March 18, 2009 by Simon King
(Continued from Yesterday)
The impact on the laptop business has been clear. In February, Windows based laptops fell in average price by a whopping 22 percent to $560 dollars a time. As well as demonstrating quite how worried the laptop makers are, this also shows something about the profit margins that they’ve been operating at up until now, that they can just slash their prices so quickly.
But what about the companies that can’t just slash their prices so radically, what about the boutique laptop producers that focus all their efforts on targeting the high-end of the market, essentially, what about Apple? Well, the company have been attempting to follow suit, but lacking the economies of scale that the PC makers enjoy and perhaps also the willing to change, they only managed a 7 per cent fall in average price in February.
This price drop, whilst nothing compared to the fall in PC prices, is significant, particularly from a company usually so allergic to price cuts. It shows that Apple are worried about the situation and willing to attempt to at least attempt to do something about it.
(continued tomorrow)
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