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

Wednesday, September 11, 2013

The Internt.org Project – What does this mean for Brands?


"The richest 500 million have way more money than the next six billion combined. You solve that by getting everyone online, and into the knowledge economy -- by building out the global internet" - Mark Zuckerberg


Mark Zuckerberg's internet.org 

The CEO and Founder of Facebook wants the remaining two-thirds of the world’s population to get access to the web. The the ‘Internet.org’ project is going to be the most significant innovation in the history of internet. To get more of the unconnected six billion onto the internet is the big bold idea of this decade.




Mark Zuckerberg also says "If we wanted to focus on just making money, the right strategy for us would be to focus solely on the developed countries and the people already on Facebook, increasing their engagement rather than having these other folks join"


Let’s sit back and think what does this mean? A world where everyone is connected – better knowledge sharing, speedy economic growth, improved living standard, more employment and much more. Imagine a huge chunk of 6 billion people on Facebook, Twitter and online platforms. Your brand will have access to them. The future is exciting thinking about how we tap the new users. We could only think of an ever growing and booming digital marketing industry. Everyone is going to benefit here. Here are some of the thoughts that we think this project will have a significant impact:
-        Mobile/Social apps industry will boom
-        Brands will generate more content than ever before
-        Experiential marketing will grow with more access to technology and web
-        Online ad spend will increase
This bold initiative by Mark Zuckerberg is something worth sharing, spreading and companies should come together to make this project a successful one.