Sunday, September 22, 2013

WILL APPLE FALL OF ITS CHEAP PHONES?



For the first time ever, Apple reveals its two latest iphones- iPhone 5s and iPhone 5c, which is an upgrade of its IPhone5, where iPhone5C is available at a cheap price.

The  CEO of Apple, Tim Cook said the iPhone 5s and iPhone 5c are a reaction to a changing smartphone market, also added ”Business has become so large, that this year we are replacing iPhone 5 with two new designs, such that it allows us to serve even more customers”.

So, what’s this strategy Apple is focusing on- Why does Apple need budget iphones?  As Apple lost to its earlier model, it was left behind. To regain its position back, Apple was at pains to release budget iPhones in a bid to its rivals. As, Consumers utmost choices go with Android phones, Apple plans to use these iphones (with a 64-bit processor) as its trump card to reach the crowd.





However it is,” will this strategy work- will it have an effect on brand value?” Probably, it will affect its existing brand value because of the release of budget iPhones. Apple’s brand was at high end because clients go for iphones only of its brand value and uniqueness yet to other company’s product. But, now the company’s existing brand will gradually decline and diminish its brand value over the days.






Will Apple experience to lose its position at the high end after the launch of iPhones - we actually rise with limitless questions in our mind, let’s discuss this more further. Why a brand at high end position , have the necessity to release cheap phones- Well, to survive in this market among its slick competitors, Apple has come out openly to sell its iphones at a lower cost, the first time ever in the history. So, does this become a boon or bane- its brand may sell inexpensive phones, but not at many. Consumers prefer iPhones because of its brand rather than its product.

Apple was the one to pioneer “touch screen smart phones” and so positioned itself as the world’s most valuable company in the market. Thereafter, Apple was seen as the top-notch in smart phones and recognized only for its brand. But, now Apple made a mistake by introducing its cheap phone into the market, which may lead to lots of consequences and undermine its position.
When a brand lose its position, how it will create a massive impact on the emerging markets. Here are few thoughts:
             The shares may slump.
             The sales growth may deteriorate.
             The company profit margins may knock-down.
             This will damage the brand in the long-term.
             The thirst among consumers for iPhones will fall down and much more.
Every company needs a focus for the same reasons that every brand needs a focus. Apple could have used a better strategy to introduce its cheap phone rather than extending in its own brand name.

Credits- Mashable, firstpost