iPad continuation iPod Strategy: or into Apple's "Rising Star" - Sina

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the guide language: U.S. online magazine Slate Wednesday the Department published Mingfahade · Man Yueao, (Farhad Manjoo), said Apple’s “Rising Star” is not a smart watch, nor is it Smart TV or smart glasses, but has launched a three-year iPad because this product the full continuation of the strategic line of iPod, and has the advantage of competitors unrivaled limitless potential, is bound to become Apple’s future performance an important driving force.

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iPad potential is ignored

iPad always live in the shadow of the little brother the iPhone. Tablet when Apple launched in the spring of 2010, all regarded it as a derivatives – just a large iPhone! Even now, when the iPad proved enough to replace the PC in many ways, it did not win real recognition. When investors and financial analysts think about the future of Apple’s, they usually focus on the the iPhone body – this is still the company’s flagship business.

It is estimated that, Apple’s revenue of $ 1 each by the iPhone, there are 0.5 to 0.6 dollars in profits. This makes the iPhone has become the world’s most profitable products. In fiscal year 2012, Apple sold a total of 125 million iPhone, income-generating $ 80 billion, a profit of 35000000000-40000000000 U.S. dollars. An objective point of view, Apple’s 2012 iPhone a product for profit alone, probably with Google, Amazon, Facebook, Samsung was the sum of the profits fairly.

poor iPad

. The face of the iPhone to create amazing results, iPad revenue of billions of dollars a year seem insignificant. In addition, nobody Apple set off a wave of touch screen thanks to the iPad. If the iPad can personally explain to the world how wonderful – Apple as early as in 2003 launched the Tablet PC project, much earlier than the iPhone, and the company’s multi-touch operating system was also originally developed for the Tablet PC, then later ported to the iPhone. Apple initially wanted to use the iPhone similar to click with the iPod touch wheel mode, but eventually changed direction.

remains bright

but do not be discouraged, iPad. Your future is very bright. In fact, I estimate or a few years, you can justifiably become Apple’s top products. First of all, your brother’s dominance is gradually weakening. The iPhone is likely to remain the world’s most popular technology products, but suffered the onslaught of a number of low-cost competitors, it is reasonable to expect this product’s revenue and profit growth will slow.

This is because the growth of the global smartphone market has shifted to the low end – consumers in developing countries with low-cost smart phone to replace the low-cost feature phones – to adapt to this trend, Apple only launched less profitable low-cost phone. (Rumors about the matter has long been rampant, but it remains to be seen how.)

At the same time, the iPad Mr. competition you face is not so intense. With the $ 329 iPad mini, you have also maintained a relatively low price. You already have 35 million lines dedicated application – any other a Tablet PC can not be shoulder to shoulder with you. Are you still getting better and better. Each year, in other Tablet PC manufacturers will soon catch up with the old iPad, Apple will be timely launch of the new iPad better and faster than the competition.

in the latest quarterly report, Apple announced the first three months of this year to sell 19 million iPads. This figure is a whole increased by 65% ??over the same period last year. In contrast, the company’s quarter iPhone sales as high as 37 million, but an increase of only 7%. If this trend continues, iPad will be replaced by 2015 iPhone, Apple’s best-selling product, there may even advance. In addition, Apple will also change. It will become involved in the world’s largest mobile phone and Mac Tablet PC manufacturers.

continuation iPod strategy

why I’m so sure that the iPad will become the new overlord of the Apple dynasty? Last year, I once said, iPad follow exactly the same with the iPod strategic roadmap. Unlike the mobile phone market, Apple through an epoch-making product to create this business, and then gradually expand the product line, covering a variety of price points and use: the first generation iPod introduced the iPod mini, iPod Nano, iPod Shuffle and iPod Touch.

Apple did not earn much money from these cheap models, but they are willing to sacrifice profits, because they really value is another factor: user loyalty. Once you enter into the iPod ecosystem, will store music on iTunes, and even purchased through the iTunes music after they are less willing to leave this platform. If your iPod’s shuffle is cheap, may eventually buy more expensive Touch, regardless of the competitors in the music player, how good is really a reasonable choice to remain in the iTunes ecosystem. , IPod has become invincible. Listed after so many years, it still accounted for three-quarters of the digital music player market share.

iPad also followed the same pattern. Over the past three years, Apple’s Tablet PC has been achieved diversification: 9.7 inch high score screen version priced at $ 499, 9.7-inch high score screen version priced at $ 399, the iPad mini price of $ 329. Yes, this is not really more expensive – just $ 159 you can buy the Amazon Kindle Fire 199 dollars also can buy Google Nexus 7.

In fact, sales of the iPad it does seem that by the impact of low-cost competitors. According to U.S. market research firm IDC estimates, Apple last quarter of 2012 the Tablet PC market share of 44%, and 52% lower than the same period in 2011. IDC expects Apple’s share of approximately 46%, and a variety of low-cost Android tablet computer combined share will reach 48%.

but it should be noted that these competitors are at a loss on disposal of equipment – whether it’s Amazon or Google, they can not earn a penny less than $ 200 Tablet PC. Instead, this from the side to demonstrate the strength of the iPad: iPad remains excellent performance even in the face of loss leader competitors – the product this year, sales soared 64% market share only slightly down.

applications is the key

This leads

a more fundamental problem: Since as little as $ 200 you can buy Android Tablet PC, why people are willing to spend $ 329 to buy the iPad it? This is not because the iPad is more beautiful or more powerful, but because the iPad more useful – because the App Store application is far more than a tablet computer. Apple iPad-specific applications has reached 350,000, Google has never disclosed the number of Android Tablet PC applications, but if you visited Google Play necessarily know that this figure will not be much.

This is a key advantage, because, with the smart phone, if not excellent application, Tablet PC almost useless. IPad utility: According to the market research firm Chitika, iPad accounted for roughly 82% of all flat-panel computer network traffic, ranked second in the Tablet PC is the Kindle Fire can be seen in the statistics, accounting for only 8% .

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With cheap iPad mini, Apple has reduced the overall profit margin, which is a drag on one of the factors of its share price. However, the iPod, the short-term loss of profits will help to consolidate the dominant position of the long-term. This is actually a continuation of the strategy of the iPod: Apple Company believes that buy iPad users will now live forever in its ecosystem. IPad mini sales can not be formed of Apple’s profits too big promotion, you can still buy many, many applications for the iPad.

So, when you need to buy a new Tablet PC, there is not much reason to switch to Android, because it requires a re-purchase a variety of applications. These form a network effect for Apple to create an advantage – due to the value of a large user base, developers will continue to be developed for the iPad application, which in turn will continue for the iPad to attract more users, so as to enhance the interest of developers .

in recent years, the technology industry has been waiting for Apple to launch a new revolutionary product. Such voices have been boring, and even irrational – no one knows exactly hope Apple introduced, they simply desire some new products, perhaps a watch, perhaps TV, perhaps a giant screen phones, even smart glasses . But I think it will greatly deviate from the direction of Apple’s. While indulging in new products, we ignore the potential of the old products. Apple’s “rising stars” may have been born to the i Pad unlimited potential, wait and see. (Book Yu)