Hello Reader,

21.21 billion USD. This is how much Apple made in the 3rd quarter of 2023.

But what you don’t know is that this enormous money doesn’t come from iPhones, iPads, or MacBooks.

It comes from Apple’s software.

Apple Music, Apple TV+, App Store, and many others.

They all contribute to an almost double gross margin compared to the physical Apple products.

When I read this shocking info, I wondered:

Most of the content Apple offers is already available everywhere. Why would anyone choose Apple’s platforms over other, cheaper alternatives?

I spent two weeks trying to find an answer.

And I think I found it!

Here's the 2-step brilliant strategy Apple’s using to trick you into buying and why Tim Cook is so confident about getting more money from you:

Welcome to the Apple World

It all starts with Apple’s ecosystem.

Apple has meticulously crafted a space where each product or service enhances the value of others. You get the biggest benefits when subscribing or purchasing multiple Apple services or products simultaneously.

The synergy between these elements makes it convenient for users and encourages them to stay within the Apple universe.

I’m a relatively new Apple user — I switched all my devices to Apple two years ago. But when I think of switching back to Windows or Android, I can immediately point at Apple’s features I’d be missing.

Copy-pasting between devices, seamless switching between iPhone and Mac while listening to music or podcasts, or paying only one subscription for all three most important content services I use.

This convenience Apple gives me regarding content consumption makes it extremely hard to switch their products for an alternative.

But is it only about convenience?

You can(’t) sit with us

When you buy a new Apple device, you’re not just buying a piece of hardware to simplify your life. You’re making a lifestyle choice.

You become a part of a separate group of creatives, professionals, or simply community members who think differently about their technology.

See what I did there?

This image is all about exclusivity. The idea of belonging to a secret club of cool people sharing cool things.

And if you ever saw Apple lovers arguing with Android users, you know how powerful this attachment can be.

But Apple takes the exclusive experience even further.

Not only giving their users a whole set of devices working on a new ecosystem.

But also providing them with tons of exclusive content they can consume right after hearing the iconic Mac startup sound.

Exclusive TV shows, live musical performances, and extra episodes of your favorite podcasts are all there, waiting for you and your credit card.

You wouldn’t want to miss all those goodies, right? Since you’re already in the exclusive club, you might as well embrace it to the fullest, right?

Apple uses exclusivity to fuel your sense of urgency and scarcity. You’re much more likely to subscribe to Apple’s services because you want to get the whole Apple experience. So, what’s a small fee when so many good things are waiting on the other side?

And in case you’re not convinced yet, Apple will use your favorite creator to do the talking for them.

Why? Because they offered them something all creators need.

Creators’ biggest dream

When you publish your work online, be it music, podcasts, videos, or writing, you care about one thing:

Visibility.

It sucks to shout your message into the void.

Apple knows this and they provided creators with the solution to this problem:

A platform.

One that not only offers millions of eyes and ears to reach with your work, but also — one that’s… you guessed it… exclusive.

Musicians can post exclusive live shows on Apple Music.

Podcasters — exclusive episodes

Filmmakers — exclusive shows.

This gives all creators an edge in visibility, sponsorships, and establishing visibility and a strong online fanbase.

The last one is especially effective.

Because Apple users trust so much in Apple’s brand, being featured as exclusive content on an Apple service provides a stamp of approval of sorts, elevating the content’s perceived value.

And this system seems to work surprisingly well.

So much, in fact, that Apple Music can pay musicians and artists twice as much as Spotify for every stream of their song.

For Podcasters, it offers a 70%-85% cut of each user buying the subscription to exclusive Apple Podcast content.

But why they’re so generous?

I think Apple is well aware of content creators' power on people. Creators can evoke emotions, shape opinions, or allow to relax after a long day. They are an inseparable part of Apple’s experience.

And a free marketing source too. Each time a creator invites their fans to Apple’s platform, their profitability increases.

On the other hand, creators get more attention and credibility, and consumers get the sense that they are part of something exclusive and premium.

All while Apple strengthens its ecosystem and boosts its services revenue.

And that is a brilliant way to trick us all into diving into the world of Apple — wallet-first.

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How can I help?

💡 Hop on a 30-minute discovery call with me and let me help you prepare a solid content strategy for your business.

✍️ Check out my Medium blog where I post about growing your online presence with organic content marketing.

🧑‍💻 Read my blog about SaaS content marketing

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Have a great day!

Kuba (@contentkuba)

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