Proposal 1

Proposal

Name

Institution
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Introduction

Apple Inc. is an American multinational innovative and technological company based in

the U.S with its headquarters in Cupertino, California. The company designs develop and

supplies consumer electronics, software and other online products. This Company is considered

to be one of the most significant innovations alongside Google, Amazon, and Facebook. This

company produces other hardware products like the iPad, iPhone, iPod, Mac computers and the

Apple smartwatch. Apple has also ventured in software development. Some of its top software

includes the iOS and the macOS operating systems. These operating systems are restricted to run

on computers produced by Apple Inc. Other software includes the iTunes, Safari web browser

and the iLife.

The corporation transformed the digital music market through its iPod handy players and

the online store known as iTunes. As time went by, Steve Jobs became more interested in mobile

gadgets and devices. Steve Jobs had initially shown interest in venturing in the touch screen

technology by introducing PDAs and tablet PCs (Mac, 2010). However, he later noticed an

increase in the popularity and demand for multi-purpose gadgets. Some of the aspects Steve Jobs

wanted to combine in a single gadget were communication, music and internet access.

At the beginning of 2002, he realized that rather than carrying several devices like

phones, cameras and MP3 players around, consumers would prefer a single device that performs

all the functions of these devices. This motivated Steve Jobs to develop a new mobile device

product. He aimed at developing a transformational phone for future generations. This made him

spend over $ 150 million to come up with the initial device (Apple Inc., 2010). This innovation

and development were accomplished in partnership with another company known as AT&T. The

manufacturing and development of this revolutionary device were concealed from both
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competitors and the general public. All the associate producers and supplier partners were

undertaken through secrecy swearing processes. The developers too were not aware of the

product they were coming up with. Once the development processes were complete, Steve Jobs

decided to introduce the new Apple product in January 2007.

Purpose of the project

This project will evaluate the changes in price of apple in the market. It also evaluates the

company in terms of its history highlighting major events since its established, external and

internal environment, review of literature in regard to changes in price of apple at the global

market among others.

Part One

History of the Apple Company

When was the company established?

How did the company become successful?

Changes in management

Strategies used by the firm

Overview of the company’s market

Environmental analysis using SWOT model

Environmental analysis using PESTEL model

Part two

Review of literature on the changes in the price of Iphones.

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Financial statements analysis

Global demand for iPhones

The pricing strategy of the iPhone

Demand, supply, and pricing and their impact on the market

Part three

Conclusion

Recommendations
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Bibliography

Apple - 39 Year Stock Price History | AAPL. (n.d.). Retrieved from

https://www.macrotrends.net/stocks/charts/AAPL/apple/stock-price-history

The macro trend chart provides analysis of the stock prices and changes in a period of 39

years. It gives historical charts and data that is adjusted for splits. This will provide

information on the changes in prices of various brands that is critical in substantiating the

hypothesis and study objectives.

Apple Inc. (2010). Revised Request Quarterly Income Statement[R]. Retrieved,1(25)

The company’s quarterly income statements gives a comprehensive cover of the income

generating centers of the company and segments. This data is important in understanding

the effect of prices on the revenue that is generated by the company. it will be used in

carrying out quantitative analysis which is a critical part of the literature review.

Boone, L. E., and Kurtz, D. L. (1992). Contemporary Marketing. 7th Edition. New York:

Dryden/HarcourtBrace.

Boone and Kurtze provides a comprehensive coverage of what is marketing and various

components of marketing strategies. In this book, they capture changes in consumerism

and demand for various commodities in the market such as mobile phones. This book will

give a theoretical grounds and set the basis of argument to support the research hypothesis.

Clifford, T. (2019). Costly phones, innovation and a saturated market snowballed Apple, analysts

and investors say. Retrieved from https://www.cnbc.com/2019/01/03/costly-iphones-

innovation-and-market-saturation-doomed-apple.html
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In this article, Tyler Clifford raises major points that are important in this research. He

argues that the problems facing Apple Company are derived from pricing mistakes and

economic issues. He quotes the words of Apple bull Munster. Further he notes that

acknowledging the problem is paramount before fixing it. The consumers take a second

look at the expensive iPhones and innovation before executing purchase. This article is

important as it gives some of the insights that will help in determining whether iPhones are

overpriced or underpriced in different global markets.

Eric Lai. (2010). Apple iPad Versus Netbook: Features Compared. PC Advisor, United

Kingdom,1(28).

In this article, Eric analysis the similarities and differences between iPad and Netbook. He

points out key areas such as effectiveness, efficiency, ease of use and display properties

that makes it attractive to the consumers. This is an important determinants of the phone

prices. Pricing is based on the properties that are present in a given commodity. It will

therefore help in understanding how pricing is done by the company and the key drivers of

the company.

Hao, L., Guo, H., & Easley, R. (2015). A mobile platform’s monetizing strategy for advertising

under agency pricing for app sales. Working paper, Notre Dame University.

In this article, Hao, Guo and Easley explains monetizing strategies that are used in various

applications. They evaluate the market conditions under which owners can benefit by

subsidizing the development of applications. The applications contained in a mobile device

is one of the main factor used in pricing it. This article will help in evaluating how Apple

Company uses the apps present in a mobile phone to price its products.
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Johnson, K., Li, Y., Phan, H., Singer, J., & Trinh, H. (2012). The Innovative Success that is Apple,

Inc.

Johnson evaluates various successes achieved or made by Apple Company to date. He

deeply focuses on the strategies and techniques applied by the company in achieving its

success. This article will be used in accessing and evaluating various strategies that are

used by the company. It will also be the basis of establishing and making recommendations

to the company.

Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external

environment of Apple Inc. International Journal of Economics, Commerce and

Management, 3(6), 955-961.

Khanm, Alam and Alam undertakes a comprehensive review of the external and internal

environment of Apple Company. They use SWOT and PESTEL models to demystify the

operations of the company. They also use porter’s model to explain threats and bargaining

strengths of various market players. This research uses this information in developing

company’s background and setting the foundation of the paper.

Kotler, P., & Armstrong, G. (2010). Principles of marketing. Pearson education.

Kotler and Armstrong addresses various tenets of marketing beginning from the basic

definition of marketing. They sets out various development in consumer’s attitude and how

they affect the pricing of commodities. This book is critical in accessing the marketing

strategies used by Apple Company and how they relate with the pricing of goods. They also

provide a theoretical understanding of business environment such as internal and external

and how different models are used in examining its effects.

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Niu, E. (2018). How Apple's 2018 iPhone Pricing Could Impact the Business. Retrieved from

https://www.fool.com/investing/2018/09/13/how-apples-2018-iphone-pricing-could-

impact-the-bu.aspx

In this article, Niu explains the effect of iPhone pricing on the businesses. Apple Company

has tactfully been adopting new strategies of marketing which include changing the prices

of its phones. This strategy has various effects on businesses which are well explained by

Niu. He takes a holistic view of the industry and lays strong emphasizes on key successes

and shortcomings of the strategy.

O’Brian, Kevin J. (2007). “Apple’s iphone Fraces Uncertain Future in Europe, Analysts Say.”

International Herald Tribune, July, 5, 2007. http://www.iht.com

Kelvin in this article explains the future expectations in the prices of phones in the phone

industry. In his argument, he explains how Apple phones faces uncertain future in Europe

which is owed to change in lifestyle and competition. This article will be used in explaining

the factors responsible for the changes in prices of apple and also explain the future

expectations.

Rubicon Consulting (2008). “The Apple iphone: Successes and Challenges for the Mobile

Industry.” A Study of iphone Users.

http://rubiconconsulting.com/downloads/whitepapers/Rubiconphone_User_Survey.pdf

The article explains various challenges that are faced by Apple Company. It evaluates

strategies that the company has adopted to overcome the challenges and major milestones

achieved by it. This article will be used in explaining the environment under which Apple

operates and how it affects the prices of its products.

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Sliwinska, D., Ranasinghe, J., & Kardava, I. (2008). Apple’s Pricing Strategy. unpublished. Paris-

X Nanterre.

This article explains various pricing strategies used by Apple company in different markets.

It is important in evaluating the price of its products and how it changes across its

consumer market.

The Sun Herald (2010). Apple Launches iPad[R]. Retrieved, 1(27)

This article provides information on the brand launch and how prices are set. The article

gives an inner and more comprehensive analysis of the company in terms of strategies it

uses to lure consumers and purchase its products.