Apple has a reputation for breaking new ground. With the introduction of the new iPhone 6, they can now lay claim to the best opening sales figures of any product line.

In just the 3 days, Apple sold an incredible 10 million units of the new iPhone 6…

As CEO Tim Cook remarked:

“Sales for iPhone 6 and iPhone 6 Plus exceeded our expectation for the launch weekend, and we couldn’t be happier.”

Way to go, Tim!

What makes this truly remarkable is the fact that Apple has achieved this selling a product that – superficially at least – competes with products that sell for a tenth of the price!

It’s a useful lesson for anyone who believes that undercutting the competition is the only way to build market share.

For Apple, positioning the iPhone 6 as a premium product has been key to its marketing strategy. After all, price is one of the main ways we determine the relative quality of a product…

Apple has ignored the “conventional wisdom” for pricing while still outselling the competition.

However, a high price tag alone isn’t enough to create long-term success.

This is, after all, the sixth version of the iPhone. Apple has maintained those high prices by delivering an exceptional product time and time again.

Here are a few takeaways from their resounding success:

Knowing What the Customer Really Wants

Apple realized that consumer electronics are about more than just functionality…

People want them to look and feel good too.

Apple was the first to recognize that making their devices look and feel great was key for differentiating themselves from their competitors.

Apple doesn’t just sell a better product…

They also deliver a superior experience.

Build Your Tribe

Despite the huge sales numbers for the iPhone, Apple still isn’t trying to sell their product to everyone…

In fact, iPhones only constitute a relatively small portion of the smartphone market.

According to Forbes, 4 out of 5 smartphones shipped in 2013 used an Android operating system.

Apple understands who their buyers are, and makes sure to deliver exactly what they want. Apple fans are at the core of the marketing strategy for iPhone.

These buyers have disposable income, are technically savvy, and fanatical about Apple products.

Witness the “lengths” they will go to be the first to buy the iPhone 6:

Don’t Commoditize Your Product

In the past, personal electronics were marketed by listing the number of gigabytes or RAM.

Apple instead explained the benefit of its product in language that anybody could understand.

When marketing the iPod, it was “1000 songs in your pocket.”

For those interested in the technical specifications, that information is certainly available on the sales page.

The difference, though, is that unlike other smartphone brands, Apple doesn’t commoditize their products by relying solely on those specifications, or by putting them front and center in the marketing material.

Create Your Own Category

Finally, Apple has been careful to brand their products.

An important distinction is that, well, you don’t purchase a smartphone, you buy an iPhone.

It has its own name.

No other smartphone manufacturer has managed to create their own category in this way.

Apple doesn’t have to cut their prices to sell their iPhones because, quite simply, they are the only game in town…

A “market of one” as Dan Kennedy says…

Plenty of companies make smartphones, but they are the only people who make iPhones – it’s as simple as that.

The iPhone 6 provides a useful blueprint for any business looking to increase sales without cutting prices…

As long as they’re willing to truly differentiate themselves.

In your corner,

Charlie