Apple Has Sold 100M iPods Since Nov. 2001 Launch
ipod only used a third of time that sony used to sold 100M its product. Now it almost control 73.7% of the U.S. market and a lot abroad market as well. "iPod dominates more than half the Japanese market and over 60% in Australia." Ipod can almost monopoly. The more market that been taken the more inelasticity it is and diminish substitutes, so ipod can be able to contrel the price a little bit and make more profit. Since it already had planty of complements, this business will grow biger which means this corp can make a huge money.
5 comments:
I do not think this situation will last for a long time if the price keeps that high. Not so many people can afford the price. I think people will choose a cheaper and more or less the same nice MP3. Due to the technology is now common, other factories can also produce high-tech MP3s. The monopoly cannot last for so long.
It's true that other companies can make better products and sell them for a lot less than Apple but the problem is that Apple is selling a name and an image. It's not the fact that the Ipod is so technologically advanced, it's the fact that having the Ipod makes individuals feel cool or that they "fit in". With all the of the recent Apple marketing tools and advertisements, Apple has indeed created an image that's as American as the Apple pie.
Ipod is the nost popular music player in the world and apple always have product innvation. New generation's Ipod alway better the old one. Some people like to have new one before the old broke. Not only ipod, there are many product rely on Ipod are very profitable.
I could see the Apple's I-Pod being equal to Microsoft's Windows. In both cases there are other company's that can produce the same type of machine or operating system, but they've already grabbed most of the consumers. In the case of Microsoft's Windows for example, people use it because they've always used it, because a lot of schools use it. There is nothing that says you can't get a MAC, but they are different in there own ways. So people just get into using one type because they don't have to learn how to use another. The I-Pod's controls are different then that of a Dell Jukebox. This difference although it may seem small to people who are tech savvy could be hard for the average person to get used to. Thus, I consider this a special market for both the mp3 machines and the operating systems for computers. As long as you have people who have always used a MAC and people who have always used a Dell Jukebox there will not be a monopoly in my opinion.
It obviously already has made big money. It popular because they have a good reputation and a big name. Its not their fault that people buy their product and not their competitors because thay have worked hard to establish their name.
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