Can Apple continue to charge more for their newer versions?

With the iPhone 5 rumored to be introduced today, it got me thinking, how does Apple continue to gather enough interest that people are willing to stand in line for their new products? There are clearly advantages to the product, but they come with a hefty price tag. I feel bad for other companies who try to compete in the mobile device market. For instance, Amazon’s Kindle Fire. It introduced a smaller updated version with a faster processor, more memory and longer battery life than its previous version. What makes it attractive is that even with the upgrades, the price has been cut to $159 versus the previous $199. That makes it way cheaper than the iPad, which starts at $399 (for the 2011 version).

The popularization and affordability of tablets will continue to push convergent journalism. With each new advancement and drop in price, we get closer to the paperless age. Heck, even kids have their own version of a tablet/e-reader! Toys R Us is making a 7-inch tablet aimed at children called the Tabeo. It will cost $149.99 and will be available just in time for the holiday season starting in late October.

By continuing to sell older models at lower prices, Apple is trying to remain competitive on the basis of price. However, other companies are going to start giving Apple a run for their money with better products at better prices, sans a half-eaten apple.

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