Pricing and Non-Pricing Strategies Pricing and Non-pricing Strategies Apple hosted an event to formally introduce to the market the new iPhone 6 on 12th September, 2014. After Apple started taking pre-orders on 14th September, 2014, over two million reserved were received in a span of 24 hours. Thus, so as to make more sales, iPhone 6 is preparing to initiate a price-cutting (David, 2014). This paper will come up with as pricing and a non pricing strategy used by apple to market its phone. Apple transformed things by shifting to a “good-better-best” pricing strategy on its iPhone 6.
As it always does, the firmed exhibited the new and improved iPhone 6 that offers faster processing, a better camera, fingerprint security technology and retina eye recognition. Prices for this model in the U. S. starts at $1000 for clients who sign up for a 24 month agreement, and $700 for those who opt not to be tied to a 24 month financial commitment (David, 2014). Apple also released a lower priced iPhone, which fundamentally is old technology — similar to its previous installation, the iPhone 5 — in a plastic case, which is available with a number of new colors (David, 2014).
This model prices in the U. S. begin at $500 on contract to $549 off-contract. Apple has two ways of pricing its goods. Firstly, the important approach of cutting price is decreasing the price directly on the iPhone 6. Lower prices gives ability for Apple to rival with other smart phone producers like Nokia and Samsung, and it will as well offset the negative implication of the high price of the mobile phone (Alison & Dean, 2014).
Secondly, iPhone offers free after-sale services, which is important for them to maintain their previous clients. In particular, they offer free applications online (Juliette, 2014). Clients previous had to buy dozens of apps for their general using. Therefore, Apple can afford a number of free and helpful applications to the iPhone 6 users. It does not, by any chance, need a high cost, but it is an effective method of maintaining the regulars of the phone (Alison & Dean, 2014). Nevertheless, in line with the legal and political factors, getting the selling and using permissions in some foreign nations such as China and India has been eased which now ensures that their sales increase.
This will make the method of pricing become more and more power in foreign nations (Juliette, 2014). The iPhone 6 gives its clients more choice to generate growth. This methods permits clients to select the price, which works for them best. Apple considers that, for instance, newly married couples who are on a budget arrive before 6:00 PM to a restaurant, to select the best and slightly cheaper meals, iPhone 6 clients with also work on the same concept (Alison & Dean, 2014).
Through catering price sensitive clients, Apple will, on the other hand, develop its business by taking advantage of the new early-bird clients. Also, the new iPhone 6 gives clients value in their money. It creates differentiation by making clients feel as if they feel something new. The phone has features that have never been seen in any other phone and also some improved features that are other handsets. In the new iPhone 6 press conference, the most appealing thing about it is the LET network that works mostly on 4G networks.
Nevertheless, from the conference, it is clear that the 4G network is far behind in most African and Asian nations, where the phone will not receive a lot of attention as expected (Juliette, 2014). Thus, the phones producers will need more time to tap into the African and Asian market and also make the phone more stable for these regions networks. Customers these days have not been keen concerning cell phones due to too much hardware oriented products and slow software (Alison & Dean, 2014).
Clients are more inclined to a powerful software rather than hardware. Apple decided to create a more enhanced mousetrap, which enabled them to get a slice out of a 115 billion dollar market. In a marketplace where service providers opt to play out handset markers to achieve the best price, Apple has been able to complete good deals with AT&T to successfully deliver on client experience (Juliette, 2014). The new iPhone 6 has reinvented the user interface through brining in new internet functionality into a single package.
Like all its other products, the new phone is ready to win over the hearts and minds of people and leave rivals to catch up with them after months. I would recommend this phone to anyone willing to have a different type of business touch to a mobile phone. References Alison, W., & Dean, G. (2014). Economics. Essex: Pearson Education Limited. David, R. (2014). The influence of Apple Inc. – and Steve Jobs – on technology and learning. Boston, MA: Harvard Business School. Juliette, G.
(2014). iPhone 6: new Apple phone will run on 4G. The Guardian.