Apple, Inc.: Pricing the iPhone (B)

Apple, Inc.: Pricing the iPhone (B)

  • Case
  • Teaching Notes
  • Supplementary Resources
Abstract

On September 5, 2007, Apple, Inc.’s Steve Jobs announced a 33% price decrease in his company’s newest gadget, the iPhone. The announcement came only ten weeks after the phone’s initial introduction in late June. Billed as a revolutionary product that would change the mobile communications industry, the iPhone retailed at $599 in Apple and AT&T Wireless stores throughout the country. Unfortunately, the initiative set off a wave of backlash as early iPhone adopters flooded internet chatrooms and sent scathing emails to company executives exclaiming their distaste for the company’s actions. Analysts and investors shared similar concerns as Apple’s stock price dropped 6.1% on the date of the announcement amidst fears that the price reduction was fueled by weakening demand for the company’s newest “blockbuster” product. Going forward, Steve Jobs and his executive management team must develop a strategy that will effectively respond to consumer complaints and simultaneously suppress investor concerns.

You are not authorized to view Teaching Notes. Please contact your librarian for access or sign in to your existing instructor profile.
locked icon

Sign in to access this content

Get a 30 day FREE TRIAL

  • Watch videos from a variety of sources bringing classroom topics to life
  • Read modern, diverse business cases
  • Explore hundreds of books and reference titles