Tech giants Apple are selling I Phone, I Pad and I Pod under their product line about a decade now. Their strategy for pricing and marketing is that they make high quality items which makes their competitors difficult to make such items and sell at a lower price for similar benefits. Apple owns its chip manufacturers and it sells its products in retail stores that are owned by apple. They also provide services such as Itunes and apple store which sell apps and music on the go.
Prices of apple products, their Ipads range from US$500 to US$600, their Iphones range from US$400 to US$500 and Ipods range from US$200 to US$300. Their target customers are from upper middle class to the high class spectrum of society, they can set a high price than that of competitors as their products are of great quality and have a long lasting life and the consumers are aware of it.
The problem with this strategy is that apple can charge a premium price as long as they maintain a competitive advantage over their competitors. But now, due to android and windows phone the company is loosing its advantage as they provide similar or same features as Apple but that too at a much lower price. This has become clear as Apple's main competitor, Samsung has a mojority market share in smartphone industry and generally apple is considered as expensive product in most of the countries and consumers generally choose cheaper phones which provides same features at amuch lower price.
Even though Apple still carries its brand name and a very strong position in the market, it is being slowly taken away by android as the leading smartphone software due to its cheap prices and similar features. Coming years will be crucial in deciding Apple's fate as a smartphone company and see how they decide to compete with Android and Windows.
Prices of apple products, their Ipads range from US$500 to US$600, their Iphones range from US$400 to US$500 and Ipods range from US$200 to US$300. Their target customers are from upper middle class to the high class spectrum of society, they can set a high price than that of competitors as their products are of great quality and have a long lasting life and the consumers are aware of it.
Even though Apple still carries its brand name and a very strong position in the market, it is being slowly taken away by android as the leading smartphone software due to its cheap prices and similar features. Coming years will be crucial in deciding Apple's fate as a smartphone company and see how they decide to compete with Android and Windows.
