Why Apple is one of the most valued companies in the world

14 June, 2012

Apple Inc., an American multinational company, was established on April 1, 1976, by Steve Jobs, Steve Wozniak and Ronald Wayne at Cupertino, California. The company was incorporated in January 3, 1977, and was named as Apple computers, Inc. Within a short period of time, the company, through its brilliant use of design and technology, has become one of the most valued companies in the world.

THE COMPANY was known as Apple Computers for the first thirty years of its existance, and then on January 9, 2007, it was re-named as Apple Inc, as its focus shifted towards consumer electronics from its traditional business of personal computers. Steven Paul Jobs was the co-founder, chairman and CEO of Apple Inc., and he also worked as chief executive of Pixar Animation Studios, and was also a member of board of directors of The Walt Disney Company.

According to Bloomberg, interactive data and Thomson Reuters fundamentals, Apple Inc. is on the top of the twenty five most valuable companies in the world. The secret behind the success of Apple Inc. is that it focuses on the market, which is new, trendy and emerging.

Apple, generally, is not the first company to launch a new product, but it's often the first in giving a better version and justifies its tag line, “Think Different”. For example, if we take an iPod, it was not the first portable mp3 player in the world, but it was the first to be successfully designed and marketed, the same can be said for the iPhone in smart phone market, and the iPad in the tablet market.

Other laptop companies are trying hard to provide the best product at the lowest possible prices but the cheapest laptop of Apple is three times costlier than laptops of other companies. Why are the products of Apple so costly? The reason is that they want to make its products as luxurious as possible through as much technological value-addition as possible. Apple is not interested in competing with companies which are racing to the bottom in terms of price.

Great marketing, building on its initial success, is the reason why there is so much hunger for Apple's products - as they have brilliant aesthetics and always intend to take technology forward, which is a very attractive proposition to gadget geeks, hi-end service providers using Apple's products, and gives an immense aspirational auro to current Apple brands, and brand extensions.

Will Apple stay as one of the most valued companies in the world? The credit for the success of Apple Inc. can be entirely given to its great leader, Steve Jobs. After the death of Steve Jobs, there are many doubts arising about the company's survival due to change in leadership. Now, it is the biggest challenge for Tim Cook, the new CEO, to handle the situation properly, and lead the company towards a successful path, without effecting its brand name and values.