Apple now enters with a high cost player without a display which would seem, well, kind of stupid except for the capacity of the thing. It does have more capacity than most at the same price point today (but that will change before the end of this quarter). This seems to me to be a value play (we are the least expensive) and typically that play is not made by a premium vendor like Apple for fear of damaging the brand. $100 is a very popular price point and when you realize that products with more capability will be selling very soon for less you have to really wonder if Apple is watching the market. Perhaps it is time for Apple to go to CES so that they too can see what is coming. Running a company, like driving, is incredibly dangerous with your eyes closed.

The end result should be good numbers with the new product but declining sales of the more expensive offerings. If the same trend is repeated they will gain market share but at the cost of profitability and overall revenue could decline as well.



Link: Designtechnica