With its next-generation iPhone, Apple wants to turn it into a much bigger player in the mobile-phone market. In order to do that, the CEO cut their price for the entry-level iPhone to $199 which is half that of the previous edition and right in line with what competitor's high end phones cost. This strategy of lowering prices was made to attract new customers, especially those who had been turned off by the higher price. Apple knows that everyone wants an iPhone, that's why they had to make it more affordable. Besides the lower prices, they are boosting the speed at which the iPhone can pull in e-mail and other corporate data making sure it works with programs used in corporates. They even opened up the iPhone so that outside software developers could create their own programs for the device.
Apple sees Reasearch in motion, the company behind the Blackberry wireless devices, as a standard for this market. They already have a huge lead in the market offering corporate customers several capabilities that Apple can't yet match. RIM has spent years developing capabilities that corporate tech managers want, but Apple doesn't have all the tools that RIM has built up over the years.
In my personal opinion, Apple is in the right path doing really well in everything they do, including the pc and software market as well as the mobile phone market. They have such a good brand image, that can't be hurt even when prices are lower which is necessary to make their brand more popular. I think they will catch up to the RIM company over the years and getting the experience and tools they need to do so. Apple is seen as a company of innovation and differentiation, which is an image gained by their products. I am sure their development will keep innovating more and more their products and give more satisfaction and comfortability to their products.
20600642 Entry #14
