While Target has not taken a huge hit during this economic recession, having this product will definitely draw new attention to their stores. Also, having the product sold at more places is good for Apple. Because it will be easier to access, more people will spend $500 for this new product. Not only will sales increase for Apple, but it attracts more people to target's stores in the hopes that they will buy other products while there.
The only person who lose with this new deal is Best Buy Co. Best Buy has been carrying the Ipad since its launch. Because it was the only other place other than the Apple Store to be carrying this product, they were making huge sales off this. Now, they have Target, a store that carries more than just electronics at low prices, competing with them. It is easy to say that Best Buy may be feeling a bit of a sales drop due to this new deal.
All in all, by selling the Ipad this holiday season, Target will have the opportunity to increase their sales on this hit product. And even though Best Buy will have some more competition, by still being one of three carriers of the product means that they will still have plenty of business.
Ariel Levin
Article Used: http://www.washingtonpost.com/wp-dyn/content/article/2010/10/03/AR2010100302269.html
Who would have thought that the Ipad would have been a success. For a while, I thought is was just a glorified iTouch and really just a creative bust for Jobs. However, I'm pleasantly surprised by its popularity. So it only makes sense that Target would want to sell it in its stores. It sells Apples other products, like the Ipod and Itouch there. With the holiday season coming up, this will allow buyers to get all their gifts at one place instead of buying a Wii here, a new bike there, and then traveling to the Apple store, waiting in line to be seen, and then getting an Ipad
ReplyDeleteThis makes me wonder how much of a profit Apple Inc. is making. In the beginning, there was a lot of exclusivity with only the Apple store selling its wares and then branching out to another retailer, Best Buy. To expand to Target means that there is an economic advantage for Apple Inc. How much is Target paying to have these iPads in stores? How much do they need to sell in order to see returns on investment? I guess we'll have to wait and see.
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