The 10 least publicised secrets of Apple’s success
Image courtesy of Kal Visuals on Unsplash
In January 2022 the Apple Corporation became the first US company to reach a stock market valuation of $3 trillion. Less than two years earlier, Apple became the first US company to reach a stock market valuation of $2 trillion and two years before that, the first US company to reach a stock market valuation of $1 trillion. To place the $3 trillion valuation into some sort of context, in 2021 (according to the International Monetary Fund) only United States, China, Japan, Germany and United Kingdom generated a higher Gross Domestic Product than the valuation placed on the Apple Corporation in January 2022.
Again, for context, if Apple were a nation state it would be the sixth largest economy in the world.
Over the years, many thousands of column inches have been dedicated to chronically the incredible growth and expansion of the Apple empire. As part of this, coverage has been dedicated to product innovation, quality and the ever so slick marketing campaigns. The aim of this blog therefore is not to rehash that which is already common knowledge, but rather to uncover uncommon insights from a ‘fourth dimensional perspective’. To inform it, I have reflected on my own experience as an Apple consumer and well as the experiences of others who use the products. I have also pored over publicly available information about the company. With that in mind, set out below are the 10 least publicised secrets of the Apple Corporation’s success.
1. Turtle-necked proletarianism
One of the unique features of Apple product marketing remains the grand launch. Over the years this has become almost iconic, with Steve Jobs and then Tim Cook, appearing in casual attire to showcase the latest offering. Jobs with his ubiquitous turtle-neck and jeans combo and Cook with his untucked open necked shirt, have represented far more than an attempt to create a cosy fire-side chat ambience. The garments’ function much more as product props, to emphasise accessibility and democratise the product to the equally casually attired proletariat. The necessity to drive home the message of product accessibility is underlined by the fact that relative to their near competitors, Apple’s is a more expensive option.
2. The psychology of wants, needs and behaviour
Every business with aspirations to be successful needs to master the art and science of wants, needs and behaviour. However, few have managed to achieve this as effectively as Apple. In doing so, they appear to have recognised that each person or commercial entity, exists as three distinct but interrelated archetypes: ‘citizen’, ‘consumer’ and ‘customer’. That is to say, in order for you to organise your life in a way that is most satisfying (citizen), you need access to goods and services that will give you the greatest satisfaction (consumer). Ultimately, the goods and services that will give you the greatest satisfaction are the ones that you will choose (customer). Apple have better understood that a customer’s behaviour is a derivate of a consumer’s need and a reflection of a citizen’s want.
3. Turning product into cultural experience
I remember several years ago, a former colleague of mine told me how he had rose early one morning to queue outside an Apple store to purchase the then new iPad. At the time I thought that my colleague, an educated family man occupying a management role, had lost his senses. The significance of what was happening, not just to my colleague but to Apple afficionados across the globe, was completely lost on me. What I later came to appreciate is that, through its creative marketing and intelligent customer engagement, Apple had morphed into equal part consumer brand and cultural phenomenon. When a brand goes cultural and transcends the market-place, you are no longer buying a product, you are buying into an experience.
4. Predictive attraction and validated insight
Often, the natural order of things is to design products and services that meet the needs and wants of customers, not to create customers where needs and wants did not previously exist. This kind of predictive capability, where a producer is able to anticipate what the customer needs before the customer even realises it, is the absolute nirvana for any commercial entity. In such a situation, the supplier only needs to correctly anticipate customer need once, before a trust is established on the basis of validated insight. In due course, as more insights are validated and trust increases, the supplier is able to heighten anticipation; so much so that the consumer doesn’t just want the product, they clamour for it.
5. The ‘gegenpress’ or counter-press
In soccer, there is an aggressive strategic manoeuvre that is popularly known as the ‘gegenpress’ or counter-press. In simple terms the ‘gegenpress’ is when a team that is not in possession of the ball tries to recover possession from the opposition, as high up the field as possible. At its best, the ‘gegenpress’ is a way of depriving the opposition of thinking time and by so doing, disorientating them and increasing the likelihood of sub-optimal decision-making. This tactic of narrowing down and removing choices is exactly what Apple have done to the unwitting public. Even as a commercial organisation, Apple are not fundamentally as interested in your money, as they are in your decision-making capacity. That is because if they can control how you think, they will control how you spend.
6. Connecting smart products to other smart products
Apple have positioned themselves in a way that is both strategically clever and tactically smart. Did you ever hear that quote about the American gold rush? It goes something like this: “the ones who got rich during the American gold rush, were not the people who found the gold, it was the guy who sold them the shovels”. In the same way, Apple have cleverly situated their products as a kind of market-place gateway, enabling direct or indirect access to a wider range of products, services and opportunities. For Apple, this means that they have not just been directly successful, through the impact of their own products, they have also been successful by their implied association with others.
7. Spawning the growth of new markets
It is notable how Apple’s commercial success has not only re-awakened an industry but has also created an industry in its wake. Not only have other providers had to catch up, to stay relevant, but new supply chains of start-ups have also emerged with data miners and app developers devising magnificent new tools to increase customer personalisation and convenience. The ability to effect large scale market disruption is certainly not a pre-requisite for business success, but those who are able to do so successfully inevitably set the industry standard and emerge as market leaders. Ironically, Apple have proved so effective in re-setting the industry benchmark that they have unwittingly made it possible for their competitors to catch up in terms of product quality and be more competitive in terms of price.
8. Lifestyle accessory to lifestyle necessity
I can think of many products that are lifestyle accessories. Such products offer a high degree of personalisation, convenience, customisation and choice. But other than food, water, heat, light and shelter I cannot think of too many products or services that I would describe as necessities. Part of the success of Apple, is the triumph of market psychology whereby the consumer believes that they do not need the product to make their life comfortable, they need it to make their life possible. In doing so, Apple have been able to pitch a product that is more costly than its competitors, to be seen as an investment rather than an expense.
9. Taking up a unique vantage point
If you stand where others stand, you will invariably see exactly what they see. The challenge is to secure a slightly different vantage point from everyone else, that will enable you to see what they cannot. From Apple’s perspective, they have been able to take up multiple distinct vantage points from the perspective of the supplier, supply chain, customer and competitor. This approach to market ‘quadrangulation’ is entirely unique and ensures that Apple is able to maintain numerous lines of sight of both emerging opportunities and potential risks. With this holistic view of the market, Apple is then well placed to shape and influence market dynamics.
10. Adding to the popular vocabulary
iPhone; iPad; AirPods, Apple Watch and the wider family of Apple brand monikers are now part of the modern pop-culture lexicon. There is a lesson to learn here for existing and would-be product makers, which is that if you are going to create a good product, make sure that it’s a good product worth remembering and one that is easy to recall.
So here is the conclusion; cutting-edge product design and high-quality development are undoubtedly the core of Apple’s phenomenal success. But around that critical core, the tech giants have deployed sophisticated and innovative techniques in customer relationship management and market psychology to make their offer not just attractive, but compelling. In the aggregate, there is a key learning point for businesses of every size, which is the need to focus obsessively on the product and on every aspect of detail relating to that product. When your products are excellent, you do not need to look out for customers or competitors, they will find you.
