Why is Apple launching a mid-range smartphone?

03/06/2020

Angela de la Vieja

The Apple brand has been easily recognisable everywhere since it first hit the market with its innovative products. It’s always been perceived by consumers as a luxury brand that sells high-end products. The innovation offered by each of its products is the differentiating characteristic that has allowed Apple to set such elevated prices, giving off an image of high quality and exclusivity since not everyone can afford its products.

On April 17, Apple released a new smartphone: the iPhone SE 2020. The curious thing about this new smartphone is that it’s not as expensive as the majority of the models the brand currently offers. This time, they’ve opted for releasing a mid-range model at a more affordable price. With a launch price of just €489, this is currently the lowest-priced terminal in the Apple catalogue.

Why has Apple changed its strategy?

In 2016, the company released its first mid-range smartphone, at the same price as this new model. With this launch, the company already showed a certain intention to dominate this niche in the market, which had always been dominated by its competitors. Although this product was received quite favourably by consumers, the brand continued to release new high-end models with the latest technology available on the market.

Recently, different phone brands have been releasing high-performing smartphones at higher-than-normal prices to try to compete with this giant. And it’s at this moment that, while some go up, Apple has decided to go down with the launch of the new iPhone SE 2020, returning to the mid-range market and significantly improving on the performance of the previous model with its cheapest iPhone. Thanks to this move, Apple has responded to the continuous attacks from the larger manufacturers in the sector and has released a new and powerful tool, which will certainly grab the attention of all of its competitors.

But, the main motive behind this launch is to encourage sales in a time of crisis. The pandemic has changed many things, including consumer buying habits, among others. Apple wasn’t going to stand idly instead of fighting for its share of the market. The company’s sales dropped by almost 40% in February and it doesn’t have very high sales forecasts. This is why it’s had to reinvent itself: to attract more customers to Apple services, a growing source of revenue, and thus conserve its place as a market leader.

11/11/2022

Consumer behavior: How can behavior tracking be effective for setting the right pricing strategies?

Behavior tracking is becoming massively popular today. As a result, pricing strategies born from studying consumer behavior are a merchant's dream come true. If done right, it can conquer every market for the business quickly. With abundant data available, the strategic makeover of the pricing models is becoming easy for companies.

What is behavioral tracking, and how is the data beneficial in pricing?

For a quick understanding, behavioral tracking refers to gaining in-depth knowledge and insights into consumers through their web data. Their browsing habits, spontaneous decisions, shopping interests, and preferences come under behavioral tracking.

How can enterprises use customer behavior data?

Companies can use customer behavior data as a tool to strengthen their hold on the market. A customer’s preferences, values, and tendencies allow businesses to work in sync with them through the collected data. Apart from this, customer behavior can also aid in:

Tailoring customer needs for customer retention

Personalization is becoming the heart of a company’s growth. No matter in which area an enterprise is functioning, tailoring the services, products, and solutions is becoming increasingly crucial. Uniqueness and personalization attract the crowd like no other.

Increasing the overall value

One of the best ways customer behavior data affects a business is by upgrading the value of customers for the business. The customer’s characteristics allow the company to target the people that match the business prospects well.

Optimizing every type of content

Everything that is up for digital display requires content. You must have seen companies unveiling their products or services through advertisements and making the initial public appearance. Two essential sales strategies – upselling and cross-selling comes through content optimization.

Pricing Strategy

Last but certainly not least is the influence of customer behavior data on the pricing strategy. The pricing strategy essentially constitutes content derived from data analysis. Companies need to have a dynamic approach to the pricing system to attract the right customers.

17/02/2015

Saint Valentine’s Day, always a good opportunity

V-Day is looming, a long-awaited date for all and also a good occasion for the eCommerce. According the study conducted by Prosper Insights and Analytics, it is forecasted the average consumer expense that day will be the highest in last years. Furthermore, 25% of them will buy online, which means an increase of 4% regarding 2014 (The US department of Commerce). This is, therefore, a key date where market competitiveness increase and which could be assumed as a big opportunity for our business or, a big fail if we do not adopt the correct strategies.

How to turn this event into an opportunity? To achieve this goal, we need to adapt our prices to this hostile environment, i.e. we need to develop an appropriate Dynamic Pricing strategy that allows us to adapt our prices to the variations produced in supply and demand and to position us ahead of our competitors. In V-Day, the frequency in changes will be higher, carrying it out each hour or even each minute. It is estimated that 65% of leader retailers have the ability to respond quickly at these variations, such Amazon. For this reason, it acquires great importance the correct use of a software specialised in price motorisation of competitors. Do not miss the time and adapt your business to new adversities.

28/12/2022

Which are the best footwear marketplaces to sell on?

Footwear marketplaces are booming. The last decade has seen the launch of new specialized marketplaces with millions of different users. Among them are Spartoo, Sarenza and Farfetch, portals with international reach. Their main value is that they unite hundreds of footwear brands, as well as offering clothes and accessories. Although each has its own characteristics, they are all vertical marketplaces, i.e., they focus on a specific area, and their sales categories are interrelated. For sellers, these portals provide an opportunity to expand sales channels and drive the globalization of their e-commerce business. We explain how to sell on these footwear marketplaces so that you can assess whether they align with your plans for the future and then start defining a possible pricing strategy.