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Why Apple doesn’t care about its competition

blogs.reuters.com

21–30 of 45 posts

Re: Why Apple doesn’t care about its competition

#21
post #3

I would argue that the fact that Apple spent the vast majority of the iPad Mini announcement with a giant picture of the Nexus 7 behind them and comparing/contrasting features would make this article incorrect.

I would agree and disagree. I don't think they want to compete with the Nexus 7. I think they are afraid that the cheap tablets will eat away at their existing customers so the Mini is their way of saying "look we have that too".

I wrote this in a previous post: The iPad Mini is different than anything Apple has done before. For the first time Apple is NOT building a product to enchant brand new customers and grow their brand. Instead they are filling a hole that they feel was threatening to pull their customers into other ecosystems. "Don't mind those other, more affordable playgrounds. Pay attention to how we mill the shit out of this block of aluminum just for you."

Re: Why Apple doesn’t care about its competition

#23
I dunno, the iPad Mini seems like more a reaction to the 7" tablet market than Apple's commitment to remain laser focused on a few products. It's even a very conservative product launch that stinks of wanting to check off a bullet point for reasons why people weren't buying iPads.

It will do fine and definitely continue to increase iOS market share, but it's not very interesting as a product. I personally would have liked them to make something with a unique screen dimensions that apps could target. 4" apps, 7" apps, and 10" apps :-).

Re: Why Apple doesn’t care about its competition

#24
post #3

I would argue that the fact that Apple spent the vast majority of the iPad Mini announcement with a giant picture of the Nexus 7 behind them and comparing/contrasting features would make this article incorrect.

I don't think this necessary means the article is wrong but that really depends on whether or not Apple has identified this exact issue.

What I mean is that most of Apple's actions seem to fall in line with what the article is suggesting. The one exception to this is, as you stated, the press conference. The press conference was designed around and addressed the exact questions that the press asks.

Now, what we don't see is Apple's website or TV spots filled with comparisons to the Nexus 7.

Why? Different target audiences.

Re: Why Apple doesn’t care about its competition

#25

Earlier quoted context omitted.

The iPad mini margin is definitely more than $129.

iSupply data estimated the low-end retina iPad margin at 37%, which is consistent with a $129 profit. Apple is of course a master at extracting more profit by market segmentation. Apple is basically the BMW of technology. The difference between a run of the mill 3-series BMW and a Honda to the average commuter is image + $10,000. The iPad yields a premium because its an iPad.

...this is exactly what people don't seem to understand. Lots of people buy Fords and Hondas, and not so many people buy BMWs and Mercedes Benzs, but there's still room in the market for both categories, and BMW and Ford both turn a profit. I don't know why it need to be a 'winner takes all' scenario when it comes to tablets.

Re: Why Apple doesn’t care about its competition

#26
post #25

Earlier quoted context omitted.

iSupply data estimated the low-end retina iPad margin at 37%, which is consistent with a $129 profit. Apple is of course a master at extracting more profit by market segmentation. Apple is basically the BMW of technology. The difference between a run of the mill 3-series BMW and a Honda to the average commuter is image + $10,000. The iPad yields a premium because its an iPad.

...this is exactly what people don't seem to understand. Lots of people buy Fords and Hondas, and not so many people buy BMWs and Mercedes Benzs, but there's still room in the market for both categories, and BMW and Ford both turn a profit. I don't know why it need to be a 'winner takes all' scenario when it comes to tablets.

I think it is because ever since the 90s we don't think a company is "winning" until the DoJ starts getting worried about anti-trust stuff. Profit is not good enough, a company must start crushing its competition beneath its feet until people in tech can declare a "victory"; until that happens we have to keep cheering/jeering.

Re: Why Apple doesn’t care about its competition

#27
Sure, people have been convinced not to look at alternatives because it's convenient not to look at alternatives, but it seems that press on tech would be pretty boring if the press didn't bother looking at alternatives (especially when Apple products are created in response to these alternatives).

Re: Why Apple doesn’t care about its competition

#28
It is pretty clear that they care about their competitors, but they also don't have to at the same time. People are so locked into the apple marketing that they don't even want to know what else is out there. Uhh, I got to hear this firsthand when looking at a Galaxy Note a few weeks ago. I was looking at the Note to see if I can fit the damn thing in my pocket and two BestBuy employees were BSing about "android people". "Yo, I don't even care what other features android has, I'm apple fo life!" to which the other guy agreed.

This is sad for society and wonderful for Apple. Apple's marketing is so strong/effective that at some level, they don't even have to pay attention to the competition, particularly when their customers think that every smart phone is an iPhone.

However, as said above, it is clear that they do care about their competition and if aggressive marketing from other companies (Re: Samsung's commercials), they may have a bigger battle to fight.

Re: Why Apple doesn’t care about its competition

#29
post #3

I would argue that the fact that Apple spent the vast majority of the iPad Mini announcement with a giant picture of the Nexus 7 behind them and comparing/contrasting features would make this article incorrect.

The announcement is for people in the press who want to hear how the product compares (and will complain if it's not brought up), and secondarily people who love Apple enough to take the time to watch the announcement. You will not see a single mention of the competition on Apple's site or in any of their promotional materials, because of exactly what this article explains: aspirational brands do not compare themselv…

Most of international companies don't have mentions of competition on website and in optional materials. It's illegal to directly compare with competitors or ever call best without mention of specific set of characteristics in many countries.

TLDR: There in Russia we don't have "I am Mac vs I am PC" advertisements.

Re: Why Apple doesn’t care about its competition

#30

Even the title of this post smells like "another one of those HN Apple fanboys declaring his adoration". The article itself is even worse: "The world divides into people who think of Apple as a company, and people who think of Apple as a brand..."

Yes, just "fanboy" stuff...

The power of the Apple brand is an important factor for Apple, sure. But the article provides almost no analysis of the distinction between company and brand and how they play out. It merely touted the brand part.

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