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
“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?