Predictions for Apple
This article is mostly about the inelasticity of Apple products. It's surprising that in rough economic times that people aren't searching for less expensive substitutes from other companies in order to save money. According to the article Apple has adjusted their strategy along with the economy. Rather than allowing another company to take over the cheaper MP3 market Apple has innovated and found ways to provide music players for a decreased cost. Since Apple has created such a brand name for themselves consumers are willing to settle for the inexpensive IPOD shuffle. What Apple has ultimately done is become its own substitute. The shuffle is the substitute for an IPOD, Apple Netbooks are a substitute for the full Notebook etc. The article specifically states that Apple's strategy is to create a large enough umbrella so as to not give any market share to a competitor. It appears that they have done just that.
Posted by Dan & Britt at 11/22/2009 04:59:00 PM