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Apple Is Making "Free" a Strategy

Apple (NASDAQ: AAPL  ) is trying to fend off Google (NASDAQ: GOOGL  ) from the taking too much share in mobile, while at the same time keeping Microsoft (NASDAQ: MSFT  ) from gaining traction in mobile. Apple's solution has been to offer more and more services and software for free, easing some of the sticker shock on Apple devices. 

Apple has long offered many free services like iCloud and Photostream for free, but it's now offering iWork, iOS, OSX, and iTunes Radio without charge. What's the reason for the move? 

Apple may be leveraging its dominant place in mobile to expand PC sales. The iPhone and iPad are common business devices but the Mac hasn't caught on in corporate America yet. In the video below, Fool contributor Travis Hoium discusses why the PC market may be the real driver of the free strategy at Apple. 

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On November 15, 2013, at 1:09 PM, jdmeck wrote:

    How can Google take share if they don't actually sell anything? When are people going to realize how stupid an Apple/Google comparison actually is in reality?

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Travis Hoium
TMFFlushDraw

Travis Hoium has been writing for fool.com since July 2010 and covers the solar industry, renewable energy, and gaming stocks among other things.

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