AUG. 18, 2014, 6:50 AM

Apple Inc (NASDAQ:AAPL) creates designs that improve people’s lives such as iPad and iPhone. It is estimated that 70% revenue of Apple Inc (NASDAQ:AAPL) is generated by these two products, leading the company to another level of advancement. With the increasing popularity of Android smartphones and tablets, some people are of the view that this is a huge setback for Apple Inc (NASDAQ:AAPL)’s share in the market. It is felt that people prefer to buy other smartphones over an iPhone because of the huge price variation.

Considering this a few analysts have recommended that Apple Inc (NASDAQ:AAPL) should lower its product prices. Jim Edwards; a financial internal expert stated that Apple Inc (NASDAQ:AAPL) should change its pricing strategy if it wants to stay ahead in market. Likewise, Henry Blodget; a research analyst recently talked about the challenges that Apple Inc (AAPL) is going to face in near future. Furthermore, The CEO of Lenovo affirms the less desirability of expensive gadgets in future because of an increasing market competition.

When observed closely, the above mentioned viewpoints seem bona fide. The specifications of both iPhone and smartphones have close similarities. Additionally, Android technology is said to be as good as iOS. Android is envisioned to get even better than the software installed in iPhone. It is thus guesstimated that people in near future will buy other smartphones instead of an iPhone. Smartphones, despite their low prices cater to the needs of hi tech users.

In a tweet, Blodget criticized the steadfast prices of Apple Inc (NASDAQ:AAPL) products, saying there is no previous history of such consistent 3X charges of a tech company. Apple Inc (AAPL)’s success over the years has proved the theory of low pricing wrong. The company is achieving new milestones even after sticking to its towering prices.

Despite having competitors who sell laptops and tablets in comparatively lower prices, Apple’s Mac book is still a chart-buster in the market. Mac marked 18% more demand in the first quarter. In second quarter, the shipment raised to 13%, giving $5.5 billion profit to the company. Mac book is estimated to generate the revenue of $23 billion in the year 2014. The growth of Mac book has been slow but stable, earning Apple Inc (NASDAQ:AAPL) more success than many of the other thriving companies of today.

If considered the perspectives of financial analysts, the status and market value of Mac should have obliterated by now but the real picture is quite different. Apple Inc (NASDAQ:AAPL) is touching the new heights of success instead of decaying over time. Jean Louis Gassee, the former executive of Apple Inc (NASDAQ:AAPL) supports the company’s strategies by saying that neither low prices of other gadgets nor the introduction of net books could destroy the fame of Mac books and Apple products.

In addition, other Apple products such as iPod and iPad are strengthening Apple Inc’s bionetwork. Interestingly, Apple Inc (NASDAQ:AAPL) is not a non-static company and aims to introduce novel products in market. An iWatch is one of another innovative and classic product which is expected to be launched soon. Thus, Apple Inc (AAPL) always manages to get hold of the market in one way or the other, without getting out-dated.

Apple Inc (NASDAQ:AAPL) today has hit a trading value of $98.99 whereas the stock opened at a value of $98.49. The stock’s range over 52 week has been between 63.89 and 99.44 while its total market cap is 586.70 B.

 

 

 

 

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