Apple Inc. is an America-based multinational technology company which was founded in 1976. Headquartered in Cupertino, California, Apple Inc. now has been known as the “Best Global Brand” with over 120,000 full-time employees across the globe (Zillman, 2015). iPhone is one of the most popular hardware products of Apple Inc. Since the first-generation iPhone was released in 2007, the line of the smartphones soon won large shares of the global market. By 2017, it is estimated that over 1.2 billion iPhones has been sold to the global market (“Press Release”, 2018).
In September 2018, Apple Inc. released its latest iPhone, also the most expensive mobile phone of the company, iPhone Xs. However, the over $1,000 price tag on Apple new iPhone still attracted throngs of enthusiasts around the world to wait and buy. Thanks to the new iPhone, Apple raised its record quarterly revenue to $53.3 billion in the third quarter 2018 (“Press Release”, 2018). It is known that the of Apple Inc. enjoys successful marketing strategies. Focusing on the marketing strategies of iPhone, this essay explores how the factors of iPhones’ high-end product, brand promotion and global distribution network contribute to the success of iPhone.
First of all, the advanced technology and innovative design are the core competitiveness for iPhone. Based on the innovative technology and advanced product design, iPhone is always regarded as the high-end and most reliable product in smartphone industry. In the article “Apple’s Global Web of R&D Labs Doubles as Poaching Operation”, Webb (2017) suggested that Apple Inc. keeps investing in its technology research and development to maintain the advantages of iPhone. For example, in terms of technology research and development, since the beginning of 2017, Apple Inc. has quietly integrated its technology R&D resources by putting together small research centers or labs of the globe, such as the labs in French Alps and New Zealand.
Annually, Apple would spend $11 billion on its technology R&D. As a result, iPhone kept its leading edges in the design of the products’ components, such as the screen design and the iOS operating system. In the latest iPhone X series, a new facial recognition system, which is called Face ID, has been developed and widely used. Such new technology removes the home button from the mobile phones, which provides customers with better user experiences. Thus, the innovative technology and product design ensure iPhone’s popularity.
Secondly, the brand promotion also contributes a lot to the success of iPhone. In the article “Is Brand Loyalty the Core to Apple’s Success?”, Goodson (2011) pointed out that Apple Inc. is known as a company which is good at brand promotion, marketing and customers relationship management. Featured by brand loyalty, iPhone has its loyal fans and followers who has special relationship with the products and the brand. To promote its brand images and improve brand loyalty, Apple Inc. initiated product release conferences in the mobile phone industry to help the customers learn details of the product. Also, it continues the conferences every year as a way to maintain customers interaction and improve customer relationship management. Such promotion strategy increases the products’ transparency and credibility. Thus, iPhone’s successful brand promotion leads to its brand loyalty, which played an important part in its global success.
Last, but not least, Apple Inc. enjoys its global distribution network, which now has become one of iPhone’s competitiveness’s. To adapt to the trend of globalization, Apple Inc. outsources its manufacturing sector and establish global warehouse to guarantee the efficient distribution of products. In the article “Apple Supply Chain – The Best Supply Chain in the World”, Lu (2016) pointed out that Apple sets its design and technology center in the United States, manufacturing and assembly center in China, and spreads its distribution and retail network in the North America, Europe, and Asian countries. Also, based on E-commerce, its sales and marketing networks then are extended to the globe.
Thus, the materials, products and technology enjoy free movement across the world. In addition to the tangible material and goods, the intangible services, data and technology also interacted actively across the world. For example, through E-commerce platform, Apple could gain data on customers and customer behaviors across the world. By making commercials and releasing them online, global customers could then get the information globally. Thus, to set up a global distribution is a successful marketing strategy for iPhone.
All in all, based on the analysis above, we could learn that iPhones’ high-end product, brand promotion and global distribution network contribute to its success in the global market. The competitiveness of iPhone not only boosts the sales of the products, but also enhance the products’ recognition. Learning from iPhone’s successful marketing strategies, other corporations should pay more attention to their product design, technology research and development, customer relationship management and global supply chain management to gain more advantages in the modern business environment.
