Analysis Of Apple's Marketing Strategy

The estimated set retail price of the iGo is $1,000. The price for the IPhone 6 is $900. Apple follows the same pricing by making the smaller phone a hundred dollars cheaper. Both phones will only be available in the 64 GB and no lower. Normally, the phones are offered from 16, 32, and 64 GB. For this phone, it will only be 64 GB, which makes it more exclusive and with high storage should sell faster. The strategy that will be used for this product is the profit-oriented strategy. The strategy reflects Apple’s strategy best. They rely on profits and not market share like sales-oriented objective. Profit-oriented objective relies on profit maximization. The object requires high prices, which isn’t uncommon for Apple’s products. The product is not to be priced higher than its’ perceived value. The reason we chose $1,000 is because the product is a completely innovated product that has never before been sold at Apple. Apple’s only product that is slightly waterproof is the Apple watch. Although, since the iGo
It is reported that the phones cost around $200 to make. This gives Apple a 69% profit margin. This a good example of how Apple uses the profit-oriented objective. We will be using the same objective by our price for both sized iGo phones. We estimate costs to be $300 for the iGo Plus and $250 for the standard sized iGo. That gives Apple a 70% profit margin. The price is higher, but when you consider our target market and how in demand Apple products are, then the price is not much of a leap. We expect a difference in sales by at least 10%. Last years sales of phones only resulted in a difference of 7%, which was 11.7 billion. Apple’s expected rise in percentage of sales is only 3%, but could result in higher than originally defined. Apple’s sales mainly come from the selling of their phones. The other products that Apple sells do not compare to the profit made from the