Apple's 'Low-end' Strategy: The Payoffs

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Case

Reference no. 305-179-1

Subject category: Strategy and General Management

Authors: R Umashankar (IBS Case Development Center); Sumit Kumar Chaudhuri (IBS Case Development Center)

Published by: IBS Case Development Center

Published in: 2005

Length: 12 pages

Data source: Published sources

Topics: Apple's low-end strategy; Apple's product strategy; Apple product matrix; Apple's iPod Shuffle; Mac Mini; Mac's market share; Apple's Internet strategy; Apple's digital hub strategy; Sales of iPod Shuffle; Mac Mini's major competitors; Apple's sweet spot; MP3 market; Apple's challenges in the low-end market; Global PC (personal computer) market

Share a link: https://casecent.re/p/63044

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Abstract

In early 2005, for the first time in its history, Apple Inc entered the low-end market by introducing its cheapest digital music player, iPod Shuffle, at $99 and a headless Mac Mini at $499. However, analysts observe that with these new products Apple is likely to run the risk of cannibalisation and might also face severe competition from established players like Dell, HP (Hewlett Packard) and Sony in the low-end market. This case study, while describing Apple''s product strategy, explains the payoffs of Apple''s entry in the low-end market. A structured assignment ''305-179-4'' is available to accompany this case.

Location:

USA

Industry:

Personal computers

Other setting(s):

2005