Apple
has recently launched iPhone 8. The phone is predicted to be not a big success
as much as iPhone 6 or iPhone 7 was. The central concept is the customer
preferences, the competition in the Market dynamics. The launch of the iPhone 8
helps us in the understanding of how market and the customer behaves to a
certain specific product. It gives insights in relation to both the
microeconomics factors and the macroeconomic factors. As far as
microeconomic factors are concerned, the launch tells about the target market
that is the affluent class that prefer the luxury products and this customer
preferences drives are referred to as the demand giving company answer about
the core problem that is “What to produce?”. As far as the macroeconomic
factors are concerned, the potential success of the phone will add to the economic
growth of the country and thus will help in the improvement of the standard of
living of the common people. The entrepreneurial motive of Apple is to earn
more and more profit and return and this is why it is quite important to keep
the cost of the produce as low as possible in order to have more gains. The mass
production and the sale of the iPhone 8 at the global level will help Apple
achieve economies of scale and thus production at the minimum possible cost
reaping more returns. The success of iPhone 8 would largely depend upon the
customer preferences however since the product does not feature much innovation
than the previous versions, there is big question mark on the success of the new
product launched.
I would agree there a very few upgrades to the new IPhone 8 and the few they have added seem miniscule. I don’t believe customer preferences is that big of a deciding force on whether or not the new IPhone will be successful. Apple has made a few revisions to the IPhone in the past few models that didn't seem to align with customer preferences but still were successful. For example when they ostracized the jack on the iPhone it created an uproar but the company still continued to break records and sell even more phones each time a new one came to the market. Even though upgrading from the IPhone 7 to the IPhone 8 may create a small gain in terms of a better phone, many people still find it necessary. The reason is because many of these middle to higher class people believe it to be more of a status symbol instead of the practicalities of what the phone actually offers. All in all the IPhone didn't change much at all from the seven to the eight but will still be a huge success.
ReplyDeleteThank you Benjamin for you kind and critical reply to my post. Yes, you have raised a good point as customer preference will not be an issue but my point was that if you are launching a $1000 phone than you target audience or the sector of market that you are covering or looking for are basically cooperate sector and people with upper class. The lower classes of society cant afford such luxuries as they are very expensive. The security and other new feature included in iPhone 8 are also basically the functions for which upper class of society is more concern rather than the lower class. It will be great if same feature are available for the lower class at a reasonable price or the Apple can make the price range a bit lower so that more and more people can enjoy the befits they are offering.
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