The Decision
Giant US tech company Apple Inc. has, according to recent reports elected to manufacture a larger, better, and more expensive smartphone than any available in the general global market. According to Kelly (2018 ) recent leaks by Apple show that the impending iPhone will have a 6.1-inch screen and might retail at slightly above US$ 799. It is the decision by Apple to produce a larger, more complex, and more expensive phone at a time when most competitors are seeking to manufacture cheaper phones, that informs the decisions canvassed in this argumentative essay.
Why the Business Decision is Good is Good for Business
The decision made by Apple Inc. to manufacture a larger, better, and more expensive phone than any available in the market is good for business based on who is making the decision and also based on the current smartphone market dynamics. (1, premise) Apple has always premised its marketing strategy on the argument that it is the most innovative and advanced Telecommunication Company in the world. Almost all smartphones in the world today are designed based on the initial iPhone, produced by Apple in 2007. Before the initial iPhone, the concept of a phone without a physical keypad had not even been envisaged. However, the groundbreaking nature and form of the iPhone did not come as a surprise to the world. From computers to the iPod to the tablets, Apple has continued to wow the world with their technological innovativeness. (2 premise) it is based on this concept by Apple alongside the conviction that the concept has created in Apple’s customers that the company is able to sell any product at premium prices (Khan, Alam & Alam, 2015). (1 & 2 Conclusion) If Apple was to lose the conviction among its customers that it is the best in global technology, then the company would no longer be able to charge premium prices. The failure to charge premium prices would force Apple to have to compete in the rat race that is the modern global smartphone industry.
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(3, premise)The modern smartphone industry is a convoluted, confused, and chaotic rat race that Apple would not only never succeed in, but also never want to be associated with. Some of the most respected brands in the smartphone industry such as Nokia are busy fighting it out modern giants such as Samsung and newcomers such as Techno for the honor of creating the cheapest smartphone. All these companies have a common denominator which is the use of the free and readily available Android software developed by Google. (4, premise) Because of the rat race, the average cost of smartphones keeps on going down as the prices of almost everything else in the world keeps on appreciating. It is now not uncommon for a fully equipped smartphone to be offered at under US$100 (Peckham, 2018). (5 premise)The rat race to make cheap phones is also a race to compromise quality at the altar of cheap pricing. This is a race that Apple Inc. cannot thrive in and also would not want to be seen to participate in as it stands contrary to the organizational culture and belief at Apple. Instead of Apple participating in the rat race, the company is seeking to remind the world why Apple is the leading brand when it comes to innovativeness and excellence (Khan, Alam & Alam, 2015). (3,4 & 5 Conclusion)When all companies are showing the world how much they can compromise on quality to make phones cheap, Apple is seeking to show the world how much they can rise in quality and value for the customers who are willing to pay the right price. (1-5, conclusion)The combination of the need to present itself as the best in the business and also avoid the rat race that is the current smartphone industry makes the decision made by Apple to produce a premium phone at a premium price good for business.
Definition the term "good" for the Purpose of this Situation
The word good as utilized in the argument above relates to the capacity of the decision to make money for Apple Inc. and also to ensure that the company continues making money into the future. Apple is a publicly traded company thus its primary obligation is towards its shareholders. The shareholders have invested their money into Apple hoping to get a return on investment in the form of dividends and also an appreciation of the value of the shares purchased. Therefore, the argument that the decision made by Apple is a good decision lies in the conclusion that the decision will enable Apple to make money in the near future and also keep making money in the long run.
Deductive Reasoning and Inductive Reasoning
The argument that Apple Inc. would not want to be associated with the rat race within the current smartphones industry is an example of inductive reasoning. This logical argument is based purely on an understanding of what Apple Inc. is and what it stands for, based on what is already known about the company. On the other hand, the argument that Apple would never win the rat race in the modern smartphone industry is an example of deductive reasoning. The instant argument is derived from evaluating what the instant rat race to make the cheapest smartphone is, and who are the major players in this race. Further, the reasoning evaluated what those companies are willing to do in order to win and whether or not Apple Inc. can be able to compete at that level.
References
Kelly, G. (2018, May 27). Apple leak exposes massive, expensive new iPhone. Retrieved from https://www.forbes.com/sites/gordonkelly/2018/05/27/apple-new-iphone-x-se2-design-specs-price-release-date/#22064e376c37
Khan, U. A., Alam, M. N., & Alam, S. (2015). A critical analysis of internal and external environment of Apple Inc. International Journal of Economics, Commerce and Management , 3 (6), 955-961
Peckham, J. (2018, April 25). Best cheap phones 2018: Our top budget mobiles. Retrieved from https://www.techradar.com/news/best-cheap-phone
