Apple iphone 4

Apple Inc. uses the “new product pricing” strategy when iphone mobile electronic devices were introduced in January 2007.  This highly innovative invention sets a “skimming” market-plus pricing, a price relatively higher than competitors.  The company’s objective is toward “profit orientation”, which means the firm is aiming to sell goods at a premium, so to maximize profit by selling to a smaller volume of customer.  Iphone is a new to the world product, which was presented in the introduction phrase.  Therefore, Apple sets a prestige pricing on their products, where only affordable consumers, such as those in the high to middle incomers are able to purchase.

Later, as competition increase, the price of iphone products reduced due to the entry of their direct competitor, Blackberry.  Blackberry stepped in the mobile market place, taking up some of Apple’s market share.  In addition to fighting the battle, Apple recently introduced the 4th generation of iphone, known as iphone4.  Now, it’s clear that Apple’s vision has shifted to “customer orientation” where the company identifies clearly the benefits for consumers to experience this product, like no other mobile devices.  The values are clearly illustrated below,