Apple, the Low Cost Leader

Some of you still believe that Apple and their products are “nice, but over-priced”. This may have been true at one point in history, but your information is old and needs to be updated.

Let me help:

  • So Far Rivals Can’t Beat iPad’s Price (NYTimes, 3/2011)
  • “Would-be rivals to Apple’s iPad have more of a chance in Europe than they do in the United States, but they need to cut prices fast to grasp the opportunity, IT research firm Forrester said on Tuesday. [...] their prices cannot yet compete with Apple, which has far larger scale in the tablet market and an efficient supply chain.” (Reuters 8/2011)
  • “PC makers are struggling to match Apple’s prices” (Daring Fireball, DigiTimes 8/2011)
  • “Something unexpected has happened at Apple, once known as the tech industry’s high-price leader. Over the last several years it began beating rivals on price.” (NYTimes, 10/2011)
  • “The first crop of Android tablets that hit the market failed to come close to the iPad’s entry-level price of $499″ (CNET, 10/2011)


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  1. It depends what you want. If you want a laptop just to connect to the internet, then a netbook or a cheap Windows laptop can do that for a fraction of the price of an Mac book. If you want a tablet to stream Netflix, a Kindle Fire can do that for less than half the cost of an iPad. If versatility is your end game, then Apple is the choice. But for specific functions, you can. get cheaper and similar quality for those functions

  2. The only way it depends, is if you are crossing product categories.

    A tablet is cheaper than a laptop, but it does fewer things, differently.
    A Kindle Fire is cheaper than a tablet, but it does fewer things, differently.
    A digital watch is cheaper than a Kindle Fire, but it does fewer things, differently.

    At it’s core, is the Kindle Fire an e-reader like the original Kindle, or a tablet like the iPad? My guess is that it will be considered a very nice e-reader more than it is considered a cheap tablet. Time will tell though, what the pundits compare it against.