Friday, September 20, 2013

Apple Hosts First-Ever iPhone Launch in Beijing

According to the article, Apple has launched a new iPhone in China. The targeted market for this phone is the high- end market, as the phones are very highly priced. Like many of their other products, the company chose to focus on the high- end market. Although this strategy ensures that they make high profits in America, lowering their prices could have given them a better chance of increasing their sales in China.

From the article, it is clear that most of the Chinese people prefer cheaper phones from the local manufacturers. Some of these local phones have the same features as the overpriced iPhone, and are being sold at much lower prices. This will make it very difficult for the iPhone to penetrate the market.

The best approach, which could have ensured more sales, would have been reducing the prices. This would have enabled them to compete with the local phone manufacturers. Alternatively, they could have targeted a different market where the consumers are less sensitive to price. The people of China are very sensitive to the slightest changes in price and many of them are very loyal to their local brands.

One way through which this situation could have been avoided is by conducting a thorough market survey, from which they would have learnt that this particular market is more concerned with price than quality. The Chinese market is very different from the American market where the brand name and the quality of the product determine whether the product will sell. Another way through which Apple could catch the customers’ attention is by producing some of their phones locally. This will help attract the people who prefer local products to imported products.

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