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Pricing Strategy and Product Positioning of iPhone

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The iPhones are available worldwide through the Apple Stores or Apple website. However, Apple also made an agreement with telecommunications providers in the US, UK and other parts of the world as a way of distributing their product. Customers will sign a contract with Apple’ s partners as their service providers. As an added advantage to Apple, the contract will sway away customer complaints with network problems and focus on state-of-the-art hardware and software design (Mickalowski, Mickelson, & Keltgen, 2008). The iPhone customers in the US are required to commit to a two-year wireless agreement with AT& T to make calls or use the phone’ s data communications features.

In France, Apple tapped the resources of France Telecom’ s mobile subsidiary, Orange, to become the exclusive carrier in the country (Woyke, 2007). In the UK, the company struck a deal with Telefonica’ s mobile subsidiary, O2, as the exclusive carrier. With the rest of the world, the company had followed the US strategy of partnering with telecommunication service providers. The company has signed multi-year agreements with various cellular network carriers authorizing them to distribute and provide cellular network services for iPhones.

These agreements are generally not exclusive with a specific carrier, except in the U. S., Germany, Spain, Ireland, and certain other countries. In addition to the company’ s own iPhone accessories, third-party iPhone compatible products, including headsets, cables and docks, power supplies, and carrying cases, are available through the company’ s online and retail stores or from third parties. (Apple, Inc, 2009)Promotional StrategyMarketing promotion is a strategy that companies use to coordinate its many communications channels in order to provide information about their products in a clear, consistent and compelling message.

The goal of each message is to inform, persuade and reinforce the consumers’ behaviors, perceptions, and attitudes (Kotler, 1991).  

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