Apple’s efforts to lower prices explained

ipad-prices-steve-jobs

Some years back, tech pundits used to throw out the words “Apple tax” when describing Apple’s products. Macs were often much more expensive than Windows-based machines, but people would pay more for what they considered an exemplary product. In the last decade, things have changed. Now, Apple’s MacBook Air, iPad, iPod Touch, and iPhone are all leading devices in terms of price. They aren’t the least expensive, but they definitely aren’t on the high end of the spectrum anymore. In fact, many manufacturers are having an incredibly difficult time beating Apple on price these days. This is because the company makes very strategic component purchases for its new products, buying up key supplies for new devices and locking in low prices on different ends of the supply chain. 

The NY Times has an interesting article about Apple’s methods of lowering prices, which have long been headed up by new CEO Tim Cook. The article goes over the change in philosophy at Apple over the last decade and how its pricing has changed in the last decade. The benefit is clear, by containing costs through supply chain manipulation and attention to detail, it can produce premium products for mass market prices, opening up Apple products to millions of possible new consumers.

For example, did you know that before the iPad was announced, Apple purchased more than $4 billion in screens for the iPad? It bought up a majority of the world’s capacity to produce the screens. When the iPad took off, this left the rest of the industry to scramble and compete with one another for the remaining screens available so they could produce competing tablets. This may be one of the reasons why most manufacturers opted for 7-inch and 10.1-inch screens instead of the proven 9.7-inch screen size of the iPad. Only HP chose to go with a 9.7-inch screen with its ill-fated TouchPad. 

It’s almost certain that Apple’s lower prices have helped it make its remarkable resurgence. Oddly, by meeting consumers halfway, Apple has also forced a lot of competing manufacturers to up the quality of their products to use better, sturdier materials, more efficient production methods, and cleaner design.

Update: A few sentences added for clarity.

Product Review

The iPad Pro is the best tablet ever. But don't sell your laptop just yet

Apple has unveiled a big redesign for the iPad Pro, slimming down the bezels, adding Face ID, and the ability to attach and charge the Apple Pencil. All of this comes at a high cost however, as the iPad Pro starts at $799.
Computing

Does Qualcomm's latest laptop processor hold up against Intel's Core i5?

Qualcomm has been nipping at Intel's mobile CPU heels for years and now it might finally have overtaken it. To find out whether it's new SoC can hold its own in mid-range computing, we pitted the Snapdragon 8cx vs. Core i5.
Computing

Intel's discrete graphics will be called 'Xe,' IGP gets Adapative Sync next year

Intel has officially dubbed its discrete graphics product Intel Xe, and the company also provided details about its Gen11 IGP. The latter will include adaptive sync support and will arrive in 2019.
Product Review

How does the sleek MateBook X Pro hold up to the modern day competition?

Huawei impressed us with the MateBook X, a solid competitor to the 12-inch MacBook that beat Apple at its own game. Now, Huawei is taking a shot at premium 14-inchers with the MateBook X Pro, but it’s not without oddities – like a…
Computing

Costco members can cut up to $200 off MacBook and iMac price tags

Costco is discounting MacBook Air and MacBook Pro laptops by as much as $200 as part of a members-only sale. It also has deals on select MacBooks and iMacs, with optional Apple Care in most instances.
Mobile

Need to record calls on an iPhone? Check out our handy guide

Are you wondering how to record calls on your iPhone? It isn't as easy as you might think, but we'll walk you through the process of doing so with Google Voice, and identify several other apps and external voice recorders that can help.
Mobile

Leave the laptop at home, the iPad Pro is the travel buddy to take on vacay

The iPad Pro is a powerful tablet that's perfect for creatives and professionals. How does it fare when traveling with it as a laptop replacement? We took it on a two week trek in Japan to find out.
Mobile

Apple is spending $1 billion to hire up to 15,000 new employees in Austin

Apple has announced a series of expansions across the U.S. -- including a massive expansion to the company's Austin campus that will see it spending $1 billion to accommodate for up to 15,000 new employees.
Computing

Style up your MacBook Air with one of these great cases or sleeves

Whether you’re looking for added protection or a stylish flourish, you’re in the right place for the best MacBook Air cases. We have form-hugging cases, luxurious covers and padded sleeves priced from $7 to $130. Happy shopping!
Mobile

Ditch your smartphone for a year and win $100k from Vitaminwater

Vitaminwater is willing to part with $100,000 if you're willing to part with your smartphone partner for a year. Could you last for a year armed with only a 1996-era phone? Here's your chance to find out.
Deals

The best Apple Watch deals for December 2018

The Apple Watch has surged to prominence in recent years. If you're in the market for an iOS wearable, we've sniffed out the best Apple Watch deals available right now for all three models of this great smartwatch.
Deals

The best MacBook deals for December 2018

If you’re in the market for a new Apple laptop, let us make your work a little easier: We hunted down the best up-to-date MacBook deals available online right now from various retailers.
Deals

The best iPhone deals for December 2018

Apple devices can get expensive, but if you just can't live without iOS, don't despair: We've curated an up-to-date list of all of the absolute best iPhone deals available for December 2018.
Deals

The best iPad deals for December 2018

In the wide world of tablets, Apple is still the king. If you're on team Apple and just can't live without iOS, we've curated an up-to-date list of all of the best iPad deals currently available for December 2018.