Apple IPhone for years has aimed its focus on the modern individual. With a top-notch smartphone that has wireless internet capacities with intuitive user-interface. A Survey from the TechNewsDaily back in 2011 described IPhone/iOS users as “more likely liberal, outgoing city-dwellers who make more money, take more vacations and enjoy the finer things in life.” ()
The IPhone was introduced to us January of 2007. Said to be 5 years ahead of it time, the phone could give you access to the internet, a screen the reacted to the touch, iPod features and had mobile capabilities. Steve Jobs put on a demonstration of this revolutionary phone at the Macworld stage. The phone ...view middle of the document...
IPhone had changed the game and many companies either were in denial or didn’t realize it.
July of 2008 the IPhone 3G was released. Its new features included faster data transfer, GPS, new sturdier look and upgrade updates. Aside from all these differences was the price. Even though the phone had proved to carries that it was able to provide a great product and service research had shown that due to the price 56% of potential IPhone customers did not buy. Hear the customer loud and clear they dropped the price to $199-$299. Compare to the first IPhone that good 74 days to sell one million the new IPhone 3G was able to sell one million in just one weekend. USA Today was quoted saying “It's cheaper, faster and a lot friendlier for business. Apple's blockbuster smartphone already had nifty features such as visual voicemail, a splendid built-in video iPod and the best mobile Web browser I've ever used. With GPS newly added to the mix, this handheld marvel has no equal among consumer-oriented smartphones.”(…..)
Already confident they had created a phone that had changed the phone forever they were now determine to make the phone more affordable forever. Lowering the price of the 3G at a breakthrough price of $99, the 3GS was introduced at the typical $199/$299 price. This time instead of making changes to the outside and inside of the phone they focused more on the guts. The new phone’s upgrades were the radio, Wi-Fi, bumping up the Bluetooth, storage increase, battery increase, and speed. As Apple continued with its improvements to the phone it made it harder and harder for people to resist jumping onboard. The only objection to making the change came down to three reasons for customers: no physical keyboard, no way to swap the batter yourself, and no way to avoid using AT&T as a carrier.
Apple was ready to change everything up again when they came out with the iPhone 4. Another breakthrough the introduced FaceTime and the highest resolution display ever on a phone called Retina. Prices again stayed at $199 and $299 on contract. It became the most successful product launch for Apple aside from some hiccups the experience with the product. It was also the first of their products to be sold through another provider, Verizon which open their product to a larger customer base. After a long wait they later came out with the iPhone 4S that provided AirPlay mirroring, iCloud, and voice control features. They also introduced a new capacity model of 32GB that raised the price to $399, but still having the 8GB at $199 and 16GB at$299. Yet again, the company bought themselves success with double the sales from the iPhone 4.
Taking an economic perspective it was up to this point that Apple’s customer base had to make a marginal analysis of the product they were offering. Since we “can’t have it all”, does the cost of an Apple iPhone weight out the utility it would bring to the customer. Utility is the pleasure, happiness, or satisfaction a good or...