Apple Inc. Strategic Marketing Analysis and Evaluation

Keywords: Apple Inc., Analysis, Marketing Strategy, Opportunity
 
1. INTRODUCTION 
Apple Inc, founded in California on Jan. 3, 1977 as 
Apple Computer, Inc, with its present name adopted on 
Jan. 11, 2007, is a technological company that primarily 
operates in the computer hardware industry, and its 
primary SIC is radio & TV communications equipment. 
Apple launched its first product ‘Apple 1 computer’ in 
1976. Since then, Apple has grown exponentially in 
terms of products and services. Today, one of the most 
successful products of Apple is the ‘iPhone’. In the 
fiscal year 2020, iPhone sales of $137 Billion 
represented half (50%) of apple’s overall revenue of 
$274 Billion. Apple is benefiting from continued 
momentum in the Services segment, driven by a robust 
performance of App Store, Apple Music, video, and 
cloud services. Moreover, demand remains healthy for 
Apple’s product portfolio including iPad, iMac, and 
Wearables. Apple’s short-term prospects are bright, 
driven by new iPhones that support 5G, revamped iPad 
and Mac line-up of devices, health-focused Apple 
Watch 6, and robust growth in the Services business. By 
looking at a solid balance sheet and strong cash flow 
statement, Apple’s ability to generate profit is above the 
average level in the industry. However, increasing 
scrutiny and legal issues have brought impact on the 
company performance. Following the Yiran Meng’s 
Valuation on Apple Inc [1] and based on the results 
generated by the valuation models and financial 
indicators, the recommendation for the customers is to 
buy or hold shares of Apple. In addition, the author also 
suggests that the company should consider the increase 
of dividends when there is a shortage of good 
investment opportunities. 
Analysts of the MarketLine research report [2] 
believes that Apple’s distribution channels, R&D, and 
revenue growth are the major strengths of the company, 
whereas lawsuit and declining profitability remain as 
concerns. Smartphones market in North America, 
strategic initiatives, stores expansion, new product 
launches, and strategic acquisitions are likely to offer 
growth opportunities for the company. However, 
foreign exchange risks, intense competition, dependence 
on network providers, and technological changes could 
impact its business operations. Faizul Haque [3] in The 
Advances in Economics, Business and Management Research, volume 203