The Marketing Distribution Channels in the iPhone - Essay Example

For example, iPhone functions depend on the mobile network such as GSM, GPRS, EDGE, 3G, Call, SMS, etc. Without these features, there is not much use of iPhone and hence by distributing the iPhone through AT & T, Apple is enhancing the value and use of iPhone for consumers. Similarly, the value chain for customers buying online is that segment of the market which resides outside the USA. Hence, they cannot use AT & T in their country, so it much feasible for them to buy iPhone online and use it in their country on their choice of the mobile network.

The value they get from buying online is cheaper product as compared to if it bought from AT & T. The return value channel will be reselling iPhone back to Apple, which will refurbish them and then sell them again in the market at a higher price. The reverse value will be that when people buy refurbish sets they will know that the product is being checked by Apple itself and hence it will be more reliable than other second-hand iPhones available in the market. This will result in refurbished iPhones selling at a higher price as a result of reverse value.