Apple Pricing Case

APPLE’S PRICING STRATEGY: EMBRACING CLASS AND MASS?
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APPLE’S PRICING STRATEGY: EMBRACING CLASS AND MASS?
Problem definition
In the case study, one problem that faces the Apple Company is stiff competition from other different companies that are producing smartphones to the existing and upcoming market. Some of the competitors are Samsung, techno, Nokia, BlackBerry, and Microsoft. The rise of smartphone industries made Apple come up with two products which were almost similar, but of different qualities, that’s iphone5c and 5s. The pricing of 5c was very low as expected in the market. Moreover, it was priced like that to venture the market and compete with other industries due to the low pricing strategy they put on their product. Apple competition is also high as it faces very stiff competition from Sony and Samsung mostly because of their mass production of new generation phones, for example, Samsung produces the advance Samsung S8+ phones which is a great competition to the iPhone 10. Another fact of high competition is the act of iPhone pricing their products cheaply in the market to increase their sales (McGrath, 2013).
Alternative solutions
The company’s experience of high product competition in 2013 was a very concerning matter due to loss of markets in the potential countries. It, therefore, resolved to develop cheap products which brought a lot of controversy in the existing market. However, some solutions can be considered for the high competition challenges it faces.

The solutions include:
Production of high-quality products which is one main factor of production. I agree with the solution.
Price moderation for the products – I agree with it.
Production of new generation products- I agree with it.
It should also give priorities to high profits- I agree
It should employ advertisement and sales strategies- I agree
Pros and cons of the solutions
Increase in production of high-quality products is one of the solutions Apple should consider making to more competitive in the market. It should not support the production of cheap products to venture into the market since other companies might be producing cheaper products. It should, therefore, stick to its quality and be persistence in the production of high-class products. In the United States, for example, the most commonly used phone is iPhone, thus providing a ground base for the iPhone sales in the states. Some of the pros of this solution include;
It increases the demand for the products in the market which want to have a new taste of the newly generated products in the market.
It also ensures an increase in sales of the products hence high profitability. For example, new products attract a huge market which thus increasing the demand and the sales of the products hence profitability to the Apple company.
Production of high-quality products also increases the number of buyers who will appreciate the qualities of the products.
Some of the cons of this solution include:
The quality of the products might be duplicated for example in the production of iPhone 5c and 5s which had almost similar features but were of different qualities.
Another solution could be considered moderate prices for the products for example customization of prices in another externally existing market all over the world. iPhone products are always expensive due to the high quality they possess. However, very few people believe that the more expensive the product, the more quality it has. Every time Apple introduces its products in the market, it should consider pricing it moderately so that it can be marketed in both the developing and developed countries. The potentiality of the market can, therefore, depend highly on the product prices. The pros of the solution include:
Attraction of many customers from different social backgrounds
The sales would increase due to the low prices which is affordable in the market.
Some of the cons include:
Realization of losses due to low price estimation of the products.
The prices might also imply that the quality of the products is low because of the drop in prices.
Production of new generation phones and series could also be another strategy which can be used to capture the competitive market of smartphones. Most of the iPhone users and non-users always want to use the newly produced products on the market. Some sales therefore still increase whenever Apple manufactures a new generation of iPhone. The generations are always of very high quality and always captivate a large portion of the international and local market. Some of the pros include:
The new generation phones would attract many clients who would wish to upgrade or buy the latest versions of the products form Apple.
The products are also of high quality than the previous ones which are of lower generations.
It could also be easy to advertise the new products in the international and local market which could be eagerly waiting for the next generation product to be launched by Apple.
The launch of new products also increase the sales in the company and increase its profitability. For example, the launch of iPhone 10 made Apple make more profits from the sales which had a great demand.
The cons include:
The new product might not be accepted in the market hence they might not be of importance to the organization
They could also be more expensive for the market segmentation to afford. Therefore there would be very few sales of the same products. For example, people could dig deep into their pockets to afford iPhone 10.
Apple can also solve the problem of high competition by giving priority to profits over the market share. The main aim of the company is profit making which should look into a lot. Apple products are produced according to the demand in the available markets. It can also be introduced into other markets where it can gain more users thus maximizing their products. Some of the pros of this solution include:
Increase in company profitability when all the interests are based on its profit-making capability.
Targeting high profits also make the company strategize on the sales thus the sales of its products would be increased.
High-profit targeting also impacts on the quality production of the products.
Some of the cons of the solution include:
It can lead to the production of many products which will flood the market thus could depreciate in prices.
It can also affect the pricing of the products with the aim of making more profits which will be a short-term impact.
It should also employ advertisement strategies on its products to come up with a broader range of the market. The advertisement could help in increasing the sales of the products in the world market thus making the company more profitable. Since the profitability of the company is a significant concern, the increase in sales would ensure an increment of profit over a particular period. Advertisement can be done on media platforms. Some of the pros of this solution include:
It will impact on the sales of the products in the market thus making it more competitive. Advertisement assists in product promotion to the world market which are made aware of the products.
Product advertisement also enhances the profitability of the company which stands out as one of its major goals.
Some of the cons include:
The advertisement of the product might mislead the market by advertising products that do not fit the specifications of the actual product.
Advertisements can also be exaggerated thus distorting the information that is being communicated to the public.
In consideration of the impact of the solutions above, my best opinion according to the best solution is the production of new generation products which attracts the market. Introduction of new product in the market is always a significant way of attracting a new customer who would like to have an experience with the products. Production of new high-end products also makes the company more competitive by increasing its profitability and sales of the new products.
The results of the competitiveness of the company could be evaluated by monitoring the progress of the company regarding profitability sales and its market share. It can be assessed after three months which could be enough for the company to make significant changes in the market. In summary, therefore, Apple Company should consider applying many other strategic solutions in correspondent to its competition in the world market. It can emerge and remain the most competitive phone producing company in the world as it is at the top now.
References
McGrath, R.G., 2013. The end of competitive advantage: How to keep your strategy moving as fast as your business. Harvard Business Review Press.