Apple has been so successful in these last
years thanks to his fresh, imaginative way to
think and do its business: a winning combination
of exceptional products, great style and design,
great strategy, innovative marketing, sleek
and enticing communications.
Apple owes its overwhelming success in the last
years to the iPhone and to the smart iPod and
iTunes product combination, a combination of
a great hardware piece with great style, great
software, great performance, user friendly interface,
with a good e-business service. The iPod + iTunes
halo effect and new great Mac computers and
Mac OS software did the rest in increasing Apple
In the 5 years between 2003 to 2008 the Apple
share value increased 25 times, from $7.5 to
$180 per share. At july 2008 prices, before
the US Financial Crisis, Apple stock market
capitalization was $160 billion.
In January 2010 Apple shares topped the $210
But even the best companies with the best products
have bottleneck factors which often avoid full
exploitation of the opportunities.
Few people are aware - and few market analysts
too - that for the first 3 years the iPod was
an absolute flop. The iPod was launched in october
2001, and between 2001 and 2004 iPod sales were
between 100-200 thousand units per quarter,
very far from today's 10-20 million units per
quarter, and the iPod sales were not even covering
the product research & development costs.
Then, in June-Aug 2004 something happened, and
iPod sales began to grow strongly, quarter after
quarter. Today, we all know where the iPod stands,
and what a remarkable success it is.
The iPod made the fortune of Apple, and it stands
out as the major turning point in the company
Few people know that the iPod + iTunes business
idea was not conceived inside Apple, but was
proposed to Apple by an outside source, a music
lover and Engineer named Tony Fadell.
More on Tony Fadell and on the iPod marketing
The iPod marks another outstanding result in
the annihilation of competitors. To know more
see the analysis on
It should be noted that, since the second generation
of iPods in 2002, the iPods were made compatible
not only with the Mac operating systems but
with Microsoft Windows operating systems as
We should ask ourselves (and to Steve Jobs):
how many iPods would have been sold if the iPods
would had been compatible only with Mac operating
the iPod is manufactured and assembled
The pipeline of new products which came out
from Apple in the last years is impressive,
and overwhelming. In 2007, with the successful
launch of the iPhone, Apple has marked another
milestone in its development and growth.
And moreover, the iPhone enters a market - the
market of mobile phones - a market which is
mature, and saturated. Nonetheless, Apple has
been able to develop a revolutionary product,
and to change the paradigm in the mobile phone
The iPhone is 5 years ahead of all its competitors.
A wonderful product, amazing user interface,
great design. It is not only a mobile phone,
it is a product between a mobile phone and a
laptop computer. Even calling it a smartphone
is not enough.
In July 2008 Apple launched the second generation
iPhone, the iPhone 3G.
The iPhone 3GS.
In June 2009 Apple launched its
third generation iPhone: the iPhone
The iPhone 3GS has a 3 megapixel autofocus camera,
video recording and editing capabilities, voice
control, longer battery life, 7.2 Mbps HSDPA
internet connection. iPhone 3GS is twice faster
than the iPhone 3G. The iPhone 3GS prices: $199
for the 16GB model, $299 for the 32GB model.
more on the new iPhone 3GS on the iPhone
More on iPhone Marketing on the iPhone
Marketing Strategy page.
Apple did great. no doubt. However Apple has
done some serious mistakes.
The most serious mistakes Apple has done concern
marketing and distribution strategies in Europe.
Apple has overlooked the European markets, and
missing big numbers in unexploited sales. With
better marketing strategy, better communication
and distribution, Apple could have made 300%
more revenues in Europe in the last 4 years.
Marketing in Europe
We met with with Erik Stannow, Apple Vice President
of Marketing for Europe & EMEA. We have
been talking with Erik Stannow about the marketing
and distribution issues of Apple in the European
markets and we gave some valuable suggestions
to improve the Apple marketing strategy and
distribution in Europe.
Well, it seems that in Cupertino they don't
care so much about Europe.
If we talk about Apple success, about Apple
great products, we need to talk about Steve
Jobs. Steve Jobs has been and is the great mind
behind all this.
Steve Jobs is a genius, he is a magician, too.
He is the most skilled guy in introducing new
products - "... one more thing" -
the most skilled in presenting the key features,
and he is a great communicator.
Even more important, Steve Jobs has Vision.
Vision in the strategy, Vision in the product
development, Vision in the alliances.
Apple communication is sober, intriguing, simple,
clear, minimalist and clever. And it has a style
of its own. Both in the tv ads, both in print
ads, both in the online communications. A lesson
to be learned by many companies in the world.
Well, of course when you have great products
it is much easier to entice the costumers, but
nevertheless doing it with style and cleverness
is a very good point. It boosts sales, but enhances
the brand value too.
The famous "I am a Mac, I am a PC"
tv ads are a milestone in communications. Smart,
simple, effective and humiliating (for Microsoft
More on Apple Communications and on the Apple
Commercials "I am a Mac I am a PC"
on the Apple
Communication Strategy page.
Vertygo Team Ranking
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on the Google Search Engine.
Vertygo Team ranks on Google as:
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Nr.1 with the keywords
iPhone Marketing Strategy
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More on Vertygo
Team Ranking on Google
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vote using numbers from 1 to 10:
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leave the space blank.
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The Who Video
The Who video playing at the top of the page
is "Pinball Wizard", from the Dvd
"The Who - Live at the Isle of Wight"
is an historical video filmed at the Isle of
Wight Music Festival in 1970. We encourage every
rock music lover to purchase this wonderful
Dvd: in the Dvd the Who play My Generation,
Magic Bus and an ample selection from the Rock
opera "Tommy" it's a masterpiece in
the history of Rock. You can find it on Amazon.com.
Apple Video excerpts and Apple products images
courtesy of Apple Inc. The Apple logo is a trademark
of Apple Inc. here used for illustration only.
Jean Genie song written by David Bowie is played
by Too Many Monkeys.
The Who video copyright © 1996 Pulsar Productions
The short Who video is included in this page
with the purpose of promoting the great music
of the Who and to spread the knowledge of the
Dvd "The Who Live at the Isle of Wight".
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