Three Factors That Will Fuel Apple's Success Run In 2015

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Feb 19, 2015

Apple (AAPL, Financial), which just declared a wonderful quarterly earnings report, is over the moon for all the right reasons. The management and the employees are confident that Apple will repeat its blockbuster performance for this year as well. CEO Tim Cook has been quite hopeful that a lot of factors are favoring his company to march in the direction of success. Out of all these, what could be the three most influential factors that would help Apple to deliver another fantastic year but also add immense value to its shareholders? Read on to learn more about this.

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Tapping the potential of Chinese market

China is the second major customer for Apple after the U.S. Apple’s management looks at China as a market that will help the company grow phenomenally. Apple‘s iPhones have overtaken smartphones manufactured by Chinese companies like Xiaomi and Huawei. China is a country that has strong localization laws and regulations. In spite of this, sales revenue from the Chinese market has grown from a meager $1 billion to a whopping $38 billion in the last five years of Apple’s presence there. What has made this transformation possible? Apple’s iPhones have a unique style, sleek look, simple yet sophisticated operating system and extremely great technology that none of the other smartphones have today.

According to Tim Cook, Apple opened four new stores during the latter half of 2014 in China, because there was an ever-growing demand for Apple’s products there. All these four stores were opened in strategically important locations like main cities that had population equal to the whole of New York City, in each of them. There were already 19 stores existing in China and this number is expected to go up to 38 by 2016. In a bid to achieve that mark, Apple will be involved in many store launches here, in the near future. Apple has already struck a deal with the three telecom biggies of China namely China Unicom (CHU, Financial), China Telecom (CHA, Financial) and China Mobile (CHL, Financial) and with the 3 major internet service providers there namely Baidu (BIDU, Financial), Tencent (TCEHY, Financial) and Youku Tudou (YOKU, Financial) for distribution of its products in the country.

App store driving success of Apple Watch

The unique nature of its app store was what made Apple achieve success in all its products – be it the iPads or the iPhones. Hence Cook believes that the next new product from his company, the Apple Watch, too, will be quite exciting for customers purely due to its exclusive app store. We cannot agree more. Though there are many smart watches in the market today, Apple Watch will come with the benefit of having a sophisticated App store that the others won’t have. Developers are already working on the app store based on the Watch Kit that was introduced to them. When the Apple Watch is actually launched in the market, it will be powered by some path-breaking features and uses available on its App Store.

Deep penetration of mobile technology into enterprises

Any Apple admirer cannot help but wonder at the uniqueness of Apple’s apps and at the pace at which it creates new apps for different uses. All this is possible with the company’s latest programming language, Swift. Apple is the market leader in creating apps and this encouraged the company to partner with another technology giant, International Business Machines Corporation (IBM, Financial). IBM came with a huge repository of knowledge relating to various verticals of businesses and Apple had the technology to create user-friendly apps for these verticals. Hence they got into a successful partnership that has resulted in the duo creating some of the highly effective apps in different professions. Most of the enterprises are still evolving and learning to transform into mobile technology. This transformation is happening at a healthy pace and with mobile technology looking all set to make deep inroads into all enterprises Apple will stand to gain a lot through its apps.

Conclusion

Apple is indeed the undisputed leader in the smartphones category. However other than smartphones, the company is looking at various positive factors this year to capitalise on and add more value to its investors. The above are just the top three factors that predict the bright future for Apple and its investors.