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Sell a little, make a lot!
Posted on November 12th, 2009 34 comments
This post up on TechCrunch this past Wednesday, pitting Apple and its relatively small market share, but huge profitability, against the “rest” is worth every entrepreneur’s read. The link is here: Hank34 responses to “Sell a little, make a lot!”
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Article brings up a good point concerning Microsoft’s “I’m a PC ads” that I’ve been making for awhile. “They’re attacking Apple for not competing in segments (low cost PCs) that it has absolutely no desire to compete in.” I think Apple would actually lose profits if they started manufacturing low-cost MacBooks; they would not be as a high-quality as the more expensive models and the brand would suffer.
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Karlis Jansons November 12th, 2009 at 08:51
Apple is in a very good position. They are very profitable and have loyal customers. If they increase their market they will have to expand, which will increase cost and inevitably will lead to quality control problems associated with higher production numbers.
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Quentin Campbell November 12th, 2009 at 09:22
Apple is in the sweet spot right now and I don’t think there is much incentive to try and change something that not only works, it works pretty freaking well. Expanding would just complicate an already working process.
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Zacheriah Ruggles November 12th, 2009 at 09:24
Apple comes across to me as a product that is expensive but yet quality. You get what you pay for in most cases and I believe that Apple is one of those companies for sure.
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Alex Lewis November 12th, 2009 at 09:37
Having been a PC user until my freshman year I can now attest to the high quality of Apple products. Both my Macbook Pro and iMac are the two best computers I’ve ever owned. As a result I know that I have become a loyal Apple customer and I plan to buy a new iMac soon. While the prices might seem high the cost is completely with it.
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Jake Vanhooser November 12th, 2009 at 09:57
I think apple doesn’t need to have a huge market. They sell such good products that they get many repeat customers. I know that I was always skeptical of how great their products were but now I love them.
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Leah Keough November 12th, 2009 at 10:00
I think it ay be safe to continue down the path they are going and enjoy it without getting too carried away. In the future, this may be a great possibility, but Apple is doing GREAT things with what they have right now.
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Andrew Rodriguez November 12th, 2009 at 11:25
its true that Apple doesn’t not need a high market share because, as we’ve seen, they do great with eh small market share that they do have.
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Michael Mullen November 12th, 2009 at 12:07
Apple is perfectly okay with the market share they currently have. Why change something that is very successful?
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Sanford C November 12th, 2009 at 12:17
simple supply and demand put in action
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Rohan Thakkar November 12th, 2009 at 12:33
Apple simply working the supply and demand, they will always be kings at this
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Shawn Tomlinson November 12th, 2009 at 13:45
Apple follows closesly to the 80-20 rule. They recognize that they don’t need to sell their products to everyone but if they can get their prime prospects buying then they are the customers who will drive profits.
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Amber Illig November 12th, 2009 at 14:28
I agree that Apple doesn’t need to change anything about their market share. Also, I agree that they have many repeat customers. Everyone I know that loves Apple, REALLY LOVES Apple, and could argue that Apple is the best all day. There aren’t many companies with that kind of support from their own customers these days. It’s important to keep up respect within a company. Sorry for going off on a tangent, but.. so many companies nowadays are like “frenemies” with their customers, claiming that if you buy their phone or put your money in their bank, you’ll always be protected, you have this warranty, that quality guaranteed, and then when you need something they just send you on some wild goose chase through some voice automated customer service. Hiding from the customer to make extra money is really disgusting me constantly in so many companies right now. It’s becoming really popular in this country. It’s good for these phone companies and banks (I won’t mention which) because they are making a lot of money in the short term through some kind of scam-and yes, in my opinion, these companies are in a way running some sorts of scams. It works out because most of their customers are either stuck in a contract and lured in by some deal again and again, so it takes time to really tick off a customer. But in the long run, people will ultimately switch to the companies who are honest, ethical and realistic with their promises. I believe Apple is one of these companies. So many of my friends have iphones, and with some exceptions, most of them have had their phones replaced immediately if there was any kind of problem. I had a problem with my 3-year old laptop this summer and they took it in for a week, gutted it, gave it a new hard drive, battery, airport card, and a new charger I didn’t even need with a longer extension cord. They treat every customer like they are the only customer or the biggest customer.
Sorry, I have a lot to say about this
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Marisa Strupp November 12th, 2009 at 14:34
Apple seems to be doing best by keeping it simple. The famous economic supply and demand graph is working in their favor. Apply has great customer service and I’d rather be having an Apple then anything else.
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I like the movie:) Apple can always find what people want that even themselves don’t know. That’s why I can always get surprised whenever I search Apple product. It’s really an amazing experience.
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Greg Forney November 12th, 2009 at 15:36
Work smarter not harder.
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Chris Perry November 12th, 2009 at 17:40
I did not realize Apple had that large of a profit margin. I wonder how well they are going to deal with it when the “Hackers” start writing tons of viruses for Mac’s. Presonaly I have owned alot of PCs and my biggest issue hasnt been hardware failures its been viruses in the for of adware or trojans.
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Nick Brenneke November 12th, 2009 at 17:53
I wondered about this same thing a while ago when my brother got an iMac. It was %1,300 or so (not cheap by any stretch) and I wondered why people would buy such an expensive computer when they can get a great PC for hundreds less. While I’m a PC person myself, I can see why Apple is successful – quality products = higher price = larger margin of profit for Apple. I own 2 iPod’s, both of which have been great MP3 players and I couldn’t live without my iPod Touch. In a computer world dominated by PC and Windows-based systems, Apple has a small share of the market, but they have a much better customer base. There are lots of PC manufacturers, but only 1 Mac manufacturer. They’ve created a loyal customer base who is willing to pay a higher price for Apple’s products. They have a great business model. While I’ll stick with Windows for now, Apple does make quality products.
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Lyndsey S. November 12th, 2009 at 19:25
There is always something to say about Apple now! They’re everywhere. In ENTR 200, on my homepage, in blogs, in ENTR 200, Entr 200….oh, and did I say ENTR 200? haha!!
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Olivia Freeman November 12th, 2009 at 21:26
First off, love the picture from my favorite movie pretty women!
I love apple, I like the design and i also like the word because it is my favorite food. I always knew that apple was bathing in profits because it has become extremely popular in the past 5 years. —I mean how could you forget in Legally Blonde when she wants to start doing well in school and she buys that old school orange apple computer. (CLASSIC) its like the wilson ball in Cast Away. anyways sorry for the extremely girly blog. -
It may be better to change than to stay the same. But do it in a smart way.
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Zhihneg Liu November 12th, 2009 at 22:08
Apple’s case is a solid proof that a good business model is one of the most important things in businesses.
The second most important thing is to execute the business model. -
Mayura Davda November 12th, 2009 at 23:11
Apple has always been the apple of my eye! lol ..(just a random thought)
Anyway, Apple is a very potential and a very reliable company and it’s also rated well for customer satisfaction. So, there is every possibility for them to expand in the market and also be able to handle it. In my opinion, they deserve all the expansion possible in the market share! -
Micajah Green November 12th, 2009 at 23:19
Apple does such a great job catering to their customers. I also think apple cutomers feel unique from everyone else. Expansion could be good as long as it is taken slow and done correctly. I really think that Apple knows what they are doing and will do well wherever they go
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Zheng Wang November 12th, 2009 at 23:32
People want to buy those more expensive products because they think products with high prices usually have better qualities. Companies shouldn’t have the thought that the cheaper the products are, the more they are going to sell.
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Brent McClean November 13th, 2009 at 15:24
Apple is product-driven, with very high brand loyalty.
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Sung Jae November 13th, 2009 at 15:52
I really think Apple is a great company that promotes customers based on the quality of the product,which is their competitive advantage. i have i pod touch and it is very convinient it doesn’t break easily. The reason they are so successful is they have the long lasting customers, because customers trust them, no matter what kind of product they produce they will believe them. This will give them long lasting image towards the future, and with the high revenues they can create more better quality products for the people.
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Heath Hiatt November 13th, 2009 at 20:56
Apple takes a lot better care of their customers than most of their competitors. I have a friend who found a broken ipod on the street and sent it in to apple and got a brand new one. They definitely give the customers the benefit of the doubt.
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eugene November 14th, 2009 at 21:34
apple,apple,apple…..apple doesnt seem to do any worngs…am going to do a blog on 10 reasons why apple sucks ……I like that blogger thoe
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Apple has played the game a little diffidently. It can be compared to a horse running in race which starts slow but is able to complete a very long race. They really know what they want and how to get that. I think they have a very nice business plan right now and they should not mess with it for now.
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Kevin B. November 16th, 2009 at 00:00
Apple doesn’t know what they want, they know what the customer wants and how to get them that in a very attractive way. That is what makes apple so much more successful than everywhere else.
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Sree Harsha Uddandam November 17th, 2009 at 00:33
Apple is pretty much trying to change its way in marketing. It is doing goos so far with almost all of his its products.
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I’m not a huge fan of apple. I don’t really get their OS and as far as hardware goes they don’t have much that say, a Dell has. They used to, but they don’t any more. I think they target a specific market and it works very well for them, it’s a great job at marketing.
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Josh Johnson November 19th, 2009 at 15:00
Apple is very smart and always are looking to take another step forward. They are definitely creative and innovative.
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