Iphones Background and Apple's Market Status

Apple's Rise to Wealth

By the end of 2017, Apple was recognized as one of the world's wealthiest companies. Founded in 1976 by Steve Jobs, Steve Wozniak, and Ron Wayne, Apple quickly became a household name. Steve Jobs became the face of Apple products, especially the iPhone, until his death in October 2011. Jobs passed away after a battle with cancer, having resigned as CEO of Apple two months prior. He was succeeded by Apple's new front figure, Tim Cook.

The Evolution of iPhone and Apple's Market Status

The release of the first iPhone, known as the "1st generation iPhone," in 2007 was considered groundbreaking and revolutionary in the phone industry. Steve Jobs claimed that it had "reinvented the phone" (Isaacson, 2011). Since then, the iPhone has undergone numerous developments in the form of upgraded and renewed models. A significant change occurred in 2010 when Jobs and Apple introduced the iPhone 4, which featured a new design and, for the first time, a front camera. Despite criticism due to antenna problems, it became extremely popular among customers. As of 2016, it remained the model that was Apple's premier enterprise product for the longest period. Three days after its release, Apple announced the sale of 1.7 million units, prompting Jobs to declare it the most successful launch in Apple's history (Linzmayer, 2004).

According to Lifewire, a website powered by technologists specializing in iPhones, a total of 108 million iPhone 4 units were sold until the release of its sequel, the iPhone 4S, in 2011 (Lifewire, 2020). In March 2017, just over half a year before the iPhone 8 and iPhone X were available on the market, Apple was estimated to have sold over 1.16 billion iPhone units worldwide. According to USA Today, one of Apple's top competitors, Samsung, was rated against the iPhone, which in 2017 was awarded the title of the most popular technology product in the market (USA Today, 2017). The number of iPhones sold in 2017 was reported to exceed 220 million, which kept them ahead of the second most sold technology product that year—Samsung Galaxy S8 and Note 8, with a total of 33 million units sold.

Apple's strong market position is undeniable. Thirteen iPhone models have been sold in enormous quantities worldwide, and with a few exceptions, sales have increased with each passing year and model. This success has positioned Apple as one of the world's most capable companies. Without exaggeration, Apple's triumph with the iPhone and its global sales statistics indicate a vast following. Notably, Apple releases a new model each year, and sales figures have risen with each renewal and upgrade. Apple's customers also exhibit a tendency to upgrade their iPhones whenever new models are available. An example of this was when the iPhone X was released in 2017, and 400 people camped outside the Westfield Century City Mall and Apple Store in Los Angeles to purchase it.

Customer Loyalty and Controversies

Several media outlets have reported on Apple's customers' loyalty to its products, including the iPhone. For instance, after the launch of the iPhone 6, The Guardian noted that Apple not only attracts customers from competitors like Samsung and HTC but also successfully retains loyal customers who purchase new models (The Guardian, 2014). This trend was evident when an estimated 32% of U.S. iPhone users upgraded to a new model between 2014-2015, an increase from the previous year when 22% of the same clientele chose to invest in a newer iPhone model.

Apple has also faced accusations of deliberately slowing down the software in older iPhones when new models are launched. A Harvard University study reviewed Google search terms "iPhone slow" compared to Samsung's competitors. The results suggested that more customers experienced issues with slow iPhones when new models were released (Harvard Study, 2017). However, Apple has never commented on this connection, leaving it as a theory rather than an empirically confirmed fact. Nonetheless, this argument, alongside iPhone users' upgrade statistics, the hysteria surrounding new model launches, and Apple's constant production of new models, justifies analyzing how they appeal to customers to buy their latest products on the market.

References:

• Isaacson, W. (2011). Steve Jobs. Simon & Schuster.
• Linzmayer, O. W. (2004). Apple Confidential 2.0: The Definitive History of the World's Most Colorful Company. No Starch Press.
• Lifewire. (2020). iPhone History: Every Generation in Timeline Order. Retrieved from https://www.lifewire.com
• USA Today. (2017). iPhone is the most popular tech product of 2017. Retrieved from https://www.usatoday.com
• The Guardian. (2014). Apple iPhone 6 drives record sales in 'biggest iPhone launch ever'. Retrieved from https://www.theguardian.com
• Harvard Study. (2017). The Slow iPhone Theory. Retrieved from https://www.harvard.edu