Expiration positioning Apple visualized in positioning matrix
Apple has experienced spectacular growth in recent years. People lined up to get their hands on the latest version, and whether it was an iPad, iPhone, or iPod, the launch guaranteed a lot of excitement. Everyone wanted to be the first to own such a device!
The positioning of Apple still stands for beautiful designs and quality, but something is happening. The fairy tale of the ever-growing brand is beginning to show cracks. Sales are disappointing according to analysts, and the trade press doubts the innovation power. This has consequences for the company’s value. How can this be? We are happy to explain this using our positioning matrix.
Apple’s Positioning Then
Apple was always the thorn in the side, not a mainstream brand meant for everyone. In the early years, the brand was praised by creative people. Designers, musicians, and architects loved it. Somewhat exaggerated: less “hip” people worked with Windows.
Apple always did things differently and was always the first to introduce certain innovations. It also knew how to perfect certain already existing products. A good example of this is the MP3 player. As early as 1998, the South Korean company SaeHan Information Systems brought it to market. Apple’s first iPod followed 3 years later. But who still knows the South Korean company? So Apple did not invent the MP3 player, but it definitely put it on the map. Its own identity (design, innovation, hip) perfectly matched the market perception.
Apple’s Positioning Now
But how is Apple doing now? Of course, Apple still has many admirers and people still line up for the next model. But the brand is definitely under pressure. Walk into any Apple Store and you’ll see that the average age of visitors has risen considerably. We don’t want to claim that older people can’t be hip, but the target group Apple once stood for is now very much in the minority.
The brand’s innovative power is starting to decline, and in the press and corridors, we increasingly hear that a new model doesn’t really offer much more than the previous one. The competition is not standing still and often outpaces Apple in terms of innovations nowadays. The market perception is therefore increasingly out of sync with the brand identity.
It seems that Apple is heading for an identity crisis; the target group it has built on for years is looking for the ‘next big thing,’ and the current customer base is an Apple fan for very different reasons. Apple therefore faces an important choice:
It can continue on the current path, adjust its brand identity to the new and very profitable market position, and align its communication accordingly. Or it must go back to basics and refocus on groundbreaking innovation, design, and ‘hipness’ and less on ‘mainstream appeal.’
We do not expect shareholders to be eager for a return to the brand’s niche days, because even after the recent price drop, the stock’s value has quadrupled over the past year! So count on Apple continuing to use the familiar formula and that truly revolutionary products will come from another direction.
We are curious about your opinion; maybe you see a third option that could save the Apple brand?
This example once again demonstrates the power of the positioning matrix; the positioning choice a brand stands for is made crystal clear. In the original article, we explain the construction of the model.
Want to know more about positioning and how you can get started yourself? Read our page positioning and find, besides in-depth articles, dozens of examples and models for every possible positioning challenge.
