Tuesday, August 7, 2012

Mobile: Apple's Range of Products and Pricing Suck Up Demand From Mobile And Laptop Competitors

Tim Cook is a master of the supply chain as many attributed Apple's ability to move quickly to new technologies while managing to scale relatively quickly to meet demands and keeping its profit margins high.  But Apple's long-term strategy to provide mobile warriors with a wide selection of devices covering a a range of prices could be what will lead the company to eventually dominate the mobile market - and I'm talking about mobile devices like tablets as well as laptops.

Here's is some of why this could happen as discussed in this CNET post.  The gist is that Apple has the high-end covered with the Macbook Airs and the current price range of the ultrabooks of $800-900 occupied by the ultrabooks also sits the high-end iPads.

Obviously, ultrabook buyers will go with the Intel-based laptop because they need something that is more traditional than just the tablet but the iPad is increasingly gaining traction as a producitvity device.  And sales of Windows laptops are affected by the rising waves of iPad adoption at work, home, and school.

On the low end where $200 tablets remain unharassed by the iPad, it likely won't be when Apple does release a device to compete in that $200-$300 range.

Personally, I am quite content with my late-2010 Macbook Air and the only reason I'll have to upgrade in a couple of years is if OS X moves beyond what my little workhorse can handle or there are few features in new Macbooks that I absolutely need.  Oh, and longer battery life.

Until then, I'll likely look to upgrade my iPad and pass my old one onto some lucky relative.

So, it is becoming very clear that Apple has build a system of apps, media, and hardware that are so closely knitted together that once you get a foot in the door, you will find it hard to pull back.  And Apple has price things so perfectly that it provides for the need of a wider range of consumers while making it very hard for competitors to complete.

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