Options strategy for apple iphone 5
Turns out, Apple has plenty of good reasons for pushing a smaller phone. Not least among those reasons: At a time when sales growth for the iPhone is leveling off, Apple looks like it's aiming to squeeze as many sales out of the market for its phones as possible.
Apple is certainly achieving cost savings. And analysts are predicting that annual sales of the iPhone SE could come in even lower—closer to 10 million to 15 million.
But Apple has lately become much more realistic about nearing the end of its era of certainty—when the company could feel absolutely confident that iPhone sales would grow quarter to quarter.
The introduction of the iPhone SE could be a smart way to help tide Apple over until the rumored announcement of a new flagship iPhone 7 in To be sure, Apple has explored a similar path in the past. When the budget-minded iPhone 5c was introduced in the fall of , Apple's aim was to secure a foothold in the Chinese market, where cheap and locally made Android phones, especially from homegrown manufacturers such as Xiaomi and Huawei, were soaring in popularity.
In this way, the generic strategy of broad differentiation supports the company in maintaining its leadership and position as a high-end and high-value business. For example, to effectively apply this generic strategy, the company must continue emphasizing innovation through research and development. Apple must continually develop innovative products so that the firm always stands out against competitors.
Competitors eventually catch up with new products, so the broad differentiation generic strategy compels Apple to always innovate to keep itself always ahead of competitors. In addition, the company must ensure that it keeps expanding its market reach. In this generic strategy, Apple does not focus on any specific market segment.
The firm competes in all market segments with other players in the industry. Such expansion and business growth are achieved through intensive strategies for growth. Apple uses product development as its main intensive strategy for growth. Product development requires that the company must offer attractive products to grow its market share and performance.
Apple implements this intensive growth strategy through innovation in its research and development processes. Through this intensive growth strategy, Apple views innovation as a critical success factor.
For example, the company continues to innovate through products like iPhone, iPad, and Apple Watch. In this intensive growth strategy, the firm also develops new products for the mobile market. Also, under the market penetration intensive growth strategy, Apple uses promotion through various websites and media outlets.
For example, advertisements encourage more people to buy Apple products. By selling more current products to more customers in current markets, this intensive strategy enables Apple to reach customers in all market segments. Apple uses market development as the least significant of its intensive strategies for growth. Market development involves creating new markets for new products or entering entirely new markets. This intensive growth strategy is similar to market penetration, but market development focuses on establishing presence in new markets.
Apple applies this intensive growth strategy by authorizing new sellers in markets where the company does not have any presence yet. Thus, this intensive strategy applies mainly in developing markets. Also, Apple implements the market development intensive growth strategy through novel products. For example, the company innovates to offer goods like Apple Watch, which is an entirely new product line for the firm.
Through Apple Watch, the company develops its reach in the smartwatch market. Such generic strategy requires that unique products should be offered to different market segments, which the company reaches through market development. Market penetration and market development are second and third in priority, respectively. The firm is strong in product development through innovation.