Strategy

Target Market Analysis of Apple Inc

by Tabassum Nusrat Soti

A trillion dollars’ worth company, Apple Inc started its journey in Cupertino, California, on April 1, 1976. It was founded by Steve Jobs, Ronald Wayne, Steve Wozniak, as a computer manufacturing company. But now it has 1.5 billion active users around the world. 80% of the active devices are iPhones and iPads. Apple Inc. is the highest revenue grossing company in the world. Their success journey is inspiring and their market is still expanding. Let’s look at Apple’s market analysis.

Target Market Analysis of Apple Inc

Apple has a wide range of products. They offer innovation, creativity and premium technology to all users. Their products are of different demand segments. So, their products also determine their target market. They have over 1.5billion users and their market is expanding with their every year product release. Current hardware products are AirPods, Apple TV, Apple Watch, iMac, iPad, iPhone, MacBook etc. and there are software services as well like iCloud, iLife. iMessage, iMovie, iTunes and so on. So, what does Apple’s target market look like? Let’s find out.

Who are Buying Apple? 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. Such as the smart, compact devices are more used by people of the 20-45 age group. Where iTunes, Apple Pay, app store and iTunes store are used by the age range 18-30. And finally, the apple watch, tv apple and accessories users are from 20-45+ age.

Who are Buying Apple? 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 became almost 2:1. The current male to female user rate is 60.8% and 39.2%. So, the target market is expanding in the male market spontaneously.

Average Income Group Who Prefers Apple Products

Apple targets the market with medium to high-income households or individuals. A study showed that â…“ of the users have a household earning of $100,000. So, the target market of Apple Inc, is undoubtedly conserved in close to standard to high payroll individuals. And the average individual income of a user stands to be around $98,000, which is much higher than usual device owner demographics.

Geographical Market for Apple Inc

they have markets in fast-track city life. The company has its next-generation stores in 25 countries, including Brussel, Dubai, China, London, New York, San Francisco, etc. but they have made app stores as in apple products available in 155 countries. Their strong e-commerce base has made that possible. And their different approach in different regions helps to gather more and more customers.

Loyal Customers of Apple Inc

Hardcore Loyalists: this category of the market is specified as loyal customers. The users are offered an operating that is unique, creative and stands out. So, the apple users get addicted to the product working style. 54% of Apple users buy nothing but Apple products in the future. 30% of the cellphone market would claim the iPhone as the best phone. Therefore, the loyal customer base is also a very crucial market for the company. Because the switchers often get influenced by the loyalists and buy their first iPhones. A study showed that 1 in 4 new buyers buy an iPhone because their friends use it. So, it is not just maintaining regular customers; it’s also about getting new ones for the company.

Apple Inc – Occupation Group

Most of the Apple’s users are highly educated millennial. They are career-oriented and lead an active social life. Students, executives, managers, professionals are the primary target market of Apple Inc. 64% of Apple product users tend to have college degrees. We can say that the apple market is wealthier, more educated and older than the rest of the cell phone users as the company offers premium service.

Related:

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_products
  • https://9to5mac.com/2020/01/28/apple-hits-1-5-billion-active-devices-with-80-of-recent-iphones-and-ipads-running-ios-13/amp/
  • https://www.celebritynetworth.com/richest-businessmen/companies/apple-net-worth/