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Case Title:

Apple’s “Low-End” Strategy: The Payoffs

Publication Year : 2005

Authors: Roopa Umashankar, Sumit Kumar Chaudhuri

Industry: Engineering, Electrical and Electronics

Region:USA

Case Code: CCA0014

Teaching Note: Available

Structured Assignment: Available

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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.

Pedagogical Objectives:

  • To describe Apple's product strategy
  • To discuss the payoffs of Apple's entry into the low-end market

Keywords :  Apple’s low-end strategy; Apple’s product strategy; Apple product matrix; Competitive Strategies Case Study; 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

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