Abhijeet Pratap

Aug 24, 2020

14 min read

Iphone 11 Marketing Mix

Introduction:

iPhone is the line of smartphones sold by Apple. The iPhone is based on Apple’s iOS operating system. It is the core product of the company accounting for the largest part of its revenue and net income. A lot of good news followed the release of the iPhone 11. Apple shares hit an all-time high of $237.64 per share in October 2019 compared to the last highest of $233.47 per share in October 2018.

Product:

iPhone 11 is the latest in the line of iPhones. The product has been launched in three variants — iPhone 11, iPhone 11 Pro and iPhone11 Pro max. The basic iPhone 11 is equipped with dual-camera whereas the iPhone 11 Pro and Pro max come with triple cameras. There are several more features that the iPhone 11 comes loaded with and which makes it the most efficient iPhone. The iPhone 11 has a better battery life than previous models; the highest of all the iPhones released till now. The battery life of the iPhone 11 Pro max is five hours higher than the iPhone Xs Max and the iPhone pro gives a battery life which is 4 hours higher than iPhone Xs. These phones are also equipped with a smarter chip — ‘A13 Bionic chip’ — which is more efficient and performs faster than the last A12 chip. While it is faster and smarter, on the one hand, one the other it is also 30% more efficient, meaning it consumes less power compared to previous chips. This is also a reason behind the longer battery life of the latest iPhone 11. The A 13 bionic chip with next-generation neural engine makes the iPhone the best smartphone in terms of performance.

Place :

Apple is headquartered in Cupertino, California, United States. However, the company has managed a strong global presence through local production facilities, R&D facilities as well as a global sales and distribution network that spans the entire world. Apple’s supply chain network is also spread globally. A large part of its hardware and components including the iPhone is manufactured by outsourcing partners located primarily in Asia (Apple Annual Report, 2018). Moreover, a significant part of the production is concentrated in the hands of a small number of manufacturers who carry out the production mostly at single locations. Apart from that, the company has outsourced most of its transportation and logistics management. These factors have reduced the operational costs of the company but also reduced the control over the making of its products that Apple had in its hands. Most of Apple’s iPhones are produced in China.

Price :

In terms of pricing, Apple’s most products come with a large price tag. Apple is well known for its premium products and premium pricing strategy. However, the reason behind the premium pricing strategy is not mainly to influence the higher-end customers. These products are great in terms of performance and overall user experience. Each iPhone or Mac user is familiar with the wide difference in the experience Apple products offer and those made by its rivals do. While there are several competitors of iPhone currently in the market including those made by Samsung and Huawei, Apple focussed upon performance and efficiency as well as simplicity and delivering full value for every penny that the customer was paying. However, this time Apple’s focus was also on strengthening the iPhone experience and creating something that was simpler but a lot better than any previous version. Asian Nikki Review has termed Apple’s pricing strategy for iPhone 11 as a budget-conscious strategy. Prices start from $699 only. However, apart from great screens, the iPhone 11 also offers a lot more which the Apple customers have been expecting from it. The pricing strategy of Apple was targeted at two things — one was retaining customers in the emerging markets and that’s why it did not price the basic version very high. The second was to attract and retain the customers from the higher end segment who wanted a smartphone with superior performance and entertainment features. It is why the company released three versions of the same phone.

Promotion :

Tim Cook has worked hard to get the iPhone 11 the reception it deserved and apart from the regular channels of promotion, this time there was a somewhat higher emphasis on social media and television promotions. Apple CEO combined paid Twitter promotions with his own active promotion of the iPhone 11 through his own Twitter account to engage Apple fans and followers on one of the social media networks offering the best tools for real-time engagement.