Apple Inc. is an electronics company that designs, manufactures, and markets Apple hardware, software, and service work. The company currently deals with mobile phones, computers, tablets, and wearables and offers related service works. Its products are highly differentiated with brand names such as iPhone, iMac, iTunes, iPad, AirPods, and Apple Watch. The company is based in California, North America, in the United States.
Value Proposition
Apple’s value proposition has changed over time. Its first signature, “Think different”, talked to creatives who think differently. Creatives in different industries, such as movie making and professional designs, equipped themselves with Apple products. Today, Apple’s value proposition has changed to “Air. Light. Speed.” This statement summarizes what customers want. A lightweight, super-fast, and one that goes far and beyond what they can ever get from any other laptop manufacturer. The signature represents the company’s state-of-the-art designs and sleek, reliable, and user-friendly products.
Profitability
According to the company’s annual financial report, Apple’s annual revenue went up by 8% to reach $394.3 billion. In the quarter that ended September 24, 2022, in its 2022 fiscal year, the company recorded a revenue of $90.1 billion (Apple Inc., 2022). iPhone contributed $205.5 billion, which accounts for 52.11% of the annual revenue. Mac sales followed with $40 billion (10.19%), and the rest of the products contributed the rest (Apple Inc., 2022). The iPhone, Apple’s smartphone model, is not just a smartphone; it is a physical platform that combines hardware, software, and marketplace characteristics. This is the reason why it is the company’s most profitable product.
SWOT analysis strengths
Technology, Research, and Development
Apple’s expertise in technology stems from its investment in advanced research and development. The company can anticipate customer expectations and deliver products that exceed customers’ expectations (Apple Inc., 2021). Apple is known for building innovative products that changed the world. A new product from the same company will thus attract the same reception as the loyal customer base believes that Apple’s products are premium.
Brand Equity
Apple has built products that resonate with corporate class and brands. Among creative professionals, iMacs are preferred due to their high performance. In 2020, Apple was ranked the 3rd most valuable brand. Just like Apple’s other products, a new product from Apple will enjoy a high reputation that will enable the company to charge premium prices.
Customer Loyalty
Apple’s customers do not switch. Apple provides its customers with unique, top-notch technology with state-of-the-art privacy features that encourage customer loyalty. Furthermore, Apple has created an ecosystem where one can have all technology products from the same brand. That is iPhone, iMac, Mac book, Apple Watch, iTunes, and App store. In addition to this ecosystem, a new product will be positively received (Apple Inc., 2021). All Apple products focus on quality and simplicity, thus boosting brand loyalty.
Product or service singularity
Apple can leverage its expertise in research and development to introduce a new product, the Apple car, that can revolutionize the automotive industry. The new product, the Apple car, will be a unique type of vehicle that is completely autonomous. Such innovation will quickly overtake the current electric vehicles that are partially autonomous. This product will super-fast charging infrastructure that will overtake the current slow and time-wasting charging infrastructure. The product will incorporate AR and VR technologies, unique sunroof designs, and on-screen displays. Fully autonomous driving will allow customized and unique sitting designs that are lacking in current automotive products.
New product or service projections
In the third quarter of 2022, Apple claimed an 18% market share of the consumer electronics market (Statista, 2022). Having recovered from the pandemic, the projection is that the consumer’s purchasing power will increase, and the company will claim a higher market position. The introduction of the new product will improve the company’s productivity. This is because people are currently concerned with the effects of fossil fuel and will gladly welcome an autonomous electric car that overcomes the challenges associated with the partially autonomous electric cars that are currently available. Based on Apple’s ability to capture the corporate market, the Apple car will be a premium product for corporates, creatives, and upper-class customers who can afford premium prices.
References
Apple Inc. (2021, December 1). Form 10‐K. Retrieved from https://www.sec.gov/Archives/edgar/data/320193/000032019321000105/aapl-20210925.htm
Apple Inc. (2022, October 29). Apple reports fourth-quarter results. Apple Newsroom. Retrieved October 30, 2022, from https://www.apple.com/newsroom/2022/10/apple-reports-fourth-quarter-results/
Statista. (2022). Consumer Electronics – worldwide: Statista market forecast. Consumer Electronics – Worldwide. Retrieved October 30, 2022, from https://www.statista.com/outlook/cmo/consumer-electronics/worldw
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