Apple’s move to boost the slumping sales of iPad

Apple unveiled its new iPad during a San Francisco event on Oct. 23rd, 2013.  “Thinner, lighter and more powerful”, as Apple advertised it, legitimize a new name — “iPad Air”. This imperative move of Apple of launching its undated iPad just after iPhone 5S and 5C came out not long ago, directly speaks to the slumping sale of iPads in this third fiscal quarter, 2013. During Q3, iPad sales fell to $6.3 billion which dropped 27% over the same period in last year.

   In the maturing market of tablets, Apple’s iPad update launch was aimed to generate a higher edge over its rivalry such as Microsoft’s Surface Pro tablets and Nokia’s Lumia 2520. “Lack of update” of the third version iPads mis-fulfilled customers’ expectations and gave away its competitiveness over its rivalries. But Apple figured out a way soon enough to regain iPad’s profitability using “production innovation” and  “differentiation” which sheds lights on Porter’s Five Forces business strategy. Facing with the competitive supplier power and threats of substitutes in tablet market, Apple’s strategic move of launching its updated, high-end Pad Air can enhance its level of competitiveness and grow a higher edge over its rivalries, which would promisingly boost its future sales.

Resources:

http://edition.cnn.com/2013/10/22/tech/mobile/new-ipad-apple-event/index.html?hpt=ibu_c2

http://money.cnn.com/2013/10/18/technology/mobile/apple-ipad/index.html?iid=Lead

Frenzy Iphone fans top sales of Iphone 5S at major US retailers

The “everlasting” frenzy of Apple products has been reinforced as Apple launched their iphone 5C and 5S in late September, 2013. As smartphone market having becoming more and more competitive and elastically demanded with price, Apple fought back its domination over Samsung Galaxy series and Android as it tops its sales among the major U.S. carriers, AT&T, Verizon, Sprint andT-Mobile.

The launching of Iphone 5C hasn’t been as welcomed by the market as it appears on the “Top Sales Charts” in the beginning.  Complainants about the expensive price regarding to its physical “no-change” from Iphone 5 except for the choices of colors of the phone cover impeded their value standing of consumers’ view in the market. However, the sales were quickly boosted after carriers like Best Buy dropped Iphone 5c’s price to $50 with a promotion method of providing gift cards or signing a two-year contract.

Besides the marketing strategy of offering promotions, Apple applies its “forward thinking” in Iphone 5S operations. The new technology of fingerprint senor is used to unlock the screen rather than entering password codes. A better qualified camera meets consumers’ needs with higher defined photo-shooting. And a new processor is also embedded in this new phone. These high-end technological features aiming at satisfying higher market needs perfectly demonstrate the smart forecasting that Apple conducted in the expected market.

Works Cited:

Padilla, Richard. “iPhone 5s Tops Sales Charts at Major U.S. Carriers as iPhone 5c and Galaxy S4 Battle for Second”. MacRumors. Monday October 7, 2013. Oct. 8, 2013.

< http://www.macrumors.com/2013/10/07/iphone-5s-tops-sales-charts-at-major-u-s-carriers-as-iphone-5c-and-galaxy-s4-battle-for-second/>

Stern, Joanna. “Best Buy Drops the Price of iPhone 5c to $50”. ABC NEWS. Oct. 3, 2013. Oct. 8, 2013. < http://abcnews.go.com/Technology/apple-iphone-5c-best-buy-weekend-50/story?id=20463745>.

 

 

 

Lawsuit for a shade of purple — Pantone 2685C

Trademarks identify the uniqueness of products with special packaging, signs, labels, etc.  British confectionary company Cadbury has being fighting for its lawsuit to register its distinctive packaging purple color defined as Pantone 2685C; however, it was denied after its five-year battle in the appeal court in London on Friday, Oct. 4th. The big rival on court is one of the largest food company Nestle, which brought up a testimony that a UK chocolate manufacturer has maintained a use of a particular shade of purple since WWI.

What’s wrong with Cadbury officially applying for its distinctive “shade of purple” which has been recognizedly used for packing since the 20th as a trademark? Cadbury responded to the “unfair competitive advantage” of trademarking Pantone 2685C by arguing  that “so many other shades were available there” for other manufacturers.  In people’s minds with conventional trademarks, they are usually uniquely designed logos such as “Coca-Cola” and “H&M”, a distinctive symbol such as a bitten apple for “Apple” and a rabbit head“Playboy”, or artistic patterns such as Burberry’s check design.  Maybe the recognitions of colors, smells or even sounds as one’ trademark are not acceptable yet for it will create new conceptual complicities.

The formal lawsuit testimony below put Cadbury’s trademark application to death sentence. “The mark applied for thus lacks the required clarity, precision, self-containment, durability and objectivity to qualify for registration.”

Trademark plays an important role in branding and marking for a company. It adds to the points of difference in determining the value proposition of a company. Therefore this is why Cadbury would fight for this battle for five years and its competitor Nestle would join in the appeal court to overturn the recognition of Pantone 2685C as its trademark. Before the unconventional trademarks like colors become more relevant and credible for the market, use of Pantone 2685C has to maintain publicly useable for other manufacturers.

Works cited & more reading:

Cadbury denied right to trademark Dairy Milk purple”.  FRIDAY, OCT 4, 2013. <http://www.salon.com/2013/10/04/cadbury_denied_right_to_trademark_dairy_milk_purple_newscred/>.

 

 

Breaking the Southeast Asian market— Canadian business

Most of the times, economy works the best itself for trade and expansion. In this case, however, some Canadian business benefit from the government’s action of introducing the new business market in southeast Asia.

 (Sean Kilpatrick/Canadian Press)

Prime Minister Stephen Harper is paying a visit in Malaysia this Saturday, October 5th, and it has been 17 years since the last “sitting Canadian prime minister” had a visit there. The reconnection between Canadian businesses and Southeast Asian market has been mostly driven by the emerging economy from the global economic growth point of view. Besides, “a growing Southeast Asian middle class”, is another driving factor in this market expansion.

CAE Inc. has launched its successful pilot training for Air Asia, a regional fast-growing discount airline. Other Canadian companies such as CAE Inc., Talisman Energy, Bombardier Rail, and Teknion Furniture  are already in the move to cash in the prospective Malaysian, Philippine and other southeast Asian markets along with the friendly political environment in light of Stephen Harper’s current visit.  As we can see, business expansion in new international market has been a lucrative and unavoidable trend in current economy, and government creating a friendly diplomatic environment has become essentially helpful in this market expansion.

 

 

Works cited:

“Harper eyes regional growth for new business in Malaysia”. The Canadian Press. Oct 05, 2013. <http://www.cbc.ca/news/politics/harper-eyes-regional-growth-for-new-business-in-malaysia-1.1913826>.