When Apple announced its first iPad in 2010, the Wall Street consensus expected the price to be above $900. The device that gave birth to the modern tablet industry instead debuted at $500, shocking many observers. Yet despite the notably low initial price, Apple’s iPad sales lost their growth momentum in 2013 and by the beginning of 2014, Apple was reporting declining sell-through volumes. What happened? The flood of $200 Android tablets and phablets sucked the growth out of iPad sales in about three years, largely because Apple refused to offer substantial price cuts to even the most basic iPad. Obviously, Apple prioritized profit margins. It’s also speculated that since many Apple fans splurge on upgrading to a new iPhone every 12 months and/or
The Apple Watch has a major pricing problem
11
Sep
2014
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