iPad pricing: How low can you go, Apple?
The iPad's lower-than-expected price may go lower still if the device doesn't perform as well at market as Apple hopes. Recounting his recent meeting with some executives from the company in a research note issued last night, Credit Suisse analyst Bill Shope said Apple is evidently quite willing to get even more aggressive with the iPad's $499 to $829 pricing.
(Credit:
James Martin/CNET)
"While it remains to be seen how much traction the iPad gets initially, management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated)," Shope wrote.
Now, it's a truism that most companies are open to price cuts on any product if they need to increase sales. That said, this is an interesting disclosure coming from Apple execs, particularly so far in advance of the iPad's actual debut.
Certainly, it calls to mind the company's decision to slash the price of the iPhone by $200 two months after it went on sale and the early-adopter rebate it was forced to issue afterward.
It seems odd, then, that Apple execs would even hint at the possibility of an early price cut lest they give folks already on the fence about buying the first iteration of the device more reason to stay there. Unless they're planning a prerelease price cut to really juice sales. Remember, Apple reportedly stands to make about a 42.9 percent margin on the iPad, so there's presumably plenty of room for the company to hit an even more aggressive price point that would really put the device in the Netbook range.
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Very simple. This whole story is FUD leaked those seeking to short the stock. It is so out of character for Apple and I find it incredible that anyone would believe it. Talk about putting a gun to your marketing head.
I think if you get used to a device where you have such fast acces to the web (and not forgetting apps that start just as quick), suddenly that netbook will feel very cumbersome and slow.
Are you kidding me? My iPod Touch takes forever to start up (definitely over one minute). And Safari is a nightmare. It's slow as heck, and just trying to scroll on a page... oh man... *waits for the page to load*, *scroll, scroll, scroll* "Ok, why isn't it scrolling? No, not horizontal scroll, vertical scroll. Gah, NO! I did NOT want to click on whatever random link that was, go back! go back!... Ok, ***, why did it have to load up at the top of the page?? Great, now i have to try scrolling down again... ok, now it froze.. Why won't this just work?! *sob*"
If the iPad experience is anything like this, then no thank you. And why the heck is there no FIND feature for searching on a web page that's filled with pages upon pages of text? God I hate that (along with other missing features).
...UNLESS those hints are directed at potential content providers -- as an assurance that Apple won't let price stand in the way of making this a truly widespread platform.
It's true that the "hint" might make some rumor-savvy consumers wait and see if a better price materializes. But then again, those same consumers might remember the iPhone early-adopter rebate and assume that Apple likewise will make it up to them somehow.
come on i should not compare the Ipad to any other device that does not belong in the ebook reader category but i will just for the fact that there are so many beautiful devices that are not only convenient but innovative at the same time make our life easier such as nokia n900 which has an ebook reader. ( you can install it from maemo) i rather buy one of those new android phones than ipad.
what i am looking is for a device that will give me more bang for my buck . example (the iphone did that for me ) the ipad comes short in portability features and etc etc.
hit it fanboys ......
I'm not saying the iPad will bomb nor am I saying it will be a huge success. Rather, I'm suggesting we stop the predictions and let the facts do the talking in time.
We [geeks] sound just like gossipers discussing what celebrities will break up in 2011.
That is all.
"Multi-tasking you say? Too confusing. You don't want to be distracted from making your iTunes purchase now. do you?"
"Flash - you say? I'm going to save you from that too! iTunes will provide everything you could ever want. It's been shown in our labs that Flash will make your computers explode. And is a major cause of hair loss."
Don't thank me friend - just open up you wallet and buy The Pretty Magic Box today!"
C: Enter ###
Except when they check facebook the games will be a no-no, when they check that news site the embedded videos and interactive charts will be blank.
There are a million people who don't realise how pervasive Flash is would probably be more realistic.
The iPhone isn't life. A good chuck of those folks on Facebook use Flash. They will be utterly dissapointed when their Zinga Poker and Mafia Wars doesn't work and since they arent' techies they won't give a ratts ass why HTML5 is better than Flash. They will merely return the device that "just doesn't work" and find something that does.
Size is really the main issue I have with this. I want all the experience that it has without something that doesn't fit in my pocket (vaio P doesn't count).
But first the price(s) has to actually drop before any of this applies...
Don't compare it with the iPhone experience. As much as die hard Apple Fan's want to Admit it, FLASH is here to stay for at least 5 years (if Adobe doesn't upgrade their current offerings).
This is 2010 and the end user's everyday usage of the Web includes FLASH. HTML5 is about as mature as the average iPod user. NO FLASH, NO MULTI-TASKING, NO PUT WHAT I WANT ON MY PHONE, NO APPLE JACKING UP E-BOOK pricing.
There is an entire world outside of Apple and the iPhone. Take me for example, dumped my 3GS for Nexus One and realize a phone can act as a real computer.
Apple. Learn how to chew gum and walk at the same time and come back with a new version of the iPad OS. In it's current version it's pathetic given what is available on a $300 NetBook.
Steve Jobs, NetBooks do a lot of things right, now tell me what the iPad lacks.
iLose/youLose.
If the iPad is Apple's best offering to date. Fire Steve Jobs and get someone with vision.
Missing your floppy drive much ? how about your command-prompt ? Serial ports ? You do ?...well quit living in the past.
I will NOT BUY an iPhone/iPad if it runs flash in it's current form. i do not want crap software, or even the option of using it, bogging down my experience of using a device.
You are the ghost-of-past computing. You and your 'kind'(nerds and microsofties) have had 'Smartphones' and tablets with flash and multi-tasking and install-anything and a desktop OS on these devices, and guess what THEY FAILED. They failed in the marketplace because no one except the niche of people like you wanted them...the microsofties and nerds. The products you want are made exclusively by nerds for nerds. Apple makes technology that ANYONE can use and that EVERYONE *wants*. With a single announcement of a single device running a single OS, with services maintained by 1 company.... Apple has managed to get more interest in tablet computing from the public than Microsoft/Dell/HP/Acer/Toshiba/etc...have managed over the past decade.
Stick to your bargain-basement run-of-the-mill x86 hardware with a last-gen OS that desperately tries to copy the technology and aesthetics of what every Mac and iPhone OS user is using today.
And regarding your NexusOne.... is there a place for me to buy music/movies/TVShows/Apps/Books ? does it have 140k Apps ? Is it as simpler to understand than the iPhone ? does it look as good(software and hardware) as the iPhone ? is it easier to develop for than the iPhone ? Does it have the best support in the consumer electronics industry ? No ?...then i DO NOT WANT IT.
Also...HTMP5+H.264 is the future of web-video, Flash is the past. Cling to your floppy discs if you must....the rest of us will adopt better technologies and move forward.
"If the iPad is Apple's best offering to date. Fire Steve Jobs and get someone with vision."
"Apple's market cap has grown from $16.5 billion in December 1999 to $174 billion this week. Microsoft shrunk from $604 billion in December 1999 to $244 billion. In the most recent quarter, Microsoft had revenues of $19 billion compared with Apple's $15 billion. Back in the last quarter of 1999, Microsoft held a more than 2-to-1 advantage."
Source: http://www.mercurynews.com/breaking-news/ci_14337326
So my advice to technology and financial-analysis firms would be to NOT HIRE fshea.
I on the other hand, given the data, believe that Ballmer will not be CEO of Microsoft on 31st December 2010.
Boom!
They failed? Who's the richest man in America? Oh, it isn't Jobs. Right. Forgot. Stupid me.
Apple makes technology that I can't force myself to use and I do not want. Don't speak for the majority (80-90%) of computer users.
Apple managed to get more interest, but when they revealed the actual product the polls went into a tailspin and 20% of the U.S. decided to change their opinion from "definite want" do "definite do not want". Hype for an unspecified product does not mean a good product. News flash: nobody gives a **** about tablet computing, and nobody ever will.
My hardware happens to be x64, not x86. Remember how Windows has supported 64-bit since XP? Unstable, yes, but look at Windows 7 today. I'd say that most of my technologically-advanced friends are running 7-64. And no, I prefer my text-based OS instead of icon-based meaningless symbolism that simply removes any hint of professionalism.
I don't have a Nexus One (I can't function without a hardware keyboard thanks to my big fingers - perhaps I should sue Apple for forcing me to use a tiny touchscreen keyboard and thus discriminating against me?) but I do have a Motorola Droid. I don't buy music, movies, or TV shows on my phone (that's what a bigger screen - i.e. a computer - is for), yes, it has an App Store of sorts, no, I don't need 140 "fart" applications, and I don't read books on a tiny screen. I picked up an iPhone in an AT&T store 2 years ago and couldn't make heads nor tails of how to navigate it. I don't care about support because I'm not a total computer idiot. All told, this is the first phone I have ever held that I am genuinely addicted to. But hey, different strokes for different folks.
HTMP5 (do you mean HTML5?) is the future, but rarely anything supports it (such as IE). Flash is... not really in the past yet, sorry. Check your computer. Does it use Flash? Yeah, it does.
Oh well.
does not work for the industry. If he did, he would know how important parallel and serial ports are.
give me a break. Why don't you come out from under the rock.
When a competing product(equal or better in quality, performance, style and/or value) is released at a lower price point than the announced $499, Apple will have an incentive to drop prices.
Right now, the competition in this space is in disarray....little to no profit on current offerings, a complicated/convoluted product offering with no 'added value' than a desktop/laptop computer, aesthetically inferior(imo), etc....
So as much as I too would like an iPad for $199 :D, i dont think Apple has any incentive(competition) to drop the price right now.
"When a competing product(equal or better in quality, performance, style and/or value) is released at a lower price point than the announced $499, Apple will have an incentive to drop prices."
There is. Any notebook or netbook. They provide more for less. Also, Apple has every incentive to drop the price right now. Which it is why its even being mentioned.
1. Flash. Necessary for a quality internet experience. Whether you hate flash or not, it is everywhere right now and won't change anytime soon. Apple will be on the 20th ipad generation before html5 is widely used. That's the reality.
2. ATT. This is MY BIGGEST ISSUE. I'm tired of paying $100/month for myself and then for my wife for 3G that we've never used. We always have our phone on the Edge selection because 3G is never faster, always spottier, and drains the battery too fast. So we're paying a premium for something that is never available. Clearly ATT has service problems. Rather than spend over $100 million on way too many Luke Wilson commercials, invest in a better/faster system to handle the level of use. (Or just cut our rates. I would seriously consider no longer using the iphone if a service provider came out with a mission that said "we don't advertise so we can charge you half as much--and you still get a good iphone knockoff". ) And the ipad will only make this problem worse. And I'm not saying another carrier would not have the same problems being crushed by so many data users. But that is what the iphone was built to do (remember 3 years of commercials showing data experiences and then maybe a phone call?). So quit spending money on marketing and start fixing the service. Or face a major lawsuit as you keep adding subscribers while bilking us loyalists with shoddy service.
3. ipad ATT costs. Yes, it is lower, but if I'm already paying for ATT then I'm most likely only using one device or the other so don't charge me twice. Figure out a way to "authenticate". Yes, some people will have their family member use it while they are on the phone so they'll double dip. But I'm betting that will be the exception and not the norm. Either way, ATT can figure out some system so we only pay once. More importantly, fix the damn service so we get what we pay for!
4. Operating system. Give me a real operating system on the ipad so I can actually replace my laptop. Otherwise this is just a nice to have and not must have. I'm sure it will drain the battery faster, but ok.
Give us these items and it will be a must-have like the iphone was when it launched.
And send me a lifetime list of products for my insight. Though none of it hasn't been said before...
Agree about the Flash.. while I turn off Flash in all of my browsers.. I have the OPTION to do so. It's there when I need it. The iPad is more than capable of running Flash content.. and the absence of Flash will be glaring on such a large screen.
It would take away all of Apple's control over the devices if Apple let it run on portables. Then there goes Apple's profits.
Well lets see, teh ability to download stuff from flash based apps is enough to keep apple at bay.
-So I am in the kitchen cooking and I am looking at a recipe -- I currently use the iphone --but I want to share the screen without getting any one hands or device messy/laptop/etc -- the ipad can be an answer to that question with the proper mount.
-After cooking dinner -- I want the kids to do some reading quietly or listening to some music -- yes they can use the book which I would prefer or they can use the ipad because the can look up definitions via dictionary.com and write notes while they are reading.
-Now in the car with kids rather than buying a DVD player for the vehicle we place the movies on the ipad and place it behind the seat or they can help in the navigation
There aren't reasons why anyone needs a new gadget. They do answer the question of why someone could use the device.
When it comes to computing I know four types of people:
1-People that have a computer to say look at email, search, look at facebook, look at recipes, pictures, videos, yes the list goes one.....
2-the people that use a computer at work and think they work with computers
3-the people that run, Protools, Crysis, AppSevers (for testing purposes), write Java, C#, C++, Assembly, databases, compilers, vnc, rdc, and the like
4-All of the above
I would think that I fall into type 4 and I would like an ipad for the reasons I mentioned above. At this point and any point after buying the iPad will be subjective
So you were saying????
To those who want it for $150? Only in 2025. Remember, Apple isn't Sony, they don't want to lose $ per hardware sale, I mean they are in a business to make a profit on their HARDWARE, not the software.
Me? I'll buy one...when it comes with the missing camera it was supposed to have. And maybe 128GB of space. And a built-in SD card reader.
I don't like unnecessary use of redundant repetition, especially when done at a high rate of speed. I hope that, going forward, we'll see less of this in the future.
I LEAVE THE NETBOOK ON DURING THE DAY SO ACCESS TO BROWSING IS JUST AS FAST AS THE IPAD AND THERE ARE MORE FEATURES TO THE NETBOOK. THE ONLY TIME THE IPAD IS FASTER IS WHEN I FIRST BOOT UP IN THE MORNING. THE NETBOOK IS STILL SUPERIOR TO ME.
- by Thomas, David February 10, 2010 3:31 AM PST
- Let me just preface this with declaring my choice of Apple products. While the iPad might be an evolutionary device, and a well built one at that, I believe it missed the mark. It can turn out to be another big success, but my disappointment came with it being a direct evolution of the iPhone/iTouch. NOT the hardware mind you, but the OS. This is a smaller version of the device I had expected, and hoped for, except for the fact it's NOT a personal computer with the level of access that you would have with a MacBook, or any Mac computer.
- Like this Reply to this comment
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Showing 1 of 2 pages (58 Comments)What I am trying to point out, is that the OS for the iPhone/iTouch is limited by design, and for all of its pluses, a device like this running Apples desktop/laptop OS would be FAR more powerful, and desirable.
Having said all this. I want to see what I can do with it, and what anyone else can. I see huge potential, but an excellent device alone does not make it a success. No, it's not a NetBook. In my opinion it's better than a NetBook, but it's not the same category. (I like laptops over NetBooks, and just think the NetBook is between a rock and a hard place).