Why Apple doesn’t care about its competition

“The world divides into people who think of Apple (AAPL) as a company, and people who think of Apple as a brand,” Felix Salmon writes for Seeking Alpha. “The former group includes all stock analysts, of course, but it also includes most technology journalists. The latter group is, well, most of the people who buy Apple products.”

“The difference between the two can be seen quite clearly this morning, in reactions to the launch of the iPad mini. The WSJ — which naturally skews to the Apple-is-a-company view of the world — runs its story under the headline ‘Apple Drops an iPad Mini on Rivals,’ and leads by saying that by announcing this new product, Apple was ‘seeking to blunt an advance by rivals.’ They even have a ‘Tablet Wars’ interactive graphic, which is based on the implicit assumption that consumers are hyper-rational shoppers, carefully comparing the iPad to various alternatives,” Salmon writes. “But if you look at what actual consumers are asking, it turns out that only an ultra-geeky minority is out there weighing up the relative merits of the iPad mini and the Galaxy Note.”

Salmon writes, “Note [the New York Times‘] Nick Bilton, today: ‘Now that the Apple iPad mini is here, I’m fielding one particular question from friends, family and readers: Which model should I buy?’ The point here is that Apple has already done the work of persuading people to buy the iPad mini — it’s done it through many years of creating products which are a pleasure to use.”

“Apple, famously, has the same pricing philosophy as Louis Vuitton: it sells premium products at premium prices, and it never discounts,” Salmon write. “That philosophy has made it an aspirational brand worldwide: you don’t see vendors in China selling fake Google Nexus 7s.”

Read more in the full article here.

MacDailyNews Take: Yes, Apple sells premium products at premium prices to premium customers.

Related article:
Newsflash: Apple sells premium products at premium prices to premium customers – October 23, 2012

28 Comments

  1. Apple competes with Apple, just like every other company. I used to think that Financial Analysts were just handicappers, driven by risk, freely manipulating the market by sowing seeds of doubt. Now I realize that they are the people who mistook the Chicken Little story for a life-script.

    1. I THINK APPLE DO NOT CARE ABOUT COMPETITION AND COSTUMERS TOO AND DO NOT THINK THE PEOPLE BUY THE GADGET TO ENJOY IT AND USE IT AT LEAST FOR ONE YEAR UNTIL THE NEW AND BETTER GADGET COME OUT NOT 3 PR 4 MONTHS TO MAKE THEM FELL BEHIND THAT TOO SOON MINI IS OK BUT NOT IPAD 4 AND I DO NOT EVEN KNOW TO CALL MY IPAD , NEW IPAD OR IPAD 3 , OR OLD IPAD , IF YOU KNOW ?

  2. “you don’t see vendors in China selling fake Google Nexus 7’s.”

    That’s a great line! Of course, the reason nobody clones the Nexus 7 is that the Nexus 7 is itself a clone of the iPad 😉

  3. 2-1/2 weeks since I ordered an iPhone5. Still not showing a ship date.
    This is hurting Apple and I expect shares will slide.
    When I ordered the phone at AT&T there were 3 other people wanting the iPhone as well but didn’t want to wait the 1 to 2 weeks for it to arrive so they bought galaxy phones instead. Besides the fact my phone is 5 days past the expected delivery date, Apple is loosing big money and more importantly, market share every day they can’t fulfill their orders. By the time the iPhone 5 is readily available, the new Galaxy phones will be here. That is going to hurt Apple even more.
    I don’t care who you are, but when a customer wants a product and is told to wait weeks for delivery, many will simply choose the competitor that is in stock and comparable.
    If Apple has the same production / delivery problems with the new iPads… well, they will have the best mouse trap, but people won’t care- if they can’t get their hands on one.

    1. Most of Apple’s loyal customers (myself included would NEVER consider a crappy Android phone just because they have to wait a couple weeks for their new iPhone. The supply is only constrained in the first few weeks because the phone is so insanely popular. After the initial rush, they will be readily available as always. Just wait and use your iPhone 4 or whatever for another couple weeks and quit whining.

      On the other hand, there are those who do not yet know how much superior the iPhone experience is to other phones, so they will lose out getting saddled with some inferior tech for 2 years just because they were unwilling to wait 2 weeks. But it will hurt them and not hurt Apple very much.

      The market of smartphone users who don’t understand that Android is a crap imitation of iPhone is shrinking as more and more Android users upgrade to iPhone the NEXT time because of the constant frustration of using a phone that just isn’t iPhone.

      1. Several of my fellow employees had to wait for nearly 4 weeks, and while they didnt like it, they certainly wouldn’t buy a crap SamDung phone just because they couldn’t wait, they simply waited. Why would you order a ferrari and end up settling for a Pacer, or a Matador car?

    2. It is like a girl you LOVE. You wait for any length of time for her to say “I DO” before she is ready!

      If you are looking for a casual date, I guess you can always take the alternative! You don’t care !!

    3. If it bothers you that much to wait, why don’t you just cancel?
      Ever here the old adage “Good things come to those who wait”? or “Patience is a virtue”? I’m sure that it will not hurt Apple one bit if you cancel.

    4. What kind of a big baby (& troll) are you? You have a phone already, use it until the iP5 arrives. I love how spoiled we’ve gotten. I’d like to see you deal with a supply chain that deals with millions & millions of people. Can you imagine how difficult it is to supply a world of impatient souls in the initial weeks of a product release? I ordered the first day on pre-order and got mine right away. If you are so hot to get one immediately then remember the early bird gets the worm.

    1. Nexus is a fake iPad…..x=x
      Fake Nexus is a fake iPad…..y=x
      Fake Nexus is a Nexus…..y=x
      A fake Nexus is not a nexus. You’re cleverly
      intermixing mathematical logic with semantics.
      Well done !!! Nearly had me there.

  4. I don’t agree with the LV comparison, because LV is a luxury brand with a far smaller demographic than Apple’s Brand.

    There is no such thing as a free lunch pricing reflects the cost of fit, finish and privacy protection afforded to end users by a company whose motivation is to make a good profit margin by delivering value. Android pricing reflects value derived FROM the end users being tricked into selling their personal data for a discounted, lower value experience.

  5. I was in my local AT&T store the other day and a mother with 3 daughters walked in. The mother asked if they had any iPhone 4’s. Unfortunately the AT&T store did not have any. The mother explained that they had been to best buy and other places in our small town looking for an iPhone 4 for the one daughter that did not already have an iPhone. They did not purchase an Android instead. Some people will settle for anything.. others won’t

  6. exactly.
    “Apple Doesn’t Care About Its Competition”

    because:
    1. there is no competition.

    it’s not a tablet/mp3 market, it’s an iPad/iPod market etc.

    2. apple gets it.

    they touch human hearts. design with passion/soul.
    their products mean more than products, they have gestalt.
    they understand zeitgeist.
    there’s meaning, trust, loyalty like nowhere else.

    anal-ysts, naysayers, haters, stockholm sindroners are all jealously sick. they all know how to run apple better, yet none of them are successful inside or out. all of them shout or cry that apple is unfair, that apple is greedy, that apple sues but no longer invents, yet deny that they’re all guilty of it – man in the mirror as michael used to say!

    the fact that they’re all so desperately trying to justify the competition, to deny & kill everything apple does, to bitch about every apple screw or each mm, whilst they do not judge their brands no matter how far they copy and how flimsy their products, proves that Apple IS right, is doing things right – at least for the majority, unlike the little self-destructive minority that doesn’t appreciate simplicity, smoothness, reliability and certainly has no idea what pleasure is – since they stubbornly adhere to their mediocre small-mindedness, since they are poor, rather than admit like real men when they’re wrong and just live, instead of suffer masochistically.

    why even try your best, wasting all your energy in destroying apple, like sadistic bastards, when you should spend your time not masturbating over what apple does, but actually enjoying your competitive junk and expressing to your favorite brands how to listen to you?! you’re ill!

    yes, competitors are always flummoxed. they can not compete, because they’re stuck to produce junk.
    junk because they start their concepts with beating apple, with profits, not end user experience 1st in mind.
    that’s why they all flop, yet they all still don’t get it!
    they must be stupid somewhere!

    3. no competitor can match. ever.

    dozens of them tried over 2 decades.
    they all failed or went bankrupt or back to the drawing board.
    all are desperately copying or catching up, no matter what additional bonus gadgetry button or blinking light they added to their wares vs the simple functional aesthetics of apple.
    the irony is you can’t innovate that simplicity, but you can inside.
    contrary comments are superficial/retarded. like the samsung galaxy s3 ads.
    they only insult their own fans or buyers! come to apple, come to papa, where you will at least be respected with something that just works.

    until the day competitors do not compete in apple’s categories, but invent their own product categories, they will always fail, at least not to overtake apple, but maybe survive.

    i could go on. but flummoxed it is as iSteve said during iPad2 launch 2010-03

    1. Spot on. I feel your angst.
      No one of these analysts seems to realize that Apple is not trying to compete with these other companies. They are simply trying to produce the best products they possibly can. For how many years does Apple have to lambaste these “competitive” products before the analysts realize that they were never competitive to begin with? They serve different kinds of people. People whose only concerns are product specs or out-of-pocket cash outlay at purchase, certainly not value. There is no other value proposition out there. It’s Apple, all the way.
      I’m getting thirsty now. Perhaps another sip of the koolaid. 😉

  7. It’s pretty sickening to hear when an Apple executive has to explain or apologize to the news media why a certain product cost more than a rival’s product. I wonder if Mercedes, BMW, Porsche executives have to give reasons why their vehicles cost more than Fords or Toyotas. If I were an Apple executive, I’d really have some harsh words to say and I probably wouldn’t be very popular.

    You’d think that Apple was forcing consumers to buy their products. A consumer can either afford a product or they can’t. Apple products are no exception. Why does the media make such a big deal out of this? I’m always hearing “If Apple prices were lower they could sell a lot more products.” Apple already sells more products than it can produce in a period of time, so a cheaper product will only cause more of a backlog which can’t be filled. Absolutely useless. Where are these pundits brains?

  8. Really………big picture here!!!! It’s a smart phone not the cure to cancer or the key to world peace. If you can’t wait for a phone with a ship time of a few weeks you really need to look at what important in your life…………it’s a phone for the love of a clean earth.

  9. The world divides into people… I really would like to observe the world dividing into people. But more than that I’d really love to see writers learn to write correctly and stop thinking that every verb is intransitive and active.

  10. this getting out of hand have any of you actually used a high end android phone? probably not judging by these comments…I switched to a gs3 recently from a 4 and I’ve gotta say this thing is incredible and I keep seeing more and more of them in the wild which is great because I can snag content from a friends gs with sbeam…also random kids at parties will come up to me and say is that the gs3? I hear it’s better then the iphone…having had both the answer is yes

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