Last month, we discussed that Apple — the world’s most valuable company — is once again rolling (after a grief hiccup). Soon, the company will begin selling the 10-year anniversary models of the iPhone. Today is announcement day for the new iPhone! [Please be sure to read both parts of this post and look at the infographic below regarding what we can learn from Apple.]
According to various observers, at least one version of the new iPhone will sell for more than $1,000. Are you iPhone loyalists really ready for this?
Here’s what Tripp Mickle and Timothy W. Martin are reporting for the Wall Street Journal:
“Prepare for smartphone sticker shock. A decade into the smartphone era, Apple Inc. and Samsung Electronics Co. are betting they can increase sales by jacking up the price of their flagship products — bucking the usual downward arc for prices of consumer electronics in the years after introduction.”
“Apple on Tuesday [today] is expected to unveil a more-advanced iPhone — also known as the anniversary iPhone, the iPhone 8, or iPhone X — which analysts predict will carry a starting retail price of about $1,000. That would be about 50% more than the cheapest version of the iPhone 7 Apple introduced last year at $649, and about 30% more than the larger iPhone 7 Plus, at $769. (On Tuesday, Apple also is expected to show off updated versions of those phones with prices similar to last year’s models.)”
While we wait for the latest iPhones to be available for sale, let’s consider what else we can learn from Apple. The Website Group has these observations; and it designed the infographic shown below.
“[Apple uses] unpaid marketing at its very best! You might not think it, but this marketing strategy is used for some of the biggest companies around the world. In particular – we’re talking Apple. Another popular strategy from Apple is its ability to create mystery around a product launch. Nobody likes a spoiler but everyone loves a surprise; so keep your goodies to yourself until the day comes to pull the rabbit out of the hat — just as Apple taught us. It leaves you hanging until the very last minute so that when they finally unveil a product you can’t wait any longer to get your hands on it!”
“These are just a couple of marketing lessons that we can learn from Apple, but there are plenty more! Read on for a list of 10 marketing techniques that Apple has used to build one of the most well-known brands in the world!”
Apple is an amazing company to analyze from a marketing perspective. They are so unique due to the fact that they do not have to bend to the prices set by other phone companies. They have the ability to charge whatever they want for their products and people will buy it because they are selling an experience. They have a marketing strategy they may not work for many other companies, but it is so effective for them.
It’s finally time that Apple really starts diversifying their iPhone lineup. For the past ten years, there have only been one or two models with small differences. There is a large number of people that would be willing to pay upwards of $1,000 for a cell phone. Unlike the market for cars or clothing, there is no real premium level for cell phones. It will be interesting to see if over the next few years more expensive lines of cell phones are explored by companies.
Apple’s marketing strategy is brilliant, however, it is easy to be as successful as Apple is when you provide the quality products they do. The products pretty much speak for themselves, as they are the highest and best quality on the market. For that reason, it is easy to create hype and demand for the products with the type of marketing that they do such as product placement, and simple commercials. Marking the new phone at $1,000 sounds crazy, however, it has people talking about it and tuning in to see the releases, etc.
As a frequent consumer of Apple products, I can say that they have an amazingly successful marketing strategy. They dominate the technology field and, due to the wide success of their past products, they have developed a loyal fan base of customers who are willing to spend the money to have the newest products. And by keeping their prices high, their products become only available to the upper class, or those willing to spend that amount of money on a phone. And because of this, their products become highly coveted and viewed as high quality and high class. That being said, I don’t think that the $1000 price point is that unreasonable. For the average consumer, yes, that sounds outrageous, however, the iPhone X is supposed to be the best of its field. Not only is it the best and most advanced iPhone, but it arguably has more advanced features than those of any other SmartPhone brand. They’re also releasing the lower priced iPhone 8 for customers who don’t feel the need to pay so much for the new technology. Although the iPhone 8 is still very expensive, it is still similar to the price of the iPhone 7, which was still very successful. I think that the new releases will also be successful because Apple has built a base of loyal, repetitive customers, they will surely have many people dying to get their hands on the new iPhone. Because Apple has created a sense of prestige through its marketing strategies, many people covet their products solely for the brand name and bragging rights of having the newest iPhone to show off, allowing their products to have a large demand throughout the upper and middle class worldwide. Therefore, I believe that the iPhone X remain successful despite the high price point.
Apple’s methods for releasing new ranges of product over the last ten years has been fairly simple in the execution. But the main thing that sets them apart is the enthusiasm of the dedicated Apple users. Apple fans have a unique and almost cult-like obsession with the brand. Even if there is something as drastic as taking away the earphone jack, they will still buy the newest model iPhone. I think the only thing that Apple has to worry about it outdoing themselves.
Apple seems to provide services that no other phone brands can, and they display that in their pricing. Just as it had been discussed and portrayed in the infographic, Iphone prices are continually more expensive than Samsung phones, but continue to sell more. I believe that this is due to their “focus on unique value proposition rather than price” tactic. With every phone, apple progressively displays a new feature that draws customers in. Since apple is extremely innovative with it’s features, such as fingerprint touch, 3D touch, etc., when consumers purchase the new products, it makes it seem as though what they are buying is special and there is nothing like it. Just as the post mentioned as well, Apple uses the surprise tactic and leaves consumers wondering what the component of the new and next Iphone will consist of.
Ten years ago, smartphones are not so smart. However, APPLE changed it and led the whole market to improve. That’s why there are a lot of APPLE fans. On the other hand, APPLE is good at marketing. The company will begin to sell ten-year anniversary IPHONE and 30% more than IPHONE 7. The new IPHONE has different surface and attract people.
As a Apple user, my laptop and phone are apples and i am planning to buy the upcoming Iphone X which sounds crazy but I really mean it. This new Iphone is fantastic and changes much more than iphone 6 to 7 or 7 to 8.
Apple has managed to attract a wide variety of customers from all walks of life, all through some very common sensical marketing rules that the company has set for themselves. Among the most significant rules, is its ability to keep its new creations/products from the wider public, not only in an effort to generate excitement and awe, but to reduce the threats of potential competition from rivals such as Samsung. As Apple’s iPhone 8 will most likely be seen as a product with worth, there can be no doubt that customers will buy the new iPhone with simply that perspective, regardless of a high price.
What Apple has been able to do from a marketing standpoint is something that is incredible and simply unique to Apple and Apple only. No matter what, people will buy the new iPhone or buy a new laptop regardless of the fact that their current device is in great condition. From their minimalist designs and quality products regardless of high prices, the progression of Apple’s creativity through the decades is unmatched.