tiểu luận the products value its market customersegmentation marketing mix and swot with theiphone 13 product from 2021 to the first quarter of2022 at apple inc

Executive SummaryThe purpose of this report is to outline the iPhone 13 product a major product of Apple Inc the multinational technology company, more specifically, to present the value

2022 at Apple Inc

GROUP 5:

Võ Phước ĐạtSầm Ái LinhĐinh Thị Vân NhiPhan Thị Hồng Nhung

Trần Thị Châu Sa

Da Nang, 28/06/2022

i

Executive Summary

The purpose of this report is to outline the iPhone 13 product a major product of Apple Inc the multinational technology company, more specifically, to present the value of the product,the market, the customer segment, the marketing mix, and SWOT in that company from 2021to the first quarter of 2022.

-References are also collected from books, articles and some previous reports This report usesa research method which is the method of data collection, listing, and searching forinformation about iPhone 13 products and related issues above Then, analyzing, comparing,synthesizing data, and making clear and specific assessments for the problem to be reported.After the report, the team will make some of the most succinct conclusions about the value ofthe iPhone 13 product, its market, customer segments, marketing mix, and SWOT from 2021to the first quarter of 2022.

1 Reason for choosing the topic: 1

2 Research purpose and tasks 1

3 Object and scope of research 1

4 Structure 1

Chapter 1 Market share and total revenue of Apple 2

1 Revenue of Apple: 2

2 Market share: 3

Chapter 2 Customer segmentation and target segmentation of Apple Inc 5

1 Demographic segmentation of Apple 5

1.1 Income: 5

1.2 Age: 5

1.3 Gender: 5

1.4 Occupation Group 6

2 Geographic segmentation of Apple 6

3 Behavioral segmentation of Apple 7

4 Psychographic segmentation of Apple 7

5 Table of customer segmentations for Apple's iPhone (11) 7

Chapter 3 Marketing mix 8

Chapter 4 SWOT analysis of Apple Inc 18

1 Strengths: 18

1.1 Unique ability to design and develop proprietary hardware, software, applications, and services:181.2 Powerful brand supported by strong advertising and marketing capabilities: 18

1.3 One of the most loyal customer bases in every major product market where the company operates: 19

1.4 Apple has one of the strongest financial positions: 19

1.5 Apple’s retail footprint extends across the globe and is synonymous with high street retail: 19

1.6 Apple has a large gross margin since its items are high-end: 19

1.7 Apple manufactures five of the world’s top ten selling handsets: 19

2 Weaknesses: 19

2.1 Over the past few years, Apple's innovation has stagnated: 19

2.2 Apple continues to sell its products at a premium price: 19

2.3 Apple is reliant on the high-end market: 20

2.4 Apple has been accused of unfair business practices: 20

2.5 Accusations of patent infringement continue to damage the reputation of Apple: 20

2.6 Apple has experienced a drop in sales in China, one of its core markets: 20

3 Opportunities: 20

3.1 Brand loyalty 20

3.2 Add to product line 20

3.3 Partnerships and Transformations 20

3.4 Consistent Customer Growth 20

3.5 Qualified Professionals 21

3.6 Expansive Distribution Network 21

3.7 Smart Wearable Technology 21

3.8 Utilize Artificial intelligence 21

3.9 Expanding into Chip Manufacturing 21

3.10 Dominating in Smart Speakers 21

4 Threats: 21

4.1 Increased competition in the market 21

4.2 Corona virus outbreak and new global tensions 21

4.10 Mark Zuckerberg criticized monopoly of iPhone’s app store 23

4.11 Apple Motions for Case Dismissal 23

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Table of Figures

Figure 1 Total active Apple devices, per company reports 2

Figure 2 Global smartphone revenue in 2021 (Resource: Counterpoint Research) (2) 3

Figure 3 Global Smartphone Market Share (Q2 2020 – Q1 2022) 3

Figure 4 Global Smartphone Shipments (in Millions) (6) 4

Figure 5 Apple Segment Breakdown 6

Figure 6 iPhone 13 product's colors 9

Figure 7 iPhone 13 10

Figure 8 Camera iPhone 13 10

Figure 9 Package of iPhone 13 12

Figure 10 Customer services 13

Figure 11 Price of iPhone 13 mini 15

Figure 12 Place of Apple 16

Figure 13 Apple’s product ecosystem (21) 18

Figure 14 Retention Rates in The Smartphone industry (21) 18

Figure 15 Brand Keys’ Customer Loyalty Engagement Index (Apple’s market leader positions 2014-2017) (21) 19

Figure 16 SWOT Analysis of Apple 23

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Table of Tables

Table 1 Apple quarterly revenue ( $ billion ) 2Table 2 Apple’s iPhone smartphone market share worldwide (6) 4Table 3 Apple revenue by region ($ billion) (10) 6

Statement of commitment

I hereby declare that the report topic: “The product's value, its market, customersegmentation, and marketing mix with the iPhone 13 product from 2021 to the first quarter of2022 at Apple Inc” that we made is the independent product of the group, conducted openlywith the guidance and enthusiastic help from lecturer Th S Nguyen Son Tung.

All data and information in the research paper are honest and confirmed by the agenciesdirectly managing Without any copying of survey data from any previous similar study doesnot cite the source clearly.

If we are detected any copying, cheating in the results of the study, we will take fullresponsibility and accept the disciplinary decision of the lecturer.

Da Nang, date 28 month 6 year 2022Research topic author

Group 5

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First of all, we would like to convey our sincere gratitude and special thanks to oursupervisor, Master Nguyen Son Tung – a lecturer in the faculty of Business Administration -at the University of Economics - The University of Danang, whose help, stimulatingsuggestions, and encouragement, helped us to coordinate during the writing of this report.We would also like to express our thanks and appreciation to all parts of the team who triedtheir best to complete this report together.

This introductory business course provides us with a range of the core, vital and necessaryknowledge for our research on the subject of this report.

At last but not least, we are thankful to all my friends who have always helped andencouraged us throughout the report We have no valuable words to express our thanks, butour heart is still full of the favors received from every person.

Currently, consumer electronics, computer software, and online services – are products thathave been competed by large corporations, many businesses, and companies, notably Appleand Samsung So how can you stand out among many competing brands? How does yourproduct stand out and really differentiate from others so that your product reaches the massesand is accepted?

To answer these questions, let's look at the successes that Apple INC has achieved over theyears below Apple Inc is an American multinational technology corporation headquarteredin Cupertino, California , that designs, develops, and consumer electronics , computersoftware, and online services Apple is the world's largest technology company by revenueand one of the world's most valuable companies The company also enjoys a high level ofbrand loyalty and ranks as the world's most valuable brand.

From these achievements, people learn about: "what are the marketing mix strategies that thecompany has applied?", "Who are the customers they target?", "How have they met the needsof customers?",… These are also the reasons why the team decided to make a report on thetopic: “The product's value, its market, customer segmentation, marketing mix, and SWOTwith the iPhone 13 product from 2021 to the first quarter 2022.”

The research problem was solved by answering 4 questions:

Question 1:What are Market share and the revenue of Apple and its iPhone 13 product line?Question 2: What is the company's customer segment?

Question 3: What is the company's marketing mix applied?Question 4: What is Apple’s SWOT?

The purpose of the research is to understand the product's value, its market, customersegmentation, marketing mix, and SWOT with the iPhone 13 product from 2021 to the firstquarter of 2022 From there, draw general conclusions about the causes to the success ofApple Inc.

Research object: All activities and problems related to iPhone 13 products

Scope: In order to give the accurate information, this report looks into learning about theproduct’s value, its market, customer segmentation, marketing mix, and SWOT with theiPhone 13 product from 2021 to first quarter 2022.

4 Structure

In addition to the introduction, conclusion, list of references and appendices, the contentof the report is divided into 4 chapters.

Chapter 1: Market share and total revenue of Apple

Chapter 2: Customer segmentation and target segmentation of Apple IncChapter 3: Marketing mix

Chapter 4: SWOT analysis of Apple Inc

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Chapter 1.Market share and total revenue of Apple

1 Revenue of Apple:

Apple made more money than ever during the holiday season, and its growth during 2021 hashelped the company add 150 million more active devices During an earnings call withinvestors last night, Apple CEO Tim Cook revealed that Apple now has 1.8 billion activedevices That’s up from the 1.65 billion Apple reported a year ago (1)

Figure 1 Total active Apple devices, per company reports

Revenue in 2022: Apple had a record-breaking quarterly earnings for the company’s fiscal Q1in 2022, posting $123.9 billion in revenue and record profits of $34.6 billion The iPhone hada big quarter thanks to holiday sales, and accounted for a staggering $71.63 billion in revenuealone (1)

Quarterly RevenueQ1 2021 111,4

Figure 2 Global smartphone revenue in 2021 (Resource: Counterpoint Research) (2)

2 Market share:

Figure 3 Global Smartphone Market Share (Q2 2020 – Q1 2022)

As Apple’s most successful product, the iPhone is one of the most heavyweight players in thesmartphone market, with dozens of millions of iPhones being shipped every quarter Indeed,when it comes to smartphone vendor share, Apple is the second largest smartphone vendor inthe world after Samsung (3)

According to Counterpoint Research, Apple's iPhone has gained the highest market share inEurope, India, and China, and dominated in the US Now, the new report claims that Applehas also led the smartphone market globally (4)

The global smartphone market declined by 8% YoY and 12% QoQ to 326 million units in Q12022.

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Apple’s global smartphone shipments remained flat compared to Q1 2021 at 59 million unitsin Q1 2022 This was driven by strong demand for iPhone 13 series and the early launch of itsfirst 5G-enabled SE Series which, even in a contracting market, helped push Apple’s marketshare to 18%, up from 17% in Q1 2021 Its quarterly shipment decline of 28% is primarilydue to seasonality (5)

Figure 4 Global Smartphone Shipments (in Millions) (6)

QuarterlyMarket share ofshipmentsQ1 2021 16

Apple is the leading smartphone market revenue by top 5-brands in 2021.

Chapter 2.Customer segmentation and target segmentationof Apple Inc

Before producing and launching a product or service to the market, they need to understandthe requirements customers are looking for and then find ways and means to satisfy theirdesires This is very important to stay ahead of the competition and build a diffentiated brand.This can be done through extensive marketing research However, due to the differencebetween the interests and personalities of each person, it is difficult for the company to satisfyall the needs at the individual level Therefore, Apple Inc divides the market into segments,from which to decide which market to focus on in order to achieve high profits Here are thecustomer segments that Apple often applies

1 Demographic segmentation of Apple

Apple focuses on marketing to people with a few different characteristics.

1.1 Income:

Apple's primary focus is on middle- and upper-class income people because thesedemographics are usually willing to pay slightly more for "a better user experience" (7)The other feature of the target market is that it constitutes of the young people who aresensitive to innovative products and are ready to pay premium prices for the new Appleproducts In addition, the target market constitutes of the wealthy individuals who can affordthe products as they are sold at higher prices compared to other similar products in acompetitive market.

1.2 Age:

Apple consumers range in age from 16 to 70 years old, depending on the product.

Apple is known as modern technology innovators, always seeing innovation as inevitable.Therefore, in recent years, Apple no longer focuses only on a certain age range, but insteaddivides the target age group based on the appropriate use of customers Since then, there aredifferent product lines in different age ranges.

Specifically, Apple will focus on people who like to have fun with technology; Apple'sdiverse line of entry-level devices and tools is starting to appeal to people of all ages (7)For example, iPod, iTunes, Apple Pay, app store, and iTunes store used by 18-30 year olds,can target music enthusiasts from an older demographic

Smart, compact devices are used more by people aged 20-45 (8)

And finally, users of apple watch, apple tv and accessories are aged 20-45+ (8)

In addition, thanks to their advanced technology, Apple can also target professionals workingin the fields of communication and design.

While Apple's prices are typically higher (new iPhones could be $800 or new iPads close to$2000), they can appeal to people of all ages and demographics due to their reputation fortechnological breakthroughs impressive, while still trying to focus on customer targeting (7)According to US statistics, iPhone is most popular among 16 to 24 year olds, with themajority of people in that age group preferring iPhone over Android MacBooks are alsopopular among people aged 24–35, who mainly use them for work or study In fact, 75% ofiPhone users are over 35 years old

1.3 Gender:

5

Product market was not gender-dominated.

Men and women use iPhones in nearly equal proportions

According to 2019 Apple customer demographics, around 51% of all iOS users were female,while 43% were male It is the only major smartphone vendor with a majority of female users.(9)

1.4 Occupation Group

Most of the Apple’s users are highly educated millennial They are career-oriented and leadan active social life Students, executives, managers, professionals are the primary targetmarket of Apple Inc 64% of Apple product users tend to have college degrees They can saythat the apple market is wealthier, more educated and older than the rest of the cell phoneusers as the company offers premium service (8)

Geographical segment devides the market into units such as Americas; Europe; GreaterChina; Japan; and the rest of Asia Pacific Their different approach in different regions helpsto gather more and more customers.

Region2021Americas 153.3

Europe 89.3

China 68.3

Japan 28.4

Rest of Asia Pacific 26.3

Table 3 Apple revenue by region ($ billion) (10)

Figure 5 Apple Segment Breakdown Based on Apple's Q1 of 2022 ended Dec 25, 2021 (10)

Apple's largest geographical market is the Americas, which contributed over 153.3 billiondollars in 2021 and occupied almost 42% in all region’s total revenue in 2021.

In the first quarter of 2022, markets in China, Japan, and Asia Pacific contributed more than37% of operating income and more than 34% of revenue That makes the Asia regiondramatically more important than Europe to Apple for growth and profits.

3 Behavioral segmentation of Apple

Include the well-off individuals willing to spend more on technology products and serviceswith advanced capabilities, functions, and designs With years of evaluating Apple'scustomers' characteristics, it has revealed that most of them tend to appreciate quality,performance, and design of tech products and services over the prices (10)

4 Psychographic segmentation of Apple

Apple is the best venue to see behavioral economics and psychology in action in the realworld:

Apple, utilize psychographic segmentation to create a brand personality that fits into theperception of their users With psychographic data, Apple can communicate luxury,minimalism, and class to its target audience and also create marketing strategies for thedifferent psychographic segments (12)

Their retail experience encourages feelings of ownership Apple revolutionized the way thatpeople shop Going to the store is like going to a club At Apple, you are encouraged to playaround with the computers and hang out, which promotes the Endowment Effect TheEndowment Effect says that when it feels like you own something, you tend to value it more.The longer people play around with your technology, the more customers feel like it's theirs—and the more painful it would be for them to give it up (12)

5 Table of customer segmentations for Apple's iPhone (11)

Type of segmentation Segmentation criteria Devices (iPhone)Geographic Region US and international

Gender Males & Females

Occupation Professionals, managers and executivesBehavioural Personality Determined and ambitious

Benefits sought Sense of achievement and belongingSelf-expression

Speed of service, advanced features andcapabilities

Psychographic Social class Middle and upper classes

=>However, Apple actually has tendency to break barriers in terms of customer segments Apple's concept of target customers is no longer limited to demographics, certain personalitiesor anything related to market segments Therefore apple's target customer is "Everybody".

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This is also clearly shown through advertising and marketing content, they rarely useconfusing technology terms Instead, there are sentences that all ages and classes can easilyhear and understand immediately Thanks to that, Apple's customer base is also very diverse.

Chapter 3.Marketing mix

The most successful of the Apple brand is the implementation of Apple's marketing mixstrategy This model of Apple is implemented according to the following 4P model: product,price, place, and promotion

1.1 Product quality:

.a) Apple and the environment: (13)

To conserve important resources, they work to reduce the material they use and aim to oneday source only recycled or renewable materials in their products Their product designs alsoconsider the safety of those who make, use, and recycle their products, restricting the use ofhundreds of harmful substances iPhone 13 is free of harmful substances like beryllium,brominated flame retardants, PVC, phthalates, arsenic in the display glass, and mercury.

Rare earth elements: They use 100 percent recycled rare earth elements in all magnets,representing 98 percent of the total rare earth elements in the device.

Tungsten: They use 100 percent recycled tungsten in the Taptic Engine Thisrepresents 99 percent of the total tungsten in the device

Tin: They use 100 percent recycled tin in the solder of the main logic board and, forthe first time, the battery management unit.

Plastic: They’re transitioning from fossil fuel–based plastics to those made fromrenewable or recycled sources For iPhone 13, they use 35 percent or more recycledplastic in 12 components The antenna lines also use upcycled plastic from bottles thathave been chemically transformed into a stronger, higher-performance material.Gold: Apple is pioneering industry-leading levels of traceability in recycled materialsto build a gold supply chain of exclusively recycled content For the first time, they’reusing 100 percent certified recycled gold in an Apple product (iPhone 13)—now in theplating of the main logic board and the wire in the front camera and the rear camerasApple has a plan They’ve been carbon neutral since 2020 By 2030, all their products willbe too Their stores, offices, and data centers are already carbon neutral They’ve alsoeliminated the plastic wrap around the iPhone 13 and iPhone 13 Pro boxes, saving 600 metrictons of plastic

Energy efficiency: iPhone 13 uses 54 percent less energy than the energy conservationstandard They design their products to be energy efficient, long lasting, and safe iPhone 13uses software and power-efficient components that intelligently manage power consumption b) Product value:

Their most advanced dual-camera system ever.Durability that’s front and center And edge to edge.A lightning-fast chip that speeds up everything you do.9

A huge leap in battery life you’ll notice every day.

All iPhone 13 models are IP68 water and dust resistant.

iPhone 13 is available in 6 colors including pink, blue, black, white, red, and green.

Figure 6 iPhone 13 product's colors

The iPhone 13 and iPhone 13 mini duo have screen sizes of 6.1 inches and 5.4 inches,respectively The screen uses OLED technology with higher brightness than last year's iPhone12 mini and iPhone 12.

The hardware configuration of the iPhone 13 and iPhone 13 mini includes a new A15 Bionicchip that is up to 50% faster than the competition A15 Bionic is a speed-boosting, camera-elevating, reality-augmenting, power-optimizing, privacy-protecting, game-changing chip

In addition, the A15 Bionic chip also manages power more efficiently.

Outstanding graphics performance: The graphics processing ability of the iPhone 13duo is also 30% faster than competitors

A15 Bionic also power Face ID, the most secure facial authentication in a smartphone2x the storage: iPhone 13 starts at 128GB for all your photos and videos

No one does 5G like iPhone: The world is quickly moving to 5G Streaming, downloading —everything happens so much faster 5G is even fast enough for serious multiplayer gaming,sharing AR videos, and more With Smart Data mode, iPhone will downshift automatically tosave power when you don’t need all that speed.