Why Has Apple become increasing popular - Essay Example

Why Has Apple Become Increasingly Popular? Apple incorporated or Apple computer incorporated as it was formerly referred to as a multinational corporation founded in the United States of America (USA). The corporation is headquartered in Cupertino, California and it designs, sells and develops computer software, consumer electronics and personal computers. The company started as a computer company with the best known hardware being the Mac computers, the iPhone, iPod music player and the iPad tablet computer. All of the company’s hardware operates on consumer software known as the iOS operating system and for comparison purposes it can be likened to Microsoft’s operating system called Windows. The company has gone through a dynamic metamorphosis from a computer company to a consumer electronics company since its founding days in 1976 to present. The incorporation’s consistent innovation and inventions I the information technology industry has seen it steadily rise to become one of the leaders in the market. This can be attributed to a myriad of factors that have been strategically combined the founders of the company to facilitate the transition of the company from just a mere computer company to a giant in the industry. This paper seeks to discuss the factors behind Apple Inc.’s increasing popularity in the global consumer electronics market. Every business start-up is seeks to establish itself in their target market an d establish a niche for their products or services which is the key to a successful business and guarantee of making profits. Apple Inc. started as a computer company in the 1970s along with other market leaders like Microsoft and joined the ranks of other computer companies like Hewlett Packard (HP). Apple Inc.’s computer the Mac did not get the market reception that the developers envisaged which was largely due to stiff competition from already established market leaders like HP, Microsoft and Dell (Hitt, Ireland & Hoskisson 127). The subsequent years after the introduction of Apple’s Mac computer there was a proliferation of various computer models and software in the market due to what can be termed as the explosion of the computer age. Various computer models and companies sprout up and saturated the computer market with new versions every waking day. The advent of the internet and rapid advancement in information technology (IT) resulted in globalization and the propagation of mobile communication devices (West, Joel & Mace 2). Steve Jobs was the co-founder and owner of Apple Computers Inc. and his accredited with turning the company’s fortunes around when he designed, developed and introduced the iPhone into the company’s products portfolio. The company changed its name to Apple Inc. an indication that it was breaking away from tradition and venturing into the consumer electronics industry. The consumer electronics industry is characterized by electronic equipment meant for everyday use in office productivity, entertainment and communication (Gross 3). This can be lauded as Apple Inc.’s turning point to profitability after its slump pre-consumer electronics era. This led to the growth of Apple’s market share into a global phenomenon changing its previous market niche of the US only. The company’s venture into the consumer electronics market with the iPhone, iPod and iPad revolutionized the mobile device communication and technology (Bostic 1). The combination of the introduction of new consumer electronic products and consistent innovation of mobile phones, personal computers and portable music players can be attributed to Apple’s rise in the industry. Apple Inc. operates in a technology intensive market that is characterized by cutthroat competition and a constantly changing environment in terms of product relevance and market dynamics. Technology is at the core of Apple’s contemporary market that ranges from commonplace consumer products which is the main focus of its niche market to esoteric products. Apple’s Steve Jobs is viewed to have based his rationale for turning the company around to consumer electronics on the adage behind the definition of the term technology. Technology is loosely understood in the marketing world as scientific knowledge applied to useful purpose (Corsi & Dulieu 82). To this end, the co-founder of Apple Inc. applied the literal meaning of technology to take advantage of the mobile communication devices by introducing the iPad, iPod and iPhone. According to Corsi & Dulieu, advances in IT enabled Apple Inc. to capture consumers’ daily technology requirements into their products’ functionality. Apple was able to apply this combined with adequate expertise intensity which facilitated the company’s success in consumer electronics. This enabled the company to seamlessly maneuver in a fast paced and dynamic demand/supply driven market conditions. The rapid changes in the intensive technologies market is an aspect that has been viewed as a negating factor in marketing of consumer electronics because of the perceived challenges in keeping up with the technology. Today’s society is tuned to rapid changes in technology, and a lull in new technology based products lowers market excitement that is caused by increased expectation. Apple Inc. possesses this understanding and insight into what drives market dynamics especially where consumer electronics and their accompanying software are concerned. This concept is proved by Apple’s trend of releasing their new products and services in a timely fashion that is simultaneous and sequential. On July 20 2011, Apple released MAC OS X Lion and on the same day it released its fiscal third quarter report (Custom Guide n.pg). This created a widespread overflow of information about Apple Inc. and its products, which acted to create a ‘buzz’ or increased awareness of its existence. These instances of information overload during the launch of their new products create an unprecedented publicity about Apple that is beneficial to the market of their products. Apple’s increasing popularity is based on a myriad of factors that the company has been able to put to their advantage and explore new business opportunities presented by new developments in technology. Apple’s popularity has been bolstered by the company’s incorporation of software applications in its product’s functionality and operating systems. An application is a mobile software feature that is designed to run smartphones, mobile devices and tablet computers (Bostic 2). Applications are available through application distribution platforms owned and operated by the owners of operating systems like Apple’s iOS. Apple launched its application platform known as iTunes and the App Store through which thousands of applications are available to Apple Products’ users. Apple products are designed to rely on the use of applications available on their platforms making the use of these applications a necessity. Applications increase the functionality of Apple products, which makes the use of applications a must for Apple users. Applications have not only increased Apple Inc.’s profits, but they have worked to increase Apple’s popularity in the global market. The power of Point-of-purchase (POP) advertising can also be attributed to have a significantly influenced Apple’s increasing popularity in the global consumer electronics market. Point of purchase advertising is a marketing strategy that utilizes properly designed POP signage as a promotional effort for products. According to social psychology consumers POP advertising and marketing is aimed at influencing consumer’s beliefs, feelings and perceptions about target products (Liljenwall 164). With POP, the advertising meant to elicit the purchase of a product is usually a foregone aspect since this strategy is implemented at the point of sale. Advertising and marketing at the retail end seeks to establish an advanced aspect that is related to the product. POP advertising of Apple’s products has been attributed to a rise in the consumer confidence levels because of the potential POP signage leaving a lasting impression on consumers. Brand loyalty is also achievable through POP because this advertising strategy enables advertisers to convey messages to the consumer that are not feasible on a sales advertisement. There have been increasing concerns about Apple’s labor policies and practices in countries where most their products are made because of claims of workers’ rights abuses. Apple Inc. outsources most of its manufacturing jobs in Asian countries where labor is cheaper and there are fewer restrictions on production prices. In countries like China where most of Apple’s products are manufactured, there have been numerous claims of human rights abuses in the work place. Apple Inc. has also been accused of being anti-American because even though the company is headquartered in the US, Apple Inc. uses tax havens to avoid paying to the US government. Labor practice in Asia where Apple manufactured has gotten the company more attention even if it was for the wrong reason. It can be arguably concluded that Apple Inc. has effectively used opportunities presented by advances in communication technology to position itself as a top global brand. Apple has used innovation and inventions in their product line to set them apart from their competitors. Apple’s popularity has been promoted by various aspects of intensive technological marketing like the use of knowledge based marketing and value addition. Apple’s strategy in the consumer electronics industry can be emulated and applied in other unrelated enterprises to help them maneuver through fast changing world of global commerce. Works Cited Bostic, K. Apple’s iPhone Grows to 43% Share Among Smartphones. AppleInsider. Web. 10th October 2013. Retrieved From: http://appleinsider.com/articles/13/09/02/apples- iphone-grows-to-43-share-among-us-smartphones Corsi, P. & Dulieu, M. The Marketing of Technology Intensive Products and Services: Driving Innovations for Non-Marketers. Reprint Edition. New York: John Wiley & Sons. 2013. Print. Custom Guide. The Surging Popularity of Apple. Custom Guide. Web. 10th October 2013. Retrieved From: http://www.customguide.com/the-surging-popularity-of-apple Gross, D. Apple Passes Coke as World’s Top Brand. CNN: Tech. Web. 10th October 2013. Retrieved From: http://edition.cnn.com/2013/09/30/tech/innovation/apple-coke-top- brands/index.html Hitt, M. A., Ireland, R. D. & Hoskisson, R. E. Strategic Management: Competitiveness and Globalization: Competitiveness & Globalization : Concepts. London: Cengage Learning. 2011. Print. Liljenwall, R. The Power of Point of Purchase Advertising: Marketing at Retail. Revised Edition. Point of Purchase Advertising Intl. 2004. Print. West, Joel, and Mace, M. "Browsing as the killer app: Explaining the rapid success of Apple's iPhone." Telecommunications Policy 34.5 (2010): 270-286. Read More