1. Introduction
In recent years, the global consumer electronics market has faced challenges, with major economic indicators running at low levels and the industry urgently needing to accelerate high-quality development. The uncertainty of this macroeconomic environment has had a certain impact on the sales of Apple's electronic products. The Chinese market has always been an important part of Apple's global strategy. With the rapid development of the Chinese economy and the increase in people's disposable income, the demand for Apple products in the Chinese market continues to grow. However, Apple also faces fierce competition from local brands such as Huawei, Xiaomi, OPPO, and Vivo in the Chinese market. With the adjustment of product strategy, Apple has been committed to product innovation and iteration, constantly launching disruptive new products. For example, each update of the iPhone series brings new technological and design breakthroughs, attracting a large number of consumers' attention. In addition to the iPhone, Apple continues to enrich its product line, including iPad, Mac, Apple Watch, AirPods, and more. These products together form Apple's ecosystem, enhancing user stickiness and brand loyalty. Meanwhile, Apple continues to expand its retail store network globally, particularly in emerging markets such as China and India. Retail stores are not only places for selling products, but also platforms for showcasing brand image and providing high-quality services. Apple also focuses on optimizing and expanding its online channels, providing consumers with a more convenient and personalized shopping experience through official websites, e-commerce platforms, and other channels.
As a globally renowned technology company, Apple's marketing strategy has always been a hot topic of research in the industry. The following are some relevant research examples on Apple's marketing strategy, mainly analyzing product positioning, pricing strategy, channel strategy, advertising and public relations strategy, and innovation strategy.
Apple has always positioned itself in the high-end market, meeting consumers' demands for quality and experience by providing high-quality, high-performance products. This positioning not only establishes the unique image of Apple products, but also attracts a large number of consumers who pursue a quality life. Apple's MacBook series laptops are renowned for their exquisite craftsmanship, outstanding performance, and stylish exterior design. Both the professional level configuration of MacBook Pro and the lightweight and portable nature of MacBook Air reflect Apple's pursuit of high quality and high-end market. At the same time, Apple has built a complete ecosystem that includes hardware, software, and services, providing a seamless user experience. This ecosystem strategy not only increases user stickiness, but also adds value to products, making consumers more willing to pay for Apple's products and services [1].
In the early stages of new product launches, Apple often adopts a skim pricing strategy. When a new product is launched, set a higher price to quickly recoup research and development and marketing costs, and obtain high profits. This strategy takes advantage of consumers' curiosity and desire to purchase new products, as well as the high-end positioning of the Apple brand. For example, whenever a new iPhone is released, its initial price is often much higher than other similar products on the market, but even so, there are still a large number of consumers willing to pay for it. During certain periods or for specific products, Apple may offer flexible discount policies to attract more consumers to purchase. This strategy helps to increase market share and sales revenue [2].
Apple sells products directly to consumers through its official website and online store. This channel model is called "direct channel", which allows Apple to better control product pricing, brand image, and customer experience. Consumers can browse product information, compare prices, place orders, and enjoy convenient online payment and shipping services on Apple's official website [3]. Apple also collaborates with telecom operators around the world to sell mobile communication products such as iPhones through their channels. This collaborative approach helps Apple expand its market share while providing consumers with convenient purchasing and activation services [4,5]. Apple collaborates with some large retailers and distributors, such as Best Buy, Walmart, etc., to sell Apple products in their stores. These partners utilize their sales networks and brand influence to help Apple reach a wider consumer base. Apple has always valued the education market by collaborating with schools and educational institutions to promote its products and technology. This collaborative approach not only helps Apple expand its sales channels, but also increases the product's visibility and usage among students and teachers [6].
Apple advertisements often touch consumers' hearts by telling stories or showcasing emotional scenes. For example, in 2015, Apple launched its first New Year microfilm advertisement for the Chinese market. Once the film was released, it set off a wave of praise on the Internet. Every year, Apple launched a New Year microfilm advertisement during the Spring Festival. By 2023, a total of nine New Year microfilm advertisements had been released [7,8]. Apple excels at showcasing the unique features and designs of its products through exquisite visuals and concise language. For example, advertisements for iPhone releases often focus on its outstanding camera performance, smooth operating system, and other core selling points, allowing viewers to intuitively feel the charm of the product. Apple will invite well-known figures or industry leaders to participate in its advertising shoots to increase the brand's authority and influence. The endorsements of these KOLs not only increase the exposure of the advertisement, but also add points to the product through their personal charm.
Apple has always insisted on innovation and launched a series of revolutionary products such as Mac computers, iPod music players, iPhone smartphones, etc. These products are not only technologically advanced, but also have unique designs and user experiences. Apple creates scarcity of products by limiting their supply and maintaining high levels of confidentiality, thereby stimulating consumers' desire to purchase. This strategy enables the product to maintain a high level of attention and popularity in the market. For example, Apple adopted a hunger marketing strategy when launching the iPhone 6. Successfully stimulated consumers' curiosity and purchasing desire through long-term confidentiality and restricted information dissemination. The release of iPhone 6 has sparked a global craze, and the product was once in short supply [9,10].
As mentioned above, this paper will explore Apple's marketing strategies. Chapter 2 primarily examines market strategies, customer segments, social responsibility, brand vision, and customer relationship management. Chapter 3 assesses Apple's effectiveness by evaluating its financial, product, and software service performance, and considers market competition and the development of its ecosystem.
2. Apple's Marketing Strategy
2.1. Market Positioning and Target Audience
Apple has always positioned itself as a high-end market leader, and its products such as iPhone, iPad, Mac, etc. are representatives of high quality and high price. Apple's target audience is broad, including young people, business professionals, and middle-aged and elderly people. These groups have different needs and preferences for the performance, stability, ease of operation, and appearance design of mobile phones, but the commonality is that they all pursue high quality and unique brand experience.
2.2. Product Strategy
Apple focuses on technological innovation and constantly applies the latest technological achievements to its products. For example, integrating more advanced processors, superior camera systems, and longer battery life into the new iPhone to meet consumers' demand for high-performance devices. Apple products are known for their simple and stylish design, emphasizing the aesthetic appearance and tactile experience of the products. This design concept not only enhances the added value of the product, but also strengthens consumers' sense of brand identity. Apple has built a comprehensive ecosystem (including iOS, iCloud, Apple Music, etc.) to provide seamless user experience and rich features, enhancing user stickiness and promoting product sales.
2.3. Distribution Channel
Utilize e-commerce platforms such as Apple's official website, Tmall, JD.com, etc. to open official flagship stores, providing product display, purchasing, and after-sales service. Cooperate with major mobile phone stores and electronic product retailers to establish Apple authorized specialty stores, providing offline experience and purchasing services. In addition, Apple also has its own network of retail stores, which are not only places to sell products, but also important windows to showcase brand image and provide high-quality services. Cooperate with mobile operators to launch customized contract machines to meet users' needs for packages and networks.
2.4. Marketing Strategy
Apple has invested heavily in advertising, showcasing product features and brand image through various forms such as television commercials, social media ads, and outdoor ads. Its advertising creativity is unique and well crafted, which can attract consumers' attention and stimulate their desire to purchase. Apple has a loyal group of users or customers who are willing to share their user experience and product reviews. This kind of word-of-mouth communication plays an important role in shaping Apple's brand image and promoting product sales. In order to meet the needs of different consumers, Apple provides customized services such as customized colors, engraving, etc. These services not only enhance the added value of the product, but also strengthen consumers' brand loyalty. The design of Apple retail stores focuses on user experience, where consumers can try out products, learn about product features and characteristics in the store. This experiential marketing approach helps consumers better understand the product and make purchasing decisions. Apple will launch promotional activities such as limited time discounts and discounts on purchases during new product launches, holidays, or shopping festivals to attract consumer attention and purchases.
2.5. Social Responsibility and Brand Image
Apple actively fulfills its social responsibility by promoting the use of renewable energy and reducing the environmental impact of its products, demonstrating its commitment to sustainable development. These measures not only enhance Apple's brand image, but also win more consumer support for it.
2.6. Customer Relationship Management
Apple places great emphasis on customer relationship management, continuously improving user satisfaction and loyalty through providing high-quality after-sales service, establishing a user account system, and collecting user feedback. Apple's after-sales service system is an important component of its marketing strategy. The company provides consumers with free repair services during the warranty period, as well as professional technical support, which undoubtedly enhances consumers' purchasing confidence. The user account system is the core of Apple's ecosystem, where users can manage their devices and enjoy personalized services such as iCloud storage and Apple Music through their Apple ID. Meanwhile, Apple collects user feedback through its user account system in order to better improve its products and services.
3. Analysis of the Effectiveness of Apple Inc
3.1. Financial Performance
The third quarter of 2024 (as of June 29) performance released by Apple Inc. showed revenue of $85.8 billion, a year-on-year increase of 5%, exceeding analysts' expectations. The net profit was 21.448 billion US dollars, an increase of 8% compared to 19.881 billion US dollars in the same period last year. This indicates that Apple is still maintaining a stable growth trend globally. Divided by region, Apple's revenue in the Americas, Europe, Japan, and other regions of the Asia Pacific region all achieved year-on-year growth, except for Greater China where revenue was $14.728 billion, a year-on-year decrease of 6.5%, making it the only region in the world with negative growth. At the same time, the entire mobile phone market is also declining. Apple CFO Luca Maestri stated that if the impact of exchange rate fluctuations is not taken into account, the year-on-year decline in Greater China is less than 3%.
3.2. Product Performance
As Apple's core product, iPhone's revenue in the third quarter was $39.296 billion, a year-on-year decrease of 0.9%, but higher than analysts' expectations. According to Canalys data, Apple's shipment volume in the global smartphone market reached 45.6 million units, a year-on-year increase of 6%, with a market share of 16%, continuing to maintain its second place. However, the year-on-year decline in iPhone shipments in Greater China is due to increased competition from Android competitors such as Huawei and the impact of Apple's own channel adjustments. Mac revenue reached $7.009 billion, a year-on-year increase of 2.4%; The iPad business increased by 23.7% to 7.162 billion US dollars; The revenue of wearable, smart home, and related accessories business was $8.097 billion, a year-on-year decrease of 2.3%.
3.3. Software Service Performance
Apple's software services revenue achieved significant growth in the third quarter, with net sales of $24.213 billion, a 14% increase from $21.213 billion in the same period last year. In the past decade, Apple's software services revenue has continued to grow quarterly, with the revenue share expanding from 6.43% to 28.22%. This growth is mainly due to the "Apple Tax," which is the commission Apple charges for digital content consumption across all apps on the App Store.
3.4. Market Competition and Future Prospects
Apple is facing fierce competition in the global smartphone market, especially in Greater China, where the rise of Android brands such as Huawei has brought significant pressure to the company. From a global perspective, Canalys' data shows that Apple held its second place in the global smartphone market in the second quarter of 2024 with strong momentum in North America and Asia Pacific, with shipments reaching 45.6 million units, a year-on-year increase of 6%, and a market share of 16%. After experiencing a period of difficulties, Huawei's market share quickly recovered. According to IDC data, Huawei ranked second in the Chinese smartphone market in terms of shipment volume with a market share of 18.1% in the second quarter of 2024, with a year-on-year growth rate of over 50%. In addition, TechInsights' report also pointed out that Huawei's global smartphone shipments in the second quarter of 2024 increased by 49% year-on-year, reaching 11.6 million units.
Meanwhile, Apple is also striving to improve its market performance through measures such as price reductions and channel adjustments. Apple will continue to make significant investments in artificial intelligence technology, including showcasing its AI strategy such as hybrid models, enhanced privacy, and personalized Siri features. These efforts are expected to accelerate the demand for replacement and upgrade in mature markets and promote further popularization of Apple products. In addition, Apple also plans to launch more innovative products and services to consolidate its leading position in the technology industry. For example, there are reports that Apple will release an artificial intelligence feature called Apple Intelligence in October, which will bring users a more intelligent and convenient experience.
3.5. Technology Innovation
Apple has always been known for its strong technological innovation capabilities, and in recent years has made significant investments and research and development in fields such as artificial intelligence, 5G, the Internet of Things, and cloud computing. In addition, Apple has also developed a large number of new products, such as the Apple VisionPro, which combines multiple advanced technologies. With its high-end performance configuration and interactive methods, it provides users with an unprecedented experience. Despite facing challenges from emerging competitors in some areas, Apple's strong research and development capabilities and profound patent accumulation provide strong guarantees for its technological innovation.
3.6. Ecological Environment Construction
Apple's ecological environment construction covers multiple levels such as hardware, software, services, and third-party developers. By building a complete ecosystem, it provides users with a seamless cross device experience. For example, Apple has officially stated that in order to achieve environmental goals and reduce carbon footprint, it has decided to no longer include chargers in some products. This can reduce the electronic waste generated by charger updates and is beneficial for environmental protection.
4. Future and Prospects
4.1. Marketing Strategy Implications
Apple has positioned its products in the Chinese market as high-end luxury, exquisite, and unique, precisely targeting the middle and affluent classes in China. This positioning strategy not only meets the needs of this consumer group, but also enhances the brand's high-end image.
Apple has always placed great emphasis on building and maintaining its brand image, winning the trust of consumers by providing high-quality products and services. In the Chinese market, Apple has also continued this strategy, ensuring that every product represents the brand's outstanding quality.
Apple has launched a diverse range of products in the Chinese market, covering multiple segmented markets such as smartphones, tablets, and laptops, meeting the needs of different consumer groups. At the same time, Apple focuses on product innovation, constantly launching transformative new products to maintain brand competitiveness and attractiveness.
Apple's marketing channels in the Chinese market include both online sales and offline physical stores, distributors, and agents. In addition, Apple actively collaborates with local mobile service providers and well-known e-commerce platforms to expand sales channels and increase product market coverage.
Apple focuses on market promotion in the Chinese market, enhancing the effectiveness of its products in the market through collaborations with famous celebrities, understanding the characteristics of Chinese festivals and local cultural consumption, and other means. Meanwhile, Apple also utilizes social media to interact with consumers and increase brand awareness and influence.
4.2. Future Prospects
With the continuous development and changes in the Chinese market, Apple needs to continue deepening its localization strategy to better meet the needs of Chinese consumers. This includes incorporating more Chinese elements and cultural characteristics into product design, marketing strategies, and service experience.
While maintaining its leading position in the high-end market, Apple can also consider expanding into emerging markets and niche areas such as smart homes and wearable devices. By continuously introducing new products and services to meet the needs of more consumers, we aim to further expand our market share.
In terms of digital transformation and innovation, Apple can continue to strengthen its technological research and innovation capabilities, promote the intelligence and digital upgrading of products and services. By utilizing advanced technologies such as big data and artificial intelligence, we aim to enhance the competitiveness and user experience of our products.
While focusing on business success, Apple also needs to pay attention to sustainable development and social responsibility. By promoting environmental protection concepts, strengthening supply chain management, and fulfilling social responsibilities, the company can enhance its social image and brand value.
With the increasing emphasis on data security and privacy protection issues, Apple can further strengthen its technological research and product practices in data security to provide users with a more secure and reliable digital experience. This not only helps to enhance consumer trust, but also enhances Apple's competitiveness in the enterprise market.
Faced with an increasingly competitive market environment, Apple can try to further innovate its business model and pricing strategy to meet the needs of different consumer groups. For example, by launching product lines with different positioning, such as low-end products that are sensitive to cost-effectiveness or customized products for the high-end market, in order to expand market share.
In the future, Apple needs to continue deepening its localization strategy, expanding into emerging markets and niche areas, strengthening digital transformation and innovation, and focusing on sustainable development and social responsibility to maintain its leading position in the Chinese market and achieve more sustainable development.
5. Conclusion
This study analyzed and explored of Apple's marketing strategy in China. Through market research and data analysis, it has revealed a series of innovative and forward-looking marketing measures taken by Apple in the Chinese market. These strategies not only reflect Apple's keen insight into market trends, but also its profound understanding of the needs of Chinese consumers.
Through multidimensional analysis, the innovative and successful aspects of Apple's marketing strategy in China have been revealed. These new perspectives and insights not only enrich the understanding of Apple's marketing strategy, but also provide useful references and guidance for other enterprises in formulating and implementing marketing strategies.
Also, it proposes the following suggestions for possible future research directions: one is to conduct in-depth research on Apple's digital marketing strategy. With the popularization of the Internet and the development of social media, digital marketing plays an increasingly important role in brand promotion and product sales. Apple has always been at the forefront of this industry, with its official website, social media platforms, and online app store becoming important marketing channels. Future research can further explore how Apple can use these digital channels for precision marketing, improve brand awareness, and increase user stickiness.
The second is to pay attention to Apple's market segmentation strategy in China. China, as a vast consumer market, has diverse consumer groups and a complex market environment. It is worth conducting in-depth research on how Apple can develop differentiated market segmentation strategies based on the needs and preferences of different consumer groups, in order to achieve precise targeting and maximize market share.
The third is to analyze the competitive relationship between Apple Inc. and local brands. In the Chinese market, Apple not only faces challenges from international competitors, but also needs to cope with fierce competition from numerous local brands. Future research can explore how Apple collaborates and competes with local brands from the perspective of competition and cooperation, in order to achieve win-win and sustainable development.
Therefore, although this study provides a comprehensive analysis of Apple's marketing strategy in China, there are still certain limitations. By delving into possible future research directions, we are expected to provide more valuable references and inspirations for academic research and practical applications in related fields.
References
[1]. Jianhuan Ouyang. (2024) Improve relevant systems to lead industries towards "green" and "new" development China Securities Journal, April 1,(A03).
[2]. Xueju Li, Yujia Xu,Chenming Cui. (2020) Application of skim pricing. Chinese and foreign entrepreneurs,(17): 95.
[3]. Jiaobin Zhu. (2020) Research on the Marketing Strategy of Apple's Direct Retail Business in the Chinese Enterprise Market.University of International Business and Economics.
[4]. Rachel Mez. (2014) Apple's attempt to quietly shake wireless carriers will ultimately benefit everyone Technology Entrepreneurship, (Z2): 82.
[5]. Ruonan Yin. (2017) Research on Marketing Strategies for Mobile Terminals. Capital University of Economics and Business.
[6]. Summer, Bohua Chen. (2015) Research on Apple's "Trinity" Electronic Textbook [J] Journal of Ningbo University (Education Science Edition), 37 (04): 106-109.
[7]. Shaojie Wang. (2023) A Narrative Study of Apple's New Year Series Microfilm Advertisements [D] Shanxi University.
[8]. Yuchen Qian. (2023) Analysis of International Brand Localization Communication Strategies from a Cross Cultural Perspective: Taking Apple's New Year's Film Advertisement in China as an Example News Research Guide, 14 (06): 28-30.
[9]. Mengmeng Nie. (2015) Reflections on iPhone Marketing Strategies Based on the "Hunger Marketing" Principle [J]. Economic Research Guide, (04): 77-78.
[10]. Jialiang Ding. (2018) Discussing Hunger Marketing Strategy from the Brand Practice of Apple Inc Modern Marketing (Next Issue), (05): 58.
Cite this article
Zhang,Z. (2025). Analysis of Apple's Marketing Strategy in China. Advances in Economics, Management and Political Sciences,146,170-177.
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The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
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References
[1]. Jianhuan Ouyang. (2024) Improve relevant systems to lead industries towards "green" and "new" development China Securities Journal, April 1,(A03).
[2]. Xueju Li, Yujia Xu,Chenming Cui. (2020) Application of skim pricing. Chinese and foreign entrepreneurs,(17): 95.
[3]. Jiaobin Zhu. (2020) Research on the Marketing Strategy of Apple's Direct Retail Business in the Chinese Enterprise Market.University of International Business and Economics.
[4]. Rachel Mez. (2014) Apple's attempt to quietly shake wireless carriers will ultimately benefit everyone Technology Entrepreneurship, (Z2): 82.
[5]. Ruonan Yin. (2017) Research on Marketing Strategies for Mobile Terminals. Capital University of Economics and Business.
[6]. Summer, Bohua Chen. (2015) Research on Apple's "Trinity" Electronic Textbook [J] Journal of Ningbo University (Education Science Edition), 37 (04): 106-109.
[7]. Shaojie Wang. (2023) A Narrative Study of Apple's New Year Series Microfilm Advertisements [D] Shanxi University.
[8]. Yuchen Qian. (2023) Analysis of International Brand Localization Communication Strategies from a Cross Cultural Perspective: Taking Apple's New Year's Film Advertisement in China as an Example News Research Guide, 14 (06): 28-30.
[9]. Mengmeng Nie. (2015) Reflections on iPhone Marketing Strategies Based on the "Hunger Marketing" Principle [J]. Economic Research Guide, (04): 77-78.
[10]. Jialiang Ding. (2018) Discussing Hunger Marketing Strategy from the Brand Practice of Apple Inc Modern Marketing (Next Issue), (05): 58.