Tough Challenge for Rivals to Beat Apple iPad Price

09 Mar 2011 | News | Ria Absin-Viente on Google+

With the coming of the iPad 2 in March 11, tablet consumers are thrilled with the improved features and additional accessories of the new device. What’s more delighting and surprising is that Apple is able to maintain the price of the original iPad on this new device with great features.

Apple is a company to beat in the tablet PC market not only because it already gained recognition and patronage of the consumers, but it also possesses almost all of the resources other companies are staggering to gain.

Apple confirmed that the price of the iPad 2 will start at $499. It can be remembered that the original iPad sold 15 million units when it was launched in April last year. The device brought Apple an ample amount of $9.5 billion in revenue. According to analysts, Apple can reach $35 billion by 2012.

Why is Apple able to offer great devices with lower price like the iPad that other companies can’t? The answer is really simple. The company penetrated its roots deep in the market that it will be too hard for other companies to pull it out of its position.

Apple can sell its devices like the iPad on its own website. Other companies need third-party stores to sell their products which can increase the price of the device. Advertising is also another factor that can affect the price of the product. Apple has no problem with this aspect.

Another point is Apple’s $60 billion in cash reserves that can purchase materials from international factories in bulk, gaining discounts from the purchase. The company has also acquired companies that can manufacture expensive materials for the company like A4 and A5 processors that are currently used in the iPad. Other companies need to buy these materials contributing to the increase in price of their devices.

While competitors are doing their best to keep up with Apple like Motorola, these companies won’t probably see the light at the end of the tunnel this year or even in the next year. However in business everything is possible. Let’s just cross our fingers at this time and see how the fate of Apple competitors can change.