In the PC Industry HP, DELL, LENOVO, as well as Asus are Apple’s key competitors. “Higher PC prices due to the impact of component shortages for DRAM, solid state drives (SSDs) and LCD panels had a pronounced negative impact on PC demand in the second quarter of 2017,” said Mikado Kitagawa principal analyst at Gartner “The approach to higher component costs varied by vendor. Some decided to absorb the component price hike without raising the final price of their devices, while other vendors transferred the costs to the end-user price.”1 In the market for PC the surge in price due to a shortage in components is causing the quantity demanded of Personal Computers to decrease, as a result domestic shipment of PC’s and worldwide shipment of PC’s are down. Apple produced a combined 5,374 units of the MacBook’s and iMac, in the first quarter of 2017 and generated $7,244,000 in revenue.
The Apple IPad is Apple’s tablet product; tablets are small portable computers that accept input directly on to screens without the addition of a keyboard or mouse. Apple fairly dominates the Tablet market however the iPad’s decline in shipment has increased over the years. Apple is currently leading 24.6% in market share with 8.9 million units shipped worldwide. Its competitors Samsung (16.5%), Huawei (7.4%), Amazon (6.0%) and Lenovo (5.7%) have experienced a smaller percentage in declined shipment compared to Apple. Samsung, Amazon, and Lenovo offer two in one hybrid tablets that are cheaper, these tablets can be used as notebooks and tablets which have led to an increase in consumer demand for hybrid tablets. 2 Apple’s’ Q1 2017 summary reveals the iPad being it’s second most profitable product bringing in 5,533,000 in revenue after selling 13,081 units of iPads.
The landscape of the smartphone industry changed when Apple introduced the iPhone. According to reports on US News Apple is leads the market share of smartphones. Apple attained 72% of total North American smartphone profits in the third quarter, and is expecting to a larger share of profits in 2018 due to the higher price of iPhone X model. Apple’s iPhone average sales price in the third quarter was $618, nearly three times the average sales prices of Samsung devices. Samsung is Apple’s prominent competitor in the domestic market for smartphones. In the World Wide or Global Market, Samsung is the consistent leader, next comes Apple and foreign vendor Huawei. The iPhone’s operating system IOS is one of the reasons why Apple isn’t the leader of the smartphone global market. Phones in countries such as China, Japan, and India have
accustomed to the Android operating system developed by Google. A large unit of smartphones supplied in the global market uses the Android operating system.
A higher price for iPhones has also crippled Apple’s Operating System market share globally. Worldwide consumers are satisfied with the current Android operating system in addition to the fairly low prices the smartphones are sold for.
Apple’s marketing mix is a coalition of four elements, Price, Products, Place, and Promotion in which they modify to form their preferable marketing scheme. Apple attempts to increase market demand for its products through differentiation, which entails making its
1 Source: https://www.gartner.com/newsroom/id/3759964
2 Source: http://fortune.com/2017/05/04/apple-ipad-tablet-market/