Mba 540 Week 3 Case Study

815 Words4 Pages
Week 3 Case Assignment Analyzing Managerial Decisions iTunes Music Pricing Ch.7 Torrez Moore July 22, 2013 St. Leo University: MBA 540 Analysis Apple’s sales revenue from it’s downloads will increase not just because of the pricing adjustments with their flat pricing price but also the flexibility pricing will definitely increase with the old tracks being priced at a low cost. This will supplement for fewer sales on the new or popular tracks but statics show the older tracks will definitely increase. The increase in revenue from old tracks will supplement for the shortfall on the sale of the new tracks then the less popular and old tracks will balance the load because of increased revenue. Apple’s Computer iTunes Music Store…show more content…
During 2012 the net sales growth reflected the launch of iPhone 4S in the first quarter of 2012 and this is why record companies are complaining about the iPhone using iTunes to download their music. Apple’s ability to demand more iPhone 4S shows the increase in sales and the record companies have the same objectives in mind about increasing revenue. However, during the beginning of 2012 sales were somewhat impacted by the 14th week in the earlier stages 2012 therefore; strong sales of the iPad throughout the holiday’s resulted in a 111% increase especially the iPad unit beginning in 2012 compared to the start of 2011 (United States Securities and Exchange Commission, 2012). The record companies don’t want to give away their music for little of nothing and Apple benefits from their music and other products their selling as well. The increase in sells in the iPhone also led to the increase in sales with the iPad as well. This really solidifies why the record company will not settle for the flat pricing price of Apple policy. Apple ability to control the download of music will definitely not work if Apple doesn’t allow for more flexible pricing. Apple must understand without music to download then there is know extra incentives or revenue that helps them maintain those increases in sales with their iPhones, iPods, or iPads. Apple future with downloads will be just find
Open Document