Business Strategy For Apple – A Detailed Company Analysis

Table of Contents


Image showing the products used in business strategy for apple
Source: Photo by Nana Dua

The business strategy for Apple and the business model for Apple are inspiring many businesses worldwide. Everyone is crazy about Apple products; everyone wants to own an Apple product. Nowadays, the current price of Apple stock is also soaring heights. But have you wondered why Apple is one of the topmost Tech companies in this world? Well, this article will guide you through the business model applied by Apple in their course of business over these years.

Apple Inc. is a multinational corporation that designs, manufactures, and markets mobile communication, media devices, personal computers, and portable digital music players. It is the world’s largest information technology company by revenue—the world’s largest technology corporation by total assets and the world’s second-largest mobile phone manufacturer. The company operates several retail stores located primarily in the United States, Canada, and Europe. The company was formed in January 1977 by Steve Jobs, who was then ousted from the company in 1985 and returned in 1996.

Business Strategy For Apple

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This business strategy for Apple has a strong dedication to providing the best products and services to fulfill the individual needs of each of its customers. This is why the current price of Apple stock is so high. It also directs the firm toward long-term goals, contributing to its success. The business model for Apple company is made up of these main parts;

Develop best-user experience

The first and foremost objective of Apple’s business strategy is the best user experience. The company does not compromise on the user experience. Be it iPhone or Macbook, Apple sees to it that it is user-friendly. It means the person is also able to use the product easily. If the person is also able to use the product nicely, it will increase the user experience. They will eventually try to buy more products from them. Recently, Apple launched a new privacy feature called, Nutrition labels. It also ensures that the privacy of the user is not disturbed. This has also improved the business strategy for Apple.

Create Innovative Products

The business model for Apple consists of innovative products. Apple designs products that basically fulfill the needs of its customers. Since 1976, the main aim of Apple is to create unique products that are easy to use. In the past few years, Apple’s business strategy has focused on the Healthcare sector. It has also created products like the Apple Watch. This watch also helps you to track your blood pressure, oxygen levels, step count, etc. It also has a unique feature called Apple Health Records. Thus, it allows people to access their medical data anywhere in this world.

Quality service delivery

The foremost and important business strategy for Apple is Quality service to its customers. They get obsessed with customer service. From manufacturing to sales to repairs, they monitor everything. Their main aim is to provide services that are rich in quality. This business strategy for Apple also has made Apple different and unique from its competitors. The Laptop Tech support ranked apple in the second position for its customer services. This score is basically far better than others because they offer poor customer service.

Create a global presence

The first retail store opened by Apple was on May 19, 2001. It is located at Tysons corner center, Virginia. This business strategy proved to be huge for Apple. Currently, it has more than 500 retail stores across the world. These stores are also operating in 25 countries and regions. The money it spends on its products is the main reason why people buy their products. The company also focuses on creating a global presence all across the world.

Working on Existing products

You might be thinking why does Apple doesn’t come up with new innovations. Basically, they did in the starting years of the company but later changed. The top main idea of the business strategy for Apple now is to create innovations in their existing products. That’s why you don’t see a new phone getting launched. Rather they create unique features in their iPhone. Jonathan Ive, a designer at Apple says that their main aim is to create better designs. If they are not able to do it better, they won’t do it at all.

Hiring Smart People

A lot of business focuses on careful employee selection. They consider employee talents, skills, potential, etc. But, that’s not the case with Apple company. The business strategy for Apple is slightly different from others. Steve Jobs, the founder of Apple Inc, had different visions. He believes that if you hire smart people, don’t direct them. It doesn’t make sense at all. The smart people will themselves give you smart and innovative ideas. Basically, the company will get a new way of thinking. And, eventually, the employees will get empowered.

Core Principles Of Business Model For Apple

Every company has its own goals and core principles that the company works on. Even Apple has its own principles and business strategy. In today’s world, Apple is the biggest example of how any company can create amazing products for its customers. They also have one of the largest fan bases in the world. Here are some core principles of Apple listed below.


Most Apple products get designed so that they are easy to access. Customers should not find it difficult to use them. Also, Apple comes up with unique innovations and technology. This has also created an advantage for people to use these products easily. Thus, this principle adds a lot of value to the business strategy for Apple of their company.


Apple always has this motive of providing solutions to the schools. Since 2014, they have given solutions to many schools across the U.S. It’s been a core principle of the business strategy for Apple. They also have a partnership with ConnectEd. Thus, Apple has promised to donate $100 worth of teaching and learning solutions to schools. This will basically make the lives of teachers and students easy.


Apple is currently working on Carbon neutral technology. It means by 2030, there will be no carbon footprint left. They are also working to make their products with clean energy. In 2021, they also announced the Restore fund. Basically, they’ll try to invest $200 million into forestry projects. Also, they will try to remove 1 million metric CO2 from the atmosphere. This initiative has eventually added great value to the business strategy for Apple.


Nowadays, tech companies have a lot of personal data of the users. Even Apple products store sensitive data of the users. They also ensure the data get stored safely and secured. The security features also allow them to chose with whom to share or not. Apple launched one such feature i.e FaceId feature in 2017. This ensures that data is with the person and only he can access the data.

What Products Do They Deal In Business Strategy For Apple?

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Source: Photo by Deybson Mallony

The business model for Apple is the most inspired model in this world. Apple’s business strategy is gaining a lot of attention from the world. The success rate of Apple is usually high as compared to others. They derive the majority of their income from the products they sell. People are crazy to own their products, and this has led to a huge fan base. Apple usually sells 3 types of products in the market.

Apple Hardware products

They sell a variety of hardware products. These products are basically most demanded in the markets across the world. Steve Wozniak started a hardware line in the year 1976. In 2019, Apple’s hardware products witnessed net sales of $213.9. There are many hardware products in the market. Here is the list below.

  1. iPhone- Smartphone
  2. Macbook- Personal computer
  3. iPad- Portable media player
  4. Apple Watch- A digital watch
  5. Airpods- Wireless button earphones
  6. Apple Tv- Smart Tv

Apple Software Products and online services

Apart from hardware products, there are various software products also available in the market. These products add huge value to the business strategy for Apple. You can find these products on various platforms on the internet. Apple’s Services includes platforms where customers can download applications and use them.

  1. MacOS
  2. tvOS operating systems
  3. iTunes media player
  4. Safari web browser
  5. iOS
  6. iPadOS
  7. watchOS
  8. Shazam acoustic fingerprint utility
  9. iLife and iWork creativity and productivity suites
  10. Professional applications like Final Cut Pro, Xcode, Logic Pro

How Does Apple Make Money?

Apple recorded total revenue of $365.817 billion in 2021. They have been earning a lot of money from its hardware products and other services. Because of this, Apple’s business strategy is also lifted. Apple faces huge competition from its competitors. But still, they make huge money. Let’s look at how Apple is making money in this competitive world.


Apple makes money by selling its products all across the world. This business model has proved to be a huge success for Apple. They also deal in many products. For example, iPhones, Macbook, Airpods, Apple watches, etc.

Subscription fees

You can find Apple products across all platforms in the world. Basically, to subscribe to any app or software, you need to pay a fee or charge. This fee goes directly into the hands of Apple. Developers sell their applications to Apple and they pay them a fee. This helps the company to generate money. There are many platforms like iTunes, iCloud, Apple pay, etc.

Extended Warranty fees

Apple provides extended warranty services to its users. It means if you want to extend your warranty period, you have to pay a fee. This fee turns out to be a source of income for the company. Apple sells its products and services in major markets across the globe. Apple also sells a variety of products to the third party. This business strategy has proved to be massive for Apple.

Cash Flow Analysis Of Apple

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In the first quarter of 2020, Apple sold approximately 36.7 million smartphones worldwide. Apple makes a lot of money every year apart from its cash flow. But ever wondered what the Cash flow of Apple’s business model is? Cash flow basically means how much money is coming and going out of the business. The cash flow of Apple in the quarter ending September 30, 2021, was $92.953. There was an increase of 26.7% from 2020. Whereas in 2020, it was $73.365. This caused an increase of 24.57% from 2019. That is more than any other brand like Amazon, Facebook, etc. The majority of cash flow is derived free which is more than Microsoft.

Profit Distribution In Apple Company

Apple poses a net income of $21.7 billion on the revenue of $81.4 billion in the Q3 of 2021. Many people think Apple has the majority of its sales from the iPhone. But, reality differs a bit. Although the majority is from iPhone, even other products have a major contribution. Among its products, iPhone has a major share of 49%. This is followed by Macs (10%), iPads 9%, and other accessories at 10%. This makes iPhone take all the credit for its revenue. As compared to other brands, Apple recorded sales worth $229.2 million.

There are also other products of Apple that generate revenue for the company. This includes Apple Watches, AirPods, smart tv, Macbooks, etc. They also contribute to the profits of the company. As of 2020, iPads owned a market share of 36.5%. This is surprising to know that in 2018, 31 Macbooks were sold per minute. In 2019, the Apple app store offered 3 million apps and 3,000 up games.

Although the U.S has captured most of the market share, Asia is also rapidly growing. In Q3 2021, markets of China, Japan, and the Asia Pacific recorded 36% of operating income. Due to this, the Asian market is becoming more important than the European market for Apple.

Current Price Of Apple Stock

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Source: Photo by Anna Nekrashevich

The market condition decides whether a stock will go up or fall down. Even the current price of Apple stock is moving high year after year. At the IPO of Apple, The shares were offered at $14 each. The current price of Apple stock dated January 21, 2022, is 162.41 dollars. After the great depression, the current price of stock started moving in upward. During the covid crisis, the stock was moving slowly. But, in December 2020, the current price of Apple stock at that time just went up. Using that figure, an investment of $1,000 in Apple back in 1980 would yield close to $272,000 today. Using that figure, an investment of $1,000 in Apple back in 1980 would yield close to $272,000 today. Wasn’t that a good deal?

Financial Figures Of Apple's Business Strategy

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Source: Photo by Anna Nekrashevich

The financial numbers of Apple company are pretty good. When we talk about Apple, its revenue is greater than that of other companies in the world. The Business Strategy for Apple works best in all modes. The total revenue of Apple in the year 2021 was recorded at $365.817 billion. Whereas the operating income was recorded at $108.949 billion. However, the net income was obtained at $94.68 billion. When we talk about the Balance sheet, in 2021, total assets were recorded at $351.002 billion. Thus, total liabilities are recorded at $287.912. This will increase in the next year also if the business strategy of Apple is followed.


Well, this article states about different business strategies for Apple. It also discusses the core principles of Apple’s business model. They basically also deal in different products and services. It also describes the strategy as to how Apple makes money and what is the current price of Apple stock. This article also tells about the cash flow analysis of the Apple company. However, even the profit distribution of the company is described in this article. The financial figures of the company are also increasing rapidly. In the upcoming years, the business strategy for Apple will create huge profits for the company.