Apple has been the innovator in personal computing for the last 30 years. Over the last few years, with the advent of the iPhone and the iPad, Apple had taken the technological and the marketing lead in that arena. Apple already had a dominant position in the iPod market.
Last fall, Apple’s competitors (Google “Android” and Samsung) have closed the technological gap they had versus Apple with the announcement of products like the Samsung Galaxy Note. On the other hand, they did not close the marketing gap. Apple is still the market leader due its early lead and the Apple Stores.
The Apple stores have been a novel idea by Apple to reach the consumer. It is an incredible success. Another example showing how Steve Jobs was a visionary! Who hasn’t gone to an Apple store and could not be serviced, not because there were not enough Apple clerks, but because there were too many customers. Also, with this sophisticated technology being purchased by unsophisticated users, people need training. The Apple store is the perfect place not only to train new customers, but to sell them new stuff while they are at the store for training. Brilliant!
Once you have them in for training, it becomes easy for Apple to transmit its way of looking at the world, which then becomes almost like a religion for new users. From that point on, you got them hocked. This is why; it is so mesmerizing for outsiders like me, not in the Apple religion, to understand why these people are ready to spend twice as much for an Apple computer then the rest of the market.
The results are there to prove that Apple has the right marketing strategy. In one of my previous post, I raised questions about Apple’s future leadership, since they had lost the technological lead. But due to Apple’s superior marketing leadership and the market share they now own, I think that Apple will be the market leader for at least the next few more years. It also means that if they ever get behind in their technological leadership, they have pricing margin to spare. In the mean time, they laugh their way to the bank.
Last quarterly results by Apple are there to prove it. They blew away the wildest estimates by a significant margin.
- Apple’s quarterly revenues were more than double Microsoft’s $20.89 billion for its most recent quarter.
- Wal-Mart, which sits atop the Fortune 500, took in $109.5 billion in sales in its most recent quarter (for the period ending Oct. 31, 2011), just two times more than Apple’s quarterly revenue (Apple is No. 35 on Fortune‘s list).
- Apple’s quarterly revenue alone of $46.3 billion is just under Bulgaria’s estimated GDP for all of 2010, $47.7 billion. The quarterly profit is just larger than Iceland’s 2010 estimated GDP, $12.59 billion.
- Apple’s quarterly earnings are just a few billion less than the net worth of the wealthiest man in the world, Mexico’s Carlos Slim Helu, and his family.
From the above chart, it is easy to see that the iPhone revenues dominate. As an example to show how dominant is Apple’s share of mine, my daughter phoned me the other day to tell me she had just acquired a new iPhone and she did not like it. It begs the question, why did you buy it? It’s fashionable! Most people have one! That’s powerful!
Since Apple is so dominant, we plan on posting Apple blogs on this site in the coming weeks. Since I am not an Apple use, I have a friend who is and will post Apple blogs. Any of our Apple readers is welcomed to submit posts.