The tablet industry is declining as smartphones get bigger (iPhone 6s plus screen 5.5inch; iPad screen 7inch). Also laptops have become smaller and easy to carry around i.e. mac book air 10 -15 inch (Costello and Costello, 2016). Need for iPad/tablet are becoming lesser and lesser. Nevertheless, Apple earns a lot from iPads, therefore continual investment is required to ensure the product retains its position.
This results in the customers having to pay the full price at the time of purchase. The customers may not be able to afford the full price of the iPhone. The average price of an Apple iPhone in India is $612 which is much higher than Samsung, $173 and Micromax, $86. Hence, customers tend to prefer cheaper premium phones such as those provided by Samsung. Figure 4: Channels of
Ecosystem refers to how hardware possession advances other software, accessory, and substance buys. Apple remains to a great extent a hardware manufacturer, however. Also, it doesn't offer the greatest number of extra gadgets to existing clients as it most likely could. But over the years, Apple continues to give more benefits to its users who choose to buy Apple accessories for example of MacBook and iPad, the software and services side of the business has turned out to be progressively imperative. Apple made $3.75 billion in revenue from software and services, including offers of Apple applications, iTunes music, membership benefit revenues and the
The android version has large number of users from Samsung, HTC and Sony, make it difficult for them to keep all users up to date with the latest versions for instance lollipop, which only a small percentage use.The protected ecosystem gave a competitive edge to apple therefore making Samsung want to create their own Tizen (a closed ecosystem). It could only be installed in limited smartphones appliances that most users did not own (Ren, Xie & Krabbendam,
Lean approach gained much attention after it proved to be extremely useful for Toyota as it intended to have the enterprise think first and foremost about maximizing the value that its products and services can bring to the client. This change proved to be very advantageous for Apple has it helped in decreasing waste and inefficiencies not only in physical materials but also in time and cost. Apple is considered to be understaffed by most of the critiques but the reason behind that is that the company wants to maximize productivity even with limited resources. This can be related to setting unrealistic deadlines for each task by the upper management. As much as this is debated upon, the basic goal behind this is to increase employee productivity and to maximize their contribution and efforts given a limited time frame.
Apple has a strong brand image, innovation and customer service making it different for new entrants to compete against. Threats of substitutes: it not necessary the same products offered by other companies, but rather different products that satisfy the same need as the product being offered. If a supplier increase their prices, a company with differentiated product can pass that cost to its customers. Since Apple competes as a quasi-monopoly in its market segment, Buyer power: in general, the more customers a company has the less barging power each customers will have, and it switching costs are high, then buying power substantially decrease. Since the company competes as a quasi- monopoly in its market segment, there is a reduction of the buyer's
The fact that no one has seen anything like Amazon before makes people worried; this produces people into believing that the five- hundred and sixty billion dollar company has control of the economy, thus forming a monopoly. However, as long as the prices do not go up, consumers do not suffer, and competition challenges Amazon, then the company does not have a monopoly. The first reason that proves Amazon does not have a monopoly: the prices. Amazon does control the majority of e-commerce. However, Amazon prices stay low, enhancing the business of Amazon, which explains the dominance in online shopping.
Their product differentiation helps them in maintaining premium pricing. once combined with low cost sourcing and products assembly strategy, Apple is ready to improve the business profit margins. Apple 's Lines of Business The company sells numerous products like iPhone, iPad, Mac, iPod, iTunes, Software, and Services, and
Apple and Samsung are the most popular smartphone producing companies and a lot of consumers are loyal to these brands. While Nokia products are cheaper, more durable and have better camera features, people still willing to purchase something more popular and more expensive. Of course, it might be problematic for Nokia products to get as popular as IPhone and Samsung, but it doesn’t mean it is impossible. Their phones have their unique selling properties, but they are poorly advertised and as a result consumers do not pay that much attention on new releases of
For example, a buyer purchases an X brand smartphone because they listen, acknowledge and believe that the phone has better features compared to other smartphones’ brand. However, after the purchase, the smartphone features does not work like their perceived believes. The performance of the smartphone disappoints them. Therefore, the buyer’s dissonance reduces due to disappointment and dissatisfaction of the product’s performance. Grewal and Levy mention that the products that usually purchase are expensive, infrequent buying demand, do not function as prior expectation and high risk level.