What is the business model of Apple company?

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BUSINESS MODEL OF APPLE COMPANYIntroduction  –

It is said that if you are dealing with any person in the world, then understand that you are dealing with emotions and not logic. That means, everyone knows that decisions should be taken logically, but most people take their decisions emotionally. Brands in the market are created by emotion, today’s topic is Apple company, which in itself is first called a big brand value.

We wrote an article earlier about luxury products and the brand, about its psychology, here we are discussing about it, why Apple and its founder Steve Jobs were themselves the biggest brand values ​​in the market. Although Apple is working in the computer sector and the rest in the electronic sector, but its most important product that keeps them at the biggest position is its mobile products. Which are the most expensive in the market, but still the world’s number one product is made by the company.

We will see how Microsoft and Apple’s business competition was, how Nokia was the king of the mobile market till 2007 and completely disappeared. We will see how Google’s operating system and Apple company’s operating system were a market competition. Today here we will see in detail how Apple became the largest company in the world, what is their business strategy.

STEVE JOB SUCCESS JOURNEY TO APPLE

Like we said, Steve Jobs was a brand value in himself even though he was a college dropout but he knew better how to sell the product. There are such founders of the world who were evicted from his own company in 1985, but after 1997, in the worst condition of the company, he took the reins and till his end. The company stoods at such a position that today in 2011 after his departure. Despite this, Team Cook is running the company well.

The charisma of Steve Job was that when he came back to the company in 1997. The company was going to be declared bankrupt in a week, from there Steve Job raised the company and contributed to become the world’s largest company in the technology sector. . He was the adopted child of his parents and his father was a mechanic.

That’s why he got interested in electronic things and that was the era of computers, due to which he, along with Apple’s founding partner Wozniak, created Apple, which previously worked on computer hardware and software. Wozniak was a computer programmer and electronic engineer, and Steve Jobs was a visionary who knew very well how to sell his product.

The beginning of making computers stopped at the revolution of mobile, in which Steve Job’s vision has been a big part because bringing the touch screen to the mobile market, it started the end of Nokia Mobile, which was the world’s largest company in the mobile market at that time. .

At that time, Blackberry mobile was a very big brand in the luxury brand, which was known because of the feature of its keypad, at that time Steve Job had given a statement that I am going to bring mobile without keypad in the market. At that time no one could understand the meaning of this statement of Steve Job, but this was the era of touch screen mobile coming in the market, the year was 2007.

HEAD OFFICE OF APPLE COMPANY

Apple company is the only company in the mobile company which has its own operating system IOS and its own product / HANDSET i.e. Mobile both its own product. All other operating systems in the market run on other companies, mostly Google’s Android operating systems, that is, relying on another company for software.

The Apple company produces its product by getting it made by the Taiwanese company Foxconn Company, which has a huge plant in China. Apple products are sold very expensive in India, so under the business strategy, they have recently built plants to prepare a production of Apple in India.

This work is going to be seen by his Foxconn company, it will help him to increase his market share in India and it was his decision to sell his products in India at a lower price so that the market share will increase. In 2007, when Steve Jobs thought of entering the mobile industry, he hired his old computer engineer Scott Forstall, who created the operating system for Apple Mobile, and this became the reason for Apple’s strategy to be his number one because the operating system and mobile means hardware. Apple’s software and also Apple’s, it acted as an entry barrier in the market.

APPLE VS SAMSUNG

Samsung has become the world’s largest mobile selling company, but Apple has become the world’s largest revenue-generating company. Recently the Apple company has become the first trillion dollar company in the world. Samsung company gives the highest contribution to the GDP of South Korea, from this you can guess how big the company is. It is considered to be the world’s largest company in the electronics sector.

Apple used to work more in the hardware and software sector of the computer earlier, but now it has started working slowly in the electronic sector too. But the main part of their success has been its mobile, which has been their biggest success. Samsung and Apple are competitive in the mobile sector in the world, but Samsung is performing well in India because of its reasonable prices.

The South Korean company formed in 1938 does its work in all the fields and is the largest company in the world. The same Apple company was established in 1976 and started mainly in the computer sector and became a leading company in mobile and technology. In technology, the two compete with each other, but Samsung’s operating system uses Google’s Android system and Apple uses both hardware and software itself. When Nokia lapsed and ruined the operating system decision. The same Samsung company, seeing the changed market conditions in 2007, immediately preferred to shift to Android, which was an important decision.

NOKIA VS APPLE

Nokia dominated the mobile market till 2007, but Apple’s touch screen feature brought a revolution in the mobile industry. Later, all the companies changed their attitude towards smart phones through Android, but Nokia stuck to Microsoft’s operating system which did not meet the demand of the market.

The Apple company brought a revolution in the mobile market, due to which the operating system it created was the computer system and telecommunication was its combination technology. Which in the future began to emerge as a synonym for many electronic items. Nokia did not exit the calling and messaging feature and could not see the changed market, so it was out of the market.

This was a signal to all the big brands in the market that no matter how big your brand value is, if you do not change with the technology, then you are out of the market.

IOS VS ANROID OPERATING SYSTEM

The reason for Apple’s success was because of their operating system iOS and Google’s Android, all the other top brands in the market were selling their mobiles. The specialty of the Apple company was that the hardware was also its own and the software was also its own. Android This operating system was initially a project to build an operating system for the digital camera, which Google acquired in 2005.

It became the world’s most important operating system, which we see in all mobiles except Apple today. Google remains Apple’s biggest competitor in software technology to this day because if Android brings advanced technology from Apple’s iOS, that day will be the end for Apple, so Apple always has to be two steps ahead of Android and update applications. You have to bring for your mobile products.

Android’s operating system  is used by almost all important international mobile brands except Apple, but Apple’s operating system is used only in products made by Apple, In which it is used in products like computer, mobile, tab and smart watch. . All the applications that are used on this operating system have to be updated over time in all these tools, which is called an Eco system.

This means that if you buy an item from Apple, then you have to buy another electronic item from it. So this strategy of an Eco system gives a lot of success to Apple.

Light business model with high profit

Apple company gives its mobile manufacturing work to Taiwanese companies Foxconn and TSMC in China, which reduces their business risk. Foxconn company manufactures this mobile handset and TSMC this company makes the most important part of the mobile micro chip. Therefore, if Apple decides to make it itself for both the process, then for this the company would have to spend billions of rupees and risk would have been a separate problem.

That’s why the company pays more attention only to the modification and technology and looks after the design of mobile and programming and design of micro chip. The rest of its production is made mobile in China at a much lower cost than America. Due to which the company only pays more attention to the design and technology of the mobile.

After this, the most important part of the company is the branding of the product, for which the Apple company is considered an expert worldwide. The company has got the pride of becoming a trillion dollar company not only of America but of the world. Therefore, the strategy of this light business model of the company has been very successful and it increases the profit of margin of the company.

As we have seen that Apple is considered to be a status symbol for the people in the market and people who once started using Apple’s mobile do not later shift to other mobile brand because it is considered a symbol of their status falling. .

Apple has maintained such a brand value in the market, if any, new Apple product is to come, especially in the mobile market, then its craze is seen in the market. So here we will try to know what is the marketing strategy of Apple.

  • -Quality Product This has been the most important strategy of the Apple company since the beginning because their product is seen as a status symbol, so Apple pays special attention to the quality of everything in its production. Example – aluminum body of mobile
  • -In the early days, Apple spent the most money to promote its brand, as a result, in today’s era, their brand has become the value of their product.
  • -Apple’s own operating system and own mobile handset, this feature differentiates it from other mobile companies in the market.
  • -Its ecosystem that links each of its products that it makes itself, because of this, once you start using all the products of Apple, then you cannot use other products for it. Example – laptop and mobile or digital clock
  • -Every item made by Apple is much more expensive than other company’s products, yet it sells because of good technology which attracts the customer.
  • -Security This is a feature of the Apple company’s mobile or laptop product because the applications used for their operating system cannot use this other application like we use for Android mobile, App Store is their own application service so that the customer Security is achieved.
  • -Apple’s service is considered to be the best in the electronics market and their competing companies want to copy these services, but no other company has been able to provide the same service that Apple company provides.
  • -Apple’s sales in India are much less than the rest of the world market because of the import duty and GST levied in India, for this recently Apple has started its production plants in India. So that its production cost is reduced and its production cost in India market. Let the price go down a bit.
  • -Apple keeps its mobile application updated continuously and that an update is available in all its mobile. This feature is not available in android mobile because mobile manufacturer company can provide that facility only in new product.
  • -Apple company always controls its sales, so that the customer is interested in new products of Apple, so their new products always come with big launching and sales are very good.
  • -In India, Apple is going to start an e-commerce platform under a strategy so that its production cost can be reduced further, as products like Xiaomi have been successful.
  • -After Steve Jobs, Team Cook took the company to a different height after 2011 and was a part of making the world’s first trillion dollar company.

Key Features of Apple Company-

Here are some key features of Apple Inc.:

  1. Design: Apple is known for its sleek and modern design aesthetic, which is applied to all of its products, from hardware to software.
  2. Innovation: Apple is often at the forefront of technological innovation, introducing new products and features that push the boundaries of what’s possible.
  3. Brand Loyalty: Apple has a loyal following of customers who are dedicated to the brand and its products. This is due in part to the quality of Apple’s products, as well as the company’s marketing and branding efforts.
  4. Integration: Apple products are designed to work seamlessly together, creating a seamless user experience across devices.
  5. Customer Service: Apple is known for its high level of customer service, with support staff who are knowledgeable and helpful.
  6. Privacy and Security: Apple places a strong emphasis on user privacy and security, with features such as end-to-end encryption and the ability to control how personal information is shared.
  7. Profitability: Apple is one of the most profitable companies in the world, with a market capitalization of over $2 trillion as of 2021.

Apple Company in India-

Apple has a significant presence in India, one of the world’s largest and fastest-growing smartphone markets. Here are some key facts about Apple’s operations in India:

  1. Manufacturing: Apple has been working to expand its manufacturing operations in India, in part to take advantage of the country’s lower labor costs. The company has partnered with local manufacturers to produce some of its devices, including the iPhone.
  2. Retail Stores: Apple has a growing network of retail stores in India, including several flagship locations in major cities such as Mumbai and Delhi. The company has also partnered with third-party retailers to sell its products in smaller cities and towns.
  3. Market Share: Despite its growing presence in India, Apple faces stiff competition from local smartphone brands such as Xiaomi and Samsung. As of 2021, Apple’s market share in India was around 2%, according to some estimates.
  4. Localization: Apple has made efforts to localize its products and services for the Indian market, such as by adding support for regional languages and introducing features tailored to the needs of Indian users.
  5. Regulatory Challenges: Apple has faced some regulatory challenges in India, such as restrictions on foreign retailers and requirements to source a certain percentage of components locally. However, the company has continued to invest in its operations in the country and has expressed optimism about its long-term prospects in the Indian market.

Conclusion –

It is said about Apple that it does not pay taxes honestly, but there is an unwritten agreement between the US government and the Apple company, under which Apple promises to provide employment in America through its company. The compulsion of the US government is that Apple is the largest company in America and it can be a loss for them to make him angry.

That’s why he allows companies to grow in America. The Apple company built its head office in California for 5 billion dollars, it gives an idea of ​​the power of an Apple in itself. Here we saw the journey of Apple company and saw their success story, which I hope was successful in giving some important information for you.

Apple company is the first company of the world who has a market capital of above one trillion us dollar and growing very fast in the future even though technology competition is still there. Blackberry was the most attractive mobile handset when Apple started there first iPhone launch in the market. Steve Job completely changes the scenario of mobile phone in that time. So the Apple company always thinks one step ahead of future market from the other companies.

EVOLUTION OF MOBILE PHONES TECHNOLOGY

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