The Case Study on Apple iPhone

The Case Study on Apple iPhone

Introduction

This paper is based on the case study is based on the Apple's iPhone case study. The case is regarding the price and its demand. Case reflects the change in the demand of iPhone with respect to the price change. Moreover, the change in the prices of iPhone is due to the decision taken by the CEO in order to capture holiday shoppers market, which is not willing to pay high prices regardless of its unique features. This change in the prices of iPhone cause unpredictable change in the demand as many customers dislike the act of reducing the price within 68 days of its launch. The major reason that was discussed in the case, for disliking the act was that they bought iPhone on premium price just few month back, which is quite injustice. Dissatisfaction with the price change remains on the top of the headline among the customers on which Jobs returned the differences in the product to all premium customers. Jobs just want sell his quality product on less prices.

Question 1

The iPhone launched by Apple was one of the innovative technologies that captured the mobile market. Apple initially launched iPhone for the premium price if $499 and $599 for 4GB and 8GB respectively. People were so much eager to buy this product that they stand in line for hours. Despite of such anxious behavior, CEO took the decision to have steep price decrease in the prices of iPhone, which put drastic effect on the sale of this product. Many premium buyers disappointed with the sudden steep price change; and on which Steve Jobs pointed out it to be “life in the technology lane”. Technology market is very fast and changes rapidly. According to the CEO, Steve Jobs, as technology is changing every now and then, the competition is very much high. Every company is striving to launch new and better product in order to capture the market share. It is near to impossible to launch a product in market and sell it on premium prices for long. Technological market requires steep and sudden price change. Jobs initiated to reduce prices of iPhone in a hope to sell better technology at lesser prices, just to capture the market. It is just the requirement; otherwise its competitor would have come up with better product at lower prices.

Selling a product ...