Undoubtedly, Apple has created an incredible brand value among users with its strong mobile ecosystem and flawless nature of its products. But this time, the massive popularity of the device seems to be watered down. The product has continuously been losing its glory especially among teens. According to a recent survey report, a significant number of teens believes, “Apple is done”. It seems that the impact of Apple’s iPhone has cooled down among youngest Smartphone audience.
The survey revealed that the company has dropped several spots (or remained flat) in terms of brand value. As Apple’s iPhone 5 experienced several technological glitches including ‘suffgate’ and mapping app, some competitors such as Samsung and other have stepped their Smartphone business by offering innovative and cooled products at very affordable price tags.
This time, Samsung is quite aggressive with its Smartphone business, and it’s significantly targeting to youth demographic. The south Korean company has already spent millions of dollars over the past few months on their ad campaigns, proving iPhone is for old people (especially parents). In addition, RIM has also focused on youth demographic, and this is the reason why it has aligned with a few youth-oriented brands. The company is endeavoring to develop more BlackBerry-specific apps aiming at 16-20 year old youths. At present, Samsung is really a formidable competitor for Apple.
Is Apple Changing Its strategy With iPhone ?
Back in the day, before the launch of iPhone 5, everyone waited to hear what Apple would do next. As the company has launched number of products last year, the perception of users has changed. It’s true that Apple has revolutionized multiple spaces with its outstanding products such as iPod, iPhone and iPad. But what has happened with the company this time? There’s rumor about cheaper iPhone, expecting to come under $150 price tag.
However, before this, there were lots of rumors about iPad Mini. It was expected that Apple could launch low-quality inexpensive iPad. But what happened? The device was one of the company’s premium products, and it’s still selling well till date. Furthermore, the company’s products such as iPhone and iPad have failed to entice a wider audience in emerging markets. Still, there’s a massive opportunity for low-priced Smartphones and Tablets in these markets.
We should believe that Apple will launch slightly less expensive iPhone ( premium priced product) like iPad Mini in late 2013. The company has shown great success so far because it’s focused on selective products.
Apple Not Focused On Developing Cheap Products
In an interview, Apple’s Marketing SVP-Phil Schiller—refuted all rumors about cheap iPhone. Schiller stated that the company is not focused on manufacturing a less expensive version of Smartphone especially in emerging countries to grab market share.
Schiller said, “We are not like other companies, launching multiple products at once, then hoping one will get the attention of consumers.”
Apparently, Apple uses latest technology and high-quality components for developing new products. But the rumors say that the company could use less expensive parts like polycarbonate plastic, or recycled components with cheap iPhones. However, it’s true that a more affordable iPhone would fuel the company to compete with low-priced Android handsets in emerging markets including India and China.
Anyway, Android devices are popular among youths because those are less expensive, and having strong app ecosystems. With the launch of iPhone 5, there’s quite some negative buzzes about the device such as lack of innovation. Indeed, this time, Apple needs to focus on innovation (rather than cheap iPhone) in order to compete with its potent rival like Samsung, HTC and Nokia.