Wednesday, October 26, 2011

It's All Part of the Plan


A few years back, Apple products were some of the more expensive goods in the market. Prices were high, yet the technology was so advanced that it kept consumers coming back for more. Soon enough, Apple competitors, such as Verizon, Samsung, and T-Mobile, started producing smart phones similar to the Iphone, enabling you to skip the long lines for Mac products. As soon as Apple began to be regarded as ‘overpriced’, the former Apple Co-Founder, Steve Jobs, started sketching new strategies. The company started to lower their prices to where there really isn’t much competition anymore. Sure, you can always find cheaper alternatives, but nothing as great as Apple. From the iPad, iPhone, and iPods, “the aggressive pricing, analysts say, reflects Apple’s ability to use its growing manufacturing scale to push down costs for the crucial parts that make up its devices.” For many reasons, this was a great move on their part. The new iPhone 4s came out only a few days ago, and already sold more than four million over the debuting weekend. That just goes to show how superior Apple has become in today’s world of technology. Is there really much else to argue?

4 comments:

CooperT said...

Apple has done a great job of controlling the smart phone market. When someone else came out with something new, they released a new operating system, or device. When nobody was buying because economic issues, they dropped the 3s to $49. They know how to convince people to buy.

Nicole K said...

I completely agree, Molly. Apple knows how to knock out all of their competition with a blink of an eye. They have almost completely perfected their equilibrium between supply and demand. Their pricing is high enough to where people who are looking to show off their money and low enough to where at a point, most everyone can afford it. They originally are very high priced, but they get lowered a lot. First, they lower it when you are eligible for an upgrade, then they lower it when a new phone has come out. Like CooperT said, the 3s was dropped to merely $49.99 and is still extremely high value. Even with the iPad and their computers and laptops, the price is always lowered at some point. Other companies tend to either keep a high price like certain luxury good companies and others keep their prices low like Walmart. Apple is like a happy medium. They are extremely good marketers and know most everything about their products. Apple never ceases to impress.

Nicole K

Molly Aaron said...

Glad we're on the same page. Apple has done wonders with their company. It's no surprise their success is known worldwide. Nicole K, you said it perfectly saying they are a happy medium. That's not easy to accomplish, yet they have done the inevitable. Let's hope they keep it up. I look forward to what they will uncover next.

Anthony Escobar said...

The demand for Apple products are always going to be high, well because... It's Apple. They have been very smart on how they have priced their prices, but in my opinion on when they have decided to release the new and upgraded products. In my eyes, Apple has been doing everything right in the world of electronics.