Apple succeeds in mobile phone market
In today’s class, we talked about innovation and value, which draws mine attention to the success in iPhone.
Although apple already had strong brand name in computer market before IPhone launched, it is still a miracle in IPhone’s unprecedented success.
A market as competitive as mobile phone is always difficult to get into. Before iPhone launched, some mobile phone producers, such as Nokia, Motorola has already had great success in mobile phone market. They have large group of loyal consumers, strong brand name.
As I see, the key point of IPhone to be succeed in the market is that apple changed the competition rules in mobile phone market. In other word, they were opening a new market, which is different from people’s impression of mobile phone. They redefined the function of mobile phone, and bring this mini computer in your hand.
IPhone is always expensive compared to other mobile phone. However, look the people around, almost everyone has an IPhone. How could this be? Is that when people saw IPhone suddenly become non-price sensitive? I asked some of my friends about this issue. When I asked them “do you think IPhone is expensive?” almost everyone answers yes. Then, I asked “so why don’t you buy blackberry or Nokia?” They told me they like the system; they get used to use apple products and so on.
From my analysis based on the success of IPhone, I found 2 factors to be succeeded. First, the success belongs to the one who rule the market. Secondly, lower price not always win. Consumers don’t like cheap stuff, they just want the feeling of worth to pay. That’s why even iPhone set such a high price; people still want to get one. That is because the joy that iPhone brings to its customers makes them feel worth to that price.
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