Editing Apple Inc. (section)

=== Market Positioning: Strengths and Vulnerabilities   ===

As 2022 drew to a close, Apple’s competitive advantages and market positioning came into sharp focus. Its robust ecosystem, characterised by the seamless integration of hardware, software, and services, remained its most significant asset, fostering customer loyalty and creating high switching costs. The services segment saw revenues climb to $19.8 billion in Q2 2022, a 17% year-on-year increase<ref>{{cite web |url=https://www.thestreet.com/apple/apple-services/how-apples-margins-could-skyrocket-in-the-next-5-years |quote=Apple's services segment grew revenues at a pace of more than 19% annualized between fiscal 2019 and 2022. }}</ref>. However, Apple’s reliance on China for manufacturing posed notable challenges, particularly amid geopolitical tensions and supply chain disruptions<ref>{{cite web |url=https://www.forbes.com/sites/stevebanker/2023/01/19/apples-china-problem/ |quote=Apple's reliance on China poses challenges, including potential recession and climate change disruptions. }}</ref>. To mitigate these risks, the company diversified its production base, expanding operations in India and Vietnam. Despite an 18% drop in iPhone sales in China during the holiday season, Apple’s ability to innovate and deliver products with unique design and user experience remained a cornerstone of its competitive edge<ref>{{cite web |url=https://techcrunch.com/2025/01/29/what-deepseek-china-and-trump-mean-for-apple-ahead-of-its-q1-earnings/ |quote=Apple saw an 18% iPhone sales drop in China over the holidays due to growing competition from homegrown brands. }}</ref><ref>{{cite web |url=https://ipbusinessacademy.org/competitive-advantage-and-apple |quote=Apple's ability to create products with unique design and user experience is a key competitive advantage. }}</ref>.