Apple Inc is an American Corporation specializing in computer software, hardware, personal computers and consumer electronics. With 27% of the US Phone market, Apple Inc. has a considerable amount of profits to make in the US. IPhone remains a favorite phone among consumers because of its unique features that allow users to perform different functions with it. It also goes through generational changes, meaning customers are able to obtain current versions of the phone with better features. Factors affecting foreign business in America as discussed in this report include Socio-cultural factors, economic factors, and legal factors, technological and political factors. The focus is on Apple Inc, the company that designs and markets iPhones and the United State of America, which is the target market.

Apple Inc. released this type of Smartphone in 2007, and has since improved it through five generational changes. The phone has unique functions compared to ordinary phones, which makes it a popular and appealing to cell phone users. Its functions include email facilities, text messaging, videophone, portable media player, internet browsing, and 3G and Wi-Fi connectivity. The iPhone, unlike many phones, has a virtual keyboard. This phone has gone through four-dimensional generational changes, moving from the original GSM iPhone, to the 3G, then 3GS and finally the iPhone 4. The iPhone 3G added a A-GPS location together with a 3G cellular network facility while the 3GS improved it with a compass, high resolution camera and a faster processor. iPhone 4 was released in 2010. Its unique features include a higher-resolution display and a Face Time video.

Currently, there is iPhone 5, which is an improvement of iPhone 4. These products appeals to many cell phone users because of their unique features, usability, aesthetic value and fair prices. Having a standard iPhone offers you many functions like camera and video use. This product has a wide customer preference in America, making it an ideal product to sell. It also has fewer competitors, which makes it easier to advertise and market.

Marketing Plan

The iPhone is a unique type of phone, which has gained popularity worldwide, especially among the business class population. The phone undergoes generational changes to fit customer-changing needs and keep up with new designs and technologies. US will be a target country, and market. Apple product will target the upper-middle income professionals. The following iPhone features correspond to the needs of the professional users. The presence of instant messaging, E-mail as well as the phone itself will enable the professional to stay in touch with their family, colleagues together with friends while on the go. Professionals have tight schedules that need to be organized. The details of their schedules can be accessed through the iPhone feature of its ability of wireless access to address book and calendar. The iPhones corresponding feature of incorporating an application from Mac OS X. satisfies the other need of recording data by the professional (Grady, 2008).

The professional group based on their academic attainment earns approximately $ 90,000 annually. This puts them in a healthy income level. The group will not be afraid of purchasing an electronic device such as iPhone, which is slightly expensive. The high level of income boosts the purchasing power of the professionals. The professional group has both the potential and the willingness to purchase a lifestyle-related and all encompassing smart phone. The needs of the target market segment are well satisfied by the features of iPhone. The professional group forms the largest population of the segment that utilize phones especially iPhones. The population approximates 15% of the total population in United States. The large population size will create a satisfactory demand for the products of Apple Inc. The disposable income of the upper-middle class professionals has been growing significantly hence an increase in their purchasing power. The professionals spend the income as they wish or choose (Wrenn & Mansfield, 2005).

The purchasing habits of professional are purposeful. They make an informed reason for the purchase of the product for instance; to satisfy a pressing need such as recording information or fixing the tight schedule. The professionals also consider paying high prices for brand name, quality and differentiated features. However, they are sensitive to exorbitant prices. The purchasing behaviour of the middle-upper income professionals is affected by internal and external factors. Internal factors include perception, attitudes, motives and need. The external influences such as social groups, business and economic situations affect their purchase behaviour. Their purchase of product is also centered on product quality and satisfaction. The make cash purchases without any transfer payment. They are also focused on products that heathen their social status and go hand in hand with their lifestyle (Klein, 2007).

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SWOT Analysis


Innovative: iPhone is differentiated from other mobile products in the market and patented. iPhone is a mobile device that has all the functions in one gadget.

Compatibility: iPhones through wireless access can be connected to the big screen. In addition it is also well-matched with Mac OS software tools. The compatibility with Mac OS means that the iPhone can be upgraded without any problem.

Brand awareness: Apple Inc. has a well established and known reputation for cool gadgets such as the iPods alongside immense technological innovations such as the original Macintosh.

Price: The iPhone retail price of $ 350 is a reasonable price in relation to its value. The iPhone make outperforms other smart phones and PDAs on the market, and in addition, the convenience of encompassing multiple features in one-device add to its overall value


Image: The Apple Inc. brand has no products that target the needs of the business community, which a considerable number of smart phones companies have targeted. This implies that it does not have a well-known reputation in the corporate world.

Price: Apple retail price is not friendly to price sensitive customers; hence it does not offer models for price conscious purchasers.


Increasing demand coupled with spreading out to a new target segment: As technology, progresses as well as smart phones get cheaper it gives companies with a great opportunity to target those individuals who are in need of entertainment.

Partnerships: Apple Inc. can work in partnership with many commanding global mobile phone manufacturers to flood the target market with iPhones. This reduces costs incurred in marketing along with increasing revenue in the course of long-standing agreement contracts.


Increased competition: Competition can also arise from contractors who can maneuver Apple Inc. patent rights and come up with products that resemble iPhones.

Downward pricing pressure: In the long-run, there will be many entrants in the market; this means that competitive products will enter the market lowering the price of iPhones.

Marketing mix strategy

Product (product brand and quality management)

The iPhone will come along with two types of warranties. The first warranty will cover a period of one year whereas the second warranty, which is optional, will be a care warranty for three years. The packaging should be attractive and tasteful. The iPhone battery should be replaceable and with extended battery life, this will ensure twice as long use of the iPhone (Stone, 2004). The iPhone will also be upgraded to 4G wirelesses to facilitate faster and more incredible internet access speed. The other feature will be GPS functionality to ensure precise information about location and linkage with other software. Improved camera will be necessary to ensure quality video conferencing and detailed pictures. The last but not least feature will be peer-to-peer wireless exchange. Like Zune it will facilitate quick and easier sharing of pictures and music (McDonald & Dunbar, 2004).

Pricing (penetration pricing)

The price for the iPhones set as follows, for the 4gb model it will be sold at a low price of $349 dollars, whereas the 8gb model will be retailed at a price of $399 dollars. The iPhone price will also be lowered in the initially stages to give room for the establishment of market dominance within the shortest time possible.

Distribution (channels and relationships)

The distribution of the iPhone will be a countrywide roll out as well as a worldwide rollout. All the reputable retailers online as well as brick n mortar stores and cellular phone providers will accomplish the rollout. All Apple stores along with the Apple website typically will commit themselves to the new iPhone product.

Marketing and communication (advertising)

All the media advertisement will integrate visual/audio experience together with the message of radical communications. Notably featured to tell between the Apple product against those models with the touch screen functionality. The brand with be emphasized outstandingly and an association established and clearly brought out about the association between iPhone and iPod’s innovative lineage. The ads will be original as well as tasteful. Apple will invest heavily on research on consumer behaviour especially media consumption pattern.

In conclusion, with the advancing technologies and globalization, companies are seeking international markets for business opportunities. This report carries a comprehensive analysis of the US iPhone market, through Apple Inc. The 4P’s strategies recommendations provided will help both the companies maximize their potential in the US market and improve customer satisfaction with the iPhone.

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