Apple makes great products which are generally overpriced for what you get. Apple can charge a premium and I don't expect them to do otherwise. Thats every public companys mission, maximize shareholder return. So while I'm sure they'll sell a ton of Mini iPads to every Apple fanboy out there (and there are a lot of 'em) and rake in the $$, the risk is a continuation of Apple's smart phone and tablet market share declines.
Think about it, no company can get components as cheap as Apple who can lock down suppliers with their huge orders. Apple could have priced the Mini iPad at $199 or $225 and immediately shut the door on all compeititors. Game over. Instead Apple went with ultra-premium pricing and missed the opportunity.
My iPad's too big to lug around and my Fire which is fine for books and vids doesn't do surfing or email well, so I've been waiting for Apple's Mini iPad release before making a buying decision. I'd love a Mini iPad but not at those price points. Had they priced it compeitively or with a slight premium ($225-$275) I'd pick one up. But given the huge price differential the Nexus 7 at $199-$225 is a bargain. As good? No, but almost...and with the Mini iPad costing over 50% more than a Nexus it's a no-brainer.
While over the last 4 or so years Apple has been in the drivers seat in both the smart phone and tablet markets, competitive pressure is taking a toll. Apple's been forced to respond to competitive pressures with its last recent big releases: The Bigger iPhone 5 and the Mini Tablet.
With incredibly long (1 yr) product launch cycles each future iPhone and iPad Apple product launch is crucial where a misstep could be disastrous. This is making Apple overly cautious with regard to innovation. With a dozen or more competitors, all willing to place risky bets on product functionality hoping for a homerun, Apple is falling farther behind from an innovation standpoint. Apple seems to be playing it safe by delivering marginal incremental improvement (little thinner, little faster, little lighter, better screen) when customers are demanding head turning innovation. Queue the Samsung TV ads...
I still like Apples products and Ill probably buy a few more over the next couple years, but they sure arent nearly as compelling or the obvious choice they used to be.
With a closed ecosystem, premium prices and extremely slow product cycle I see a huge 1980s déjà vu heading Apples way.
Think about it, no company can get components as cheap as Apple who can lock down suppliers with their huge orders. Apple could have priced the Mini iPad at $199 or $225 and immediately shut the door on all compeititors. Game over. Instead Apple went with ultra-premium pricing and missed the opportunity.
My iPad's too big to lug around and my Fire which is fine for books and vids doesn't do surfing or email well, so I've been waiting for Apple's Mini iPad release before making a buying decision. I'd love a Mini iPad but not at those price points. Had they priced it compeitively or with a slight premium ($225-$275) I'd pick one up. But given the huge price differential the Nexus 7 at $199-$225 is a bargain. As good? No, but almost...and with the Mini iPad costing over 50% more than a Nexus it's a no-brainer.
While over the last 4 or so years Apple has been in the drivers seat in both the smart phone and tablet markets, competitive pressure is taking a toll. Apple's been forced to respond to competitive pressures with its last recent big releases: The Bigger iPhone 5 and the Mini Tablet.
With incredibly long (1 yr) product launch cycles each future iPhone and iPad Apple product launch is crucial where a misstep could be disastrous. This is making Apple overly cautious with regard to innovation. With a dozen or more competitors, all willing to place risky bets on product functionality hoping for a homerun, Apple is falling farther behind from an innovation standpoint. Apple seems to be playing it safe by delivering marginal incremental improvement (little thinner, little faster, little lighter, better screen) when customers are demanding head turning innovation. Queue the Samsung TV ads...
I still like Apples products and Ill probably buy a few more over the next couple years, but they sure arent nearly as compelling or the obvious choice they used to be.
With a closed ecosystem, premium prices and extremely slow product cycle I see a huge 1980s déjà vu heading Apples way.
