Apple, the iconic technology company, has continuously captured the cell phone market with its new and innovative features, products, and services. This iconic brand status has allowed them to maintain higher prices for the higher-quality products. However, the competition is quickly able to copy and then enhance new technological innovations, and is doing it at less-expensive prices than Apple. This has caused a shift in the cell phone market, and Apple is losing share. This marketing plan will identify and plan for the release of Apple’s newest product, the iPhone 5s, in domestic and international markets.
Situation Analysis Market Summary The target markets for iPhone 5s are the established and loyal Apple users, middle to upper income individuals with disposable income, those who like to have fun with technology, music fans ages 12-35, and professionals in media, design, and information technology (IT). Market Needs The target market requires new technology to keep them interested in a product. Faster processing speed, useful apps and features, and cutting-edge technology are features the market needs to be lured away from the competitor.
Apple has made improvements in processor speed, camera resolution, and added security with a fingerprint-scanner that can unlock the phone with just a touch. A new feature, the "A7 Motion co-processor" chip, can track motion data continuously without heavily draining the battery. The chip opens the door for the iPhone to better track sports and fitness-related user activity. Market Growth Apple’s share of the market has slowed in the last few years as the sales of the Samsung Galaxy have taken market share. The market is numb to new cell phones.
Now Apple hopes a “bigger emerging-market presence can help reverse a 29 percent fall in the company’s share price since it hit a record high of $702. 10 a year ago” (Gupta, 2013, para. 19). The selloff was fueled by fears of slowing growth and a perception that Apple’s ability to innovate and shake up industries was dwindling. In China, Samsung is still the number one selling cell phone, with Apple only having about 8% of the market share (Kan, 2013). It would take significant innovation to begin to win the market share in China.