With the higher price of Apple new iPad Mini, Apple chooses to ignore low end market
Many people think that Apple’s strategy of sticking to the upper end of the tablets market is the right one. It definitively boosts profit margins. As reported by Apple Balla, Apple is missing an opportunity to shake the tablet world by so clearly showing that they are not concerned with the lack of participation in the growing lower-end tablet market.
New 7.9 inch release of iPad Mini is selling for $399, $70 more than its predecessor. Apple customarily kept the price of new releases the same as old ones, but not this time. Rival tablets sell for less than $250. Since this low-end market for tablets is growing much faster than the market for Apple luxurious tablets, Apple is falling behind.
The fall in sharing the tablets market has been going on for a while. At the beginning, in 2010, Apple ruled the market with its first iPad, selling three quarters of all sold tablets. Android had only 22 percents. In 2012, Apple’s share was 46 percents, and it is expecting to fall to 36 percents, while Android will sell 60 percents. The trend is obvious, in spite of much larger number of apps for Apple tablets.
Android rules the world of smartphones. People who like their phones often buy Android-run tablets as well. And they are doing it since the developers are bringing more apps for Android daily.
Smaller tablets now make up most of sales. That is true even for Apple, with iPad Mini bringing two thirds of tablet sales.
As the prices of Android tablets keep dropping, the price of Apple’s tablets keeps going up. And as the features and specs of Android tablet get better, it's going to be very difficult for buyers to justify paying so much more for an Apple tablet. The future is here already: Google Nexus 7 was declared by CNET the best value tablet on the market. It costs only $299. The super performing Amazon Kindle Fire HDX 7 sells for only $229. Apple, watch out.