How Did Apple Get So Big?

In 2018, Apple made history as the first U.S. company to reach a $1 trillion market capitalization. Two years later, it became the first to surpass $2 trillion. This year, Apple is on the way to hitting a $4 trillion market cap. Apple’s success has roots in design, innovation, and strategic vision, yet it’s also a story of setbacks, CEO changes, and high-stakes risks.Photo via Oberlo // A graph showing Apple's market cap from 2010-2024. Shown in billions.

Key Points

• Founded by Steve Jobs and Steve Wozniak in 1976, Apple began with the Apple I, followed by the Apple II—a cornerstone for the company.
• Apple's trajectory includes the Macintosh, iPod, iPhone, and now Apple Watch, Apple TV, and Apple Silicon processors.
• Apple’s market dominance stems from a unified ecosystem of hardware, software, and services, making customer loyalty a hallmark of the brand.

Origins: The Apple I and II

Apple’s journey began with the Apple I, a basic motherboard developed by Steve Wozniak, while Steve Jobs spearheaded marketing. The duo’s second computer, the Apple II (1977), established Apple’s place in the tech world.Photo via WIRED // The Apple IIe being used in the modern day. Apple II is widely seen as a pivotal moment for the tech industry.

Apple I will be remembered not just for being one of the first kit computers, but for enabling Apple to build the transformative Apple II.— Andrew Beattie

The Apple II sustained the company until the mid-1980s despite missteps with other products like the Apple III and Lisa.

From Macintosh to Jobs’ Return

In 1984, Apple launched the Macintosh, pioneering user-friendly computing with a graphical interface. Yet, by 1985, Apple struggled with low revenues and internal clashes, leading the board to dismiss Jobs in favor of CEO John Sculley.

Steve Jobs moved on to found NeXT Inc., while Sculley expanded Apple’s product lines. However, by the 1990s, Microsoft’s Windows OS dominated the market, and Apple’s proprietary software faced dwindling appeal. Two CEOs later, Gil Amelio opted to acquire NeXT Inc., facilitating Jobs' dramatic 1997 return to Apple.Photo via CNBC // Steve Jobs returns to Apple after being fired by his own company.

Jobs’ Legacy and the Rise of the Apple Ecosystem

Jobs’ second era at Apple redefined the company’s trajectory. The release of the iMac in 1998, a vibrant all-in-one computer, was a design revolution that emphasized Apple’s pursuit of beauty and simplicity. Jobs’ mantra was clear: design and ease of use would be central to Apple’s identity.

This vision extended to a line of landmark products—the iPod, iPhone, MacBook Air, and iPad. Apple didn’t just make gadgets; it cultivated a full “iEcosystem.” The App Store and iTunes became crucial for consumer loyalty, locking users into Apple’s suite of hardware and services. Once in, users found it difficult—and often unnecessary—to leave.

Every product Apple launches builds a stadium, sets the rules for the game, and reaps the benefits.— Andrew Beattie

Beyond Jobs: The Cook Era

In 2011, Tim Cook took over as CEO. Though critics initially doubted Cook’s creative chops compared to Jobs, Apple thrived under his leadership, unveiling the Apple Watch and transitioning to in-house Apple Silicon processors. Cook also emphasized services revenue, with platforms like Apple TV+ and Apple Music.

Under Cook, Apple’s revenue soared, buoyed by new subscription models and consistent updates to its hardware lines. However, critics argue Apple has shifted from revolutionary to iterative product cycles.Photo via Apple Scoop // Apple's latest lineup of Macs, including the M4 MacBook Pro, M4 Mac mini and M4 iMac, released in late October 2024.

Apple’s Net Promoter Score (NPS): A Key to Brand Loyalty

Apple’s NPS score reflects customer loyalty and satisfaction, scoring 72 in 2022, well above industry norms. Net Promoter Score (NPS) is a metric that measures customer loyalty and satisfaction by asking a simple question: "How likely are you to recommend our product/service to a friend or colleague?" Apple's score, a measure of their customer enthusiasm, comes down to consumer-focused touch points like the Apple Store, Genius Bar support, and intuitive device integration.

Factors boosting Apple’s NPS include:

High Attention to Detail

Apple products are known for their meticulous design, where every detail serves a purpose. Take MacBooks, for instance: the subtle indentation below the trackpad isn’t just aesthetic—it’s carefully crafted to make opening the lid with one hand feel effortless. Plus, the laptop’s weight distribution is perfectly balanced, allowing the lid to lift smoothly without the base shifting.

Customer-Centric Support

Apple’s Genius Bars and Apple Support App ensure that help is accessible at every stage, giving customers confidence that issues will be resolved seamlessly.

Simplicity and Innovation

Apple products integrate across devices, making them simple to use and fostering a sense of familiarity that many competitors struggle to replicate.

Focus and simplicity. You have to work hard to get your thinking clean to make it simple.— Steve Jobs

The Bottom Line

Apple’s journey from the Apple I to a $3.5 trillion company underscores its dedication to visionary products and a unique customer experience. While its product innovation has slowed under Cook, its ecosystem strategy continues to secure customer loyalty.

Apple’s success lies in “selling an experience, not just a product.” With every iPhone, iPad, and Mac, Apple offers not just a tool but a carefully crafted experience that resonates with consumers worldwide.

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