Quote:
Originally Posted by Faterson
That's a humorous statement.  Apple nearly went bankrupt in the 1990s, employing that strategy. Being overly confident in one's position as a market leader (is Apple even that at this point?) can be dangerous |
That is not totally correct.
Apple almost went to bankruptcy because prices
AND poor leadership,
AND lack of innovation. The company started focusing on profit and pretty much cut much if not all, the budget that was assigned to the R&D department.
Once Steve Jobs brought those all elements back, together, the company started getting traction again. If you need more evidence, see where Apple is now. So it is not only about prices. Because if you have a product that people like and has some innovation on it, people will buy it. Hey! ... iPhones were not cheap when they were initially sold and they ran out of stores in a matter of weeks.
Rolex are expensive watches. Can you afford one? Most people can't. But that does not mean that because they are expensive, people won't but them. They are luxury watches. Most Apple products take advantage of that, the brand, but they still sell well, people are ok paying those high prices.
Now, I do not know if the absent of a good leader like Jobs will affect things later on the road, it may be, but the argument that high prices
alone can affect sales, it's not complete or accurate.
My take is that new iPad mini will sell well and better than the Nexus 7 and/or any similar Android tablet at that size. Difficult to confirm at this moment, so we will have to seat and watch.
However, long term (2 or more years), I think that Apple will have to start bringing new products and ideas into the market or people, eventually, will start looking for something else.