Monday, October 24, 2011

Apple’s Lower Prices Are All Part of The Plan - NYTimes.com

An interesting case study in increasing returns

Apple’s new pricing strategy is a big change from the 1990s, when consumers regarded Apple as a producer of overpriced tech baubles, unable to compete effectively with its Macintosh family of computers against the far cheaper Windows PCs. But more recently, it began using its growing manufacturing scale and logistics prowess to deliver Apple products at far more aggressive prices, which in turn gave it more power to influence pricing industrywide.

Apple’s Lower Prices Are All Part of The Plan - NYTimes.com

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