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Description: The iPad 2, unveiled on Wednesday, offers several sleek improvements over its predecessor. But its most attractive feature is perhaps the same one its predecessor had: the price tag

Source: Globeandmail.com

Date: March 7, 2011


“There have been nearly a hundred competitive tablets that have been introduced since the iPad,” said Toni Sacconaghi, an analyst at Sanford C. Bernstein. “But it seems that no one has eclipsed or even matched Apple on pricing.”
Analysts and industry experts point to a number of reasons. Primarily, they say, Apple’s deep pockets – a staggering $60-billion in cash reserves – have allowed it to form strategic partnerships with other companies to buy large supplies of components, for example, inexpensive flash memory. By doing this, the company probably secures a lower price from suppliers, ensuring a lower manufacturing cost. Read rest of story

Questions for discussion:

  • What are Ipad’s competive advantages over its competitors?
  • What are the sources of those competititive advanatages?
  • If you were a competitor, how would you compete against the ipad?

17 Responses to “So far, rivals can’t beat iPad’s price”

  1. Simar Duggal

    Ipad’s competitive advantage is that they come out with the new and innovate product first; they have to ability to introduce something to the market before anyone else. By having the entire market share in the begging before the competing market they have the ability to be a leader on the as the entering product. Ipad is a new way to have a laptop, with no keyboard and mouse, and a flat- ipod looking- product is successful for carrying and using. The sources of the competitive advantage range from the technology to the brand. The technology and team behind finding ways to make the product faster, thinner, and cheaper are the ones that allow ipad to be the better product among the other “ipad” looking products. The brand has the ability to market the product. If I were a competitor against ipad I would try to use the same recourse as apple, and try my best to have my product ideas implemented on my product before apple can release a new products.

  2. Dustin

    Ipad’s competitive advantages is it ability to be the first into the market. Becuase they were the first to bring out the ipad, people are curious about it. Now that they came out with another, faster, better, thinner, lighter one. This is goin to raise more people’s heads and curiousity levels. Also how fast the can deliver the product is outstanding. No one can realy match how fast they can get a new product out to the public.
    I think the Brand says it all. Not alot of people people take notice to the other guys. I dont even know who the other guys are. They have probably the majority in the market. nobody can match their size. Also the teams they have to market and manage this product is unreal.
    If I were a competitor I would give up. Not trying to be funny here. But they have almost a monopoly is this market/product. I would try to come up with somthing totally different that did a totally differnt thing, and try to get the puplic’s interest from anather direction.

  3. Logan Redman

    Really? the iPad? Ok so I would like a laptop, thats not quite as powerful as other laptops, which isn’t super user friendly, that still costs lots, oh yes, and it just a super sized iTouch. Way to go apple, pushing goods on your consumers that are utterly useless and then convincing them that they need it! In fact, people will most likely defend the iPad as a new innovative product that is super cool. Lets take a lap top and just super size it to 60″ and give it cable; boom, a tv that has a keyboard, internet, movies, all that. Its not new its just a different size and its lame.

  4. bretton macdonald

    I think the ipad has a number of competitive advantages, for one they seem to always come up with the product first much like the ipad. They came out with it first and they gained a great marketshare as a result. Another reason they have an advantage is they have so many other products that are very popular and there brand alone brings in so many customers. For example the apple ipod is the first of its kind and no one has been able to touch it so many consumers are going to assume that the ipad will be the same. Since they have so much marketshare they can price there tablet a little cheaper than the competitor and still have great products. Google tablets cant afford to lower their prices because they do not sell enough inventory.

  5. Russ

    The main competitive advantage for the iPad is being the forerunner in tablet PC’s. Apple seems to be revolutionary at getting new products, new ideas to the marketplace sooner than any of its competitors. Because the iPad was sitting on the shelf before any other similar device from Apples competitors, Apple secured a large chunk of the market share in this division of technology. The assets and funding that back Apple and their company for things such as research and development are key in this competitive advantage. Brand loyal customers is another reason why so many people flocked to the iPad when it came out. Apple does a good job of differentiating themselves and setting a standard that no other company can seem to get to. It was first with the iPod when it came out and the coolest sleekest mp3 player on the market. Other companies started to make mp3 players but what happened was there was the iPod and then there were all of these other mp3 players that no one really seems to know about, that most people called iPods even though they are not iPods at all, but when people think of mp3 players they think of iPods.

  6. John

    The huge competitive advantage of the iPad is that Apple, was the forerunner of this technology. They were the first movers in the industry and as a result they got the first mover advantage. Here, Apple is already introducing a lighter, thinner, faster, more powerful version of its original design roughly 8 months after the introduction of the first. They know what problems their first one had, and they have improved upon it to change these features. Apple also does an extremely good job of differentiating themselves from their competitors with high quality products with staggering statistics, such as 10 hrs of battery life, with a month of standby. No other competitor comes close to this, and as all of Apple’s competitors were rushing their products to market, Apple was busy refining theirs to ensure their share of this markets was permanent. Its true Apple has deep pockets to research their R+D, but in my eyes, they still make a superior product that warrants the extra price tag.

  7. Nicole Hendry

    Apple’s competitive advantages include it’s pricing, large reserves, lack of third party retailer and customer loyalty. Not only does Apple have the largest market share but it also prices it’s ipad under the other tablet competitors. The Ipad really was the first of its kind out on the market and therefore it is established itself as a high quality product leaving other competitors one step behind each year as Apple continues to innovate the Ipad.

    Apple is able to keep these competitive advantages up because of its large reserves and because it owns a lot of company’s that make the parts that go into their products. Also Apple is hugely known for its popularity. I feel that in most settings you are looked down at if you don’t have the Apple version of the product.

    If I was a competitor I would most likely try to come up with something that consumers really need and then be the first to the market with it.

  8. selena759nova

    i think apple’s competitive advantages include: brand recognition, user-friendlyness, and strategic partnerships. these advantages have resulted from many things. i would say first mover status. sure sometimes there are glitches with the first few sales of certain devices (the iphone 4?) but apple is also known for excellent customer service (who is complaining about the iphone 4 now?). they’re killing it in speed. no they’re introducing the ipad 2, leaps ahead of, for example, RIM has been able to release their first tablet the playbook. honestly im really excited about the playbood, but how much longer am i willing to wait?
    and let’s face it, apple products are easy to use. i am not averse to new technology, but i like a quick learning curve for something that is supposed to make my life easier. because of these aspects, apple brand is strong and because apple brand is strong, other companies want to partner with them.

    if i were a competitor, obviously work on speedier releases of competing products, and if you’re late, be late because you’re working on the things that apple doesnt offer. security and control for government and corporations. in the age when privacy may once again become valuable to people, this could soon apply to personal use of these devices as well.

  9. DC

    Their biggest competitive advantage is their brand name; Apple came from being a computer’s name to being perceived as being a part of every “cool person” s everyday life. Their products have a high end design, this separates them from every other brands. Their brands are also relatively smaller; this makes it easier for people to carry them around everywhere they go, in the process people become obsessed and dependant on their products because if you get used to carrying something around it become norm that necessity. What this means is that Apple have built strong customer loyalty base that is going to take a gigantic company to break anytime soon. To be honest i am not a big fan of apple products simply because now its more of hype than anything especially with the I pad, so if was a competitor i will make sure i make the people understand they are buying Apple off its hype, this is the only effective way around it. If you try to compete with Apple on a pound for pound bases, they will knock you out of your budget because they have huge capital base.

  10. Momah Moseri

    Ipad is a great invention from apple. This is a very portable computer (a mini computer) that can do everything you need and you can take it everywhere. Ipad being the first of its kind has many competitive advantages over its competitors. It is portable, does everything and comes with many exciting applications. Apart from all these, Ipad is the first to come out in the market, making it have so many loyal fans and customers so any other product coming out must be extra super for it to push Ipad out of the way. I think the sources of these competitive advantage is mainly the technology but also the brand as well. Many people know apple from the days of the first ipod to their mac laptops. Apple has been very consistent in the market and this has given them the popularity they have. If I was a competitor I would get the best developers and create something extra super and make sure I match the price with that of Ipad

  11. Fizi

    Its like comparing apples to oranges here…. funny ha… in other words. pad’s competitive advantage is the fact they come out with new technologies first. The one thing I find annoying though is that some of Ipad’s apps can’t run on independent systems. Though the iPad may be $50 cheaper… Zoom comes with twice built in memory and higher resolution screen. So considering those facts and fact that number of developers for Droid out numbers Apple developers it’s easy to predict who will win this. If I were a competitor I will have my developers think ahead of apple and come out with reliable technologies. Its not very hard to tell what next Apple will come up with. They seem to have the technology but I find them too monotonous.
    There will always be those needy apple users that will keep them going and it’s great. Kind of reminds me of how AOL took all the ……. off the internet, it was a great filter.

  12. Katie

    People always say some new product coming out is going to rival Apple’s iPad, and it never works out that way. Apple has done such an amazing job with all of their products and now the iPad, that they have a lot of competitive advantage. Apple was the first to introduce these tablets and other companies have been scrambling to try and catch up. Now with the second iPad approaching, people are even more interested in this new innovation. Apple does an amazing job with differentiating their products and making them more user-friendly.he iPad has the most name brand recognition and Apple is well known for being an exceptional company with good quality products.Because Apple holds such a large percentage of the market share, it is going to be hard for other companies to work their way in. T

  13. Jatinder Aulakh

    •What are Ipad’s competive advantages over its competitors?
    •What are the sources of those competititive advanatages?
    •If you were a competitor, how would you compete against the ipad?

    Ipad’s competitive advantages over its competitors are mainly the brand recognition of the product. Apple has become one the greatest invention in world and is popular everywhere. The Ipad’s are faster than competitor products, they also have video camera built in on the rear side and the front side of the Ipad. Also has a Gyroscope and is 33% thinner and lighter and easy to carry around. I think Ipads are great and I would love to buy one. They are easy carry around and very light weight. It’s something that I always wanted, I can take it around with I am travelling because it won’t take up a lot of room in my bag.
    If I were a competitor I think it would be hard to compete against apple because their brand and their products are well known. However, the best thing I would do as a competitor is compete with their prices to get my product selling more.

  14. Clayton Varjassy

    Ipad’s biggest competitive advantages are that 1) It was/is the first to the market with the latest cutting edge technology, and 2) It’s customer base is significantly larger than that of any of its competition. Because of the large customer base, Apple is able to keep costs relatively low and provide a superior product at a competitive price. Apple can have people design components for their products in house, rather than outsourcing things like processor chips to companies like Intel. This provides apple with much more freedom and flexibility than its competitors and allows them to focus on making the fastest, smallest, and lightest device they can as a whole, rather than piecing together different components from different manufacturers.

    If I was a competitor, I would choose a different product. It’s tough to compete against a giant that has mastered a product like the ipad. Producing something that is superior, especially given the heavy reliance on the app store being one of the ipads biggest draws, is nearly impossible. Perhaps if Microsoft could put out a device with the office suite implemented and gave it the ability to wirelessly output to a TV with some type of dongle, it may have an ipad killer, but anything short of that will more than likely be a dud.

  15. Derek Wilson

    Apples only real competitive advantage is the large amounts of people that will buy anything that Apple churns out without a question. They make a big I-touch and everyone goes absolutely nuts. I still don’t see a reason to have one of I-pad’s other than having a bigger screen to play addictinggames.com on. They are peddling things like camera’s and dual core processors and making them out to be the newest thing. My cheap dinosaur of a computer, which I bought as a refurbished model three years ago, came with a dual core as well. So boasting about a dual core is like saying “hey we just hit 2008!!” Well, congratulations Apple for getting a good deal on a bunch of old parts and slapping them in a big I-touch. If people actually paid any attention, they would realize that they are paying crazy amounts of money for outdated technology that seems more like a novelty rather than something that can actually be used.

  16. Ashleigh

    The Apple iPad’s competitive advantage is that they are always the first to come out with a new, innovative product. Apple has always been introducing new products and consumers that are loyal to this company are going to grab this product and see how it works, because it could potentially be the next best thing. Even after the first iPad being released under a year ago they are already making the product better which is adding to their customer loyalty. Apple is doing what they can to gain even more market share than they already do. Other companies that try and produce a replica of the product are not nearly as successful because Apple is a well known brand and there are not a lot of faults with their product. Consumers want a quality product from a company they can depend on. The best thing for a competitor to do is to produce this product at a much cheaper price. It might not have the quality brand name but if it has all the functions of an iPad, and not as expensive it could attract customers.

  17. Prab Grewal

    I think that Ipads competitive advantage is that apple is always the first one to come out with cutting edge technology. For example when it was Mp3s Apples Ipad blew its competitors away also with the Iphone and now with the Ipad. Apple is always the first one out with cutting edge technology while the other companies try to figure out ways to match. Apple has the advantage of coming up with even newer and better technologies. Apple has a lot of assets and stake when it comes to its products which make it even more competitive, all the way from the production/manufacturing of the Ipads and even all the way to the sale of them at their apple owned stores. If I were a competitor to apples Ipad-2, I would try to come up with something smaller much more convenient and easier to use. The most important thing is to cut down costs of production that way you can satisfy the consumer with cheaper prices because cost is one of the main things customers look at.

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