Dr.Philip Kotler defines marketing as “a social and managerial process by which individuals and groups obtain what they want and need through creating, offering and exchanging products of value with others.” (Essays, Research Papers and Articles on Business Management, 2019)
Throughout this report, we shall discuss and touch upon how and why Apple Inc has been successful through the pricing of its products. We will cover how Apple pricing helped them succeed and grow to be the tech giant it is nowadays as well as how they adapted their pricing over time to meet consumer needs.
Apple provides a comprehensive range of premium quality products from affordable to expensive. When Apple first entered the market, they were more expensive than its competition. This was due to the introduction of arguably the most innovative mobile phone in history, the iPhone. For the next few years, they would go on to dominate the mobile industry market share. In the beginning and for several years Apple remained the most expensive technology in the market, that is until Samsung appeared. Within the last 10 years, Samsung and Apple have had similarly priced flagship, mid-range and entry-level products. Apple are currently hold the largest market share 18% globally behind Samsung 17%. Samsung has acquired a good proportion as this study from (Mishra, 2020) shows.
When it comes to the pricing of Apple products the market consensus is that they are expensive and the term ‘Apple Tax’ has been coined by consumers for this reason. Apple has marketed their products in such a way that they are seen by the world as very premium products by way of using better materials, features and technology than their competition. Even though Apple products are very expensive, millions of consumers are purchasing the products. Many consumers who have these products tend to keep them for long periods of time and when they do want to purchase a new phone the only option is Apple because they are used to the technology and all their data, contacts, music, videos, images are only compatible on Apple products.
Apple started in 1977 long before its modern-day rivals but they still had strong competition in the race to build the home computer. They have grown year on year since they launched and have beaten all their competition throughout the years to this day. Apple pricing has adapted over time due to advancements in technology and brand awareness.
In 2007 when apple launched the iPhone, they were the most expensive on the market but as they have expanded their range to include several different spec models, they have been able to create and range of pricing from entry to premium. This is the biggest trend among technology companies it allows them to increase the size of their target market and make their products available to as many consumers as possible. Even though apple pricing has stayed the same with their flagship models it has changed due to the increase in models. Apple now has phones, tablets and computers for everyone from students, hobbyists, professionals and corporate businesses.
To conclude Apple has always been the most expensive in the market and will remain so due to brand loyalty, technology advancements and its premium image. Pricing of Apple products has adapted over time because they have an increased range of products. Apple pricing along with the other areas within the marketing mix has been the most successful technology business in the last 43 years. Apple is currently the most valuable company on earth.