Tag Archive for ‘Above Avalon’

The Strategy Behind Discounting Apple Watch and iPad ➝

A great piece by Neil Cybart on why retailers have decided to slash prices on Apple products this year. I especially enjoyed this bit:

Best Buy and Target are discounting Apple Watches and iPads because they are confident those two products will be able to garner interest and buzz to generate increased foot traffic and page views. Only 2% of Target’s sales originate from its website, with Best Buy seeing a bit larger percentage (10%). Accordingly, It is conceivable that these Apple product sales will drive traffic to stores. Given the competitive trends, being able to get a consumer to a store is becoming more difficult and expensive. Once in a store, Target can then do its job and sell additional product.

Retailers get you in the door by advertising low prices on Apple devices, then they make their profit off of everything else you buy while you’re there.

The Grand Unified Theory of Apple Products ➝

An incredible piece by Neil Cybart about Apple’s evolving product lineup.

The Battle in Mobile Has Changed ➝

Neil Cybart:

Instead, the smartphone buying decision is likely related more to the other pieces of glass either being worn (smartwatches), in one’s purse or backpack (tablets), or at home and on the work desk (desktops/laptops). Extend the exercise further to incorporate third-party devices in the home and driveway, and the entire iOS or Android ecosystem is becoming the much bigger deciding factor for what will be your next smartphone.

It’s not about the number of devices activated or the number of apps available anymore. It’s about how the device’s ecosystem works alongside all of the other parts of your life — fitness, media, connected appliances, fashion, and more.

 

Apple is Working on Something Big ➝

Neil Cybart on Apple’s ever increasing research and development costs:

Taking a look at the increased amount of money Apple has been pouring into R&D beginning last summer, it is looking increasingly likely management gave the green light for Apple’s next big project. I suspect Apple has begun work on battery, telematics, and autonomous driving initiatives related to personal transport.

In short, Apple started spending a lot more money on R&D last summer. And because of the guidelines regarding what is allowed to be classified as R&D, Apple must be developing new products that require a significant investment to create.