More on Apple’s Pricing Strategy

5 April 2017
5 Apr 2017
1 min read

When thinking about my post regarding the new MacBook Pros, I didn’t talk enough about iPads.

Above Avalon has a piece regarding Apple’s new pricing strategy. As I discussed, Apple is moving the MacBook Pro higher up the pricing “curve”, positioning the iPad Pro as an entry gadget into the Apple ecosystem. By making the MacBook Pros more expensive, a user has to choose between using an iPad or paying more for the privilege of using a computer.

Overall, I think Cybart nails it. We’ve reached peak iPad mini with the release of the 5.5 inch iPhones, and by positioning the 9.7” iPad at a cheaper price Apple is able to make an iPad a much more appealing product. The Average Selling Price (ASP) remains high because of the much more expensive iPad Pro and the accessories that come with it (such as the Smart Keyboard and pencil). I think that the iPad is in a good place, and Apple has positioned it effectively for the future.

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