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Apple Company

Apple Company Essay – Sample

Apple Inc. – Background

Established in January 1977, Apple Inc. (commonly referred to as Apple) is involved in the design, manufacture and marketing of a wide range of technology products. Its product list includes a range of mobile devices (for communication and computing purposes) and PCs (personal computers) as well as a selection of portable digital music and video players. The company additionally offers a number of software, peripheral device and networking solutions. Apple’s own marketing network is extensive and includes a sales team, an online store, retail outlets and third-party vendors. Additionally, Apple Inc. sells a range of third-party products that are compatible with its Macintosh computers (Macs), iPods and iPhones via its retail and online stores. These products include software applications, storage devices, printers, headphones and speakers as well as a variety of other peripherals and accessories. Its iTunes App Store also stocks a wide range of applications and digital content. The company’s products are popular with all types of people including private individuals, those involved in creative pursuits, government bodies and educational establishments as well as SMEs (small and medium sized businesses) (Whitney, 2010).


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Looking at its history for this Apple company essay, the company has made considerable progress. From the outset, Apple ignited the personal computer revolution. After the Apple II was invented early in the 70s, Apple went on to change personal computing with the release of the Mac in the 80s. Over the ensuing years, Apple has proved itself devoted to providing its global customers with an excellent user experience. The advent of the Internet and a myriad of hardware and software offerings helped the company achieve its aims. Currently, Apple continues to lead in innovation, offering high-quality computer hardware and professionally designed software. Additionally, the company can be credited with leading the digital media marketplace after launching the iPod, a portable video and music player and the first of its type, and the ITunes store. On top of all this, the launch of the new iPhone allowed the technology giant to penetrate the mobile phone market and capture a significant share of the same (AppleInsider, 2010).

The entire Apple marketplace is divided into a number of clearly defined segments: home users, young users (also known as “Mac” users), creative individuals, the education sector and SMEs. The Apple retail store uses a concept that allows users get a peek at their amazing products and directly experience the company’s software. Apple offers a successful product line that comprises of the iPhone, iPad, iPod, iMac and the Macintosh brands. However, the company experienced an unexpected failure with two ambitious products, which were the Mac Mini and Apple TV.

Strong Points

One of Apple’s strongest points is a talent for setting design standards, ensuring it is always ahead of market trends, and an ability to develop ergonomic electronic products that give good performance. For example, in 2011, Apple Inc. intentionally made a significant investment – to the tune of $80+ million – towards the research and development of new high-tech products. For some years past, the Apple brand has enjoyed high visibility, thanks largely to the innovative quality of the iPhone, iMac, iPad and iPod. To hold onto its large customer base who remain loyal to the “apple culture," Apple needs to continue with the production of innovative product lines at a global level. Given the rapid growth of mobile technologies in the Asian region – in countries like India and China – and according to Reuters (2010), the company would do well to focus on the Region’s mobile market. 

Weak Points

By the company’s own admission, Apple relies heavily on the worldwide economy. The company could suffer negative impacts in the event of an economic downturn and fluctuating currencies cause uncertainty when it comes to predicting global markets. A notable weakness was the unpredicted failure of the Mac Mini and Apple TV. Moreover, even though its share of the market is lower than Microsoft’s – its main competitor – the price tags on Apple products has always been high. To remain competitive, this Apple company essay suggests Apple needs to shift its focus to the purchasing power of the global market. It should set its prices mid-range, particularly for the price conscious Asian marketplace as well offering fair prices to its European consumers (Lewis, 2007).  


Apple Inc. - Market Demands/Opportunities

There is no doubt that Apple Inc. has succeeded in maintaining a strong and highly visible presence in the USA and in different European countries (Etherington, 2010). The company has, however, experienced considerable difficulty penetrating the markets in Asia. Yet, according to advertising material, Apple anticipates reaching new markets and new revenue sources with the launch of a newly designed promotion-style platform for its mobile devices, namely the iPod touch, the iPad, and the iPhone. Additionally, this Apple company essay notes how the demand for accessing music online has increased on a global scale in addition to increased demand for cloud-enabled applications and services. Added to these requirements is a growing desire among consumers for greener and more energy-efficient products, all of which gives Apple scope to develop new and more innovative products for the future (Etherington, 2010).         

Legal Actions/Threats

In recent times, Apple Inc. has been embroiled in numerous court actions, including claims of patent infringements and antitrust violations. While many of these actions involved smaller businesses, there were some surprising plaintiffs e.g. Nokia. The risk of legal actions has always been a possibility owing to the potential for unfavorable judgments and the considerable fees involved. Apple products have also been drastically affected by similar or substitute products, particularly in the current technology marketplace where innovation dominates and competition is fierce. Apple has always had to deal with challenges and fierce competition from other major technology players, of which Dell, HP, Lenovo, Samsung and Nokia are prime examples. To deal effectively with threats like these, this Apple company essay suggests that Apple would do well to strengthen its links with other key industry players like Intel and Microsoft and engage in joint ventures with the likes of Samsung and Motorola. According to Latest Gadgets 2010, this would help facilitate the introduction of fresh “Hits” (Latest Gadgets, 2010).    

While Apple is renowned for the high quality and uniqueness of its products, many of which have indeed been revolutionary, the company cannot always command premium prices. By introducing high-quality contenders, competitors have forced Apple to take a more rational approach to pricing, especially for its most popular offerings such as the iPhone. Although the company can initially command premium prices for revolutionary new products, it has to reduce prices to match the many competing and more competitively priced products. In the computer and electronics marketplace, price wars are commonplace and even big players such as Apple must give in to the pressure if they are to maintain their market share and increase revenue (Kim, 2010).

To Conclude

In reality, establishing an Apple dealership would be difficult and different to establishing a personal computer dealership. However, in recent times, Apple has turned to the Internet to sell products in much the same way as Dell does. This would seem to have clear benefits because of the reduction in inventory costs and the potential for reaching more consumers. Another tactic adopted by Apple Inc. is the selling of some of its products through well-known retailers. This gives consumers who were not previously familiar with Apple products the chance of a “hands-on” inspection. Additionally, Apple is looking at the possibility of establishing more new outlets. All these initiatives in a robust marketplace are creating new opportunities for the technology giant (Whitney, 2010).