Student’s Name: Course: Affiliation: Date: PRICE STRATEGIES APPLE USES TO MARKET THE IPHONE INTRODUCTION An iPhone is the most sought after, innovation and branding product and a market leader of mobile devices that was introduced by Steve Jobs in January 2007.It is a combination of the internet enabled smartphone and iPod. It was a great innovation of Apple and is unique in the sense that the user interface is built around the device 's multi-touch screen including a virtual keyboard. It can perform many functions including shooting videos, taking photos, sending and receiving emails, sending text messages, playing music, browse the web among other functions. The authors state "These phone features put the iPhone far ahead of other brands …show more content…
In pure discrimination, the seller charges each customer the maximum amount that he is willing to give. Customers are always placed in groups, and each group charged differently. Temporal price discrimination is depicted in Apple 's pay cut, where different people are charged different prices according to their desire and ability to pay. Price discrimination strategy is brought by the need to gain a wide profit margin from those ready to pay high prices for the iPhone. Also, there is the need to establish later a bigger customer base for the iPhone from high volume sales. Two months after its launch, Apple reduced the price of 8GB model from $599 to $399- $200 from the initial price of the iPhones. After numerous complaints from the customers who had initially bought the iPhones, it offered $100 store credit. The authors states that “Price discrimination based on what consumers are willing to pay eventually results in greater profits than if the firm charged a single price to all customers” (Klein and Rao …show more content…
The launch of the iPhone was so greatly anticipated. It is one of the unique products of Apple. While the iPhone is being challenged by other smartphones like Samsung and Android, it remains to be the best smartphone in the market. This is because, its sleek design, user-friendly, provides better and faster browsing experience, it has a choice of so many applications- most of which are free, has a high level of security resistant to hackers, and it is highly durable. An iPhone also has Siri, a voice-activated virtual assistant that can assist you to find
Price discrimination is a significant and influential practice on the market in the modern economic world. It aids in a firm's profit maximization scheme, it allows certain consumers with more scarce resources the opportunity to purchase goods or services that would otherwise be usable, and it aids firms in balancing what is and what is not sold. Price discrimination is an effective means by which a firm can sell a higher quantity of goods, make a higher profit margin on the goods it sells, and builds a broader consumer base due to differing price elasticity of demand for given goods and services. Price discrimination ultimately equalizes price and value for both the consumer and the firm, creating a more ideal situation for both entities in terms of preference and opportunity cost.
Before dwelling into the global phenomenon that is the iPhone, one must first look back at the history of the cell phone. In 1983, Motorola introduced the first truly mobile phone to the world, which was the DynaTAC 8000x (“The History and Evolution”). It is considered the world’s first mobile phone since it was the
Its sophisticated operating system wins bar none. iOS 10 is a closed operating software system compared to the open system Android offers. The iPhone’s operating system is fluid, user friendly and beautifully laid out. Its closed operating system is not prone to viruses. Therefore, a user can have peace of mind when storing personal or even sensitive information. In addition, iOS 10 knows important details about ones interest, frequent places, suggest apps and Siri has a complete understanding of what one wants. Meanwhile, its operating system keeps ones security and privacy in
The principal conclusions of this report show that the iPhone is a successful product that combines interesting features: iPod, internet browser and mobile phone, which satisfy the customer’s needs moreover it is also exceeding their expectations thanks to its fashionable design. However the UK current mobile market is very competitive, so Apple will have to deal with tough competition against established mobile phone manufacturers. The report finally comes up with some recommendations that can help improving Apple’s performance and the marketing environment for the iPhone, these are mainly:
Millions of people all around the world are using Smartphones, like iPhones, which turns out to be crucial part of our lives. We are using them not only for calling but we also store unbelievably huge amount of personal information. We have there all our contacts, calls and messages and all our pictures that we save and keep in the phones. A
Cell phone sells were at its apex. Cooper and his team devised a technology so novel that the popularity of it was instantaneous. A device with the ability of only conversating is what the first cell phone was, but as time progressed and technology flourished the once simple talking device transformed into a diminutive computer. Gradually, a plethora of unique features were supplemented to the cell phone sharpening its value making it worthier and superior to the first cell phone. These features include browser accessib...
We can say it was THE best invention. Before, when we didn’t have something called an iPhone, we had to go home, turn the tv on, and watch the news or the tv show you wanted. Now, anyplace and any time you, you could watch your favorite tv show, you were able to be alert of the news, and you could check your favorite teams score right at the moment. This meant LIVE.With this phone everything seemed to be LIVE because you could get everything right at the moment it was happening. When you go on an airplane, 11 hours of traveling, you would get very tired and exhausted. Probably, you would get your nintendo out, then if you wanted to watch a movie you had to put it back. If you want to read a book, you would have to get it out and put it back again. There would be a big probability of losing your stuff. Why all these things if you can now just get out one device and do every one of these? As Jobs said,”An ipod, a phone, an internet mobile communicator… these are NOT three separate devices! And we are calling it iPhone! Today apple is going to reinvent the phone. And here it
According to Ideavist (2011), due to the increase in competition as rival companies try to capture a piece of the market share leads businesses to employ various tactics to handle such situations. Some of the strategies used by companies and that Apple could find very constructive could include the below marketing strategies to be used for future success.
Apple has launched some of the most iconic pieces of technology in the 21st century. They have not only repeatedly been named the top technology company in the world, but have also been named the World’s Most Valuable Company dozens of times. Currently, it is ranked at number two as it trades the title back and forth with Google/Alphabet consistently. A global valuation of over $700 million makes Apple a major driver in the global economy through both sales and product manufacturing. Although a technology giant, Apple does not have a massive portfolio of product offerings, instead focusing on upgrading products within its current market segments. The iPhone is one such product and it has quickly become a symbol of all things Apple with global
Technology has become a huge part of everyday life, and people seem to have one great debate and are fighting over which is the best phone, iPhone or Android. The Apple iPhone is a cellular smartphone that was created and is maintained by Apple Inc. Android is another type of smartphone that is accessible to consumers, but the operating system is powered by Google and many different companies produce Android devices. The different operating systems and interfaces have created a long and carried out debate to which was superior. iPhone is the better phone and there are many reasons as to why it is superior to its rival, Android. The iPhone’s sleek and beautiful design has users’ hands fondling the device and never putting it down. The operating system is very distinct, but is straightforward with its functionality. People who purchase the iPhone believe that they have received their money’s worth and more when owning and iPhone. The iPhone is better than Android when compared because of the beautiful design and attractive display, the operating system and its functionality, and the device’s personal worth is definitely worth the money spent to own one.
An article in Macworld states that Apple maintains the popularity of its high-priced products by only offering retailers such as Wal-Mart or Best Buy a marginal wholesale discount. This small percentage in savings does not provide a significant profit margin for retailers to offer big discounts on Apple’s products, which results in customers paying a price close to the manufacturer suggested retail price (or MSRP) (Apple Inc Objectives and Strategies, 2015). On the other hand, a retailer could give up this small profit margin and offer discounted products to attract more customers. Apple prevents this occurrence by offering monetary incentives to retailers to sell goods at the MAPs fixed by the company (Riley,
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
The IphoneTeleLap is the fastest phone that is designed with a transparent laptop that can be accessible with just one click. It is a smart phone that is highly developed and easy to use, it supports every basic need for the consumer that varies from texting people to a wider range of services. When the consumer needs a better access to the services can easily use the
The first type of price discrimination, also called perfect price discrimination, occurs when a firm sets the single highest price that somebody is willing to pay for it, catching up the consumer surplus. The second consists in charging different prices according to the quantity bought by the consumer; generally the price tends to decrease as the quantity of the product increases. And the third and last price discrimination involves dividing the consumers in diverse markets and charging them with a different price (Gravelle, Rees, 2004, p. 194-204). In addition to that, the firms that price discriminate have to meet some conditions. First of all they have to be price makers, thus regulating the price as they want; secondly, the firm has to sell a good which is not going to be involved in further exchange at a higher price; as third and last consideration, the market needs to be well organized so as to classify the different categories of buyers according to their willingness to pay (Littenberg and Tregarthen 2009, p.
The world today is a result of centuries of evolution; one of the major adaptations is technology, specifically the invention of the smartphone. The smartphone is a cellular phone that has the capabilities of performing similar functions to that of a computer (Oxford Dictionaries’ online dictionary, n.d.). The smartphone is owned by youth for the most part; however, adults and seniors are also turning toward using this device. This in turn demonstrates the popularity of this marvelous device, and is the reason why it is constantly monitored by its users. The continuous evolving of the populations' wants and needs such as communication, searching of information, entertainment and recording, makes owning a smartphone essential, and beneficial as it is portable, reliable and efficient.