Apple products have usually been priced above their competition and sold for their value, intrigue, and market leadership. Some would say Samsung is catching up on many of these fronts and even, perhaps, passing Apple. Do you think Apple can charge a price premium for its products much longer?
An Apple product is known for their value, intrigue and therefore has the market leadership; however, Apple is selling its products at a price premium, and it needs to be concerned that Apple products can be much longer stay in the market with the same premium pricing or not. The question is focused because there are competitors in the market, as Samsung and Chinese mobile phone market are selling the products at the lowest pricing. Apple has a good supply chain, and all stakeholders are happy with the company. The Apple’s pricing strategy needs to be focused or rethinking is there because Apple is earning more and increasing its profit margin, Apple increased the price of products; because the company has the customer from segment to segment are they are ready to get the Apple iPhones at the premium pricing. It should be seen that clients of Apple are prepared to purchase the items at any expense as the organization is engaged to collect quality in the massive market (Rogowsky, 2017).
However, Apple is selling products at some specific prices as Apple is selling some products at fewer prices. Apple is selling products expensive, however, in this way, the company learned some lessons because there are competitors focus on the low-price segments; Apple is selling cheaper iPad, and it is known that there are maximum customers across the world; that are getting Apple iPads. Apple concluded that the company has valuable segments of the customers in the market. Regarding the discussion of the Apple, it can be analyzed that Apple will charge a price premium because the major property of the company is to focus on the customer satisfaction and the customers of Apple are across the world and are ready to get the Apple products at any cost. It is analyzed that Apple reduces its price, then there could be a loss in the customers because Apple is known for the premium customer segment and clients are satisfied with the company. However, the company also has chapter products for price-conscious customers.
Apple is obtaining a progressive share in the market and expanding its net revenue because Apple has the client from fragment who focuses on superior valuing. Consequently, the organization adopted a few exercises because there are contenders center around the lower-value sections. It is analyzed that Apple is more concerned about technology and the satisfaction of the customer regarding than the pricing. Thus, it needs to be noticed that customers of Apple are ready to buy the products at any cost as the company is focused on building quality in the giant market. Apple customers are increasing every day, and thus, the company can increase the pricing, as Apple’s strategy is focused on satisfying each customer in the market. The consumers of Apple are loyal so they will buy the products (Brown, 2018).
It is concerned that Apple is managing its cost effective, according to the market, and analyzing the customer satisfaction, the customers of Apple are premium, and therefore, increase in the price will not affect the company reputation or profitability. Apple Inc. can build the estimating, as Apple’s system is engaged in fulfilling every client need in the market, no doubt Samsung is also maintaining its market through offering different phones in different pricing, but it could be noticed that Apple will remain the leader as the company has the loyal customer and ready to buy the products. It is also concerned that if Apple focuses on doing continuous increase in the pricing, then consumers may not value the products as if they get the same features in any other mobile company.
Apple’s global supply chains make its business thrive. There is secrecy among suppliers, superior quality standards by every party involved in Apple’s supply chains, and a total value focus that ultimately makes the customers happy. Is this a sustainable business model for Apple’s global supply chains?
Through analyzing the Apple’s global supply chains, it is known that Apple is maintaining its supply chain so that there could be effective among competitors, it is also known that the company is managing the secrecy among suppliers and there are also the superior quality standards of the company supply chain. Moreover, Apple is concerned about maintaining the total value through managing its supply chain because if the supply chain of Apple effectively maintains the quality, then the consumer of Apple also remains loyal with the company. However, Apple’s global supply chains are the best in the market because it is based on the sustainable business model. For better supply chain and as best business pioneers, Apple suppliers should be more worried as the organization continues assessing the stock administration.
However, Apple customers are happy as the supply chain knows how to keep the company happy. The supply chain if the company is effective and there is intense competition in the supply chain or with the supplier, who supply the material in the market to the company. Through analyzing Apple’s supply chains, it is known that the company is managing its supply chain by doing research and development so that customers also remain or stay loyal. Through the analysis of the Apple supply chain, it is known that it could be more sustainable in the market because suppliers are more concerned and care for the company services.
As the company Apple believes in global production, there are effective sourcing commitments by the company. Apple suppliers are more concerned as the company keeps evaluating the inventory management and other supply chain issues according to the demand forecasts. The Apple’s global supply chains there will be a sustainable business model because the company effectively maintains the practices and there is proper check, as analyzed that competition among the suppliers is increasing due to the less bargaining power of suppliers in the aggressive market leadership. Apple has confidence in the worldwide creation; subsequently, there are the feasibility and sourcing duties of the organization. Apple needs to supervise providers with the goal that store network could support accordingly that there could be production network maintainability (Linton, 2018).
It is analyzed that Apple is effectively and efficiently maintaining the supply chain infrastructure so that there could be effective in the products and so that the company could maintain its standards. Apple can strengthen supplier relationships through a focus on the aspects that are involved in it; the company has the best global supply chains as Mr. Cook effectively maintains the retail and inventory or there are more concerns regarding control the inventory. For better or more Supply chain transparency and to be one of the top business leaders Apple needs to manage suppliers along with the consumers so that supply chain could sustain and so that there could be supply chain sustainability. Moreover, Apple can stay competitive if the company does proper audit timely, it is noticed that Apple audited its suppliers, and it is concerned that Apple had supplier effectively maintained the position as revealed in the supplier responsibility report (Orr, 2018).
Apple’s worldwide supply chains are the best in the market since it depends on the economic plan of action; there are many suppliers in the market, because of high and concerned competition. Through examining Apple’s supply chains, it is realized that the organization is dealing with its inventory network as well as the other concerned matter related to the technology so that there could be growth in the aspect; however, by doing the innovative work, Apple clients additionally remain loyal with the company (Linton, 2018).
References
Brown, C. S. (2018, September 14). Apple’s new pricing strategy: Is it good news or bad news for Android? Retrieved from https://www.androidauthority.com/apple-pricing-strategy-android-904248/
Linton, I. (2018, June 25). What Is Apple’s Competitive Advantage in Its Industry? Retrieved from https://bizfluent.com/info-8734236-apples-competitive-advantage-industry.html
Orr, A. (2018, August 6). How Did Tim Cook Fix the Apple Supply Chain? Retrieved from https://www.macobserver.com/news/tim-cook-fix-supply-chain/Andrew Orr
Rogowsky, M. (2017, September 30). Apple’s Expensive Devices Bring Big Profits, But Come At A Price. Retrieved from https://www.forbes.com/sites/markrogowsky/2017/09/30/apples-expensive-devices-bring-big-profits-but-come-at-a-price/#6faf7c1462c2
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