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It is shown that the products are placed at the higher end of the price structure. According to Kotler (2008) the pricing of the product has to follow the customer value. That can be translated to mean that the product must have a value in terms of satisfaction to the customer -- which can be translated to a value that is the price. Premium products like the iPhone and iPad can command higher prices and still be attractive to the customer, because of customer value and expectations. The expectations of the customer when fulfilled create more demand. To this end the advertising and the way the product will be positioned has to be considered. Thus based on these the pricing of the new versions ought to be done. Looking at consumer behavior it can be seen that...
(NDTV, 2012)
The original iPhone that was marketed on 9 January 2007 and cost $499 and had just 4GB of storage. The 8 GB model cost $599. It was discontinued and price of the 4 GB came down to $300. For the same price of the 8 GB a 16 GB model was sold for $499. The reviewers estimate the original cost of development of iPhone as $150 million. In 2007 the iPhone" sold 270,000 units in its first two days and in 74 days crossed one million again in sales." (NDTV, 2012)
For the next two versions there were pre-booking orders that crossed a million on the first or second day of its debut. And over 2 million were sold -- in the case of iPhone 4, with 600,000 pre-orders in just a single day.
It is shown that the products are placed at the higher end of the price structure. According to Kotler (2008) the pricing of the product has to follow the customer value. That can be translated to mean that the product must have a value in terms of satisfaction to the customer -- which can be translated to a value that is the price. Premium products like the iPhone and iPad can command higher prices and still be attractive to the customer, because of customer value and expectations. The expectations of the customer when fulfilled create more demand. To this end the advertising and the way the product will be positioned has to be considered. Thus based on these the pricing of the new versions ought to be done. Looking at consumer behavior it can be seen that the price rise has not decreased the sale of the iPhone. (NDTV, 2012)
The original iPhone that was marketed on 9 January 2007 and cost $499 and had just 4GB of storage. The 8 GB model cost $599. It was discontinued and price of the 4 GB came down to $300. For the same price of the 8 GB a 16 GB model was sold for $499. The reviewers estimate the original cost of development of iPhone as $150 million. In 2007 the iPhone" sold 270,000 units in its first two days and in 74 days crossed one million again in sales." (NDTV, 2012)
For the next two versions there were pre-booking orders that crossed a million on the first or second day of its debut. And over 2 million were sold -- in the case of iPhone 4, with 600,000 pre-orders in just a single day.
Apple Inc. is a designer and marketer of consumer electronics based in California. Although the U.S. is by far its biggest market, it operates in a number of markets around the world. The company's current product segments include computers, tablets, smartphones, software and music players. Apple faces a wide range of competition, often different competitors in each business segment. The company has enjoyed considerable success in recent years, making market
AAPL For the 2012 and 2011 fiscal years, Apple had the following ratios (based on FY end, where applicable): Apple Current Ratio Total Asset Turn D/E Net Margin ROA ROE EPS P/E Dividend yield Payout ratio P/Book Based on these figures, Apple was in good financial shape. It should be noted that these figures are somewhat skewed, particularly the current ratio. Apple actually had billions in cash that was locked up in long-term investments on the balance sheet. These did not show as current
Corporate Responsibility and Marketing Strategies- Apple One of the more popular marketing strategies today that is still relatively new is the enhancing of societal influence for good. Corporations essentially address societal and environmental challenges in order to increase their performance. This strategy has a lot of names but is more commonly known as Corporate Responsibility (CR) or Corporate Social Responsibility (CSR) (David & Sanchez-Hernandez, 2010). By taking responsibility for its actions, a
Apple exists in an oligopoly market structure, wherein a small handful of companies control the market. Apple, along with Samsung, Microsoft, Alphabet (Google) and Nokia, essentially control the tech industry (smart phones, computers, portable devices, etc.). While smaller companies do exist, it is these larger companies that set the stage for prices, products and innovation. To what extent Apple’s current status as a blue chip stock may be representative of
Apple Case Apple represents the business of the future - a business that provides solutions to problems a customer may not even know they possess. Apple has shown how to be first in the market with devices, content and communications and has changed life, as we know it with each product introduction. From the early days of the Macintosh computer to the present day Mac Book Pro, iPhone G4 and the
There is a risk, however, that the company begins to lag the pace of technological change, and in such a situation would see reduced relevance in its industries. What the PEST analysis shows is that in general the external environmental forces have either a favorable or neutral impact on Apple's operations. Traditional sources of external risk (political/legal) are minimal and the other key risk source (technological change) has traditionally