Should Apple reduce its prices for iPhones and other products? ( Log Out / Change ), You are commenting using your Twitter account. Good return of investment from initial set up costs, which include product research, development and marketing. So Apple is able to keep its supply channels clean as well as make more money on its direct sales. This is one of the downside of the skimming strategy. If we’re only buying mid-range devices that we have no passion towards every few years, that could decimate the market and — eventually — leave only a few prominent OEMs standing. Apple maintains the reputation of its high-priced products by only offering retailers such as Wal-Mart a marginal wholesale discount. In my opinion, both things are going to happen simultaneously. Meanwhile, other features will stay in the mid-range like the fastest chipsets, high-resolution displays, large batteries, etc. While people’s feelings towards laptops are much different than their feelings towards smartphones, it’s entirely possible that people could start to approach buying a smartphone in the same way they approach buying a laptop: This hypothetical endgame doesn’t affect Apple at all, because its customers are always going to buy the premium products. The vertical integration creates a unique user-experience for owners, who use Apple products. In China, for example, Android phones dominate the market, and most of them are mid-rangers with good specs, interesting designs, and relatively low prices. But if we think in the matter of customer’s perspective, then you wouldn’t buy an Iphone 5 now because it will be technologically inferior to current generation of Iphone. Believe it or not, what Apple does with its pricing has a large effect on the smartphone industry as a whole. The big question is, what will Apple’s new pricing strategy for 2018 mean for Android for the immediate future? ), install someone else’s software (Windows and Android), and third-party services (Google), and sell the products through someone else’s store. Both these Iphone were sold at very heavy price and in large quantities. Certain features will move out of the mid-range and into the premium market, like glass-and-metal builds, premium cameras, and device-specific novelties like Samsung’s S Pen and Apple’s latest Face ID technology. Iacobucci, D 2014, Marketing Management (MM), 4th Edition, South-Western, Cenage Learning, Mason. That's …, Xiaomi's Pocophone F1 is finally official, offering a ton of power in a more affordable package. There is a common voice of regret from many users, who find Apple devices beyond their budget. Apple gives an extensive product portfolio to its consumers, who are loyal to brand Apple. Unlike other Android smartphones made of plastic components, Apple uses premium materials like glass and aluminum. Luckily, OEMs (including Apple) still have carrier subsidies on their side. The founder of iGeeksBlog, Dhvanesh, is an Apple aficionado, who cannot stand even a slight innuendo about Apple products. Apple Inc. is a technology and innovative company, which designs, produces and sells Imac, Iphones, Ipods, music. Apple manufactures hardware, designs software and optimizes it for its hardware, runs web services (iTunes and iCloud), and controls selling by its own retail stores. So much so that all the processors designed till date have been one or two years ahead of the processors made by Apple’s competitors. (2016), April Maguire, retrieved 3 September 2016, Emilio De Villota,
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