Iphone 5c Case Study

Good Essays
Register to read the introduction… Strategy analysis is the company needs to consider about the Competitors as well as the whole industry, and then assess to firm’s plan. We can figure out that the competitions in the smartphone market are quite intense, there are numerous competitors and are almost equal size, such as Samsung, Microsoft. So, Apple Inc. has to investigate the cost leadership and the unique producers in order to make a competitive price in the smartphone market. The website take the example of Moto X, which has 18 kinds of colors and the functions are really similar to iPhone 5C (Darren, 2013). The price of Moto X is $599, so the manager should decide a lower price than it to gain a competitive advantage. In particular, the competition is not just from the external market, we know that Apple Inc. promoted iPhone 5C as well as iPhone 5S at the same time. To iPhone 5C, the manager needs to consider about the plastic case, which is $42 less than the metal case cost of iPhone5S (Ben, 2013). So manager should also compare the 5C’s price to 5S. It is an important thing to keep secret of the product’s price before they coming out. The manager of Apple Inc. can survey the expected price of the public, or conduct some historical sample tests before making the final price …show more content…
Firstly, compare to iPhone 5S, people claim 5C just looks an iPhone 5 with a candy-colored plastic shell. According to a report published by UBS, the same memory for 16 Gigabyte iPhone, 5S costs $213 in materials, whereas a 5C costs $156IPhone 5S has metal shell, Touch ID fingerprint scanner, more advanced A7 chipset, Motion Coprocessor and True tone flash for camera. The different price due to plastic case of $42 and finger print sensor of $7. However, the price of iPhone 5C is only $100 less than iPhone 5S. The UBS also estimates the gross margins of iPhone 5S is 45-55% and for iPhone 5S is 48-54% (Ben, 2013). As a rational consumer, I will buy iPhone 5S instead of iPhone 5C, since 5S has much more functions, which is not at a so much higher price. Secondly, the factors of competitor also have huge effects. Samsung is the key part for apple to make its “retina display” screen, as well as apple use Sony’s sensor in its camera. We know that Samsung and Sony are competitors. Apple Inc. is hiring, relying and paying them. But if someday, Samsung or Sony stop providing essential parts to apple, what will happen? I think Apple Inc. has to produce all manufacturing parts by themselves under a big amount of fixed cost, which will have a big effect on Apple’s price decision. Thirdly, the price of iPhone 5C is not as low as rumored. It brings the question to us, who exactly is Apple targeting? We know that

Related Documents

  • Decent Essays

    Iphone Vs Android Essay

    • 1096 Words
    • 4 Pages

    Price is another factor that dictates the difference between the two phones. iPhones are generally more expensive than some Androids, with the iPhone 6s starting at $649, and the iPhone 6s Plus starting at $749. The more modern phones have the same price as the iPhones – the Samsung Galaxy S6 edge plus, starting at $799.99 and the Samsung Galaxy Note5, starting at $699.99. The difference between the two companies is that since Android offers more of a selection, the prices are going to be lower. The newer Android phones coming out are going to be priced similarly to Apple if it is a name brand – Samsung, HTC, LG, Google, Sony, etc.…

    • 1096 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    Most users prefer the iPhone but then there are those who prefer Samsung. In this ad the main argument is which phone is better, but someone may wonder what would be the difference between the two. When you first look at the two you wonder which is better phone for himself or herself. The size of the Galaxy 7 is 5.1 inch, which makes this device feel much heavier than a…

    • 1077 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    Iphone Swot Analysis

    • 1804 Words
    • 7 Pages

    High value customers may wait to buy the product after the price cut and the pricing strategy would prove to be ineffective. Labor Intensive Product Supply and Future Outlook According to research firm IHS Technology, ana lyst’s claim the cost of producing a $649 iPhone was $ 211.50 and the cost of manufacturing a $749 iPhone 6s Plus was $236. (Campbell, 2015) As time passes the cost of manufacturing iPhones has declined for Apple and they have benefited from economies of s cale. Low production costs have allowed Apple to make price cuts and offer their older technology at lower prices. Previous versions of…

    • 1804 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    Samsung sells its products in the market in multiple prices unlike the Apple having premium pricing. Actually, Apple placed iPhones in the electronic stores to push the sales through two retail distributors- Ingram Micro and Redington. This helped in the tremendous flow of iPhones in India and increase in sales. The average cost of an iPhone is 45,500 whereas Samsung cell phone models range in between Rs 5,990 and Rs 20,900 which shows huge difference in the price and this has been the reason that people are inclined towards Samsung in India (Mukherjee, 2013) 4. Distribution of iPhone in India Apple does not have its own retail shop in India.…

    • 2557 Words
    • 11 Pages
    Decent Essays
  • Decent Essays

    It would need to be severe and serious damage to their ability in market and survive live on for a sales ban on Samsung smartphone to be an acceptable legal solution and reasonable. a. Obviously the statement isn’t strong enough for court to order a ban towards Samsung smartphones, eventhough Apple claims that they are selling less than they would have done after the Galaxy been released to market. b. But, unfortunately Apple’s sales are still so high, so it’s just not going to happen 2.…

    • 974 Words
    • 4 Pages
    Decent Essays
  • Decent Essays

    “Apple vs Android” Advertisements can often be the result of competition between two companies. I contrasted ads for the Micromax A70, an Android phone, and the iPhone 4S, an Apple phone. I analyzed the marketing techniques each company used to sell their phone. The intention of the A70 advertisement was to market the phone as an affordable alternative to the iPhone. As usual, Apple marketed the iPhone as a different and unique device that sets it apart from all other phones on the market.…

    • 1206 Words
    • 5 Pages
    Decent Essays
  • Decent Essays

    During these day that the new Iphone 7 and Iphone 7 plus are going to available on September 16th, 2016. Every time Apple launches a new product, number of Samsung smartphone sales reduces because people are more concern to Apple than Samsung. Moreover, when people with average income want to buy a smart phone, they would rarely choose Samsung because there are many better choices for consumers in Vietnam. According to The gioi di dong web site, with 5 to 6 million VND, we can get an Oppo smart phone with high quality and a lot of useful function such as high camera quality so costumer can take a selfie more beautiful , or an Asus Zenphone 5 around 4 million VND with high camera quality and battery (Thegioididong.com,…

    • 2279 Words
    • 10 Pages
    Decent Essays
  • Decent Essays

    Apple's Ethical Approach

    • 1622 Words
    • 7 Pages

    This is because a subscription model does not require customers to pay for the full cost of owning an iPhone upfront. Instead, subscription terms make it possible for customers to have small payments on a regular basis that they can afford. Consequently, even individuals that would ordinarily not be able to foot the bill for a new iPhone at once will then be in a position to own one. This will enable Apple rope in the low-end of the market, hence increasing the growth rate of its sales as well as market share in the long run. The primary threat to such an approach is that emerging smartphone manufacturers (especially those from China) could increase the quality of their products significantly while maintaining low prices.…

    • 1622 Words
    • 7 Pages
    Decent Essays
  • Decent Essays

    In the article “Invention Of the Year: The iPhone” writer Lev Grossman says, “Most high-tech companies don 't take design seriously. They treat it as an afterthought. Window-dressing. But one of Jobs ' basic insights about technology is that good design is actually as important as good technology. All the cool features in the world won 't do you any good unless you can figure out how to use said features, and feel smart and attractive while doing it.” This shows how the attractiveness of the iPhone plays a huge part in promoting the smartphone, which is why Steve Jobs focused on the attractive aspect of the smartphones.…

    • 736 Words
    • 3 Pages
    Decent Essays
  • Decent Essays

    Case Study Of Apple Inc

    • 1098 Words
    • 4 Pages

    It further put the company on a downward trend as the features that are available on the watch are the same that can be accessed on iPhone. Customers, therefore, are becoming tired of the products. The company should, therefore, step its management roles and think of creative ideas that can put the business back to profitability. As it offers more devices more than 1 billion gadgets are being used—it can likewise increase its sales. However, currently, the company has fewer products compared to competition such as…

    • 1098 Words
    • 4 Pages
    Decent Essays