Eliminating the “price umbrella”.
A price umbrella is when a company with dominant market share maintains high prices, leaving an opening for new competitors to enter at lower price points.
Three tactics to eliminate this price umbrella:
- create a new product line (why Apple will launch an iPad mini)
- keep selling old hardware (e.g. the iPad 2)
- get someone else to subsidize the product
Also known as one of the reasons I bought a 10.1” Samsung Galaxy Tab 2. That and it totally infringes on all of Apple’s IP rights and Jobs would roll over in his grave knowing that a superior product was released at a competitive price.
But mostly because I just hate Apple.