Apple has managed to retain its stature as one of the premium product brands for years now. Despite this, they’ve still managed to edge out other brands.
While its record earnings are still attributed to its well known iPhone, iPad and Macbook sales, they still reeled in some revenue thanks to the timely launch of the Apple TV+.
Nonetheless, there’s every reason to believe that Apple pushed more sales, and is going to keep doing this, because they are changing their market proposition. Apple is giving people a more affordable way to own new devices instead of waiting to buy outdated models in the resale market. Which is obviously extremely exciting for many people to hear!
An Entry-Level Phone Strategy
Apple is switching from its initial plan of selling old models at affordable prices to satisfy the mid-tier buyer. They have realized that making and launching a new phone with this market segment in mind leads to better sales.
They tried this a while back with the iPhone SE. Even though the cheap SE overshadowed the flagship model since people preferred it, Apple still reeled in interested buyers who had previously only been able to observe launches from a distance.
2018 saw another shot to woo the mid-tier market. This time, Apple went for a near flagship model to avoid the average selling price hit they took with the really cheap SE.
When launching the XS Max and the XS, they also introduced an affordable XR that was very much similar to the flagship models in looks but cheap enough for most budget buyers. The XR was extremely successful. Things even looked better because you could pay around $29 per month with no upfront cost to own the phone.
Things are the Same With the iPad and the Apple Watch
Apple has also launched affordable versions of the iPad that are more than sufficient for the average user and well-priced enough to entice more buyers into taking the leap to buy an iPad rather than sticking with their laptop or phone or a bog-standard tablet from another brand.
Even though you won’t get a cheaper version of the Apple Watch just yet, Apple still keeps giving deals of new versions of the older models. This gives you the power to hand over a premium gift to your loved ones without breaking the bank.
Apple Still Retains its Appeal to Premium Buyers
Despite its not so subtle efforts to widen its market base, Apple still keeps a tight hold on it’s premium flagship deals.
Case in point, the $999 plus iPhone X sounded ridiculous at the time. Many people thought no one would even buy it. However, people bought it in the masses. The top specification iPad retails at $1700 and a MacBook Pro ranges from $2400 to $6000 depending on the specific configuration. Apple’s premium flagship devices still offer a great value and stature proposition meaning that the company isn’t losing on the market segment that helped it make its name in the first place.
Apple’s New Market Segment Will Tip the Scales
Since Apple is definitely still making a fortune selling its flagship devices, any additional revenue to its coffers will just lead to higher and higher profit margins. This new approach of availing new and more affordable products in its line up gives budget buyers or even premium owners a chance to buy more than ever. For instance, instead of handing down your old phone to your nephew as a gift, you have the chance to buy them an XR without breaking a sweat especially if you are buying it on a payment plan with no upfront cost which there are plenty of options available to do so now, check out Compare My Mobile to see some of them. While there might be other factors in play, I believe that this new marketing strategy is what helped them post such an impressive holiday season performance, and it will keep pushing their sales higher as long as they keep availing more next-gen but budget-friendly products on their line ups.
It’s Not All Good News
Although this is all very positive for Apple, and very exciting news for Apple fans to hear there may be more affordable options available to them, as it’s no secret they’ve been criticized for the increasingly large price tags with each release. However other tech companies aren’t exactly struggling either, and some people are even jumping ship from Apple to Android, etc.
Samsung – Samsung has got some very much anticipated releases coming up this year too, such as the Samsung Galaxy S20 which until recently known as the Samsung Galaxy S11 is in fact already available. Prices are yet to be confirmed but it will probably be around a similar figure as the Galaxy S10 when it was released last year ranging from approx $750 – $999. It has some very exciting features to offer, there are rumors that they may include:
- Sliding screen
- 108MP camera
- 8K video
- Holographic notifications
Samsung is also set to release a flip phone, yes a flip phone the ‘Galaxy Z flip’ however there has been a very mixed response, although flip phones were a huge success in their hey-day there’s been very little love for them since with many others trying to help them make a comeback. Maybe the Galaxy Z flip will finally be the one to do it, who knows. There have been images of the phone itself released by Samsung so you can check it out and see what you think. Samsung has released a flip phone previously, however, this one will be going head to head with the release of the Motorola Moto Razr. Will we be seeing Apple jumping on the flip phone bandwagon, probably not if they want to continue making such impressive profits but who knows they may be the next big thing (again)
Predictions of what could be coming from Apple in the future:
- iPhone SE 2
- iPad Pro
- MacBook Air
- Mac mini
- HomePod 2
- AR Glasses