RE: Nicole’s Post about Prestigious Apple Looking Cheap

 

Apple has recently introduced 2 new iphone 5’s into the market: iphone 5S and iphone 5C.  Apple has always been known for its costly products that brings a sense of prestigious and status. For this reason, the new iphone 5C has brought the attention of many critics. The iphone 5C is relatively cheaper at $99 compared to the iphone 5S of $199 with contract. With a slower processing speed, lower storage capacity, and manufactured primarily of plastic instead of aluminum and glass, the phone is more basic.  Nicole has made a good point in her post https://blogs.ubc.ca/nicolelylam/2013/10/07/prestigious-apple-looking-cheap/ about Apples’ new approach in efforts of entering the cost leadership strategy from previously being in the differentiation strategy. But I disagree with Nicole in terms of Apple being “stuck in the middle” of The Porter’s Generic Strategies. I think Apple trying to go after multiple strategies may actually be an advantage as Apple can become more competitive in response to the new global demand for smartphones. The iphone 5C allows Apple to tap into emerging markets, primarily those with a lower budget. Apple gave consumers a choice to pick their iphone 5 preference and allows for a greater target market which will increase their revenues.

 

Reference: http://www.policymic.com/articles/66009/iphone-5c-release-how-the-new-phone-redefines-apple

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