Wednesday, September 25, 2013

Apple Doubles Down On Two Market Segments

Smartphone developer counters BlackBerry with its own dual release

for RonnTorossian.Blogspot.Com on

As rival Samsung continues to gobble up worldwide market share, US-based Apple ups the ante with the release of the latest version of its celebrated iPhone. Well…versions.

Until this point one of Apple’s trademark mobile marketing plans has been a “take what we give you” approach to consumer sales. Of course, that’s hardly an issue when your market loves what you are doing.

iPhone 5 Lines in front of the Apple Store in NYC
Enter the Samsung Galaxy. This smartphone came on the scene as the first real contender to the iPhone in the consumer smartphone market. Neck and neck, the two brands battled on the world stage, both mirroring the other’s market strategy. Limited choices and easy integration with other mobile products.

Then BlackBerry announced that it would try to dig itself out of an “also ran” hole by streamlining its product line and splitting its market plan. And wonder of wonders, Apple blinked.

Enter the latest iPhone, an updated version that includes two price points with a $100 difference. The lower priced market is clearly aiming at the professional or executive market, where success might be a death knell for BlackBerry. And the lower-priced model puts the iPhone on the same affordable playing field as the average low-tier smartphone for the first time ever.

5WPR founder and CEO said this move may just be the decision that puts Apple on top for good. “Taking on two market segments simultaneously is nothing new for Apple, but they've always sort of treated the iPhone as an upper-tier offering. No sales, few deals, and never apologizing about the relatively higher price. This new iPhone is clearly Apple’s first salvo in an attempt to dominate all market segments.”

From a public relations perspective this decision is a win-win for Apple. The iPhone has reached iconic product status in markets worldwide. People who have always believed the iPhone was out of their price range now have the chance to own one.

Plus, those who are accustomed to paying more for the added service and features of the iPhone will appreciate that the higher-tier phone is still available.

“At the end of the day the iPhone is still a status symbol for some people. This was Apple’s challenge when making the cheaper phone, but they met the challenge by making the two product offerings as different as night and day. People can still tell, at a glance, which iPhone you prefer.”

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