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Iphone 6 / Apple watch strategy

http://www.bbc.com/news/technology-29128083
http://money.cnn.com/2014/09/12/technology/mobile/iphone-6-plus-preorder/index.html

Around this time of year as usual is when Apple releases their new line of iphones, and this year we are presented with the iphone 6 and iphone 6 plus. Unexpectedly though, Apple revealed a watch device to go alongside with the release of the new iphones, and though while there is a degree of novelty to the watch, it isn’t exactly breaking any grounds. What I mean is that Samsung has already released a similar watch product. Additionally, it seems that the new iphone 6 and 6plus’ selling point is relatively simple: a larger screen and an even larger screen. Besides more physical area to work with, there isn’t anything particularly ground-breaking to the new iphones, just the standard performance increases and camera upgrades, etc. Yet apparently the iphone 6plus, according to CNN, has already managed to sell out.

What’s interesting here, or at least as I see it, is that Apple is really only mimicking Samsung; they are only really making the iphones’ screens larger which was a strong selling point of the Samsung galaxy series over the previous iphones. First, in the context of Game Theory, corporations competing against each other is an overall dominant strategy. Companies could agree to have same high prices, but there is incentive for personal gain as lowering one’s price in comparison to a rival company’s would surely increase their market share. Thus companies competing against one other becomes an overall dominant strategy. Apple here, by mimicking Samsung’s trend in larger touchscreens, I believe is Apple best responding to Samsung’s own strategy, which is to do the same thing. Like in a sail boat race, 1st place only needs to do what 2nd place does in order to stay ahead; they would have more or less the same wind conditions, speeds, etc. While not implying that Apple is in first place, it shows that mimicking a competitor will help Apple’s sales, which seems to be evident in the selling out of iphone 6 pluses.

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