Apple History
Apple Inc. is among the most expensive and influential in the world of technology today and has branded itself as a preferred technological gadget, such as computers and phones. The company was founded in 1976 by two college dropouts, Steve Job and Wozniak, who had a vision of making computers smaller and more accessible to be more efficient for consumers (Yie et al., 2021).
Apple’s first computer was called the Apple I, which gained popularity and laid the groundwork for the duo’s subsequent creation of the Apple II. The color graphics and user-friendly interface of the Apple II, which was released in 1977, set it apart from other computers of the time and made it a commercial success. Apple continued to innovate despite intense competition from IBM and Microsoft in the 1980s. In 1984, Mac presented the Mac, a notable PC with a graphical UI (GUI) and a mouse. The Mac altered the PC business and became a symbol of development and planning (Kim et al., 2021). Under Positions’ administration, Apple pulled together its endeavors to make creative items flawlessly and with mixed innovation for market success.
The iTunes Store, which revolutionized the music industry by providing legal digital music downloads, was made possible by the iPod’s success. With the introduction of the iPhone in 2007, Apple made a ground-breaking entry into the mobile phone market (Aliekperov, 2019). New standards for smartphones were established by the iPhone’s sleek design, user-friendly interface, and multi-touch technology. It immediately turned into a social peculiarity and pushed Apple higher than ever.
With the introduction of the iPad in 2010, Apple redefined the tablet market by building on the success of the iPhone. The iPad’s portability, functionality, and ease of use made it extremely popular with consumers and professionals. Today, Apple keeps pushing the limits of innovation with developments, such as the Apple Watch, AirPods, and the HomePod intelligent speaker. iOS and macOS operating systems offer seamless device integration and a unified user experience. The following section presents the financial growth of the company over the years.
Revenue Growth of Apple
Apple Inc. has encountered momentous income development throughout the long term, hardening its situation as the planet’s most significant and productive organization. Beginning in the mid-2000s, Apple set out on a progression of game-changing item dispatches that powered its income development. According to Pomykalski (2019), from 2002 to 2005, Apple’s income more than quadrupled, developing from $5.36 billion to $21.63 billion.
However, Apple’s revenue soared to new heights with the release of the iPhone in 2007. The iPhone was a game-changer in the smartphone market because it combined cutting-edge technology with a sleek design and easy-to-use interface. Apple’s income took off, reaching $24.57 billion in 2008 and surpassing $65.23 billion by 2010 (Al Mheiri et al., 2021). The growth of the company continued with increased consumer usage of mobile phones.
In the resulting years, Mac proceeded with its dash of noteworthy income development with the presentation of the iPad in 2010 and ensuing item deliveries. The iPad significantly improved Apple’s financial performance and helped it develop into another highly successful product line. According to Al Mheiri et al. (2021), Apple’s revenue exceeded $156.5 billion in 2012 and continued to rise. Apple reported record-breaking revenue of $274.52 billion for its fiscal year 2020, a 5.5% increase from the previous year (Li, 2021). Despite the difficulties posed by the COVID-19 pandemic, Apple quickly adjusted and discovered new ways to engage customers, resulting in substantial financial performance. Apple’s market cap is US$ 2.448 trillion, in addition to being considered one of the most valuable brands in the world, worth about US$ 947 billion, a growth of 55% compared to 2021 (Abdukarimova, 2021). The company is expected to continue increasing its revenue with an increased market cap.
Apple Counterpart Position
Despite Apple’s growth and revenue, it has a counterpart position in consumerism. Even though Apple Inc. has witnessed financial success and a loyal customer base, the company’s operations have been subject to controversy. Consumption, or the culture centered on constantly upgrading and replacing products, is one of the negative aspects frequently associated with Apple (Aliekperov, 2019). Apple’s consumerism can be seen as a double-edged sword because it boosts revenue while harming the environment and consumers’ well-being.
Apple’s practice of planned obsolescence is cited as one of the main criticisms. Planned obsolescence is designing and producing products with short lifespans or features deliberately made obsolete to encourage customers to upgrade to newer models by releasing software updates that slow down older devices or making repairs and upgrades difficult or costly. And according to Taffel (2023), Apple has been accused of employing this strategy. Customers who feel compelled to purchase new devices may become frustrated due to this strategy, which can contribute to a cycle of excessive consumption.
According to Malinauskaite and Erdem’s (2021) study, consumers are exposed to better features in a few intervals and are urged to keep buying the new upgrades. Some consumers may experience financial stress and debt due to constantly pursuing new Apple products. Tuominen (2021) also noted the issue of electronic waste associated with such consumerism. Planned obsolescence is a big issue, especially for Apple, as they also plan to control the mobile industry and thus face some critics that affect its consumer base.
The environmental impact of producing, using, and disposing of Apple’s products is another negative effect of consumerism on Apple’s operations. According to Awasthi et al. (2019), extracting unrefined components, producing cycles, and transportation add to fossil fuel byproducts and ecological exploitation. Also, Naim (2021b) noted that removing electronic waste poses enormous natural difficulties, as hazardous materials present in electronic gadgets can pollute soil and water sources while perhaps not appropriately made due.
By switching to renewable energy, reducing packaging waste, and implementing recycling programs, the business has attempted to enhance its operations’ environmental sustainability (Aliekperov, 2019). It has additionally presented drives like the Apple Exchange program, empowering clients to reuse their old gadgets and giving impetuses to acquiring new ones. However, Naim (2021a) and Edeh et al. (2021) contend that more than these measures may be needed to mitigate the adverse effects of Apple’s revenue growth driven by consumerism. The company needs to do more to promise a sustainable model of production, which affects their consumer’s preferences and could be worse in the coming future.
Apple’s revenue growth prospects are negatively impacted by consumerism in its operations. Apple is viewed as a symbol of excessive consumption due to its planned obsolescence, rapid technological advancement, and associated environmental and social consequences. While Apple has attempted to address these worries, the inborn idea of the consumer innovation industry and the organization’s income-driven approach have made it try to relieve the adverse consequences of commercialization.
References
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