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Apple’s Advantage In The Tablet Computer World

Posted 2/22/2011 8:30 am by

The iPad is cheaper, if not better.

Apple has sold millions of iPads, and with the upcoming launch of the iPad 2, expect them to sell even more tablet computers to the world.  While lots of competitors have jumped into the tablet computer world, nobody’s able to match Apple on one particular metric:  price.  That’s right, after years of over-charging customers for underpowered computers, Apple is about to out-cheap iPad rivals thanks to the Apple Store.

“The company can swallow the bitter pill of hardly making any money from iPad sales through its retail partners because it can feast off the fat profits it makes when customers buy directly through its retail outlets and the web store,” said Tech Republic’s John Hiner in a brilliant blog post.  “However, companies like Motorola, HP, and Samsung have to make all of their profit by selling their tablets wholesale to retailer partners.”

Of course, there’s also the little matter of how much Apple makes per MacBook sale.  If the company makes a whole lot of money on one laptop and a little money on a single iPad, the company can afford to keep the price of the iPad low and sell more of them.  The MacBook profits makes the rent; the iPad profits pay the water bill.  The iPad is a gateway drug to other Apple products, much like the iPod once was.

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