...Whether or not you are a fan of Apple's brand, their business model dictates that they sell a more premium product at a higher price. That has been their strategy for years, and is how they have differentiated themselves and positioned themselves in the marketplace...
Nah, Apple is making their products available through Target and (probably) Walmart but they are not discounting them in any significant way. You can get a better price buying though Amazon with free shipping (usually if you are patient) and sales tax arbitrage. All that is going on here is distribution, distribution, distribution. Why force customers to trek to an Apple Store just to exchange money for a product in a nice box? Make it as easy as possible for a customer to make that transaction. If you need service or support later then it is time to go to the Apple Store (if it is not too far away). They (Apple) don't care where you made the purchase. If it is an Apple product they provide support.
Also the idea that there is anything like an Apple Tax is a relic from the nineties or earlier. Apple prices their products quite competitively with comparable products (not the junk where they choose not to compete). They innovate and improve at a rate that leaves their competition flailing. Wait until you see how the competing tablets are priced and they will all probably be uncompetitive 7" tablets without a comparable multitouch interface. It is just shocking how flat footed the competition has been for the multitouch based tablet. It is beginning to appear Apple will achieve an iPod style lead in the tablet market. The question might be settled by how first generation competition compares with the second generation iPad.
Nah, Apple is making their products available through Target and (probably) Walmart but they are not discounting them in any significant way.
Apple has a Minimum Advertised Price (MAP) for all of their products. It's really tough for retailers to beat the MAP, except by offering free add-ons, gift cards or the like. Some retailers (such as Fry's) use an "instant rebate" scheme as a way around MAP, but I've never seen Wal-Mart do this.
How about an iPad that syncs to this possibly soon to be coming cloud solution from Apple for everyone with a MobileMe account? If your account is with Apple then they have all the information they need.
That is exactly what is going to happen soon, I am sure. Only you won't need to already have a MobileMe account. Buy a new iPad and it will sign you up and log you on, right there in the airport or wherever.
In blister packs, hung from a rack at the check stand. Right next to the Slim Jim and the Wrigley's Spearmint.
Anywhere you can buy and iPod, why not? Blister pack sounds great for an iOS product. You don't need a sales person! For the iPad ... as others have said, Apple will introduce a way to set up an iPad without a Mac or PC. The cloud is coming.
BTW, want a bet that Apple will be the world's first trillion $ company within 10 years?
BTW, want a bet that Apple will be the world's first trillion $ company within 10 years?
As a simple (and silly) thought experiment, let's work backwards. Assume a sustainable, long-run p/e of 15. That implies that Apple will need 1000/15 = $66.67B in annual earnings. Assuming they maintain their current ~20% profit margin, that will mean $330B+ in annual revenues, or about $83B per quarter.
Another way to think about it: The forecasted population of the earth is about 8B ten years from now. Apple will need to generate $40+ in annual revenues from every man, woman, and child on the globe.
I think Apple played its cards right with this product. The ipad has been a huge gamble for Apple that paid off. The reason we are not seeing as many ipad clones as people predicted is because of the ipad's price point. The profit margin on this thing is not very much and the competition were hoping the Ipad would come in at a huge mark up. They were hoping that they could then come in and offer a product for a couple of hundred dollars less and have them in Walmart and Target and Best Buy, basically undercut Apple and ride the coat tails of all the media attention and speculation. The competition were hoping the ipad would be limited to Apple Stores.
Apple beat them to the punch and beat them at their own game.
As a simple (and silly) thought experiment, let's work backwards. Assume a sustainable, long-run p/e of 15. That implies that Apple will need 1000/15 = $66.67B in annual earnings. Assuming they maintain their current ~20% profit margin, that will mean $330B+ in annual revenues, or about $83B per quarter.
Another way to think about it: The forecasted population of the earth is about 8B ten years from now. Apple will need to generate $40+ in annual revenues from every man, woman, and child on the globe.
I’m carrying about 100 people per year. Let’s just say the next one hundred posters who read AI can send me my $40 via PayPal. Thanks.
I think Apple played its cards right with this product. The ipad has been a huge gamble for Apple that paid off. The reason we are not seeing as many ipad clones as people predicted is because of the ipad's price point. The profit margin on this thing is not very much and the competition were hoping the Ipad would come in at a huge mark up. They were hoping that they could then come in and offer a product for a couple of hundred dollars less and have them in Walmart and Target and Best Buy, basically undercut Apple and ride the coat tails of all the media attention and speculation. The competition were hoping the ipad would be limited to Apple Stores.
Apple beat them to the punch and beat them at their own game.
I certainly agree that Apple played their cards right and that everyone was caught off guard as most were expecting a $1000 device, but I?m not so sure Apple isn?t making their typical margin on this device.
I think Apple is leveraging their strengths in ways that no one can begin to match and would need extensive longterm investments that make flop to even begin to compete with Apple?s ecosystem, OS and HW.
Anywhere you can buy and iPod, why not? Blister pack sounds great for an iOS product. You don't need a sales person! For the iPad ... as others have said, Apple will introduce a way to set up an iPad without a Mac or PC. The cloud is coming.
BTW, want a bet that Apple will be the world's first trillion $ company within 10 years?
Gimme a fill-up on number eight, a pack of Lucky Strikes, and one of those iPads.
Brainless one Apple is suppose to be a high end company. Target and Walmart carry merchandise that is not to high end and the customers shopping there are not to influential to begin with. Piss poor combination.Like the other members said what is next Walgreens?\
Brainless one Apple is suppose to be a high end company. Target and Walmart carry merchandise that is not to high end and the customers shopping there are not to influential to begin with. Piss poor combination.Like the other members said what is next Walgreens?\
Now you mention Walgreens? Where do the 'superior people' people go for their meds in your view of the socioeconomic state of America?
Yeah, I am good for something like a 100 people too.
Just 80 million people like us ten years from now, and Apple is all set!
I was using the US Trillion BTW, not British. i.e. I meant x 1000 billion. So they are over 25% of the way there in market-cap. It doesn't seem such a stretch when viewed that way.
Too bad these big box resellers can't provide an ounce of support for their customers. As an Apple Reseller, we get people that bring in their iPads bought elsewhere, and then expect us, for no charge, to help them out when they have problems.
Buy the product from us, and we're glad to help. Buy it somewhere else, and we've got to charge you for the help. If you don't like that, go back to Wal*Mart and see what they will do for you.
It is sad tht the boutiques are losing so badly to the big box retailers.
Comments
...Whether or not you are a fan of Apple's brand, their business model dictates that they sell a more premium product at a higher price. That has been their strategy for years, and is how they have differentiated themselves and positioned themselves in the marketplace...
Nah, Apple is making their products available through Target and (probably) Walmart but they are not discounting them in any significant way. You can get a better price buying though Amazon with free shipping (usually if you are patient) and sales tax arbitrage. All that is going on here is distribution, distribution, distribution. Why force customers to trek to an Apple Store just to exchange money for a product in a nice box? Make it as easy as possible for a customer to make that transaction. If you need service or support later then it is time to go to the Apple Store (if it is not too far away). They (Apple) don't care where you made the purchase. If it is an Apple product they provide support.
Also the idea that there is anything like an Apple Tax is a relic from the nineties or earlier. Apple prices their products quite competitively with comparable products (not the junk where they choose not to compete). They innovate and improve at a rate that leaves their competition flailing. Wait until you see how the competing tablets are priced and they will all probably be uncompetitive 7" tablets without a comparable multitouch interface. It is just shocking how flat footed the competition has been for the multitouch based tablet. It is beginning to appear Apple will achieve an iPod style lead in the tablet market. The question might be settled by how first generation competition compares with the second generation iPad.
Nah, Apple is making their products available through Target and (probably) Walmart but they are not discounting them in any significant way.
Apple has a Minimum Advertised Price (MAP) for all of their products. It's really tough for retailers to beat the MAP, except by offering free add-ons, gift cards or the like. Some retailers (such as Fry's) use an "instant rebate" scheme as a way around MAP, but I've never seen Wal-Mart do this.
How about an iPad that syncs to this possibly soon to be coming cloud solution from Apple for everyone with a MobileMe account? If your account is with Apple then they have all the information they need.
That is exactly what is going to happen soon, I am sure. Only you won't need to already have a MobileMe account. Buy a new iPad and it will sign you up and log you on, right there in the airport or wherever.
This is a very bad idea. They need to concentrate on opening more stores instead of selling their products at the lowest common denominator.
The iOS products can be sold anywhere.
In blister packs, hung from a rack at the check stand. Right next to the Slim Jim and the Wrigley's Spearmint.
Anywhere you can buy and iPod, why not? Blister pack sounds great for an iOS product. You don't need a sales person! For the iPad ... as others have said, Apple will introduce a way to set up an iPad without a Mac or PC. The cloud is coming.
BTW, want a bet that Apple will be the world's first trillion $ company within 10 years?
BTW, want a bet that Apple will be the world's first trillion $ company within 10 years?
As a simple (and silly) thought experiment, let's work backwards. Assume a sustainable, long-run p/e of 15. That implies that Apple will need 1000/15 = $66.67B in annual earnings. Assuming they maintain their current ~20% profit margin, that will mean $330B+ in annual revenues, or about $83B per quarter.
Another way to think about it: The forecasted population of the earth is about 8B ten years from now. Apple will need to generate $40+ in annual revenues from every man, woman, and child on the globe.
Apple beat them to the punch and beat them at their own game.
As a simple (and silly) thought experiment, let's work backwards. Assume a sustainable, long-run p/e of 15. That implies that Apple will need 1000/15 = $66.67B in annual earnings. Assuming they maintain their current ~20% profit margin, that will mean $330B+ in annual revenues, or about $83B per quarter.
Another way to think about it: The forecasted population of the earth is about 8B ten years from now. Apple will need to generate $40+ in annual revenues from every man, woman, and child on the globe.
I’m carrying about 100 people per year. Let’s just say the next one hundred posters who read AI can send me my $40 via PayPal. Thanks.
I think Apple played its cards right with this product. The ipad has been a huge gamble for Apple that paid off. The reason we are not seeing as many ipad clones as people predicted is because of the ipad's price point. The profit margin on this thing is not very much and the competition were hoping the Ipad would come in at a huge mark up. They were hoping that they could then come in and offer a product for a couple of hundred dollars less and have them in Walmart and Target and Best Buy, basically undercut Apple and ride the coat tails of all the media attention and speculation. The competition were hoping the ipad would be limited to Apple Stores.
Apple beat them to the punch and beat them at their own game.
I certainly agree that Apple played their cards right and that everyone was caught off guard as most were expecting a $1000 device, but I?m not so sure Apple isn?t making their typical margin on this device.
I think Apple is leveraging their strengths in ways that no one can begin to match and would need extensive longterm investments that make flop to even begin to compete with Apple?s ecosystem, OS and HW.
I?m carrying about 100 people per year. Let?s just say the next one hundred posters who read AI can send me my $40 via PayPal. Thanks.
Yeah, I am good for something like a 100 people too.
Just 80 million people like us ten years from now, and Apple is all set!
Anywhere you can buy and iPod, why not? Blister pack sounds great for an iOS product. You don't need a sales person! For the iPad ... as others have said, Apple will introduce a way to set up an iPad without a Mac or PC. The cloud is coming.
BTW, want a bet that Apple will be the world's first trillion $ company within 10 years?
Gimme a fill-up on number eight, a pack of Lucky Strikes, and one of those iPads.
Gimme a fill-up on number eight, a pack of Lucky Strikes, and one of those iPads.
We joke but I can recall seeing WalkMan cassette and CD players in some unlikely places.
I’d like to see Apple work with someone like RedBox to get movie rentals that be synced to an iDevice from one of their kiosks.
What's really sad are neo-elitist snobs like you.
Brainless one Apple is suppose to be a high end company. Target and Walmart carry merchandise that is not to high end and the customers shopping there are not to influential to begin with. Piss poor combination.Like the other members said what is next Walgreens?
Brainless one Apple is suppose to be a high end company. Target and Walmart carry merchandise that is not to high end and the customers shopping there are not to influential to begin with. Piss poor combination.Like the other members said what is next Walgreens?
Now you mention Walgreens? Where do the 'superior people' people go for their meds in your view of the socioeconomic state of America?
Gimme a fill-up on number eight, a pack of Lucky Strikes, and one of those iPads.
OK
Yeah, I am good for something like a 100 people too.
Just 80 million people like us ten years from now, and Apple is all set!
I was using the US Trillion BTW, not British. i.e. I meant x 1000 billion. So they are over 25% of the way there in market-cap. It doesn't seem such a stretch when viewed that way.
The Walmart in my town has the iPad now. Including the accessories mentioned in the article. And a selection of third party cases and sleeves.
I guess gerald apple won't be shopping there though. Damn he is missing out on some fine heat-your-own Pizza though.
Too bad these big box resellers can't provide an ounce of support for their customers. As an Apple Reseller, we get people that bring in their iPads bought elsewhere, and then expect us, for no charge, to help them out when they have problems.
Buy the product from us, and we're glad to help. Buy it somewhere else, and we've got to charge you for the help. If you don't like that, go back to Wal*Mart and see what they will do for you.
It is sad tht the boutiques are losing so badly to the big box retailers.