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How Did Apple Get So Big? Key Factors Behind Apple’s Success?

There’s no doubt that the pandemic was cruel to Apple, just as it was to other smartphone manufacturers. In fact, Apple was one of the first few to warn us about the pandemic’s impact on global manufacturing. 97.3 billion dollars – that’s Apple’s revenue for the second quarter of 2022, up by 9% year over year. Not only that, but the company’s revenue is higher than the 93.89 billion dollars estimated by analysts. It’s truly intriguing how Apple is making so much profit against all odds. It’s as if they are untouchable, even by a pandemic. Today, the tech giant shares signs of improvements. So, what happened in these two years? or was the seed to success sown long ago? 

iPhone 13

At the end of last year, Apple was struggling to meet demands for its latest and greatest iPhone 13 lineup. Just like the rest, Apple was suffering from component shortages. As a result, people needed to wait much longer than usual to get their hands on the shiny new models. While Apple was trying to meet the growing demands, something had changed. Many people didn’t order the newer models right away, seeing the lengthy waiting time. On top of that, the holiday season was right around the corner, so people simply waited, or did they?

The iPhone 13 lineup, especially the pro models, was the main attraction. These models came with improved cameras, ProRes shooting, and other pro features. It was one of the most anticipated iPhone lineups. Apple didn’t take long to fix their delivery issues, and as soon as they did, they sold 40 million iPhone 13 models during the holiday season, according to a Wedbush analyst. On top of that, this increase in sales carried over to the first quarter of 2022.

Apple sold 40 million units of all models of the iPhone 13 during the holiday season of 2021.

5G

But shiny new upgrades weren’t the only reason behind the sudden surge in iPhone 13 sales; 5G was another contributing factor. Carriers are rolling out 5G, and it’s any day now, they will push customers to use their 5G services. The iPhone 12 lineup was the first model to introduce 5G antennas. But with time, the antennas got better, and so did the 5G system, thus, upgrading to the latest model makes the most sense.

Mac Computers

Then comes the Mac computer lineup. In the last quarter of 2021, Apple unveiled the MacBook Air, MacBook Pro, and Mac Mini. While these looked nothing different from their predecessors externally, internally, it was a different ball game.

Apple closed curtains on its 15-year partnership with Intel and introduced M1 chips, silicones made by the company. These ARM-based chips breathed new life into the computers, boosted their performance, and skyrocketed their sales. During the first quarter of 2022, Apple shipped 7 million units of Mac computers, an 8.6% increase from the 6.5% in the first quarter of 2021. On the other hand, two of the leading PC manufacturers, Lenovo and HP, saw shipments decline by 12.6% and 17.8%, respectively. It’s safe to say, the M1 chips really boosted the overall sales for Apple. On top of that new silicone, the company also started to show some colors with their new iMac, which also attracted more people.

During Q1 2022, Apple shipped 7 million Mac computers, which was an 8.6% increase compared to the 6.5% increase in Q1 2021.
In the same period, Lenovo and HP shipments were down by 12.6% and 17.8%, respectively.

The new chip also found a home inside the new iPad lineup. These new iPads contributed to 76 billion in revenue in Q1 of 2021. Aside from these handheld devices, there are the wearables – Apple Watch and Airpods. In the third quarter of 2021, these wearables, hompods, and other accessories crossed the sales of Mac computers and iPad. Apple made 7.8 billion dollars from this category in Q2, whereas in Q3 of 2022, sales bumped to 8.8 billion. According to Luca Maestri, the CFO of the company, 75% of the Apple Watch buyers in Q3 were new to the platform.

Customizability

Apple also decided to somewhat ditch its minimal and simple design and allow users to customize their home screen to a certain degree. While such customizability doesn’t come close to what you can do on an Android, the option to do so made a lot of people happy. On that note, rooting your android devices is no longer relevant today. Because many of the stock-only features are now available on every flavor and the process has become more difficult. While there are users who root their devices even today, the need for it has considerably died down.

Services

Besides hardware, Apple makes billions from selling services, encompassing everything from the subscription you buy from the Apple store to the licensing deals the company makes. In fact, these services alone raked in 19.8 billion dollars in Q2, increasing from the 19.5 billion generated in Q1 in 2022. 

Apple earned $19.8 billion in Q2 2022, which is an increase from the $19.5 billion generated in Q1 2022.

Ecosystem

Lastly, the Apple Ecosystem. You can love it or hate it, but you can’t deny the harmonious synchronization of the devices. People don’t buy iPhones, iPad, Apple Watches, and other devices from the company simply because of the hardware specs; many do, but not everyone. They buy Apple devices because of the ever-growing ecosystem. In recent years the ecosystem has developed so much that you can copy a text from one of your Apple devices and paste it on another one. The seamless transition from working on one device to the other, and the way these devices communicate, are the reasons why people keep buying and staying in the sphere.

Final Say

When you put together every piece of the puzzle, it becomes clear why and how Apple is raking in billions and paving its path to further success. It’s amazing how the company overcame the supply chain issues and chip shortages and made a profit that broke Wall Street estimation by a long shot. On top of these, Apple has new exciting products with design overhauls and powerful chipset inside, waiting to be unveiled this year. Will those skyrocket their success to Mars? Only time will tell. 

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Nafiul Haque
Nafiul Haque has grown up playing on all the major gaming platforms. And he got his start as a journalist covering all the latest gaming news, reviews, leaks, etc. As he grew as a person, he became deeply involved with gaming hardware and equipment. Now, he spends his days writing about everything from reviewing the latest gaming laptops to comparing the performance of the latest GPUs and consoles.

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