Market Analysis of the Apple Ipod
Market Analysis of the Apple iPod
The market studied here is that of the iPod: ‘a brand of portable digital media player de-signed and marketed by Apple Computer.’ Apple have cleverly created a mp3 player that has outsold all competition by using the advantage of brand loyalty. The iPod family has evolved since the original launch in October 2001 when the 5GB iPod was released, fol-lowed in 2002 with the launch of the 10GB and 20GB versions. By 2004 Apple had re-leased the iPod mini, iPod shuffle and a special edition U2 iPod which was endorsed by ce-lebrity rock band U2. 2005 proved another successful year for the iPod family, seeing the release of the iPod nano, Harry Potter special collector’s edition and the new colour, photo holding and video playing iPod.
iPod sales have continuously increased since its launch, now totaling at over 28,233,000 sales. However, as the graph shows there is a considerable growth between the last quarter of 2004, and the first quarter of 2005, which can be explained as a seasonal trend as the winter months around Christmas significantly amplify sales.
Celebrity endorsements combined with successful advertising campaigns has helped iPod to become the most desirable digital market player in the market. The luxury good has re-sponded to consumer tastes, for example, by using modern up-to-date popular songs in their adverts, acting as an incentive for consumers to be loyal to the Apple brand as it has a ‘superiority’ over competitors. Sales relate to consumer incomes and expenditures, which have increased considerably over the past few years, causing massive economic growth in the digital music player market as disposable income is being spent on luxury goods, and Apple’s ‘superior’ branding attracts the most attention from the public.
Fiscal Year iPods sold
2002 381,000
2003 939,000
2004 4,416,000
2005 22,497,000
The iPod market is global, the product is shipped worldwide. It is an example of a product that
The market studied here is that of the iPod: ‘a brand of portable digital media player de-signed and marketed by Apple Computer.’ Apple have cleverly created a mp3 player that has outsold all competition by using the advantage of brand loyalty. The iPod family has evolved since the original launch in October 2001 when the 5GB iPod was released, fol-lowed in 2002 with the launch of the 10GB and 20GB versions. By 2004 Apple had re-leased the iPod mini, iPod shuffle and a special edition U2 iPod which was endorsed by ce-lebrity rock band U2. 2005 proved another successful year for the iPod family, seeing the release of the iPod nano, Harry Potter special collector’s edition and the new colour, photo holding and video playing iPod.
iPod sales have continuously increased since its launch, now totaling at over 28,233,000 sales. However, as the graph shows there is a considerable growth between the last quarter of 2004, and the first quarter of 2005, which can be explained as a seasonal trend as the winter months around Christmas significantly amplify sales.
Celebrity endorsements combined with successful advertising campaigns has helped iPod to become the most desirable digital market player in the market. The luxury good has re-sponded to consumer tastes, for example, by using modern up-to-date popular songs in their adverts, acting as an incentive for consumers to be loyal to the Apple brand as it has a ‘superiority’ over competitors. Sales relate to consumer incomes and expenditures, which have increased considerably over the past few years, causing massive economic growth in the digital music player market as disposable income is being spent on luxury goods, and Apple’s ‘superior’ branding attracts the most attention from the public.
Fiscal Year iPods sold
2002 381,000
2003 939,000
2004 4,416,000
2005 22,497,000
The iPod market is global, the product is shipped worldwide. It is an example of a product that
References: Economics, Tennth Edition, Lipsey and Chrystal www.bbc.co.uk www.apple.com www.macworld.co.uk www.macrumors.com www.wikipedia.com www.mp3newswire.net