Imagine a device that changes the way the world operates. When it was first introduced, it was considered revolutionary, a symbol of innovation and technological excellence.
In a short time, the iPhone became more than just a communication tool; it became a status symbol, a lifestyle icon, and even a sign of success. But behind all this illusion lies a dark side, rarely discussed—a cunning yet manipulative business strategy designed to lock users in, creating social trends that resemble a cult, and ultimately transforming their product into a matter of prestige rather than function.
Moreover, there are app developers monopolized by exploited labor and a country drained of its wealth. This is Apple, the company with the most unethical business practices on the planet.
The year 2007 marked a historic moment when Apple introduced the iPhone—a device that eliminated physical buttons and replaced them with a responsive multitouch touchscreen. Although Apple was not the first to pioneer touchscreen devices, they perfected the technology, allowing users to operate the screen intuitively with their fingers. This was not just an innovation; it was a giant leap toward the digital future.
However, Apple’s success didn’t come without competition. Just months after the iPhone’s release, Google unveiled Android, an operating system designed to directly compete with Apple. Android offered flexibility that the iPhone lacked—users could easily transfer files, music, or videos via USB cable to a computer or Bluetooth to other Android users. In contrast, Apple built a closed ecosystem where users had to navigate a complex process using iTunes, even for something as simple as transferring photos.
Apple’s Marketing Strategy: The Illusion of Exclusivity
Initially, the iPhone was known as a sophisticated and functional tool, but it quickly transformed into a status symbol in the age of social media and the mirror selfie trend, with iPhones flaunting the Apple logo on their backs. Whether this was purely an organic phenomenon or part of Apple’s marketing strategy is difficult to determine, but the effect is undeniable: the iPhone began to be seen as more than just a technological device; it became a symbol of prestige, status, and modern lifestyle.
Apple further reinforced this image with striking yet simple product designs, such as the MacBook with its illuminated Apple logo. These products were not just designed for functionality but to assert their presence—something that needed to be seen by others. This trend started in the United States but quickly spread worldwide through social media, turning the iPhone and other Apple products into a symbol of luxury coveted by many.
The peak of Apple product obsession can be seen in the long lines that form every time a new iPhone model is released. In various countries, people are willing to stand for hours or even camp out in front of Apple stores just to be the first to get their hands on the device. This phenomenon raises a big question: is this pure enthusiasm from fanatic users, or is it part of a deliberate marketing strategy? There has been speculation that some of the people in these lines are paid actors hired to create the illusion of exclusivity and high demand.
If true, this strategy is highly effective in crafting the narrative that the iPhone is a must-have product, no matter the cost. On the other hand, we cannot ignore the genuine fanboys who are willing to do the same simply because they are obsessed with being part of the exclusive iPhone community. Unfortunately, this obsession often appears irrational, with many people willing to waste time, money, and even their dignity just to get the device first.
This phenomenon demonstrates the powerful allure of the prestige Apple has built, even when there is no real urgency to get the device on the first day of release. With such phenomena, Apple isn’t just selling a product; they are creating a psychological experience that makes consumers feel special for being among the first. This is a brilliant yet manipulative marketing strategy that taps into the human need to feel superior and accepted. Ultimately, whether it’s Apple’s shadow strategy or impulsive consumer behavior, the fanboys and long lines are tangible evidence of how Apple has successfully sold more than just technology—they’ve sold the illusion of luxury and exclusivity.
The Apple Ecosystem: A Closed System Designed to Create Dependency
Apple, once known for its innovation, has now perfected its business strategy to lock users into its ecosystem with every product they release. They no longer just sell devices; they create dependency. Features that should be simple, like sharing files via Bluetooth or easily accessing files using a USB cable, are unavailable on the iPhone. Even something as basic as transferring photos from a computer to an iPhone requires the use of iTunes—a convoluted process compared to Android’s plug-and-play simplicity. Apple claims this is simplicity, but in reality, it’s a tactic to keep users within their product circle.
The introduction of the Apple Watch further strengthened this strategy. This smartwatch can only function optimally when paired with an iPhone, making it almost mandatory for iPhone users to own an Apple Watch to enhance their experience. There is no option to connect the Apple Watch to Android devices or other platforms. Features like health tracking, notifications, and fitness tracking services are all designed to be inseparable from the Apple ecosystem. Moreover, the Apple Watch employs a strategy similar to the iPhone, building a social image with its sleek design and advanced features, turning it into another status symbol worn on the wrist. This watch is not just a technological device; it’s a statement that you are part of the exclusivity Apple offers. As a result, users feel compelled to continue purchasing other Apple devices to enjoy the simplicity promised by the brand.
Products like the MacBook, AirPods, Apple TV, and accessories such as the Apple Pencil and MagSafe further reinforce this ecosystem. On the other hand, users attempting to break free from the Apple ecosystem often face major challenges, from losing synchronization to features no longer being compatible. With this strategy, Apple has created an ecosystem that appears to be a technological paradise on the surface, but underneath lies a subtle trap that’s difficult to escape. Each new product release, like the Apple Watch, is not just a technological device but a tether that binds users even more tightly into the closed ecosystem.
Apple’s Decline in Innovation: A Shift from Technological Advancements
After the departure of Steve Jobs, Apple slowly lost its way in product innovation. They no longer introduced groundbreaking innovations like the original iPhone. Instead, many of the features they introduced were merely copies of technologies that had long existed on Android. Features such as widgets, fast charging, foldable screens, and high-zoom optical cameras are just a few examples of Android innovations that Apple only recently adopted. However, what’s interesting is that Apple’s failure to innovate hasn’t affected their sales. The Apple brand remains strong because of their marketing strategy, which focuses on image rather than technology.
iOS 18.2 will introduce a new feature that estimates the time it takes to charge an iPhone. pic.twitter.com/63COsGfM2i
— Apple Club (@applesclubs) November 7, 2024
Apple has successfully sold something more abstract and emotional—social status. This phenomenon has reached various segments of society. Ironically, when Apple products like the iPhone and MacBook were first introduced, they were often associated with professionals and the upper class—users who truly utilized the devices for work or productivity. However, the trend has shifted. Apple has now become a symbol of lifestyle, leading many people to sacrifice their income just to own an iPhone for the sake of social status. Some even fail to understand or fully utilize the device’s features.
For them, owning an iPhone is not about technology but about image. On social media, showcasing an iPhone is seen as a symbol of stability and success. This trend is not limited to developed countries; it has also taken root in developing nations, where social pressure to appear successful has led many to purchase an iPhone, even if it means taking out long-term installments or sacrificing other essential needs. This is a concerning paradox. Apple, once synonymous with technological innovation, is now more widely recognized as a product for prestige.
Consumers no longer buy Apple devices because of their advanced technology, but because of the social value attached to the iconic bitten Apple logo. Through this strategy, Apple continues to dominate the market—not because their technology is superior, but because they have successfully created a consumer culture based on social image. On the other hand, Apple users often remain unaware that many advanced features available on Android devices far exceed the capabilities of the iPhone. Technologies such as Samsung Dex, reverse wireless charging, or easily accessible developer modes, and more are all absent on Apple devices. However, for consumers captivated by Apple’s image, functionality seems irrelevant; prestige has become the primary selling point, and Apple continues to capitalize on this phenomenon for profit.
Apple’s Monopoly and Its Effect on the Global Market
As one of the largest technology companies in the world, Apple faces sharp scrutiny in Europe over alleged monopolistic practices amidst the dominance of the App Store as the primary app distribution platform. Complaints have emerged from app developers and other companies who feel disadvantaged by Apple’s policies. One major issue is the requirement to use Apple’s payment system, which imposes a commission of up to 30% on in-app transactions. For many developers, this fee becomes a significant burden, limiting their ability to compete fairly in the market.
Spotify, the leading music streaming platform, has become one of the most vocal critics of Apple. They claim that Apple’s policies directly harm competition, especially because Apple has its own music streaming service, Apple Music. By imposing high commissions on Spotify and similar services, Apple is accused of creating conditions that favor itself while limiting user choices. This issue led Spotify to file an official complaint with the European Commission in 2019, which became a key trigger for the antitrust investigation into Apple. European regulators are now examining whether Apple’s policies violate competition rules in the region. The European Union has also introduced the Digital Markets Act (DMA), designed to prevent excessive dominance by tech giants like Apple. If found guilty, Apple could face hefty fines and be required to change its business practices, including opening up its ecosystem to allow fairer competition. This case has become a crucial battle in efforts to protect innovation and promote healthy competition in the global digital market.
Exploited Labor in Apple’s Supply Chain: The Reality Behind the Product
At Foxconn’s factory in Zhengzhou, China, known as the “iPhone city,” thousands of workers operate under strict and high-pressure conditions to meet global demand for advanced devices, with base salaries ranging from 2,000 ($273) to 3,000 Yuan ($410) per month. They rely on overtime to supplement their income, with overtime often exceeding 100 hours per month, allowing them to take home 4,000 to 5,000 Yuan. However, this amount is far from sufficient given the cost of living around the industrial zone. Expenses for food in the factory canteen can reach 600 ($82) to 800 Yuan ($109) per month, and the cost of dormitory fees is around 150 ($17) to 300 Yuan ($41), leaving little room for savings or helping their families.
Meanwhile, the products they assemble, such as the iPhone, are sold for over $1,000 in international markets, but only a small portion of that price goes toward paying the workers’ wages. Often, it’s less than $10 per unit, with the majority of the profits flowing to large companies like Apple, which enjoys a gross profit margin of up to 40%. This situation creates a glaring disparity: hard-working laborers who put in long hours still live in poverty, while big tech companies rake in huge profits from cost efficiencies at factories like Foxconn. Foxconn workers have few choices but to endure a system that doesn’t favor them. With rising living costs and limited job opportunities, they are trapped in a cycle of high work pressure and low income. Despite promises of improvement from the companies, many workers complain that changes only happen on the surface.
Behind every precisely assembled device, there lies the story of workers toiling away without adequate welfare guarantees, becoming small cogs in the vast machinery of the global tech industry.
Apple’s Exploitation in Indonesia: A Modern-Day Colonial Business Strategy
However, the greatest injustice is profiting from other countries without providing any significant return to their economies. This is what Apple is currently doing in Indonesia. Behind its popularity, there is a business strategy that reveals that Apple only views Indonesia as a potential market to reap profits without contributing meaningfully to the local economy or society.
As one of the largest countries by population with a rapidly growing market, Indonesia holds tremendous potential for the tech industry. However, Apple has shown no intention of contributing to the growth of the local industry or creating significant jobs. Unlike some of its competitors who have established assembly plants or distribution centers in Indonesia, Apple has chosen to import all its products, making Indonesia merely a consumer rather than a part of the broader value chain. Worse yet, Apple often exploits regulatory loopholes to dominate the market without making direct contributions to the local economy. One example of this is Indonesia’s Domestic Content Level (TKDN) policy. To sell iPhones in Indonesia, Apple is required to meet a certain percentage of domestic components or production processes. But rather than establishing production facilities or investing in the technology sector, Apple has opted for the shortcut of partnering with others to build small-value accessory facilities just to meet the minimal requirements. This move reflects Apple’s lack of commitment to the development of local technology and labor.
On the other hand, Apple’s products are much more expensive in Indonesia compared to other countries, due to high import taxes and exclusive distribution policies. This not only burdens consumers but also creates a social gap where owning an Apple product becomes a symbol of economic status. Apple’s actions in Indonesia are reminiscent of the colonial era, where Indonesia’s wealth was exploited for the benefit of foreign parties with little return to its people. With all the luxury of its products, Apple operates like an economic force that only cares about one thing: maximizing profits. In the tech world, Apple is no longer a pioneer, but in marketing, they are champions, capitalizing on image. Apple has created a very profitable business for itself, selling prestige, not technology, and consumers remain trapped in this cycle. But the question is, for how long? Will we continue to buy the illusion, or will we begin to realize that functionality is more important than status?
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