Jim Monaco, IT and Education specialist, says it is very difficult to understand why iPhone is selling so much compared to its competitors. Data show that Android owns 81% of the market share versus only 15% in iPhones. Still, it is very difficult for an Apple customer to switch to another brand and buy a product that does not have the famous fruit printed at the back. Is it maybe just question of loyalty?
Consider the PC market: Microsoft owns 90% of it while Apple less than 10%. Microsoft spends a hell of a lot of money to advertise, owning products such as Xbox, Surface tablets, and new Internet Explorer. On the other hand, Apple mostly promotes computers. Since they are less popular in the emerging economy nations, they have to maintain and, in some case gain that brand recognition that has made them so popular elsewhere. For this reason, they advertise more than their competitors.
It is also a question of a trend. To own a iOS device has become a status symbol, like owning a luxury car such BMW, Mercedes or Audi. No matter how smart other phones might be, an Apple iPhone makes the difference when it comes to perception. This is not only the case of a mass adoption but also of those who can afford to spend $ 1000 on the latest Apple smart device.
I am not a technological person and I don't know much about mobile devices or brands. If you talk to me about Google Android I don't even know what it is, but when it comes to iPhones I know exactly what they look like and all their functions. This because I am an iPhone user and I truly doubt I will ever switch to another phone. Like me, many other Apple customers will find it difficult to leave such a smart product which is very easy to use and extremely intuitive.
So what is Apple winning formula? To start with, just the look of its latest product pleases the eyes being so elegant and well finished.
It is innovative and can turn dreams into concrete things. We have all read about the iPhone 10th anniversary which will bring a new look, a new display and a new camera to the world's most famous phone. With a selling price of $ 1000, the new iPhone is supposed to overcome Apple's growth problem for the past 2 years. When it comes to brand loyalty, existing customers will not go for a new product or consider switching to other brands even if they launch interesting devices. They will stick to the bitten fruit holding their existing phones for longer before upgrading to the new expensive one. For this reason, Apple has decided to charge more for its new devices rather than relying on the unit growth.
Let's face it: Apple sells dreams and these dreams might turn into a different category of tech, which is much more than an expensive new accessory! Consumers will invest their money in a product that is a long-term expenditure since long-term contract are no more available. Moreover, the new iPhone components are far more futuristic than anybody could expect. The new OLED curved display, wireless charging, the depth-sensing camera, the face recognition to unlock the device, and the inexistent home button are just a few of those. All this bits and bobs together make the new iPhone worth $1ooo which is not exactly affordable to the most. According to a survey by Creative Strategies and Survey Monkey, 21% of customers do not care about the price of the new phone. 33% though say they will not upgrade to the more expensive and sophisticated version.
We all know that Apples loves its trusted customers, therefore, they are ready to give them different option segmenting the market with different versions of the same phone following very clever pricing strategies . This happened in the past with the many versions of the iPhone 5 which included a cheap C version and the most expensive Plus with 256GB of memory for the so called earlt adopters- . Thanks to monthly payments, even the most expensive phones can be purchased by the most. As the Product's Life Cycle states, when a product goes eventually through its maturity phase, the price lowers. For this reason other iPhone users prefer to sell their old phones on eBay the day after the launch of the new product, to afford the expense of the new product.Data show that the iPhone 6 sold ten million pounds on the second-hand market within 90 days of the iPhone 7's release!
Jobs once said it was rare enough for a company to revolutionize even one product category. Funny enough he managed to revolutionize three, including the computer world with Mac and music with iPod... 10 years ago he invented the phone that was a must have that has become today a truly luxury accessory, a magical product we cannot live without. Apple has managed to revolution the idea of the mobile phones turning their consumers into an almost elite club we all want to be part of.
1. Jim Monaco, Why
do Apple products like iMacs, iPhones, and iPads sell so much more than
products like PCs, Android phones, or Android tablets?
- Quora.com (15th August 2015);
2. Tim Bradshow, Apple tests customer loyalty with $1,000 iPhone, The Financial Time (10th September 2017);
3. Matthew Field, Why now is the best time to sell your old iPhone, The Telegraph (17th Spetember 2017.