Marketing Management Case Study

Apple iPhone Price Cut: Is it a Right Strategy?

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Abstract:
Apple Inc., one of the most renowned companies in the world for computer technology, was ranked 121st by Fortune 500 in 2007. Apple's products include Apple TV, iPod, iMac and the iPhone. With mobile phones gaining prominence and becoming absolutely indispensable, Apple decided to enter the market. The company launched the revolutionary device, the Apple iPhone on June 29th 2007, which combines the features of a mobile phone and an iPod. Within two months of the gadget's entry into the market, Apple lowered the price of its 8 gigabyte storage iPhone from $599 to $399 which sparked off a controversy. The case tracks the innovative features of the iPhone in the mobile phone industry, where the product lifecycle is short and the market is highly sensitive. The case also debates Apple's pricing policies and facilitates discussion on whether Apple iPhone's price cut was the right move.

Pedagogical Objective:

• The changing dynamics in the technology industry
• Pricing strategies of a new technological gadget
• Challenges faced by Apple after iPhone's price cut
• Significance of pricing and product life cycle stage of a product.

Keywords : Apple iPhone, Pricing Strategy, Temporal Pricing, Skimming Price, Technology gadgets, Mobile Technology, Product Life Cycle, Price discrimination, Marketing Strategies Case Study, Consumer Electronics

Contents:

• iPhone: A Revolutionary Invention
• iPhone: Banking on Pricing
• RoadAhead