Apple Price Strategy Essay

1196 Words3 Pages

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

More about Apple Price Strategy Essay

Open Document