Quantitative Research Methods Online Tutoring

Background

Steve Jobs the founder of Apple Inc, launched “a revolutionary mobile phone” in 2007 known as the famous iPhone. It was one of the first 3in1 phones with special features including an iPod, touch control and internet, offering a “better experience”. “ iPhone’s market share remained 3^rd largest on the global Smartphone market, shipping 41.3 million units in 2019” (refer to Counterpart).

Research Issue

Sales figures have seen a steep decline from 2019 to 2020 “iPhone sales in Feb 2020 were 494,000 compared to 1.3million iPhone sales in Feb 2019” (refer to Fortune). This study will provide an understanding of the reasons for the decline in sales, if the Pandemic of Covid19 has had a direct impact on the sales figure or is it a matter of consumer choice?

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Research Question and Objectives

The aim of this investigation is to better understand why there has been a decline in sales of iPhone’s worldwide in 2020. A consumer survey will help understand why the change arose, for example, is it due to change in customer buying habits, aggressive competitor advertisement or negative media coverage?

iPhones have been the hardest hit as production halted, factories, stores closed worldwide and public uncertainty increased during the Pandemic of Covid19 as online sales also saw an “overall 61% decline” (Quartz article).

Conversely, “1.1million flatscreen TV’s were purchased during April 2020” just after the government announced the ‘stay at home orders’. This suggests the decline may be in electronic goods perceived by consumers as non essential as opposed to all electronics as consumers aim to avoid unnecessary purchases and upgrades (refer to Quartz article).

The research will indicate if the decline is due to customers desire to hold on to the phones for longer as the headsets are of better quality, expensive and have a longer life span than average Smartphones. Therefore, it could be considered that iPhones selling points may well be its own weakness. In addition, add ons/accessories are expensive, some upgrades have been discontinued causing an uncertainty amongst customers.

In order to provide a comprehensive report to senior management on the causes of the decline and propose recommendations to improve sales, this study will solve the following research questions:

1. Has the Pandemic of Covid19 contributed to the decline in sales of the iPhone in 2020?
2. What are the main factors that influence consumer buying when purchasing iPhones?
3. Has the long shelf life of an iPhone contributed to the decline?

I believe this research will allow informed R&D and better understand the evolving change in consumer behavior and will help Apple make strategic decisions and better prediction in this uncertain and challenging new environment.

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Reference List

Counterpoint Market Research Monitor 2019-2020 Q1 figures, “Global Smartphone Market Share”, https://www.counterpointresearch.com/global-smartphone-share/ viewed on 15^th Jun 2020

Fortune, article by CAICT, on “iPhone’s sold in China” by Don Reisinger https://fortune.com/2020/03/09/apple-iphone-china-coronavirus-sales/viewed on 1^st Jun 2020

History of Apple Inc. https://en.wikipedia.org/wiki/History_of_Apple_Inc. viewed on 1st Jun 2020

Pocket-Lint, information about Apple, www.pocket-lint.com viewed on 1^st Jun 2020

Quartz Article “Apple’s earning’s tell the story of a global Smartphone demand shock” by Amrita Khalid ,1^st May 2020; Quartz article, online https://qz.com/1849696/apples-drop-in-iphone-sales-are-part-of-a-global-demand-shock/ viewed 1^st June 2020

Quartz- illustration/table of “Apple’s earning’s tell the story of a global Smartphone demand shock” Quartz article, online https://qz.com/1849696/apples-drop-in-iphone-sales-are-part-of-a-global-demand-shock/ viewed 14th Jun 2020

 

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