Why did Apple change its strategy? The case of the iPhone: adoption of a new technology and trade-in programs in the context of innovation

Abstract

The study is about the evolution of the iPhone since its first launch in 2007, with particular regard to the social context in which it has taken place and the consumers' response to the adoption of new models after their introducion. The strategic choices and the trade-in programs policy introduced by Apple were studied with the help of an agent-based model, in order to evaluate optimal pricing strategies and market shares' dynamics in a transition from an old technology to a new one.