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Apple iPhone: Strategizing Product Marketing on $200 Price Cut

You think Apple pulled off the ROI bench? Ironically, a pivoting event did not hold Apple to remain in the center stage. After the announced $200 backlash and $100 rebates on iPhone, Apple already sold its 1 millionth iPhone and is now back on track.

Apple claimed that it took them two years to completely sell the 1millionth mark selling the iPod. However, after the price cut announcement last week, Apple took only 74 days to hit the 1millionth bench mark on iPod sales, an astonishing market accomplishment in the MP3 and cell phone industry.

Financial analysts and critiques regarded Apple’s price- cut action as an indication of weak marketing. As far as iPhone is concerned, Apple’s decision to cut the price of $200 on its 8GB iPhone and discontinuation of the 4GB iPhone version did not actually hurt the company’s stock contrary to what the majority is thinking. In fact, Apple’s market has been stabilized since the last week’s $200 backlash decision. Further and in order to further pacify angered customers, CEO Steve Jobs issued an apology letter to the public on the recent decision Apple undertook.

What’s more interesting result of this decision is that Apple’s competitors were pressured to enhance their MP3 items the more. Seeing a $200 price cut on iPhone then introduced Apple Touch iPod within the same week is not something Apple’s competitors expected. Lastly, Apple confidently resolved the issue that stirred public criticisms and negative remarks on its supposed “weak sales” strategy. Nevertheless, Apple’s graceful acceptance of the issue and taking control of its marketing and promotion, the company has developed trust and confident from the public. However, there are still doubtful fans but they are anticipating for Apple’s next major move especially this holiday season.

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