Distribution strategies are a major key to success, which are maximizing sales and profits.

Apple is utilizing from distribution strategies by using multiple channels, especially including direct or semi-direct sales and different distribution channels for different products. By pursuing this strategy, Apple increases its market coverage, lowers channel cost and provides more customized selling. Apple has 301 retail stores in ten countries and online stores serving to 36 countries where hardware and software products are sold. Moreover, it has 3000 retailers and 320 large distributions. Apple has been slowly adding other distribution channels with high sales volume. Selective distribution revealed itself at this point. A small number of

retail outlets are chosen to distribute the products. For instance AT&T, Best Buy and Wal-Mart are selling Apple products in their stores. All of the phones require a new two-year service agreement from AT&T or a qualified upgrade. AT&T is the only provider of the iPhone in the US. The smartphone achieved big success in sales. But still AT&T was criticized because the iPhone did not cover in major urban areas like New York City. Apple also has its network of stores, which gives it a major advantage in distribution. Apple is expanding and improving its distribution capabilities by opening its own retail stores in key cities around the world. Apple provides Apple Mac-expert retail floor staff to selected resellers' stores. It has entered into strategic alliances with other companies to co-brand or distribute Apple's products and services. For example, HP is selling a co-branded form of iPod and pre-loading iTunes onto consumer PCs and laptops.

Apple has also increased the accessibility of iPods through various resellers that do not currently carry Apple Macintosh systems (such as Harvey Norman), and has increased the reach of its online...

Apple Marketing Strategy

Apple has been so successful in these last years thanks to his fresh, imaginative way to think and do its business: a winning combination of exceptional products, great style and design, great strategy, innovative marketing, sleek and enticing communications.

Apple owes its overwhelming success in the last years to the iPhone and to the smart iPod and iTunes product combination, a combination of a great hardware piece with great style, great software, great performance, user friendly interface, with a good e-business service. The iPod + iTunes halo effect and new great Mac computers and Mac OS software did the rest in increasing Apple revenue stream.

In the 5 years between 2003 to 2008 the Apple share value increased 25 times, from $7.5 to $180 per share. At july 2008 prices, before the US Financial Crisis, Apple stock market capitalization was $160 billion. In January 2010 Apple shares topped the $210 mark.

But even the best companies with the best products have bottleneck factors which often avoid full exploitation of the opportunities.

The iPod.

Few people are aware - and few market analysts too - that for the first 3 years the iPod was an absolute flop. The iPod was launched in october 2001, and between 2001 and 2004 iPod sales were between 100-200 thousand units per quarter, very far from today's 10-20 million units per quarter, and the iPod sales were not even covering the product research & development costs. Then, in June-Aug 2004 something happened, and iPod sales began to grow strongly, quarter after quarter. Today, we all know where the iPod stands, and what a remarkable success it is.

The iPod made the fortune of Apple, and it stands out as the major turning point in the company growth.

Few people know that the iPod + iTunes business idea was not conceived inside Apple, but was proposed to Apple by an outside source, a music lover and Engineer named Tony Fadell.

More on Tony Fadell and on the iPod marketing on iPod Marketing Strategy

The iPod marks another outstanding result in marketing: the annihilation of competitors. To know more see the analysis on The iPod competitors

It should be noted that, since the second generation of iPods in 2002, the iPods were made compatible not only with the Mac operating systems but with Microsoft Windows operating systems as well.

We should ask ourselves (and to Steve Jobs): how many iPods would have been sold if the iPods would had been compatible only with Mac operating systems? Where the iPod is manufactured and assembled

The iPhone.

The pipeline of new products which came out from Apple in the last years is impressive, and overwhelming. In 2007, with the successful launch of the iPhone, Apple has marked another milestone in its development and growth.

And moreover, the iPhone enters a market - the market of mobile phones - a market which is mature, and saturated. Nonetheless, Apple has been able to develop a revolutionary product, and to change the paradigm in the mobile phone market.

The iPhone is 5 years ahead of all its competitors. A wonderful product, amazing user interface, great design. It is not only a mobile phone, it is a product between a mobile phone and a laptop computer. Even calling it a smartphone is not enough. In July 2008 Apple launched the second generation iPhone, the iPhone 3G.

The iPhone 3GS.

In June 2009 Apple launched its third generation iPhone: the iPhone 3GS. The iPhone 3GS has a 3 megapixel autofocus camera, video recording and editing capabilities, voice control, longer battery life, 7.2 Mbps HSDPA internet connection. iPhone 3GS is twice faster than the iPhone 3G. The iPhone 3GS prices: $199 for the 16GB model, $299 for the 32GB model. more on the new iPhone 3GS on the iPhone 3GS page. More on iPhone Marketing on the iPhone Marketing Strategy page.

Apple did great. no doubt. However Apple has done some serious mistakes.

The most serious mistakes Apple has done concern marketing and distribution strategies in Europe. Apple has overlooked the European markets, and missing big numbers in unexploited sales. With better marketing strategy, better communication and distribution, Apple could have made 300% more revenues in

Europe in the last 4 years. Apple Marketing in Europe

We met with with Erik Stannow, Apple Vice President of Marketing for Europe & EMEA. We have been talking with Erik Stannow about the marketing and distribution issues of Apple in the European markets and we gave some valuable suggestions to improve the Apple marketing strategy and distribution in Europe. Well, it seems that in Cupertino they don't care so much about Europe.

Steve Jobs

If we talk about Apple success, about Apple great products, we need to talk about Steve Jobs. Steve Jobs has been and is the great mind behind all this. Steve Jobs is a genius, he is a magician, too. He is the most skilled guy in introducing new products - "... one more thing" - the most skilled in presenting the key features, and he is a great communicator.

Even more important, Steve Jobs has Vision. Vision in the strategy, Vision in the product development, Vision in the alliances.

Apple Communication Strategy.

Apple communication is sober, intriguing, simple, clear, minimalist and clever. And it has a style of its own. Both in the tv ads, both in print ads, both in the online communications. A lesson to be learned by many companies in the world. Well, of course when you have great products it is much easier to entice the costumers, but nevertheless doing it with style and cleverness is a very good point. It boosts sales, but enhances the brand value too.

The famous "I am a Mac, I am a PC" tv ads are a milestone in communications. Smart, simple, effective and humiliating (for Microsoft ...).

More on Apple Communications and on the Apple Commercials "I am a Mac I am a PC" on the Apple Communication Strategy page.

Vertygo Team Ranking on Google

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Cast Your Vote on Apple Products

If you wish you can cast your vote on Apple products, on the iPhone, on the iPod, on the iMac, about the Apple Marketing Strategy. vote using numbers from 1 to 10:

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Apple Distribution
Distribution Apples upstream partners are the manufactures Foxconn Technology Group, which also manufactures Apple's iPod, iPhone and Mac Min. It is headquartered in Tucheng, Taiwan but it manufactures the Apple products in its largest plan in Shenzhen, China. However Apple does not disclose the makers of

its components, research shows that various parts and suppliers include: * Apple A4 SoC: Samsung.[13][98] * NAND flash RAM chips: Toshiba; except Samsung for the 64 GB model.[99][100] * Touch-screen chips: Broadcom.[99] * IPS Display: LG Display * Touch panels: Wintek. (Got the job after TPK Touch Solutions was unable to fulfill its orders, delaying the iPad's release from late March to early April.[101]) * Case: Catcher Technologies.[102] * LCD drivers: Novatek Microelectronics.[103] * Batteries: 60% are made in Taiwan by Simplo Technology, 40% by Dynapack International.[67][104] * Accelerometer: However Apple has many more downstream partners, even though it has its own personal retailers with select Apple stores in various locations. Apple also takes advantage of the many outside retailers to make sure its product is received by their consumers at convenience. A few of their biggest retailers are the big technology suppliers like Best Buy, Wal- Mart, Target, Radio Shack, and Sams. By doing this Apple is able to reach an array of customers while also providing them the option to visit a specialty Apple store to get the full effect and experience that the Apple Stores offer. Apples channels of distribution are indirect marketing channels, containing one or more intermediaries. Apple designs, manufactures, and markets smart personal devices addressing the consumer electronics space through its online stores, its retail stores, its direct sales force, and third-party wholesalers, resellers, and value-added resellers. Apple now allows its largest distributors to provide all six models of the iPad...