While majority of the companies would wish to claim growth rate in a single digit, Apple’s revenue for the last quarter grew with 73%. Ability of Apple to remain at the top of the game has aroused interest to learn its success secret. Luckily for you, Apple’s CEO, Tim Cook, has revealed some tips on Apple’s core philosophies and its strategic thinking. Here are the top 10 reasons behind Apple’s stupendous success from CEO Tim Cook. Check them out.
10. Embrace Your Internal Cannibal
IPad has cannibalized some Mac sales. Tim Cook said, “We have realized that we have to do cannibalization for ourselves than permitting somebody else to do it. We do not want to prevent one of our teams from utilizing their potential in creating great new products even if it will reduce the sales from another product area. Our goal is to please customers and we need them buying Apple product. Customer satisfaction is our pillar as we consider customers as the boss.
9. Invest Greatly In The Best Things As You Pinch Pennies Everywhere Else
When Cook was asked about Apple’s intentions for its $98 billion in cash, he said, “I totally disagree with your use of the word sparingly. We have spent billions in acquisition; we have billions on infrastructure, retails and data centers. I wish to make it clear that we are deliberate and judicious. We always spend our money like it is our last pennies. I believe shareholders require us to do that. They don’t want us to act like we are stinking rich. We have never felt that way at all. It may sound strange but that’s the fact.”
8. Pursue A Unique Distribution Models
Cook said, “The supreme thing for us is our products. It is where we focus all our effort. We always pay attention to our distribution channel because we have recognized its importance. We also use our purchasing power to get the best deal. Unlike most of the people, Apple do not subscribe to the principle that prepay is prepay. We were able to convince China Unicom to try postpay that was not popular at that time. Indeed, it is working very well for them. I would recommend postpay to everybody because the clients get a cheaper phone and the carrier locks in a customer. It is a different way to look at the matter and it has been successful in China.”
7. Appreciate The IPad Has Initiated The Inception Of A Post-PC World
Tim Cook said, “For the last 21 months, there have been sales of 55 million, something that nobody would have guessed. The reason for such a large sale was because iPad has stood at the top of everything that was introduced in the market before it. The App store and iTune store were already in play. Majority of the people were trained on iPhone and therefore they knew about multitouch. Indeed, most of them are intuitive on the use of a tablet, came from before. When iPad was shipped for the first time, people thought that the tablet market would be bigger than the personal computer market and it was just a matter of time for that to happen. However, that does not mean that the PC is going to become extinct. I believe Mac will grow to a better product leading to strong PC industry but tablet will top in sales.”
6. Adventure The Halo Effect
Cook Said, “The iPhone introduced our brand to people who had never heard about Apple before. It is great to look and realize how our market is growing year over year. The iPhone is establishing a halo for the Macintosh as well as it did for iPad. You can now see the synergistic effect of these amazing products, in both developed and developing markets where Apple was not a booming product for most of the citizen.”
5. The China Factor In Emerging Markets
Cook said that they did not introduce iPhone in the market until 2008. Back in 2007, Apple’s revenue from India, Eastern Europe, Africa, China and some other parts of Asia was $1.5 billion as compared to last year $22 billion. Cook said that the improvement is as a result of more focus on China and Russia.
4. Dazzle And Amuse Your Developer Community
Cook said that everyone in the phone and PC industry decided to shift to tablet industry but Apple aimed at iPad 1 and before the new competitors stabilize in the market, they were already on iPad 2. This gave them a winning edge that has made them have about 180,000 apps as compared to other platforms that have less than a thousand apps. They are able to dominate the market due to their innovation culture and doing what other fear to risk doing. Most of the people are focusing more on operating system thus flooding the market and that’s what Apple avoids at all cost and when they have to do it, they do it in a great way.
3. Don’t Make Clients Pull Their Hair Out
Cook said, “10 years ago, Steve made it public about the Apple’s strategy of a hub for everyone’s digital life and out of that, we have created Life to enable people to connect their gadgets off and sync their photos or music.” According Cook, you no longer have to sync your iPhone to your Mac and then your iPad to your because iCloud identifies the PC or Mac as just another device making life easier for the user; no more pulling your hair out.
2. Great Products Outdo Everything Else
Cook said, “We have been focusing on making the world’s best products while not focusing more on price. Cheap product make some sales and the customers enjoys paying but when they get home and use it, the joy disappear each day they use it until they can’t use it any longer; they are disappointed with your product. There are a lot of commodities that people need around the world and everybody is searching for good product but not cheap product because they have realized that cheap is expensive.”
1. Keep Steve Jobs’ Fire Burning Inside Great People
Tim Cook said, “Apple is a unique company and has a unique culture that you cannot replicate. I am not going to allow anyone to replicate it. Steve always made it clear to all of us that the company should only produce great products and nothing less. We ensure that we go to the market where we can be able to make significant contribution to the people but not focusing on making great sale. These things in combination with excellence are the things that we focus on. Those are the great things that makes Apple a great place that smart people desire to work in and do their life’s best work.”
Those are the top 10 facts behind Apple’s great achievements as they were revealed by Tim Cook. Are there some facts that have been left out? Which one do you find most thrilling? Feel free to leave us a comment. You are also welcome to share this post via social media.