Business Trend Analysis Essay
An in-depth market analysis of our highest selling products, the Apple iPod video, reveals a slackening pace of growth in the sales of these devices in the last one year. The year 2008 reported a sales growth of only 3 percent over the previous year figures. An Internet report observes “Surprisingly, Apple’s most recognizable product, the iPod saw only modest gains this year, with 22,727,000 units sold, only three percent over last year” Iowe, 2009). The sale of ipods in 2007 had registered a growth rate of nearly 50 percent over the sales figures of the year 2006.
The Apple iPod has been earmarked as the device of the century and it has gained immense popularity in the past few years among the tech savvy consumer segment. The sleek look and features offered by the device is one of its strongest selling points and the Apple brand name makes it an even more attractive purchase option. However, the downward plunge in the sales growth figures in the past few months is a major cause of concern for the company. Apple iPod sales graph (Source: mylearninghub. com, 2009).
The above graph provides a glimpse into the plunging sales figures of iPods in the
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The small pocket sized device allows users to carry around more than a thousand songs and videos and enjoy viewing them at leisure – anytime, anywhere. Additionally, the product can be connected to a television or camera to upload pictures. The product sparked great interest among consumers in the age group of 15 to 35. The Apple iPod has fuelled the company revenue growth since its launch in the year 2001 from $5 billion to $32 billion in the year 2008. But negative feedback about the product has made its impact on the sales figures.
“The iconic music player cemented the company’s reputation for innovation and fuelled its financial success in recent years. But those days appear to be over” (Hesseldahl, 2008). This observation by the author in the Business Week magazine reflects the drowning picture of the iPod. According to these news articles many consumers feel that the iPod is overpriced besides the expensive accessories. Among other issues that face the product is the rapid pace of innovation in technology.
New products and devices are being introduced into the electronics markets on a regular basis and consumers shift attention to new technologies. The popularity of the ipod video has diminished owing to the negative feedback about the product and past few months have seen plunging sales graphs. However, this market can be revived and the product can regain its market shares with the help of reformed market strategy that focuses on meeting consumer needs and expectations. An insight into consumer behavior pattern
So, what are the factors that trigger the purchase of iPod videos? Some of the answers include: • The brand name of the product is one of the strongest drivers of sales of these products. • Purchase off-the-shelf is made by consumers on grounds of social recognition since owning an Apple iPod is fashionable among consumers in the age group of 15 to 35. • Technology is another element that drives sales – a majority of the consumers are techno-freaks who love to own the latest device. • Word of mouth publicity is also a decisive factor in sales of such devices.
Recommendations from an existing user will prompt the others to buy. One of the greatest challenges facing the iPod market is the stiff market competition that it faces. There are numerous brands available in the markets offering similar technology and services that shifts consumer loyalty. Competitive brands in the market tend to lower the prices of their products to grab greater market share. Apple faces stiff competition from other prominent market players like Sony and Microsoft.
New product launches and innovative models tend to grab consumer attention and tech-savvy consumers are much inclined towards purchasing the latest gadgets that provides them with a range of features and applications. The Apple iPod faces the risk of becoming obsolete within a few years of existence. The abundance of information available on the Internet on various products in the market enables the consumers to research extensively before making a purchase decision. Feedback from existing users, pricing of the product and utilities supported by the device are highly relevant in deciding consumer behavior.