Chapter 11: Developing and Managing Products.

            In the Diffusion of Innovation Apple in the electronics market are the Innovators. They are always on the cutting edge of technology coming up with new concepts and ideas. Apple consumers joke around saying that if they where to buy one of their products they are going to release a better more efficient product in six months. The company seems to be obsessed with their market it is never enough for a company like apple, their approach to their products is to satisfy the need for an ideal product. Steve Jobs and his production team try to make products that they would like to see on the market. There seems to be no limit to Apple's creativity their leadership is seen in the other companies. A lot of companies seem to be playing catch up to Apple's products if they do not adapt to the new technology that apple is presenting to the market failure seems to be inevitable. For example in reaction to the iPhone 4's face time, Sprint released the HTC Evo 4G phone. This phone offers a program similar to the iPhone 4's face time but unlike the iPhone which can only do face time over a wifi connection, the HTC Evo 4 can do "face time" over a 4G network. This is an example of the Diffusion of Innovation Apple created face time and HTC created a similar function but with an alteration that the iPhone 4 does not have.

The Beatles Arrival on iTunes

On November 17 Apple and Apple corps finally came to an agreement on distributing the Beatles's music. And it seems the sensation that was behind the Beatles in the 1960's  has not died down. In the U.S sold more than 450,000 albums in their first week. They also sold over 2 million singles all around the world the albums where priced at $12.99 and singles where sold at $1.29 each. The most popular album was Abbey Road and the most popular single was George Harrison's "Here comes the sun". Apple's total revenue for last week topped 8 million dollars. Apple is taking full advantage of the Beatles by offering an app that shows people how to play Beatles songs. The app is called iVideosongs  and it is priced at $4.95. The Beatles music stands the test of time by still being a highly profitable band even though they broke up in the 70's.

Black Friday 2010

                                                                   After The Storm


 Apple seems to have won the title of Black Friday. Apple offered 5%-10% discounts on several products. Consumers that took advantage of the Black Friday madness saved $101 on Mac's including the iMac, MacBookAir, and MacBook. They also saved $41 on the iPad and iPod touch, and $21 on the new iPod Nano and all orders had free shipping. With Apple products being valued as high quality and cutting-edge consumers took advantage of the savings. There was a huge increase in sales which is a good indicator of the holiday shopping season. Sales figures where not released but the iPad and the 11-inch MacBook Air where the top selling products this black Friday. The sales rates of the Mac's where about 8.2 an hour and the iPad had a strong sale rate of 8.8 iPads sold per hour. Although times are hard all over consumers are taking advantage of the sales of the season foreshadowing great success in the upcoming Christmas season.

Customer Relationship Management

I feel like my posts have been all leading up to this blog post. What we as a class have been doing is a part of customer relationship management we all have been writing about our company of choice. Meaning that the company that we have chosen is one that we are loyal to and are willing to write about it because we have some level of admiration and loyalty to the companies. Apple is my company because they are a easy company to write about. They keep on evolving and succeeding as times go on when apple releases a new product the world knows because it is everywhere in the media and it will be a part of the media as long as they do not release a new one. They have quality products which is a great reason why they are so popular all the media attention that the products receive is deserved. Apple is portrayed as a fashion statement in the electronics market, they do not have as many apple users as they have PC users but thats another reason why its so successful its a breath of fresh air in the stale PC overruned market. Apple is in short is easy the products they make are easy to use and deliver their purpose, by providing quality products and software the consumer does not need to stray away if they don't want to. The apple consumers dont need to even buy apple products in the mix of other products because there is the apple store where everything apple is under one roof. And if anything is wrong with your apple product you can get it serviced at the genius bar where the helpful hipsters at apple repair whatever damage is there to be dealt with. Apple creates loyal customers by providing them with a quality product and quality service on top of a unique experience that separates the sheep from the flock.  

Why is apple so successful?? What is their competitive advantages in the electronics market?

First and foremost the main reason why I am blogging about this company is because of the man in the picture, Steve Jobs. Apple had a very rough start and failed many times but Jobs is one smart business man he knows how to market his products and how to accommodate them to the target market. Jobs is a marketing genius with a wide range of memorable commercials like the 1984 commercial, the Mac v.s PC commercials and the dancing silhouettes. The advertisements are catchy entertaining and they usually get good feedback from the public. Another thing about apple is the design of their products look at them be honest they are easy on the eyes they are trendy and command attention. Jobs design team strategically put the apple logo facing the prospective buyer glowing commanding attention differentiating themselves from the competition. Look at the competition in the matters of design apple products are clean understated and sophisticated on the other hand the PC's have a wide range of products but they are all similar although they all have different manufacturers, they lack the style that apple possess. Apple is also a very innovative company always steps ahead of the competition this works for and against the company because it has consumers wondering what will happen next. This is also discouraging to prospective buyers because they fear that the product would be outdated in 6months.

But the products that they put out are so close to perfect that it is worth the money. This also creates consumer loyalty because the features seem to be never ending as the company goes along. The products are a little pricey for the lower income market but it is easy to overlook the price when you are getting high quality products like Apple products. There are reasons why there are people waiting on line for insane amounts of hours for an Apple product to be released.

White Box phones take lead in global market.

White Box electronics: In computer hardware, a white box is a personal computer or server without a registered brand name. For instance, the term is applied to systems assembled by small system integrators, and to homebuilt computer systems assembled by end users from parts purchased separately at retail.  

You really don't get to see much of them in the American market but globally they are pretty common. White box handsets accounted for 33 percent of the 417 million cellphones that where shipped in the third-quarter. The white box handsets grew 35 percent from the previous quarter. The phones are mainly shipped out to countries like Africa, India, Latin America and Russia. Providing similar functions as the phones that are being copied at a lower price. Which in countries like Africa, India, ect  has alot of value because they provide the need for American products. Where in other countries "American" products are over priced. This is not a trend that will come and go as financial situations get more and more complex there will be a demand for white box electronics. 

The evolution of the iPhone

iPhone(original):Released June 29 2007, with the storage capabilities of 4gb,8gb,16gb  It cost Apple inc. 150 million dollars to develop the phone over a thirty month period. It introduced the innovative multi touch screen removing the keyboard. Having only five buttons and a chrome plated metal frame. And a 2 mega pixel camera. It was using AT&T's EDGE network. Selling 700,000 its first weekend at a hefty price of $599.00 for a 2-year contract. Apple made profits the first weekend. Time declared it the invention of the year in 2007.

iPhone 3g: Released June 9 2008, having storage capabilities of 8gb and 16gb. Made with a plastic polycarbonate casing giving the 16gb an option of white or black. The LCD screen was made scratch-proof designed for bare fingers and multiple fingers for multi-touch sensing. The camera was also 2 mega pixel without zoom, recording, flash or auto focus. The 3G ran on EDGE and 3G allowing turn by turn navigation with  maps. Selling one million units over the first weekend although the poor reviews. At a price of $299.00

iPhone 3Gs: The new features on this June 19, 2009 iPhone were mostly internal as you can see the s in 3Gs is for speed as there were complaints about the performance of the 3G. Selling 1 million units its first weekend it was a definite successor. With the storage capacity of 8gb, 16gb, 32gb. The camera is 3 mega pixel featuring auto focus, auto white balance and video recording capabilities. The iPhone 3Gs also featured voice control, Magnetometer, Color inversion, and Text zoom. Failing at the battery life and overheating complaints it was still a successful take on the iPhone. With a lower price of $199.00.

 iPhone4:  Released June 24 2010 selling 14.1 million units since then the iPhone 4 is nothing less of remarkable. With a storage capability of 16gb or 32gb running on a 3G network. With a LED lit LCD screen improving battery life and following Apple's green agenda. And it is marketed with a retina display meaning at a distance of 12 inches it produces the most detail the human retina can process. The iPhone 4 features two 5 mega pixel cameras one in the front and one in the back. The one in the front is for Face Time where people can chat face to face over Wifi connectivity. And the camera that can record HD videos in 720p with a LED flash light. The most noticeable change is the design which Johnathan Ive re-designed with chemically strengthened alluminocilicate glass covering the internal components. With a stainless steel frame that serves as an antenna. There was a problem with the antennas in the phones creating an uproar with the customers as they where loosing reception. So Apple responded with a case program that gave out free cases for customers that where loosing signal. Although there was some animosity against apple for the signal problem it was still ranked highest among smart phones in numerous electronic magazines. 

 

The rumors are appearing to be true.......

It was written on fortune magazine online on Oct 29. The dreaded Verizon iPhone is real and will be shipped early 2011. The iPhone has been configured to Verizons CDMA network. If verizon releases the iPhone on their 3G network which in theory is slower than AT&T's it would be a useless move. Because the market for 4G is growing and if Verizon does not take this into consideration it will be a factor on their downfall( I hope it happens). I am a satisfied AT&T customer of 8 years and although there is basically no difference in the service I never had any other cellphone service provider and I do not want to change. And another damaging detail in this move is that the first version of the phone will not be able to work out of the U.S. To me this is an enraging concept because look in the world we are in where everything is at your fingertips and a trip to china is as easy as around the corner. If you are purchasing a product you should be able to take it everywhere you go and it should be fully functional. The world is too small nowadays to attempt such a poor concept. I say to Verizon to get their features up to date before doing anything at all, Dont be a follower be an innovator because its survival of the fittest and in a cut throat world we live in any mistake can be damaging your company.

Week 18 Sales promotion and personal selling

          Many companies have interesting promotions to increase sales. Apple for some reason or another does not attack as aggressive as other companies. I believe that apple is very confident in their products and marketing strategies.For example Apple has an annual back to school sale where those who buy a new Mac they'll receive a free iPod touch (with electronic proof of purchase). This promotion proves to be effective as sales increase as the promotion is out. It attracts college students with a iPod, with the purchase of a Mac giving the consumer a premium. And the promotion is aimed to create consumer loyalty with gifting the consumer with a iPod making them feel the need to be loyal to the company since they have to use the computer often for school work and if they are satisfied with the product they will not wander off into another company. Apple also offers a discount for students and faculty  from 5%to 15% it is a great way to promote their products by investing on those who are getting educated and are depending on the products.