A new strategy for Apple?

Over the last 2 months, Apple have released the iPhone 5, iPad mini and new Mac with retina display. Sales for the iPhone were less than anticipated and I expect the iPad mini to sell far less than its predecessor.

Apple are moving away from the core foundation Steve Jobs laid down. They are trying to saturate the market with products and are looking for short term solutions instead of coming up with the next best product, which is having an adverse effect on the business. Last month, they introduced the iPad mini in an aim to compete with their rivals, which is a rarity for Apple as normally they are the ones leading, not following. Steve Jobs said himself that ‘7″ tablets are too small’ clearing showing that Apple are changing. They have stated that they are targeting schools to use the iPad mini, which gives it some differentiation, but ultimately, the iPad mini is almost exactly the same as the new iPad but is just a few inches smaller and a little less expensive.

The iPad mini is £100 more expensive than rival tablets, such as the Amazon Kindle Fire and the Google Nexus 7. This shows that they are sticking to their higher price strategy, but are changing their strategy to respond to what their competitors are doing. In time, this could have a negative effect on Apple as they could be seen as less innovative and more generic, resulting in a major damage to their prestigious brand, meaning consumers will not be willing to pay higher than what they need to for a very similar product.

They are now the second biggest brand in the world, behind Coca-Cola, climbing 15 places in just 2 years, but to remain at the top surely they need to remain loyal to their core values and foundations? as that is what has made them what they are today.

Steve Jobs was all for pushing boundaries. Apple are now starting to follow the crowd. Is the power of Apple weakening?


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