Why the iPad 2 has a low price compared to its competitors.

  Unlike it's competitors Apple has released the iPad 2 at a Low price compared to the competing tablets that have been released or will be released.

 The iPad 2 starts at $499 in which other companies are finding hard to reach and that is the reason why Steve Jobs have said that 2011 is the year of the iPad 2 and that it will outsell the first generation iPad which in experts eyes is the most soled device in history. So the Question is how was apple able to reach this price point where all the competitors have failed?
      Well unlike many manufacturers apple owns the companies that provide the hardware for its devices (in other words they manufacture every single part of there products) which makes them be able to control their prices, moreover the success of the device makes apple  able to order large amount of materials (like Aluminum which apple uses in all of its products) that the devices require at relatively low price so they are able to produce large amounts of there products at low prices and sell them at a very competitive price and make lots of profit on the way. The problem that the competing companies are facing in using the strategy that apple uses is that they're not able to produce large amounts of there products in fear that they might not be able to sell most of there products to the consumers which will lead to the fall of these companies and declaring bankruptcy. So as you can see apple has made a gamble by using this strategy and they have clearly won it.