IPad 1,2 is an enlarged version of the iphone Apple is a profiteers

Article Description: The IPhone proves Apple's ability to innovate.

Where are the iPad2 cows? The screen is big, the aluminum crust is very hard and the electricity is long.

Big, hard and enduring is really good, but please let me ask this girl who hasn't found her boyfriend, allow me to say:

IPad2 's biggest feature is: cheap .

All right, we're talking about features that the IPad generation has. However, iPad2 upgrade is not very, the biggest surprise is to see the leader, and IPad2 no relationship. These upgrades are not going to go beyond rivals or even shut up the Android fans holding Xoom.

And the price of 499 dollars should be satisfactory to everyone. Jobs purposely put Xoom's 799 dollars out on a run.

When the IPad was launched, everyone exclaimed that it was cheap. Almost no one expected to go up and down 500 dollars. The analyst at the Flower market even said that if it were 500 dollars, it would be crazy. Indeed, the IPad has won 95.5% of its market share. 15 million units sold throughout the year.

The iPad2 task, it seems, is to keep the iPad in the mainstream tablet configuration while keeping the price low.

Why is price important?

Critical Capacity

The product enters the brand-new market, has a critical capacity (critical mass).

For example, Japan's digital TV (Japan is mainly LCD TV). 2003 can be bought, but from 03 to 06 in 4 years, sales were flat, less than 20% households bought digital TV. But 07-10 years, the same four years, the penetration rate has suddenly surpassed 70%. (2011 years analog signal off the air factor)

Once the product occupies a market beyond a point, the rear is the big explosion of sales. This point is the critical capacity.

Restrictive Pricing

2003 Digital TV is very expensive: first market manufacturers can use the leading edge to increase the price. This is what the ipad's previous tablet makers did.

However, the IPad sells very cheaply in addition to its new experience. To what extent is it cheap? The 10-inch cottage has been rarely seen in North Huaqiang. Even they are hard to spell with Apple.

Not only did Apple preempt the market, but it also adopted restrictive pricing (limit pricing): The price was so low that it was hard to make money when people entered the market. (even Samsung's 7-inch plate cannot compete with the IPAD for its selling price)

The introduction of IPAD2 successfully ensured the validity of "restrictive pricing".

Cost Leadership

On the other hand, Apple has a cost advantage by squeezing suppliers and manufacturers on a scale. It is not impossible for iPad2 to have a lower cost than the iPad because of the further expansion of the procurement and stronger bargaining power.

Lower costs mean lower prices or more profits, and they can give Apple more advantage in dealing with the enemy.

Obviously, in the tablet market, Apple is using a cost-leadership strategy: expanding at low prices, expecting critical capacity and detonating the market. At the same time, the use of scale to reduce costs, enhance competitiveness, by low prices to prevent opponents admission.

So far this strategy has been successful. The iPad is not as cheap as a tablet before, and no tablet can sell 15 million units a year. Now analysts at Flower Street think that iPad2 sales of more than 40 million units this year is not a dream.

30 million of the netbook market has let everyone squeeze the head, the rapid expansion of the tablet market is everyone's coveted. But Apple rivals have found it difficult to get into the market. App numbers go beyond the App Store and don't expect it. Reduce costs to the same level as iPad2? I'm afraid it's not much easier.

Lock

The word is more understandable: a hold-up. Locking users from Windows to SAP is an essential step in making a lot of money easy.

Since Apple is aiming at a large group of users, of course, it will not forget this.

The Apple ID is a lock. Registering Apple IDs is a hassle, and I'm sure few people like to do it for the second time. Apple in the app Store for developers to emphasize registration, up to the use. And on their own products? IOS devices without an Apple ID are hardly a smart product (jailbreak is another matter).

The various settings of the IPAD position, all kinds of gestures are also locked. The more you use it, the more you will not be willing to open the platform.

Apps is also locked. You have to pay the Apps for the fee of real money. These Apps are not available on Android. The longer you use an apple, the more apps you buy, and the higher the price you will pay to move to another tablet.

Last Words

The IMAC proved the taste of Apple's design. The iphone proves Apple's ability to innovate, and the IPad 1,2 the iphone's enlarged version? Proves Apple's economic foundation.

Apple is not just a sentimental artist, a skilled engineer, but a shrewd, quick-and-vicious businessman.

He skillfully used various economic methods to achieve his goal. The IPhone is a successor to the smartphone market, but it's revolutionary, so a price war is not a bargain. The IPad, which is more like a leading pioneer and has a smaller technology gap with its opponents, has opted for a completely different strategy: using low prices to quickly expand and occupy the market while locking users.

In China, people call this kind of person as:

profiteers .

(however, see the leader run opponents still very gratifying, by this article wishes his old people always healthy. )