Apple’s iPhone X Marketing Strategy | ValueWalk

Just a few weeks ago, the iPhone 8 and 8S went on sale. There were no long lines outside stores, and there was a sufficient supply of phones to meet demand. Most customers preferred waiting for the much more innovative iPhone X.

It has now become quite apparent that this phone will not only be In extremely short supply until well into 2018, but that the company will not be using my pricing strategy. What reasons could it possibly have for walking away from such a massive profit increase? After all, don’t virtually all business firms – large and small – almost always try to maximize their profits?

Let’s consider, first, that two of Apple’s new iPhones – the 8 and the 8S models – have already gone on sale. By delaying, however unintentionally, the sale of the iPhone X, the company is bolstering the sales of these two less “sexy” models. So, in the long run, Apple is indeed looking after its bottom line.

Now let’s think about charging early iPhone X buyers a much higher price for delivery in November and December. Apple has long charged relatively high prices for its phones, which clearly have a certain “snob appeal.” But perhaps charging so much more for early delivery will smack a bit too much of privilege and special treatment. There’s something a lot more democratic about first-come first-serve – even for a luxury product – than allowing the relatively well-healed to jump the line altogether.

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Apple’s iPhone X Marketing Strategy – ValueWalk.