Apple unveiled its new iPad during a San Francisco event on Oct. 23rd, 2013.  “Thinner, lighter and more powerful”, as Apple advertised it, legitimize a new name — “iPad Air”. This imperative move of Apple of launching its undated iPad just after iPhone 5S and 5C came out not long ago, directly speaks to the slumping sale of iPads in this third fiscal quarter, 2013. During Q3, iPad sales fell to $6.3 billion which dropped 27% over the same period in last year.

   In the maturing market of tablets, Apple’s iPad update launch was aimed to generate a higher edge over its rivalry such as Microsoft’s Surface Pro tablets and Nokia’s Lumia 2520. “Lack of update” of the third version iPads mis-fulfilled customers’ expectations and gave away its competitiveness over its rivalries. But Apple figured out a way soon enough to regain iPad’s profitability using “production innovation” and  “differentiation” which sheds lights on Porter’s Five Forces business strategy. Facing with the competitive supplier power and threats of substitutes in tablet market, Apple’s strategic move of launching its updated, high-end Pad Air can enhance its level of competitiveness and grow a higher edge over its rivalries, which would promisingly boost its future sales.

Resources:

http://edition.cnn.com/2013/10/22/tech/mobile/new-ipad-apple-event/index.html?hpt=ibu_c2

http://money.cnn.com/2013/10/18/technology/mobile/apple-ipad/index.html?iid=Lead