Marketing of Apple Inc.

The marketing of Apple Inc. encompasses the company's advertising, distribution, and branding. After Steve Jobs returned to Apple in 1997, he made industrial design a key element of the company's branding strategy. Apple's public image has been shaped by several acclaimed advertisements made in partnership with TBWA\Chiat\Day, including "1984" and "Get a Mac". Many of Apple's product announcements occur during keynote speeches the company gives several times a year, at Apple Special Events or at Apple's Worldwide Developers Conference, that help reinforce Apple's brand.

Advertising

Brand partnerships

Nike+iPod
Apple Watch and Hermès

Branding

According to Steve Jobs, the company's name was inspired by his visit to an apple farm while he was on a fruitarian diet. He thought the name "Apple" was "fun, spirited, and not intimidating".[1] Steve Jobs and Steve Wozniak were fans of the Beatles,[2] but Apple Inc. had name and logo trademark issues with Apple Corps Ltd., a multimedia company started by the Beatles in 1968. This resulted in a series of lawsuits and tension between the two companies. These issues ended with the settling of their lawsuit in 2007.[3]

Logo

Apple's first logo, designed by co-founder Ron Wayne, depicts a picture frame depicting Sir Isaac Newton sitting under an apple tree, with a ribbon banner reading "APPLE COMPUTER CO." surrounding it. It was almost immediately replaced by

Distribution

Apple Stores

Apple opened its first two Apple Stores on May 19, 2001, in McLean, Virginia and Glendale, California, later expanding to hundreds of other locations. These stores were created on the initiative of then-CEO Steve Jobs to provide a venue for consumers to become more familiar with Apple products and the internet. In addition to standard retail, Apple Stores provide technical assistance through Genius Bars and give demonstrations to showcase Apple products.[30] The creation of Apple Stores came after years of attempting but failing store-within-a-store concepts.[31] Seeing a need for improved retail presentation of the company's products, Jobs began an effort in 1997 to revamp the retail program to get an improved relationship to consumers, and hired Ron Johnson in 2000.[31]

Market positioning

App Store app review

Adobe Flash

With the release of iOS 4.0 SDK, Apple controversially (back then) changed its developer agreement to prohibit programs that are originally written in non-Apple approved languages from being used on the iPhone. This was criticized for being anti-competitive[44] by disallowing use of Adobe Animate (formerly Adobe Flash Professional) and other IDEs for creating iPhone apps.[45][46][47] The New York Times quoted an Adobe employee alleging the policy to be anti-competitive.[45]

Media relations

Apple maintains secrecy around its products and its practices, tightly controlling information regarding product launches, deliberately passing out misinformation in an effort to find leakers and keep the media unsure of Apple Inc.'s current developments.[90] The company maintains strict control over workflow and access to products in development to ensure that leaks do not occur, providing information to employees on a need to know basis.[91] Many attribute Apple's secrecy to Steve Jobs's reclusive nature where "he has always kept things close to the vest ... and only confided in relatively few people."[90]

Apple only engages in public relations activity for the most significant products and milestones, and reporters are provided information about a finished product to focus on changes that Apple wishes to emphasize.[92]

References

Steve Jobs bio says Apple CEO abhorred 'corrupt' execs CBC News, October 20, 2011, retrieved October 21, 2011^
Asher Moses. Who was Steve Jobs the man? The Age, October 7, 2011, retrieved October 7, 2011 Tearful memories for Apple co-founder The Age, retrieved October 7, 2011^

App Store fees

iOS applications available through the App Store that require payments for features or membership are required to use Apple's iTunes payments system, granting the company a 30% cut of all transactions.[68][69] This policy has been criticized as taking an unreasonably large amount of money for each transaction, with comparisons being made to the typical 1-5% cut that credit card companies require[70] and the 1-10% cut that some online marketplaces require.[71] Some experts have also compared the App Store fee to rent-seeking.

Spotify

In July 2015, music-streaming service Spotify sent an email to its iOS subscribers, urging them to cancel their App Store subscriptions, wait for expiration, and then sign up for paid membership through Spotify's website, bypassing the 30% App Store transaction fee and making the service more affordable.[72] Approximately a year later, Recode reported that Spotify's general counsel Horacio Gutierrez had sent a letter to Apple's then-general counsel Bruce Sewell, saying that the company was "causing grave harm to Spotify and its customers" because it wouldn't approve an update to the Spotify app. Apple hadn't approved the new version due to "business model rules", requiring that Spotify use the iTunes payments system if it "wants to use the app to acquire new customers and sell subscriptions". Gutierrez severely criticized the chain of events, writing that "This latest episode raises serious concerns under both U.S. and EU competition law. ... It continues a troubling pattern of behavior by Apple to exclude and diminish the competitiveness of Spotify on iOS and as a rival to Apple Music, particularly when seen against the backdrop of Apple's previous anticompetitive conduct aimed at Spotify." He also described the App Store approval process as a "weapon to harm competitors".[73] In a response reported by BuzzFeed News, Bruce Sewell said that "We find it troubling that you are asking for exemptions to the rules we apply to all developers and are publicly resorting to rumors and half-truths about our service", adding that "Our guidelines apply equally to all app developers, whether they are game developers, e-book sellers, video-streaming services or digital music distributors; and regardless of whether or not they compete against Apple". Sewell further claimed that the company "did not alter our behavior or our rules" when introducing its own Apple Music streaming service and that there was "nothing in Apple's conduct" to support anti-competitive claims.[74] Zach Epstein of BGR opined that Spotify was angry because "it's not a non-profit" that did not have free rein over its app built on another company's service, and concluded with the remark that "Apparently, Apple shouldn't be compensated for giving Spotify access to tens of millions of potential subscribers".[75]

In August 2016, Spotify began "punishing" artists who offered Apple Music exclusives by featuring their content less prominently on its service and offering fewer promotional opportunities.[76][77] In May 2017, Financial Times reported that Spotify, as well as several other companies, had filed a letter with the European Union, alleging that "some" operating systems, app stores and search engines had abused their "privileged position" to go from being "gateways" to "gatekeepers".[78] A few days later, Reuters reported that the European Union was preparing new laws and legislation intended to handle conflicts between large corporations and smaller businesses, specifically in regards to "unfair trading practices".[79][80] Another letter was sent in December 2017, once again accusing Apple of "regularly abusing" its position, and asking for regulators to step in and "ensure 'a level playing field'".[81]

Fortnite

On August 13, 2020, Epic Games added a direct payment system to Fortnite in order to bypass Apple's App Store fees. In response, Apple removed the game from the App Store, preventing new players from downloading the game.[83] On the same day, Epic Games released a video attacking Apple titled Nineteen-Eighty-Fortnite[84] with similarities to the Apple advertisement 1984. Simultaneously, Epic released a complaint for Injunctive Relief[85] against Apple. In September 2020, Epic Games and thirteen other companies launched the Coalition for App Fairness which aims for better conditions for the inclusion of apps in the app store.[86]

Marketing of Apple Inc.

Advertising

Brand partnerships

Branding

Logo

Distribution

Apple Stores

Market positioning

App Store app review

Adobe Flash

Media relations

See also

References

Brand loyalty

Website

Retail partnerships

Copyright infringement

Google Voice

Takedown of competitors' apps

Adobe Flash

Copyright infringement

Google Voice

Takedown of competitors' apps

App Store fees

Spotify

Fortnite

Spotify

Fortnite

iTunes

Alleged collusion with record labels

Alleged collusion with record labels