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Five big things that have made Apple

By Sarah Porter BBC News, Singapore

3 August 2018

It's been called the most successful company in history.

And it's just become the world's first public company to be worth $1 trillion

( 767bn).

So how's it done it?

Here's a quick look at five of the biggest things that have helped make Apple

the gigantic success story it is today.

1. Steve Jobs - a brand unto himself

As the co-founder of one of the world's most successful companies, his is one

of the most recognised names in the world of tech.

He put Apple at the forefront of the personal computing revolution, and was

behind a suite of revolutionary, highly desirable products - from the iPod to

the iPad.

But he was also recognised as one of the modern world's first auteur chief

executives - and became a brand unto himself.

From the time he founded the company with Steve Wozniak in 1976 in Silicon

Valley, California, Apple was seen as a firm that was set to achieve great

things.

Apple shares were in such high demand that by the time it opted for a flotation

in 1980, it became the biggest stock market launch since Ford in 1956.

In 1985, Mr Jobs was famously ousted from the firm he founded after a falling

out with chief executive John Scully.

But by 1997, after Apple had been operating at a loss for 12 years, Mr Jobs was

asked to return.

He quickly set about scrapping various projects and introduced Think Different

- a campaign designed to promote Apple and its products, and revive employee

morale. The firm quickly returned to profitability.

When Mr Jobs died in 2011, US President Barack Obama said the world had "lost a

visionary".

Apple just wouldn't be Apple without his name behind it.

Profile: Steve Jobs

2. The iPhone - a revolution

Launched in 2007, the impact the iPhone has had on modern mobile communication

is unmatched, and unquestionable.

Almost 1.4 million iPhones were sold in the first year they were on the market.

Competitors such as Nokia and Blackberry, which had dominated the mobile phone

market, were quickly knocked out.

While Apple recently dropped to third place in the battle of the world's

biggest smartphone makers, behind South Korea's Samsung and China's Huawei, its

iPhones are still clocking strong demand worldwide.

Apple sold 41.3 million of them in the three months to June this year - and

about 216 million worldwide last year.

Moreover, Apple's bottom line is still largely determined by their sales. In

the most recent quarter, 56% of Apple's revenue came from iPhone sales.

But perhaps more importantly for Apple's future - the iPhone is a gateway to

the company's booming services offerings.

3. Apple services - and brand loyalty

Think iTunes or Apple Music, the App Store, iCloud and Apple Pay.

These are just some of the things that make up Apple's services business - and

they're regarded as the firm's most important and fastest-growing drivers of

revenue.

In the three months to June this year, Apple's services saw revenue growth of

31%.

And while the iPhone might be a gateway to Apple's offerings, things like Apple

Music and the App Store, in turn, help drive brand loyalty.

If a consumer truly loves using their iPhone to buy music and movies, Apple's

hope is that they'll move on to purchase an iPad, a Macbook, an Apple TV or

watch.

"That's the financial genius that sits inside that brand - getting consumers to

keep buying the hardware," says Paul Nelson, managing director of BrandMatters.

"Strong brands have clients who are simply disinterested in alternatives - and

that's where Apple's strength lies. The fact that you just become a loyalist."

4. China - and growth

Without China, the world's biggest smartphone market, Apple's success would

look quite different.

Mainland China generates about a quarter of Apple's profits.

In addition, most of Apple's iPhones are manufactured in Shenzhen in southern

China

And while the company suffered a rough patch between March 2016 and July last

year - when its Greater China revenues saw double-digit falls - the tech giant

has now reversed those fortunes.

Since September 2017, Apple has seen double-digit year-on-year revenue growth

across the Greater China region.

How? Well, the iPhone has remained a symbol of wealth and prestige among

China's growing middle-income, big city dwellers.

So despite the stiff competition from cheaper home-made brands, Apple's more

lucrative iPhones, iPads and Macs have helped repair its regional revenue

numbers.

5. The Apple brand today

The Forbes list, which measures the value of a company's brand by looking at

its financial numbers, has ranked Apple as the most valuable brand for the last

eight years in a row. This year, it was valued at $182.8bn.

Now Forbes may only analyse companies with a presence in the US, but compare

Apple's brand value to that of Coca-Cola's - a one-time world leader in terms

of brand recognition - this year valued at just $57.3bn.

For those of us born before the turn of the millennium, it's probably difficult

to imagine a world without Coca-Cola signs somewhere along our local shopping

streets.

But for the generations that follow, the instantly recognisable eaten apple

seems set (so far) to be one of the brands of the 21st Century.

"The thing that Apple has been able to do, that Coca-Cola hasn't been able to,

is to remain relevant and contemporary," says BrandMatters' Paul Nelson.

"They have kept the human at the centre of their ecosystem, and at the centre

of everything they do. Their whole brand is about humanising technology.

"The reason you get to a trillion dollars is that you create in your business

model built-in barriers for customers to move elsewhere. And Apple is just that

- it's a complete ecosystem."