Red Hot Apple Products Continue to Force Lower Prices Among Competing Products

[Michael Essany]

Perhaps the most under-told story in the tech space today is how dramatically the success of Apple products is impacting the sales prices of what some would consider to be competing products. Just today, two examples of how iDevices and Apple TV are forcing new price points among competitors are making headlines.

On Thursday, Logitech had to reveal that sales of the Google-TV-based "Revue" aren't working out so well. In fact, negative sales were seen in the previous quarter. That's right - returns actually surpassed sales. So how does Logitech respond? Thanks to Apple TV's attractive $99 price point, "Revue" will now be similarly priced as such.

And the examples just keep rolling.

It's no secret that iPhones, iPod touches, and the iPad have become - to a degree - some of the hottest platforms for mobile gaming in existence today. As a natural consequence, competing game-makers - but chiefly Nintendo - have been forced to modify their own business and sales models to better compete with the unanticipated contender in mobile gaming that is Apple.

According to published reports this morning, the Nintendo 3DS - a relatively hot product that began retailing for $249.99 when it debuted in early spring - will have its price similarly gutted all the way down to $169.99 effective August 12th.

What remains to be seen, however, is whether or not these price cuts can propel lagging sales for these products into the holiday shopping season and beyond.

Source: MTV, Bloomberg

[Mes]

Followers must either innovate, reduce prices, or market more.
Even that does not guarantee success at displacing the big gorilla

[RICO_]

And how do we know for sure that the iPad and iPhone are the cause of sluggish sales for the 3DS. According to the article their biggest competition seems to be its predecessor.....not Apple.

Apple iPads are used for much more than just gaming....therefore they are more versatile and more popular. Comparing their sales to a device used strictly for gaming only is ridiculous.

[SwatPac]

This is great news for consumers. I never thought I would say this, but Apple is actually helping us save money.

Hmmm. This must be why NetFlix RAISED their prices recently.

And how do we know for sure that the iPad and iPhone are the cause of sluggish sales for other manufacturers?

Common sense. Apple is responsible for all the things that have ever happened. Is it just me or does Your comment have a hint of Troll-y-ness?

[Painkiller006]

And how do we know for sure that the iPad and iPhone are the cause of sluggish sales for the 3DS. According to the article their biggest competition seems to be its predecessor.....not Apple.

Apple iPads are used for much more than just gaming....therefore they are more versatile and more popular. Comparing their sales to a device used strictly for gaming only is ridiculous.

Agree 100%. I highly doubt Nintendo had to lower the price on the 3DS to compete with the iphone or ipad. I rather play games on the 3DS over the iphone or ipad any day.

[GmAz]

And how do we know for sure that the iPad and iPhone are the cause of sluggish sales for the 3DS. According to the article their biggest competition seems to be its predecessor.....not Apple.

Apple iPads are used for much more than just gaming....therefore they are more versatile and more popular. Comparing their sales to a device used strictly for gaming only is ridiculous.

Agreed. The Nintendo DS is still a good handheld game console. There are tons of games for it.

[sziklassy]

Aside from the iPhone (on contract), haven't Apple's products ALWAYS been more expensive than the equivalent competition? Don't get me wrong, I am not ripping on any company here, but I don't recall a time when buying an Apple product saved me money over the competitor, even in markets where Apple is/was the underdog.

[RICO_]

Common sense. Apple is responsible for all the things that have ever happened. Is it just me or does Your comment have a hint of Troll-y-ness?

It's just you. And the fact that the two people that posted directly after you agree with ME would probably negate your opinion that I am a troll. Deal with it.

[Mes]

... but I don't recall a time when buying an Apple product saved me money over the competitor, even in markets where Apple is/was the underdog.

True. Times have changed.

[sziklassy]

$80 price reduction less than a year after launch on the 3DS... happy I never got one. Just might have to now...

[Mainevent94]

I set the picture as my Droid wall paper :P

[Painkiller006]

It's just you. And the fact that the two people that posted directly after you agree with ME would probably negate your opinion that I am a troll. Deal with it.

Anyone that doesn't worship Apple is a troll to him. He is stuck in his little Apple bubble, sooner or later it will have to pop.

[daffysam22]

We get it, Mike; you like Apple. We all do. I would just like to know if you even believe yourself when you make statements like -a story about Apple crushing the competition is in any way "under-told" around this site?

[RICO_]

This entire article is completely without merit in my opinion.

Nowhere does it state in either article link that Apple is a direct result of these price drops. In fact the closest thing is a mention of tablets and smartphones in general affecting Logitech and Nintendo DSs sales. But there are many more tablets out there than just Apple, and no the fact that Apple is the most popular does NOT mean that Apple alone is responsible for the effect. There are several tablet manufacturers that you, Mr. Essany should have mentioned....not just your little Apple snuggle bear. Logitech's problems seem to be based more on operational problems and company morale which is why the CEO had to step back in and take care of business.

Just because the price they lowered Revue to just happens to match up with Apple TV's price tag does not mean that Apple is a result of the price drop. There are many factors that play a role in the ups and downs of business, and assuming that one particular company is the sole result when there is no legitimate proof to suggest that is downright laughable.

[DigiNuke]

First of all, Nintendo lowered the 3DS price because they didnt make as many sales this past fiscal year as they had expected. Ipod/Iphone/Ipad games are in no way a competitor because appstore games are not as long or as pleasing as a console/handheld game. Nintendo's only competitor is the PSVita which isnt even available for purchase.

(just as a side-note, every person that bought the 3DS for full price is getting 20 games for free from the e-Shop, all of which are either NES or GBA)

[iphone?3gs]

And how do we know for sure that the iPad and iPhone are the cause of sluggish sales for the 3DS. According to the article their biggest competition seems to be its predecessor.....not Apple.

Apple iPads are used for much more than just gaming....therefore they are more versatile and more popular. Comparing their sales to a device used strictly for gaming only is ridiculous.

Not really, the 3DS is marketed as a game console, but can do some of the basic things an iPod touch can do. Web browsing, music, multitasking, apps, and obviously gaming. The iPod touch isn't marketed primarily as a gaming device, but we all know that the iOS platform had taken a chunk out of nintendos market share. Yes, the iPod touch isn't marketed as a gaming device, but that's one of the main reasons of it's popularity. A lot of kids rather get an iOS device than a Ds these days. A lot. Nintendo's CEO has said himself that Apple is big competition. And there's a big reason.

You can get an iPod touch for $199 and the money you saved from the 3DS, you can easily buy 10 good games.

First of all, Nintendo lowered the 3DS price because they didnt make as many sales this past fiscal year as they had expected. Ipod/Iphone/Ipad games are in no way a competitor because appstore games are not as long or as pleasing as a console/handheld game. Nintendo's only competitor is the PSVita which isnt even available for purchase.

(just as a side-note, every person that bought the 3DS for full price is getting 20 games for free from the e-Shop, all of which are either NES or GBA)

For you they might not be a competitor. But for most kids it doesn't really matter. It is competition based on the target audience, kids.

The PSP was always more advanced than the DS, better graphics. "More appealing", it had features in the first gen that the Ds just got in it's 4th gen. But, it never stopped the DS from coming on top. The same way the iOS platform may have shorter and less appealing games, it still comes out on top for children's choice. (Yes there are exceptions to this )

[psp257]

First of all, Nintendo lowered the 3DS price because they didnt make as many sales this past fiscal year as they had expected. Ipod/Iphone/Ipad games are in no way a competitor because appstore games are not as long or as pleasing as a console/handheld game. Nintendo's only competitor is the PSVita which isnt even available for purchase.

(just as a side-note, every person that bought the 3DS for full price is getting 20 games for free from the e-Shop, all of which are either NES or GBA)

10 new starting sept 1, 10 gba around the end of 2011, but u need to connect to the nintendo eshop on aug 11 before 11:59 pm eastern standard time
lucky for me, i got mine a few days/weeks after it came out (can't remember when)

[hitman10]

Regardless if Apple is the Direct cause or indirect cause, I'm willing to bet big time that Apple destroying the market. You can compare an iPad to a $250 3ds they are both considered gaming devices because 'you' feel it isnt doesn't make it that way.

I was reading somewhere that some guy thinks this has no merit..
well bud you must miss all the report MMI puts on here.. let me show you a couple
just incase you got lost or your new.

iPhone Sets Guinness Records:
Apple, iPhone and iPad Forums at ModMyi - iPhone Sets Guinness Records

Sony Rolls Out Two New Tablets to Challenge the iPad:
Sony Rolls Out Two New Tablets to Challenge the iPad

Top Gaming PR Executives Heading to Apple:
Apple, iPhone and iPad Forums at ModMyi - Top Gaming PR Executives Heading to Apple

Apple TV Dominates Netflix: Racks Up More Hours than The iPad:
Apple, iPhone and iPad Forums at ModMyi - Apple TV Dominates Netflix: Racks Up More Hours than The iPad

EA: Apple Should Take Console Gaming Challenge:
Apple, iPhone and iPad Forums at ModMyi - EA: Apple Should Take Console Gaming Challenge

Nintendo Declares War on Apple:
Apple, iPhone and iPad Forums at ModMyi - Nintendo Declares War on Apple

This took me 1 search with the word Nintendo in it. On MMI. you'd be an idiot to think otherwise.. prove me wrong..?

[jOnGarrett]

Hey *** mod edit ***,

its the economy that's responsible for sluggish sales and lower price, not apple. what a crock of *** mod edit *** this article is.

[RICO_]

Regardless if Apple is the Direct cause or indirect cause, I'm willing to bet big time that Apple destroying the market. You can compare an iPad to a $250 3ds they are both considered gaming devices because 'you' feel it isnt doesn't make it that way.

I was reading somewhere that some guy thinks this has no merit..
well bud you must miss all the report MMI puts on here.. let me show you a couple
just incase you got lost or your new.

iPhone Sets Guinness Records:
Apple, iPhone and iPad Forums at ModMyi - iPhone Sets Guinness Records

Sony Rolls Out Two New Tablets to Challenge the iPad:
Sony Rolls Out Two New Tablets to Challenge the iPad

Top Gaming PR Executives Heading to Apple:
Apple, iPhone and iPad Forums at ModMyi - Top Gaming PR Executives Heading to Apple

Apple TV Dominates Netflix: Racks Up More Hours than The iPad:
Apple, iPhone and iPad Forums at ModMyi - Apple TV Dominates Netflix: Racks Up More Hours than The iPad

EA: Apple Should Take Console Gaming Challenge:
Apple, iPhone and iPad Forums at ModMyi - EA: Apple Should Take Console Gaming Challenge

Nintendo Declares War on Apple:
Apple, iPhone and iPad Forums at ModMyi - Nintendo Declares War on Apple

This took me 1 search with the word Nintendo in it. On MMI. you'd be an idiot to think otherwise.. prove me wrong..?

None of those articles have anything to do with this one. But nice try. It doesn't change the fact that this article is implying that Apple alone is responsible for Nintendo's 3DS sales issues when in fact it is the tablet computer in general. And there are other tablets out there besides Apple. Apple is just the one being focused on because they hold the biggest numbers, but other manufacturers are taking chunks out of the market as well. And even at that the article link itself claims that the Nintendo 3DS' biggest competitor is it's predecessor and game development issues.

And I find some of your article references amusing. How is it that Apple TV can "dominate" NetFlix when they are USING NetFlix to stream their content through Apple TV? Their dominating the iPad.....not NetFlix. And I also find it hilarious that they can classify the iPhone as a "portable gaming system" when it is designed and mainly used as a phone and music player. It is not a dedicated gaming system just because it has the ability to play games. They're comparing a smartphone sale to a portable gaming device sale. Walk into any electronics store and I'm pretty sure you won't find an iPhone in the XBox/PSP/Nintendo gaming console section......because it is not a portable gaming system......it's a portable PHONE/music player that just happens to have the ability to surf the web and play your average game where your fingers constantly get in the way via touchscreen controls. So naturally the ability to do all of those things combined with the virtual necessity for a cell phone nowadays will make it a more popular device. But ask anyone who has played a 3rd person shooter on a PSP vs. an iPhone and they will undoubtedly prefer the PSP.