Amazon is losing money per device and Google is going to make nothing on their tablet. Can Apple get the margin needed in this market?
I think Apple have several
aces up their sleeves here:
- (Sir) Jonny Ive and the Apple design team.
- The ability & desire to sell premium products (in terms of the actual build quality).
But, I think the biggest one they have is in Tim Cook, as he is a supply chain & logistics guru.
It's no coincidence IMO that there were not the shortages of yesteryear when it came to the iPad 3 release and I'm sure the same will apply when the next iPhone is released.
If anyone can put out a product, with high/top end build quality and design
and for this supposed nirvana of £200/£$300, then it's Apple with Tim Cook at the helm.
I'm fairly sure that most people given the choice, would take a smaller/cheaper Apple iPad over an Android/Amazon tablet and Apple realise that I'm sure.
They also realise, that the more people they can get into the Apple ecosystem in the short term, the more people they can "up sell" to in the long term.
How many people here started off with one Apple product, decided they were great and added to their collection?
I did, that's for sure.
I started with an iPhone 2G, then to a 3G (when the 3GS was launched), then to a 4 on launch day and then a 4S about 6 weeks ago (thanks to a freebie from my network provider, although I probably would have stuck with the 4 in honesty until the 5 came out).
I also added an iPad 1 2 years ago, sold that in February this year and got an iPad 3 in March.
Add to that a 27" iMac in January of this year (complete game changer for me) and I'm now thinking of getting myself a (refurb) MacBook Air.
I reckon I'm a
fairly typical Apple owner in that respect and although I don't personally have a want/need for a smaller iPad, if I was Tim Cook I would certainly be aware of how many people were buying 7" Android tablets.
Not because they specifically wanted an Android tablet over an ipad
per se, but because they want/need a tablet, but they can't afford to spend £300/£400 on an iPad.
That's a massive untapped market for Apple and as I say, the more people they can get onto an Apple product, the more people they have to sell the rest of their products to (not to mention, it's one less person buying an Android device-whether it be a tablet or a phone).
Isn't it true what they say-
"One you go Mac, you never go back"!?