How Apple sells its products

By abendykowskaUncategorised

Apple business model is a great case study for every entrepreneur as it is an unique example of strategy polished in every detail. Some can say that a good product sells itself. There is no doubt that Apple offers innovative, high quality and unique consumer electronics, computer software and online services. Products are definitely the backbone of the company’s success but all remaining parts of business strategy equally made Apple the world’s most valuable brand, with a value of $182.8 billion in 2017 (Forbes, 2018). One of it parts is how the company sells products.

First Apple computers were sold thanks to cooperation with Byte Shop in Mountain View (Macworld, 2017). The computer shop agreed to buy 50 computers from Apple for 500 USD each. As the result the first Apple products were sold, namely, through retailer. Currently among the main company sales channels are also cellular carriers, wholesalers, retailers and value-added resellers (Reuters, 2018). All of Apple resellers have to accept Apple retail strategy called “minimum advertised price” (MarketRealist, 2014). They are not allowed to sell manufacturer products below specified minimum price. Nearly 80% of iPhones in USA are sold at carrier stores (CIRP, 2017). Most of iPads are also sold by Best Buy (one of Apple retailers) and carriers.

Apple sells products also through its own retail stores and online stores. Additionally the company sells a wide range of complementary products (digital content and applications) through iTunes Store, App Store, Mac App Store, television APP Store, iBooks Store and Apple Music (Reuters, 2018). Apple put on direct sales for the first time in 1997 by creating an online shop (Maschable, 2014). Currently the company retail chain consists also of 501 stores worldwide, including 272 stores in the USA and 229 stores in other 21 countries (eMarketRetail, 2018). The purchases in Apple stores are made mostly during a new product launch or when the company promotes computers purchasing before a new school year (CIRP, 2017).

First Apple retail stores were opened in 2001 in the USA, in Virginia and California states at the same time (Macworld, 2017). The characteristic design elements of nowadays store were already present: good lighting, wood, brushed steel, crystal white glass, bar-height tables and white, kidney-shaped platforms. From the very beginning the stores not only offered the possibility to buy Apple products directly but also possibility to experiment with Apple hardware and software in the store and a computer service for free (or inexpensive). Apple develop and continue its innovative retail strategy nowadays.

The recent company project is free educating programmes called ‘Today at Apple’, which focus on the features of Apple products (Apple, 2017). Programs will be available across all skill levels and ages in most of stores. For example, beginners can attend iPhone photography courses to learn cover shooting, organizing and editing, whereas more advanced users can benefit of Photo Walks that focus on light and shadow, portraits and storytelling (Forbes, 2017). The company is not only targeting individual users but also small businesses by offering them lessons about technology which helps to develop business. The program bring in some design and
technological improvements to about 100 stores i.e. conference and meeting rooms, new video screens, living trees (Theverge, 2017).

Apple website and online store are designed in the same way as stationary shops – they are modern and simple, making customer focused on products. They are presented by using big, high quality photos on a white background. The information about products and services is short and well presented, everything is easy to find.

Apple selling strategy was very unique from the beginning because it didn’t include own retail channel for a long time. Also today it does not play the main role in sales. The main purpose of Apple retail and online shops is to share the brand vision and experience. It means that the company often do not control the last part of purchase experience. Still it participates in helping customers to gain information about products or first experience with them as popularity of Apple stores increases each year. To sum up, Apple masters also the way it sales as company sales volume grows constantly.

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