Although a variety of substitute goods were shortly released after the ipad, none of them seemed to have any effect. Despite the fact that some are even of similar quality, the apple brand name seems to be strong enough to hold in customers.
These tablets, although comparable in quality to apple tablets, seem to be scoffed at by the apple CEO as an inferior good. The brand name of apple is so powerful that this taste preference significantly shifts the demand. Assuming this is true, this is an example of horizontal price differentiation. Apple products are simply preferred [by most] over other products because of the brand, and are considered to be a superior product over less expensive brands.
This may all be about to change.
Windows is planning on releasing another tablet computer. Unlike the ipad, it can fold open and turn into a full fledged computer. Rather than aiming to beat out the ipad, this product seems to be aiming for horizontal price differentiation from the ipad, targeting a different market completely.
Cook may be scoffing now, but if their demand is reduced because of this new tablet taking away some of their customers, his reaction may change.
source: http://www.cnn.com/2012/04/25/tech/mobile/apple-ceo-windows-8/index.html?iref=allsearch
These tablets, although comparable in quality to apple tablets, seem to be scoffed at by the apple CEO as an inferior good. The brand name of apple is so powerful that this taste preference significantly shifts the demand. Assuming this is true, this is an example of horizontal price differentiation. Apple products are simply preferred [by most] over other products because of the brand, and are considered to be a superior product over less expensive brands.
This may all be about to change.
Windows is planning on releasing another tablet computer. Unlike the ipad, it can fold open and turn into a full fledged computer. Rather than aiming to beat out the ipad, this product seems to be aiming for horizontal price differentiation from the ipad, targeting a different market completely.
Cook may be scoffing now, but if their demand is reduced because of this new tablet taking away some of their customers, his reaction may change.
source: http://www.cnn.com/2012/04/25/tech/mobile/apple-ceo-windows-8/index.html?iref=allsearch
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