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14 posts tagged Pricing

14 posts tagged Pricing
Completely agree with this. Essentially, but refraining to allow trials, demos and the like in its App Store, Apple is forcing developers to lower their price in order to entice users to buy their apps.
If you can’t price it, don’t bother trying to ship it…
“The people that the company is trying to attract with the new products aren’t those who may otherwise look at an Android device because they want a tablet. They are the ones who want an iPad but end up looking at alternatives because the iPad is too big, and the various iPods and iPhones too small.”
“I’ve been waiting for a smaller iPad for a while so I’m likely buying one. But, the price point do make me still want a Nexus 7. Maybe I’ll just get both.”
If you think the 329$ price tag for the iPad mini is too high, first go read this article from TechCrunch right now. Then, come back.
Is short: Apple’s branding has a price. Apple doesn’t compete the low end on the price. If they can’t create a device with respect to their usual margin, they won’t do it. Apple is an hardware company so they build devices that are profitable to sell. Any question?
Pay no attention to the headline of their press release, Amazon had a bad quarter. They’ve been warning about dipping into the red for a few quarters now and have narrowly avoided it each time. No more.
The company lost $274 million on sales of $13.81 billion. Yes, you read that right. Sure, a large part of it was due to the disaster that is the LivingSocial deal (a loss of $169 million as part of a goodwill write-down), but they still lost over $100 million when you take that away.
I’m sure Apple is really regretting not selling the iPad mini at Kindle Fire prices right now.
See what happens when you sell hardware at lost? Amazon sees it right now.
Did you notice that Apple didn’t play to hard the game of the iPad mini as a e-reader? They rather emphasized the multi purpose nature of their new small device. Why you might ask? Well, very simple.
You can’t compare the iPad mini with more than 275 000 apps available on day one with other small Android-based tablets with so few optimized applications. By emphasizing the iPad mini versatility and the fact that it is still an iPad with all its glory, you place yourselves in a position to ask more, hence the 329$ starting price.
It is too easy to say that Apple came out with an iPad mini to compete against other 7” tablets. Yes Apple compared the mini with the Nexus but it was to make their point regarding the screen size and the content we happen to see on the screen while browsing the web. The comparison stops there.
“The difference is as significant as it is subtle; Apple’s play has always been to create premium products and sell them at premium price—the expression I’ve often heard floating around is “affordable luxury.” Markets that they cannot penetrate on these terms are either abandoned, or never entered in the first place.”
(via chartier)
Some people seems to be confused by this apparent pricing overlap. The question seems to be: why buy an iPod touch 299$ when you can have an iPad mini for just 30$ more? Others think the entry level iPad mini is too high and should have been at 299$. If you look at the product lineup of the iPod touch and the iPad, you’ll come to the conclusion that they are pretty crowded. Apple used to kill older products when introducing new generations. We can still buy the 4th generation iPod touch and the 2nd generation iPad. I’m confused. In the end, maybe Apple just want you to consider buying both, an iPad mini and an iPod touch u til they clean up inventories or remove older devices from the lineup.