APPLE TRYING TO ABONDONING ITS EXPENSIVE IMAGE

 APPLE TRYING TO ABONDONING ITS 

EXPENSIVE IMAGE

For years, Apple customers complain about the "Apple Tax" - the award for similar products from other companies that would have to pay for Apple's design and software.

. Apple is high quality material and more and more, it is sold as a luxury product as well - think of the $ 20,000 Apple Follow Gold.

But Apple's announcement Tuesday, in which it revealed a new low-cost iPad and updated the least expensive iPhone, shows that Apple has begun to compete on price as well. The technical field must take note.

If Apple starts to use its massive cash pile lower than its competitors and deflate entire product categories, which is a big problem.

On Tuesday, Apple lowered the price of a thin, fast and large iPad at 330 $ - a price lower than other similar devices of Samsung, Lenovo and Microsoft. Apple has dominated the market for high-end tablets, and slightly less than many of its competitors Android.

SE Apple iPhone has an update, crashing its storage until the defect 16GB 32GB. It is not a complete update, but shows that Apple is still giving love and attention to their iPhone also cheaper.

Low prices for these upgraded devices follow a trend that independent Apple analyst Neil Cybart pointed out last week: Apple "is making its products more affordable through lower prices."

Examples include AirPods at $ 159, which are priced lower than almost any other wireless headset. It also claims that Apple is underpriced clock - at $ 269, which is cheaper than Samsung's Android options and fossils.

In his excellent analysis, he offers several theories about this change in Apple's strategy. Accessories such as AirPods or the Apple watch could be the loss leader to get more people to buy iPhone, for example. Or Apple could be getting better at making millions of units for a particular product.

But my favorite theory that Apple is pushing for anything so difficult is because CEO Tim Cook wants to push too exclusive. From Cybart:

Segmentation of consumers. Management is using product prices to increase Apple's user base. At one extreme, cut entry-level price management in an effort to make products more accessible. However, management then pushes the other end of the price spectrum with premium SKU intended for a different part of the user base. The Apple SKU global margin help boost profile more expensive.

The current rumor is that the redesigned iPhone plans to launch in September may cost more - like $ 1,000 or more. Part of this is due to the parties involved in it - an advanced 3D sensor, a camera with two lenses, an OLED screen - cost more than their predecessors.

But I suspect another part of it is that Apple is at the same time a luxury brand. It is already in some places, like in China, where owning an iPhone is a bit of a status symbol.

You can also see Apple's fancy ambition and its desire to extend its high-end prices when the Apple watch was launched with a level that costs $ 1,000 or more. Apple sales chief used to work for Burberry, and the recent marketing Apple Follow sees a lot of marketing "emotional product" - more like Gucci and Louis Vuitton by Dell.

Apple

 Apple is already the most valuable public company in the world.

Apple has to sell its products to as many people as possible around the world, in places like India, and it requires a more convenient starting point in order to keep growing.

However, a company valued as richly as Apple also needs to maintain its high margins, and that is why it has also become a luxury brand at the same time - note that the Apple Pro iPad debuted at $ 600, Higher than the iPad 2 is Air replaced nominally.

How Cybart emphasizes, is a game that some other technology companies can play - perhaps Microsoft, with its row of surface. But it also has risks for Apple, if it is seen as a simple fashion company, or existing devices are "good enough" to convince people not to upgrade.

Apple trying to be everything to all people, and while that means low-cost iPad for consumers, it's a big change in the overall apple strategy