Apple Iphone: Life in the Technology Lane

Apple iPhone: Life in the Technology Lane

1. Apple CEO Steve Jobs alluded to the price a customer may have to pay to own an iPhone when he said that the steep and sudden price change was simply part of “life in the technology lane.” What did he mean? Beyond the simple exchange of money, what else might the price of such a product include?

Life in the technology lane can be defined according to Steve Jobs in the Apple website, as a “bumpy road”. This road will always be facing change, innovation, and improvement. There will always be early adopters who buy a product before a cutoff date and miss the new plus, new price, or new adaptation made to the product. For instance, if you are of the …show more content…

There would still be other cell phones that will try to match the iPhone or offer the same or similar innovations. The manufacturers had to consider the impact of offering a “new” product in a market of substitutes. Because of that, they had to be subtle with the price changes and had to set the right price for the perceived value that the customers would be acquiring from the product itself.

4. How do you think the relationship of price to quality affects how customers perceive Apple products?

Quality can be measured according to the ease of use, the versatility (or ability to perform multiple functions), durability, serviceability, performance, and ultimately, prestige. All of these characteristics are a base of what customers perceive for Apple products. Price, for that reason, must be related to what customers expect from the product. A high price will give confidence on the buyer, reducing any cognitive dissonance, and reassuring the consumer that what was bought was appropriate and for the right reasons. Using prestige pricing will offer them selectivity in the market they are incurring and will add the perceptions in the product’s prestige value and quality. You will expect Apple products to last longer, to be made of better materials, to offer multiple applications, to simplify the information in a simple easy-to-do way, to be reliable, and to be innovative. It is these characteristics what increase brand