What drives Apple’s success?

May 2, 2012

Apple Logo

Today, at a market capitalization of about $560 billion, Apple is the highest valued company in the world. But what are the true reasons behind the sudden rise of Apple?

Before we begin, to avoid being overrun by the Apple brigade, let me state this – does Apple make great products? Absolutely. Does Apple make transcendent products that blow everything else out of the water? Absolutely not. Apple’s products are great, but limited in their own ways.

Now that we’ve got that out of the way, let’s dive in and have a look at the top eight reasons that drive Apple’s success. Some of these factors have always been Apple strong suite, while the rest are specific to the¬†iPhone¬†&¬†iPad.

What Apple Has Always Done

8) Ecosystem Lock-in & a Captive Market

When I talk about an “ecosystem lock-in”, I’m not talking about the App Store and app purchases, although that is certainly one of the examples. Apple has always been about¬†proprietary¬†technology, as opposed to promoting cross-platform compatibility.¬†Apple’s products have worked best with other Apple products.¬†Traditionally, this has been one biggest advantages and disadvantages of using Apple products, as it has caused Apple to either lock-in or alienate first time buyers, with very few instances in between. There are¬†numerous examples¬†of this strategy for users of the Mac, the¬†iPod, the¬†iPhone,¬†or the¬†iPad. So many Apple users keep buying more and more Apple products to make their life easier.

7) The Apple Cult

Ah, the dreaded¬†Apple fanboy cult! Diehard Apple users are notoriously vocal about the superiority of their platform of choice. So vocal, in fact, that research shows¬†Apple triggers a religious reaction in its fans’ brains. Some researchers have even categorized this as a form of¬†the Stockholm Syndrome. ¬†While that may be a bit extreme, many Apple fans do exhibit the “If Apple says I don’t need something, then I don’t need it”¬†behavioral pattern. This cult following of Apple started long before the days of the¬†iPhone, a time during which Apple was seen as the “little guy” being pushed around by the big bully (Microsoft). While Apple is no longer even close to being called the “little guy”, research shows that¬†the fanboy culture has remained.¬†Interestingly, this culture seems to be prevalent within Apple as well, as seen by their numerous lawsuits – this also ties in with point 5.¬†After the launch of the¬†iPod¬†and the¬†iPhone¬†(Apple’s first mainstream “hits”), this fanboy culture had a profound impact on the media’s perception, and hence the average consumers’ as well, of Apple products.

6) Focus on Developed Markets

The US market has traditionally been Apple’s stronghold. In¬†Q2 2012, nearly 34% of Apple’s revenue came from the US market, with another 22% from Europe. Focusing on these markets with the launches of the¬†iPhone¬†and the¬†iPad¬†was a great (and obvious) move as purchasing power and the strength of the Apple brand were stronger. Today, Apple’s market share in these regions is far higher than its global market share, indicating its strength in these regions.

However, the long-term growth in the consumer technology sector is going to be driven by the Asia Pacific region, which was responsible for about 26% of Apple’s revenue in the quarter. Even though Apple’s revenue growth from this geographic area is strong (a sign of how fast this market is growing), Apple has a minimal market share in this region, which poses a long-term risk.

5) Marketing and Apple’s “Reality Distortion Field”

This is where Apple’s true genius lies. Apple is probably the best consumer marketing company in the world right now and it seems like they can make their consumers believe practically anything. How?

(i) Advertising and Launch Videos¬†– Apple has always been the first to pat its own back, but its product launch videos and ads always project a generation-changing product. For example, in the¬†iPhone 4S launch video, you’d frequently come across terms like “ground breaking” and “revolutionary”, when at the heart of it, all they’ve done is upgrade the processor/camera and made a previously available¬†iPhone¬†app (Siri) proprietary to the 4S.

(ii) User Experience¬†– Another huge outcome of Apple’s marketing prowess is the propagation of the idea that Apple offers a “superior user experience”. A user experience is a subjective term that differs for every consumer, and every operating system has its own unique advantages and disadvantages. The fact that¬†70% of iPhone and Android users¬†retain their platform shows that consumers inherently stick to the “user experience” they are comfortable with, unless another platform offers significantly more advantages (read: Blackberry/Symbian users).

(iii) Reality Distortion Field¬†– This really ties into the above two points, but it’s so pervasive that I felt it deserves its own space. Apple has been so successful with its marketing efforts that most consumers who buy an Apple product automatically believe that it is the best product on the market, without even considering the competition. This¬†experiment by Gizmodo¬†truly highlights just how strong this effect is.

Factors Specific To The iPhone & iPad

4) Distribution Strategy

Apple’s company owned retail stores have been a huge hit, with long lines outside each store at every product launch. However, this itself has been a reason for Apple’s success and not necessarily a product of it. Apple could just as easily move the majority of its sales online. But the long lines outside a store and sell-outs at a store are a huge boost to the desirability of a product. It’s human nature to be curious about something that you can’t get (at least right away).

Even in countries like India, where Apple isn’t exactly a mainstream brand, a similar strategy is at work. Since Apple does not have stores in India, and cannot create huge lines based on its popularity, it delays and limits shipments to force more sell-outs. This is something I have seen first-hand.

3) Pricing Strategy

Apple has always positioned itself at the high-end of the market, and its pricing strategy was one reason it lost the PC battle to Windows. But in order to go mainstream, the price points had to be appealing to the masses. In the case of the¬†iPod, it was a relatively low value product, so pricing wasn’t a major factor to most consumers. But with the launch and growing popularity of the¬†iPhone, Apple was able to¬†extract massive subsidies¬†from carriers on the promise of data usage revenue. This comparatively low price, spurred even more demand from consumers while maintaining Apple’s margins. Considering the fact that the¬†iPhone¬†is currently responsible for 60% of Apple’s revenues, this was one of the primary factors in its success.

2) Timing

Apple masterfully sequenced and timed the initial product launches of the iPhone and the iPad. Granted, iOS was more touch-optimized as compared to its competitors at the time (Windows/Windows Mobile) for those product categories, but the timing of the launch played a larger part in their success.

(i) iPhone РThe iPod was a product that went viral primarily due to its form factor. But touchscreen phones (even capacitive ones) were already present in the market before the iPhone, with numerous models available as early as 2002. Apple launched the iPhone at a point where innovation was practically dead in the mobile phone industry. If the iPhone had launched in around 2005, it would have been overcome by the Blackberry revolution, as QWERTY keyboards were in vogue. Additionally, launching the iPhone after it had already hit a home run with the iPod, brought about huge consumer and media interest.

(ii) iPad РTablets, again, were nothing new to the technology enthusiast. Microsoft entered this market in 2002, with tablets from multiple manufacturers, running Windows, which consumers never found appealing. And again, the iPad was launched at a time when innovation in the PC industry had crawled to a halt and right after the iPhone had reached mass consumer appeal, far greater than anything the iPod could have hoped for. If the iPad had been launched before the iPhone or at the same time as the iPhone, it would not have seen the level of immediate market acceptance that it did.

1) Revenue Concentration in High Growth Industries

All the reasons we’ve seen so far explain why Apple’s products have been successful, but none of them answers the question, “Why is Apple the most highly valued company in the world?”.

(i) Market dominance vs. High growth markets¬†–¬†The answer to that question is simple – Apple derives 80% of its revenues from the¬†iPhone¬†and the iPad, i.e. from two of the fastest growing industries in the world today. While, when you look at Apple’s dominance, it is most dominant in the music player segment, with the¬†iPod¬†owning a¬†78% market share. But even while its market presence in the smartphone and tablet segment is lower, they are higher growth and higher value markets.

(ii) Comparison with Competitors¬†- When you compare Apple’s situation to other companies in these industries, the situation is different.
(a) Industry Focus¬†–¬†Most of Apple’s competitors are diversified into low growth and low margin industries. For example, Samsung is present in displays, semiconductors, electronics, etc.
(b) Market Segment Focus¬†-¬†Another factor is that Apple only focuses on the high end of the market, while its competitors are present across price points. Purchasing decisions are made first by platform and then by manufacturers (Think about it, you’ve heard about the Mac vs. PC debate and the Dell vs. HP debate, have you ever heard a Mac vs. Dell/HP debate?). Therefore, at the high end, Apple’s competitors need to compete with Apple and among themselves as well. This is the reason why, in order to drive higher volumes and profits, they need to compete at the mid-segment and low end as well, which is similar to the situation in the PC market as well.
(c) The “Profit Share” Fallacy¬†– This is slightly off-topic, but I feel compelled to mention it because most people seem to talk about it without truly understanding what it means. The market segment focus (b), mentioned above, is also one reason why the “profit share” argument makes no sense. Apple’s “profit share” is an outcome of greater¬†competition¬†among its competitors (and partly driven by¬†Google’s business model) and not necessarily an indication of Apple’s dominance. Firms in an industry do not compete for a limited pool of profits, they compete for market share in a finite market.

Conclusion

In contrast to popular opinion, Apple’s success is driven less by the company’s products and more by the company’s marketing and business strategies. Most other oft-quoted reasons for Apple’s success are a by-product of one or a combination of the above factors.

Comments

  • 8PAQ

    It’s funny how many articles about Apple or comparing Apple to Android this Android site has. Insecure much or just click baiting?

    • AndroidVesti

      I guess Android fans like to hear that their product is “more superior” from time to time too. But if you think about it, there are a few good points in here.

      • 8PAQ

        There are some good points but what stops other companies like say Motorola or HTC from doing the same thing and how come they are not getting the same results? It’s because Apple products actually really intuitive and easy to use and people like the overall experience. Consumers are not just buying Apple products because they are dumb sheep. Is that what 78% of AT&T over 50% Verizon and Sprint smartphone customers are? Dumb sheep?

        • Mrband

          In one word, yes.
          In three words, yes they are.

        • AlterEgo333

          So with that reasoning, you agree that windows OS is better than MacOS?

          • 8PAQ

            I never had a Mac. My point was that you can’t dismiss all Apple consumers as idiots just because you think iOS devices are not as customizable as Android devices.

          • AlterEgo333

            True, but saying they are not because they are many is a silly argument. Being a “dumb sheep” presupposes that there are many.

          • 8PAQ

            Yes I agree that having significant market share doesn’t mean that there are no blind followers. But my point is that it is unlikely that such a large percentage of overall mobile users are buying Apple only because they are sheep. I think there are actually more blind Apple haters who refuse to even consider Apple product than there are blind Apple followers who refuse to buy anything else.

          • AlterEgo333

            you use the same rhetoric that you say is flawed… making blanket comments and generalizing on android users. Anyway, it all boils down to choice. I have had as much experience with android as with iOS. For me, android is really a lot more intuitive. Brains are wired differently on everyone. I hate being “told” that I can’t do this or that or that I have only one way to do something. Of course, a system like that will probably be more stable since you have less “variations”. I prefer open systems than closed ones.

          • Darkangels6sic6

            Actually it can be just that. Just like I described with the whole music thing. Apple’s biggest point is it’s hype and popularity, not it’s userbility. The mass of people are ones that would make decisions based on what they were told, like something because they heard it was best. Majority of people, use, buy, listen to, watch, and do what is most socially acceptable. If you are not straight, white, christian, skinny, and have an iphone then you are immediately seen as different and wrong and everyone fears this judgement, but dishes it out at the same time and it’s this horrible cycle that just goes on. Some people actually do prefer the Iphone and that’s fine, but to majority it’s the most socially acceptable.

          • VZW Rep

            As a Verizon Wireless customer service representative that had no particular interest in Apple v. World before, I have grown to notice that there are 10% of Apple users who actually use it because it is better for their actual life, The rest simply see flashy commercials and don’t realize they have options or that android phones can do anything at all. Let alone are too complicated. The marketting of phones on comercials are generally network related when it comes to Verizon advertisements. They don’t focus on the great devices that are non apple, and with 3 carriers boasting about apple and 3+ years of AT&T exclusivity, most people who ask to purchase an iPhone from me or have purchased an iPhone do so because they are curious as to what they are missing out on, others feel like they can finally be a part of some exclusive club.

    • http://AndroidAuthority.com/ Bogdan Petrovan

      It’s funny how many comments on an Android site this Apple fan has. Insecure much or just trolling?

      • Top Gear

        Why can’t both be true? You’re insecure and so are Apple fans who you bait.

      • 8PAQ

        Nah, I just come here for a good laugh. I love reading posts on how Android tablets will destroy iPad year after year. It’s pretty hilarious. Also, I find it hilarious how Android fans from America cheer for a Korean company to beat an American company using a free American OS and copying the style of American company’s phones, packaging, look and feel and by making fun of American customers lining up to buy American company’s products.

        • 8PAQ

          Ok to be honest I do like reading about any mobile technology including Android and you guys have a lot of pretty good articles too so I come here for those as well.

        • AppleFUD

          tablets haven’t been around long enough to have any “year after year” statements and in one year Android tablets have taken a rather large chunk of the market. . . kind of like what Android smartphones did, just sayin’.

          So, I guess an apple fanboi finds that funny? Apple’s share consistently dropping?!?!?!?!

          You fanbois have strange humors.

          As for American Vs. Non-American companies. You need to get a clue. Most of apple’s “employees” and contractors are NON-American and Samsung employs many Americans with many of their high tech facilities right in the U.S.A. While Apple does all it can, like most every “American company,” so skirt U.S. taxes with oversees subsidiaries and using other states for tax relief, etc. . . while non-American companies have no such loop holes to use.

          It’s one thing to like tech devices, but it is delusional to like a company ‚ÄĒ they don’t care about you one iota, only your bank account and profits.

          • 8PAQ

            1. I am pretty sure I saw plenty of Android tablets vs. iPad articles here last year. Now it’s happening again. Thus multiple years.
            2. Most of Android tablet sales are now Kindle Fire (in USA at least) which is probably the worst thing that can happen to Android tablets because:
            a) It fragments the OS to a new branch and slows down ICS momentum for tablet app development.
            b) Google gets nothing from it which reduces their incentive to continue developing Android.
            c) It kills profits in low end Android tablets market for true Android tablets.
            3. Do you think Americans own more shares of Apple or Samsung? What economy profits more from Samsung success in the end? Korean or American? Btw I do know that both Samsung and Apple manufacture in China but where does the money from profits and capital gain go in the end?

          • Mrband

            Just wait for the Google Nexus Tab, and Kindle Fire will be history. And after that, next target iPad. The reign of Apple is starting to fall: the New iPad is not exactly a big sales success and even iZombies admit iOS is stucked and needs urgently to be updated just to be on pair with ICS (Siri? don’t make me laugh!).

            And now here come W8 tablets… Next Apple device: iGrave. :p

          • 8PAQ

            Dude! iPad is growing at 150% a year. That’s triple from 2011. iPad is growing faster than iPhone. How is than not successful?

          • Darkangels6sic6

            the most popular music over hear is a hole bunch of people who learned how to carry a tune, use autotune, find a catchy beat, and throw some lame generic lyrics together. Majority of people live by these singers and refuse to listen to other music outside of the socially acceptable. Does that mean that this music is the best? That it is groundbreaking or most original? Does it mean that Just because people listen to it more that I’m join the wagon and stop listening to a wide variety of music? Or that I forget about singers with real voices and do everything just because it’s more accepted? No…… Iphone and Apple products have always been more popular. That was never the argument. They gained extreme popularity by lying, steeling, and very very good marketing. That does not however mean just because something is popular or more accepted that it is the best.

          • Mrband

            iPad 2 is the responsible, not “New” iPad

          • Yacko

            Uh, it isn’t about the device or the specs. Googorola doesn’t have a robust ecosystem. Apple and Amazon do. Neither are going to get crushed.

          • AppleFUD

            Why should I as a consumer care about most of what you say about tablet other than if the tablet does what I need?

            You completely missed my point on American companies Vs Non. . . reread ‚ÄĒ profits made over seas generally IS not brought into the US. Non American companies in the US have NO loop holes to avoid taxes, etc. . .

            It isn’t as clear as company A made X profits and if they are US based therefore it is better for the US. You need to educate yourself on global economics, US corporate economics, and US corporate tax laws. . . just for a start.

            Think of it this way, if Samsung makes big plant to build high end SoC, such as the one in Austin, and they pay employees top dollar, because they are high tech jobs, and they have absolutely NO tax loop holes because they are a foreign company Vs. apple doing the same thing, which ends up over all profiting the U.S. more? Not apple, as they will find every loop hole to not pay U.S. and state corporate taxes. As all the employment would be the same, that would be equal. Investors could invest as they wish, US or non, etc. . thus again, equal. It all comes back to what the “state” (U.S. & local state) retain from said company that “benefits” the country.

            Hope that helps to remove the US Vs non company fog from your brain.

          • 8PAQ

            I think you have some kind of logic fail going on over here:
            1. Excluding Apple retail employees vast majority of Apple employees work in USA. Pretty much all of engineering, for example. So basically all the high paying jobs.
            2. Manufacturing for both Samsung and Apple is done by other companies in China. So those people don’t count as Samsung or Apple employees.
            3. Most of Samsung engineers are in Korea. Yes I know there are plenty in USA as well but it’s probably less than 10% of what Apple employs in USA.
            It doesn’t matter how you try to spin it. Apple is better for USA as far as creating high paying jobs than Samsung. I am not even counting stock gains that Apple shareholders spend in USA vs. Samsung shareholders in Korea. Yes, most of Apple shareholders are in USA and most of Samsung shareholders are in Korea. That’s where dividends and capital gains go.

          • AppleFUD

            Samsung employs ~340,000
            Apple employs ~60,000
            world wide.

            If Samsung employs 10% in the US that is near apple’s total US employees ‚ÄĒ many of which are crap jobs.

            Apple’s main “employees” are Chinese workers, 700,000.

            Nonetheless, you have still totally missed the point, and like most apple fans change the goal post and ignore the fundamental argument at hand in order to defend your precious.

            “better for USA” means nothing when it comes to a US corporation Vs a Non US corporation and that’s what you just don’t get. These are a) global companies, and b) US tax laws are designed to profit more off NON-US companies. Thus, if all numbers are equal there is no way you can claim “apple is better for USA.” It’s silly and ignores current reality. The only way you can use that argument today is, apple has more US employees. I’m not arguing that point, I’m arguing “US company Vs non-US” and which is fundamentally “better for the US.”

            You then go onto numbers because you can’t argue the validity of your original argument, because it is invalid.

            Thus, back to your original statement about Android “fans” cheering for a Korean based company ‚ÄĒ it is a clueless and ignorant statement. The US can profit as much if not more so off a non‚ÄďUS company in many ways and the US can also not profit much off a US company when said company uses foreign subsidiaries to do business (as most every big business does) & avoid taxation and use low taxed states to avoid local state tax laws, as apple does ‚ÄĒ a NON‚ÄďUS company CANNOT use those tax loop holes. Do I really need to point that out again?????

            Now, rationalize it, work it, massage it, and move those goal posts again to make yourself somehow believe “apple is better” so you can somehow feel superior or whatever it is you are trying to get out of supporting & defending a company. . . . best of luck with that. . . I’m done.

          • Yacko

            Are you speaking of just the electronics parts section of Samsung, or the consumer device side, or the entire conglomerate in total? Apple doesn’t do heavy construction, build ships or sell life insurance, all industries that are part of Samsung. Samsung is comprised of about 80 diversified worldwide companies.

          • http://www.AndroidAuthority.com/ Darcy Alexander LaCouvee

            Aww yeah! 8PAQ vs AppleFUD! I knew it was inevitable, lol.

          • Skem

            You, sir, are fucking awesome. You just owned the sheep like nothing.

          • Skem

            You just got served by AppleFUD. It was fun reading your arguments, sheep.

          • Darkangels6sic6

            You have no clue what you are even saying. First off Kindle Fire is an entire different competitor just as Ipad and Android Tabs are. Second you are repeating non sense to dodge factual things that someone actually knows about is telling you. All of what you are saying does not even make sense. People root for other companies because some people can actually think. They know Apple is crap and that they copied and stole just about everything. They dont want to use Iphone just because they were told to.

  • eClipse

    Non-technical, techo-phobic, and bandwagon jumpers tend to be Apple’s best customers.
    Few people I know who actually understand technology, DRM, lock-in, or value for a dollar
    have ever bought into the Apple nonsense, which is why they continue to be a niche player in most spaces.

    Take the innovation of the market, watch trends, then release products which are actually years behind your competitors in a pretty package and tell everyone you invented it – even to the point of using the courts to try to enforce your “innovation”.

    Thankfully the web itself will fix this. Content is already king, but as the clients get thinner, the excitement over the shiny will wane. 10 years from now no one will care much about Apple or anyone else in the hardware space.

    Selling lots of products doesn’t mean you own the market, or doing anything better or exciting. The fact that the “Oh, you’re on a Mac?” discussions still happens tells you that.

    • AppleFUD

      In general I agree with you. However, you seem to miss that segment of the population that think having brand X somehow makes them “better.” This is the whole point of product branding ‚ÄĒ think of Nike, Coach, Gucci, etc. . . apple is trying to sell the same thing, branding ‚ÄĒ their tech is generally not very good, often ripped off, and others innovate on the same ideas faster and go further in a shorter period than apple ever does, but people want brand X because of the perceived value to their person. Yes, it’s a sad statement of those humans.

      • rattyuk

        Nope. I think you are wrong and the conclusion of the article is wrong. If it were merely the cult members buying stuff then they wouldn’t be attracting the numbers they are selling. They would run out of iSheep faster than that.

        “In contrast to popular opinion, Apple‚Äôs success is driven less by the company‚Äôs products and more by the company‚Äôs marketing and business strategies. Most other oft-quoted reasons for Apple‚Äôs success are a by-product of one or a combination of the above factors.”

        If it were merely marketing then it would have dried up quickly. If you don’t have the products to back up what you are marketing then you will not get repeat business. This is something that the Android base is finally discovering (although not here). You can only sell a few phones based on a list of features that better your competitors. You cannot market stuff by saying “It’s just like the iPhone, but open” people really don’t care about that. People aren’t the people who hang around internet forums and post responses to geeky opinions, well they are people too but not the sort of people who actually buy stuff.

        Worse still for Apple’s competitors, it is not about marketing either.

        The other issue here is that there is a small and decreasing band of people who can afford the top-end phone of the month. The bit of Apple’s marketing that people miss is that the release cycle of the product is based entirely around the way that the carriers work. None of this race to release the latest and greatest, but examine how the market works and release hardware that respects that. It is a chess game not a shoot em up.

        “However, you seem to miss that segment of the population that think having brand X somehow makes them “better.””

        Take your blinkers off. That would soon wear out. There is branding, yes, in what Apple sells, but that has nothing to do with it really.

        “their tech is generally not very good, often ripped off, and others innovate on the same ideas faster and go further in a shorter period than apple ever does”

        But, certainly with the phone, that is the point. The market does not allow customers to buy stuff in shorter than 2 year cycles because of how the carriers cover a market. There is no point in innovating in faster cycles as you have more hardware development costs and you have a larger investment to undertake.

        “Non-technical, techo-phobic”

        Ironically eClipse comes close but has skewed his answer towards the trolling end of the perception. I’d agree with his first two types, but “bandwagon jumpers” would soon run out because their choice would not be the “cool” choice within a short period of time. Something else is happening here.

        Certainly I know people who have never bought into Apple’s ecosystem flipping over the iPad. These are people who never wanted a computer but wanted to do something that a computer was sold for – communicate. Indeed they are non-technical and possibly technophobic but that is not the point. Apple have created something that real people want to use and not only that these real people are absolutely loving the device. For a lot of people living and working away from family and friends the iPad is the telephone. If you have access to a wifi network then you can talk to anyone. For free.

        “Few people I know who actually understand technology, DRM, lock-in, or value for a dollar have ever bought into the Apple nonsense, which is why they continue to be a niche player in most spaces.”

        Apple has a small number of products in a small number of areas, which of these are “niche players”? The issue really is that they are a niche player in computing maybe but in the areas that count they are doing exceedingly well.

        The iPod was the first area where they were not a niche player, and they owned the market. “But, the MP3 player market is dead”, you say and you’d be right save that every iPhone, and iPad are also an MP3 player, so Apple still dominates that market.

        The iPhone is in a market where figures are skewed towards the way that carriers sell phones. Apple tried for maybe 3 months to change all that and then they caved and when with the subsidy model and gradually built a monster.

        The iPad is a law unto itself and it looks like it will repeat the iPod story. And those that claim that it’s marketshare is falling are missing the point. It’s not about marketshare it’s about profit share and Apple are the only one actually making money in the tablet market. The Fire is a plastic razor, only there to sell you Amazon products. Amazon makes very little or even a small loss on each and every one.

        “Selling lots of products doesn’t mean you own the market, or doing anything better or exciting. The fact that the “Oh, you’re on a Mac?” discussions still happens tells you that.”

        I see that is what you think, but the market begs to differ. This really has nothing to do with a “oh, you’re on a Mac” throwaway argument the Mac has little to do with Apple’s current success. Ironically Apple are selling more and more Macs though as the halo effect kicks in.

        • Darkangels6sic6

          Sorry. Just because you can make a long long long over drawn mostly intelligent statement does not cover up the lies you just spilled. The whole bandwagon and hype thing can last a long long long long time. The majority of populations will stick to socially acceptable. In this sense if something is perceived most acceptable then it can stay that way for a long time. Many people buy into the lies of Apple and know by false advertisement and the regurgitation of others that Apple is quote on quote the best. This has a significant impact on their sales.

          Marketing and lying has a vast majority on their overall popularity. That is exactly what they are. Popularity. If branding died off that quickly then explain to me how all these big name brands are still going strong? Biggest name or most expensive in no way shape or form means best, but they sure do sell excessively well.

          And it most certainly is this because it may not be the best, but it does certainly work well. A good product followed by some of the best marketing and being as socially giant as they are would more than easily get people just on belief and hype. Then when it is a good enough product to work well and convince people that it’s best because they do not fully understand how everything else works as well…You have many many many people trapped under false beliefs.

          Sometimes tech moves too quickly, but then again if other companies were not hard at work then you would not have the precious Iphone. That is one of the biggest issues with Apple. They stole a lot of ideas and designs. What they didn’t steel they bought. A small left over percentage is creation and innovation. It is bought by Apple and then from there they pay another company to put it together. They then slap the highest price tag on it even though it’s not the highest quality, newest tech, most advanced, or top dog out there while calling it their own new invention. The higher price tag works in a way o make them more money while at the same time helps convince people of their quote on quote quality. They just ride off others while all the sheep just believe Apple is god and was the first and best everything. And that’s pretty much just like any typical Ifan comment. Well the most advanced tech is not important cause the Iphone does not have it, but when it does then it’s important. Also I am well aware that Iphone is not as overpriced as it used to be and that many top Droids can be in the same price range, but in overall and in resale based on false beliefs it’s still too much especially with the lack of work in it. Not to mention I remember a point of a full retail Iphone going for well over $1000. That was some of the worst overpricing ever.. though most people never actually had to pay that amount.

          Another huge issue is if Iphone is the only phone they work on, they don’t even have to do majority of the work, if it’s so premium, they supposedly work so hard…Then way is it always behind? Why does it sill have so many problems? Why does it knock everything out of the water? Why is it that they are not truly what they personify themselves as? If the hype behind them was true and they were really worth their price then nothing would ever be able to even come close to the Iphone or even macs in terms of specs, userbility, design, uniqueness, or any way. But that’s not the case. You just have a product that works well and is in the higher end.

          You comments on the Ipad and what not do not even make sense. It’s to do what a computer can do. That’s the point of all tablets and smartphones. Same as Iphone the Ipad is just other companies parts and still not the top dog. All the other tablets can do these things too. It’s again all about the hype. Everyone thinks Oh Ipad it’s Apple so it’s the best

          Infact there is one of the issues right there. Android devices are actually more integrated and more sociable.

          The big thing is that Apple is tyranic, monopolizing, lying cheating, steeling, making payoffs, used ripped of parts, designs, ideas, act like bullies trying to sue everyone even if they are sueing them for something they stole in the first place. They then have a lacking of effort, but just enough to perceive enough while using extremely good marketing and make tons and tons of money. Many people are smart enough to see through this OR open enough to listen to someone when they try to let them know hey guess what this is the truth.

          Everyone else is a Sheep for either just joining the wagon or for being ignorant to the truths about Apple. Very few people out there actually completely have tried other things, know the advantages of everything else, and just perfer IOS. Most people who even actually tried the other route went in with too many doubts to be convinced otherwise as well as with dis beliefs of their own plat form. They went in on the false pretense that Apple doesn’t get viruses, Apple just works, Apple never crashes, Apple never has bugs, and on and on. And that supposedly Android is 100% buggy, freezy, crashy, supposedly so fragmented, and does not work, is slow, laggy , and all the lies people made up to feel superior. Used a Droid(some only even barely used them and or only used really cheapy one) saw a couple issues and then just said it’s crap Apple is better and perfect.

          IOS just does not do everything Android does. With IOS it’s what Apple says goes. With Android you have such a vast amount more of freedom. The phone more conforms to you. And you have a choice to get anything you want.

          • rattyuk

            Ah ok, so you think it IS all marketing?

            Here’s the thing.

            Let’s take 4g. Apple were a long way behind on delivering a product with this area. There have been many companies that have delivered “4g” devices. But heaven forbid Australia and the UK allowing them to sell it there. Ironically in Australia the iPad was getting faster internet access on the linked dual band 3g than people were getting in 4g in San Francisco. But still that is not good enough. In the UK the carriers aren’t even going to turn it on for another couple of years so what is the point?

            What happens is that these other companies are releasing products with a list of features just to try and go one up on Apple but really if you don’t have the actual core experience nailed down then what is the point?

            “Biggest name or most expensive in no way shape or form means best, but they sure do sell excessively well.”
            The “most expensive” argument died with the Mac. The iPhone is not the most expensive mobile and the competition has spent two years promising a cheaper tablet and yet hasn’t managed to hit it. Remember Apple’s tablet entry point is now $399.

            “they do not fully understand how everything else works as well…”

            The point about marketing is that it is relatively easy. Apple’s sales cannot be accounted for by people thinking that the other companies don’t do marketing right. Which is what you are arguing.

            “What they didn’t steel they bought.”
            I disagree with the stealing thing – unless you think that Apple use steel on the back of the iPad :P. But what is wrong with buying technology in? Microsoft does it, Google does it, many other companies do it, but it is only “cheating” when Apple does it?

            “Well the most advanced tech is not important cause the Iphone does not have it, but when it does then it’s important.”

            Again, you miss the point. Firstly when the iPhone appeared it was unique. It actually changed the state of the market, if you disagree tell me one phone that is selling well at the moment that doesn’t utilize ideas put together in the original iPhone package? Secondly, and more importantly, Apple is selling into a market that refreshes every two years. They don’t need to push the envelope. People want their technology to work like their fridge, their toaster, their cooker. Turn it on, it works. Skinning and the like is irrelevant to all but a small geek sector of the community.

            “but in overall and in resale based on false beliefs ”
            Resale value is a straw man argument. Apple doesn’t set those prices, the market does. Apple has nothing to do with that price, why are you even bringing it up?

            “Not to mention I remember a point of a full retail Iphone going for well over $1000. ”
            Maybe on Ebay, not on the Apple store. A 64 GB unlocked phone will set you back 849 on the Apple store today. The 16 GB is 649. The Galaxy SII on Best Buy is 700 bucks unlocked and that has only 16 Gigs of internal storage! Again, what is your point?

            “That was some of the worst overpricing ever.. though most people never actually had to pay that amount.”
            Again, why are you bringing it up if “most people never actually had to pay that amount”?

            “You comments on the Ipad and what not do not even make sense. … All the other tablets can do these things too. It’s again all about the hype.”

            Er, no. You are looking at specs and ignoring ease of use and consistency. For example, the biggest selling Android tablet, the Kindle Fire, has no microphone or camera and is probably less useful than a telephone for communication. Your argument would be completely different if Android were winning the tablet market. But they ain’t.

            The other thing that you are ignoring but is becoming far more apparent as the iOS marches forward is that people are sticking with iOS because of the amount of money they have spent on applications and such. “But…” you will argue, many of those apps are free on Google Play… But that misses the point again. A lot of people over the last five years have spent money on iPhone apps, and they only work on iOS devices, but that investment pays off if you buy another iOS device, all those apps still work.

            “Everyone thinks Oh Ipad it’s Apple so it’s the best”
            So tell me, before the iPad, who had a tablet that actually sold in serious numbers? Microsoft had 10-15 years head start and failed to deliver every time except to a few niche fields such as medicine. The point being is that Apple actually delivered a product that did what it said, a product that took a long time to develop (It was in the labs before they released the iPhone).

            Rewind to the release week of the iPad and you’d be the one arguing that the iPad is such a girlie name it would never sell…

            “Infact there is one of the issues right there. Android devices are actually more integrated and more sociable.”
            If you want to kowtow to having Google sell thing to you, then yes it is “more social”. Communication is not necessarily about being social but staying in touch with people you need to or wish to. Transmitting what you eat or what you poo to your followers is not really relevant.

            “The big thing is that Apple is tyranic, monopolizing, lying cheating, steeling, making payoffs, used ripped of parts, designs, ideas, act like bullies trying to sue everyone even if they are sueing them for something they stole in the first place.”

            But it is OK when Google have an Apple board member tell them about upcoming products? You were aware that while the iPhone was being developed, Schmidt was on Apple’s board? He only excused himself from the phone discussions once Android development was underway? Apple are suing because Schmidt took Apple’s ideas back to Google. You are aware that the original Android was going to be a KIRF RIM device?

            “Everyone else is a Sheep for either just joining the wagon or for being ignorant to the truths about Apple.”

            It can’t possibly be because they are extremely satisfied with their purchase? It has to be because they are “sheep”. Hmmm. You are beginning to resemble the baddie at the end of every Scoobie Doo episode “We would have gotten away with it if it wasn’t for those meddling kids”.

            “Very few people out there actually completely have tried other things, know the advantages of everything else, and just perfer IOS.”
            And, as I mentioned above, many have large amounts of money already tied up in the ecosystem. There is no advantage to them moving elsewhere.

            “They went in on the false pretense that Apple doesn’t get viruses, Apple just works, Apple never crashes, Apple never has bugs, and on and on. And that supposedly Android is 100% buggy, freezy, crashy, supposedly so fragmented, and does not work, is slow, laggy , and all the lies people made up to feel superior.”

            Oh dear, old, old, old, strawman arguments again.

            “Used a Droid(some only even barely used them and or only used really cheapy one) saw a couple issues and then just said it’s crap Apple is better and perfect.”
            Well I don’t see where you’re going with that argument. If there were issues and it didn’t perform then they are entitled to their own opinion, are they not? And I can see them saying Apple is better, but you are pushing it by adding the “and perfect” to the end of your claims. You are putting words into people’s mouths to make your point. Apparently people can’t try and Android device and not like it in your world?

            “IOS just does not do everything Android does.”
            Indeed, but what it does do, it does more consistently. That is all that matters.

            “With IOS it’s what Apple says goes.”
            You’ve heard of jailbreaking?

            “With Android you have such a vast amount more of freedom. ”
            Yup, freedom to download apps that resemble apps that people have worked hard on for years only to find that someone has cloned them and inserted their own code into them and… well you get the idea.

            “The phone more conforms to you. And you have a choice to get anything you want.”
            And that was my point. People outside geek circles do not care about that. Most people want consistency over customization. Most people want stuff that does the job. Being able to skin something is like rearranging the deck chairs on the Titanic, very pretty, but ultimately a lost cause.

          • sameer_singh17

            I think you really need to read the article again, as a whole. All your comments are filled with strawman arguments.

            Nowhere have I claimed that Apple devices are low quality, in fact, I’ve specifically mentioned that. Marketing is huge a factor and it is one for Samsung too. In my opinion neither of those companies make the best devices on the market.

            And reasons 1-4 are fact, sworn to, be every single analyst worth his salt.

            No one is claiming that “all Apple buyers are cult members”. Read that again. It’s that the cult members/bloggers/etc. helped the initial popularity of the iPhone.

  • Francisco

    Really? I use Android and I don’t like the Apple lock in but, to me, one of the greatest point of Apple sucess is how well made their products are! There is no single android product which compares to Apple build quality. Samsung didn’t need all that marketing to make sgs2 a success. It was a success because it was a very nice product! That’s what android needs. Build quality.

    • AppleFUD

      I guess that depends on how you define “build quality.”

      Example:
      http://www.youtube.com/watch?v=elKxgsrJFhw

    • Darkangels6sic6

      Like FUD said. At least many Androids use Gorilla Glass. To the point though there are many well built Androids that can easily compare to Apple and many cheap ones that also can or cannot. The problem is that Apple is perceived as top dog even to someone who say they dislike them. The reason there is so many well this compared to Iphone and this is the Iphone killer is because so many people know that Iphone was never the top dog while so many people just keep on and on that Iphone is amazing. They are perceived to be light years better then they truly are.

      • melci

        Apple’s iOS devices were actually the first to use Corning Gorilla Glass.

        • rattyuk

          Actually Corning wasn’t going to make it until Apple made the case for it.

        • Darkangels6sic6

          Um actually no. Why does everyone always think Apple was the first everything?

          • Meill

            Um actually yes:

            Jobs ended up contacting the CEO of Corning, Wendell Weeks, and told him that Apple needed a light yet strong enough glass screen for use in their consumer devices. Weeks told him of the “gorilla glass” that the company had developed in the 1960s but had since been mothballed.

            Jobs convinced Weeks to immediately put the glass into production for use in the upcoming iPhone. Despite initial skepticism on Weeks’ part that Corning could do so and also be able to manufacture enough screens in time for the iPhone’s pending release, they did in fact achieve these aims within six months.

            Corning’s Harrodsburg, Kentucky factory was able to supply enough “gorilla glass” screens for Apple’s iPhone release in June 2007.

          • Darkangels6sic6

            Then why does every Iphone screen shatter like cheap glass?

          • melci

            Because every iPhone doesn’t shatter like cheap glass.

          • Darkangels6sic6

            Because they do. Lol. This is so funny and so typical

  • Quill

    Two additional factors that have helped apple’s dominance:

    1) apple enjoys a wildly positive bias from journalists. A few years back, a survey found that a large majority of journalists owned mainly apple products. This is true in other creative industries, like film and music, that subtly influence public opinion. The result is that apple products became embedded in American culture. I think this has had a huge impact on rapid adoption by naive consumers of products like iPhone and ipad.

    2) supply chain dominance. Apple uses it’s dominance over parts suppliers to monopolize inventories and assembly lines. That can cause shortages and parts delays to competitors, delaying time to market and constraining numbers of units available during the critical launch period.

  • http://www.facebook.com/RaduTyrsina Radu T√ģrs√ģnńÉ

    All good, only that Apple’s market cap is 580 atm

  • http://www.facebook.com/RaduTyrsina Radu T√ģrs√ģnńÉ

    You’ve written about almost everything and my kudos goes to you for that. You forgot mentioning a 2 VERY IMPORTANT things, though (or I couldn’t manage to find it) – the marketing that is done is 99% for free, because the interest around Apple is huge.

    Secondly, the internal secrecy is another key point. We are all acquainted and bored with the “source” rumour shit, and that is not done by Apple. Blogs, websites, newspapers promote Apple because it drives huge interest and because their secrets are very well kept.

    Keep them going, Sameer.

  • Somedewd

    Sheeple

  • Tell The Truth About Android

    An article rife with specious claims, inside a box of worn-out cliches & straw men, in hopes of spreading FUD about Apple’s genuine insanely great success, in a passive-aggressive attempt to prop up the eventual failure of the forever fragmented byzantine OS known as Android.

    Wanna know why Apple is showing extreme success?? Go to ANY Windows user alumni, who is now switched over or has his/her family switched over to iOS or MacOS products, and ask them ‘WHY THEY ARE STILL BELIEVING THE iHYPE?!’….

    They will give you a LITANY of AUTHENTIC & VISCERAL reasons why Apple’s tech is superior. But watch out…they might add ad nauseam as to how they kick themselves for not switching over EARLIER.

    A closet geek who passes the Android Fanboi Acid Test tried to show me how he can ‘easily’ configure his Android phone for just-about-anything-X-Y-Z. I got lost after the 5th configure window that he had to back out of in order to go back into…yadayadayada…in order to get it configured right…he thinks. Sheesh, what a brewing, fragmented disaster, that Android OS. And this observation from an career IT pro of 23 years. Trying selling Android to even the washed masses…

    Enjoy your walled-in-geeky TechDroid OS, fellas, along with the unwashed ones who will be bugging you incessantly on how to send a tweet over their obsoleting Android device that can’t be upgraded to the latest Ice Cream Sandwich….

    • http://twitter.com/bryanilee2 Bryan Lee

      I finally got to use a Mac for the first time at work and after using it for almost a year … my next home machine won’t be a Mac. It wasn’t bad, but it was not any better overall. Ease of use – about equal. Annoyances – about equal (although that darn “Front Row” thing taking 5 seconds to fade in and then 5 seconds to fade out when you hit the wrong key by mistake takes the cake). Stability – about equal. My Macbook required slightly more frequent forced reboots than my Windows machines (running Vista!), but we’ll call it a tie.

      Seriously, use whichever system you prefer and don’t listen to raging fanboys.

    • AppleFUD

      Sorry, my first computer was a MacBook Pro back in the early 90s then I moved to Win95 due to comparability with the rest of the world.

      My dad continued to be a Mac fan up till his death in 2010 and I had the displeasure of cleaning it up and getting his MacBook Pro ready to sell ‚ÄĒ thought I might want to keep it but after working with OS X for over a weak I was never so happy to go back to Windows.

      For ever Mac convert I’m sure there is a Windows convert that feels similarly to myself ‚ÄĒ OS X is by far the worst OS available. I would take Windows and Linux over it any day, any time.

      The rest of your comment is just stupidity at its best. If it had any basis in reality Android would not be the dominating platform it is.

      • rattyuk

        “If it had any basis in reality Android would not be the dominating platform it is.”

        I think that is the point. Where exactly is it dominating?

        • AppleFUD

          WOW!!! Talk about “open mouth insert foot.”

          I guess the fact that it is by far the leading smartphone platform means nothing. What, US share is now 51% to apple’s ~30 and Android had, what over 3x the growth iphone did? And larger for the world. . . NO, that’s not dominating. And I guess we shouldn’t mention that within one year a lame duck Android tablet OS captured 35% of the tablet market away from apple ‚ÄĒ so sad considering there weren’t many apps and the OS was thrown together and now it is all unified, that bodes well for the ipad.

          Yeah, you are right. It’s not dominating anywhere.

          Will you share whatever it is you are smoking. . . it has to be pretty darn good.

          Oh, let me cut off your next argument before you even go there ‚ÄĒ “but apple is making the largest profit!!!” Yeah, way to say you are a clueless isheep willing to pay massive markup to have an apple logo ‚ÄĒ yeah, that’s the argument I would go with to make my self look intelligent. . . .

          • rattyuk

            I suppose you missed the figures today about how well the Fire is selling in the post Christmas rush? I suppose you missed the bit where reported sales of iPhone outpaced Android last quarter?

            I never mentioned profit. But man, that is all that actually counts. If your company doesn’t make money it won’t exist.

            At the moment Apple takes the largest chunk of the profit with Samsung a distant second. The only other company making any money is HTC with 1% of the profit share.

            Which of the other companies that are losing money on a quarterly basis will be around to sell new Android phones?

            And you accuse me of inserting foot into mouth? Wake up and smell the coffee.

          • http://twitter.com/bryanilee2 Bryan Lee

            “… reported sales of iPhone outpaced Android last quarter…” Ok, I know everybody defines “smartphone” differently, but looking at some news articles now: for end of mar 2012, marketwatch.com says Android has 51% of US smartphone, Apple has 30%. NPD group says Android has 61% of US smartphones, Apple has 29%. Nielsen says Android 48% to Apple 43% in US. IDC says Samsung overtook Apple (and Nokia) to become the world’s top smartphone vendor in 1Q ’12 (yes, I know Samsung also sells WP7 and Bada phones – somehow I don’t think those were the big sellers for them).

            Yes, I concede Apple does get a lion’s share of profits. They are very good at taking people’s money.

          • rattyuk

            I am talking about the quarter just passed and you are bringing up older data? Awesome. Remember the good times, they won’t last.

          • AppleFUD

            “your company”????

            You own apple? Dude I want a loan. . . no just a gift.

            Stupidest statement ever!

            A company doesn’t have to have massive markups to be profitable, but I guess you are trying to say that you love to pay higher markup on everything you buy. Good for you!

            Dude, you have to be one of the more clueless apple fans I’ve seen in a while.

            FYI, tablet sales dropped by 38% and Android still hasn’t had decent ICS tablets released and you want to crow that apple is doing great cause overall they’ve lost market share?!?!?!?

            So, basically you are saying, “We iSheep love to pay apple as much as possible so we can run around saying apple is profitable even while market share erodes and we watch the PC Vs Mac all over again.”

            Well, I guess that’s something. . . . . if the money is actually going in your pocket that is. If not it’s just stupidity.

    • Darkangels6sic6

      Androids can be easily configured. Some things may take more work, but then they are not something so small or simple and you most likely would not be doing it if you didn’t know what you are doing. And most IOS users always jump in with all the same regurgitated mumbo jumbo you get so tired of hearing. It just works. It’s just better. Android is fragmented. Its more simple. All just things you read somewhere. Out of box both are just about as simple as can be. Android can just do more and is more integrated. Either device will take learning to use. Enjoy your locked down device that tells you what to do :)

  • Ranger

    This article is written as a narrow focused MBA. However, as an MBA, a Professional Engineer, and someone who interfaces with customers in a very high tech industry, I suggest an alternate reason as to what drives Apple’s success:

    1. Very high quality products (materials of construction, fabrication, reliability)
    2. Excellent customer service
    3. Well designed products (sleek, simple to use)
    4. Constant innovation
    5. Business integrity (They actually produce the products that they announce, i.e., Apple does not make hollow/false promises to their customer base.)

    These 5 factors would make any company successful in any high tech business. My business is high tech engineering. Those are the same factors we strive for, and its easy to see the customer’s positive response to such principles.

    • sameer_singh17

      Oh really? What exactly has some innovated since the original iPad? And I’ve agreed Apple makes good products, but so do a lot of companies. A product is only as good as the marketing backing it.

      And any MBA would understand at least the top 4 points mentioned here.

      • Jhelmey

        Interesting reply. Please do not take offense at my comments. Some points to consider:

        Apple innovation: ipad, iphone, imac, apple TV to name some. Specific features of each are very innovative.

        I do not agree with your statement “a product is only as good as the marketing backing it”. The quality of a product is independent of marketing. Superior marketing only enhances sales. I do agree that superior marketing combined with a superior product will result in astronomic sales: which is what Apple is showing today.

        Regarding your top 4 points. I agree with them except one – the “Apple Cult”. The problem with that point is that you are calling essentially the entire market a cult. Such a statement is not plausible. The sales as a result of the “cult” following would only be a small percentage. There must be other factors to explain the wide desire for Apple consumer products.

        As I stated, and as you quoted “you look at things from a business perspective”. My reasoning was from a different perspective based on the product. Marketing alone will not make a company successful in the long run. It certainly will in the short term – until people learn that the product is no good.

        So, in summary, I agree with most of your points. However, my perspective is very different.

        Finally, I enjoy having an interchange based on reasoning and business principles. Most people seem to fall into an Android vs IOS argument, which in terms of mass marketing, is totally irrelevant.

        • sameer_singh17

          Apple’s innovation with respect to features isn’t head and shoulders above competition, which is the whole point. I have never claimed that Apple does not make quality products, in fact I started out by saying that. What I’m saying is that Apple products aren’t mind blowingly superior to everything else on the market, as it would seem when you look at market cap.

          A good product is only as good as its marketing is meant to explain market success. The Lumia 900 is a good product according to most reviews, but according to sales, it is not. A good product is very different from the perspective of a consumer & a business.

          I meant points ranked 1-4. But I disagree with your take on what I wrote about the cult. The cult is a small group of extremely vocal fans. This is something that Apple already had before the iPhone was launched. There were Apple dedicated blogs and media members who used exclusively Apple products. Are you telling me that had no impact on the initial reception of the iPhone? I’m only talking about the perception battle here.

          And I totally agree that marketing only gives you an advantage, which is why it isn’t in my top 4. There were more important reasons why Apple’s stock price grew the way it did.

          And I totally agree with your last point. Our personal preferences or platform of choice have absolutely no impact on the market acceptance or success of any platform. The challenge is to always attempt to disassociate personal preference from market realities.

    • Darkangels6sic6

      Those same things can be said about just about an of the top companies or even some of the lower companies. Which was the point of this article. The obvious aside…What really has them doing so well? All except for the fact they hardly invent or innovate, which again is the one of the big things that bring this article up.

      Who is supposedly making hollow promises? I believe that the false advertisement of Apple is the worst and most hollow of them all. Ground breaking, Changed everything, Started it All, First, Best.

      The reason they are so big is through, power, money, illegal actions, pay offs, and sadly very very good marketing. They are perceived socially as the best.

  • Meill

    8) Ecosystem Lock-in & a Captive Market
    ¬†“Apple has always been about proprietary technology, as opposed to promoting cross-platform compatibility.”

    Actually, it’s more a case that Apple is never afraid of using the best technology with cross-platform compatibility being a lower priority. ¬†eg. ¬†ADB then USB instead of PS2, serial and parallel ports.
    SCSI instead of IDE. 
    FireWire 400 instead of USB 1.0. 
    Firewire 800 instead of USB 2.0, 
    Thunderbolt instead of USB 3.0. 
    MPEG4 instead of MP3, Etc.

    7) The Apple Cult
    300 million iTunes credit card accounts and 365 million iOS devices sold – that’s not a cult, that’s a nation.
    Oh and it is Windows PC users that were originally identified to suffer from the Stockholm Syndrome.  

    5) Marketing and Apple‚Äôs ‚ÄúReality Distortion Field‚ÄĚ
    Ah yes, the old myth that it’s all marketing and the products themselves aren’t anything special.

    If that is the case then why is 69% of all mobile web browsing done on iOS devices versus only 27% on Android devices according to Chitika.  
    Why are 90% of all mobile purchases made on iPads and iPhones according to Rich Relevance?

    Why does the iPad account for 97.3 % of business tablet activations for the quarter, compared with 2.7% for Android according to Good Technology?  Why are 73.9% of business smartphones in use iPhones with only 26.1%  Android?

    Why is iOS developer income share 6x greater than Android? Why are iOS app downloads still far higher than Android? 

    If Android was as good and easy as the iPhone and the iPad at web browsing, online commerce, business usage, apps, etc why do the actual usage figures not show that?

    Factors Specific To The iPhone & iPad
    4) Distribution Strategy
    The long lines at launch have far less to do with Apple’s success than the no-pressure retail environment and the free IT support provided at the Genius Bars.

    (c) The ‚ÄúProfit Share‚ÄĚ Fallacy –
    Sorry, your thesis is the one that doesn’t hold water. ¬†Apple does compete in these markets but because of their higher quality, user experience, ecosystem, supply chain advantages etc Apple is able to maintain a far higher margin than competitors who are unable to differentiate themselves from their competitors on anything much more than price. ¬†

    As a result, competitors suffer the inevitable race to the bottom giving Apple a 38% share of the profits in the PC industry and a 74% share of the profits in the entire cellar phone industry.

    Conclusion
    “In contrast to popular opinion, Apple‚Äôs success is driven less by the company‚Äôs products and more by the company‚Äôs marketing and business strategies.”

    Wrong. ¬†Apple’s success is a combination of great marketing and business strategies, great products, rich ecosystem, industry-leading retail presence, huge growth in China, laser focus on priorities and identifying industries that were ripe for disruption – amongst other factors.

    Good marketing without good products results in an unsustainable enterprise and is certainly not capable of driving the monumental sales, profits and growth Apple has been sustaining and increasing quarter after quarter for almost a decade now.

  • AppleFUD

    This article’s comments show just how ridiculous apple fanbois are.

    They feel the need to seek out non-apple related sites whenever anyone mentions apple to start a flame war ‚ÄĒ pathetic losers!!!! And you all wonder why others call you iSheep, iTards, etc???????? Seriously?

    I certainly hope all these apple zealots that doing this are being paid by apple otherwise your lives are pretty void if this is all you have to do all day long ‚ÄĒ wait for an email in your RSS feed about apple so you can run to the site and see what they said, and if it isn’t glorifying your precious you get all butt hurt and begin with your FUD and RDF BS because you all can’t be bothered to look at multiple sides of any argument that concerns your precious apple ‚ÄĒ all must praise the holy crapple! Get over yourselves and go read your pro RDF apple sites if you don’t like people having differing opinions.

    • Meill

      Actually, this story was posted at MacSurfer.

      • AppleFUD

        NO, a link to the article here on Android Authority was posted on MacSurfer. That’s a big difference from “Actually, this story was posted at MacSurfer.”

        I guess that RFD stretches far and wide!

        Nonetheless, apple fans come to an Android site. . .

        • melci

          Pardon? I don’t quite see the distinction.

          I pointed out that a link to this article was posted on a popular Mac news aggregator site which means Apple fans did not all “seek out non Apple-related sites” to “start a flame-war” disproving our assertion.

          • AppleFUD

            Uh, let me see. . . you go to a “Mac news aggregator” and then click on “Android Authority” and you want to say you did NOT go “seeking” an Android site. . . yada, yada. . .

            That’s NOT seeking out? WOW, another one in the RDF lost in the weeds. Seriously, you just confirmed everything I stated?!?!?!?!

            That’s as stupid as me going to a “Google news aggregator” then clicking on a link to “Apple Insider” and expecting to read how great all apple fans think Google is and then getting all butt hurt cause apple fans don’t like Google, or think apple is better, etc. . .

            So, are you saying that these apple fans pissing and moaning here are just that stupid? or what? They just can’t read? Can’t figure out that “Android Authority” is most likely an Android centric site?

            You just cause my brain to hemorrhage.

          • melci

            No, I went to a Mac News Aggregator site and clicked on an article link titled “what drives Apple’s Success”.

            Are you seriously wanting to keep up this argument along with your vitriol? You realize the fanboy accusations you are making are back-firing badly…

          • AppleFUD

            No, you did not click on “the title” as that title was NOT linked. ONLY the site name is linked.

            Way to be an apple fan and just lie like old Steve J. when you are busted.

            You clicked “Android Authority” end of story!

          • melci

            Are you serious? No-one would click on the name of the site if the Apple-related article title wasn’t right next to it which is exactly what the case on MacSurfer. This argument is beyond silly.

          • AppleFUD

            You have got to be fracking kidding me. You claim you didn’t “seek out” but yet go to an aggregator and click on “Android Authority” because they have an article title tht has ‘apple’ in it and then piss and moan on AA about the article. And you think that is acceptable non trolling behavior?

            I’m condemning them for clicking “Android Authority” then bitching endlessly about Android ‚ÄĒ go to your f’n apple centric site and bitch about Android if that’s what you need to do, don’t do it on an Android site you idiot!

            Here’s a screen shot of the cached page you claim to have clicked on the “title” and NOT “Android Authority” after the title.

            https://docs.google.com/file/d/0B47WhN3byZmPSWNWY1ZUNEd2Mjg/edit

            Seriously, you don’t think coming to an Android centric site to spewing your apple BS & hating on Android is trolling? and Android readers aren’t going to take a little offense? And tell you to F’ OFF?

          • melci

            *rolls eyes*

  • Rccampbell

    What a load of bullshit. You make up your own “facts” to support your opinion like every other idiot under fifty. The entire article is simply bullshit.

    • Darkangels6sic6

      lololololololololol delusional lololololol

  • obionekenobi

    advertisements… thats why

  • Teh BuG

    What drives Apples Success? Brainless Sheeple hipster cult fanatics. ba-dum-tish

  • Teh BuG

    “What drives Apples Success?”

    Knew the answer immediately.

    Brainless Sheeple hipster cult fanatics.
    ba-dum-tish

  • Tony NoName

    It’s the Steve Jobs’s “Reality Distortion Field” Irradiation of people’s minds, that’s responsible for Apple’s success. Once their minds are cleared, they’ll all be ready to be Samsung’d by Korean Plastication Devices!!! ;-p …..Apple’s “RDF” Radiation has no effect on Plasticated Minds and the Samsung’d Generation will Rule the Planet:
    http://www.youtube.com/watch?v=I3071WuqgTs&feature=fvsr

    You’ll know you’ve been Samsung’d when you see this phenomena happening across America!

  • http://twitter.com/sk_iyer Shreyans Iyer

    Hi,

    Nice article :-)

    Certainly worth a re-read..

    Although you have mentioned this point, indirectly, through your references to Apple’s Marketing strategies, and its reality distortion field – Apple has managed to associate ownership of its products with a feeling of being privileged – a feeling of pride and makes you feel a little special, be it the “Think Different” Campaign or the iPhone and iPad campaigns..

    I think that is something remarkable, and is something we can all try and emulate, after all, most purchases are the result of emotional and not logical decisions :-)

    Just so you know – I’m not an apple user, just a marketing and Design enthusiast :-)

  • a friend

    - they build hard and software and use it together.
    – everything is linked in the system itself (apps) – Apple was 1st sry android
    – they don’t have 2301230230568 devices to support! Just imagine you have to support all the nokia devices!!!
    – the support is one of a kind. Imagine a microsoft shop.

  • http://www.buraq-technologies.com/ ambreen11

    Apple has earned the rep¬≠u¬≠ta¬≠tion as one of the most admired brands ‚ÄĒ and envied com¬≠pa¬≠nies ‚ÄĒ in the world. You have great points here. Thanks

  • http://www.buraq-technologies.com/ ambreen11

    Great post ! Apple is has set the bar for quality. I think what
    puts Apple ahead of the game is #3, Innovation. This company always
    delivers the ‚Äúnext best thing‚ÄĚ and soon everyone else in the market
    follows. Good info!