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Editorial The secret of Apple's success in selling premium tech as an affordable luxury By Wednesday, December 19, 2018, 10:08 am PT (01:08 pm ET) Apple's hardware designs, software, icons, marketing, retail strategy, and branding have all been closely copied by its rivals. One thing they aren't copying is Apple's vast, premium installed base of loyal buyers. That's the primary foundation of Apple's wildly successful, global business that's uniquely selling massive volumes of luxury-class, premium-priced products in markets where competitors fight over sales of low-priced commodity units with thin margins. Why can't anyone else achieve what Apple has? Customers in Taiwan at Apple Taipei 101 Previous articles looked at why Apple is now in Fiscal 2019, explaining why it's not, even as it does remove data that has historically fueled of Apple's performance and direction. By focusing attention on the value of its installed base of users, rather than fluctuating unit sales of hardware, Apple is capitalizing on a unique strength: its ability to attract a vast, loyal following that's incrementally growing globally while driving sales of replacement hardware and accessories and allowing Apple to launch entirely new product categories (like Apple Watch and AirPods) and subscription services (like iCloud and Apple Music).

Insanely, bizarrely, and to their own detriment—rather than successfully copying this, Apple's competitors have largely ridiculed the idea of having satisfied users. The bizarre denigration of Apple's user base You don't have to be an Apple fan to recognize this is true. Decades ago, Apple's Mac users were denigrated as a cult because few of them would even consider buying a generic Windows PC.

In the iPod era, Apple's fans were mocked for paying for music and buying premium hardware when cheaper devices existed. And since the debut of iPhone, generic smartphone users have lambasted Apple's ecosystem as a 'Walled Garden' that limits freedom and locks its customers in. Everyone—even Apple haters—agree that Apple has attracted a different class of customer than Samsung, Xiaomi, Google, Microsoft or any other major tech brand. Those firms have even openly mocked Apple and its customer base in advertisements that ridicule Apple's fans for everything from standing in line for the latest new product to simply being part of a large mainstream user base—such as having white EarPods.

Microsoft 'hilariously' mocked Apple users while inneffectually failing to sell boring Windows Phones nobody cared about What's so nutty about the consumer tech industry isn't that there is a luxury brand like Apple that has attracted lots of loyal users that love its products and the way it does business. No, the truly bizarre thing is that Apple has competitors who pretend that this is not normal. In any other market, attracting a significant client base of users is simply a sign of success and competence. There are car buyers who love Toyota or Audi or Ford. There are fans of Instant Pot, Disneyland, Starbucks, North Face, Armani or Chanel. All of these users pay a premium over a generic pressure cooker, visiting a lesser known theme park, drinking regular coffee, or wearing clothes that have no logos or premium brand name. Any company that can effectively establish a relationship of trust with—and appreciation from—a significant population of buyers is generally considered to be doing all the right things: developing a great product that consistently delivers an exceptional experience, and then being there to provide helpful support whenever something goes wrong.