The present-day generation is the age of technology, mechanization, mobile phones (particularly android & iPhones) and scientific know-how. The degree of achievement and advancement in just the two decades of this century has been rapid to such an extent that imagining the world 50 years down the line seems impossible. A reasonable share of this growth can be attributed to tech giants of the world. Technology has been embedded in ordinary lives leading to enormous revolution over the decade. Even when humanity is battling a pandemic, experiencing an economic downturn and handling protests, tech firms have nothing but grown in the past year. Today, 4 out of the 5 most valued companies in the world by market capitalization are tech firms. In this article, we will follow the growth of Apple Inc.
Apple’s expansion in the past 13 years has been tremendous. Today, when using the world Apple, thought of a company comes before the fruit. Apple Inc. is the first American company to reach US$ 1 Trillion valuation (in August 2018) and the second in the world to reach US$ 2 Trillion valuation by market capitalization (in August 2020). At the time of writing, it’s the most valued company in the world.
Let’s peek into a brief history of the company. Apple Inc. was founded on 1st April 1976 by Steve Jobs, Steve Wozniak and Ron Wayne. However, Wayne left the company within mere 12 days. The company went public in 1980 and the initial computers launched were Apple-I and Apple-II. In the first few years, the company grew expeditiously. However, all was not smooth in the 80s and 90s, when Apple was up against competition from IBM and Microsoft. While Apple II achieved popularity, the computers that followed (Apple-III and Apple-Lisa) failed commercially. The company’s founder Steve Jobs was dismissed from the board in 1985 only to dramatically become the CEO in 1997. Jobs died in 2011 and Tim Cook took over as the CEO. While a few analysts believe that Apple is not the same with innovation and technology post Jobs’ era, it cannot be denied that it has been successful more than ever in the past decade. The strategic vision of Apple to provide “walking computer experience” with iPhones and other wearables united with performance, design, elegance and class are key driving factors for the company.
GROWTH OVER TIME
Let’s now explore a few reasons for the tech giant’s growth in the past year. The first certainly being elevated use of mobile phones and other devices like laptops, tablets, smart watch, etc. during the pandemic. The culture of work-from-home and study-from-home has made it an essence to use mobile and tech devices to achieve our task. The second reason can be attributed to the company’s growing positive image, the continuous growth of revenue and innovation. Apple’s stock was considered as a safe haven at the beginning of the pandemic after the share market crash. The third is the overall assumption amongst investors that tech firms will rule once Covid-era comes to an end.
Apart from these, continuous attempt by Apple to reduce its dependence on iPhone and move towards increasing revenue from Mac, Apple Watch, iPad, Air pods and Apple services like iCloud, TV+, News+, Fitness+, Apple Music, Apple pay, etc. represents the positive mindset of the administration. Apple’s fantastic and self-fulfilling ecosystem creates almost a virtual wall for users. It is rare for an Apple user to switch from an older version of the iPhone to an android instead of a new Apple device.
Apple’s unique marketing strategy from the beginning allows it to enjoy good margins. The tag of luxury attached to its products benefits the tech giant to almost set any price knowing their conventional buyers will purchase it anyway. This extra premium remains a constant contributor to the company’s profit. Luxury is the feel with Apple products. In several domains, its products are the market leader and unmatched.
Apple is recognized for innovation and change. Be it Apple-II, in the beginning, iPod at the start of the century or the game-changer iPhone in 2007. Whenever a company comes out with unimaginable products for the public, the tide turns in their favour. Apple is a trend maker. It developed those products that people never expected they needed until they operated one. Following a similar trend, Apple has recently launched its silicon chip for its mac to replace Intel ones which it was using before the launch. It is even planning to come out with Apple Car by 2024.
A LOOK INTO FIGURES
Apple announced an impressive revenue of US$ 260.2 Billion in 2019 and US$ 274.5 Billion in 2020. It reported US$ 111.4 Billion revenue in the 1st quarter of 2020-21 ended on December 26th, 2020. These numbers are indicative of why investors are betting on Apple’s growth. It is for the first time that the company’s revenue crossed US$ 100-Billion-mark in a single quarter. The landmark was achieved through increased iPhone sales of US$ 65.6 Billion. According to CEO Tim Cook, Apple has surpassed 1.65 Billion active devices worldwide with over one Billion iPhone amongst these.
The bottom line over here is that Apple’s growth has been enormous and it is bound to grow more if it performs well as it did in the past two decades. Today mobile phones, laptops, etc. are the essence and every middle to upper-grade income individual tries to own an iPhone. With Apple comes high-quality service and experience. The vision with which this tech joint is tapping services and other market segments clearly shows why it was one of the most successful tech company not only of 2020 but the entire decade.