PRICING

STRATEGY
( 2014 to date)
from

of APPLE COMPANY

Teacher: Ms. Nguyen Thi Yen

Vũ Thị Yến Hương_K194081220

Nguyễn Âu Minh Tú_K194040605
Nguyễn Trương Hoàng Mai_K194040586
Nguyễn Hoàng Mỹ Duyên_K194040578
TABLE OF
CONTENTS

TASK ENVIRONMENT

GENERAL ENVIRONMENT

REASON TO CHOOSE THE

STRATEGY
TASK ENVIRONMENT
TASK ENVIRONMENT

DISTRIBUTORS

  In general, Apple product prices are not really expensive

for European customers, this is also what Apple has always
wanted because the margins in this market remain stable at
the prices they already have predefined. However, for Asian
markets, the price strategy needs to be softer because it is
available here portable computers have been very popular
and the technology of imitation Apple products has been
very popular.

• China has the price  of  iPhone 6s (16GB) with 778.72 USD in
comparison to  808.23 USD in France, England.
TASK ENVIRONMENT

CUSTOMERS

   Target innovative customers and

want to be pioneers such as
businesses, teenagers.

 Apple build a friendly users

community, it constructs
Marketing strategy to make them
want to stick with the company for
a long time.
TASK ENVIRONMENT

CUSTOMERS
 Leverage strategy
 Apple intentionally comes up with an additional, slightly less appealing option, a potential marketing strategy to
influence customer choice, specifically, when a customer is only faced with two choices, they often have a headache
and take longer to choose. However, when there is a third option that is a decoy bird, it will make customers feel that
one of the two choices above is much better. The appearance of this third option will upset the initial decisions of the
customer in a more favorable direction for the seller.
•For example: On November 14, 2014, iPhone 6 with internal memory versions in turn:
16GB: Basic for $ 199
64GB: Up 48GB, for $ 299 ($ ​100 more than 16GB model)
128GB: 64GB increase from mid, with price $ 399 ($ ​100 more than 64GB model)

The 64GB model in the middle is the decoy product used to bridge the price gap between
the cheapest model and the most expensive model. In addition, it also works to direct
customers to the GB model with the highest price.
TASK ENVIRONMENT

COMPETITORS

 Competitors: Nokia,
Samsung, Blackberry,
Lenovo…
TASK ENVIRONMENT

COMPETITORS

Does Apple always price products higher than the competition?

 Apple has the ability to convince us to pay that high price.

 Apple tax- term used to describe the amount of money a customer is willing to spend on
an apple product instead of a competitor product with Similar features  related to the
“cool factor "Tied to apple (logo) (depend situation).

 For apple: never sacrifice quality for price => the money spent to buy the latest iphone
will help create the best improvements of iphone in the future.

 Apple is exclusive to IOS operating system with high security.

GENERAL ENVIRONMENT
GENERAL ENVIRONMENT

POLITICAL ENVIRONMENT

  We can compare those prices to the Model AU Price US Price Converted Difference

local ones by multiplying them by

the current conversion rate ($1US is
iPhone 6 16GB $869.00  $649.00 $778.15 $90.85
$AUD1.09) and then adding 10 per
cent to account for GST. Here’s the
iPhone 6 64GB $999.00 $749.00 $898.05 $100.95
comparison:
iPhone 6 128GB $1,129.00 $849.00 $1,017.95 $111.05

iPhone 6 Plus 16GB $999.00 $749.00 $898.05 $100.95

iPhone 6 Plus 64GB $1,129.00 $849.00 $1,017.95 $111.05

 So Apple is slugging
Australians around $100
more than US customers iPhone 6 Plus 128GB $1,249.00 $949.00 $1,137.85 $111.15
for most models.
GENERAL ENVIRONMENT

EONOMIC ENVIRONMENT

 IN 2014
 
IS -
O

After the economic crisis in 2008, the

R EC

Economy resumed in 2014 which brought

IS
E

lots of chances. As well as that, Apple made

IC TH

use of this phenomenon to launch a product

C

named Iphone 6. By this efficient strategy,

R

Iphone 6 became the fastest selling

E
M

smartphone in the world.

T
O
F
N
A
GENERAL ENVIRONMENT
TECHNOLOGY
 The design of the iPhone 6 and 6 Plus is
considered to be inherited from the iPad Air.
iPhone 6 is 6.9mm thick, iPhone 6 Plus 7.1
mm thick. Both are thinner than the iPhone
5C and iPhone 5S. The iPhone 6 was the
thinnest phone in the world at the time of its
launch.
 The screen is the biggest change on this
product . Apple equips the display device it calls
"Retina HD Display".
  All monitors use multi-
domain LCD panels called "dual-domain
pixels", RGB pixels will be offset in a pattern,
so that every pixel is viewed from different
angles. This technique improves the viewing
angle of the screen.
GENERAL ENVIRONMENT

TECHNOLOGY

 Both models feature the Apple A8 chip and the M8 motion processor, which is slightly improved from
the M7. Phil Schiller has stated that the A8 chip will deliver 25% more  CPU performance, 50% more
graphics performance and less heat than the A7 chip found on the iPhone 5S.

 LTE connectivity on iPhone 6 and iPhone 6 Plus is converted to LTE Advanced. The iPhone 6 and 6 Plus
added support for Near Connectivity (NFC), but initially it was used exclusively for Apple Pay.

 The main camera on the two machines has 8 MP resolution, ƒ / 2.2 aperture, both of which are five-
element lenses and are protruding behind. Both have True Tone flash, Auto HDR, and auto image
stabilization. The front camera has 1.2 MP resolution, ƒ / 2.2 aperture, which can record 720p HD video.
It's much improved on face recognition, and an automatic HDR feature for photos and videos.
GENERAL ENVIRONMENT

TECHNOLOGY

 
GENERAL ENVIRONMENT

SOCIOCULTURAL FORCES

 Not only economists but also culturalists agree that culture is

both the goal and the driving force of socio-economic
development. The economic impact of culture is very large and  
complex.

 Sociocultural forces include changes and differences in the emerging generations. The millennial generation
makes up the majority of the workforce. Millennial's and post-millennial are more technically savvy than
any of the older generations combined; this bids well for companies such as Apple and the demand for their
products. Not only do Apple products appeal to the younger generations because of their lifestyles, but
technology is becoming more and more ingrained in every type of career and the industries in which they
are categorized. Technology is more prevalent in education, the workforce, and for recreational use more
than ever before. It would then seem that most of the societal values, attitudes, and lifestyles that make up
the sociocultural forces are all in favor of aiding in the continuous success of Apple.
GENERAL ENVIRONMENT

DEMOGRAPHIC FORCE

 
 iPhone is aimed at the elite consumers, businessmen,
employees, the students of the well-off family ,... iPhone
lines mainly serving this market are iPhone 5, iPhone 5s,
iPhone 6s, iPhone 6 Plus.

 iPhone  affects to the low-income consumers with  iPhone

4, iPhone 4s.
 IN BRIEF

“
The price policy is implemented
according to the life cycle of the product.
 
WHY DID THE COMPANY CHOOSE

P R I C I N G S T R AT E G Y ?

Because this strategy helped the

company Orient customer psychology

Made them think they have

bought the item at a great price

Therefore, optimal benefits

would be obtained