New iPads and giving away Mac OS Updates
So, there are new iPads again. I've read some reviews complaining that Apple isn't dropping the price on the iPad Mini or iPad Air. Firstly, I don't think this is a bad thing. I think Apple's competition has done them a favour by pricing themselves often barely under and even more often over the price of Apple's base iPad. People like to point out that there are tablets which are MUCH cheaper. And while that is true, the tablets which cost far less are also MUCH worse. Anything comparative in terms build quality and specs typically costs more than an iPad and has made them non-starters.
Also, unlike the iPhone 5c, this isn't a case where Apple took last gen hardware and wrapped it up in cheaper materials and resold it at the same price. This is just like every other Apple iterative product launch. There are actually modest hardware improvements worthy of enticing some previous gen users to upgrade. Even at the same price. Heck, as far as the iPad Mini is concerned, this may actually explain why they went with iPad 2 hardware in the 1st gen Mini. While it would have increased the margins on the original Mini, probably more importantly, it makes the chasm between the 1st gen and 2nd gen that much wider which may drive more demand from previous gen owners to upgrade. If that actually is the case, Apple has someone pretty smart driving these decisions.
Perhaps less interesting, but seemingly more headline grabbing is the decision to give OS X Maverick away free to existing Mac owners. I'm underwhelmed. Really, I'm more surprised that people put with this for so long. I think there is a much more relevant motivation behind the move. Support costs. Apple does not have the security patching capabilities Microsoft does, nor do they have the experience. It makes sense to use free upgrades as a means to cut down on fragmentation and the need to support multiple versions of an operating system. I would almost bet that Apple will use this as an excuse to avoid supporting prior versions, which if Apple's market shares continue to grow could prove to save them more in operating costs than they would have gained in upgrade fees. Again, if that is the motivation, this may be a deceptively wise move.
Also, unlike the iPhone 5c, this isn't a case where Apple took last gen hardware and wrapped it up in cheaper materials and resold it at the same price. This is just like every other Apple iterative product launch. There are actually modest hardware improvements worthy of enticing some previous gen users to upgrade. Even at the same price. Heck, as far as the iPad Mini is concerned, this may actually explain why they went with iPad 2 hardware in the 1st gen Mini. While it would have increased the margins on the original Mini, probably more importantly, it makes the chasm between the 1st gen and 2nd gen that much wider which may drive more demand from previous gen owners to upgrade. If that actually is the case, Apple has someone pretty smart driving these decisions.
Perhaps less interesting, but seemingly more headline grabbing is the decision to give OS X Maverick away free to existing Mac owners. I'm underwhelmed. Really, I'm more surprised that people put with this for so long. I think there is a much more relevant motivation behind the move. Support costs. Apple does not have the security patching capabilities Microsoft does, nor do they have the experience. It makes sense to use free upgrades as a means to cut down on fragmentation and the need to support multiple versions of an operating system. I would almost bet that Apple will use this as an excuse to avoid supporting prior versions, which if Apple's market shares continue to grow could prove to save them more in operating costs than they would have gained in upgrade fees. Again, if that is the motivation, this may be a deceptively wise move.
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