Rafi Mohammed

Why Apple’s New iPhone Upgrade Plan is Driving Growth

Posted on September 28th, 2015 (0 Comments)

Boy, it must be tough being Apple. What other company commands such a consumer and media frenzy every year it releases a new product? Now the scrutiny is on “first weekend” sales. Apple announced this morning that weekend sales were in excess of 13 million. Any figure less than 12 million would have likely deemed the new iPhone a disappointment.

The new phone has been well reviewed, but I think Apple’s new iPhone Upgrade Plan deserves credit too.  A key way to drive growth is getting existing customers to upgrade more. Apple rolled out a new hybrid leasing/no interest financing ownership plan which makes it easy for purchasers to upgrade frequently. More importantly, the new upgrade plan makes Apple a rival to the wireless carriers. Feeling the heat of competition, cellular carriers heavily promoted and creatively priced the new iPhones.

Please check out my latest piece for the Harvard Business Review which hammers home my consistent theme that the real creativity of pricing is not the price tag, but in how consumers pay the price.

Please follow me on Twitter: @cultureofprofit

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