As Apple becomes the most valuable company (reach 2 trillion) in the world since this August, iPhone 12 is launched with 799 USD for 6.1inch display this October. MagSafe accessories are one of the big changes they have made, with new cases, wallets and chargers designed for iPhone 12 and 12 Pro. Built-in magnets allow for effortless attachment and faster wireless charging. Except for the magnetic charger for macbook and this new application, there are several other cases that magnet mainly performs. For example, camera motor and vibration motor also need permanent magnet inside, speaker magnet in Homepod mini and sensors etc.
The target market of iPhone is a group with relatively high purchasing power or opinion leader in a specific group, which allows Apple sets initial price higher than the average level of competitors, active marketing on internet brings the reversed trend that the quantity of demand becomes higher as price goes up when new version is released at first, running out of stock will accelerate the speed of demand increasing, in the end, guiding “crazy” consumers to be more involved with interactive activities related to brand loyalty creation.
Generally, Apple builds their customer loyalty through analyse demand, setting barriers, study preference and purchasing power of its consumers. Price strategy started from a higher price for the high-end consumer in inelastic demand, then the price cut after the launch of new releases will continue growing the sales revenue for the middle-level consumer in less elastic demand. At last, the lowest price for the previous version which can guarantee the normal profit will continue work with low-end group inelastic demand to maximize their profit.
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