After years of staggering growth, Apple sales have been in decline for most of 2016. Slow sales in the Chinese market and the decision to hold off for another year on the previously bi-annual iPhone upgrade are factors contributing to the decrease in profit. Despite the challenges, growth in the Apple “services” sector and increasing product appeal within the corporate community promise to bear fruit in upcoming quarters.
Apple events continue to draw worldwide attention and remain one of the most highly awaited gatherings on the technology calendar. This, in turn, helps Apple maintain its exclusive image, which serves as the company’s key marketing strategy. Apple’s strategies, which lead to both successes and failures, can be important to study and learn from as you pursue your online MBA degree.
The Exclusivity Technique
Since the introduction of the iPhone in 2007, a product that accounts for 65 percent of Apple’s sales, Apple has intentionally limited the amount of available stock to create a sense of exclusivity among technology savvy consumers. While the iPhone is extremely user friendly and loaded with impressive features, the exclusivity marketing technique has, in large part, been responsible for the record sales and expansion of the company as a whole.
An Ultra Low-Cost Marketing Strategy
Apple has spent considerably less on advertising than other tech companies, despite its position as manufacturer of the best-selling mobile device on the market. iPhones have been promoted in large part by wireless network carriers willing to subsidize mobile hardware expenses in exchange for contractual service agreements with customers eagerly awaiting the release of the newest iPhone. Apple has further taken advantage of the exclusivity marketing technique by implementing branding guidelines that must be upheld by network carriers wishing to promote any iPhone product.
Apple Continues to Maintain its Exclusive Image
Despite the reduction in iPhone sales, Apple events continue to draw worldwide attention with the help of the exclusivity factor and a limited number of high-priced tickets. The popularity of iPhones and iPads continues to grow within the business sector, with nearly half of all iPads being purchased by corporations and government organizations. Sales of Apple “services” are also on the rise and have shown a 20 percent increase in 2016. Clearly, Apple remains one of the most successful companies in the world.
If you’re interested in learning about more important trends in the business world, visit University of Maryland online. As you work toward your advanced degree, working knowledge of these and other business strategies can help prepare you for a highly rewarding and exciting career.
Sources
http://money.cnn.com/2016/07/26/technology/apple-sales-slump-continues/
http://www.businessinsider.com/one-of-apples-biggest-weaknesses-is-becoming-a-strength-2016-8
http://www.businessinsider.com/apple-taking-huge-risk-with-new-iphone-strategy-2016-7
http://www.eventmanagerblog.com/evolution-of-apple-events
http://www.business2community.com/marketing/apples-iphone-marketing-strategy-exposed-0661613#ViiiMdLg5hDSAoFr.97
http://www.versiondaily.com/the-marketing-strategy-of-apple-a-concise-analysis/
http://time.com/4308568/apple-earnings-appl/