More Able to Take a Bite Out of Apple

(Ping! Zine Web Hosting Magazine) – As Apple products begin to lower in price, consumers that were once turned off by the price tags that Apple laptops and gadgets carried are now able to swoop them up at prices that match, if not beat, competitors. Tech Expert Karl Volkman comments on Apple’s recent pricing strategy and how it’s affected pricing in the technology industry as a whole.

Apple products like the iPad, iPod, and iPhone have quickly made their way from extravagant accessories to daily necessities, spawning numerous copycats in the form of tablets and smart phones that, though able to compete initially, are falling by the wayside at an increasing rate. Analysts say that Apple’s ability to utilize its growing manufacturing scale to lower costs on parts vital to their products is a key factor in the aggressive pricing approach it’s taken on over the past few years. The shift in pricing has had a ripple effect on the tech industry as a whole, leaving rivals scrambling to meet or beat what Apple has to offer in price, functionality, and design. For example, the recent release of the iPhone 4S saw over 4 million units sold in the first weekend, a record sale for any phone, with a base price of just $199. This is a far cry from the original iPhone released in 2007 which was accompanied by a whopping $499 per unit price tag. Competing phones, especially those running Google’s wildly popular Android operating system, continue to sell at a rapid rate, though buyers tend to find themselves reaching deeper into their pockets for the purchase.

Especially in the 1990s, Apple products were seen as overpriced and flashy, making it difficult for them to compete with PCs which were far cheaper,” says Volkman. “The recent price cuts are a sign of increasing power for Apple, not distress. Their products have come down to a price-level that allows them to actively compete with their counterparts on a level that is causing pricing structure of the tech industry as a whole to rethink itself. Apple is really the leader when it comes to how gadgets like tablets, smart phones, and even laptops are priced.”

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