Apple’s smartphone market strategy is key to its continued success

In the second quarter of 2020, Apple It was the third largest smartphone supplier in the world, with 13.5% of the global smartphone market, slightly above the first quarter. Today, Apple is a follower, not a leader in that market. The company follows a strategy of anticipating customer needs and wants and producing high-quality products to satisfy them. Stay close to customers and provide useful and fun products and services for customers.

Apple’s smartphone strategy
Steve Jobs’ Apple produced the Macintosh computer in 1984 for use by ordinary people, not experts. Later, Apple ousted Jobs and developed the Newton in 1993, an outstanding PDA ahead of its time. I have two working Newtons, which could have announced the iPad years earlier if they continued.

When Jobs returned to Apple, he removed many irrelevant products, focused on Apple, and began Apple’s revival with the iPod in 2001. And in one of the biggest product launches ever, Steve Jobs launched the iPhone at Macworld on January 9, 2007.

Then came the iPad in 2010, and perhaps the biggest addition to the healthcare device market, the Apple Watch in 2014. Meanwhile, Apple continues to introduce laptops, desktops, and is working on a self-driving car.

Apple was undoubtedly a leader in the smartphone market before. So effective were the early days of the iPhone, Blackberry (To form Research in motion) did not recognize the power of the iPhone and later Blackberry went bankrupt after dominating the smartphone business market.

Where we are today Apple is a follower in the smartphone market, a strategy it seems to have adopted. This approach seems to be working. Although you are making big profits from your services, smart watch, and other products, the iPhone will be a centerpiece of your business for some time to come. So what should you do to stay competitive in the highly competitive smartphone market?

Differentiate yourself in the smartphone market

1. Stay close to customers and don’t follow Samsung or other leaders. Apple must foresee needs and wants of customers and provide products to satisfy them. Following Samsung or other smartphone leaders means that Apple would use their assumptions and market intelligence, which may or may not be good in the long run. Strategy is about options: what to do and what not to do. Apple must choose the markets it will enter and the markets it will exist in, always with a long-term vision.
2. Provide superior customer service, but put employees ahead of customers. Empower employees, empower them, avoid bureaucracy, treat them well and fairly. Adopt South west Y FedEx ‘ Getting closer: Employees first, customers second, shareholders third. When we treat employees well, employees will provide exemplary service to customers. It’s about customers!
3. Stay within core competencies and focus the company’s resources in those areas of competence. Is the adventure in the autonomous vehicle market a distraction? Before the return of Steve Jobs in 1997, Apple diversified in many areas and was on the verge of bankruptcy. Steve refocused the companies to a few products in their areas of expertise. With so much cash at its disposal, it could tempt Apple to shy away from its powers. Money should never lead decisions! Money is the source of funding for decisions, nothing more. This is a crucial consideration for companies like Apple, with excess cash. Apple should not diversify because it “can” and distract from its competencies. It must diversify because it “should”.

The smartphone has become a commodity and it will be difficult to create a niche market. Chasing a The product differentiation strategy is the only viable approach to remain competitive.. Having a faster iPhone that takes better photos will not be enough. Apple must transform the iPhone to perform functions that we cannot imagine today, otherwise a commodified iPhone will become a lower-margin product, diminishing market share with other smartphones.