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Apple announce record profits, but how did they do it?

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After a year of controversy for technology giant Apple, the latest profits to be announced must be good news for folks at its headquarters in Cupertino.

Back in September, Apple caused a stir when it released its latest iPhone models, the 6 and 6 Plus, which became the subject of teasing thanks to ‘Bendgate.’ According to users, the phone, when placed in the pocket of a pair of skinny jeans or put under any other similar kind of pressure, would ‘bend.’

Added to this negative publicity, it emerged in January that former Beats by Dr Dre co-owner Noel Lee was to sue the rap star for millions in lost revenue. After Apple’s buy-out of the brand in May 2014, it was another bad press story which was rather unwelcome.

Despite all this however, Apple has just announced an incredible $18 billion profit – so what is the secret behind their success? Truly, it is down to a number of factors, including innovation, globalisation and expanding into new markets.

Primarily, the globalisation strategy has seemed to have paid off for Apple – despite basing its factories there, the products were previously not selling as well in China compared to their large-screen rivals, Samsung.

While Samsung was enjoying healthy profits in China thanks to its bigger mobiles, Apple held off initially. Now, with the innovative release of the iPhone 6 Plus, which boasts a screen one inch bigger than the iPhone 6, Apple is cleaning up in China. According to the Financial Times, iPhone sales in China made up for around 36 per cent of shipments in the last quarter – 33 per cent higher than sales in the United States.

But while Apple have been innovative in terms of releasing a bigger screen, it is the implications of this larger size that have really begun to cement Apple’s success. While Apple’s prime focus some years ago was music, with the release of the iPhone in recent years it has moved towards communication, and now, with the iPad, the increasingly popular gaming market.

While it seems laughable to think that a portable device could offer the same gaming potential as a console like a PlayStation, today’s advanced smartphone processors are offering gamers a whole new world of opportunities. What’s more, certain fields of gaming are restricted by legislation in the console world – in particular, online gambling. www.casinosagafans.com is one of many sites that are becoming more and more mobile-friendly, allowing gamers to get over any legislative loopholes by turning to their iPhone rather than a console.

So now that Apple has made such huge profits, what’s next for the multinational? It has already tried expanding into the health and fitness market, so could we see a range of gym equipment by the end of the decade? Watch this space.

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  1. Pingback: The Optimal Time to Apply for a Business Loan | Entrepreneur Podcast Network - EPN

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