Apple Success Strategy

Apple Success Strategy

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Apple Success Strategy

In the current generation with increased technological innovation, it has become a challenge for most firms to maintain high profit margins and sustain a competitive advantage over its competitors. A look into Apple Inc. however raises questions such as, how are Apple able to sustain a competitive advantage over its rivals? Likewise, with its high priced products, how are they able to make most profits from a highly priced product than other firms? Furthermore, how is the firm able to respond to critics and still maintain a positive picture in the eyes of the public despite many critics on the addiction the devices cause as well as the high prices? In response to this questions, I selected an article from the New York Times which clearly elaborates the strategies put in place by Apple Inc. in a bid to sustain its market environment.

Ideally, Apple maintained a shrewd strategy after it released its first iPhone to maintain its revenue growth by simply increasing prices for its product other than reducing to attract more customers. The firm has managed to maintain high profit margins by increasing the price for its products, simply through dividing the revenue earned by the number of products sold from a given quarter. This idea lets the firm calculate a rough estimate to sell its product at a high price than the previous product released. However, the firm is currently looking at shifting the attention of investors on the number of units sold since their best foot is not the number of unit sold.

Instead, the firm wishes to focus most of its attention on the customers since their strategy is mostly geared towards the satisfaction of the customer. Ideally, this strategy has helped the firm to separate itself from most tech giants such as google and Facebook which are faced with critics on customer privacy (Nicas, 2018). Instead of relying algorithms, Apple hires people to address customer privacy and at the same time, they are ready to respond to critics and respond appropriately for the satisfaction of the firm. Consequently, the firm has managed to sustain a high profit margin over the years after it first released the iPhone 11 years ago. Their latest product is the iPhone X and it recorded the most sales compared to other products and firms in the same line of business.

References

Nicas Jack, (2018) Apple Raises Prices, and Profits Keep Booming. NYT. Article.

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