Apple's Marketing Strategy Business Environment: Term Paper

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Creating applications that are interesting, fun and productive for its customer segments is a high priority that Apple continually invests in over time (Apple Investor Relations, 2013). By analyzing a series of Apple filings with the Securities and Exchange (SEC) in addition to the latest annual reports the following market segmentation analysis of the Apple customer base has been created. Figure 1, Apple iPhone, iPad, iPad2 and MacBook Series Demographics 2013 illustrates the distribution of sales by market segment. Males 18 -- 45 are the largest market segment with 37% of all sales worldwide.

Figure 1: Worldwide Apple iPhone, iPad, iPad2 and MacBook Series Demographics, 2013

Market Segment

Share

Males 18-45

37.0%

Females 18-45

28.0%

Males 45

2.0%

Based on an analysis of sources:

(Apple Investor Relations, 2013)

Apple uses these specific demographics for planning product strategies and also defining segmentation strategies by product line. Apple has shown in their filings with the SEC and throughout their annual reports that the heaviest iPad and iPad2 users males in the 18- to 45-year-old segment. The strong support for gaming, network gaming and productivity applications is driven by this dominant demographic being critical to the success of their iPad business (Apple Investor Relations, 2013).

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Apple has also found that the females in the 18- to 45-year-old segment, which is 28% of their total customer base, are more focused on smartphones and consume a greater number of applications and games on that platform compared to any other segment (Apple Investor Relations, 2013).

The most valuable segment from an iTunes standpoint is also the 18- to 45-year-old females who spend up to 3X the amount on games and chat-based air time than men of the same age group (Apple Investor Relations, 2013). Apple has also seen a marked increase in the use of Face Time in this segment, with the majority of Face Time users being women in the 18 -- 45 age group. The most texting being done is in the 18 and under women's segment of the market, with the majority including photos (Apple Investor Relations, 2013).

In conclusion, Apple is highly targeted on these segments as the profitability of each is critical to their future growth. They are also highly focused on how to bring the most valued segment, the 18 to 45-year-old males, into the overall structure and direction of their new product development process through customer information panels and focus.....

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