3.

0 Commercial Viability Analysis ( Zayden Part)

3.1 Product Related Factor

Relative price

Many Apple devotees wouldn't even think of buying a non-Apple product. Because the buyer
views Apple products as special, they do not explore the alternatives that are available. Apple
is now able to price its items more expensively. Cost-plus pricing is the common strategy
used by price-makers. (Kristin 2022). Apple uses a retail tactic known as minimum
advertised pricing, or MAP. This tactic stops merchants from marking down Apple items
below the MAP. Apple can keep its products popular by making sure their prices never fall
below a certain level. This allows Apple to maintain the profitability of their business while
maintaining the clarity of their distribution channels. All of this helps to maintain Steve Job's
initial goal, which was to provide superior products that command premium pricing. (Doe
2021) The price maintenance strategy has drawbacks as well: If the potential profit from sales
is so low, retailers have little reason to stock Apple products or to devote valuable retail and
advertising space to them. On the other hand, huge chains sometimes use a product that is
only marginally lucrative as a "loss leader," offering it below cost to draw in more customers
or to encourage sales of ancillary items like cables and accessories that have a greater profit
margin. With the iPhone, the circumstance is a little different. Even though the phone costs
hundreds of dollars at retail, the majority of customers purchase it together with a two- or (in
Canada) three-year cellular service plan. The carriers subsidise the cost of the handset itself
in return for the ability to charge their iPhone users $70 or more a month, which results in a
far cheaper price than it would be offered unlocked and contract-free. These phone-and-
service contract offers are beneficial for shops because of the commission that carriers pay
them, which varies based on the kind and cost of the mobile plan each consumer selects,
rather than the hardware's selling price. This explains why many retailers will only offer you
a cheap iPhone if you also purchase "in-store activation" otherwise, they would lose out on
the majority of the sale's revenue. (Tabini 2013)

Uniqueness
The release of Iphone 13 with A15 Bionic processor offers a little performance gain over the
iPhone 12's A14 Bionic chip. In comparison to the A14 processor in the iPhone 12,
benchmarks reveal that the A15 in the iPhone 13 delivers about 10% greater single-core
performance and 18% better multi-core performance. The iPhone 13 outperforms the iPhone
12's A14 Bionic in graphics-related workloads by about 15%. Additionally, the TrueDepth
camera array notch on the iPhone 13 is 20% smaller, freeing up more screen real estate and
making the cutout less noticeable. (Charlton 2022) Cinematic mode, a brand-new camera
function on the iPhone 13, enables users to capture videos with a narrow depth of field at
1080p and 30 frames per second. When recording video, the emphasis may be smoothly
switched from one topic to another using the cinematic mode. The backdrop is blurred while
the topic is kept in focus, and the focus may be changed automatically as soon as a new
subject enters the frame. After video has been captured, blur and focus may also be changed
using the Photos app. Beside that, Photographic Styles, which are clever, programmable
filters that can do things like amplify or mute colours without changing skin tone, are also
supported by the iPhone 13. In contrast to filters, which are applied uniformly to a picture,
styles are applied selectively. Vibrant (boosts colours), Rich Contrast (darker shadows and
deeper hues), Warm (accentuates golden undertones), or Cool are some examples of
photographic styles (accentuates blue undertones). You can achieve the precise appearance
you desire since Tone and Warmth may be adjusted for each style. Futhermore Iphone 13 Pro
& Pro Max also comes with for an adjustable up to 120Hz refresh rate ProMotion display.
(Yossy 2021)

Technology Advance
The iPhone 12 Pro is replaced by the 6.1-inch iPhone 13 Pro, and the iPhone 12 Pro Max is
replaced by the 6.7-inch iPhone 13 Pro Max. The new iPhone 13 Pro variants both have flat
sides, a stainless steel frame, a textured matte glass back, and a modest increase in thickness,
making them almost comparable to the iPhone 12 Pro models in terms of appearance
(7.65mm). Sierra Blue, Graphite, Alpine Green, Silver, and Gold are the possible colours for
the iPhone 13 Pro variants. (Miller 2022). The iPhone 13 Pro has a resolution of 2532x1170
and a pixel density of 460, while the iPhone 13 Pro Max has a resolution of 2778x1284 and a
pixel density of 458. Both iPhones have a maximum brightness of 1200 nits for HDR, True
Tone to adjust the display's colour temperature to the surrounding light, Wide Color for
vibrant, rich colours, and Haptic Touch for feedback. The Wi-Fi 6 and Bluetooth 5.0
capabilities of the iPhone 13 Pro and 13 Pro Max are supported, and an U1 Ultra-Wideband
processor is built-in for spatial awareness. Larger batteries and the more efficient A15
processor have both contributed to a considerable increase in battery life. The battery life of
the iPhone 13 Pro and iPhone 13 Pro Max is up to 1.5 and 2.5 hours longer, respectively, than
that of the iPhone 12 Pro and iPhone 12 Pro Max, respectively. (Beavis 2022)

3.2 Market Related Factor

Concentration of Targeted Market

The middle-class and upper-class consumers who can afford to spend more for items that
offer them a fantastic user experience make up Apple's target market. This indicates that
these customers are more affluent and are prepared to spend more on expensive goods like
those sold by Apple. Apple often targets persons between the ages of 25 and 45, with high
income levels, seeking well-paying jobs. In addition to this main category, Apple also
specifically targets experts in specialised software fields including music, video,
photography, and all types of design vocations. Compared to other operating systems, these
working professionals favour Adobe's Final Cut, Photoshop, and associated editing tools
since they are compatible with Iphone and Macbooks as well as iPads. Even better, business
people favour Apple items like Macbooks and iPods for their everyday job. Since lighter,
more portable products like iPads and Macbooks are available, instructors, educational
institutions, and students of the upper class frequently choose them. (Simplilearn 2022)
Therefore, wealthy people who are prepared to spend more for technological items and
services with cutting-edge design, features, and capabilities make up Apple's target consumer
niche. Appreciating design, quality, and performance of technology goods and services over
their price is one of the traits that Apple's target consumer category has in common. Apple is
really good at connecting with its target consumers and acting like a real tech witch who
understands their needs, wants, and pain points! Its goods, curation, and features reflect its
thorough and constant market research. (John 2021) Last but not least, The most desirable
market categories for the company are identified as part of Apple's marketing tactics. This
step entails deciding which specific target audiences Apple will market its products to based
on the segmentation process. The business markets its brand as a premium supplier of goods
and services with top-notch and cutting-edge features and functionalities. Rich people who
are prepared to pay more on technological goods and services with cutting-edge features are
among Apple's target market. After years of analysis, it has become clear that the majority of
Apple's consumers value quality, performance, and design of tech goods and services over
pricing. (Apple Segmentation, Targeting, and Positioning 2022)

Timing of Market Introduction

Apple has become an expert at entering new markets over the years. Timing is a key aspect of
market entry success that is frequently discussed. Discourse around failing businesses and
technological innovations sometimes characterises them as either being too early (Windows
Phone) or too late (Google Glass). Naturally, "too early" is considerably more intriguing as a
conversation topic since the effects of "too late" are extremely clear-cut. "Too late" results in
a variety of commonplace outcomes, like the irrevocable loss of market share, the absence of
learning curve effects, or subpar supplier connections. (Jeremy 2017). The genius of Apple is
that it doesn't simply predict markets; it also invents them all at once. Any other firm would
have been perceived as being five years late to the MP3 player party, but when it comes to
Apple, the party doesn't begin until they arrive. With smartphones and smartwatches, it
occurred. With tablets and contactless payments, it occurred. Sorry Samsung, your cherished
stylus was also affected. (Hirson 2015)

Refrences List

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https://accountinginfocus.com/managerial-accounting-2/short-term-decision-making/price-
setting/

DOE 2021, ‘Apple’s Pricing Strategy’, GlobalMarketingProfessor, viewed 28 Oct 2022,

https://globalmarketingprofessor.com/apples-pricing-strategy/

Tabini, M 2013, ‘How Apple sets its prices’, Macworld, viewed 1 Nov 2022,
https://www.macworld.com/article/220085/how-apple-sets-its-prices.html

Charlton, H 2022, ‘iPhone 12 vs. iPhone 13 Buyer's Guide’, MacRumors, viewed 29 Oct
2022,
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feature-cinematic-mode-is-limited-to-1080p-at-30fps/
Miller, C 2022, ‘iPhone 13 vs. iPhone 13 Pro: Which should you buy in 2022?’, 9to5mac,
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Simplilearn 2022, ‘A Case Study on Apple Marketing Strategy’, Simplearn, viewed 1 Nov
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%20products%20as%20Apple's.

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BusinessResearchMethodology, viewed 1 Nov 2022,
https://research-methodology.net/apple-segmentation-targeting-and-positioning/

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https://www.edrawmind.com/article/apple-segmentation-targeting-and-positioning.html

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