Introduction
Technological revolutions have led to the development of sophisticated communication gadgets, including mobile phones. Apple Inc. is one of the tech companies that have maximized their resources in the production of communication products. Apple iPhone is a handheld mobile phone that has attracted millions of people globally.
While Apple Inc. continues to improve its products, economic conditions determine the targeted market purchasing power. Consequently, the company has adopted digital marketing approaches to convince its clients that the Apple iPhone is worth purchasing, given its unique features from competitors. Apple iPhone has impacted formal and informal institutions globally due to its superior features and the need to integrate technology into routine organizational operations.
Company Summary
Apple Inc. is one of the few multinational corporations that have built its brand image and reputation over time. The company is majorly focused on innovation and product quality, attracting clients all over the world. In many countries, Apple Inc. is a recognizable brand that is associated with people in high social classes. Consequently, the organization has gained popularity and excellent consumer-based brand equity (Mariah & Nur, 2022).
The company has been ranked as the largest technology firm by revenue. In the financial year 2021, Apple Inc. recorded revenue totaling $ 365.8 billion (Apple Newsroom, 2021). Additionally, the organization is the second-largest mobile phone manufacturer and the fourth-largest personal computer vendor in the world (Lu et al., 2022). Therefore, Apple Inc. remains a major force in the global tech industry.
Apple Inc.’s success is owed to its founders, who were determined to revolutionize communication technology through innovation and quality. The company was founded on April 1, 1976, by Steve Wozniak, Steve Jobs, and Ronald Wayne (Yan et al., 2022). During its foundation, Apple Inc. focused on developing and selling Wozniak’s Apple I personal computer. Apple Company was incorporated in 1977, becoming Apple Computer Inc. (Mariah & Nur, 2022). Its Apple II computer was the best-selling microcomputer in 1977 (Lu et al., 2022). The firm went public in 1980 to maximize its financial capital that was needed for further product innovation and organizational expansion. Therefore, Apple Inc. improved its products and developed new ones, such as the Apple Macintosh, owing to its stable financial capital.
Apple Inc. faced major challenges with its products in the 1990s, forcing the discontinuation of the Apple II series. The company’s major setback was production costs, which were high, leading to higher product prices than those of its competitors. Consequently, organizations such as Microsoft gained a larger market share than Apple Inc. However, the firm restructured its supply chain while maximizing its brand to bounce back in the market. In the early 2000s, the company regained its profitability. In 2007, Apple Inc. made a hallmark by announcing its first mobile device, the Apple iPhone (Yan et al., 2022). The product rapidly gained popularity and recorded an amazing 270,000 sales in the first 30 hours of the sale (Yan et al., 2022). Apple Inc. has continued maintaining product quality, which has led to its expansion and excellent brand reputation.
Product Summary: Apple iPhone
Information technology has been revolutionized by the advent of mobile phones, which allow wireless communication. The advent of handheld devices has allowed people to communicate and interact on various social media platforms such as Twitter, Facebook, Instagram, and LinkedIn, among others. Apple iPhone is one of the most desired mobile phones due to its superior features to other devices. The phone’s first generation was announced on January 9, 2007 (Lu et al., 2022). The device utilizes its operating system, iOS, which is routinely updated to fit the changing mobile phone technology (Yan et al., 2022). Apple Inc. prides itself on the production of the Apple iPhone, which has unique technology and advanced graphics for the user interface.
Unlike other mobile devices, Apple iPhone has been recording increasing sales annually. Since its announcement, the gadget has recorded a total sale of more than 2.2 billion (Yan et al., 2022). Moreover, in the year 2022, the Apple iPhone accounted for 15.6% of the global smartphone market share (Gao et al., 2022). Apple Inc.’s commitment to designing the most sophisticated yet powerful smartphone can be attributed to its historical development. The company started developing the gadget in 2004 by recruiting the most competent hardware and software engineers (Lu et al., 2022). Moreover, reputable design officers such as Sir Jonathan Paul Ive were engaged in the Apple iPhone development project. The organization’s effort would later be seen in the announcement of the Apple iPhone 4 series.
Apple Inc., since it announced the Apple iPhone 4 series, has continued updating the phone’s features. In October 2011, the company launched the iPhone 4S, which had a virtual assistant, Siri (Yan et al., 2022). The series featured a dual-core A5 processor and an 8-megapixel camera with 1080p video recording functionality. The company continued improving its products, and in 2017, it launched the iPhone 8, 8 Plus, and iPhone X. In 2018, the iPhone X.R., iPhone X.S., and XS Max were announced, all featuring a “Smart HDR” computational photography system and a more powerful “Neural Engine” than the previous series (Apple Newsroom, 2018). The series was further developed until the recent series, iPhone 14, 14 Plus, 14 Pro, and 14 Pro Max, were launched in 2022. The latest Apple iPhone series has satellite phone emergency calling functionality with better screen resolution and sizes. Apple iPhone remains one of the most powerful gadgets in the modern world of technology.
Economic Conditions Summary
The sale and sustainability of the Apple iPhone are anchored on various economic conditions’ key indicators. Gross Domestic Product (GDP), employment indicators, Consumer Price Index (CPI), and Purchasing Manager’s Index (PMI) can be considered when analyzing Apple iPhone’s global economic condition (Gao et al., 2022). The global GDP has been recording positive changes over the last few years, indicating economic growth in many countries. For instance, the 2021 global GDP had an 8.99% increase from that of 2020. Increased GDP is associated with conducive economic conditions that allow individuals to afford expensive products such as iPhones. Therefore, the existing GDP growth rates indicate a possible increase in the market for Apple iPhones in the future.
People need employment opportunities to afford their basic and luxurious needs. Apple Inc. has maximized its existing market in developed nations such as the U.S., the U.K., and some Asian countries (Gao et al., 2022). The targeted countries have favorable employment conditions with low rates of unemployment. For instance, in January 2023, the U.S. had an unemployment rate of only 3.4% (Cox, 2023). The low rates indicate that the major iPhones’ target market can afford the gadget and upgrade to the newest series launched. As the global economy improves, the major Apple iPhone countries are likely to have even higher employment rates, increasing the product market.
Consumer behavior is a significant determinant of a product’s sales performance in a given country. CPI involves measuring the overall change in consumer prices based on a representative basket of goods and services over time (Chen, 2022). The index allows one to determine the average amount spent by households on goods and services over a given duration. The recent increase in living costs has led to increased household expenditures. Consequently, many households can afford expensive products such as iPhones. Additionally, many countries have adopted monetary policies that increase household purchasing power and, consequently, high CPI. Therefore, recent improvements in economic conditions and consequent high purchasing power present an optimistic Apple iPhone’s future.
Economic trends in the manufacturing and service industry can be used to determine economic direction. PMI involves the diffusion index, which summarizes whether market conditions are expanding, staying the same, or contracting (Chen, 2022). The composite global PMI increased to 49.80 points in January 2023 from 48.20 points in December 2022 (Shan, 2023). Although a PMI of over 50 indicates positive economic growth, the current PMI points show a possible improvement in the economy shortly. Consequently, companies such as Apple Inc. will enjoy the ready market for their products, including the iPhone. The economic condition surrounding the Apple iPhone can be described as positive based on GDP, PMI points, CPI, and improved employment factors.
Apple iPhone Launch’s Impact on Formal and Informal Institutions
The launching of the Apple iPhone can be affected by the formal and informal institutions of a given society. Formal institutions include laws, regulations, and various policies that have been formulated by government agencies such as Congress and other business regulatory bodies. The laws and regulations affect the Apple iPhone launch in many dimensions, making the product legal. For instance, the gadget launch must comply with the laws relating to wireless technology, which includes respect for information privacy (Dau et al., 2022). Moreover, the product must not be used to propagate illegal cybercrimes. Furthermore, Apple Inc. must ensure that the mobile phone is patented to avoid unexpected legal claims. The formal institutions ensure that the iPhone launch is consistent with the existing laws and legislation.
Every society has a set of norms and values that its people believe in and ought to guide their routine decision-making. The informal institutions include norms, values, and social beliefs and can influence a product launch’s success (Dau et al., 2022). Brands such as Apple Inc. conduct marketing activities to positively influence informal institutions. Consequently, Apple iPhone needs to be associated with the common beliefs of a given society. The firm’s reputation for innovation and quality products has increased its consumer base. The excellent brand reputation is owed to Apple Inc.’s consistency in satisfying social beliefs. Consequently, many people are interested in Apple Inc.’s products due to its excellent brand reputation.
Marketing Approach Summary
Marketing activities are primal for product promotion and consumer-base expansion. Apple Inc. is one of the organizations that have adopted effective marketing strategies to increase their sales and boost their brand image. The marketing approach is anchored on three basic values of the company. Firstly, Apple Inc. believes that people should rely on technology to solve their problems. The Apple iPhone promotion is majorly focused on what problems the gadget solves instead of its benefits (Lu et al., 2022). Secondly, the firm adopts unique visualization and vocabulary when advertising its products. The advertisement peculiarity distinguishes Apple Inc. from its competitors, such as Samsung Inc. and Google Inc. Lastly, the Apple iPhone launch is aimed at promoting organizational-client relationships through the introduction of new products.
Apple Inc. has adopted a product mix approach for product promotion in the international market. The organization uses digital and print media to communicate the features of its Apple iPhone. The digital approach involves the use of social media platforms and mainstream media to advertise newly launched mobile phones (Mariah & Nur, 2022). Twitter, Instagram, and YouTube are the common platforms that Apple uses to promote its products. The use of social media is beneficial since it attracts billions of potential customers all over the world (Patel, 2021). Meanwhile, print media involves the use of materials such as brochures and branded items to attract potential clients. Although the company uses a market mix approach, the digital strategy has proven to be more effective than the print media.
Conclusion
Advancements in information technology have led to the advent of powerful and beneficial gadgets such as the Apple iPhone. Mobile phones allow people from different geographical locations to communicate and interact with others in various virtual activities. Apple Inc. is one of the most reputable tech companies that prides itself on the production of quality and innovative communication devices. GDP, CPI, employment factors, and PMI indicators show a favorable economic condition for Apple iPhone.
Consequently, the organization should take advantage of the positive future by producing more advanced Apple iPhones. The formal and informal institutions affect Apple iPhone’s launch in various dimensions, requiring the firm to develop legal and acceptable products for society. Apple Inc. should maximize its existing broad and loyal consumer base by adopting effective marketing approaches.
References
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