Forecast on iPhone 6 sales - Essay Example

Forecast on iPhone 6 sales affiliation Forecast on iPhone 6 sales Since the launch of Apple in 2007, each products created was effectively marketed to reach the targets by Steve Jobs. However, the first Apple products did not match the competition of the market. The electronic products market has stiff competitions from giant manufacturers such as Samsung and Nokia. However, Steve Jobs had the objective of reaching out to a specific audience. In the modern market, each version of Apple products has a huge market base. By 2008, Apple has sold 13.7 million phones (Rogowsky, 2014). In 2013, the company had sold 47 million phones which had exceeded the previous financial year. In an argument by Rogowsky (2014) the growth of Apple can be attributed to its marketing strategy which has enabled the organization to have a massive competitive advantage. Regardless of the massive growth, Apple still trails Samsung in regards to sales. However, each year, Apple has an increased consumer market for its products. This creates the assumption that the growth of Apple is steady and significant. Most Apple consumers seek replacements from their previous products. This ensures that previous consumers are retained (Guglielmo, 2014). Moreover, it provides a forecast that the number of consumers will surpass the previous product production demand. In analyzing the forecast of Apple products, it is clear that most existing consumers access the products access the products in the first quarter. There is always a massive expectance of each product created by Apple. For instance, iPhone 6 launch in in September is eagerly awaited considering the unique features is has been developed to contain. Edwards (2014) is of the assumption that the production of iPhones is always a great function in the electronic market. The author further points out that it could be justified by considering the sales recorded in the first quarter. For this reason, one may predict the sales of the iPhone 6 would match the previous demand levels. The phone has a new screen technology and sharper colors. These features are intended to spark an interest in the consumer market. Prior to its production, feedback from consumers has been great. It is estimated that the new phone would create match the demand of all other Apple products in previous years. In term of competition, the iPhone ensures that Apple retains market relevance and makes its previous consumers gain interest in the new creation. But would Apple reach its target in the first month of production? What would be the initial consumer creation of the product and how would it affect the demand in the first month of production? Apple is expected to unleash the iPhone 6 in September with a massive reception expected. Alan (2014) creates an assumption that the sales of the phone are expected to reach 70 million in just three months. From this date, one may forecast that in the first month of production, the sales of the iPhone would reach the 20 million mark. However, Alan (2014) asserts that the first month of production would be dominated by the rush of consumers. For this reason, the sales may be up to 25 million. The features incorporated in the iPhone 6 makes its demand in the first month massive. In the current electronic market, these features do not exist. However, consumers of brands from competitors may not be part of the demand. This is based on the assumption that, non-existing Apple consumers do not acquire the gadgets prior to their first-hand experience. Their demand is expected after the phone is spread in the market and they experience the difference. This trend minimizes the sales expected in the first month of production. Yarow (2014) asserts that almost Apple sales in the first month are acquired from replacement sales. Replacement sales also account for the largest sales in the total sales. The Statistics Portal (2014) estimates that the first quarter of 2014 would record 51 million unit sales. However, the data does not consider the launch of iPhone six. This creates the assumption that the production of iPhone 6 would dominate the total sales recorded in the quarter of its production. However, if the sales in a quarter year are 51 million, a month demand would be an estimate of 17 million units (The Statistics Portal, 2014). This assumption is created with the consideration that the production of the iPhone 6 would dominate the sales of phones at Apple. In addition, due to demand the number of iPhone 6 produced to the market would surpass the production of any version of the iPhone. The argument is supported by Edwards (2014) who is of the assumption that the 2014 financial year is dependent on the production and sales of the iPhone 6. The author further points out that Apple would seek to maximize on the market expectation of the new version of the Apple phone (Rogowsky, 2014). The argument is also based on the assumption that iPhone 6 would significantly diminish the sales of other iPhone versions. In addition, the massive market demand is expected to be significantly for a period of only three months (Guglielmo, 2014). By three months, replacement sales are projected to be over. These sales create most sales from Apple products. For this reason, Apple is expected to increase the effectiveness of its marketing strategy in the first market of production. This assumption has been already witnessed with the increased awareness of the new screen technology. Moreover, the incorporation of colors may also spark an interest in new consumers. In addition, Apple expects to attract more consumers who do not value and embrace the Apple brand. The price allocation of the iPhone 6 would also allow the corporation to boost its sales in the first month. Alan (2014) points out that the 32 GB version of the iPhone 6 would be priced at $850. The 64GB is expected to be priced slightly over $1000. These prices are set for the 4.7 slide mode of the phone. It is expected that the 4.7 type of the iPhone 6 would generate a total income of 70 million in the first 14 weeks of production (Alan, 2014). On the other hand, Apple has created a 5.5 inch screen version of the iPhone 6. The sales of this version are expected to reach 10 million in the same 14 weeks of production (Alan, 2014). This adds up to 80 million of sales in a period of about 3 months. From this date, the forecast of the monthly sale can be generated. The monthly sale is about 26 million. However, it is also estimated that the first month of production would generate more of the first quarter sales. This may develop a forecast of about 30 million sales in the first month. This can be linked to the value of the phone which is relatively affordable. For instance, the expected price of $850 the 32GB and 4.7 inch screen version of the iPhone is the current price of the iPhone 5s in China (Alan, 2014). This increases the probability that the sales of the iPhone would be massive in the first month of production. The role of replacement sales in the first month of production is also an important factor to consider in creating a forecast on the sales. In an argument by Yarow (2014) replacement sales make up 80% of the total sales of iPhones. Each version of the iPhone is created with different and more advanced features. This increases the demand to replace existing version of the iPhone with more advanced versions. In addition, new iPhone models are created withhigh performance abilities. The strategy is aimed at changing the experience of the consumer. One a previous Apple client as has experienced a new iPhone version they would develop the urge to access it. The same strategy could be said of the iPhone 6. The phone is created with a new screen technology, the quantum dots powered vivid screen (The Week, 2014). This creates deeper and sharper color experience to the iPhone 6. In addition, the marketing strategy embraced by Apple enables consumers to experience the technology before they could access the device. These increases the consumers urge to acquire the phone. In addition, most stores have put in place display version of the phone to increase the consumer knowledge of the phone. The Week (2014) points out that Apple is dependable on how well the consumer would experience the new technology to increase its sales in the first month. The prolonged launch and rising consumer expectation on the technology, the sales made in the first month are set to surpass the 30 million target put in place (Thompson, 2014). From the information provided, it is an obvious assumption that iPhone 6 would surpass the sales recorded for other versions of the iPhone. With an exceptional technology and performance, the iPhone 6 is set to create a massive demand within the first month of production. In addition, replacement sales in the first month are set to be huge considering the new technology in the phone that is absent in other iPhone versions. References Alan, F. 2014. Apple iPhone 6 tipped once more to launch on September 19th; $70 million in sales expected for 2014. July 15, 2014. Retrieved from http://www.phonearena.com/news/Apple-iPhone-6-tipped-once-more-to-launch-on-September-19th-70-million-in-sales-expected-for-2014_id57497 Edwards, J. 2014. The iPhone 6 Had Better Be Amazing And Cheap, Because Apple Is Losing The War To Android. July 15, 2014. Retrieved from http://www.businessinsider.com/iphone-v-android-market-share-2014-5 Guglielmo, C. 2014. Apple Gets ItsiPad Christmas, But iPhone Sales, Forecast Disappoints, Shares Fall. July 15, 2014. Retrieved from http://www.forbes.com/sites/connieguglielmo/2014/01/27/apple-counting-on-an-ipad-christmas-iphone-holiday-surge-to-report-results-today-live/ iPhone 6 to launch in August with bigger model to follow. The Week U.K, 14 May, 2014. Rogowsky, M. 2014. Without Much Fanfare, Apple Has Sold Its 500 Millionth iPhone. July 15, 2014. Retrieved from http://www.forbes.com/sites/markrogowsky/2014/03/25/without-much-fanfare-apple-has-sold-its-500-millionth-iphone/ The Statistics Portal. 2014. Global Apple iPhone sales from 3rd quarter 2007 to 2nd quarter 2014 (in million units). Retrieved from http://www.statista.com/statistics/263401/global-apple-iphone-sales-since-3rd-quarter-2007/ Thompson, C. 2014. Apple earnings: Dont expect surprises as consumers await iPhone 6. July 15, 2014. Retrieved from http://www.cnbc.com/id/101603414 Yarow, J. 2014. Everything You Need to Know about the Current State Of The iPhone Business. July 15, 2014. Retrieved from http://www.businessinsider.com/iphone-sales-chart-forecast-2014-3 Read More