Executive Summary: Marketing Research On Apple Inc.

According to Mintel (2014), “nearly half of today’s university students report they are financially comfortable, as they have money left at the end of the month for a few treats and to save.” What about the other half? The other half of the students either have not a lot left after the basics are taken care of or having difficulties with their financial situation. Students’ average monthly expenditure on their essentials is 65% of their monthly income (Mintel, 2014). In these few years, there has been a rise of national companies giving student discounts and offers for their products or services. For example, Apple Inc. offers student discounts for their gadgets.

In the last decade Apple Inc. has yielded exponential growth. As a company, the imaginative and invocative approaches of technological product advancements have enable Apple, Inc. to achieve an elite status among technology companies throughout the world. Apple, Inc. serves as an inspiration to many companies through higher benchmark standards they created. Though their product margin is not as vast as most technological competitors, Apple, Inc. innovates and releases a new product to consumers. Apple, Inc. has proven to able to move and create new markets with one product that allows Apple, Inc. to rain as the elite player in technology.

Apple is a fierce competitor in several industries, ranging from personal computers to entertainment media to mobile payment systems.

Even though Apple has encountered many setbacks, it continues to bring new and improve products to the market. Apple’s competitive strategy has been innovation. They have made an extraordinary effort developing, implementing, and executing its very unique strategy through innovation which has resulted in new product, and the enrichment of the existing ones. More specifically, Apple attempts to meet and supply the needs of a global market, by offering eager and enthusiastic consumers with innovated and high-quality products and services. Apple has employed a differentiation strategy linked to innovation with its three core products (computers, personal media player, mobile phones, tablets and other accessories). A key piece of their strategy involves meeting the needs of the converging digital electronics and computer markets. Apple has elected to implement its strategy by designing and developing proprietary operating systems and software technologies, thus allowing for strict protection of its intellectual rights.

Apple's main competitors are Microsoft, Dell, Sony, Toshiba, Acer, HP, Nokia, etc. These all are highly specialized in their respective products. Today, the biggest challenge for

On April 1, 1976 Steve Jobs, Steve Wozniak, and Ronald Wayne joined together to form Apple Computer Incorporated. The concept behind their company was the creation of an inexpensive, simple to use personal computer kit. Working out of Jobs’ garage in Cupertino, California the trio designed and manufactured their first product in three months. They named this product the Apple I and it went on sale in July 1976 for $666.66. Six months after the release of the Apple I, Ronald Wayne opted to sell his share of the company back to Jobs and Wozniak for a meager $800. Soon thereafter multimillionaire Mike Markkula joined Apple and on January 3, 1977 the company was incorporated. Apple continued to gain

Apple's positioning is slightly different. It is certainly not the cheapest computer system on the market: one of the reasons that PCs still dominate the market in terms of units sold is because of Apple's greater expense. "Apple's share of the PC market has been below 5 percent for most of the past 15 years, and even with the much-hyped 'iPod halo effect,' this level hasn't changed in recent years" (Paczkowski 2010). While Apple has been able to outsell rivals in some areas, such as music, even in arenas in which it is famous such as the smartphone market, Apple is not the undisputed rival. "Samsung and Apple are persisting in their tug-of-war to lay claim as the world's top smartphone vendor" (Foresman 2012).

Apple is a multinational organization borne in America and was mainly started by Steve Jobs and Steve Wozniak in the year 1976. It deals in the designing and selling of computer software, a collection of hand-held devices like mobile phones, tablets, iPads, iTunes and also deals with personal computers. The major brands associated with Apple include MacBook, Macintosh hardware products, iPads and iPhones and this has been the driving force behind Apple’s success. This organization has come to be seen as one of the iconic consumer electronics designer in today’s world and despite Apple having a wide product range, the organization handles each line of the product in a unique manner. Every Apple product is handled as a lone individual business unit.

Apple, Inc. is a multi-billion dollar company based in Cupertino, California focusing on the design and manufacturing of personal computers, tablets, mobile phones, media and music devices, as well as, the software and services related to these (Richardson, 2015). Today, Apple’s products include the iPod, iPad, Apple Watch, AppleTV, Mac computers and laptops, and iTunes (Apple, 2015).

Apple leads the digital music revolution with its iPods and iTunes online store. Apple reinvented the mobile phone with its revolutionary iPhone and App Store, and has recently introduced its magical iPad which is defining the future of mobile media and computing devices.”

Apple Inc. has been able to continuously stay one step ahead of its competition by creating innovative and unique products that customers enjoy. Looking at the industry environment, stiff competition poses a large threat to Apple at this time, as well as rising labor costs in China, and third the ability of a company to imitate an Apple product. The main competitors to Apple are Samsung, Microsoft, and Google. One important external factor that is favorable for Apple at this time would be the continued growing popularity of digital devices as well as the increased use of social media. Apples brand recognition in the industry is very high, meaning its reputation is very good among its customers. In addition existing substitute products to Apple’s are relatively weak and do not come with as many features. As a result Apple can raise and lower its prices without the threat of losing many customers, which is in part why the company has a lot of market power at this time.

Apple defines itself as an advanced company in terms of technology. The company sets up prices for other

Apple operates with fierce competition in the consumer electronics segment which comes in many different forms. There are a large number of competitors in the different market niches who offer many similar products. Furthermore, many of these competitors' products are priced much less than an Apple branded products. Just as soon as Apple releases a new product, major companies begin imitating it immediately. In the personal computer industry, market pressure is continuously being exerted from such companies such as IBM, Dell, HP, and Toshiba (Wildstrom, 2009). Furthermore, with its flagship product the IPhone, Apple competes with companies like HTC, Palm, Blackberry, and Motorola (Wortham, 2011). Apple has had significant success despite the competitive environment because Apple commands a brand loyalty and dedication to innovation that few companies have ever achieved.

Apple has positioned its products as premium products in the market, as reflected by the price it charges. Many Apple customers perceive a high quality brand and are perfectly happy to pay for it. This is not to say that they wish they didn’t have to pay a premium price, however the exclusivity of the brand that is portrayed as a result of the price works to justify the price. The higher price tag is a necessity and is instrumental in enforcing the perception of the brand. The price strategy is successful in part, however, because it works in remarkable synergy with another clever marketing strategy, a message to the consumer, through plentiful advertising, that Apple doesn’t just sell products; Apple sells an experience. Apple advertisements can be found on any television network, in any technology magazine, and all over the Internet. MacBook Pros, iPods, iPhones and iPads are used by celebrities in movies, not Dell laptops, Sony Walkmans, Windows Phones or Samsung Galaxy Tabs. This further iconizes the brand.

'When Apple's IPhone first went on sale in Europe six months ago, hopes were high that the device would be just as big a hit is it had been in the U.S. But analysts are now raising concerns that the iPhone may not translate as well overseas, with sales sluggish in Europe because of the device's high price and strong competition from Nokia and others'