Apple Strategy – A Market Leader, How?
Apple is one of the top-selling smartphone makers or we can say the most profitable smartphone maker company in the world. They unveil two to three phones a year, their flagship phone and its bigger brother (basically the same phone with a bigger screen).
Apple makes only 2-3 phones a year still manage to gain a lot of market share (Mostly in the Western World) and profits. Recent trends show that Apple sold almost 41.30 million phones in Q3 2018 (Source – Statista 2018), Woooooh. How is Apple actually doing this? Let us find it out
-To answer the above question I will emphasize on one word, “EcoSystem“, So here I am talking about Apple EcoSystem. A lot of countries such as the United States, London and most of the European countries use almost all Apple products which include Apple’s Mac, Phone, Earphones, iPad etc
-When we take a product such as Macbook or iPad, people don’t really change them every year, however, people change their phones more often. This scenario makes an EcoSystem where people use their Macbook and iPad for three to four years when it comes to changing a phone they have to buy an iPhone to synchronize better, to use their phone in a smart way
-There is no such EcoSystem exist in the market globally, however a lot of big companies are trying hard to build this EcoSystem, as of now, no one got this right. People in the U.S. or U.K choose iOS over other brands or operating system (Majorly Android) so they can sync their data quickly without losing anything out of the box.
-However, this scenario is weaker if you consider South Asian countries such as India, Pakistan, SriLanka or Bangladesh. Purchasing Power Parity is not rich as compared to the western world, for these countries also they have low per capita income. Most of the population from South Asian countries cannot afford this EcoSystem.
-Above statement holds true if you see Apple sales figures in the US and India. In India Apple hardly has two percent market share. Apple does not believe in volume game and they focus on their per product pricing
-Most of their phones are sold in rich countries where per capita income is a lot higher than south Asian ones. Apple provides excellent services in these countries also its focus is great in these regions. Apple is not able to build this EcoSystem in countries like India, SriLanka because it is always difficult to build the Apple Ecosystem there
-Apple planned well in advance and their forward think was right to the point. They sold their earlier products or earlier Macs, iPad etc more aggressively in the western world and built the whole EcoSystem
The conclusion is that Apple is successful because of its Apple EcoSystem. Do you think any other brand will be able to replace or build a separate EcoSystem? I feel not in the near future
I feel Apple should start focusing on South Asian counties now. If I consider India, it is a great potential market for Smartphone manufacturers and it will grow exponentially, because of evolving foreign trade policies, doing business in India is becoming easier. Ease of doing business ranking (by World Bank) shows this, India achieved a rise of 65 ranks in a short period of four years.
Read more at: (for Ease of Doing business)
http://timesofindia.indiatimes.com/articleshow/66479614.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign=cppst
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