Apple business strategies - page 2

May 5, 2003: Just a week after launching the iTunes Music Store, Apple reaches an incredible milestone with more than 1 million songs sold.

Particularly notable is the fact that more than half the songs purchased are albums. This quickly dispels fears that selling tracks individually will kill the record industry’s dominant format. In addition, more than half of the 200,000 songs initially available on iTunes get downloaded at least once.

“In less than one week we’ve broken every record and become the largest online music company in the world,” says Apple CEO Steve Jobs in a press release. “Apple has created the first complete solution for the digital music age — you can purchase your favorite music online at the iTunes Music Store, mix your favorite tracks into playlists with iTunes, and take your entire music collection with you everywhere with the super-slim new iPods.”

It’s a roaring success for Apple’s newest venture!

May 2, 1995: Apple enters the wearables space with its first watch. However, the first Apple watch is a timepiece with no fitness-tracking tech, no on-screen notifications and a whole lot of 1990s styling.

The device comes two decades before wearables actually will become a thing. A regular wristwatch, the freebie gadget is available via a special mail-in offer to Mac OS upgraders.

Apple CEO Tim Cook said Thursday that he expects the tariffs imposed by President Donald Trump to add at least $900 million to the company’s costs during the current quarter, which ends in June.

Speaking with investors after the company announced its quarterly earnings results, Cook also said Apple will assemble most of the products it sells in the United States outside of China this quarter to avoid the tariffs fueling an ongoing trade war between the two countries.

May 1, 2008: The iTunes Store takes a gigantic step toward cinematic relevancy, selling new movies on the day of their DVD releases for the very first time.

“We’re thrilled to bring iTunes Store customers new films for purchase day-and-date with the DVD release,” says Eddy Cue, Apple’s vice president of iTunes, in a press release. “We think movie fans will love being able to buy their favorites from major and independent studios.”

Movies out that week include Cloverfield, Juno, Alvin and the Chipmunks and American Gangster.

April 22, 2013: The world gets its first Apple car. Well, kind of. In reality, the iBeetle is a collaboration with German automaker Volkswagen that offers a car “stylistically linked” to Apple.

This means Apple-inspired colors, a built-in docking station for your iPhone, and a special app that lets you control the car’s features.

April 7, 1997: Apple’s System 7 operating system receives its last update with the shipment of Mac OS 7.6.1.

The update brings a few bug fixes and support for Apple’s new PCI Power Macs and the PowerBook 3400. Most importantly, it marks the end of the System 7 era, which dawned way back in 1991.

March 28, 1996: In a dire message to Wall Street, Apple warns that it will report a $700 million after-tax loss for its most recent quarter.

Apple’s biggest quarterly loss in history, the shocking news reveals a company in far more financial trouble than previously thought. More than half the loss comes from $1 billion of unsold products.

March 15, 2004: The iTunes Music Store hits a musical milestone, having sold an astonishing 50 million songs in less than a year. The achievement cements Apple’s place at the center of the rapidly changing music business — at least for the moment.

“Crossing 50 million songs is a major milestone for iTunes and the emerging digital music era,” Apple CEO Steve Jobs says in a statement. “With over 50 million songs already downloaded and an additional 2.5 million songs being downloaded every week, it’s increasingly difficult to imagine others ever catching up with iTunes.”

March 8, 1997: Apple renames the forthcoming Mac OS 7.7 update, calling it “Mac OS 8.” It’s more than just a name change, though: It’s a sneaky sucker punch that ultimately knocks out Mac clones.

Unfortunately for Mac users, the updated operating system does not deliver the total top-to-bottom rewrite promised by Apple’s Project Copland. However, the renaming strategy turns out to be a brilliant (if underhanded) way of getting Apple out of terrible licensing deals.

March 4, 2014: Peter Oppenheimer, the Apple chief financial officer who presided over a decade of skyrocketing growth, steps down from the company.

After becoming Apple CFO in 2004, Oppenheimer saw the company’s valuation soar from $8.8 billion to $471 billion. Luca Maestri replaced Oppenheimer in this crucial position.

February 28, 2006: Apple introduces an upgraded Mac mini, an affordable computer powered by an Intel processor.

A “headless” Mac for entry-level users, it’s the third Apple computer to switch to Intel chips. Oh, and it makes one heckuva media player when plugged into a television set.

February 26, 2008: Less than five years after launching, the iTunes Music Store becomes the No. 2 music retailer in the United States, second only to Walmart.

In that relatively short period, iTunes sells more than 4 billion songs to more than 50 million customers. The rapid rise to prominence stands as a massive achievement for Apple — and for the revolutionary digital distribution model Cupertino helped pioneer. If you’re looking for ways to use iTunes on MacBook, check out this milestone in Apple’s history.

Apple pledged Monday to invest more than $500 billion in the United States over the next four years. This stands as the company’s largest-ever spending commitment to a market.

Under this investment, Apple will expand its U.S. manufacturing efforts.

January 4, 1995: Apple signs a deal with third-party Mac accessory-maker Radius, allowing the company to build Macintosh clones that run on Mac OS.

Radius is the second company to license the Macintosh operating system. (Power Computing did the same thing a month earlier.) However, Radius will become the first licensee to bring a clone to market when its System 100 ships in March 1995.

December 22, 2013: After months of false starts, Apple finally secures a deal with China Mobile to bring the iPhone to the world’s largest telecom company.

With 760 million potential iPhone customers in the offing, the deal shapes up as Apple’s most important yet for growing its brand in China. In fact, Apple CEO Tim Cook says the country soon will become the company’s biggest market.

Apple reportedly dropped a plan to offer the iPhone to customers as a monthly subscription. It would have allowed customers to pay for handsets as though they were a magazine or software, and upgrade annually.

Those feeling disappointed by the news likely aren‘t aware that Apple already offers a very similar payment plan.

December 18, 2006: Apple fans mourn the death of the iPhone before it even launches. Linksys begins selling a new handset called “iPhone,” Cupertino watchers must come to grips with the fact that Apple’s rumored smartphone probably won’t bear that name after all. How did this happen? Linksys’ parent company, Cisco Systems, owns the iPhone trademark.

While Apple previously released the iMac, iBook, iPod and iTunes, Cupertino didn’t own the name “iPhone.”

December 16, 1994: Apple Computer inks a licensing deal with Power Computing, allowing the company to produce Macintosh-compatible computers, aka “Mac clones.”

With falling market share, and longtime rival Microsoft steaming ahead thanks to its software-licensing strategy, Apple executives think the only way to compete is for the company to hand over its operating system for third-party Macs. Of course, it doesn’t turn out exactly like that…

Apple is expanding its retail presence in Saudi Arabia. In the summer of 2025, the company will launch its online Apple Store in the country, followed in 2026 with its first physical stores there.

December 5, 2002: Cupertino says it served its millionth unique customer in the Apple Store online, marking a significant milestone for the company. It is a benchmark worth celebrating for Apple, which launched its online store just five years earlier.

“Reaching our 1 millionth customer is a major milestone, and is proof positive that our online shopping experience is second to none,” Tim Cook, Apple’s executive vice president of worldwide sales and operations at the time, says in a statement. “The Apple Store is a popular way for a growing number of consumers and businesses to buy Apple products, and with extensive build-to-order capabilities, easy 1-Click shopping and free shipping on orders, it’s never been easier to buy a Mac online.”

Apple continued its impressive run in its next big growth market, India, shipping more than 9 million iPhones from January to September 2024. This represents 35% year-over-year growth for iPhone shipments in the country.

The company also increased its lead over Samsung, the previous leader in India’s smartphone market.

November 22, 2005: Two-and-a-half years after opening its virtual doors, the iTunes Music Store enters the list of top 10 U.S. music retailers. While iTunes sales numbers can’t yet match the selling power of established retail giants like Walmart, Best Buy and Circuit City (or fellow tech company Amazon), this milestone nonetheless represents big news for Apple — and digital music distribution as a whole.

November 20, 2007: In a milestone for iTunes movie distribution, Purple Violets becomes the first feature film to launch exclusively on Apple’s platform.

A romantic comedy directed by Edward Burns, Purple Violets stars Selma Blair, Debra Messing and Patrick Wilson. With limited offers from Hollywood’s traditional players, the filmmakers pin their hopes on iTunes distribution as an alternative way to get their movie in front of viewers.

November 12, 1996: Apple lays out a wild plan to get into the restaurant business, saying it will open a chain of Apple Cafes with a touchscreen point-of-sale system. A bit like the company’s future retail stores — but without the computers and iPhones for sale — the Apple restaurants would open in cities around the world.

The first, Apple says, will be a 15,000-square-foot restaurant in Los Angeles, opening in late 1997.

Spoiler alert: None of this happens.

Guess what percentage of Mac buyers choose the Mac mini. Whatever your estimate is, the real number is probably lower. Much lower.

Despite selling so very few of them, it seems likely Apple keeps making and updating the tiny macOS desktop because many of them go to young buyers just starting on a lifetime of buying Apple products.