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New iPhone Fights Steve Jobs’ Surprising Mistake | Forbes

During the iPhone’s explosive growth period, Apple followed through on Steve Jobs’ strategy. Keep the price of the hardware high, but keep the price of software and services as low as possible. That juiced Apple’s revenue and profits to record-breaking levels. Now the hardware market is saturated, iPhone sales are no longer climbing, and Tim Cook’s Apple has to turn around years of dogma to build a new business model.

Steve Jobs’ strategy had a flaw. At some point, you no longer have room to grow.

On hardware pricing, Apple has lost its unified approach across the world, with significant price cuts in China to fight allying demand sitting alongside efforts in India to raise the average selling price by removing the lower-priced handsets from the portfolio. In the US and Europe, Apple has been offering significant discounts on the iPhone, albeit through trade-in in older handsets.

Keeping the price of the hardware high is proving to be an increasingly difficult strategy. Exchanging market share to maintain a higher price cannot go on forever. Something has to change.

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New iPhone Fights Steve Jobs’ Surprising Mistake.

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