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Apple misses another opportunity

Apple just rolled out its new family of iPads. The big highlight; of course, is iPad Air – not only does it have a retinal display, it’s lighter, better, and well-designed. According to the initial impressions of tech industry observers, the iPad Air is a homerun. The same with the iPad Mini there’s a lot of raves and positive reviews regarding this product.

However, the fact is; despite all the hoopla and positivity Apple has missed yet another opportunity. This opportunity goes to the heart of why Apple continues to lose market share in the tablet market.

Let’s face it; Apple is not going to go away, people will still look for an Apple tablet if they want to pay the money. That’s exactly where Apple’s dilemma is. It’s pretty much painted itself in the corner as some sort of a boutique-luxury company.

If you really think about it, there’s really no reason to pay $299-$499 for a piece of metal and plastic, when you can get a similar “diconfigured” gadget made of the same metal and plastic for $99 or $199. T
That’s precisely where the market is going with Google — Android-powered tablets; but Apple turned up its nose to all of that. It seems to think that it’s above pedestrian pricing and can continue to charge people in an arm and a leg for the privilege of carrying around a device that has that cool Apple logo at the back.

We shall see how far this takes Apple because as we already know Apple was comfortable being niche product back in the Johns Sculley days. Unfortunately, if you’re an Apple stockholder, going back to the Johns Sculley days is not good news. Many people who are holding Apple’s stock expected to go back up to $600. They expect the company to be a firm aggressive player and a fast expanding market segment.

Well, it looks like the release of the iPad Mini with retinal display at $399 pretty much answer all the speculations regarding Apple making a play for more market share; the answer is no, it’s retreating back to its comfort zone where it is a luxury niche brand.

There you have it. If you’re an Apple stockholder, you shouldn’t open a can of worms. If you’re a diehard Apple fan-boy this wouldn’t matter because you’ll be loyal regardless.

We’re not knocking Apple’s strategy; we’re just looking at it from an investor’s standpoint. However, for Apple’s own standpoint, if you just want to survive and make a lot of money at the same time be a niche player, this is the game plan.

Then again, if you are looking to buy Apple stock and expect it to go up, this should make you think twice.