Home Technology Apple Inc. (AAPL) Selling High-Priced Devices, Giving Software Free

Apple Inc. (AAPL) Selling High-Priced Devices, Giving Software Free

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Apple Inc. (NASDAQ:AAPL) unveiled higher-priced versions of its hardware that were well in line with the market expectations. However, the company made significant changes in its software, and for the first time offered all-new versions of the operating system and other applications for free. According to analysts Tavis C. McCourt and Daniel Toomey from Raymond James, Apple is once again counting on its tactic of selling high-priced gadgets coupled with free software.

Apple Inc. (AAPL) Selling High-Priced Devices, Giving Software Free

Apple relying more on hardware

Apple’s strategy stands in contrast to its rivals, as most of them keep hardware priced low and earn revenue through software license or advertising.

Apple Inc. (NASDAQ:AAPL) unveiled new MacBooks and iPads that are faster, thinner, lighter and more powerful than the previous versions.  Apple made changes to its Mac line of PC also, which suggest that the company believes in ongoing innovation and strives to make better products, believe analysts.

Apple Inc. (NASDAQ:AAPL) did not announce any update for its Apple TV or iPod as was largely expected. Around 64% of users have now adopted iOS7 in the first month of its availability, and 20 million users have adopted iTunes radio already, from this it can be inferred “App Store monetization remains robust in 2013.”

Developer payouts surge 50%

Analysts believe the most important stat was the payment to developers, which was around $6 billion this year, an increase of 50% year on year suggesting that the ecosystem is in a strong position.

Apple Inc. (NASDAQ:AAPL) has around 1 million apps in its app store and around 475,000 of them are tailor-made for the iPad. Apple claimed that to date, there have been around 60 billion downloads which generated $13 billion in revenue for developers compared to $8 billion in 2012, and $4 billion in 2011. Two months are left in fiscal 2013, which suggest that the revenue can further surge for developers.

Nokia also unveiled new gadgets

Nokia Corporation (NYSE:NOK) (BIT:NOK1V) (HEL:NOK1V) also launched new gadgets though this new hardware holds little importance as the device division of the Finnish company will soon be taken over by Microsoft corporation (NASDAQ:MSFT). Nokia announced a phablet, tablet and low-priced Asha devices will be joining its string of products. Lumia 2520 is a tablet from Nokia that sits on Windows RT 8.1, has a 10.1 inch HD screen, LTE and Wi-Fi connectivity and fast charging capability. The price of Lumia 2520 is $499, and will probably sell in the United States, UK and Finland markets from this quarter.

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Aman Jain
Personal Finance Writer

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