Apple Products and Price Inelasticity – Why are they Virtually Immune to...

Apple Products and Price Inelasticity – Why are they Virtually Immune to Price Changes?

3426
0
SHARE
Apple Products

Apple Products are currently one of the most sought-after computing devices in recent times. In the last two decades, the world has been held spellbound with products from the stables of Apple Inc, an American multinational company headquartered in Cupertino California.  Apple has a knack for creating unique mobile and computing devices that are difficult to replicate, owing to their proprietary technology and closed-source orientation. Currently, these are some of the most popular Apple Products:

Mac

Macbook Laptop computer

Mac, as is popularly known, refers to a range of laptops and desktop computers produced by Apple Inc. Some of the products in this portfolio include the MacBook, MacBook Air, MacBook Pro, iMac, Mac Pro and Mac Mini. These products are at the top of the food chain when it comes to the very best desktop and Laptop computers. They are highly revered by photo editors and photographers alike for their impressive ability to churn out crisp, high-resolution images.

iPad

Apple Tablet computersiPad tablet computers are the very best tablets you can find in the world. No doubt, Apple blazed the trail in tablet technology, which has seen her cash-in on the successes and global acceptance of the iPad range. Some of the products in the iPad range of tablet include iPad Pro, iPad Air 2, iPad Air, iPad Mini 4 and iPad Mini 2.

iPhone

iPhone computers

iPhone smartphones are currently one of the best-selling Apple products of all times. People stay up all night at the eve of their official release to lay their hands on these awesome gadgets. The iPhone range of smartphones contributed significantly to Apple’s record-breaking profits, by helping them achieve the biggest annual profit in corporate history. Some of the most recent iPhone smartphones include iPhone 6S, iPhone 6, iPhone 5S, iPhone 4s and many more.

Are Apple products unique and highly differentiated?

If there is any important characteristic going for Apple, then it is the uniqueness of its products and product differentiation. I mean, these two important product attributes are primarily responsible for their impressive revenues and profits. For starters, the iPhone camera uses advanced algorithms in its image processor to reduce blur, which isn’t a common feature of most smartphones. Most Mac computers come in incredibly slim designs that are difficult to replicate by competing brands.

Price elasticity of demand for Apple Products

Price elasticity of demand is simply a measure of the relationship between changes in quantity demanded for a product and changes its price. Demand for a normal product will simply decline once prices are raised. But when you are talking about an outstanding brand like Apple, with a very strong reputation in the corporate and social world, demand changes will hardly be noticed even when prices are raised. Are Apple products sensitive to price changes? I would say no, because the demand for Apple products is exceptionally strong, which makes them more price inelastic than elastic.

In conclusion, Apple products are simply the very best you can find in the tech world. The strong reputation the Apple brand has acquired over the years is simply one of the reasons customers respect and admire them, and will hardly budge even when prices are raised. In the face of rising competition in recent times, it is left to be seen if Apple can keep and maintain its exceptionally high product demand.

 

 

Photo Credit: flickr.com, apple.com

Good Gadgets Online

Good Gadgets Online

Good Gadgets Online is owned by a team of gadget and tech enthusiasts whohave passion for gadgets and technology. Our primary objective is to provide our readers and followers valuable information with regards to the latest gadgets and tech.
Good Gadgets Online

NO COMMENTS