Apple, Inc. (Apple) delved into relatively new territory in 2013 by releasing two new versions of their smartphone, the iPhone. This was the first time they released two versions of their smartphone in the same calendar year. This dual or multi-release strategy is not completely new for Apple, as they have previously released multiple versions of a product type from the same family as early as 1979. That year, Apple, then known as the Apple Computer Company, released three versions of their Apple II computer: the Apple II Plus, Apple II EuroPlus, and the Apple J-Plus. As recently as 2012 Apple released two models from their iPad family, the iPad Mini and the iPad (4th gen). It should come as no surprise that during September 2013 Apple released three versions of their iPhone for the first time: iPhone 4s (8 GB), iPhone 5c, and the iPhone 5s. Was this a flawed strategy considering the versions of the iPhone could cannibalize each other? What about deciding to release a new version of the 4s, the 4s (8 GB)? Could this be considered cannibalization in reference to the two new versions of the iPhone 5? Was this considered a form of price discrimination? Was Apple essentially charging customers group different prices for what some may deem as essentially the same product, the iPhone 5c and 5s? What roles do the phone service providers play in the realm of price discrimination? If a phone company subsidizes the price to the consumer in conjunction with service plan contracts, is this still price discrimination? To understand the answers to these questions one should understand what price discrimination is and the laws behind it. One should also determine if the iPhone 5c and 5s are essentially slight variations of the same...
... middle of paper ...
...etitive-analysis/resources/blog/inside-the-iphone-5s/
Juliussen, E. (2013). Worldwide pc and tablet market: Mar. 2013 version. Source: Computer Industry Almanac Inc., Record Number: 2013 SRI C2457-7.
Retrieved from http://http://search.proquest.com/statistical
Kim, A. (2013). Tim Cook warns against trying to interpret supply chain order rumors. Macrumors.com. January 23, 2013.
Retrieved from: http://www.macrumors.com/2013/01/23/tim-cook-warns-against-trying-to-interpret-supply-chain-order-rumors/
Martyak, J. (2010). What Determines Loyalty to a Brand? For Apple Loyalists It’s Emotion. Retrieved from: http://www.compasshc.com/blog/what-determines-loyalty-to-a-brand-for-apple-loyalists-its-emotion/25/08/2010/
Segan S. (2013). The Apple iPhone 5c Is No Failure.
Pcmag.com. October 16, 2013.
Retrieved from: http://www.pcmag.com/article2/0,2817,2425837,00.asp
Mise, J. K., Nair, C., Odera, O., & Ogutu, M. (2013). Determinants of Brand Loyalty and Product Quality of Soft Drink Consumers. Asian Journal of Business and Management , 1 (1), 8-13.
DIFFERENTIATION- AT&T’s exclusive agreement to market and sell the iPhone with Apple Corporation has differentiated itself from its competitors. Utilization of its vast spectrum to offer video conferencing service (video share).
Apple has its competitors, as it is expected, and they do not fall behind by much. One of its biggest competitors is the company Samsung. For years, those two companies have been head to head in the electronical world. All over the web one can find all sorts of articles talking about the conflicts of those two companies and about how they each claim that the other one took their products and just changed its name. But thankfully, those two companies are still strong (no matter how much people complain about the other one) and they both have a lot of people supporting them. There are two sides when talking about phone and electronics: the Apple side and the Samsung side. Now, what those two companies need to be careful about is to not let their guards down and allow the competition to take over, but then again, Apple is well... Apple and they would never let that happen (they have not done it for almost 50 years, they would not do it
The Apple logo was derived from the biblical story of Adam and Eve. Moreover, the bitten apple represents the fruit from the Tree of Knowledge. Therefore, the Apple logo symbolizes knowledge (Redding, 2014).
Many people get excited when a new iPhone is about to be released. In addition, there are many customers who camp outside either the Apple store or their phone company store for days, just to get a hold of one. One thing many don’t realize is that its literally the same phone as previous ones. Thousands of people seriously think they’re paying for a new phone with better adjustments than the previous iPhone, instead of paying for a newly developed phone with a stronger iOS system and better features, not just little simple improvements. They end up paying for a phone that’s similar to the previous one.
A customer’s response falls in two categories, judgment and feelings. Consumers are constantly making judgments about a brand. These judgments fall into four categories: quality, credibility, consideration, and superiority (Keller, 2001). Customers judge a brand based on its actual and perceived quality, and customers judge credibility using the perception of the company’s expertise, trustworthiness, and likability. To what extent is the brand seen as “competent, innovative, and a market leader,” “dependable and sensitive to the interest of customers,” and “fun, interesting, and worth spending time with” (Keller,
"StatCounter Global Stats - Browser, OS, Search Engine including Mobile Market Share." StatCounter Global Stats RSS. N.p., n.d. Web. 10 Dec. 2013.
In June of 2007, the first iPhone was released, revolutionizing our way of living. For the past seven years, it has been known worldwide as one of the top smartphones. Since then, we have become reliant on mobile devices and technology in general making them a necessity for everyday life. The iPhone has further influenced our lifestyle due to its advanced and convenient features. Using the iPhone’s capabilities as the basis, this paper will explore the impact on our society from the use of, and dependence on iPhones. It will further analyze if these outcomes are in fact positive. The iPhone has become substantial in how we function, creating a significant change in our culture. Since iPhones do influence our lives, it is important to interpret how it is accomplished.
This report will analyze and discuss the most important elements of the marketing environment for the launch of the iPhone, that is to say the main three levels of the marketing environment: the micro-environment through the customers, competitors and distributors, the macro-environment through technological, economical, social, political and environmental forces and finally the internal environment through the relation of Apple with its employees and its marketing philosophy. The analysis for the micro-environment is based on Porter’s 5 forces model and the one on the macro-environment is based on PEST analysis. The report will also give an interpretation for each of these aspects, a conclusion with a rating of the attractiveness of the UK current marketing environment in which the iPhone is launched.
Cutting costs by competitors is the most logical way for competitors to be more competitive in the market. By cutting costs, there are more profits to be made and to gain market share by offering lower cost substitute products. The industry is flooded by competition, but no other competitor of Apple really focuses on creating great technical upport or brand loyalty. (Elliot, 2014)Apple’s primary focus is to develop innovative products and create a unique product that consumers can depend on the being the most highly anticipated technological device while offering great service and support for these new products. Apple uses business model innovation which introduces new products that are compatible with each other such as iTunes and the iPhone or ipod. This has proven to be a very effective business model and competitors are trying to replicate the same model to their advantage. (Jakab, 2015) By being an innovator and first mover on this type of technology, it gave Apple the competitive advantage in the market. In order for competitors to be more effective in the industry, they must attempt to gain customer loyalty and offer a simliar business strategy to that of Apple if they are to be the industry
What is product? Product can be anything, tangible and intangible. Product is anything that the company can offer to the consumer. Apple’s products are the best of service in the market. From computer to smartphone to tablet computer, today customer believe that if they get the apple product. Even that price is high also worth it. Apple products are usually high quality, so in some case that is the best of available device for customer. However, it is not perfect, many customers leave for a series of problems, so they deeply hurt.
Apple sells its products and resells third-party products in most of its major markets directly to consumers and SMBs through its retail and online stores and its direct sales force. Apple has over 400 retail stores and operates in more than 10 countries. These individual retail stores are the best locations to sell the iPod Nano as 30% of total net sales is through direct distribution (Investors - Apple , 2013). The Apple retail stores have become a physically location for customers to try out new products, talk to an Apple representative in person, and gain insight on technical maintenance. These retail stores can be found at high-traffic locations in quality shopping malls and urban shopping districts.
Under the circumstance that the mobile phone industry entered the 3rd generation, Nokia faced competition from both macro level and industry level. For the macro level, the government encouraged competition among the operators and handset manufacturers by giving digital licenses to new entrants. As a result, the mobile phones became more sophisticated, for example, the cameras and the games in the mobile phone. For the industry level, which can be analyzed by the Porter’s Five Forces, (lecture )Nokia was facing threat of new entrants, competitive rivalry and the bargaining power of buyers is increasing as well. As the government encourage completion between the handset manufacturers, there are several new entrants from different countries enter this industry, such as Apple from USA, Samsung from Korea. These new entrants compete with Nokia in both smartphone segment and basic phone segment. Some of them even constructed “ecosystems”, which they could integrate the services and applications quickly, in order to produce the phone in just two days. For the bargaining power of buyers’ aspect, they do not need to rely on the only operating system Symbian. They can choose Windows mobile launched by Microsoft, Android launched by Google and Ios launched by Apple, in addition, basically all of them are better than Symbian (Amiya, 2010). The buyers could choose any
The very first iPhone was announced by the founder of Apple, Steve Jobs, in 2007. His vision was to reinvent the phone. iPhones have revolutionized smartphones and have shaped the cell phone industry into what it is today. On January 9, 2007, Steve Jobs put together an incredible keynote presentation. He stated that he would be “introducing a wide-screen ipod with touch controls, a revolutionary mobile phone, and a breakthrough Internet device” (Ritchie, 2015). The audience assumed that this meant that Mr. Jobs would be launching three separate devices. However, it was only one device, the iPhone. Within the past 7 years, Apple has been able to tweak its iPhones by incorporating major redesigns. These redesigns use combinations
From the study it is clear that people often purchase branded products since they are aware of the brand performance or perhaps they have a good past experience about the brands. This makes customer’s become loyal with the specific brand.