figures: 9-inch tablets and less total more than 60% of global sales, and this segment is characterized by aggressive price. Increasing by 20% the price of the iPad Mini, Apple does not he made a strategic error for the sole purpose of securing income in the short term
Apple is it with the iPad being the mistakes of the past when with the Mac it is positioned in the premium against the PC? It is believed that the particular firm Canalys. And he is not alone in believing that the strategy of maintaining high prices – even to increase them as the iPad Mini. 2 – is not the most sustainable solution for Apple
iPad Mini, launched in 2012, was a defensive product for Apple faces fierce competition of tablets sold at much lower price 7 inches. Since its introduction on the market, Apple’s profit margins on the shelves have been reduced, as the average revenue per iPad (U.S. $ 436 in the third quarter, against $ 538 a year earlier).
competition in the tablet segment less than 10 inches is far from being abated since. In the second quarter of 2013, the 9-inch models and less accounted for 68% of global sales according to Canalys. And growth is definitely in this segment.
Therefore, increasing from 329 to 399 dollars the price of the iPad Mini, Apple does not he take the risk of losing even more ground in a market where its market share has been steadily to decline in recent quarters? Even if the price increase should allow at least stabilize its income?
Between the second quarter of 2012 and the second quarter of 2013, the share of Apple in the tablet market according to IDC increased from 60.1% to 32.4%. In the last quarter, iPad sales actually fell for the first time (14.1%), in a global market that was moving him to nearly 60%.
But if analysts criticize the premium positioning of Apple, in this competitive environment, it is also because it has a direct impact on the market share of iOS. On tablets, the Apple platform is more dominant since the beginning of the year. All terminals, the market share of iOS also sold a lot of ground in the Android pressure.
But Apple also needs a strong iOS as the company derives significant revenue from its ecosystem. More users with it are potential consumers of services and applications on which Apple makes money directly or fee commissions. But the only down the PDM iOS is it likely to weaken the ecosystem? It remains to be seen.
At first glance, Apple’s premium policy can be seen as detrimental to the brand. The manufacturer is in fact faced with a dilemma – and a contradiction of financial analysts. Business Insider does not fail to note.
Apple realized margins and higher profits. Engaging in a price war, Apple would look after its market share, including iOS, but penalize margins and profits, which would not fail to displease investors. And these investors have not already failed to penalize Apple stock market precisely because of pressure on sales and profits.
market tablets and PC same fight?
In addition, Apple can really win on price without completely change his style? And are there really a point? This is by no means guaranteed. The GFK has indeed warned repeatedly about the adverse effects of low-cost turn the tablet market.
France, the sharp drop in the average price of tablets has led to a rapid growth in sales. But the result is also a risk of value destruction, and in the short term. According to GFK, whether by volume, the tablet market is expected to grow in 2014, in contrast value should decline.
However, the tablet market is not simply a decomposition into two categories: high-end, which belong to Apple, and low end where the majority of manufacturers. With the Nexus 7 V2, Google shows that it is possible to propose a terminal quality at a very affordable price.
The question is whether Apple products still have assets sufficient to justify a premium to purchase. In maturation phase and characterized by the increasing prominence of the purchase price as a factor, the tablet market is not it have to look more and more PC market
market where Apple is certainly profitable, due to a premimum, but when it finally occupies a small place, a niche (Mac OS = 5% of OS PC Mac sales accounted positioning 4.8% of PCs sold in 2012, but still 21.142 billion dollars in sales).
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