Sunday, 29 November 2009

Seems that Iphone as entered its maturity phase since Tesco aims to have Iphone in-store by Christmas













I always saw Apple products to be prestigious and as an Apple fan myself; I think that they shouldn't let a giant store such as Tesco sell their Iphone since it could ruin their image. I am aware that with the recession it is important to find a way to reach more customers, but I don't think that Chanel will lower its price and Apple shouldn't either.

Iphone is the most wanted phone on the market at the moment and anyone is ready to pay the price to have it in his possession. I thought that even after 2 years, Iphone was still the coolest phone on the market, but I guess everything comes to an end. Iphone early adopters market is probably saturated. Thus, the company needs to find new customers that might not be ready for their products, but if it is available at a cheaper price, they would be able to give it a try.

When I heard about that news about Tesco future agreement with Apple, I was sure it was only some rumours, so I decided to start some research and found some articles on the subject. I was disappointed that none of them were talking about Iphone's image, but I realised that in the financial world, everything was about business and not necessarily brand value.

The Financial Times was one of the article I like the most since I felt that there was a little of sarcasm in the first sentence saying that Tesco customers could pick up an iPhone as well as the Christmas turkey and mince pies in stores this holiday season, in a move that could spark a price war over the popular smartphone. Moreover, the article didn't only related the news, it also gave some hint of the future price the company was forecasting by quoting them we are hoping to bring out something that is a little bit different to what is already out there in the market, and would like to bring some Tesco value to the iPhone. This new agreement will probably affect Orange and Vodafone that just got the rights to sell it after a 2 years close contract with O2. This new agreement will probably lead to a price war between the companies since new markets are being reached, but I just hope that it won't affect to much Apple's image. The FT seems to be on the customers side since it demonstrate all the good side of Tesco new launch.

The article from Guardian was quite surprising since it didn't have any opinion. The author basically relates the story with facts about the different price plan O2 and Orange had and stating that the price difference of 24 p between the 2 companies didn't change anything in the market. The article wasn't that interesting since half of it was comparing price plan of O2 and Orange. I would have like the Guardian to be more critical about this new acquisition instead of simply analysing the 24 p difference between price plans.

Finally, Times Online showed how this new launch is quite surprising for Orange and Vodafone since both company just fought really hard to secure the rights to sell the Iphone which will probably cause a price war reducing the profit margin. I found that this article stated all the important facts of this acquisition. Moreover, the Times also inform the reader of the future plans of Tesco telecommunication which shows more research on the subject and gives some hope during this hard time to those customers who like nice products but are struggling with money for the moment.

Overall, even though if this new launch will benefit customers, I still think that Apple shouldn't spread their product to any company since it should keep its prestige image. I was surprise that almost all articles stated the same facts since they could have say much more on the subject. I just hope that the authors were not right about the fact that customers picking up a turkey and a Christmas pudding may also be able to throw an iPhone into their trolley.
(Times Online)




Sources:
Guardian:
http://www.guardian.co.uk/business/2009/nov/25/tesco-iphones-value-christmas

Tesco's Site:
http://www.tesco.com/mobilenetwork/content.aspx?page=12

Daily Mail:
http://www.dailymail.co.uk/news/article-1231161/Tesco-start-selling-iPhone-Apple-launches-day-Black-Friday-sale.html

Times Online:
http://business.timesonline.co.uk/tol/business/industry_sectors/retailing/article6932463.ece

Financial Times
http://www.ft.com/cms/s/0/68106e24-da2b-11de-b2d5-00144feabdc0.html


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