From the current information systems publications reviewed, it is clearly evident that the sale of iphones is predicted to increase contrary to what analysts had earlier predicted. This is due to the increased number of iphones produced and activated by the Verizon. Evidently, the rate at which people are embracing technology is amazing. Verizon activated approximately 3.1 iphones. This is a clear indication that its sales will be positive.
Analysts from Fortune had earlier predicted a low sales turnout of 21 million (Whitney, 2012). Besides, the numbers of iphones traded in the market are 25 million and 35 million in the first quarter and second quarter respectively. On the other hand, internet users are able to lay down their viewership objectives for various videos through YouTube. This in return could be useful to those videos that are not aimed at making profits.
Besides, YouTube provide analytical support to those individuals who want to share videos on the internet. “Digital thermometer” can be used to establish viewpoints. Moreover, campaigns can be used to set up goals for the videos (King, 2012). Through setting up the goals, there will be an increase in the number of viewers and their fans can easily contribute in establishing the goals.
Importance of the issues to the information system profession
From the issues discussed, internet users are able to obtain relevant information regarding the iphone. Besides, many people are now informed on the number of sales and the profit iPhone company has made in the last quarter. Customers can buy the iPhones at their own disposal (online) as they do not have to go to the respective shops.
Concurrently, YouTube viewers can now share videos online free of charge. Additionally, single or multiple videos can be posted online. Through YouTube, nonprofit programs can be posted. This will eventually help in providing knowledge and changing lives of individuals. YouTube viewers can also evaluate the trends and patterns of two unlike metrics. These indicate the advancements in the information system as a profession
How the issue is related to the course
The issues in the articles reviewed are related to the course in a number of ways. The information about the discussed products is in line with the information system profession. Besides, the ideas from the issues are directly connected with the information system.
Concurrently, the issues discussed in the YouTube’s context are related to the course since software developers can easily present their inventions online. Beside, relevant information regarding YouTube videos can be posted by the nonprofit organizations and viewed by the internet users.
How the issue will impact the profession
Evidently, the current issue discussed will impact the information system in numerous ways. For instance, the current advancements mentioned earlier have improved the image of the profession. Currently, many people prefer using the internet to explore various ideas regarding a product or an issue. Additionally, those involved in the information system are able to widen their thinking capacity by obtaining relevant and vital information.
On the other hand, more associations will be noticed in the nonprofit programs found in YouTube. Besides, through YouTube, formal request can be signed, international laws (regarding media) can be changed, and patents can also be provided with limited barriers. This is a critical provision in various contexts. It is vital to understand the provisions of information systems in regard to YouTube.
The iPhone has been in the market since 2007, when Apple Inc released the first generation of this phone. The company has managed to develop the product up to the seventh generation, which is the latest product in the market. The demand for smart phones in both the American and the international market grew over the last couple of years (Brower 153).
Apple Inc is aware of this high demand in the foreign market, and identified Brazil and China as potential markets. IPhone is an established brand in America and a few European markets, thus the need to pursue this ambition of achieving global market leadership. The company desires to make successful entry into international market, especially in Brazil and China as a strategy for its overall success.
It is important for Apple Inc to consider complications that characterize successful entry into foreign markets because of high vulnerability to various risks, differences in business culture, as well as numerous legal obligations to fulfill (Brower 160).
Achieving success in a foreign market requires thorough market analysis that assesses potential of the target market in terms of complementary skills, accommodating cultures, attuned goals, and corresponding risk (Masaaki & Helsen 30). This research paper will discuss Brazil and China as potential international markets for the iPhone.
The Brazilian Market
Brazil is one of the fastest growing economies in the world. The economic welfare of Brazil’s population has improved over the last decade, with 60% of population at least belonging to the middle class (Hill 100). The government has developed effective economic policies and structures that have attracted local and international investors into its economy. One of the largest industries in Brazil’s economy is telecommunication.
The mobile market in Brazil is very vibrant, as people are increasingly acquiring more knowledge and awareness on technology (Hill 109). Smart phones dominate the biggest portion of the market. The country’s mobile industry ranks sixth in the world, with statistics indicating that 19 million smart phones are in use in Brazil. This number will double by the year 2015, which means that demand for smart phones and user preferences will increase (Brower 163).
The idea by Apple Inc to venture into the Brazilian market is ambitious, but they have to prepare themselves for a tight battle in acquiring a share. The iPhone will have difficulty ensuring success in Brazil because of higher financial obligations in terms of import tariffs (Hill 116).
The import tariffs used in Brazil are very high, and make goods from other countries to have high market prices. This reduces the ability of such products to compete actively with existing brands, which have competitive market prices. Another risk that the iPhone is likely to experience is a dynamic market, characterized by massive evolution and high acquisition of smart phones over the last one year (Brower 169).
The Brazilian market has already experienced the world of smart phones, and the iPhone will have to settle for a very small portion of the market to start with. The expected high price for the iPhone once introduced into the market, is likely to influence a low percentage of the market that the product will control.
The iPhone faces a lot of competition from its imitation brands that provide consumers with cheap alternatives and sophisticated options (Brower 170). The smart phone market in Brazil is flooded with imitations, which unfortunately enjoy good representation in the market. These phones have digital televisions, a feature that most Brazilians seem to like.
Apart from these imitation brands, the iPhone faces huge competition for the market with other global brands such as Samsung, LG, Nokia, and Motorola. Samsung and LG are the leading brands in this market with a market share of 42.4% and 13.3% respectively (Hill 131).
Brazil is an emerging market for smart phones with most users using their phones to access the internet and social networking sites. In Brazil, 83% of internet users access the service using smart phones. The iPhone can change the nature of smart phone market in Brazil by developing quality products with much focus directed towards outbidding their competitors (Brower 176).
The iPhone is one of the high quality products from Apple Inc that easily penetrate any market. However, for the sake of this market the company needs to understand the value of having a sizeable market share above potential competitors.
The Brazilian smart phone market does not care much about great products, but instead focuses on meeting needs of consumers (Hill 138). If Apple Inc wants to achieve market leadership with the iPhone, it is important for them to develop a product that appeals to the market by understanding consumer needs and patterns.
The Brazilian smart phone market has a huge potential to support the growth of the iPhone brand. Predictions by technology and economic experts show that by 2015, more than 75 million Brazilians will have smart phones.
The experts also warn against competition from Apple products created in China, and the emerging Android phones that can easily take over the smart phone market (Hill 139). I think Apple Inc needs to consider venturing into the Brazilian market, because the current trends in the phone industry shows potential for a lot of growth in the next five years.
The China Market
Just like Brazil, China is one of the fastest growing economies in the world. China’s immense dominance from a deprived agrarian financial system to an economic giant is unmatched by many. The last two decades have seen China go through incomparable economic escalation.
This growth has elevated China among the major economic powerhouses in Asia faintly behind Japan (Holloman 12). In the global economic market, China ranks as the sixth principal merchandising country, the twelfth biggest exporter of business services. it is also the leading recipient of unswerving overseas investments.
China is receiving a sizable share of foreign capital that has resulted in close to 50% lessening in foreign capital among its neighbors (Holloman 17). China is at present the second leading trade resource for the United States, evidenced by the number of American investors in China. One of the most vibrant markets in China’s economy is that of smart phones.
China is a major player in recent developments experienced in the global phone industry. The biggest contribution has been on the smart phone market, which is very huge owing to the country’s large population (Brower 160). According to studies conducted in China, there is a high preference for smart phones among the young people compared to the younger generation.
This is a positive indicator about the future of the smart phone market in the country. Smart phone users in China have preference for quality and value for investment whenever they want to buy a smart phone. Other important considerations for consumers in this market are the features supported by a phone, the type of operating system installed, as well as a stylish design and user friendliness (Holloman 30).
Most smart phone owners in China access the internet over their phones, thus the need to have a product that can meet that need. When introducing the iPhone in this market, it will be important for Apple Inc to ensure that the product meets these specifications, in order to increase its ability to compete well with other brands.
Chinese people prefer to use smart phones for a reason. Smart phones are easy to use, have less density, portable, easy to retain or posses, as well as their competitive market prices (Holloman 41). Apart from using their smart phones for accessing the internet, Chinese people also engage their phones in gaming, social networking, checking the weather, finding locations on maps, banking and other commercial activities, as well as entertainment and getting information.
It is important for Apple Inc to introduce an iPhone that can support all these users needs for smart phone users in the Chinese market. This will not be a challenge because the current generations of the iPhone support these needs. One of the key features of China’s smart phone market is the inability of any single brand to enjoy market monopoly (Holloman 52).
The iPhone will have to fight for its place in a market dominated by both local and international brands of smart phones. Various smart phones developed in China such as Xiaomi, Huawei, Lenovo, Oppo, and ZTE have a huge presence in the local market. The biggest challenge for the iPhone is that the locals have a high preference for these local brands (Brower 201).
These brands are affordable and feature oriented according to the market needs. International brands that have cut a niche for their products in the market include Samsung, Sony, Motorola, Sony Ericson, and LG. Introduction of the iPhone will change the dynamics of the smart phone market in China.
Buyers will have more options to choose from and get an increased value for their money through increased quality. The Chinese smart phone market has huge potential to influence growth of the iPhone brand (Brower 224). The iPhone has all the features needed by phone buyers in this market, thus the need for Apple Inc to carry on with its plan to venture into the market.
Conclusion
The global smart phone industry is growing very fast, and developers need to be aggressive enough in order to match the dynamic market needs. Apple Inc is one of the developers with a good chance to influence change by penetrating the mobile markets in Brazil and China. China is a major player in recent developments experienced in the global phone industry.
The iPhone has the potential for market leadership, if it develops around the user needs and preferences in its target markets. The current generations of the iPhone meet most needs of users in the two markets, but there is a need to improve on a few features in order to make them competitive enough and affordable to all buyers in the markets.
Works Cited
Brower, Tanya. Competitive Dynamics in the Mobile Phone Industry. London: Palgrave Macmillan, 2011. Print.
Hill, Charles. The Global Smart Phone Revolution. Cambridge: Information Gatekeepers Inc, 2010. Print.
Holloman, David. China Catalyst: Powering Global Growth by Reaching the Fastest Growing Consumer Market in the World. California: John Wiley & Sons, 2013. Print.
Masaaki, Kotabe, & Helsen, Kristian. Global Marketing Management. New York: John Wiley & Sons, 2010. Print.
E-marketing is one of the latest forms of marketing strategies that are increasing in popularity. This concept is a major component of any marketing plan. This report looks at the e-marketing strategies for a phone brand.
The report discusses e-marketing and some of the major concepts that are applied while focusing more on the works done in this area. The brand on which focus is placed is the iPhone. The report begins with an analysis of the major competitors in terms of how they use of the e-marketing concept.
In comparison, the chosen brand is doing better in relation to its main rival who is also discussed to be applying advanced techniques in e-marketing. The report provides some of the recommendations for iPhone, including the development of an elaborate e-marketing strategy.
Introduction
The invention of the internet has revolutionised marketing based on its increased use throughout the world. Organisations are able to reach diverse clients at different parts of the world using this technology.
The use of the internet in marketing has led to the emergence of the concept of e-marketing, which is an important concept in the modern-day marketing field (Marie-Odile, Jean-Charles, Zhiyong & Sanjay 2010).
E-marketing, which is the short form for electronic marketing, refers to the marketing principles that use electronic media (Dennis, Merrilees, Jayawardhena, Wright 2009). According to Yadav and Pavlou (2014), this form of marketing is synonymous with internet marketing, web-based marketing, and online marketing.
This form of marketing has proved very useful in the contemporary marketing practices. It has made it easy for organisations to market their goods and services in an efficient manner. Just like other forms of marketing, e-marketing requires an elaborate marketing strategy to succeed (Ho & Dempsey 2010).
The telecommunication industry is one of the industries that have embraced e-marketing. Competition has shifted from the traditional platforms to this form of marketing. Companies are engaged in competitive practices over the internet (Ellis-Chadwick & Doherty 2012; Gaskill & Winzar 2014).
This paper presents a marketing strategy for the iPhone. However, it focuses on the techniques that the brand has chosen to use in e-marketing in addition to those that are used by the competitors. The report also features some of the recommendations that may ensure a successful e-marketing campaign for the chosen product.
Brand Synopsis
The brand whose e-marketing strategy is presented is the iPhone, which is a product of the Apple Company. The product is a mobile phone with several capabilities that differentiate it from other types of phones that are present in the market. Apple has been known for making smart gadgets.
It is the leading manufacturer of computers and other electronic gadgets. The phone has one of the main features being the ability to run on advanced operating system that allows its users to perform an array of different tasks at the same time.
The design of this phone has been described as one of the most revolutionary of its kind, with many individuals demonstrating a liking for the functionality of most of its parts.
This brand of phone is located in the Smartphone category. It is among the pioneers in the use of different technologies within the device.
The manufacturer guarantees a longer battery life compared to other Smartphones, better speeds while using the internet, and a range of applications that may be installed to help the owner manage the day along with other daily functions.
This phone represents the latest computer technology, which allows its users access and operate some of the programmes that were previously limited to computers.
The other aspect about the brand of the phone under discussion is the positioning within the market sector in which it is situated. The iPhone has continued to register significant success in this sector, with stocks being bought for every new design that is produced.
The positioning can also be described in the form of pricing for this particular product. The phone model is premium priced, with most of the buyers having the capability to buy at this price.
The presence of stiff competition from other companies and other established brands have not hindered the positive performance of the iPhone on the global market. Few companies are as competitive as this company. The phone model has few critiques.
The targeted market in the e-marketing campaigns consists mainly of young individuals who are able to operate this kind of phone. In most of the surveys that have been conducted, the popularity of Smartphones is mainly in the younger generation of individuals that are tech-savvy and are usually using the internet.
This generation of customers prefers phones that are fast on the internet, and whose capability rivals that of other models. Therefore, the e-marketing campaign that is carried out for the iPhone targets the young generation and most of the individuals who have the technological expertise.
The key features of the brand that add value in the marketing campaign include the strong brand name that the maker company has managed to build in other areas.
The company has managed to replicate the same in the phone manufacturing industry, with the iPhone being the product of this innovation. The other features of the phone include the sleek design that is characteristic to this model, which has allowed its easy identification in the marketing campaigns.
The brand synopsis looks at the capabilities of the product under discussion, its performance in the market, the customer preference, and its likely performance at the market. The iPhone is a relatively successful brand on the international front.
It uses its particularly renowned brand name to expand its online and offline influence. Companies that use their brand names effectively on the internet have better success in their marketing strategies (Strauss, Ansary & Frost 2006). However, the use of one form of marketing is not advised.
Organisations should ensure that they diversify their marketing strategies (Rocha, Jansen, Lofti & Ribeiro Fraga 2013). It is important to consider the use of e-marketing by some of the competitors in the same industry.
Pegoraro (2013) confirms that competitors set a benchmark on which a company can assess its performance. Therefore, the following section presents an analysis of the main competitor for the company and brand name under discussion.
Competitor Analysis
The main competitor for Apple’s iPhone is the Samsung Galaxy. This model of the phone has a series of phones in it with special features that are closely related to those of the iPhone.
According to Pope, Silva, and Almeyda (2010), competition is usually high for companies that produce products that are similar in design and function. This competition is even higher if the companies choose to push it to a higher level and engage in e-marketing (Hamblen 2008).
Samsung Galaxy phone models are well positioned on the internet where they offer stiff competition to the iPhone.
The Kapferer’s method is an ideal one in the illustration of how the competitor brand engages with each other in digital marketing (Kapferer 1992; Constantinides 2006). This model is useful in the context where the analysis of iPhone’s competition is carried out.
Physique
According to Kapferer (1992), the physique of a competitor in e-marketing refers to the position of the company or brand in online marketing. Samsung Galaxy has a favourable position on the Search Engine Results Page (SERP), with the listing being equivalent to the level of the iPhone.
SERP allows customers to access the products that they are looking for using short terms that may be otherwise too short for engines to provide results. A product that is performing adequately on the e-marketing platform has a better SERP listing.
Search engines provide a list with the product in the initial search of terms that relate to the product (Whiting, & Dixon 2012). Samsung Galaxy is a common term on search engines, and hence the high listing on the SERP.
However, this finding is not as high as the SERP listing on the iPhone, which is equally popular with many internet users.
Search Engine Optimisation (SEO) is a common term in online marketing. Companies often target to increase their visibility on the internet using this technique.
In this technique, companies often make many attempts to have their products appear early and more frequently on search engine results list since this strategy is a guaranteed way of attracting visitors to their main site (Levy 2012).
Samsung is one of the companies that use aggressive SEO to increase the number of visitors to their homepage.
Samsung Galaxy may be found on social sites such as Facebook, Tweeter, and Hi-Five among others. The use of social sites constitutes another important marketing strategy for companies that use e-marketing (Schulze, Schöler & Skiera 2014).
The use of advertising on other companies’ websites is common on the internet. This method of e-marketing is applied by Samsung Galaxy. The same advertising campaign is applied by the iPhone, which is present on a host of other companies’ websites.
Personality
Brand personality can be communicated in the marketing strategy that is employed by a particular company. This claim is also the case in the e-marketing strategies employed by various companies.
Samsung Galaxy is one of the companies that practice it. The company that markets the product uses an avatar, which ensures ease of marketing for this rand.
The personality of the company in marketing may be communicated through a number of ways, including the use of words, images, and the tone of messages during communication (Baye, Gatti, Kattuman & Morgan 2007). E-marketing has continuously applied the use of these concepts in marketing communication.
Samsung galaxy uses wording as the main strategy in the determination of personality during marketing of its brand. Many customers can identify with the wording that is used by this company on the internet to market its products.
According to Kapferer (1992), e-marketing has not overcome the reliance of wording in its marketing tactics. However, this form of marketing is dependent on images as compared to voice and other characteristics of marketing.
Many of the companies that market their products online use images to market their products (International Business 2013; Teresa 1998).
Samsung Galaxy is compatible with iPhone in its use of e-marketing, with both companies applying visual and audio marketing in their e-marketing strategies. The company uses this component of e-marketing to enhance its presence on this marketing platform.
Tone is also an important part of e-marketing since it allows companies to advance their marketing strategies and/or improve their product performance. Samsung Galaxy can be said to be one of the companies with an efficient use of tone in their online marketing strategy.
Relationship
In the marketing, the relationship between organisations and companies is important to foster since it allows companies to interact positively with each other.
E-marketing has allowed the interaction of companies through a number of ways, including building relationships between companies and their customers (Kim 2013). Samsung has enabled positive interaction between companies and customers.
The company has created virtue communities through the creation of blogs and other access and interaction points. Companies that offer complementary services can access Samsung Galaxy’s products through these special sites that have been created purposely for this role.
The communication models that Samsung Galaxy mostly uses include one-to-one communication, one-to-many, and the many-to-many concepts.
These models allow vertical and horizontal communication between the various players in the market in which the company operates (Morgan-Thomas & Veloutsou 2013; Edwards 2013). This strategy is an effective means of ensuring continuous contact between the company and the different clients and customers.
The communication between the various organisations that offer products and services that relate to those offered by Samsung Galaxy enhances perfect marketing between the companies. iPhone has a marketing strategy that utilises the same means of ensuring a working relationship between individuals and companies.
Culture
In this section, culture as it relates to e-marketing refers to the brand values that are evident in the online marketing campaigns for the competitor. Most marketing strategies have an underlying culture that is spelt out in the different strategy policies in place for the particular organisation.
According to Bartikowski, Walsh, and Beatty (2011), these strategies include the actions taken by the company in its marketing and the statements that it provides on its site. Samsung has provided a number of policies and statements for its Galaxy models.
These include the policies that the company may adopt in the course of its marketing protocols. The company provides many other policies, including the goals, mission, vision, and strategic objectives.
Some of the features of a marketing strategy make it successful (Doherty & Ellis-Chadwick 2009; Smith & Munn 2006; Devi & Anitha 2013).
Reflection
This section presents the means by which the competitor is finding out about the target markets’ wants and needs. Several methods are used to ensure that a company establishes the needs of the targeted market.
One of these ways is the conducting of consumer surveys that establish the consumer preference for some of the products that are on offer. Samsung has a fully functional feedback mechanism through which customers can interact with the company.
In the adverts that the company sponsors for Samsung Galaxy, there is the provision of special links through which customers and other interested individuals may provide feedback to the company. The company also sponsors some surveys that are meant to establish the prominence of the brand.
Self-Image
Samsung Galaxy, just like most other phone brands, allows the prospective customers and other individuals who access their website to interact with the company and create a valuable self-image.
Some companies are reported to invite their customers to send photos of themselves (selfies), although this strategy is not practiced in Samsung Galaxy brand marketing.
This tactic can be a defining difference with the suggested marketing plan for the iPhone because it allows customers to interact with the manufacturer at a personal level (Chebat, Davidow & Borges 2011; Coviello, Brodie, Brookes & Palmer 2003).
The iPhone
The same model that is used above can be applied in the marketing strategy that iPhone utilises.
Physique
The iPhone has an online presence that can be compared to that of its main competitors. The brand’s presence on SERPS is adequate, with a favourable position in the same scale. The company uses several marketing strategies in its e-marketing campaign.
These strategies are compatible with those of its competitors. The main difference is in the use of SEO where the company has adopted a favourable position in the use of SEO. According to Goldsmith (1999), social sites are increasing in influence in the practice of e-marketing.
The iPhone has not been left behind. It has an established presence on all of the social sites. The company runs its advertising campaigns from this platform where major decisions and marketing policies are made (Challenges In E-Business And E-Marketing 2014).
Personality
Just like its rival company, the iPhone has established methods of communicating with the target audience. The e-marketing campaign is tailored to meet the needs of large companies, individuals, and other parties that may be interested in the product.
Vertical and horizontal communication is ensured using images, an adequate tone in the audio messages, and the use of appropriate wording. This mixture ensures that the company’s marketing strategy manages to capture the attention of as many individuals and companies as possible (Apple-iPhone 2014).
Relationship
The iPhone has a well-established online culture where it has managed to build relationships with other companies on the online front.
The adverts and websites for the company have a distinctive culture that is evident through the various available statements. The mission, vision, objectives, and targets for the brand are listed on the respective sites and online adverts.
Culture and Self-Image
The iPhone has a culture that is similar to the one adopted by its competitors, especially the main competitor brand that is discussed above. The internet allows the reflection of individual customers. The company has a policy that allows the reflection of customers who are involved in its usage.
The framework is in place to allow customer feedback for the various products that are available under the brand. Users can provide feedback on the company’s website, with a promise of action for any of the reported issues.
Conclusion
The use of e-marketing is an effective method of advertising and marketing. It allows companies to improve in sales. The iPhone’s main competitor that is discussed in the paper is Samsung Galaxy. The paper establishes that the brand is performing very well in its online marketing campaign.
There is a need for improvement in the strategies employed by iPhone if it is to remain competitive on the online front.
Recommendations
For online marketing to be successful, the iPhone company should make several changes while introducing revolutionary methods of carrying out this form of marketing. The company needs to create a site that is dedicated to this product to ensure that there are many visitors to this site.
There is also a need for a vigorous marketing campaign for the product to ensure that people have the appropriate information on how to access the site. The company needs to operate on the various social networks to ensure that it is visible online.
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Consumerism or consumer culture is a significant trend influencing contemporary society. It is characterized by the fact that people spend a lot of money on material goods in an attempt to attain and maintain a particular lifestyle. At times, products that are seen desirable by people are very expensive, and people end up using loans or financing schemes to obtain them. Along with other Apple products, the iPhone is an example of a product that is considered desirable.
iPhones are much more expensive than any other smartphone, but the differences in features are minimal. As a result, iPhones are not worth the cost and people only buy them because of the brand’s image.
iPhones are the most expensive smartphones that exist in the market at the moment. A few years ago, it would have been considered bizarre to pay about $1000 for a phone. There was much more variety in terms of producers and models, and any person could choose a phone that matched their needs and design preferences, all at a reasonable price. Today, the latest iPhone XS costs from $999 to $1449, depending on the capacity and screen size.
This is much more expensive than the price set by other smartphone manufacturers, including Nokia, Huawei, and Sony. Samsung is another famous manufacturer that has some models that are comparable to iPhones in terms of their price, but the company also has several models that are much cheaper, thus allowing every person to find the right fit for the budget. Therefore, iPhones are the most expensive smartphones at the moment, and they also have minimal variability in terms of models and prices.
The striking difference in the cost of iPhones compared to other smartphones is not justified by their features, specifications, or any other real benefits. While Apple claims that each of its iPhones is innovative and uses technology that no other smartphone can offer, these are merely marketing claims used to sell the product. In reality, iPhones have the same features and functions that most other smartphones provide at a fraction of the price.
They indeed have a great camera and a broad range of applications available for download, but so do most Samsungs and Nokias. There are also some aspects where iPhones are worse than other brands, including battery life and the cost of maintenance. For example, fixing a broken screen on an iPhone would cost two to three times more than one would pay to fix their Nokia. Hence, the price of iPhones does not correlate with their functionality and features.
Nevertheless, the fact that iPhones are severely overpriced would not be surprising for many users. Still, people line up to buy a new model each year because iPhones are associated with a degree of luxury and are an item for people to flaunt in front of their friends or colleagues. This is primarily due to Apple’s smart branding strategy, which positioned the iPhone as a luxury item right from the beginning, causing people to associate it with a particular lifestyle and making it more desirable. This process provides an example of consumerism because it shows that people are willing to spend money on a product that is not worth the cost only to support a certain image and lifestyle.
Overall, it is clear that iPhones are not worth their cost. There are many other smartphone models available that have the same features or better. Moreover, the price of iPhones does not correlate with their functionality, and most people are aware of this. However, people still buy iPhones because they are associated with a luxury lifestyle and are perceived as desirable in society. Hence, iPhones can be used to exemplify consumer culture that has had a significant influence on our society.
The product purchased was an iPhone 8 created and distributed by Apple Inc. It is part of the company’s popular line-up of smartphone devices. The smartphone is a highly technological product, maintaining many functions and features. Beyond its basic phone calling and text messaging capabilities, it has access to the Internet, various mobile applications, and an integrated camera. The device has premium quality, in its build, ergonomics, modern internal components, and a software ecosystem that has been developed with a primary aim of consumer satisfaction (Victor).
The primary reason that I have purchased this product is that I required an upgrade from my previously outdated and partially damaged phone. The selected device had the necessary features that I require from a smartphone for daily use. Several aspects influenced this purchase, including the fact that I had previously used Apple products and had been satisfied with the quality. Furthermore, many of my family and friends who have upgraded to this smartphone in recent months have demonstrated significant comfort and delight with the product.
Finally, general reviews for this specific iPhone were favorable, praising its speed and quality. In combination, these factors led me to consider the purchase from the perspective cost-to-value ratio, quality, and ability to remain within the same technological ecosystem as my friends and family which allows for more connectivity options (i.e., Facetime video calls).
Maslow’s Hierarchy of Needs
Maslow’s Hierarchy of Needs is a theory which seeks to describe the psychology behind human motivation, and in turn, behavior (McLeod). Purchasing an iPhone can be arguably fulfilling several needs in the hierarchy. Safety needs are met since the iPhone can be used directly as an efficient method of communication to call emergency services. Modern devices also protect the health, by monitoring heart rate and tracking other indicators. Finally, the device is useful in protecting a vital concept in modern life, privacy, and information, with iPhones maintaining top of the line cybersecurity.
The most important aspects that the iPhone fulfills are psychological needs. Belonging is greatly promoted by establishing a sense of connection through the provision of various methods of communication with friends and family, contributing greatly to forming relationships in the long term. Furthermore, being within the same Apple, one can interact socially through programs and games. Having an iPhone creates a significant feeling of love and belonging, at least, an illusion of it. The device also contributes to esteem needs, as a new iPhone purchase commonly draws attention and potentially fascination with others. The high price point of the phone establishes a luxury status as well, boosting social respect and confidence.
Brand Personality
Brand personality is defined as the “set of human characteristics associated with a brand” (Aaker 347). It is inherently a symbol that personifies a product into trends and attributes which define its user. Apple had cultivated its brand over decades, causing it to lead the list of most valuable brands according to Forbes magazine for eight continuous years (Badenhausen). Its branding strategy is focused on emotions and lifestyle.
It attempts to remove complexity from seemingly highly technological devices and the market as a consumer-driven design. The brand appeals to practically every user of technology, ranging from creative to social psychological profiles. Apple seeks to establish a heartfelt emotional connection in its brand, emphasizing that it is more than a technology company, but an enterprise to change the world for the better (Vilner).
By purchasing Apple products, one becomes part of the large, interconnected ecosystem. It has created an ecosystem and microcosm of its own, regarding both hardware and software. Despite its widespread popularity, there are relatively few third-party additions, customizations, or iPhone compatible products in comparison to other smartphone manufacturers. Once a user begins using Apple devices, it becomes increasingly difficult to stop, since data transfer and compatibility with other systems is extremely limited. This provides Apple with significant power over control of its prices and features (Moorman).
Overall, the brand personality and marketing strategy of Apple is considered nearly perfect by most experts in the marketing industry. It has become a definition of inclusivity, coolness, and innovation, as well as luxury for its high-end smartphone devices.
Decision-Making Process
The first step in problem recognition occurred when my previous mobile phone began to malfunction. It would interfere with my ability to communicate with others as well as having various negative characteristics such as the battery losing charge after a few hours of usage. I realized that the problem must be resolved through the purchase of a new smartphone device. The information search stage occurred through both, online research of modern smartphones at the price range I could afford and features that I needed.
Like most people in society, I was aware of the most recent iPhone releases and what they encompassed, due to the heavy marketing and social word-of-mouth advertising that Apple excels at. Furthermore, I asked for the honest opinion of those people that already owned the device for some time and could offer insight into its positive and negative aspects. Evaluation of alternatives was done by comparing smartphones from different manufacturers online. I used a popular feature on many websites that allows comparing phone characteristics side-by-side. Also, I went to a mobile phone store to visually compare my options.
The purchase decision was evaluated based on the available information and opinions that I formed during my research. I sought to select a smartphone with the best quality, but also high cost-to-value indicators. Once I had the necessary financial capability to make the purchase, I went to the store and made sure to examine the phone on display a final time before confirming the acquisition. My post purchasing behavior consisted of setting up and using the device to familiarize myself and evaluate technical issues. I sought to share my purchase with my social circle as well. Overall, I realize that I bought an iPhone due to the heavy influence of Apple’s marketing and ecosystem, but I remain fully satisfied with the devices.
Works Cited
Aaker, Jennifer L. “Dimensions of Brand Personality.” Journal of Marketing Research, vol. 34, no. 3, 1997, pp. 347-356.
Bendable phones are viewed as the products that will be attractive to clients in the future and help smartphone producers to generate additional income. For this reason, for Apple, it is critical to introduce its own model of phone to preserve its leading positions in the segment and avoid losing clients. For this reason, the mission for the following project can be formulated in the following way:
The brand’s mission is to ensure that its clients will enjoy advantages provided by high-quality bendable iPhones and benefit from innovative and reliable software, hardware, and services.
The given statement preconditions the introduction of the next objectives:
To design an attractive, reliable, and innovative bendable device.
To create the software needed to support the functioning of the innovative device.
To provide clients with access to services unique for such devices.
To collect clients’ feedback related to the device to guarantee continuous improvement and creation of new, more effective models.
The unique feature of the device and the need for innovative technologies preconditions the high price for would-be bendable iPhones. For this reason, Apple can benefit from the employment of demographic segmentation method (Kotler and Keller 78). Designing the product and promotional activities, it is vital to consider the age of potential users, their income levels, and current needs. For instance, innovative technologies are usually welcomed by the youth; however, this category might have limited income that will prevent them from buying the bendable iPhone, which might cost about $2000 or even higher. For this reason, planning the STP process, it is vital to guarantee that the target audience will possess the high level of income and the positive attitude to innovative solutions, as it will ensure that the product will be successful.
The choice of the segmentation method also impacts the target market. As stated above, the potential audience will be comprised of loyal Apple’s clients, who possess the high and stable level of income and are ready to invest in new technologies that will become extremely important in the future. In such a way, the target market will be comprised of business people using other Apple’s products such as MacBook as they appreciate the high speed, friendly interface, and advanced compatibility with other devices. The focus on this segment is expected to help the brand to guarantee the increased level of income and sell an increased number of bendable iPhones.
Finally, it is vital to select an appropriate positioning strategy that will help Apple to ensure that clients will be attracted by a new product. At the moment, the firm is taken as an iconic brand that provides clients with high-quality and privileged devices that emphasise their social status and belonging to a certain group. For this reason, the quality positioning strategy should be employed by Apple as the way to differentiate it from other competitors who can also introduce bendable devices to the market (Kotler and Keller 121). The high quality of products means the high price; however, the target audience is ready to accept the cost because of the opportunities provided by a new device.
In such a way, the creation of a new bendable iPhone requires the focus on the target audience with a high level of income and characterised by the readiness to use and invest in innovations. The employment demographic segmentation method and quality positioning can help to acquire a competitive advantage and promote a new device among the target audience.
Work Cited
Kotler, Philip, and Kevin Keller. Marketing Management. 15th ed., Pearson, 2015.
In marketing, an organization should always ensure that the products or services offered meet the needs of the customers. A product has to benefit the customer for the customer to be satisfied (Pulizzi, 2014). While one of the aims of a business organization should be to satisfy the customers, making profits should be the bottom line.
In other words, marketing needs to have a win-win idea, whereby the customer benefits and the organization makes its profits at the same time. Whatever the organization sells, whatever features are on the products, the packaging used, the warranty, as well as other services, should be beneficial to the customer (Kazmi, 2014).
This essay will focus on the benefits that the latest Apple iPhone offers to customers. The latest iPhone by Apple is iPhone 6. The paper will discuss the benefits that the iPhone 6 has to its customers by giving detailed information about iPhone 6.
The core benefits of Apple iPhone 6
Apple iPhone 6 is a gadget that has a number of benefits to its users. First, it is a gadget that has most of the features that customers are likely to look for when making a decision to buy an iPhone. The first and most important benefit from the phone is the ability to communicate.
Apple iPhone 6 has the Nano SIM ability. It is, therefore, able to make and receive calls and SMS on the GSM network. It also has internet connectivity, thus one can communicate through emails and other online means of communication.
The second most important benefit that the Apple iPhone 6 offers to users is its speed of processing data. The present world is changing fast and people need to move fast. Therefore, a gadget that will process data faster is what customers need. Apple iPhone 6 is also able to store a lot of data.
It is portable and one is able to access the information they have stored in the gadget from wherever they are. This offers convenience and efficiency. The other benefit is the fact that Apple iPhone 6 is able to use 4G, 3G, or 2G networks. This makes it easy for users to access the Internet.
Internet access is vital in today’s world not only for business purposes, but also for personal use (Apple Inc., 2014). Apart from these core benefits, the gadget is relatively cheap, given its features and the benefits that one can acquire from it. Therefore, the price of iPhone 6 is also a benefit on its own.
Product features
Apple iPhone 6 has many features that are beneficial to the customers. It is a gadget that has come with almost everything that a modern customer will look for. Its processing speed is 1.3 GHz. It has a RAM of 1 GB and an internal storage of 16 GB, 64 GB or 128 GB, depending on what the customer needs.
Its camera is 8 megapixels, has a flash, and a front camera of 1.2 megapixels. The gadget uses the iOS8 operating system, which can be upgraded to iOS8.1. It has a high connectivity, as it can connect to Wi-Fi, Bluetooth, GPS, and uses 4G, 3G, or 2G networks.
The iPhone 6 has a SIM, meaning that it can make and receive calls, as well as short messages. In addition, the gadget has a good display with a resolution of 750*1134 pixels and a touch screen of 4.0 inches. These are features that have a lot of benefits to the users of Apple iPhone 6.
First, the fact that it can make and receive calls and short messages means that it satisfies the communication needs. Communication is an essential factor in the global world. The gadget has the ability to connect to the Internet and increase Internet access to the customers (Apple Inc., 2014).
The world is tending towards technology and people need to be connected to the Internet. The gadget offers this benefit. Its processing speed gives it a competitive advantage. With 1.3 GHz, Apple iPhone 6 is able to process data at a high speed in a convenient manner.
Customers will prefer a gadget that has an efficient and a speedy data processing capability. Its RAM of 1 GB is also a competitive advantage. It enables the gadget to handle relatively many tasks at ago and still be efficient, without slowing down. The RAM further increases its processing speed.
It also has a 16 GB, 64 GB or 128 GB internal capacity, which means iPhone 6 is able to store a lot of data without having to rely on any external storage. Finally, the camera is just what any customer would ask for in an iPhone. With 8 megapixels, it means the Apple iPhone 6 is able to take clear photos.
The photos can be taken photos from relatively far distances without compromising the quality of the photos. In addition, it has a 1.2 mega pixels front camera that enables the user to take photos of themselves.
Packaging
The packaging of Apple iPhone 6 offers a competitive advantage on top of being beneficial to the customers. First, the package comes with a USB cable and a charger, both for free. The customer will not have to buy these items elsewhere.
This makes it convenient for customers as they get the whole package of whatever they need to have an operational and an efficient Apple iPhone 6. It is packed in a protective box, which prevents it from any damage. Its packaging is generally beneficial and gives a competitive advantage to the gadget.
Warranty
Apple iPhone 6 comes with a warranty of up to one year. In the event that the gadget gets damaged without being affected by any external factors, it can be returned to the factory for free repair or replacement. This is beneficial to the customers, as they do not need to worry a lot in case such an event occurs.
The customer will not spend anything for the phone to be fixed within the warranty period. It is a competitive advantage, as the customers will go for the iPhone 6 with the assurance that their money is not lost in case the gadget has a problem within the warranty period.
Other services
On top of the above mentioned features, buying an Apple iPhone 6 comes with some extra services. For instance, one can have some basic applications installed by the vendor for free. It is also possible to access the applications for free from the Android App Store.
The phone can also be delivered to the door step of the buyer, especially if it is purchased online. As mentioned earlier, the repairs will be free within the warranty period, after which it is possible to have the gadget repaired at reduced rates from any Apple agent.
All these are services that create convenience to the customer. They also enhance consumer confidence and establish a good relationship between the customer and the company, thereby giving Apple and iPhone 6 a competitive advantage.
Kazmi, S. H. H. (2007). Marketing management: Text and cases. New Delhi, India: Excel Books.
Pulizzi, J. (2014). Epic content marketing: How to tell a different story, break through the clutter, and win more customers by marketing less. New York, NY: McGraw-Hill Education.
Consumer behavior has changed significantly in the past years. Given the technology revolution that has been experienced in the past decades, consumer behavior has changed drastically.
People have replaced their daily newspapers with customized online editions of these media and are increasingly getting information from online sources. People don’t have to carry around laptops or desktops to do their routine work but rather carry smartphones, which prove to be more efficient, stylish, and convenient. The iPhone is a perfect example of technology, making its mark on consumer behavior.
Consumer behavior is defined as the behavior that individuals exhibit in looking for; buying, using, evaluating, and disposing of products and services that they think satisfy their wants. Consumer behavior centers on how consumers make decisions to expend their available resources (time, money, effort) on consumption-related goods.
This includes what they purchase, why they purchase it, when they purchase it, where they purchase it, how frequently they purchase it, how they assess it after the purchase, the effects of such assessments on potential purchases and how they dispose of it off.
Just like in any other organization, consumer behavior in Apple is rooted in its marketing concept. Its marketing concept is oriented through several alternative approaches towards doing business, and they are referred to as the production concept, the product concept, and the selling concept (Solomon, 2004).
Apple’s production concept assumes that its customers are typically interested in product availability at low prices, and its inherent marketing goals are inexpensive and have well-organized production as well as intensive distribution.
Apple’s product concept assumes that its customers will purchase the iPhone since it offers them quality performance and feature-filled services. A product orientation leads Apple to always endeavor to advance the quality of the iPhone and to add new features that are in principle viable without first finding out whether or not customers want these features.
Apple’s former boss, Steve Jobs, argued that consumers don’t know what they want; just give them a product and they will realize its worth. This belief somehow worked for the iPhone since nobody could foretell of such a product.
The selling concept is a natural development from both the production concept and the product concept. Apple’s main objective is selling the iPhone, and it assumes that its customers are not likely to purchase an iPhone unless they are aggressively convinced to do so – generally through the ‘hard sell’ strategy.
Consumer behavior is grouped into four types, and these are: routine response, limited decision making, extensive decision-making, and lastly impulse buying. Routine purchases are less costly, and they are made without much decision making due to the inexpensiveness and simplicity of the product.
Limited decision-making requires a more decisive mind and more time for one to purchase a product. Impulse buying is made randomly without any prior planning. The extensive decision-making involves expensive and unfamiliar products, and this is the perfect consumer behavior in the case of the iPhone.
The iPhone has revolutionized the way mobile users think of mobile phones and smartphones. The iPhone puts together the mobile phone, iPod music player, camera, text messaging, e-mail and internet browsing services while offering inventive features such as multi-touch screen, visual voicemail, and accelerometers that sense screen orientation.
Since its first release into the market in June 2007, the iPhone is certainly the most popular mobile device in the global market. iPhone has avoided stimulus generalization. It has distinctive features from other similar phone models, and this is known as stimulus discrimination in consumer behavior.
The primary objective of the marketing strategies is to focus on consumer needs and also recognize the high degree of diversity amongst consumers. Everyone has acquired needs which are shaped by the environment and culture, thus creating a commonality of needs or interests which constitute a market segment.
Apple targets its consumers by specifically designing its iPhone models and promotional images that satisfy the needs of that segment. Apple positioned the image of the iPhone so that the target market segment perceived the iPhone as more satisfying to its specific needs than other competitive products. The three features of this strategic framework are market segmentation, targeting, and positioning.
Market segmentation involves dividing a market into subsets of consumers with similar needs or traits. Market targeting, on the other hand, is selecting one or more of the segments identified for the company to pursue. Positioning is developing a distinctive image for the product or service in the mind of the consumer. That image will distinguish the offering from competing ones and evenly communicate to consumers that the particular product or service will satisfy their needs better than other competing brands (Consumer Purchase Decision Process, nd.).
Roles of Learning and Memory Theories
Learning can be referred to as the knowledge or skills acquired through experience or by studying. It is a process in which behavior capabilities are changed as a result of experience. Consumers are exposed to new stimuli every day, and Apple uses the acquired feedback to modify behavior when seen in similar situations.
The concept of learning covers a great deal of ground ranging from a consumer’s simple association between a stimulus such as a product logo, for instance, iPhone, and a response, for instance, the perfect smartphone, to a complex series of cognitive activities. Understanding the learning theory benefits Apple since basic learning principles are at the heart of many purchase decisions.
Memory
Memory involves a process of acquiring information and storing the information over time so that the information will be used when needed. The three main stages of memory are encoding storage and retrieval. Many experiences that people have are encoded in the brain and stored, and they recall those experiences when incited by the right cues. This is a major implication of the cognitive approach to consumer learning theory.
Apple ensures that its iPhone models are impressively presented and rely on consumers to retain the information they learn about the iPhone trusting the information will be later applied in situations where consumer1 purchase decisions will be made.
Conclusively, the paper has looked into the consumer behavior principles and how they apply to Apple’s marketing strategies. Recognizing consumer needs is important in identifying the marketing strategies to adopt, and Apple has thus invested a lot of resources in marketing and marketing research. iPhone has gained much recognition in the phone industry due to its uniqueness and functions that are attractive to the consumers. iPhone has managed to capture the idea of a smartphone and has gone ahead to offer exceptional features that are enviable to its competitors. Apple has been able to utilize its knowledge of consumer behavior to its advantage.
References
Solomon, M. (2004). Consumer Behavior: Buying, Having and Being. New Jersey: Prentice Hall.
While bringing various commodities into the market, suppliers have to find a way to bring in a commodity of good quality in order to attract a good market but the most important knowledge to have is how to avoid losses at the same time satisfy the consumers of the product.
All this knowledge will have to be an application of the economics demand and supply theory. This means that the producer will have to satisfy the consumers’ demand for the product and at the same time producce the commodity at a price that he will be satisfied.
This period makes analysis of how it has been behaving in the market clear. An analysis of Iphones in the market for the past few years explains better how the theory of supply and demand works. This paper therefore, discusses the economics theory of demand and supply while applying the theory in how the production, demand and sale of Iphones have been in the last few years.
The Rise of Iphone
Since the launch, of the Iphone, it is evident that the demand of the product has been increasing, and there is fear that the latter may be overlapping the supply of the product. According to the laws of demand and supply, this behavior can be seen as a positive demand shift.
In definition, it is a point where the demand of a product increases. Cases of increase in demand may occur during holiday seasons, or when a product becomes more popular in a market. The law of demand states that when the value of either a good or service is low, then the demand is high.
However, when the price of a commodity is high, then the demand of that product decreases. On the other hand, when the price of a commodity is high, then the supply of that commodity is high, and when the price is low, the supply is also low. This falls under the supply law.
When there is a shift in demand, either negatively or positively, there will be a definite need for change in price and quantity of thee product to have a balanced equilibrium point. In other words, when if the consumers for a particular product increase, there should be an increase in supply of that product.
In the same case, according to the demand and supply law, when there is a demand shift, there should be an increase in the equilibrium price as well as the equilibrium quantity of that product. In the case of the production of the Apple Iphone, it seems that the supply of the product has been having trouble meeting the increased demand for the product. According to reports last year, it has been a fear that due to increased demand that outruns the supply; Apple may lose its consumers to alternative phones1 (Deffree 45).
Factors Affecting Supply And Demand of The Iphone
In economics, the increase or decrease of a commodity pricing can be caused by several factors. In the supply law, if the production of a commodity is low, then the pricing is low. Other causes of a commodity pricing decrease include the ability to produce the commodity with cheaper means.
In the case of the Apple firm, the pricing of the iphone has gone incredibly low. For instance, the Iphone 3G today coasts over $200 less than when it was launched. In addition, the phone is said to have better applications in terms of speed among others.
This slash of pricing has been caused by the improvement in technology in that there has the firm has found easier means to produce and even better quality product. Therefore, in the question of pricing of the Apple Iphone, the Firm might have followed the law of demand and supply.
With the popularity of the product, it has been evident that the demand for the product continues to increase, and therefore in a demand supply curve, there should be a demand shift on the right side of the graph. According to the demand supply law, with a shift in demand, the price as well as quantity of a product should increase.
If it fails to increase, the graph may suffer an in-equilibrium. This might be happening in the sale of the Iphone because there is a hiked demand for the product; yet, the supply has not met the former. In the case of the prices, Apple might be using a unique strategy in that the older version of Iphones continue to reduce in prices, but other better versions of the same phone are brought to the market, at a higher price.
For instance, the Iphone 3 has continued to be supplied only at a cheaper price. Better yet, Apple has recently launched its newest Iphone 4 at a higher price. Somehow, the firm seems to try balance the price equilibrium by introducing the newest make of the Iphone in a hiked price. However, the firm might still have a problem in governing the quantity equilibrium, and there might be an evident shortage in supply of the popular product.
Elasticity or Inelasticity of Demand of a Product
In the question of elasticity or inelasticity of demand of a product, Apple’s Iphone should be easy to analyze. In the first place, elasticity in demand of product relies on several factors which include, accessibility or availability of products that can substitute the basic commodity, income of the consumer which enables him to consume the good and time that a consumer may use to stop using a particular commodity.
In the case of Apple’s products, the Iphone is an elastic product on demand. This is because the product is in a competitive market whereby consumers may opt to use other smart phones with similar applications. So, if the price of the Iphone goes high beyond the consumer’s meet, then, it is very easy for them to look for substitute products. At the same time, if the supply of the product is low, then the sale of the product would not be successful because consumers may opt to look for alternative products.
According to the economics theory of pricing and revenue, it is only logical that if the prises of a product increase, then the revenue should increase. With the improvement in technology, Apple has been able to produce high quality product which have quite a show of demand.
Even though, the prices of the new products including the Iphone4 and the new Mac handbook are high, consumers seem to be quite interested in the product. The hiked prices of the new products should therefore, bring an impact in revenue during a particular period. According to the company’s reports, the revenue has risen from $99.9 billion to $108 billion as at the year20112 (Zielenzier 3).
Conclusion
In my opinion, Apple may have success in increasing prices of some of its products ,which is an, eventual gain in the company. In the law of demand and supply, the company seeks to reach different markets with different products and at varied prices, which in my opinion, seem to stabilize the supply and demand equilibrium.
Works Cited
Deffree, Suzanne. IPhone 4 supply and demand issues could hurt Apple brand. New York: Cengage Learning, 2011. Print.
Zielenziger, David. “Apple’s Report: Annual Revenue Tops $108 Billion.” International Business Times. Ibtimes. 2011. Web.
Footnotes
1 Deffree, Suzanne. iPhone 4 supply and demand issues could hurt Apple brand. New York: Cengage Learning, 2011.
2 Zielenziger, David. Apple’s Report: Annual Revenue Tops $108 Billion. 2011. Washington : International business times.
Apple Inc. is one of the biggest and most valuable global corporations. Most of its recognition, brand value, and profit comes from the sale of its iPhone smartphone devices. The production of the iPhone product is a complex multi-stage process which impacts local communities and creates global phenomena that have long-lasting consequences for society and the environment.
Components
The iPhone is a highly complex device that consists of numerous components which originate from all over the world. Apple is considered to have developed a system considered the epitome of a globalized supply chain economy. Many of its connection and power components, such as the LTE modem, wi-fi module, and battery are made in China. Storage, cameras, and displays are made in Japan. Meanwhile, the processor and RAM are developed and produced in South Korea. The parts are made of metal, conductors, and rare earth minerals which are mined in specialized locations in China and California. The extensive nature of this supply chain requires precise coordination with external firms and governments to ensure a stable delivery of components to the manufacturing location.
Workers
The iPhone is produced through a combination of machine and human labor in factories that are specifically outfitted for production line assembly. One of the most well-known corporations known for iPhone manufacturing is Foxconn, based in China. The company employs thousands of local Chinese workers in its Shanghai and Shenzhen factories. These workers commonly live in company-provided dormitories, in poor conditions and overwhelmingly strict discipline. This includes a rigid schedule with public humiliation or grounds for dismissal for the smallest offenses. Workers are often not permitted basic human comforts or rights, such as to use the restroom.
The environment is extremely high pressure, leading to a noticeable rate of suicides.1 Despite being a large Chinese national company, Foxconn violates numerous labor laws, including hiring underage employees and forcing upward of 70 hours per week, while falsifying documentation.2 Overall, the employees in Foxconn factories are lower class, wage employees which the company views as largely expendable.
Impact on Community
More than half of the tens of millions of iPhones that Apple sells each year are produced at a Foxconn factory complex in Zhengzhou, China. It employs approximately 350,000 people and has become a microcosm of its own, being labeled as iPhone City by local residents.3 It has had a significant impact on the local community and livelihoods of residents. In 2010, the area was underdeveloped farmland, until the government bought it for the factory. Since then, the area has developed a large infrastructure, both commercial and residential. The economic impact is far-reaching as the complex not only attracts local residents but also myriads of Chinese populations following the trend of urbanization as they move to the city to work for Foxconn.
Generally, the factory has led to an increase in wages and lifestyle quality in the area. Salaries range from $300-$700 which is a significant increase over $150 for factory salaries a decade ago.4 However, these residents still live as a lower class and sometimes in poverty and are usually unable to afford such luxurious products as an iPhone. The livelihood of practically every resident and business for tens of miles around the factory is dependent on the choices of Foxconn and popularity of iPhones which require such investments for their production.
The iPhone device has had a significant impact on communities in the decade since its release. It has stimulated a societal by being gradually developed into the ultimate digital device which is used simultaneously for communication, entertainment, mobile computing, and much more.5 The iPhone is used in all aspects of life and society, ranging from private use to professional and business purposes.
Problems with Factory
The biggest issues with Apple’s iPhone production factories are its labor rights abuses. In 2012, almost 150 workers climbed the room of the factory building and threatened to commit mass suicide as a protest against horrifying working conditions. A similar attempt occurred in 2010 with 18 people jumping and resulting in 14 deaths. The negotiations lasted for almost three days until a compromise was reached.6
A recent protest in 2017 saw hundreds of workers blockade the entrance to the factory as a protest against unpaid wages. Despite attempts by managers to hide the situation, it became a public relations crisis for Apple, forcing it to intervene.7 This suggests that production factories for the iPhone have negative impacts on the local worker population, resulting in large protests to correct injustices by using Apple’s global brand as a platform.
Costs of Production
The iPhone product is considered to be a high tier, a luxurious smartphone with prices ranging from $700 to upward of $1200 depending on the model and characteristics. Foxconn carries a significant amount of influence as a corporation, even in the United States. A Foxconn plant built in Wisconsin has led to a significant shift in utility distribution. The counties bordering the plant requested a diversion of water from Lake Michigan to fulfill the needs of the plant. Furthermore, the EPA relaxed its limits on both air and water pollution coming from the factory in exchange for the supposed economic value of the factory.8
A power utility bought land to build a substation for the plant and supporting infrastructure. However, the project is estimated to cost $117 million, and the utility company will distribute the cost amongst the 5 million residents it serves over the next several years by incrementally raising prices.9 Under the pretense of economic growth that Foxconn brings to a region and its status as the primary manufacturer of iPhones, it uses its influence to accrue significant social costs, regarding utilities, environmental impact, and other services. Foxconn rarely bares the expense burden of utility projects, pollution impacts, and maintenance of roads outside its immediate vicinity.
Environmental Impact
It is common knowledge that production as well as disposal of smartphones has a significant environmental impact. Apple is relatively transparent with its products, releasing an environmental report for each model it produces. The new iPhones are estimated to create between 57 and 79 kg of CO2 each in its lifetime. The majority 80% coming from production, 2% for transportation, 1% recycling, and approximately 17% from customer usage.10
In the last decade, Apple’s issues with environmental impact have been extensive. These ranged from one of the largest dependences on coal (54.5%) to power its data centers and manufacturing to the use of toxic, non-degradable materials in its components. In 2013, various environmental organizations accused Apple’s manufacturing partners of extensively polluting local water supplies and tropical forests. In recent years, Apple has focused on optimizing its devices and production process to remain as environmentally friendly as possible. Reduced use of arsenic and PVC, along with a higher reliance on renewable energy.11 It suggests that company leadership is considering the extensive consequences of the manufacturing process.
Conclusion
Apple’s iPhone device is evidently one of the most important global brands and products. It undergoes a complex process of development and production with various components and extensive social costs. Furthermore, the manufacturing facilities play a vital role in the economy and society of whole countries. Therefore, every time one purchases an iPhone, it is essential to consider the path it has traversed.
Bibliography
Associated Press. “Utility Buys Wisconsin Land for Substation to Power Foxconn.” StarTribune, 2018. Web.
1. Brian Merchant, “Life and Death in Apple’s Forbidden City,” The Guardian, 2017. Web.
2. Anya Kamenetz, “A Day in The Life of an iPhone Factory Worker,” FastCompany, 2014. Web.
3. Harrison Jacobs and Annie Zheng, “Tens of Thousands of Chinese People Live at the Mercy of Apple’s Factories — And They Don’t Even Work There,” Business Insider, 2018. Web.
4. Ibid.
5. Anthony Karcz, “10 Years with the iPhone: How Apple Changed Modern Society,” Forbes, 2017. Web.
6. Malcom Moore, “’Mass Suicide’ Protest at Apple Manufacturer Foxconn factory,” The Telegraph, 2012. Web.
7. Erika Kinetz, “Workers at iPhone Supplier in China Protest Unpaid Bonuses,” Business Insider, 2017. Web.
8. Sun-Times Editorial Board, “Editorial: A Big Factory Gets to Pollute, and You Get to Wheeze,” Chicago Sun-Times, 2018. Web.
9. Associated Press, “Utility Buys Wisconsin Land for Substation to Power Foxconn,” StarTribune, 2018. Web.
10. Gordon Gottsegen, “The iPhone X Won’t (Totally) Destroy the Environment. Here’s Why,” CNet, 2017. Web.
11. David Price, “Why Apple Was Bad for the Environment (And Why That’s Changing),” Macworld, 2017. Web.