For the purpose of this project, Apple will be launching a child friendly iPad. This iPad is meant to have features, including parental controls, that will allow it to grow to meet the needs of the child as they get older. The main objective are to sell more child focused tablets than competitors, stay at the top of tablet sales overall, bring new customers to the Apple brand, and regain footing in the Chinese market. This iPad is specifically for educational and entertainment purposes. According to Business Insights, “Apple revolutionized the tablet computer market on April 3, 2010, when it unveiled the Apple iPad, of which 1 million were sold within 28 days of the product’s introduction” (2019). It is important that Apple stay on top by staying relevant.
Since the first iPad came out in 2010, that puts our age group at 16-26 when the first iPad came out. It is likely that they remember the excitement and thrill of the first iPad and remember how everyone wanted to have one. Their age makes them more likely to fit into the other parameters of our target audience and makes them more likely to have the means and desire to purchase an iPad for their own children, which will help Apple meet their objectives. One of the biggest challenges for Apple at this point is regaining footing in the Chinese market, which is effected by Chinese bans of Apple products, the ongoing trade war between the Unites States and China, and availability on competitors’ products.
Research indicates that the use of technology in schools and for education at home is growing and there are many studies documenting the benefits of using technology to help children learn. In one example from A Qualitative Study about the Implementation of Tablet Computers in Secondary Education, teachers reflected that “their horizon as a teacher has been broadened, and that they have changed their teaching style.”
The biggest market trends impacting this product are, according to Newman (2019), artificial intelligence, cloud, CX and UX, data-driven decisions, augmented and virtual reality, and blockchain. Many of these technologies are interrelated and build on one another. Augmented and virtual reality could be a big opportunity for Apple, especially for this product. Educating and entertaining children through these methods would be very engaging and might be the difference that sets Apple ahead of their competitors. Blockchain is another opportunity that Apple should pay attention to, that may help with their foreign exchange rate issues.
Legal, ethical, and industry standards involving this product right now are the trade war and tariffs, the lawsuits for Apple using patented technology leading to a ban of sales in China, and prices. Specific issues include open lawsuits in China, foreign exchange rates, and the United States and China trade war. According to a report from Global Data, “In December 2018, a Chinese court imposed a ban on the sale of various Apple iPhone models in China for infringing two patents of Qualcomm Inc.” and “China is its (Apple’s) third largest revenue generating market” (2019, p.3). Global Data also reports that Apple “registered loss of US$525 million from foreign currency translation adjustment” (2019, p.4). The ongoing trade war between the United States and China would impose tariffs on Apple parts shipped to China and Apple products shipped back to the United States. In order to remain ethical in the eyes of their customers, Apple needs to resolve the patent infringement fairly and give the original creator compensation for the infringement. Typically Apple is prices higher than their competitors and, according to Global Data “many of its competitors seek to compete primarily through aggressive pricing and very low cost structures” (2019). Fortunately, the trade war is also a problem faced by their competition since so much production is done outside of the United States, specifically in China. The trade war will likely result in higher prices across the market, which will keep Apple’s prices competitive with other child focused tablets on the market. Apple should consider lower and more competitive prices in China for a while to boost sales after the ban and help them maintain their customer base in China.
Limitations in creating a market proposal for this product are mostly due to a lack of knowledge about Chinese markets and marketing outlets. For example, I know that certain social media sites that I would use for product promotion are banned in China, but I did not research what social media sites are prominent in China and how to go about advertising on them.
References
Business Insights. Tablet Computers. (2019). In Encyclopedia of Emerging Industries. Farmington Hills, MI: Gale. Retrieved from https://bi-gale-com.ezproxy.snhu.edu/essentials/article/GALE|PZVMRF714046977/6a4f20e0e1ce0e3006d06529a0549f04?u=nhc_main
Hannelore Montrieux, Ruben Vanderlinde, Cédric Courtois, Tammy Schellens, Lieven De Marez, A Qualitative Study about the Implementation of Tablet Computers in Secondary Education: The Teachers’ Role in this Process, rocedia – Social and Behavioral Sciences, Volume 112, 2014, Pages 481-488, ISSN 1877-0428, https://doi.org/10.1016/j.sbspro.2014.01.1192.
Newman, D. (2019, January 23). Top 7 Digital Transformation Trends In High Tech Industries For 2019. Retrieved from https://www.forbes.com/sites/danielnewman/2019/01/23/top-7-digital-transformation-trends-in-high-tech-industries-for-2019/#4fe3f89d7aca.
Zikmund, W. G., & Babin, B. J. (2010). Essentials of marketing research (6th ed.). Mason, OH: South-Western/CENGAGE Learning