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>If you consider the iPad a computer, then Apple's product line is cannibalising itself, which would also be an issue. Say what? You know Apple doesn't sell ju
by freehunter 10y ago
>If you consider the iPad a computer, then Apple's product line is cannibalising itself, which would also be an issue.
Say what? You know Apple doesn't sell just one computer, right? They don't have any product called the Apple Computer. They have several different laptops, several different desktops, several different AIOs, and if you consider an iPad to be a computer, several different tablets. No one is saying the Macbook Air is cannibalizing sales of the Macbook Pro, or that the Mac Mini is cannibalizing sales of the 27" iMac. They might be computers, sure, but different computers are built for different use cases. There's a world of product differentiation between those offerings.
- anjc 10y agoCannibalisation refers to competition within your own product-line causing a reduction in revenue. E.g. with simple figures: Apple spend 1 billion producing iPads from start to finish, and selling them produces 10b in income. They then introduce Macbooks which cost 5b to produce and result in 10b in income. If the introduction of lower margin Macbooks causes a 25% drop in sales of higher margin iPads, then the profitability of their product line has been reduced due to inter-product competition. It's generally not a good thing and represents a waste of resources.