Monday, October 24, 2011

Apple’s lower prices are all part of the plan

Something unexpected has happened at Apple, once known as the tech industry’s high-price leader,” Nick Wingfield reports for The New York Times. “Over the last several years it began beating rivals on price.”

“Apple’s new pricing strategy is a big change from the 1990s, when consumers regarded Apple as a producer of overpriced tech baubles, unable to compete effectively with its Macintosh family of computers against the far cheaper Windows PCs,” Wingfield reports. “But more recently, it began using its growing manufacturing scale and logistics prowess to deliver Apple products at far more aggressive prices, which in turn gave it more power to influence pricing industrywide.”

Wingfield reports, “Analysts and industry executives say Apple’s pricing is an overlooked part of its ability to find a large audience for those products beyond hard-core Apple fans.”