There are many reasons why Apple is one of the biggest and most valuable companies in the world. One of the few companies that do not even have a slogan to go with their brand name, Apple has its own style of doing business and marketing its products. It will have to be said that Apple has been lucky in terms of acquiring some of the best minds in the business that are responsible for both its business and marketing strategies.
There is no denying the fact that 2013 was relatively a mellow year for the tech giant; many were wondering whether the company had peaked and was on its way down. But Apple yet again proved them wrong with its latest iPhone 6 launch that has shown the world that Apple is here to stay and stay on top.
The product Apple launched was beautiful and almost exactly what Apple fans and consumers wanted. However credit, once again, must also be given to its business strategists who gave the company a lot of margin for profit with the storage space allocation of iPhone 6.
As we all know that iPhone 6 comes with 16GB, 64GB and 128 GB storage space. The entry level phone features 16GB, which by any standards is too low. Since a smartphone is now used as more than just a phone; therefore this low storage caused problems for consumers who without an SD card simply could not store all their data in the new 16GB iPhone 6.
Experts and consumers alike thought that Apple made a huge mistake by keeping 16GB for its entry level phone and doubling the mid and top-tier iPhones; however as far as Apple is concerned this was only a brilliant business move, which automatically pushed its 64GB mid-tier iPhone for higher sales. With only extra $100 buyers will get 48 more GBs of storage space. What is in it for Apple? This push will make iPhone’s Average Selling Price higher as compared to its previous models. With this strategy it is believed that Apple will hit the $3 billion market in 2015 in terms of its iPhone sales.
With 48 more GBs of storage space an average consumer will consider it a fair bargain and will consent to pay $100 more for the 64GB iPhone; whereas Apple could have easily offered this storage space to its entry-level phone. As far as its 16GB phone goes, it will also see its fair share of sales because there are many consumers who are on a budget and just want to own an iPhone. However sales may not be as good as the 64GB phone, but the extra $100 will make up for the production cost of Apple’s 16GB iPhone.
With this storage space allocation, Apple in a way is telling its consumers to purchase the 64GB iPhone, which will do wonders for the company’s revenues and profits. It shows a clear thinking from Apple who is dictating what the consumer should choose.
