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=== Market Positioning and Outlook === By the end of 2013, Apple’s competitive advantages and market positioning were under intense scrutiny. Its strengths included a fiercely loyal customer base, a reputation for innovative design, and a tightly integrated ecosystem of hardware and software that delivered a seamless user experience.<ref>{{cite web |url=https://www.quora.com/What-are-Apples-comparative-advantages-and-disadvantages-relative-to-their-competitors-1 |quote=Apple's focus on design and ease of use attracts customers willing to pay more for quality. }}</ref><ref>{{cite web |url=https://bobcutmag.com/2022/04/22/apple-competitive-advantages/ |quote=Apple's brand loyalty is a major competitive advantage. }}</ref> These factors allowed Apple to command premium pricing, with products like the iPhone 5S setting new benchmarks for mobile security and performance. Financially, the company remained a powerhouse, posting record quarterly revenue of $54.5 billion and a net profit of $13.1 billion in the first quarter of 2013, driven largely by iPhone sales.<ref>{{cite web |url=https://www.apple.com/newsroom/2013/01/23Apple-Reports-Record-Results/ |quote=Apple posted record quarterly revenue of $54.5 billion and record quarterly net profit of $13.1 billion in the first quarter of fiscal year 2013. }}</ref> However, Apple’s market share in the global smartphone arena slipped from 19.1% to 15.6%, despite selling 151 million units, up from 130 million in 2012.<ref>{{cite web |url=https://www.latinpost.com/articles/7354/20140214/apple-vs-samsung-sales-figures-market-share-2013-smartphones-topple.htm |quote=Apple's market share fell from 19.1% to 15.6% in 2013. }}</ref><ref>{{cite web |url=https://www.latinpost.com/articles/7354/20140214/apple-vs-samsung-sales-figures-market-share-2013-smartphones-topple.htm |quote=Apple sold 151 million smartphones in 2013, up from 130 million in 2012. }}</ref> This decline highlighted the growing challenge from competitors like Samsung. Apple’s attempt to capture emerging markets with the more affordable iPhone 5C was a strategic move, but its lukewarm reception underscored the difficulty of balancing affordability with the company’s premium brand image.
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