The iPhone dominates JapanJapan is Apple's fourth-largest market, generating about 8% of its sales last year, $14.982 billion. And competitors such as Samsung and OnePlus are threatening Apple in the premium smartphone category. Market segments need to be measurable, accessible, sustainable and actionable in order to be used for marketing purposes. That was up 4% from fiscal 2013. Europe accounted for 22% of salesEurope comes in second, generating about 22% -- $40.929 billion -- of Apple's net sales in 2014. The bulk of Apple's retail stores are in the United States -- 259 out of 437 (nearly 60%) at the end of 2014. Geographic Segmentation Geographic segments are divided from a market by the geographical region of the division, such as city, state, directional region, country, and continent. Segmentation involves dividing population into groups according to certain characteristics. © Copyright 2021 Market Realist. The trade war has imposed heavy tariffs on Chinese imports, meaning Apple could pay tariffs for importing its own products produced in China. But today, Apple is facing stagnation in its own market. Apple's strong bias toward the Americas may be helped, somewhat, by the out-sized popularity of some of its more expensive products in the region. Combining Apple and SAP Technology to create new powerful native apps for iPhone and iPad with the cutting-edge capabilities of the SAP Cloud Platform ... GM of One Customer Experience, and SVP and chief operating officer for SAP Americas, the companyâs largest geographic market. Working in the interest of the nation’s future, Apple is supporting education in coding, technology, science, the arts, and math. Apple generates more than half of its revenue from products. There are two types of market segmentation. The EU has stood by its fine, stating that “Member States cannot give tax benefits to selected companies – this is illegal under EU state aid rules.”. Only then can a strategy be outlined to penetrate the mainstream market. The development gave Chinese smartphone maker Huawei the chance to make its move. How to Invest in Perch Credit—Jay-Z Funds His Latest Venture, The Parent of All Parents: Here's What Berkshire Hathaway Actually Does, Super League Gaming (SLGG) Stock Has a Risky Forecast, the tech industry is showing some growth in Europe. Subject to credit approval. Appleâs net sales have grown over the years. Nov 22, 2019. Apple appears to be focused on China as its most important growth market. Notably, however, Apple's European segment also includes a number of major markets that could eventually emerge as strong growth drivers, including India, Africa and the Middle East. such as Apple competing with Google in the smartphone market.3 Intrabrand competition is, on the other hand, competition within a brand.4 For example, intrabrand competition occurs when Apple stores compete with each other or when Apple stores compete with Wal-Mart stores that sell Apple products.5 In many instances, the * 1. Apple Watch statistics 2018 reveal that ⦠Their strong e-commerce base has made that possible. (2005), categorized demographic segmentation into groups of age, gender, family size, income, education, religion race and generation. With the online presence or official websites in ⦠The following are a list Appleâs tar get market; Plus most Apple stores in the U.S. are concentrated in New York and California, showing that apple caters to ⦠From setting up your device to recovering your Apple ID to replacing the screen, Apple Support has you covered. Most importantly, China’s digital infrastructure is already in place, much like the West’s. If they do not have something in stock, you can request it and they work to accommodate. Apple is known as the global leader in the tech industry, specifically for iPhones. Apple has a well-defined target market focusing on consumer life time value (Kotler & Keller, 2006). They are conveniently located and the staff are friendly. The US remains Appleâs biggest market The US is Appleâs home ground. Demographic Segmentation: Ages 14 - 55, students and business professionals, etc. This presence has influenced different geographies in a distinct manner. Although Apple is considered a premium brand and many products come with a premium price tag, teens are consider one of the primary Apple target market demographics. In line with the current White House administration’s aim to “make America great again,” Apple is investing in domestic suppliers and manufacturing partners. A bigger chunk of the tech-using population relies on free third-party services. For Apple, China is not only a market with a strong iPhone user base but also the manufacturing hub of iPhones. It has fallen in recent quarters, but as recently as the third quarter of 2013, Apple's iPhone accounted for almost two of every three smartphones sold in Japan. It’s perhaps the world’s most recognizable consumer tech brand. Apple (NASDAQ: AAPL) is a global company. Apple watch which is basically a smart watch is being introduced in the market in 2015 and will be a part of the latest category of Apple Inc. As quoted by Apple as this is âOur most personal device yetâ, the features and applications available in the product does seem to support this claim as we will examine going further (Apple, 2015). Segmentation Strategies: Apple ⢠Geographic Segmentation: The retail stores of Apple are located in the highly populated cities around the world. These include Psychographic and behavioral segmentation. The four main bases, which segment a consumer market, are known as Geographic, Demographic, Psychographic ⦠In terms of smartphone market share, the iPhone is more dominant in Japan than any other region. If Apple decides to bear the tariff costs, its EPS could fall by 23% in 2020. Apple, Inc. specifically targets the United States, Europe, China, India, Australia, and South America market. If the situation goes south from here, the production of Apple’s major revenue-making product, the iPhone, would be at stake. The US is Apple’s home ground. North and South America still generate more than one-third of Apple's salesDespite its efforts at branching out, the American continents remain the most important markets for Apple's products. The âGlobal Digital Maps Market Size by Solution, by End-Use Industry, by Geographic Scope, by Competitive Landscape And Forecastâ report has been added to ResearchAndMarkets.comâs offering. Get your questions answered by an expert via phone, chat, email, or even Twitter. In addition to the Genius Bar for hardware repairs, you have more immediate support options. The company has its next-generation stores in 25 countries, including Brussel, Dubai, China, London, New York, San Francisco, etc. Market segmentation is the division of a market into different groups of customers with distinctly similar needs and product/service requirements. Apple is one of the biggest job creators in the US. In May 2016, Fortune, citing Morgan Stanley, reported, “With per capita income of $1,570 as of 2014 and the average smartphone selling for less than $90, a third of the global average, India’s market growth is predominantly led by cheaper phones. This target market is not a specific segment, but unique users from different segments. The Americas are Appleâs largest regional market, followed by Europe and Greater China. Let’s understand Apple’s global presence in detail. Below are Apple's five largest geographic markets based on its full fiscal 2014 sales. I call China Apple’s “second home.” The country is a potentially lucrative market, making high-end products at low cost. This actually represented a 7% decline from fiscal 2013, when the region generated $11.181 billion, or 7% of Apple's sales. Apple's iPhone market segmentation 1. With $74.6 billion in revenue just last quarter, it would have to be. Indian sentiment thrives on budget spending. Apple is still contending with a $14 billion unpaid tax charge. It has created more than 2 million jobs to date and intends to add 20,000 more over the next five years. Apple hires National Geographic podcast producer, report says By AppleInsider Staff | Nov 21, 2019 Apple might be on the verge of entering the original podcast market, as a ⦠In these regions, Apple can now only capitalize on its wearables and Apple services. This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. While Apple doesn't break out its product sales by geographic region, its iPad and Mac have historically been more popular in North America than in other markets. Sam has a love of all things finance. Western markets have very few first-time buyers, and the device upgrade cycle of Apple’s user base has stretched. Since major Western countries have higher GDP per capita than most Asia-Pacific regions, premium consumer tech companies such as Apple report substantial sales in these countries. The iPhone maker will have to recognize the Indian population’s style of smartphone usage. 3.5.2) Demographic segmentation: Kotler et al. According to the company’s 2019 SEC filing, the country alone accounts for 45% of Apple’s revenue. Getting more money from those willing to pay more and ⦠In fiscal 2014, the Americas generated 36% of the company's total net sales -- $65.232 billion. In U.S Apple Inc. has 265 retail stores across 44 states (Apple Inc. 2016). Appleâs iPhone Market Segmentation Introduction about Apple : Apple Inc. is an American multinational technology company was established by Steve Jobs , Steve Wozniak and Ronald Wayne on April 1, 1976 in Cupertino, California. Valid only on qualifying purchases in the U.S. for new Apple Card customers who open an account and use it between 3/1/2021 and 3/31/2021 at Apple Store locations, apple.com, the Apple Store app, or by calling 1-800-MY-APPLE. It has also introduced free software, “Swift,” to teach coding. Apple’s situation in China is looking dicey. Offers may be subject to change without notice. That's up 8% on a year-over-year basis, and about flat as a percentage of Apple's total revenue (though down slightly from 2012, when Europe accounted for 23% of Apple's sales). Apple will have to shape its product and pricing strategy so that it can penetrate the budget-oriented Indian smartphone market. Teenagers : Teenagers are considered one of Apple Inc.'s target markets. In addition to US developers, European developers also contribute App Store content.