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  • 19 Mar 2022

  • 19 Mar 2022

Apple: A Business Model for Making Profit

Apple Inc. designs manufactures and markets smartphones, personal computers, tablets, accessories, and many more things. It sells a variety of services that includes products iPhone, Mac, iPad, Wearables, Home, and Accessories. iPhone is considered as the line of smartphones based on its iOS operating system.

We know that Apple Inc. is an American multinational technology company that consists the bitten Apple which is well-known in the world. It is one of the highly reputed and recognizable logos in the world, that perfectly symbolizes the clear picture. It brings the customers to deal with real-world objects.

It shows the symbolism of knowledge and clarity. Its use is extremely powerful and highlights the engaging nature. It shows the strong connectivity that brings luxurious nature to the business.

It belongs to the category of Brand marks or Pictorial Mark of Iconic Logo. These are made of a graphic design i.e. symbol or object which represents a real-world object. As simplicity reveals beauty so it should be straightforward, like the outline of an Apple phone. This would showcase the efforts of an organization in a beautiful way. It is associated with real-world objects. A brand mark is often used as a hallmark of a company that is considered iconic. It is always represented clearly to communicate clear concepts with the consumers or audience.


The mission states - to bring the best user experience to the customers through its innovative hardware, software, and services.

Whereas its vision states - to believe that the company is on the face of the earth to make great products and that is not changing. This determines that the company serves its customers with high-quality products.

Core Values

The core values of the company are vital for its success. Its work aligns in a proper direction to satisfy the needs of the customers and ultimately bring prosperity to the business.


It makes the easy to access their products at the sites. It uses enhanced technology, and also innovations to attract the interest of maximum users towards it.

It gives access to everyone, making the people engaged with it. They carry out all their work process conveniently and also ensures the people get ease with their services.


It aims to take care of the environment by delivering quality products to the customers, and also prioritizing the experience of the consumer so that the current customers could receive value from the product.

Apple deals with the interest of the people and provides support, and this ultimately results in improving productivity. The business improves their sales when they get engaged with the needs and requirements of the consumers.

It gives priority to customers which not only increases their value but also promote new value, which keeps them satisfied all the time. It aims to build products that are safe for the environment.


It considers the privacy of the people as important. As it carries sensitive user information, so it designs the product to offer security to its users and provides them protection. It enhances the security features like the face and touches ID, which protects the personal information of the people in being getting tampered. It stops other people to access the mobile.

Supplier Responsibility

It works smartly to always keep its users associated with quality products. It always keeps the interest of the customers on priority. They ensure that the customers are always get satisfied with the services and meet all the requirements.

Business Model

Business, model, Apple

Priority to Products

The company serves its customers with quality products. It knows whether or not the product idea will appeal to the customer base. The company needs to bring on changes in the features of the products continuously. After the changes, there still exists some clients that demand some exceptional features in the products.

It also gathers competitive intelligence to find out how to differentiate itself from other companies with similar products and services. When it faces some issue in the financial performance, then it backs up the quality statements of the company. It provides the company with everything they need.

It always provides satisfaction to all the clients and takes the initiative to attract the interest of the new ones within the services. It also keeps the company engaged with its clients and their interests.

Staying Focused to Acquire Global Presence

They take the network of their company and always stay focused on their work. It also uses its own retail store across the world and works smartly to bring productivity. It works smartly in achieving business goals. Smart work highlights the status and increases the standard of the business.

It contributes quality to the creation of the brand identity and thus enables the customers to purchase the product. It has built up a positive environment in the business, which has helped it in creating a positive image of the brand, product, or services to help escalate its position in the market. It conveys to the consumers and competitors about the dynamic strategy of the business.

Vertically Integrated Business Model

The company performs with the vertically integrated business model. This business model pioneers the way in offering the best user experience to its users. It shows its attribute in involving the designing and manufacturing of its own OS, application software, hardware, and services. It delivers the users easy-to-use products, with all innovations and techniques associated with it.

This helps in improving the supply chain coordination, capture the upstream and downstream profit margins. It also facilitates investments in highly specialized assets. It would also help to increase the market share of the company. It is better for the business in the long run. This enables to increase the market control. A key advantage for consumers is certainly the lower prices of transportation and other operational expenses.

Revenue Model

Revenue, Model, Apple

1. Product Sales


This is the crucial product of the company. The iPhones have a great demand in the market. It also has a rich status which attracts the interest of the people towards it. The company shows its new standard with its iPhone 13 mini, iPhone 13 Pro, and iPhone 13 Pro Max - there is also the iPhone 12 and iPhone 11, and many more.

iPhone has maintained the look and feel of iOS that has not changed over the years. They also maintain their value pretty well and can be resold with a good amount. It consists the Apple Pay which is the most popular method for making mobile payments. It is also very easy to use.


The company also earns from the MacBook laptops and Iconic iMac desktop computers. These are user-friendly and much easier to use. These are believed to be a great selling point of Apple products, along with their accessibility.


The company came up with the iPad in 2010. It is a full-fledged tool that is awesome to be used with flexibility. This helps in creating a positive image of the product, which helps to escalate its position in the market. It conveys to the consumers and competitors about the dynamic strategy of the business. This leads to raising the interest of the people within the services.


The services mark their attribute in bringing profit for the company. The wearables keep the people engaged and happy with it, which leads to future product growth. Apple lumps the AirPods, Apple Watch, HomePod, Beats, Apple TV, and iPhone accessories aligned with the business which brings productivity in hundredfold. Its services business is led by the App Store and Apple Music. Its revenue also marks its way from selling a range of services, such as AppleCare, Apple Pay, iCloud storage services, AppleCare warranties, and also with subscriptions.

2. Subscription fees

Subscription, fees, Apple

The company creates a way of getting a fair amount through the subscription for different apps and software. When the content owners and developers sell their digital content and applications, like AppleCare, Apple Pay, Apple Music, iCloud, iTunes Store, etc, then it charges the subscription fees, which brings a good amount to the business.

It decreases the barrier to entry for products and services and also brings more potential customers to purchase the product. Though they need to pay a huge amount over the long term, but they can get immediate access to the product. This also makes the users enjoy with the increased benefits that are provided as the business grows. It brings the recurring payments which are decided on at the time of initial sale, which brings more revenue each month.

3. Extended Warranty Fees

The company takes the pay from its users for extending the warranty for their products. It has its approach to a wide range, and by using the retail and online stores along with direct sales, it makes sales in to a wide extent in the major markets. It has made its status with the sale of all high-quality accessories.

These extended warranty fees are beneficial for the company as well as for the customers as it brings is peace of mind. Owners pay a little more to have an extended warranty, which assures owners that any needed repairs will be covered. This also helps in covering all the costs other than the initial purchase covered by the insurer. It includes all the repairs required after the manufacturer warranty is covered under extended warranty benefits. It assures the users to continue to enjoy the benefits of the products rather staying concerned about the repair costs.

[The images are being taken from the registered companies and belong to their respective owners only.]