Apple and their growing product line
In class we’ve talked quite a bit about matching markets, and finding the best prices such that every person values an item more than any person values that item. In real life, we see this concept happening quite often. Particularly in companies that are trying to monopolize your technological ecosystem like Apple, Microsoft and Google. A few years back, having as many products as Apple currently does would be unthinkable. Too many choices makes it harder for people to choose. But over the past few years, as more and more players have come into the phone, computer and tablet markets, Apple has had to branch out and try to find a way to match markets for people such that all items any person buys is an Apple device.
Each new Apple device has some feature that targets a certain audience and tries to maximize the value beyond all other comparable devices for that audience. The iPhone SE is small yet powerful, which targets users who don’t like the new trend towards larger phones. The iPhone 7+ has a very powerful camera that lets users get artsy with their photography and have some great tech specs for the power users. The MacBook is all about being light, quiet and have a long battery life for simple day to day useage. The MacBook Pro is for people who want a high powered workhorse computer. Each of these items is targeting a certain demographic and trying to match the market with exclusively Apple products.
Furthermore, the interconnectedness of all these devices and their compatibility is a way to increase the relative value of all these devices over competitors to even better match the market create clearing prices.