Tomahawk, WI 11/08/2013 (BasicsMedia) – Any attempt to describe Apple Inc. (NASDAQ:AAPL) often ends up in failure. The company has played a revolutionary role in many aspects. It has a unique business model that is different from those of its competitors in the tech world. Ideally, AAPL should be operating as a hardware company, but this is not what goes on with this firm. AAPL can be mistaken for a major global media company. Its product line is quite narrow for a company with legendary status all over the world. It makes money by mainly selling iOS, iPhones, and iPads to customers around the world.

AAPL Marketing Innovativeness is Laudable

AAPL often relies on its marketing innovativeness to sell its narrow product line all over the world. Thus far, all its marketing gimmicks have paid off handsomely. AAPL is the number one global brand, after overtaking Coca Cola. Whenever it seeks to launch a new product, the company embarks on a media blitz to ensure that the whole world appreciates the fact that it is introducing a new product in the market. Well, these products are not new in the actual sense of the word, but they are upgrades of its previous products, which end up selling remarkably well.

Whenever AAPL is about to launch any new product, this activity is likened to the impending release of any blockbuster. It ensures that every corner of the world is aware of this launch. If Apple Inc is to cut down on its marketing expenditure, the company would suffer a great deal since the exercises have produced amazing results up to this point. Apple Inc is a tech firm that owes a great deal to its marketing ventures. I doubt whether Apple Inc would still have recorded the same in terms of sales and revenue, without marketing, just as it has done with marketing.

AAPL Should Not Limit its Marketing Budget

AAPL cannot afford to cut down on marketing costs, but can improve many aspects of its marketing activities. If anything, I think Apple Inc should increase its marketing expenditure now that it does not boast of a wide range of products. The company still needs to work hard to improve its margins, which are not up to the required levels. It should continue working on a better mix of products instead of relying on the few that it currently owns. Alternatively, entering into a deal with a major tech firm, such as China Mobile, would do wonders for Apple Inc.

There will come a point when the public will probably get tired of a new version of Apple’s iPhone or iPad. When this happens, there will be serious ramifications for the company to contend with and it could lead to poor financial results. Apple Inc should start preparing for such an eventuality by investing in new products, away from its iPhones and iPads. These two products have given Apple Inc an identity and helped with brand recognition. If it intends to survive into the future, it must increase its marketing budget, or come up with newer products.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.