Iphone 5c price decision essay

A brief introduction about the importance of marketing mix strategy has been presented which is followed by a brief description of iPhone 4S including its price and feature. The assessment of product strategy, pricing strategy and promotion strategy of iPhone 4S indicates that it is an innovative product and the prices are designed keeping in view the requirements of middle end consumers. The promotional activities for iPhone 4S indicates that it is promoted through TV commercial ads and the marketing mix adjustment strategies has also been proposed which indicates that the prices for iPhone should be matched with other similar range of mobile phones.

Iphone 5c price decision essay

In a world of cutting-edge technology, companies need to keep penetrating markets by promoting innovative products Nokia and Blackberry being pertinent exceptions to the norm.

Yesterday, the stock market made its judgement: Apple’s stock price dropped from about $ to $ and opened Wednesday even lower, in the $ range. Sep 12,  · Iphone Essay; Iphone Essay. Iphone Technology. Words | 13 Pages. The iPhone 5c is the most valuable phone on the market today. It is more cost effective than its competitors, cosmetically pleasing, and has more advance features. The first one is a skimming price decision and the second one is a penetration pricing decision. 1. Sep 12,  · Iphone Essay; Iphone Essay. Iphone Technology. Words | 13 Pages. The iPhone 5c is the most valuable phone on the market today. It is more cost effective than its competitors, cosmetically pleasing, and has more advance features. The first one is a skimming price decision and the second one is a penetration pricing .

So then why did Apple reduce the price differential between that and its superior counterpart 5S to a mere hundred dollars? The answer lies in a clear manifestation of the psychological principle of relativity.

Why didn’t Apple price the iPhone 5C lower

Consider the following situation: Odds are that you would consider the offer on its merit and probably go for it. A reversal of this argument holds surprisingly true in the 5C vs 5S purchase decision.

However when viewed as simply the gap between 37, and 43, the relative cost of the additions seems much smaller. In effect, the 5C would enhance sales of the 5S rather than cannibalizing it.

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Consider further the anchoring effect. Their initial valuations notwithstanding, by pricing the 5C steeply, Apple primes its customers to consider it as a far too expensive proposition. However their own estimates are likely to fall back to the initial range of say 20, rupees but would hover around 30, rupees.

Iphone 5c price decision essay

Factoring in higher margins, this would reflect in a better profit for Apple even if certain customers dropped out of the buyer set. No prizes for guessing.

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Qrius delivers fresh, immersive writing that answers the question 'Why should I care? Follow us on Facebook.Essay on Iphone 5C price decision The fist factor that important in the pricing decision of iPhone 5C is by considering costs.

For instance, since Apple Inc.

Analysis on Apple iPhone | Essay Example

wants to maximize its profits through establishing new products, the price should be set at the point where marginal revenue equals to marginal cost. By Akhil Raj Gupta. Edited by Edited by Namitha Sadanand, Senoir editor, The Indian economist In an announcement that had surprised analysts the world over and left many incredulous customers shaking their heads, Apple had launched its iPhone 5C model at a price that many considered unreasonable and downright outrageous.

The perceptual map in the maturity stage for Apple iPhone 4S indicates that the quality of the phone would remain the same but there will be decline in the prices of iPhone 4S because of lower relevance for iPhone 4S, as the company is planning to launch iPhone 5 with most admirable features.

Yesterday, the stock market made its judgement: Apple’s stock price dropped from about $ to $ and opened Wednesday even lower, in the $ range. What’s interesting is the intended outcome of the 5C — attracting price sensitive iPhone customers who buy on-contract — could have also been accomplished with a new pricing strategy.

By Akhil Raj Gupta. Edited by Edited by Namitha Sadanand, Senoir editor, The Indian economist In an announcement that had surprised analysts the world over and left many incredulous customers shaking their heads, Apple had launched its iPhone 5C model at a price that many considered unreasonable and downright outrageous. The price for an unlocked iPhone 4S 16GB is $, a 32GB iPhone 4S is $, and for a 64GB iPhone 4S the price is $ (Apple Inc., ). The unlocked iPhone can support GSM carriers worldwide. We will write a custom essay sample on Iphone Price Analysis specifically for you. Essay: History of iPhone. Posted on January 22, by desouza. The fifth generation of the iPhone included three models: the iPhone 5, 5C and 5S. The iPhone 5 was redesigned successfully. This essay about iPhone history is provided by one of experts who works with benjaminpohle.com established writing company.

The fist factor that important in the pricing decision of iPhone 5C is by considering costs. For instance, since Apple Inc.

wants to maximize its profits through establishing new products, the price should be set at the point where marginal revenue equals to marginal cost.