PRICE STRATEGIES APPLE USES TO MARKET THE IPHONE
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 on the operator interface at the time" (Johnson, Li, Phan, Singer and Trinh 10). It is important for Apple to develop the best pricing strategy for marketing iPhones as it affects the choice of customers and the success of the company. The marketing strategy selected is to be in line with Steve Jobs’ vision for Apple, which was to come up with quality products and sell at a premium price. Skimming, a scenario where Apple sells its unique and innovative iPhone at a high price for some period of time is in use as one of the price marketing strategies. Secondly, price segmentation, a strategy where Apple sells the iPhone at varying prices to different people has been adopted. Thirdly, premium pricing strategy, where the iPhones are sold at high prices to maintain the image of both the company and the iPhone is used. Also apple sells its iPhones at three different levels. A two year contract pricing strategy is whereby high end iPhones are sold at $199 on a two year contract. Secondly, the year ...
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...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 anything.
1. Johnson, Katherine; Li, Yang; Phan, Hang; Singer, Jason; and Trinh, Hoang, "The Innovative Success that is Apple, Inc." (2012). Theses, Dissertations and Capstones. Paper 418.
2. Sliwinska, Dorota, Jani Ranasinghe, and Inga Kardava. Apple 's Pricing Strategy. Paris, 2008. Print.
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