Product details

Few would have imagined that the most valuable company ($104.3 billion as of 2013) in the world, Apple, would be standing on the crossroads facing a peculiar dilemma in 2013. This Cupertino based company was witnessing shrinking market share and stiff competition from rivals offering low priced smartphones to the growing demography of budget buyers primarily in the emerging market. Apple had carefully cultivated an aspirational and premium brand image over the years and the dilemma was to either retain that image or to overhaul its premium pricing strategy with the intention of capturing the emerging market. Analysts and Apple fans were waiting with bated breath for the market leader's next move in order to offset dwindling market share in the emerging market and saturation of smartphone market in developed economies. While market analysts mulled over Apple's possible strategy to arrest plummeting market share, the company stunned the world on September 10th 2013 by launching not just one (as had been Apple's tradition) but two products, iPhone 5s and 5c. While 5s was essentially targeted at premium market, 5c was meant for budget customers. A mixed response followed the launch of 5s and 5c, with 'disappointment' being the primary industry sentiment particularly with 5c. Industry analysts felt that Apple had gone terribly wrong with 5c pricing as it was still premium priced as per the emerging 'market standards'. Analysts and Apple followers wondered whether the twin launches would translate into increased market share of Apple in the emerging economies. In addition to that, will it answer the much debated dilemma between market share and margins, between class and mass for Apple?