Aaron Bae (Seongyun Bae)

How has Apple been so successful for the last 4 years?
– It is all about marketing.

First iPhone in 2007

Apple has successfully penetrated into the smartphone industry in 2007. Its relative share in the industry still remains somewhat stable.

Today, I explain why it has been so successful for the last 4 years.

There was a number of smartphones already in the market before the first iPhone came out, but their market share in the mobile industry was significantly low. However, Apple successfully stroked the industry by knowing what customers wanted at that time. Apple knew what they wanted was not just touch screen phones with the Internet. They knew another revolution like GUI was in need to make phones easier to use. With the icons in the screen that directly took the users into the functions they wanted to use, Apple created a simple and intuitive device.
Their strategies also made it successful.
They focused on the product concept to have quality devices, yet knew about marketing myopia so did not go too far away from the demand. They also built strong customer relationships by encouraging two-way conversations from Apple stores and on the Internet. Apple regularly issued firmware with the functions in constant demand in turn.
Market targeting is another factor. They initially targeted young male consumers with income and some interest in the technology. As you can see from the picture below, most people waiting in line were young male.

June 29, 2007

Using the Boston consulting group approach, the iPhone will soon be a cash cow or dog. Their relative market share has been gone down. For one year, their share went down by 8% while Android’s market share doubled. iOS is now only occupying 20% of the OS while Android is occupying near 50%.
The smartphone market growth rate is also not growing as fast as before. It seems the only two dominant OS will rule for a while.

When considering microeconomics, another strong competitor, Microsoft will soon release Windows 8 incorporating tablets, desktops, and phones altogether. The Apple’s market share will continually go down.

Windows 7 Phone vs. iPhone

Soon to be released Windows 8 tablet

Sources from:

http://www.slashgear.com/comscore-android-nears-44-of-us-smartphone-market-share-05185688/
http://www.theinquirer.net/inquirer/news/2106625/android-market-share-doubles-apple-ios-falls-cent

Aaron Bae (Seongyun Bae)

COMM 296 – 104