In its first weekend of general release, the Nexus is sold out at some retailers. Stores such as, GameStop and staples have listed the device as out of stock, and according to Newsday.com, GameStop has gone through its two allocations of the tablet. Its next shipment isn’t due until August. Was Google’s forecasting of expected sales off or was this just an unexpected peak in sales due to its introduction?
All the popularity may be due to its affordability and favorable reviews from tech reviewers. Prices start from $199 for a 8GB version to $299 for its 16GB version. Where other tablets have failed, the Nexus might just be the first to give Apple’s Ipad competition. But, one of their problems is that they are reportedly making a very narrow profit on each of their tablets. The profit margin on each tablet is just over $30 per tablet. If Google continues to sell their Nexus with such a low profit margin, will they still come out on top and continue to be profitable? Or will they be forced to discontinue the tablet after the buzz of its introduction has worn out?
Recently, Apple announced that they would be developing their very own map app for mobile devices. There are already several map apps available for mobile devices, most popularly Google maps. What will make this app different and better than Google app. Why spend time, money and labor on something that already exists? Apple wants to be in control with this new app.
If Apple’s succeeds in creating this app that works efficiently and effectively, as other map apps or even better, Apple will continue to reign supreme in the technological world. Apple will need to establish product differentiation, and prove that this new app is worth the switch from Google app. Their new replacement for the Google apps might not go as well as Apple hopes. Some people do not like change and may not be as responsive to the new app as others. Their forecasting for this new app will be hard to do. They cannot be completely sure that the population will take to this new app kindly. While apple has had luck in the past with their innovations, there is no telling how the response to this particular new app will be accepted. Apple’s forecasting will simply be ball park numbers or guesses. The will definitely need to do research and development. Also, be sure to have surveys and a research panel to test out the functionality and like ability of the app. They should do this before their forecasting to have better numbers and get a good idea of what the public will think about the app. They can also find out what they don’t like, and possibly make changes and fix it.
Apple hopes to maintain the competitive advantage which they hold in the industry. Apple has a history of doing things out there or differently from their competitors. This innovative thinking has been prosperous for them, but this new app comes with concerns. Concerns that they need to take into consideration when creating this app. A good manager must be aware of all their possibilities that exist, negative and positive. With the possibility that this app will give you a view of the map that is clearer and 3D, compared to Google maps. Privacy issues arise. Apple needs to be sure that all information given by this app is one hundred percent accurate, else they could have possible lawsuits just like Google. For now, this app is in the developing stages and it is unclear when its final product will be available. Changes could be made from now till then but hopefully Apple can deliver something that will prove that Apple is the pioneer in the industry.