Sunday, November 11, 2012

Apple: A Shift in Strategy

In many ways, Apple is under threat from Android. Because of the diversity of available Android devices, Apple is increasingly finding itself losing market share. However, Apple still competes strongly in the area where the most profit is found: high-end devices. Will Android cause Apple to reconsider?

Apple may have tipped their hand with the recent announcement of the iPad Mini. Steve Jobs had claimed that the iPad's large size was perfect for consumers, but a slew of 7-inch Android tablets seemed to challenge this notion. In response, Apple's iPad Mini will boast a 7.9-inch screen.
However, Apple's prices have not yet dropped to Android's level. While 7-inch Android tablets start at $199, the iPad Mini will sell at $329. Apple has long sold their products at high margins, and it appears that they want to continue. The question remains, however: Will Apple be able to sustain their high markup?

Apple Infographic


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