network is designed with related components in mind: The Apple TV interface isn't
too different from that of Apple music, Apple music itself borrows from the basic feel of
Apple's operating system. Meanwhile the gadgets also take up the same sort of family feel:
the iMac, MacBook Pro, iPad and iPhone they’re all radically different devices, but they are
immediately recognizable as cousins thanks to this shared detailing and material palette.

This highly integrated minimal aesthetic is priming you to enjoy apples other products
ensuring that when the new iPad is released you already know how it works, and it will fit
within your own personal home environments.

When Apple brought out their first iPod back in 2001 the response from the press was
apathetic. MP3 players were already around and this new release was nothing new, in fact
most MP3 players were actually better than the first iPod: the competition had larger storage
space replacement batteries and they were cheaper. So, what did Apple's new iPod have to
offer that other MP3 players didn’t: the iPod looked cool, it had a sleek aluminum shell half
the size of its competitors and a scroll wheel that could zoom through the TM 1000
songs,while in your pocket. This easy to use sleek iPod made the entire process from
downloading your favorite song to listening experience, a simple and enjoyable experience.

Apple has a refined focus on customer experience: every customer touchpoint from the
product, through the user experience and even the retail store, yields a consistent Apple
experience, this clean seamless “just works” mantra ensures that every layer of ecosystem
works straight out the box, providing a logical experience that makes the users life easier and
more enjoyable.
Apple's consumer base buys into their ecosystem expecting a high quality polished
experience from start to finish. When pairing this high quality experience with Apple's
aggressive expansion into every facet of our lives, it's no surprise that their product's, apps
and technology have become an integral part of a modern lives and routine.

A key example of Apple's integration outside of their traditional devices, is their integration
into the fitness industry. Wearables have become far more than a fashion accessory in recent
years, weatherability to play your favorite high energy playlist, whilst also collecting valuable
biometric data (heartrate, steps taken, etc...) for those who are serious about their progress
a development.

This now vital bit of kit plays an essential role in your daily life and is often the difference
between lounging on the couch and finishing that 10K(steps). When a piece of gear has this
much influence in your life and routine, you’ll be sure to place a lot of trust and belief in the
product, furthermore solidifying Apple into your daily life.

Much like Louis Vuitton or Chanel, Apple is associated with high quality, luxurious and trendy
products. To ensure that they maintain this image, Apple carries out a range of marketing
practices to ensure that they look like the premium luxury company they claim to be. This
brand identity is reflected in the pricing strategy of Apple, with all products undergoing fixed
pricing.

Due to Apples unique market position, and their ability to market their products to other
channels, they can avoid dropping prices, a process that ensures they maintain that luxury
appearance.

This strategy also extends to the microcosm of Apple retailers, dealers and resellers, where
Apple implements a minimum advertised price. This sets a lower limit on the prices its
resellers may advertise apples products, keeping prices relatively comparable to their own
stores, and with minimal wholesale discounts. This maintains the static high prices that Apple
sets, distancing themselves from low-cost inferior products.
Much like Tesla's marketing, having a small community of evangelists, that support your
brand through thick and thin is a vital step for brand longevity. This group won't dare stray
away from the Apple ecosystem, ensuring full integration and making sure that their friends
and family are aware of its benefits.

Marketing through word of mouth is a priceless marketing strategy for any business, and is
hands down the most effective and reliable type of marketing. According to the Wharton
School of Business a customer you acquired from word of mouth has 16 to 25% higher
lifetime value, than those you acquire from other sources. Word of mouth will bring in loyal
customers and increase customer retention rate.

Competing in today's world can be tough, being able to establish any kind of advantage can
set you up for success over the competition, however having a dedicated group that ensures
your product is talked about in a good light, is shared on social media, and welcomes itself
into everyone's life, goes far beyond paying for adverts or product placement.

Apple has continuously strived to create great products with a great experience attached to
them, this dedication to the customers paid off huge dividends, making Apple one of the
biggest companies in the world.

Apple is not just changing industry, is changing the world, reshaping it into a customer
focused economy and plotting itself right in the middle of it.

Sources:
https://en.wikipedia.org/wiki/History_of_Apple_Inc.
https://www.forbes.com/sites/christinemoorman/2018/01/12/why-apple-is-still-a-great-
marketer-and-what-you-can-learn/?sh=12dcf24415bd
https://www.aboveavalon.com/notes/2019/6/19/apples-product-strategy-is-changing
http://panmore.com/apple-mission-statement-vision-statement