Have you ever wondered why people are waiting in lines to get the new Iphone, however they don't even consider the heavy price tag that comes with it? A price tag of even one thousand dollars? According to Leander Kahney who is an editor and publisher of many apple documents and articles describes the key to Apple's success stems from their impressive branding. The extensive branding and advertising companies, like Apple, do is what raises the incentive to buy the newest product as soon as it comes out. The consumers forget about the pricetag and focus on the satisfaction and how they will “look” once they have the newest Apple Product in their hand, on their desk, or on their wrist.
According to the article, they claim that Apple and their branding is what keeps them flourishing each time. He states “The power of their branding is all that keeps them alive. It's got nothing to do with products." Therefore, the branding is what intrigues the consumers, and it is what brings them to keep buying the newest phone, even if they don’t need it. Also, the branding needs to be recognizable to make a difference in consumer numbers. For example, I can say “golden arches, ” and people immediately know I am referring to McDonald's. Even though it is not high end by any means, the branding makes the consumers buy again and again. With Apple, it is the same deal. According to the Wired article, “The company has a unique visual and verbal vocabulary, expressed in product design and advertising: This is true of Apple. Its products and advertising are recognizable.” They are expressing the need for a company to have strong branding.
It's a wonder why Apple’s margins are so high. If you take a look at how much they sell for vs. how much it costs to make, the margin is huge. Apple can keep their prices so high because they know they have created an enormous following. The article states how building an audience can be down in many ways, from “building trust to establish a community around a product. In Apple's case, its products are designed around people: "Take the iPod, it brings an emotional, sensory experience to computing," Globe said. "Apple's design is people-driven.” This shows that Apple considers the importance of making their product seen everywhere and make it known that you will look “cooler” while carrying around the newest Apple product.
