Why Apple is the main competitor of Apple

Resolutely high-end, sold for 1000 euros and more, the iPhone is aimed at a clientele that is relatively limited. As well, the new iPhone 11 Pro and the iPhone

Why Apple is the main competitor of Apple

Resolutely high-end, sold for 1000 euros and more, the iPhone is aimed at a clientele that is relatively limited. As well, the new iPhone 11 Pro and the iPhone 11 Pro Max, unveiled Tuesday night, will be marketed respectively from 1159 and 1259 euros. To the point of establishing a paradox: the biggest competitor of Apple... is Apple!

during The last twelve months, sales of the iPhone XS, XS Max and XR, launched in 2018, have registered a decrease of 26%, compared to the one of the novelties of 2017. But, at the same time, sales of older models, have increased by 12.1%, according to the firm Canalys. There is a simple explanation to this phenomenon: every year, Apple drops the price of iPhone of the previous year. For example, on Tuesday evening, Apple announced that the iPhone 8, initially released in 2017, would now be sold from 449 dollars.

consumers tend to turn to their phones the least recent, but also less expensive. This tariff policy with two speeds allows Apple to keep its position very niche, on the top of the range, with its innovations, while addressing a market that is a little wider, with the rest of its range. A product mix which allows it to display a market share of around 15% in the mobile telephony. A level that he needs to maintain to be at the height of its ambitions in the field of services. To develop Apple Music, iCloud, Apple TV+ , the group is in need of a wide base of installed clients. It is also one of the reasons why Apple allows updates on models older than five years. The most effective way to retain customers and turn them into subscribers to its services.

last year, the brand has elapsed 209 million smartphones. Its market share ranges between 13% and 15% depending on the quarters. This corresponds to the historical position of the group. Apple has only short incursions into the mass market, especially in the early days of the iPhone and iPad. Its shows connected, the Apple Watch, might be leader of its class, it remains a niche product. And it is precisely this register that the brand excels. The challenge for the future will be to maintain the cap. To seduce its customers, Apple has a major asset: its name and its ecosystem of services, which encourages its customers to stay loyal.

Updated Date: 11 September 2019, 00:00

Kathleen Lees

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