The Secrets Behind Apple’s Success

Everyone knows about the high price tag on Apple devices, especially the iPhone, yet millions of people continue to purchase them every year. There are several explanations for this, such as Apple’s prestige and social pressure, but there is much more going on in people’s subconscious that explains the appeal of Apple devices. 

The iCloud environment, a network that connects all Apple devices with the same user, is a large driver for the appeal of these devices. Not only is iCloud easy to use, especially for the youth and the elderly, but it also instantaneously shares photos, documents, contacts, passwords, and messages between iPhones, MacBooks, iPads, Apple Watches, and AirPods. This sharing makes getting a new Apple device much easier, allowing people to get new iPhones year after year without having to worry about losing their important information. People can be worry-free when getting a new iPhone, which contributes to the subconscious desire for a new phone. 

Not only does the iCloud environment interconnect Apple devices, but it also makes it a nightmare to switch to a different brand. For example, people with non-iCloud phones have green text bubbles on iMessage, as opposed to the normal blue colored ones for iCloud users. This is another way for Apple to unite its community of iPhone users and mildly shun Android users, adding to the feeling that the iPhone comes with prestige and increasing the desire to be part of a certain group of iPhone users. 

Tying into the iCloud environment, Apple makes consistent improvements to their devices, such as Siri, Magic Keyboard, Apple Pencil, Silicon Chips, and health features, and to features of the iPhone camera, such as panoramic shots, portrait mode, a second camera, and night mode. Most years, these improvements are not a complete game-changer, but they give Apple something to advertise and customers a reason to buy a new phone. 

Unlike a lot of other companies, Apple’s marketing doesn’t rely on comparisons to other brands. They advertise the newest model by emphasizing the difference from the older models and subtly depreciating those models, justifying the rising price tag to customers. Their subtle marketing and modest appearance in the industry added even more to the prestige of the iPhone, even though Apple is a multi-trillion-dollar company underneath the surface. 

Apple doesn’t only get its money from marketing and selling iPhones. People know the different Apple devices well, but don’t realize how much Apple technology they use every day. Not only does Apple own Apple Pay, the App Store, Apple ID, and the Apple TV, but it also owns iCloud Autofill, Find My, the weather app, and iMessage. One example of how Apple profits from other institutions using these apps to get on Apple devices is the 30 percent commission that they collect from everything sold on the App Store. This commission sounds ridiculous to many people, and indeed, Apple has been sued multiple times for this and barely avoided paying compensation. This goes to show how far Apple is willing to go for maximum profit, while barely staying within legal boundaries. 

Apple has also made many deals with other companies in exchange for their presence on Apple devices. Some of Apple’s current partners are Google, Microsoft, Meta, and Texas Instruments. This explains why Apple is so rich, but how does all of this money contribute to iPhone sales and the progression of the company as a whole? 

Apple invested over 30 billion dollars into research and development in 2024. To put this into perspective, Apple placed fourth globally for the amount of money spent last year on research, only behind Amazon, Google, and Meta, two of which are Apple’s partners. What is known is that Apple researches a lot into machine learning, cybersecurity, and augmented reality, although much of Apple’s research is not known to the public, and Apple continues to be one of the most secretive companies on the planet. 

Although being secretive about money-spending sounds strange and suspicious to customers, it allows the company to be most effective with their research by not worrying about public opinion, and keeps their next step a mystery to competitors. For most companies, an exceedingly positive public opinion is key to sales and success, but Apple’s unique environment, interconnecting devices, marketing that unites their buyers, and strong influence on outside corporations and partners, allows them to create a community around themselves and do whatever they need to maximize profit without arousing much skepticism from the public.