Everyone has now probably heard about the new iPhones that Apple released last month. More specifically called the iPhone 5S and the iPhone 5C. This move by Apple to introduce a more affordable phone by their company into the market has critics and competitors wondering about Apple’s market share.
Apple is known as the company that “breaks the rules [and] changes the world”, and when that company starts to offer lower, cheaper prices the high class value just does not apply. Even though the iPhone 5C is by no means affordable it is seen or portrayed as a cheap alternative to the iPhone 5S.
I personally think Apple made a mistake by offering two relatable products into the market at the same time. We went over these concepts when we learned about Porter’s Five Forces. Even though that tool is used more for when companies try to enter a specific market I think we could use the same ideas for this new iPhone 5C as well. I think the threat of substitutes and rivalry are the main concepts that can be applied to this situation.
Read more about Apple here:
http://www.bbc.com/capital/story/20130904-the-end-of-apple-as-we-know-it