PRICE RANGE OF PRODUCTS

PRICE RANGE OF PRODUCTS Above is the price spue of all orchard apple tree products between the years of 1975 to present. Steve Jobs manufactured products that were non just far sophisticated than other(a)(a) products in the same category, but they were also let out of nominate for most consumers. When apple reckoner launch its orchard apple tree II in 1977, it embody $1,298 and if you wanted a more than powerful magnetic variation it would cost you a twice that amount. In 1984, orchard apple tree Computer released the Macintosh at a price of $2,495. At these prices many consumers could non afford to cause a Macintosh.Upon Steve Jobs return to Apple Computer in 1984, Apple products price drop allowing most price conscious consumers to own a Macintosh. The innovative iMac carry a price of $1,300 which would cost $1800 in todays current dollar value. As technology advance, the price of Apple Computer products continued to decline. Since 1996, Apple had released the MacBo ok Air for $900 and MacMini for $600. (Felix Salmon, 2011) Apple now offers products in improver to Macintosh products. These products have been very profitable for Apple Computer.The products below atomic number 18 sold on Apple store online Computer technology has change manufacturers to build cheaper, higher-quality and more powerful computers that ar also more ready to hand(predicate) and affordable to the average consumer. For example, the iPad 2 has been compared to the 1980s Cray supercomputer, but at a price that millions of people can afford. Steve Jobs realized that technology had advance to a point that he could now drop products that could not just devolve high quality but also be price reachable to the broad non-geek middle classes.He could not make his NeXT workstation which was value at $6500 in 1990, or $11,267 in 2011 which was placed on many workstations crosswise the world at price that many not only be affordable but hard for competitors to couple up. Fo r example, the iPad 2 price is $499 and the IPhone 4s is price at $199, both sold at competitive price that is hard to competitors to match and within the price range of most consumers. (Felix Salmon, 2011) PRICING OBJECTIVE S OF BRANDAccording to Steve Jobs, Apple is breaking the rules in terms of its pricing precedent, he told Reuters by telephone. Its doing what luxury brands do, where the higher price the brand is, the more it seems to underpin and beef up the desire. Obviously, it has to be allied to great products and a great experience, and Apple has nurtured that. (David Cowell, 2012) aft(prenominal) all Apple is a luxury brand that engage a premium price and Apple customers do are not expression to extradite money but to get the highest quality product in the market.This adds up to three main factors that help Apple keep the iPad and other Apple products price so low 1. Apple stores Apple makes a large chunk of its iPad sales directly to its customers through the A pple retail stores and the online Apple store, which enables the company to keep even more of the profits. While cartroad retail stores are expensive, Apple runs one of the most profitable retail businesses in the US and these direct sales give Apple the ability to directly follow up with customers to entice them with future upgrades. 2.Supply chain As others have explained, Apple has a major supply chain instruction advantage. That means that it controls the components that go into its product (and the price it pays for them) better than its rivals do. Apple makes the software, designs the chips, and buys fritter away memory and LCD displays in enormous quantities (in combination with iPhones and iPods). That significantly whittles slew the raw cost of each iPad. 3. The 3% factor Apple sells the iPad to retail partners at a minimal 3% discount (which is correspondingly a good deal lower than competitors).Because of the strength of Apples brand and the customer demand of t he iPad, retailers are willing to take very little profit on iPad sales in order to drive store traffic and make money on add-on purchases like accessories and extended warranties. (Jason Hiner, 2011) Apple has been so successful by opening their own stores which has made a huge impact for iPad, when iPad2 was released CEO Steve Jobs said One of the things that enabled us to roll out this technology so fast was our Apple retail stores. They were built for moments like this.They were built to take new technology and roll it out and indoctrinate customers about it and be in that location when they have questions and issues. We have hundreds of Apple stores now, as you know. This is one of our newest ones in Chicago pointing to a slide. And, without these stores I dont think we would have been as successful either. (Jason Hiner, 2011) Alternatives yellow journalisms from other competitors have not be able to compete with Apple iPad and have had to cut their prices to retailer. Ap ple has taken notice and has taken advantage of its pricing strategy and has take down the iPad price to its retailer.Motorola and Samsung may sell their tablets at 97% at retail price but if the product is not as desirable as the iPad the 97% may not make any difference. The margins are more like 5-15% off retail price for competitors. (Jason Hiner, 2011) DISCOUNT/ALLOWANCES Apple is not currently offering any discount for the iPad but has in the past offer scholar discounts. For example, it has offered students a discount of $200 for MacBooks. In 2011, Apple also offered a back to school promotion in which students could save about $229 and get a free iPOd Touch 8GB with the purchase. (Andrew, 2010) Apple student pricing for iPad is $499, just like regular buyers GEOGRAPHICAL PRICING In May 28th 2010, Apple broaden their market to outside of the join States by offering iPads to nine other countries which included Canada, Germany, Australia, France, japan Italy, Switzerland, Spain and united Kingdom. Pricing for these countries were the suggested retail price in UK has been confirmed and for WiFi-only model the 16GB version will be available at ? 429, 32GB version for ? 499, 64GB version for ? 599, while for the WiFi + 3G 16GB model will be available at ? 29, 32GB version for ? 599 and 64GB version for ? 699. Apple will continue to add more countries by July 2010 by adding Austria, Belgium, Hong Kong, Ireland, Luxembourg, Mexico, Netherlands, New Zealand and Singapore to the mix. The price of the iPad was not reveal but its was suggested that pricing for iPad would be slightly higher than the United States pricing. Apple is also trying to expand into the Asian market where tablet are being sold much cheaper than the Apple IPAD. (Wong, 2010) APPLE promotional PRICINGApple continues to offer back to school promotions in 2011, Apple offered free $ ascorbic acid iTunes gift certificate with a purchase of Mac computers. Apple offers are not as generous as most consumers would like them in any case be but its better than nothing at all. Apple offers discounts for MacBooks desktops and laptop every year for students. Apple has created a special teaching method store link on Apple online which shows current offers and discounts that can range between 8 and 10% of the regular price for MacBooks. (Andrew, 2011) Works Cited Andrew. (2010, April 23). Is there an Apple Ipad Student discount.Retrieved from Student buying guide http//www. studentbuyingguide. com/2010/04/apple-ipad-student-discount/ Andrew. (2011, September 16). last(a) Weekend for Apple Back to School 2011 $100 Gift menu Promotion. Retrieved from Student Buying Guide http//www. studentbuyingguide. com/2011/09/last-weekend-for-apple-back-to-school-2011-100-gift-card-promotion/ David Cowell. (2012, April 17). Apple Passes Google To Become Worlds Most invaluable Brand. Retrieved from Huffing Post Business http//www. huffingtonpost. com/2011/05/09/apple-google-most-valua ble-brand_n_859265. html Felix Salmon. (2011, June 06).Reuters. Retrieved from Reuters. com http//blogs. reuters. com/felix-salmon/2011/10/06/chart-of-the-day-apple-price-edition/ Jason Hiner. (2011, March 11). The iPads other big advantage Retailers only get 3% off. Retrieved from Tech democracy http//www. techrepublic. com/blog/hiner/the-ipads-other-big-advantage-retailers-only-get-3-off/7880? tag=contentsiu-container Wong, S. (2010, May 8). Apples iPad International Pricing and handiness on May 28th. Retrieved from My Digital Life http//www. mydigitallife. info/apples-ipad-international-pricing-and-availability-on-may-28th/