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Apple Inc. is an innovative designer and manufacturer of consumer electronics. The company initially manufactured personal computers and software and was called Apple Computer, Inc. In January 2007, Steve Jobs, co-founder and CEO, announced that the company name was being changed to Apple Inc. This move reflected Apple's shift from personal computers to consumer electronics and mobile phones. The company revolutionized digital music industry through iPod portable music players and iTunes online store. Later Steve Jobs became interested in mobile electronic devices. Steve Jobs had earlier shown interest in touch screen technology and introduction of tablet PCs and PDAs. However, he soon realized the increasing popularity and consumer…show more content…
The iPhone was an instant hit among the consumers and 525,000 iPhones were sold during the first weekend following its launch (BBC News, 2007). Steve Job was proven right as 'some 50% of iPhone purchasers replaced another phone, 24% replaced a Motorola RAZR, 14% replaced a Windows mobile device and 20% replaced a BlackBerry or Palm' (Mohr, Sengupta & Slater, 2004) The iPhone was introduced in two versions, 8 GB and 4 GB model. The 8 GB model was priced $ 599 while the 4 GB iPhone was worth $ 499. The iPhone buyer also got a two-year contract with AT&T costing $59.99 per month (minimum). The 4 GB model of iPhone was discontinued while the price of the 8 GB model was cut down by $ 200 (to $ 399) in September 2007, barely two months after its initial launch. Consumers who had bought the product were dissatisfied at this price cut within such a short period of time. Steve Jobs took notice of the growing indignation and in an open letter to all customers, announced a $100 store credit to all iPhone customers not receiving any rebates etc. On 11 June 2008, Apple launched iPhone 3G. Apple indulged in a series of price cuts. It first reduced the price of its iPhone from $399 to $199. On 19th June 2009, Apple released yet another new and speedier version of its Smartphone called iPhone 3 GS. Prices of the new iPhone 3GS were set at $199 for 16GB

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