Apple is currently the world’s most profitable company
Ever wonder how they do it? What makes Apple so profitable? The iPhone is by far what is most profitable to Apple. Exactly how much more profitable is Apple to it’s competitors. Every one in five phones in the world is an iPhone. But Apple doesn’t just have 40% of this profit pie, it might as well have the whole pie. How much of this pie then?
According to the Wall Street Journal, Apple took in 92% of the profit of all phone manufacturers in the first quarter of 2015. It was the highest quarter profit of any company ever. In 2014, it held 52% and when it first came into the market Nokia held practically the whole market. So, in a matter of 6 years it’s a pretty large sweep of the market.
It’s a premium phone with world class marketing and branding which is a deadly combination. It has more to do with what the consumers perceive the product to be rather than what it is. Owning an iPhone is like living out a dream and has become a cultural icon. It is the ability to have an iPhone rather than the iPhone.
Apple thinks different and refuses to compromise. The Macintosh changed computers forever. When the new iPhone 7 was dropped, normally a consumer would ask the logical question as to why he would drop so much cash for just a change of color to Jet Black. But Apple does things in a way where this actually does become interesting. Apple’s marketing makes it more of an emotional decision rather than a logical decision. They make you watch a film of their product.
From the dancing advertisements of the iPod till now, Apple has kept with consistently stuck with making their brand a story and giving investors something to invest in.