The secret lies beyond their product line and design standards; it lies beyond even Steve Jobs’ emphatic adherence to Apple’s core philosophy, which is that the user doesn’t always know what they want.
Looking at the company’s latest product lines and revenue models, I’d be a fool to call them anything less than what they are, which is:
Break down each of these bullets individually and you’ll find a company at the top of their respective industry, but combine them into a single entity and you’ve got the recipe for building one of the most influential businesses of all time.
As an entrepreneur, you’ll hear a lot of people tell you that you need to reach out and figure out what people want, which means listening to your critics, often times more patiently than you’d like.
Apple decides to flip the script and instead focus on building what they want to build, no matter the perceived cost. When Steve Jobs debuted the iPad, the critics stood in line, throwing every insult they could muster. The critics said that the iPad would fail.
2. Turn the Ordinary into Something Beautiful
( Details that matter )
For quite some time, PC fans enjoyed the work of buying their own parts and building their own tower systems. At the same time, PC makers were building standard hardware for standard applications. Apple would have none of that.
They’ve been pioneering not only the features of standard operating systems and computer systems, but simultaneously reinventing the design standards as well. As a result, we have the gorgeous iMac, the beautiful new Macbook Air, and who could forget, the amazing iPhone 4.
Where others focus on one aspect of the equation, Apple focuses on the entire product, and it shows.
3.Justify Your Price
We’re in a time when pricing strategies are all over the place. People don’t know what to charge, and in many cases, prefer to race to the bottom instead of pricing strategically to a market that can bear the cost.
Once more, Apple ignores the standard by not only pricing their technology more than 2x what their competitors charge, but doing so without blinking. How can they get away with it?
Since we’ve already hit point 1, let’s work on #2.
No other computer can match the display of a 27” iMac…it simply can’t be done.
No other software can match what iTunes brings to the table.
No laptop is as thin as the Macbook Air.
No software is more intuitive, no product more valuable than the Apple product. Any other smartphone looks like it was
developed by rookies when compared to an iPhone 4. You simply cannot compare the two.
It makes no sense to talk about things like megabytes, gigahertz, and processing power to customers that simply don’t care about technical jargon.
Take a look at any Apple product page and you’ll find that though they do discuss product specifications and technical information, it’s hidden behind the benefits that their audience is truly after.
Instead of display resolution, you’ll see phrases like “edge to edge glass,” “retina display,” and “LED backlighting.”
Sure, the jargon is there for those that need it, but it’s presented in a way that makes you want to learn about megapixels, rather than shy away from them. The art is in the copy, not in the features.
5. Extend the Experience
6.Build a Tribe
It’s no secret that Apple has built one of the most hardcore fan bases of any product and of any time. There’s a reason they’re called “fanboys.”
But who cares, right? Most of the chatter is out of jealousy more than anything, but Apple doesn’t really care. They know that
they serve an elite audience, and rather than back away from that fact, they embrace it.
7- became the name
You don’t buy tissues, you buy Kleenex.
You don’t buy MP3 players, you buy an iPod.
You don’t buy a smartphone, you buy an iPhone.
Have you noticed what they’re doing here? Apple isn’t content with being a leader in sales alone, they want to own the market itself, which explains why they’ve engineered iTunes as the major music provider that it is, and why the iPad, having the luxury of being the first, has now set the trend for future tablet devices.
From here on out, everything will be compared to the iPad, iPhone, iPod, and iTunes. Sadly, this sort of thing is tough to duplicate, but it’s not impossible. You need to have one of two things:
Samsung’s marketplace strategy, on the other hand, is to flood the market with a myriad of products in a short period of time.3 Samsung appeals to more markets by providing a plethora of gadgets such as cell phones, smartphones, tablets, etc. to both low and high-end markets meaning at least one of their products will, presumably, appeal to a person.3 Samsung has done well in the low-end market, but has only recently begun increasing its presence in the smartphone market and has enjoyed a good amount of success thus far as a result.3 For example, in the “past year has seen Samsung gain a lot of share in the smartphone market. Its market share has doubled to more than 36% in Q2 2011 from about 18% during the same period last year.”3 Samsung’s rapid market share increase in the smartphone marketplace can be partially attributed to Samsung’s large amount of different devices as compared to Apple and other competitors3 along with, “Its huge lead over Apple in the second quarter of 2012, when it sold nearly twice as many smartphones as Apple, was partly driven by the success of the Galaxy S III which sold more than 10 million units in under two months.”3 The successful launch and subsequent consumer reaction to the Galaxy S III, i.e. Samsung’s answer to the iPhone, was another reason for such a large growth in their market share. Lastly, Samsung is not only the biggest adopter of Google’s Android software, but they also have smartphones running the Windows Phone OS as well.
While Apple is narrowed to its own iOS, Samsung is not held by these same boundaries; Samsung’s flood the market strategy works so well because they are able to not only diversify their hardware, but the software that runs on their smartphones as well
In the April 2011, Apple filed suit against Samsung alleging that Samsung infringed on three of Apple’s utility and four design patents. A patent can be defined as a “government-granted, temporary right to exclude, awarded in return for an individual’s disclosure of a new and useful invention.”7 In essence the government, specifically the U.S. Patent & Trademark Office (USPTO), grants patents to individuals or companies that create a new invention the USPTO deems to be patentable based on certain criteria; patents last for 20 years and are not renewable.7
Apple alleged infringement upon two different specific types of patents, i.e. utility and design patents. A utility patent covers the functionality of an invention while a design patent specifically protects the “ornamental designs on an article of manufacture”, or in layman’s terms, the look and feel of a product.
As stated previously, Apple alleged that multiple Samsung smartphones and tablets infringed on the patents listed above and the actual trial went on for five months until a jury finally
gave a verdict in late August of 2012 finding that Samsung infringed on six of the seven patents in question; three design and three utility patents. The only patent Samsung was found to not have infringed upon was Apple’s ‘889 patent which dealt with the design of Apple tablets. Since the patent dealing with tablets was the only one to be found to not be infringed upon, all of the patent’s concerning the functionality and design of Apple’s iPhone were found to be infringed upon by one or more of Samsung’s myriad of smartphone products.
As a result of the jury’s decision, Samsung was ordered to pay Apple one billion dollars in damages, which according to Lex Machina, an IP litigation data and analytics company, is the third largest verdict in United States history regarding patent litigation behind only the Centocor Ortho Biotech v. Abbot Laboratories and the Lucent Technologies v. Microsoft court case verdicts which were $1.67 billion and $1.52 billion respectively. Although the initial litigation in the United States is over, Apple is currently pursuing further action in not only the United States, but also in the international community; Apple is bringing litigation against Samsung in Europe, Japan, Australia, and South Korea, of which will be covered in the succeeding sections of the report. Within the United States, Apple is likely to seek treble damages, or triple the amount in damages, by asserting Samsung intentionally committed patent infringement in order to make their products similar to Apples’. Also, Apple filed new litigation in February of 2012 and amended it in late August to include more Samsung mobile devices. The new lawsuit asserts more Samsung phones are infringing on more of their patents not included in the original court case that ended in late August.
Teenagers : Teenagers are considered one of Apple Inc.’s target markets. Teenagers use iPods for many reasons. Some of these reasons are to socialize with friends, listen to music and go on Facebook, MSN, twitter etc. There are also many gaming apps that appeal to them. IPods have become quite a trend with teenagers.
college and university students : College and university students are also targeted by Apple Inc. These students use Apple Inc. products such as iPad’s, MacBook’s, iPhone’s etc to quickly record notes. These notes are kept organized in their devices. Also these products are light which makes carrying devices to and from school much easier.
business people : Business people are very intrigued by Apple products. All Apple devices (iPhone’s, iPad’s, MacBook’s etc.) have a business quality that is very useful. These devices are used to finish work efficiently and to communicate with clients easily. In addition, sending documents is easy and organized.
young children and kids : Apple products are also useful to young children and kids. The reason for this is that devices such as iPods and iPads are easy to use due to their touch screen quality which is good for children. Parents can download learning game apps on Apple devices to teach young children and kids.
adults : Adults are also one of Apple Inc.’s target markets. iPhone’s are useful to adults for their everyday needs such as phone calls, map directions, internet connection, documents and cameras. Carrying these small devices makes adults lives much easier for communicating daily.
Samsung’s targets a very wide range of consumers ranging from normal day to day usage devices to industrial standard equipment. The usual target age group of customers range from the 20s to 50s or even older, as long as the person has the ability to purchase and use the products that Samsung has to offer in the market.
Teenagers to early adults (age 14 ‘ 25) ‘
This age group of Samsung product consumers is usually Samsung’s smartphone target customers as they are mostly technology savvy. This group of customers is growing as Samsung saw that this group has more spending power in recent years compared to in the past.
Adults (age 26 ‘ 50) ‘
This specific group of targets the largest portion of Samsung’s target market as this is the group of consumers that have the most ability to purchase any of the product Samsung has to offer in the market be it smartphones, smart television, cameras or any other household products like vacuum cleaners or washing machines. This portion of customers will continue to grow in the years to come.