Apple Inc Research Paper Example | Topics and Well Written Essays - 750 words

Apple Inc - Research Paper Example This pricing strategy has allowed the company to rule over the Smartphone and the Tablet industry for a long period of time. The company offers high end devices and fast gadgets to customers, and this is why Apple is able to charge premium prices from its customers. The company has not yet been required to change its static pricing strategy because of its strong and dominant position in the market. The company is also able to charge higher prices because over the years, it has established a loyal clientele base. Customers of Apple products are loyal to the company and they wait keenly for company’s products. This is an indication of the loyalty of Apple customers, and this is why Apple is able to follow premium static pricing strategy. Many of Apple customers are repeat customers, and therefore the company is audacious in its pricing strategy. Apple does not have to worry much about attracting new consumers because it already enjoys a loyal clientele. Customers will buy Apple product without taking into consideration its high prices because they are just used to Apple products. Apple faces strong competition from companies like Samsung, Google, Microsoft, Blackberry, HTC, and Sony. All these companies, especially Samsung, have been rapidly gaining grounds by introducing new and innovative products (Chen, 2013). For a long period of time, Apple enjoyed monopoly power in the Smartphone and Tablet industry, but the tables are turning. Google’s android operating system has also garnered customer attention. Android based apps have flooded the market which shows the popularity of this operating system. The above mentioned companies are also producing cheaper Smartphones and Tablets which have also made life difficult for Apple, at least to a certain extent. The company, although, is not falling behind its competitors, to a great extent, because of its first movers advantage and extensive