They’ve done it. Everyone knew the day would one day come, and there wasn’t much doubt that any other company would have been better suited to take out the title.
Apple made history last week by becoming the first American company to hit a market valuation of one trillion USD.
This milestone, among a few other factors, ultimately hinges on the success of the iPhone, the passion project of Apple’s late Founder and CEO Steve Jobs. In 2016 Apple sold the one billionth iPhone, and despite critics shouting from the hills that nobody would pay more than $1000 for the iPhone X, two years later they sure did. Apple’s sales took a strong upward turn soon after.
While many have poked holes in the progression of Apple’s technology – and questioning if anything will soon be released to surpass the iPhone – much of Apple’s future revenue will be derived from increasingly popular services like iCloud, Apple Pay and Apple Care. For how long Cook and his minions will hold the top spot, though, is debatable.
A few clever strategies at play
So they’ve hit the trillion dollar mark, but why them? Skilful marketing, for one. When all of Apple’s competitors were accentuating the features of their technology, Apple zeroed in on the lifestyle paired with owning their products. You were either with them or against them. Hence the scramble we’ve seen these past 12 months from Samsung.
The ability to control and channel distribution is also a huge asset, not to mention how hard it is for vendors to become an authorised seller. Having such a tight grip on their availability enforces trust and credibility. Their pricing is also consistent around the world, which helps considerably.
The restrictions and verifications placed on their software and third-party interference supplement a company backbone built on privacy for, and protection of, the user. Remember when the FBI asked Apple to essentially give them the ‘master key’ for a mass shooting suspect’s locked iPhone a few years back? Yeah, well they didn’t do it.
By taking privacy so seriously, especially given how much they charge for data storage in the present day, they’ve established a relationship with the consumer built on trust from day one. Their products are also cleaner and sexier than their competitors, not to mention that every other brand has been playing catch up to the iPhone since ’07, so loyal fans aren’t likely to be swayed.
A bit of luck?
Apple’s quest to reach the milestone of America’s ‘first trillion dollar company’ briefly looked like it could have become a neck and neck race in recent months, with Amazon edging closer off the back of a successful start to the year. However, given that the two companies aren’t direct competitors it would have been a race for publicity more than anything else.
For a company that literally started out in a garage as part of a little nerd party between friends Steve Jobs & Steve Wozinak, the achievement is quite the impressive feat. From their first computer – the Apple I, which sold for $899 at the time – to the first iPhone in 2007, Apple Technologies was doing everything that everyone wasn’t. Despite the loss of Jobs to a four year battle with cancer in 2011, Apple has continued its success under the guidance of Tim Cook right up to the present, with only a few hiccups in its road to success so far.
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