By: Arthur Cooper
Submitted: 2011-03-08 19:31:34 | Word Count: 664
With the release of the iPad2 last week in San Francisco, many competitors are getting worried. Just one year before, Apple introduced the iPad on the market and has seen unprecedented growth, selling over 15 million units. It is not even a question of whether iPad dominates the tablet market. This is obvious, being that they were the first to offer this type of device on a large scale. Apple simply continued its’ innovation and added a rear-facing camera and a dual core A5 processor. The latest version is now thinner and lighter than its predecessor. The differences between the two versions show that Apple is listening to their consumers. What is more impressive is the feature that has remained the same. The iPad2 shares the same starting price as the original, at only $499.00.
This is unheard of. There has never been a new product that costs the same amount as the older version. When rumors of the iPad2 first began to circulate, people naturally expected a substantial price hike for this model. Technology pricing usually goes up. With the $499.00 price announcement from Steve Jobs, CEO of Apple, people were pleasantly surprised. Apple is already controlling the tablet market and will probably continue to do so with this price point.
[ advertisement ]
Many other manufacturers have been fervently trying to get their tablets out there. These companies include Samsung, Motorola, LG, Blackberry, and Hewlett-Packard. Each manufacturer either already has a tablet on store shelves or is planning on rolling theirs out in the near future. One of the main disparities between Apple and these other companies is the starting price for their tablet devices. For the companies who have announced their price, none have been able to offer their tablet for less than the cost of the iPad2. This is a sizable threat to the viability of Apples’ competitors.
The most aggressively marketed iPad2 competitor has been the Motorola Xoom. This tablet features a front and rear-facing camera and a dual processor. These features are in line with the iPad2 so it comes as a surprise to many that this tablet starts at about $300.00 more. What is so special about the Xoom? Why does it cost so much in comparison to the iPad2 and how will it be able to compete? These are the questions that have many people guessing.
Apple is able to produce their tablet more efficiently because they already manufacture many of the components of the device. They don’t depend on many manufacturers and this cuts costs. Apple also has an impressive infrastructure of stores and an online presence that eliminates middle-man retailers that mark-up the price. Customers know that with Apple, they are getting a quality product, and most would be willing to pay even more than the five-hundred dollar base price. Apple is undoubtedly sticking to this price because it plans to continue domination over the tablet market. Although Google’s popular Android operating system is offered on these other devices, if the price isn’t right buyers won’t whip out the cash.
