Iphone 5C price decision Essay

The fist factor that important in the pricing decision of iPhone 5C is by considering costs. For instance, since Apple Inc. wants to maximize its profits through establishing new products, the price should be set at the point where marginal revenue equals to marginal cost. We know that iPhone 5C is in the perfectly competitive market, the company can reach its maximum profit at equilibrium at X* and P*. To determine the price, Apple Inc. needs to do the marginal analysis. According to profits (Ï€) equals to total revenues (TR) minus total costs (TC), which is Ï€=(P*X)-(fixed cost+variable costs per unit *X), X is the number of units sold by Apple Inc. Of course, manager needs to ask several departments and contractors to know the cost of their product and services. From online websites, I get to know that producing a 16Gbyte iPhone, total BOM and Manufacturing Cost is about $173.45, for a 32Gbyte iPhone 5C is approximately $182.85(which accounts only for hardware and manufacturing costs and does not include other expenses such as software, licensing, royalties or other expenditure)(Andrew, 2013). The manager can differentiating the fixed costs and variable costs based on cost behavior, and plug those numbers into the equation and get an equation between Ï€ and X. then differentiate the equation and set it to zero, the manager can get the number of units when profit maximizing. Finally, plug X into assuming demand function, the manager can get the price and make a decision. But, in the real world, it is not easy to implement the marginal analysis method. So, managers usually try to combine cost-based approaches and market-based approach to make a profit satisfying approach, for example full cost-plus target profits, variable costs-plus percentage markup can both assess to pricing decision. However, the common and basic factor for the methods is costs. The second factor that important in the pricing decision of iPhone 5C is product line and competitors. Strategy analysis is the company needs to consider about the Competitors as well as the whole industry, and then assess to firm’s plan. We can figure out that the competitions in the smartphone market are quite intense, there are numerous competitors and are almost equal size, such as Samsung, Microsoft. So, Apple Inc. has to investigate the cost leadership and the unique producers in order to make a competitive price in the smartphone market. The website take the example of Moto X, which has 18 kinds of colors and the functions are really similar to iPhone 5C (Darren, 2013). The price of Moto X is $599, so the manager should decide a lower price than it to gain a competitive advantage. In particular, the competition is not just from the external market, we know that Apple Inc. promoted iPhone 5C as well as iPhone 5S at the same time. To iPhone 5C, the manager needs to consider about the plastic case, which is $42 less than the metal case cost of iPhone5S (Ben, 2013). So manager should also compare the 5C’s price to 5S. It is an important thing to keep secret of the product’s price before they coming out. The manager of Apple Inc. can survey the expected price of the public, or conduct some historical sample tests before making the final price decision. The third factor that important in the pricing decision of iPhone 5C is the manager should estimate the demand. Assume that we are suffering a financial crisis, most people don’t have extra money to pay for new electronic devices. They have already owned iPhone 5 or iPhone 4S and do not want to pay for another similar product. Then the manager should decrease the price of iPhone 5C to fit for people’s expectation of low pricing, using the profit margin per unit to trade for higher quantities. As I mentioned above, the estimation of demand function is also important in the marginal analysis. In order to estimate the demand, the manager should also make market survey to analyze the targeted customers. According to Pew Internet’s report, Teens and Technology 2013, 37% of U.S. teenagers now own a smartphone (which compares to 23% in 2011). And the increases of U.S. wireless carriers’ family data plans, intensive the parents to buy smartphones for their kids (Jason, 2013). Because the iPhone5C is colorful, has proper functions and easy to control, it must a first-choice for kid’s cellphone. Aimed at attracting teenagers group, the Apple Inc. manager should make the price to a certain level. What’s more, we also have to consider whether buyers are sensitive to price. In economics, we call it price elasticity of demand, which means the percentage change in the numbers of units sod to the percentage change in the price of the product. Assume most people are price sensitive, if the price of iphone5C is much higher than they expected, they will not buy it, which decreases demand a lot. So, listen to the public opinions on price is quite important. Before iphone5C facing to the public, a lot of individuals forecast that the selling price should be low enough to satisfy the low-end customers needs. Somebody was kidding that iPhone 5C is iPhone for China or iPhone for cheap. Apple Inc. wants to occupy more market percentage in developing countries, so they advertised that to make a colorful low-end smartphone. However, the price of iPhone 5C is not as low as we expected. The data shows after releasing the iPhone for 72 hours, both in China, Australia, U.S., the sales of iPhone 5S is almost 4 times compare to iPhone 5C. Especially, the graph says in the â€Å"target† country China, where the 5s is outselling the 5c five to one (Christopher, 2013). So I think the price of iPhone 5C is not reasonable. There are several reasons to explain iPhone 5C price is not appropriate. Firstly, compare to iPhone 5S, people claim 5C just looks an iPhone 5 with a candy-colored plastic shell. According to a report published by UBS, the same memory for 16 Gigabyte iPhone, 5S costs $213 in materials, whereas a 5C costs $156IPhone 5S has metal shell, Touch ID fingerprint scanner, more advanced A7 chipset, Motion Coprocessor and True tone flash for camera. The different price due to plastic case of $42 and finger print sensor of $7. However, the price of iPhone 5C is only $100 less than iPhone 5S. The UBS also estimates the gross margins of iPhone 5S is 45-55% and for iPhone 5S is 48-54% (Ben, 2013). As a rational consumer, I will buy iPhone 5S instead of iPhone 5C, since 5S has much more functions, which is not at a so much higher price. Secondly, the factors of competitor also have huge effects. Samsung is the key part for apple to make its â€Å"retina display† screen, as well as apple use Sony’s sensor in its camera. We know that Samsung and Sony are competitors. Apple Inc. is hiring, relying and paying them. But if someday, Samsung or Sony stop providing essential parts to apple, what will happen? I think Apple Inc. has to produce all manufacturing parts by themselves under a big amount of fixed cost, which will have a big effect on Apple’s price decision. Thirdly, the price of iPhone 5C is not as low as rumored. It brings the question to us, who exactly is Apple targeting? We know that Samsung has galaxy series, which with large-screen and liked by fashion people and developing markets. In china, there are a lot of really cheap phones under 1000RMB, those phones have varieties function and beautiful looking. So when Apple Inc. can really open the market to low-end customers? The price decision and targeting customer is not clear and accurate. I am kind of thinking there must be some sailing strategy when apple promoted 5C and 5S at the same time, with a huge cost performance in my opinion. Maybe Apple Inc. just wants to stimulate the sales of 5S, after people comparing these two products.

India: A Socialist, Secular and Democratic Country Essay

SOCIALIST The word socialist was added to the Preamble by the 42nd amendment act of 1976, during the Emergency. It implies social and economic equality. Social equality in this context means the absence of discrimination on the grounds only of caste, colour, creed, sex, religion, or language. Under social equality, everyone has equal status and opportunities. Economic equality in this context means that the government will endeavor to make the distribution of wealth more equal and provide a decent standard of living for all. This is in effect emphasizing a commitment towards the formation of a welfare state. India has adopted a mixed economy and the government has framed many laws to achieve the aim. SECULAR The word secular was inserted into the Preamble by the 42nd amendment act of 1976, during the Emergency. It implies equality of all religions and religious tolerance. India, therefore does not have an official state religion. Every person has the right to preach, practice and propagate any religion they choose. The government must not favour or discriminate against any religion. It must treat all religions with equal respect. All citizens, irrespective of their religious beliefs are equal in the eyes of law. No religious instruction is imparted in government or government-aided schools. Nevertheless, general information about all established world religions is imparted as part of the course in Sociology, without giving any importance to any one religion or the others. The content presents the basic/fundamental information with regards to the fundamental beliefs, social values and main practices and fesitivals of each established world religions. The Supreme Court in S.R Bommai v. Union of India held that secularism was an integral part of the basic structure of the constitution. DEMOCRATIC India is a democracy. The people of India elect their governments at all levels (Union, State and local) by a system of universal adult franchise; popularly known as ‘One man.

Extended Project Essay Example | Topics and Well Written Essays - 1500 words

Extended Project - Essay Example more crimes committed by young men than young women. The key focus of the paper is to reveal the inner crux of the theme with a background focus on economic reasons. An in-depth evaluation of the selected theme would facilitate to derive an understanding regarding the factors especially the economic factors that encourage more males to commit crimes than young women. Economic Reasoning In this section of the paper, the aforementioned economic concepts namely economic learning including scarcity, opportunity cost and margin analysis, Handy Dandy guide, REMM-Decision Making model, along with evaluating certain economic systems such as circular flow, market failure and command among others will be explained in a precise manner. Market Failure It is particular economic situation in which a company or a business entity has to suffer from economic losses resulting out of non-achievement of the broad business objectives. This term can also be understood as a negative aspect which is faced w hen certain pre-determined objectives are not met within the overall marketing context (Carden & Horwitz, 2013). Handy Dandy Guide This concept comes under the aspect of economic learning. It is referred as an assessment tool which is utilized in studying the behavioral work pattern of the people. It is used for determing the choices of the people and also for highlighting the costs involved in people’s choices. It also explains the different choices people make and certain consequences that they face which may take a negative or a positive form (Pennsylvania’s State Parent Advisory Council, 2006). Economic Learning This aspect can be understood as the process of gaining knowledge in the overall context of economics. This form of learning can result in the achievement of greater aspects of economical knowhow. REMM-Decision Making model This particular concept is an integral part of economic learning. It is termed as the process which is utilized for closing and finaliz ing the decisions that are needed to be made and also to find suitable alternatives for each of the decisions (Saunders & Gilliard, 1995). Opportunity Cost This concept comes under the periphery of economic learning and is regarded as an economical term which primarily refers to the price of an alternative that is needed to be forgone for the purpose of pursuing a certain action (Saunders & Gilliard, 1995). Scarcity Scarcity refers to unavailability of required resources to obtain desired along with necessary aspects. Scarcity in economic parlance emerges from uncertain condition of the prevailing social structure and economy (Saunders & Gilliard, 1995). Margin Analysis Margin analysis refers to the process of analysis of the margins of a company. This process is precisely followed in determining the overall profits of a company. The process of margin analysis can be performed by way of performing economic calculations and specific financial analysis. This aspect is however consider ed to be very important as with the help of proper margin analysis, the actual state of the company’s profitability can be determined (Saunders & Gilliard, 1995). Literature Review This part of the paper will primarily highlight all those factors pertaining to the deeper analysis of the above mentioned economic concepts. The concerned terms represent greater significance in relation to the overall

Report Toys4U Ltd Essay Example | Topics and Well Written Essays - 2000 words

Report Toys4U Ltd - Essay Example The legal implications are the following: On March 3, 2010 eight Polaris toy missiles arrived at toys4u from the supplier instead of the 10 because it was claimed that the two other were damaged during handling by the fork lift, and the other one was clearly badly broken due to transporting. The redundancy of broken toys from one delivery should have alarmed Toys4u that the whole stock might be defective; however instead of being careful and cautious the retailer went on disposing the product. Toys4U has been negligent to put first the safety of their clients. Mrs. Sharma can make her legal claims against the toy retailer for negligence. However, in the absence of proof that there has been neglect, Mrs. Sharma just the same can make a claim for the injury her son Pritam has suffered. Mrs. Sharma can also make a claim for a damage property under the same Act. These can be done even without proving the negligence of the producer as long as they can prove that the injury and the damage are direct result of using the product (P roduct Liability, Defective Products, Unsafe Products Quick Facts 2007). The Polaris missile that was sold to Mrs. Sharma was clearly defective and therefore can be categorized as ‘unsafe product’. An unsafe product means in general something that the consumer does not expect from what she or he bought. When a consumer buy a product there is a general assumption that the product is safe for use. In the event that accidents like that of what took place at the house of Mrs. Sharma, there is provision in the law. Consumer Protection Act 1987 made a strict and clear liability concerning damage that is a result of a defective product. Damage means death, or injury; or loss or damage to a property including land (Derbyshire County Council Trading Standard Service 2010, p.1). The Act entitled Mrs. Sharma to a legal claim for the injury suffered by her son and for the glass ceiling lamp

The Impact of the Euro Since its Launch Dissertation

The Impact of the Euro Since its Launch - Dissertation Example The currency had also to revive itself from the initial downturn it suffered and later to sustain the growth achieved by it as an international currency. This paper presents the major advantages and disadvantages of the currency as a single currency and the impact it created on the various economic fronts since its inception. The major purpose of introduction of Euro was to take on the challenges of competition posed by the growing attitude of globalization. The other object envisaged by the European Union through the introduction of Euro was to overcome the barriers imposed by the diversities posed by the different economies. These diversities are caused by the conflicting monetary and fiscal policies of the various governments and the multifarious tariffs and restrictions placed on trade and investment. Before the introduction of Euro the euro-zone currencies were greatly influenced by the rise or fall in the rate of US dollar. The introduction and existence of euro has led to the positive impact of alleviating the financial crisis faced by the euro-zone countries since 1998. Further positive effects of the common European currency in the form of price stability, cheaper and better banking facilities, increase in the competitiveness of the industrial enterprises and welfare of the consumers in general have resulted during the last 8 years of the existence. Most generally the vastness of the European internal market with a single currency made Europe a potential competitor to the market of the US.

SERVQUAL Essay Example | Topics and Well Written Essays - 1500 words

SERVQUAL - Essay Example ortance of customer satisfaction due to the globalize competition which has increased the strategic necessity of customer satisfaction along with quality and loyalty eventually. This helps greatly in achieving better customers and people who would further promote the business. By adopting quantitative method to research study, the researcher aims to identify the gap between customers’ expectations and customers’ perceptions towards Al-Khalij Bank’s services. The selected sample consists of 15 respondents. The results reflects that the customers are somewhat satisfied with the services they receive at Al-Khalij Bank. The basic aim of management of any business is to ensure that their customers are satisfied from the products and services they purchase. Businesses formulate strategies that can achieve customers’ loyalty to the brand and its products upon attaining customers’ satisfaction. Businesses focus on influencing consumer behavior through effective marketing and quality products and services, which help them to meet customers’ expectations. It was not long time ago that customers’ satisfaction was not considered as an important factor to have an impact on the organization’s performance. Strategists and business managers failed to understand the fact that greater customer satisfaction would eventually lead to greater profitability (Olorunniwo, Hsu and Udo). Moreover, the absence of quality competition within industries also deprived businesses to achieve customer satisfaction. This was mainly because customers had few alternatives to fulfill their demand f or a product or service. However, in present times, the scenario has quite changed as there is a defined importance of customer satisfaction due to the globalize competition, which has increased the strategic necessity of customer satisfaction along with quality and loyalty eventually. This helps greatly in achieving better customers and people who would promote the business further

Mass Culture Essay Example | Topics and Well Written Essays - 1000 words

Mass Culture - Essay Example The distinction between 'serious' and 'popular' music was tackled by Adorno. Serious music is perceived as refined music compared to popular music. Serious music is regarded as highbrow as distinct from popular music which is considered lowbrow. (Witney, 2002). However, Adorno rejects these categories as a basis for making a distinction between serious and popular music. Adorno stressed that the works of early Viennese classicism were rhythmically simpler than the common arrangements of jazz. He further pointed out that based on melody, the wide intervals of â€Å"Deep Purple' and 'Sunrise Serenade' makes these much more difficult to emulate compared to Haydn. In particular, he explained that the supply of chords of the classics is limited compared to a modern composer who culls from Debussy, Ravel and later sources' (Adorno 1990:305). The rallying point of Adorno was the question of whether culture validated the experience of the individual or whether culture had eclipsed it. (Ridlesss, 1984). According to Adorno and Horkheimer, under monopoly, all mass culture is identical. Movies and radio are not art but businesses made into an ideology to reinforce the rubbish they produce. These businesses refer to themselves as industries. Some persons explain the culture industry in technological terms. They state that reproduction processes are necessary that would require similar needs in many places to be satisfied with identical goods. Adorno and Horkheimer stipulate that the standards were based on consumers’ needs. ' needs. The basis on which technology acquires power over society is the power of those whose economic hold over society is at its greatest. A technological rationale is the aim of domination itself. It is the coercive nature of society alienated from itself. The outcome is that the technology of the culture industry resulted in standardization and mass production. (Adorno and Horkheimer, 1993). Moreover, Adorno and Horkheimer states that the man with leisure has to accept everything that the culture manufacturers offer him. The industry robs the individual of his function since the industry does the schematizing and classification for him. (Adorno and Horkheimer, 1993). Adorno and Horkheimer stated that style is significant in every work of art. The artistic expression is imbedded in the style or into the language of music, painting and words. The promise a work of art holds depends on how it will create truth by lending new shape to the conventional social forms. The fulfillment of art lies in their aesthetic derivatives. (Adorno and Horkheimer, 1993). The culture industry is basically a spectacle which is illusory. In the face of the person who isstimulated by all those brilliant names and images there is an ode to the depressing everyday world it sought to escape. The culture industry is essentially pornographic and prudish. Love is further downgraded to romance. After the descent, license becomes a specialty, it is knows as "daring. The stronger the positions of the culture industry become, the more it can handle consumers' needs by manufacturing them, manipulating them, disciplining them, and even by withdrawing amusement from them. (Adorno and Horkheimer, 1993). In the culture industry, the individual is an illusion due to the standardization of the means of production. The reactions of human beings have been reified that the idea of anything specific to themselves shows as an abstract notion. The emphasis is on bodily perfections devoid of distinction. The triumph of advertising in the culture industry is that consumers feel compelled to buy and use its products even though they see through them. (Adorno and Horkheimer, 1993). Stuart Hall's encoding and decoding diagram is closely related to the works of Eco, Adorno and Horkheimer. Hall showed that production practices in television translate into a message, a sign-vehicle which is organized by means of a set of codes