Apple is the largest IT company in the world by revenue. It is a more than 40 years old company and one of the biggest brands in the world. Apple Inc deals in electronics, online services, and software. In 2022 Apple has become a $3 trillion company. But what led Apple to achieve this success? What are the Apple Competitive Advantages?
Apple’s position in the world market could be easily assessed by its $3 trillion valuation. As compared to its competitors, Apple has a huge brand name. Additionally, Apple is believed to work two steps ahead of its competitors. It always comes with the latest technological innovations to put the competitors on the back foot. Secondly, it also has a trusted user base.
An Overview of Apple Inc
Apple Inc is the world’s second-largest manufacturer of mobile phones and the fourth-largest vendor of computers. The revenue of Apple as of 2021 is US$365.82 billion. It has more than 500 stores in the world. It is among the top five Information Technologies in the USA that is- Apple, Amazon, Alphabet, Microsoft, and Meta. Additionally, Apple is the world’s highest-valued company. But what took Apple to this position?
Apple’s Competitive Advantages
Competitive advantages are the factors that make an organization different from others. These are the strengths of a company that its competitors don’t have. These advantages or strengths make the company win in a competition. Apple’s competitive advantages are-
- Identity as a brand
- Innovative edge over competitors
- Wide product range
- Customer loyalty
- Pricing of merchandise
Now let us know these competitive advantages in detail-
Apple’s Identity as a brand
Over the years Apple Inc has created a huge brand image in the global market. People trust the name ‘Apple’. Its iPhone, iPad, Mac, smartwatches, etc. are all popular and trusted electronics among the users. Apple is known for bringing the newest inventions and technologies into the market. Hence, the invention has become the identity of the brand.
Apple electronics are considered luxurious gadgets. In the USA, the maximum population uses Apple’s cellular device which is the iPhone. Every new model of the gadgets Apple launches is sold by the brand name only. Apple’s identity as a brand is on top compared to its competitors. This is the reason why Apple’s valuation is so high.
Innovative edge over competitors
One of the reasons why Apple is so popular and valued in the market is its continuous launch of updated gadgets. It is said that Apple always remains two steps ahead of its competitors in terms of innovations.
To continuously launch the latest technologies in the market, Apple remains very particular about its research and development department. Apple is among the companies that spent a high amount on R&D. In 2021, Apple invested US$21.9 billion in R&D.
Apple stands out from other competitors due to the innovations it makes. In 2022 also Apple is planning to launch the new model of the iPhone and new computer chips. It may also launch AR glasses which is one of the ambitious projects of the company.
Product range
Apple is no more limited to iPhones, iPad, and computers now. It has extended the range of products in past times. Already a popular brand, Apple has grown even bigger by bringing variety in the range of products. Now apple also sells watches, TV, MacBook, Mac mini, and other product.
Customer loyalty
One of the major competitive advantages of Apple is its brand loyalty. Apple has got a whole loyal customer base. Despite high pricing and inter compatibility. It is normally believed that iPhone users generally do not wish to switch to android, windows, or any other operating system. Additionally, Apple users prefer to keep all their major gadgets of the same brand that is Apple. That is why Apple’s customers always come back to them. This customer loyalty took Apple to heights.
Pricing of merchandise
Apple products have premium pricing. It is the costliest gadget supping firm in the market. But instead of a limited customer base due to high prices, it has a huge customer base. This is because the premium pricing strategy ensures the quality and uniqueness of the product. Hence, the premium pricing strategy is not a disadvantage but a competitive advantage for Apple.
Conclusion
Apple is the leading IT company in the world. Despite its premium pricing, it is the largest IT company by revenue. It is because of the competitive advantages Apple has. Its brand identity and innovations are the biggest plus point for the company. The name Apple has earned, the quality that Apple offers is considered the best among all the companies in the sector.
FAQ
- What is the total valuation of Apple’s assets as on the 2021 balance sheet?
Answer: As of 2021, Apple’s total asset costs $351.02 billion US dollars.
- What is Apple’s rank in Fortune 500?
Answer: According to the Fortune 500 list of June 2021, Apple’s rank is 3rd in the world.
