Ryan Jones:

On a past Apple conference call, Tim Cook said “one thing we’ll make sure is that we don’t leave a price umbrella for people”. What’s that? A price umbrella is when a company with dominant market share maintains high prices, leaving an opening for new competitors to enter at lower price points. In the case of the iPad, the price umbrella until recently was at $499. Someone could enter that market at lower prices and exhibit classic disruption to push them out from the bottom up.

(Via Jim Dalrymple.)

July 26, 2012