Apple Apple Apple!
Venkateswara M
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The biggest tech event of the year just concluded and the iPhone maker has launched a host of new products. Although it has been a week, they are just omnipresent and their wave is the talk of the town!
Apple seems to add just a gram of features with every release whereas the rivals have taken at least a step ahead of Apple by adding more features at the affordable price range.
Now when I say rivals, I not only refer to Android but IOS itself! Yes, they have invited their own self as their competitor!
I strongly feel that there is a problem of market cannibalization when it comes to iPhone 11 series and its predecessor iPhone X series.
A major chunk of buyers, irrespective of having a strong affinity towards the brand, would still think twice in order to purchase the iPhone 11 series. Chances are high that they may even give up their purchase decision. Reason being, it doesn’t really make sense for a customer to purchase iPhone X series (ranging from 60K to 90K) during 2018 and to look forward to the next model in 2019, which costs more than a lakh rupees!
Considering the purchasing power of an average Indian consumer, it is highly unlikely for a larger crowd to make a transition from iPhone X to iPhone 11, in less than 12 months!
Hence the introduction of the new product may lead to cannibalization of its predecessor (vice versa) eventually resulting in a decrease in sales volume!
I personally feel that Apple has leveraged enough on its brand equity and it’s time for the company to re-strategize their super creamy pricing model in order to sustain their tag of being called ‘The coolest gadget that one would die to carry!’
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5 年You can afford to do it only when you are Apple, when you have a fan base which is irrationally loyal, who believe you are the only org in the market who guarantee security and when you have successfully projected your product as a fashion statement in developing countries. However, I feel, this model of business is not going to run in a longer run. In my view, in next 10 years, either Apple is going to change or people are going to change apple. One cannot be hypnotized forever.
Enablon Consultant || GRC & ESG Consulting || GTM support || Digital Transformation
5 年Venkateswara M nicely written! But isn't it the virtue of launching a newer model of every product, to actually make the buyers switch to the latest version of the product. How come is this cannibalizing the market for iPhoneX? Eventually the prices for the predecessor would plunge and there would be a newer segment who would now be able to switch to iPhoneX. That's my understanding of it. Open for discussion.