Introduction:
A trillion-dollar company, Apple Inc., started its journey in Cupertino, California, on April 1, 1976. It was founded by Steve Jobs, Ronald Wayne, and Steve Wozniak as a computer manufacturing company. But now it has 1.5 billion active users worldwide. 80% of the active devices are iPhones and iPads. Apple Inc. is the world's highest-revenue-generating company. Their success journey is inspiring, and their market is still expanding. Let's look at Apple's market analysis.
Apple's target market analysis
Apple has a wide range of products. They offer innovation, creativity and premium technology to all users. Their products are for different demand segments. So, their products also determine their target market. They have over 1.5 billion users, and their market is expanding with their annual product releases. Current hardware products include AirPods, Apple TV, Apple Watch, iMac, iPad, iPhone, and MacBook, and there are software services as well, such as iCloud and iLife. iMessage, iMovie, iTunes and so on. So, what does their target market look like? Let's find out.
Age group: the solitude age group is 22-55. This group is conveniently a market for the company. But with different products, the age dimension varies. Smart, compact devices are more commonly used by people aged 20-45. iTunes, Apple Pay, App Store, and iTunes Store are used by the age group 18-30. And finally, the Apple Watch, TV, Apple, and accessories users are aged 20-45+.
Gender: till 2011, the very product market was not gender-dominated. The male-female user ratio was close to 1:1 (53/48). But the male user count rapidly grew, and soon it was almost 2:1. The current male-to-female user ratio is 60.8% to 39.2%. So, the male market is expanding spontaneously.
Average income: Apple targets households or individuals with medium to high incomes. A study showed that â…“ of users have household incomes of $100,000. So, the target market is undoubtedly concentrated among individuals with payrolls close to standard to high. And the average individual income of a user is around $98,000, which is much higher than the typical device owner's income.
Geographical market: they have markets in fast-track city life. The company has its next-generation stores in 25 countries, including Brussels, Dubai, China, London, New York, and San Francisco, but it has made its app stores, such as Apple's App Store, available in 155 countries. Their strong e-commerce base has made that possible. And their different approaches in different regions help them attract more customers.
Hardcore loyalists: This market segment comprises loyal customers. Users are offered an operating system that is unique, creative, and stands out. So, Apple users become addicted to the product’s user interface. 54% of Apple users plan to buy nothing but Apple products in the future. 30% of the cellphone market would claim the iPhone as the best phone. Therefore, the company's loyal customer base is also a crucial market. Because switchers are often influenced by loyalists and buy their first iPhones. A study showed that 1 in 4 new buyers buys an iPhone because their friends use it. So, it is not just about retaining regular customers; it's also about attracting new ones to the company.
Occupation: Most of the Apple users are highly educated millennials. They are career-oriented and lead an active social life. Students, executives, managers, and professionals are Apple Inc.'s primary market. 64% of Apple product users tend to have college degrees. Apple users are wealthier, more educated, and older than the rest of cell phone users, as the company offers a premium service.
Reference:
- https://en.m.wikipedia.org/wiki/Apple_Inc
- https://www.androidauthority.com/are-iphone-users-richer-better-educated-than-android-users-105032/
- https://research-methodology.net/apple-segmentation-targeting-and-positioning/
- http://heartofcodes.com/positioning-of-apple/
- https://www.fool.com/investing/2020/03/24/apple-app-store-will-be-available-in-175-countries.aspx
- https://brandongaille.com/18-apple-target-market-demographics/#:~:text=The%20Trends%20of%20Apple's%20Target,in%20the%20next%206%20months.
- https://www.statista.com/statistics/203060/iphone-users-in-the-united-states-by-gender/
- https://apple.fandom.com/wiki/List_of_Apple_productsÂ
- https://9to5mac.com/2020/01/28/apple-hits-1-5-billion-active-devices-with-80-of-recent-iphones-and-ipads-running-ios-13/amp/Â
- https://www.celebritynetworth.com/richest-businessmen/companies/apple-net-worth/?amp=1Â