Apple cannot even compete in that range. They desperately need something in the cheaper space. They had a range of mp3 players and as a strategy. if was very successful.
Of course they could compete, they have about 50% margin on the cheapest ($500) iPad. They could sell it for $300 and easily kill off the rest of the low end market; but why would they want to play in that space? They are making something like 90% of the profits in the tablet market (with a 60% market share), why would they want to race to the bottom and reduce their overall profits? They have a high-margin business model, and it works very well.
They are also selling plenty of $300 iPods Touch, if they reduced their cheapest iPads they would start to cut into that market. They are more interested in maintaining price points within their own product line than competing with weak external markets.
Android's market share rose up from 29.0 per cent in Q4 2010 to 39.1 per cent in Q4 2011. Apple's unit shipments in Q4 2011 increased 111 per cent year on year, but Android's were up 234 per cent. Full-year shipments totalled 66.9m tablets, up 260 per cent from the 18.6m units that shipped in 2012.
Thats now!
If your suggesting that Apple somehow win by being able to sell the highest margin device. I would suggest the brighter people are buying the better value devices :)
Of course androids percentages went up, they started from almost nothing and went down-market with very cheap devices. Your numbers don't really make sense, but you appear to be counting all android based tablets together. In that case, you are comparing the 10 million devices shipped by all android vendors to the 15 million iPads sold in the last quarter of 2011 (note that many of those shipped devices are still sitting on store shelves).
So the iPad has 60% of the market and all the others combined have 40%. I assume those numbers also include all those $99 Touchpads that were dumped on the market last year when HP pulled the plug? As I said, that's a good start. However, I would like to see one of these vendors come up with a competitive device in the same market as the iPad; some competition would be good for everyone. At this point, it's still apples and oranges (so to speak).
The android devices are currently filling a portion of the market that apple will never bother with because the margins are much too low. There will always be "cost conscious" consumers who will shop in that space; I'm glad someone is serving that market. These are the same folks who were buying netbooks a couple of years ago, and will probably be buying "ultra-books" if they ever get cheap enough. It's tough to make a profit at the bottom of the market.
Except that it requires admitting that you are playing catch up. It also requires the public to believe that both you and the competition are selling commodity items. It works for rental cars (we're number 2, we try harder) and auto insurance because the public believes these products are interchangeable, and they are only interested in finding the lowest price.Comment is buried, click here to see the rest.
It's always good to be the one that everyone is chasing. That's much better than being the one that the competition is ignoring because they don't even consider you to be a threat.Comment is buried, click here to see the rest.
Why is Amazon chasing? Apple are not even going to try and compete with this tablet. Seriously Android is good OS with strong underpinnings. Amazon store is mature. This is going to catch the attention of a whole lot of people who do not think a Apple is worth a 60% markup on a device. The threat is if they compare features...I think most people will think the brand alone is worth nothing.Comment is buried, click here to see the rest.
I hope that amazon (or one of the other android or windows vendors) does come up with a decent tablet at some point. I'm betting that windows will get there first. The fire looks like a good start, but it's still just a glorified book reader (it's primary purpose is to sell amazon's content). The amazon store is also good, I buy kindle books for my iPad kindle app all the time. Competition is good for all the consumers, I'm curious to see what the new windows tablet will look like.Comment is buried, click here to see the rest.
Take of those rose coloured glasses. The tablets battle has barely begun and Apple is behind the competition already.. The fire is simply a no thrills version competing on price on features.Comment is buried, click here to see the rest.
The Kindle Fire is off to a decent start, last quarter they sold about 5 million devices for $200, compared to about 15 million iPads for $500-800. They seem to be the first tablet that wasn't immediately crushed. They generated about one third the sales, and about one tenth the revenue of the iPad last quarter, that's not bad for a newcomer.
We will see how the sales numbers look after a few quarters. More importantly, we will see how the profits look (assuming the Fire isn't being sold at a loss to generate content sales). We will also see how the new windows tablet impacts both of these devices. Personally, I think the windows tablet will be more competition than any of the android devices in the long term because it will probably have a more complete feature set; but we will have to wait and see.Comment is buried, click here to see the rest.
I expectation that amazon (or one of the separate android or windows vendors) does come up with a decent tablet at whatever taper. I'm betting that windows faculty get there premier. The terminate looks equivalent a advantage play, but it's solace vindicatory a glorified fact pressman (it's special resolve is to trade woman's volume). The woman outlet is also acceptable, I buy enkindle books for my iPad conflagrate app all the experience for all the consumers, I'm snoopy to see what the new windows tablet present visage like.
southsideirishFeb 11, 2012Buried
I know. The best money Apple ever spent on a ad. Doh! Wait! How could Jeff be so dumb?
nitoriFeb 11, 2012Buried
It's an old sales tactic and there's nothing wrong with it.
wilhoitmFeb 11, 2012Buried
Don't hate the player, hate the game!
moducFeb 11, 2012Buried
$300 Amazon pad with most of ipad features will make Apple pee in their pants and lawsuit start to fly
tuppe666Feb 11, 2012Buried
Apple cannot even compete in that range. They desperately need something in the cheaper space. They had a range of mp3 players and as a strategy. if was very successful.
craig1958Feb 12, 2012Buried
Of course they could compete, they have about 50% margin on the cheapest ($500) iPad. They could sell it for $300 and easily kill off the rest of the low end market; but why would they want to play in that space? They are making something like 90% of the profits in the tablet market (with a 60% market share), why would they want to race to the bottom and reduce their overall profits? They have a high-margin business model, and it works very well.
They are also selling plenty of $300 iPods Touch, if they reduced their cheapest iPads they would start to cut into that market. They are more interested in maintaining price points within their own product line than competing with weak external markets.
jasonisjasonFeb 11, 2012Buried
I say you get what you pay for...
tuppe666Feb 11, 2012Buried
Absolutely a product with the highest margins in the electronic industry...or a product heavily subsided trying to seduce you into buying content.
tuppe666Feb 12, 2012Buried
Android's market share rose up from 29.0 per cent in Q4 2010 to 39.1 per cent in Q4 2011. Apple's unit shipments in Q4 2011 increased 111 per cent year on year, but Android's were up 234 per cent. Full-year shipments totalled 66.9m tablets, up 260 per cent from the 18.6m units that shipped in 2012.
Thats now!
If your suggesting that Apple somehow win by being able to sell the highest margin device. I would suggest the brighter people are buying the better value devices :)
craig1958Feb 12, 2012Buried
Of course androids percentages went up, they started from almost nothing and went down-market with very cheap devices. Your numbers don't really make sense, but you appear to be counting all android based tablets together. In that case, you are comparing the 10 million devices shipped by all android vendors to the 15 million iPads sold in the last quarter of 2011 (note that many of those shipped devices are still sitting on store shelves).
So the iPad has 60% of the market and all the others combined have 40%. I assume those numbers also include all those $99 Touchpads that were dumped on the market last year when HP pulled the plug? As I said, that's a good start. However, I would like to see one of these vendors come up with a competitive device in the same market as the iPad; some competition would be good for everyone. At this point, it's still apples and oranges (so to speak).
The android devices are currently filling a portion of the market that apple will never bother with because the margins are much too low. There will always be "cost conscious" consumers who will shop in that space; I'm glad someone is serving that market. These are the same folks who were buying netbooks a couple of years ago, and will probably be buying "ultra-books" if they ever get cheap enough. It's tough to make a profit at the bottom of the market.
tuppe666Feb 11, 2012Buried
Kindle still sell awful well. I suspect its a "gateway tablet" :)
tuppe666Feb 11, 2012Buried
It needs pointing fun it the iPad is simply too much money...and the higher level Android devices even with their better specifications.
michrechFeb 11, 2012Buried
As indicated in the article, I don't think this will work very well for Amazon. They're comparing an Apple to an Orange...
craig1958Feb 11, 2012Buried
Except that it requires admitting that you are playing catch up. It also requires the public to believe that both you and the competition are selling commodity items. It works for rental cars (we're number 2, we try harder) and auto insurance because the public believes these products are interchangeable, and they are only interested in finding the lowest price.Comment is buried, click here to see the rest.
craig1958Feb 11, 2012Buried
It's always good to be the one that everyone is chasing. That's much better than being the one that the competition is ignoring because they don't even consider you to be a threat.Comment is buried, click here to see the rest.
tuppe666Feb 11, 2012Buried
Why is Amazon chasing? Apple are not even going to try and compete with this tablet. Seriously Android is good OS with strong underpinnings. Amazon store is mature. This is going to catch the attention of a whole lot of people who do not think a Apple is worth a 60% markup on a device. The threat is if they compare features...I think most people will think the brand alone is worth nothing.Comment is buried, click here to see the rest.
craig1958Feb 12, 2012Buried
I hope that amazon (or one of the other android or windows vendors) does come up with a decent tablet at some point. I'm betting that windows will get there first. The fire looks like a good start, but it's still just a glorified book reader (it's primary purpose is to sell amazon's content). The amazon store is also good, I buy kindle books for my iPad kindle app all the time. Competition is good for all the consumers, I'm curious to see what the new windows tablet will look like.Comment is buried, click here to see the rest.
tuppe666Feb 12, 2012Buried
Take of those rose coloured glasses. The tablets battle has barely begun and Apple is behind the competition already.. The fire is simply a no thrills version competing on price on features.Comment is buried, click here to see the rest.
craig1958Feb 12, 2012Buried
The Kindle Fire is off to a decent start, last quarter they sold about 5 million devices for $200, compared to about 15 million iPads for $500-800. They seem to be the first tablet that wasn't immediately crushed. They generated about one third the sales, and about one tenth the revenue of the iPad last quarter, that's not bad for a newcomer.
We will see how the sales numbers look after a few quarters. More importantly, we will see how the profits look (assuming the Fire isn't being sold at a loss to generate content sales). We will also see how the new windows tablet impacts both of these devices. Personally, I think the windows tablet will be more competition than any of the android devices in the long term because it will probably have a more complete feature set; but we will have to wait and see.Comment is buried, click here to see the rest.
singgihsetiaFeb 12, 2012Buried
I expectation that amazon (or one of the separate android or windows vendors) does come up with a decent tablet at whatever taper. I'm betting that windows faculty get there premier. The terminate looks equivalent a advantage play, but it's solace vindicatory a glorified fact pressman (it's special resolve is to trade woman's volume). The woman outlet is also acceptable, I buy enkindle books for my iPad conflagrate app all the experience for all the consumers, I'm snoopy to see what the new windows tablet present visage like.
info-pcgame.blogspot.comComment is buried, click here to see the rest.