Apple Sales By Distribution Channel - FourWeekMBA (2024)

FAQs

What is the channel of distribution for Apple? ›

Apple Distribution

In 2023, most of Apple's sales (63%) came from indirect channels (comprising third-party cellular networks, wholesalers/retailers, and resellers). These channels are critical for sales amplification, scale, and subsidies (to enable the iPhone to be purchased by many people).

iPhone Statistics

As Apple's most popular and valuable product, the iPhone has been the company's main source of revenue since 2008, a year after its launch. Apple's invention of Watch and AirPods did not diminish the attractiveness of its iPhones. iPhone still accounts for 50% of the company's revenue.

The APPLE tactic follows

A (approach) - personalized approach and warm greetings. P (probe) - try to understand the customer's needs. P (present) - present the solution for the customer's needs. L (listen) - listen to the questions and answer to them.

Apple has distinguished itself from other brands through product innovation and consumer-centered branding. SM Distribution is an authorized distributor of Apple products and we can offer you the full spectrum of Apple products — from iPads to AirPods.

A distribution channel is the network of businesses, individuals, and intermediaries facilitating the journey of a product or service from the manufacturer to the end consumer. It encompasses the various pathways used to deliver goods to their final destination, such as wholesalers, retailers, and the Internet.

Besides a company-owned retail store system, Apple also construct a worldwide solid indirect retail network with a of Apple authorised distributors, wholesalers and retailers some of whom have their own high-quality e-commerce platforms such as Amazon.

Although the iPhone and services dominate Apple's revenue streams, the company's portfolio of other products also contributes significantly to its bottom line. Products like the iPad, Mac, Apple Watch, and various accessories have garnered a substantial customer base and continue to generate revenue for Apple.

The iPhone is Apple's flagship product and its best-selling device by far. In 2022, Apple sold over 232 million iPhones, accounting for more than half of the company's revenue. The iPhone is popular for its sleek design, powerful performance, and innovative features.

In general, the company uses a selective distribution strategy, which involves some degree of exclusivity that could limit market reach. Apple authorizes sellers to ensure control over this component of the marketing mix.

In terms of unit sales, Apple witnessed an increase from fiscal year 2020 to fiscal year 2021, going from approximately 196.89 million to about 217.72 million units sold globally.

What are the four Ps of marketing Apple? ›

Key Takeaways

The four Ps are product, price, place, and promotion. The concept of the four Ps has been around since the 1950s.

The Apple Store is a chain of retail stores owned and operated by Apple Inc.

Apple Inc. manufactures most of its products in China through partners like Foxconn. Apple's decision to outsource its manufacturing has received significant criticism, due to allegations of poor working conditions, long work hours, and other labor rights violations.

Apple's Global Supply Chain Operations and Partners

In Taiwan, Apple partners with Foxconn, which is one of its largest and oldest suppliers. Foxconn has approximately 35 supplier locations around the globe, including in India, Brazil, China, and Vietnam, with factories manufacturing components for Apple's products.

Apple implement multiple distribution channels including direct and semi-direct, company-owned stores and other authorised parties to distribute their products and services to their target customers and consumers.

Place or Distribution: Apple's marketing mix strategy channel takes advantage of both online and offline distribution channels. They sell their products through channels such as Apple Store locations, company-owned websites and online stores.

Apple involves the use of both Direct and Indirect distribution channels.

Apple's Marketing Channels

Their main channels include mobile phone network carriers (Optus), Apple online stores (Company-owned), online marketplaces (Amazon), wholesalers, department stores (Myer), Apple retail stores (Company-owned) and consumer electronic superstores (JB Hi-Fi).