Apple brand analysis
In the next few minutes, we use behavioural economics to explain five characteristics that have made Apple one of the world’s most successful brands. We then finish by explaining the takeaways that all marketers can gain.
So, without further ado, let’s get stuck in…
Brand Essence
Apple was founded in 1976 by Steve Jobs and Steve Wozniak, with a simple and clear vision. They wanted to transform computers by making them user-friendly and small enough to fit in every person’s home. The company’s name was inspired by Jobs' fruitarian diets, with its selection being “fun, spirited and not intimidating”, according to Wozniak.
The two began in Jobs’ garage and launched the Apple I without a monitor, casing, or keyboard. This subsequently progressed to the Apple II, a personal computer with the first-ever graphic card, in 1977. This coincided with the introduction of the company’s now famous logo, created by graphic designer Rob Janoff. Rob had spent a couple of weeks drawing and simplifying apples in a bowl. He incorporated the bite to signify that it was an Apple and not a tomato.
The Apple II’s quickly propelled the company into awareness and through an IPO two years later in 1980 underpinned by the skills of Jobs and Wozniak. Jobs brandished a visionary attitude and steely determination, often interpreted as ruthlessness, while Wozniak harnessed technical acumen in delivering an ambitious brand vision.
Yet, it wasn’t all plain sailing. The company’s third release in 1980, the Apple III, was a major failure. Wozniak later explained that this was down to a focus on marketing as opposed to product excellence, a useful lesson for later on in Apple’s story. Jobs then decided to hire ex-Pepsi CEO, John Sculley in 1983.
However, he quickly regretted this as it compromised his decision-making ability. The two then clashed during the Macintosh launch in 1984, with it coming to a head in 1985 when Jobs attempted to remove Sculley. It backfired, and the board decided to banish Jobs from his own company. Wozniak also left in the same year, citing a loss of interest in the company’s day-to-day operations.
Despite this, Apple’s grew steadily through the 1980s, peaking in 1990. However, in 1993, Sculley was asked to leave as the shares collapsed. This led the exec board to approach Jobs searching for his experience gained from creating NeXT computers, and the NeXTSTEP operating system.
Jobs rejoined as interim CEO (initially) in 1997. He then forged a relationship with Microsoft to licence its office software, which kick-started the company’s turnaround, followed by a series of new products. Major milestones followed, including the introduction of the iPod in 2001, followed by his seminal moment, with the introduction of the iPhone in 2007.
Meanwhile, Tim Cook joined Apple shortly after Jobs’ return to Apple in 1998. He quickly built his profile behind the scenes, streamlining the company’s supply chain and operations as the Senior VP of Worldwide Operations. He was then required to step in as interim CEO when Jobs underwent treatment for pancreatic cancer in 2004, before moving to COO in 2005. This led him to be the obvious choice to take over from Jobs as CEO in October 2011 a few months before his death.
Cook’s first public announcement began with the launch of the iPhone 4S in October 2011. His track record quickly reassured investors, and the company’s stock market value nearly doubled in the following months. He then steadily built his own brand in the public eye with characteristic calm assurance, leading the company to multiple innovations up to today.
Emotional Resonance
Apple’s emotional appeal took a little while to resemble the slickly produced brand that we know today, with the brand’s early success being the quality of the Apple II’s innovation and popularity with tech enthusiasts. This can be seen from the early print adverts that were functional in nature, often highlighting the benefits of a personal computer, and thus far removed from the latter emotionally oriented brand appeal. This approach evolved after Apple’s IPO in 1980, with a more aggressive approach to targeting Apple’s main competitor IBM in print.
Everything then changed with the launch of Apple’s first TV advert for the launch of the Macintosh in 1984. Created by agency Chiat/Day and directed by Ridley Scott, it first aired during the Super Bowl XVIII with a ‘1984’ theme presenting a dystopian future and firmly positioning an anti-establishment positioning in the minds of consumers. It was followed up by a Lemmings advert similar in nature at the Super Bowl a year later.
Apple’s first commercial
The company’s next major advertising push came a few years later with the Powerbook range in the 1990s, accompanied by a major advertising campaign. However, as can be seen from the commercial below, this was a little timid compared to the boldness of the 1984 campaign, reflecting the cautious nature of Sculley’s reign. This continued through the brand’s launch of the Power Macintosh.
Nike’s first commercial
It wasn’t until 1997 that Jobs started to put an imprint on his second term at the company with the launch of the Think Different slogan, created by Chiat/Day as a response to IBM’s slogan, ‘Think’. It was accompanied by major budgets across print, TV, and outdoor. The slogan’s catchy and inspiring nature was accompanied by a brand focus by profiling famous sportspeople and inventors from the turn of the century.
Apple’s trajectory subsequently changed from provocative to fun and catchy with the launch of the iPod. This started the trend that we know today. Apple products are seamlessly combined with quirky and aspirational lifestyle scenarios. In effect, transforming the product's function into an emotional outcome for the user.
This can be seen in the first iPhone commercial that highlighted the transformative nature of the product by featuring famous faces making phone calls throughout the decades. Throughout the following decade until the present day, Apple has then honed this ability to a slick machine and in doing so, has become a highly uncontroversial brand. The brand’s campaigns now appear slickly contrived, without the edginess of the earlier years.
This new polished aesthetic is clearly visible in the launch of the Apple Watch in 2015. Faced with many possibilities, Apple chose to feature the Watch in situations to highlight its utility. This was a more obvious choice given the brand’s history. However, it was the slick nature of the production that managed to convey emotion.
Celebrity associations
The most significant celebrity throughout Apple’s history has undoubtedly been Jobs, who became one of the most famous people on the planet for fronting the company’s launches. The most notable of which was the iPhone launch.
His management style and entrepreneurial flair subsequently inspired a generation of entrepreneurs as well as films and movies, not least because of the new capabilities that the iPhone delivered for would be app makers.
Beyond this, the brand has used celebrity endorsements both subtly and for impact. The subtlety has been achieved by using a wide range of high-profile celebrities to endorse its products, without being attached to any in particular. Yet at the same time, many celebrities delivered maximum impact during the “think different” launch, as well as the launch of the iPod and iTunes, including Bob Dylan, U2 and the Ting Tings.
Perhaps the success of this strategy is best demonstrated by a time when it didn’t work. Apple paired up with U2 in 2014 for an iTunes marketing stunt. This involved giving away the band’s ‘Songs of Innocence’ album for free to 500 million iTunes whether they wanted it or not. It was not a success, and U2 was later forced to apologise. Irrespective of the awareness that this contentious campaign received, the brand’s association with an ageing rock band was not necessarily equity building.
Most recently, Apple has run a ‘behind the mac’ campaign, which once again repeats the essence of Apple’s relationships with multiple celebrities. Beginning in 2020, the commercials highlighted the lives of creatives using Mac products, such as Kendrick Lamar and Billie Eilish.
Brand Innovation
Apple’s success has been built on a foundation of innovation, notably due to the skill set and ambition of Jobs and Wozniak. For over 40 years, the company has rolled out a steady stream of product innovations that have helped it remain in the mind’s of consumers. However, Apple does not lay claim to being the first in most of these developments. Instead, its ability to connect with customers in a way that inspires them that has defined the brand. This began with Steve Jobs and quickly became a part of the brand’s philosophy.
Cook now focuses on being the best at the expense of being the first. In fact, he is keen to point out that Microsoft was selling tablets two decades before the launch of the iPad. This is of no concern to him as “It doesn’t bother us that we are second, third, fourth, or fifth if we still have the best. We don’t feel embarrassed because it took us longer to get it right,” says Cook.
As well as the hardware innovations that Apple is most famous for, the brand’s software innovation have transformed the company’s fortunes and the tech ecosystem. Notable examples include the launch of the iTunes music store in 2003, the App store in 2008 and Apple Pay in 2014. These sparked the development of many further entrepreneurial innovations.
Apple is also known for its innovation in retail, following the launch of the first Apple Store in 2001. The custom layouts, open spaces and friendly staff made them a destination for curiosity as much as purchasing, and propelled the brand’s success by providing an authentic real-world presence. This contrasted with other tech stores that struggled to provide the same vibe.
Furthermore, Apple’s app store and moves towards securing customer’s privacy, have increased the company’s revenues with the availability of search ads.
Brand Exposure
There are many attempts to break down Apple’s marketing budgets and spend in different channels; however, this is perhaps less significant than the variety of ways that Apple can spend what are major budgets for any global brand.
Apple’s ability to touch consumers in so many channels has provided a means for universal marketing exposure. For example, Mac’s are regularly featured in movies, consumers see iPhones daily whether they have an iPhone or not, Apple stores take pride of place in shopping centres. Furthermore, Apple TV+ promotes Apple’s ecosystem, while the company’s financial success is regularly debated in financial circles. For this reason, every marketing activity must continue to embed the brand in society.
This company’s marketing budgets are also difficult to assess. Apple does not report marketing expenses within financial statements. Instead, breaks operating expenses into ‘Research & Development’ and ‘Selling, General and Administrative expenses’. In 2021, the company reportedly spent just less than $22Bn on both these activities, further emphasising the importance of innovation on the company’s success.
Apple products shape society, with each one being evolved through time. This makes each product iteration a valuable way to drive media coverage, particularly when the products are well received.
Implications for marketers
We hope you enjoyed this brand analysis. Apple’s success is not the result of a single brand attribute, but the company’s ability to combine them all. This is relevant for marketers and entrepreneurs that have been inspired by Apple’s success.
Apple would not be where it is today were it not for Steve Jobs, yet it would not also be where it is today without the financial muscle and global footprint that supports it. Apple has not ‘growth hacked’ its way to success, but instead, it has sought industry leadership in every area. This has taken a deliberate and calculated approach, supported by major investment.
If you’d like Posito to work with you to develop your brand, then please don’t hesitate to get in touch. We’d love to hear from you.
Until next time.
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Five aspects of Apple’s brand
Brand essence
Emotional resonance
Celebrity associations
Brand innovation
Brand exposure