- Category: Business
- Topic: Corporations , Entrepreneurship
In 1976, Apple Computer Company was established by Steve Jobs, Steve Wozniak, and Ronald Wayne in Los Altos, California. Known for its innovative technology, Apple has made its mark in the competitive market by introducing cutting-edge products.
Initially, Apple focused on manufacturing desktop computers, introducing the Apple I and Apple II in the 1980s. Apple was the first company to launch a graphical user interface (GUI), which proved successful and led to the launch of its first Apple Macintosh computer in 1984. In 1985, Steve Jobs resigned from Apple due to conflicts with his partner, resulting in a decline in the company's sales through the 1990s, and struggled to compete with Microsoft on software and Windows manufacturers on hardware sales.
Steve Jobs went on to establish his own software company, NeXT, which developed the operating system. In 1997, Apple acquired Jobs's company, and Jobs was appointed as an advisor. Later, he became the CEO of Apple and focused on innovation and research to introduce new products. Apple launched the revolutionary iMac in 1998, which helped capture a larger market share. Further launches of iTunes and iPod in 2001 and the first smart iPhone in 2007 enabled Apple to enter new product categories. It envisioned the tablet as a bridge between the smartphone and laptop with the capabilities to be both.
Apple continued to innovate by launching the Apple Watch in 2015, an accessory to the iPhone that tracks various health and fitness metrics. Air Pods were next, opening the way for wireless headphones' mainstream usage. Apple built its subscription services, including music and video streaming, video games, fitness, and cloud storage.
Currently, Apple's new products, which may include a virtual reality headset and a self-driving car, have been eagerly awaited by the tech-savvy crowd. Recent product launches have been smaller in scope, like the Home Pod and Air Pod. Apple fans are eagerly anticipating the next iPhone.
Apple generated $365 billion in revenue in 2021, with 52% coming from iPhone sales. Its services were responsible for 18% of revenue, and it sold 230 million iPhones, 71 million iPods, and 20 million Mac and MacBook units in 2020. Apple's home and wearables division grew 25% in 2021, selling 110 million Air Pods and 43 million Apple Watches. Apple Music has 72 million subscribers, and Apple TV+ has over 40 million.
The iPhone market is one of Apple's main products, with a 26.91% global market share according to Stat Counter (2021). In the USA, Apple has a 61.07% market share, with Samsung in second place with a 24.12% market share. Other big three competitors are LG, Motorola, and Google.
Apple has millions of consumers globally due to its innovative products. However, some sales have declined, and if Apple does not continue to add innovative features to its products, competitors will capture its market share easily.