Here's why Angela Ahrendts' departure could be a good thing for Apple

Business Insider | 2/12/2019 | Troy Wolverton
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Angela Ahrendts' resignation could end up being a good thing for Apple.

Ahrendts, who headed up the company's retail operations, was charged with remaking Apple as a luxury brand.

Strategy - Prices - Apple - Products - Sales

That strategy has resulted in higher prices for Apple's products, which have depressed sales.

With Apple's revenue falling and its iPhone sales plunging, it could use a new approach.

Angela - Ahrendts - Departure - Apple - Blessing

Angela Ahrendts' departure from Apple may end up being a blessing in disguise for the iPhone maker.

A big part of Ahrendts job was to transform Apple into a luxury brand. But it's just that kind of thinking — and the nosebleed prices that go with it — that's gotten the company in trouble lately.

Revenue - Sales - IPhone - Line - Apple

With revenue falling amid plunging sales of its all-important iPhone line, Apple could use a fresh perspective on its ritzy remake. Ahrendts' resignation gives it the opportunity to get just that.

Apple, of course, has always charged a premium for its products. The original Macintosh was expensive even in its day, compared with rival computers. Consumers had to pay more for the iPod when it launched than for comparable MP3 players.

CEO - Steve - Jobs - Apple - Order

But under former CEO Steve Jobs, Apple recognized that in order to attract a mass market, it needed to offer products at lower prices and it needed to try to keep its prices stable rather than continually ratcheting them up. To broaden the market for the iPod, the company introduced a lower-priced iPod mini and then the budget-priced iPod shuffle. To expand the market for the Mac, it launched the relatively inexpensive Mac mini.

Apple under Jobs also launched the iPad at $500, which was considered an surprisingly low price at the time. And when initial sales of the first iPhone were slower than expected, he worked with AT&T to subsidize the cost, slashing the upfront price and making the device a lot more appealing...
(Excerpt) Read more at: Business Insider
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