Apple's iPad

Hey guys,

I was doing a little research on Apple Inc. I’m pretty sure some of you are very familiar with them but here are just a few things I thought was interesting to me that I found in the Wall Street Journal. I do not have an iPad yet, but I am looking to invest in one.

Apple Inc. has been a very innovative MNE for many years. Apple has been around since 1976 and continues to show signs of growth by the many products they offer to consumers. Recently they’ve introduced a new product called the iPad, into the market that had consumers lined up in front of stores waiting for them to open just so they could get their hands on one. Some stores sold out because of high demands. What makes buyers go crazy over gadgets like the iPod, iPod touch, iPhone, or iPad? It is because of the attention of new devices, the name and image, and the advance technology it offers?
One loyal and devoted customer Jason Kincaid stated he “had to have an iPad; it’s changing the paradigm of how we will use computers” in an article written by Geoffrey A. Fowler and Shira Ovide from the Wall Street Journal. Jason has brought two iPhones, an iMac, and a Mac Book pro laptop to add to his collection. Apple has captured a lot of market share and has gained new market access because of the variety of products they offer. There was so much energy and excitement surrounding the release of the iPad, which even visitors from Canada had to get there, hands on one as well. What made the iPad so intriguing to consumer? Apple’s customers love the products because its user friendly, very appealing, it’s convenient, and handy. In addition to the many features, there are different applications that are offered with the program. Apple’s products are faster than most PC’s and they have limited problems compared to other systems. Studies have showed that 3,100 iPad applications were available for the iPad when it became available. Some of those programs were originally developed for the iPod and iPhone but they can also be used on the iPad.
With the launch of the iPad, many reviews from newspapers and magazine companies have published worries about iTunes sales falling because sponsors desire to sell their publications else where. Many newsstands could be hurt because of the iPad due to all the applications that are available for downloading. Consumers may no longer buy newspapers or magazine and could go green if they invest in an iPad and subscribe to monthly subscriptions to top media companies. Publishers from top magazines and newspaper companies have to give Apple 30% of their profit when customers subscribe to their publications. In return Apple doesn’t release any important information to publishers about what their customers are buying. Publishers have used other measures to reach out to their customers, by taking surveys to find out what keeps their interest. Some publishers are wary of sales on iTunes.
Apple has dominated the market for many years. They know and focus on their areas of core competence, and they are making continuous improvements by being innovative. They have also developed a competitive strategy that helped them increase economies of scale for the long term.

Ericka B.