Yes, the same with the new iPhones.
They seem to compensate for the US import tariffs by charging UK customers more, instead of US ones.
I am so pissed, that may even consider not getting the new iPhone.
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Apple Cuts Price of 1TB iPad Pro Models by $200
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Yes, the same with the new iPhones.
They seem to compensate for the US import tariffs by charging UK customers more, instead of US ones.
I am so pissed, that may even consider not getting the new iPhone.
I can only imagine your level of frustration over this, but it really doesn’t have anything to do with tariffs. Apple simply expects further, significant deterioration (or even collapse) of the British pound.
Right now, Apple has hedged the FX rate by about 7%. They’re certainly not going to price it straight across, since any adverse move in FX would immediately put them in the hole.
Don’t be mad at Apple, any company that doesn’t float their prices against the dollar or denominate in dollars would do the same. It’s just too disruptive to keep changing prices every couple weeks.
Should the pound fall to $1.10 against the dollar, you’ll see another £75-100 price increase. If the pound goes into free fall, you could see £200, £300 or more price increase in iPhone. We’ll know more after October. It’s obviously a very unfortunate situation, to say the least.
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iCloud allows you to offload files you haven't used in a long time, it can't be used as a replacement for local storage when it comes to workflows.
Unless you have a guaranteed internet connection and no data caps or costs, in which case you're probably using a desktop anyway.
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I expect further, significant deterioration of Apple's products. Where's my discount?
They might be phasing got the 1TB version due to poor sales, and also in light of external HDD connectivity.
(Sorry if that’s already been suggested - I did read through a fair chunk of responses and didn’t see this possibility )
Re the debate on the use of an iPad with 1TB storage: I would have plenty of use for it - even with a hard drive. I travel to places with no connectivity, and I either need movies to keep me sane, and/or enough space for storing raw images.
(Sorry if that’s already been suggested - I did read through a fair chunk of responses and didn’t see this possibility )
Re the debate on the use of an iPad with 1TB storage: I would have plenty of use for it - even with a hard drive. I travel to places with no connectivity, and I either need movies to keep me sane, and/or enough space for storing raw images.
A few GB at a time for editing of large video files? You don’t know what you are talking. Also, what if someone needs to work offline? How would they use iCloud? What if they are often on the move (it is a portable device)? What 1tb mobile monthly data plan you know of that they would use?
Sharing private information about your life with a private Corporation is not so bad?
The 1TB is in no danger of being phased out. Apple is just making a price reduction they can afford to make based on lower flash memory prices. (They’ve done the same with Macs, as noted above.)
Apple makes their best margin with the highest SSD (and RAM, for Macs) capacity SKUs. But they can make their desired margin with lower prices if their costs decrease. Lower prices at the high end mean a greater number of high-margin sales, more turns, more revenue, increased profits, etc—and of course more customers with services-consuming product in their hands.
In Apple’s aggregate margin-on-mix pricing model, sales of the higher-priced configurations subsidize the price of lower-end configs, particularly the entry level model. So if the 1TB model is discontinued, price support to the 64/256/512GB models is pulled out from under them.
what is your need? I find iCloud backup more convenient already
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it's actually 150$ from 64 to 256, 200$ more to 512
Ha exactly. Apple dropped the price because they realized what a hard sell it would be if you insert a USB C disk instead.
I would love to know the break down of who watches these Apple events. I was one of roughly 1.7 million viewers who watched it live on YouTube. I'm sure a lot of us were Apple enthusiasts (the type of people who regularly read MacRumors) but I suspect there were also a lot of Android users or "casual" Apple users who may only have an iPhone but nothing else. My thinking is that by introducing the new entry level iPad, Apple was able to show it off in front of what is probably their biggest audience of the year to help coax potential or casual users a little further into the Apple ecosystem.
You are right, didn't think of the value of the £ after the Brexit craze over here. Remembering the times when all Apple prices on $ in the US translated exactly on the same figure on £ over here.
That's not irony.
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It's neither. It's "cause and effect". The OP was implying that the cost of the ipad went down. because the cost of RAM went down, because of the lack of demand for iphones has created a surplus.
Well, I figured I would just get it out of the way after you mentioned it. I, too, have been there, done that and am tired of it.
I can see it. Some apps don’t allow for storage in the cloud. (Not with out manually moving the files then deleting the originals). it was a pain to do this and sometimes you needed to keep certain files available Incase you needed to edit them.
So your saying the cost of "hardware and software research, design and development, the industrial design, the screen design, the chemists making the battery, the raw materials, the assembly, the packaging, the transport, the marketing, the staff at the retail stores, the designers" is $150 different between the 64GB and 256 GB phone.... Yea, sure man.
Also, I'll do and say whatever I please... who the heck are you to tell me to knock it off or go buy an android phone. Your the reason why apple fanboys get such a negative rap... you keep drinking that apple koolaid regardless of the decisions they make.
yup, definitely not
it is Apple climbing up their profit margin for upper model.
I believe @PickUrPoison already explained that the 64GB will have the lowest gross margin, while the other sizes will have increasingly larger gross margins to offset the lower margins of the smallest storage tier. So if Apple's goal is a 38% margin on the iPad Pro, then the 64GB may have 22% of sales but only a 28% gross margin, while the best seller 256GB may have 36% at a 34% margin, with the 512GB at 30% and a 44% gross margin and the 1TB model at 12% of sales and a 60% gross margin. Average the 4 models and you get a 42% gross margin for them which is higher than Apple's target. Combine that now with Apple's savings on NAND memory, adjust the margins higher a bit for each model and Apple can afford to drop the cost of the highest storage tier to entice more buyers, which may result in a higher overall ASP and gross margin, depending on whether they sell more or less units. I am oversimplifying it as I think the percentage of sales per storage size may factor into the weighting of the overall gross margin and ASP, but I am not a finance major or a supply chain guy. This is something Apple does really, really well whether we like the prices they sell their products or not.
Sorry to say that it's not as cut and dried as this model costs $150 more than another model when the price delta in the overall finished goods consumer market is half that or less.
Samsung routinely sells the 850 EVO 250GB for $54.99, the 500GB for $74.99, the 1TB for $129.99, the 2TB for $299.99 and the 4TB for $579.99. You pay more for the smaller size, but you don't pay twice as much for the 1TB over the 500GB, you pay more than 2x for the 2TB model, but less than double for the 4TB over the 2TB model. Why is that? Shouldn't the 250GB be $37.50, half as much storage should be half the price, right? But then the 1TB should be $150.00, but it routinely hovers at around $169.99-$179.99 in the off season (no holidays), the 4TB should be $599.99, depending on what you use as the baseline pricing. If the 250GB was the baseline, then the 500GB should be $109.99, the 1TB $219.99, the 2TB $439.99 and the 4TB should be $879.99, right?
But Samsung knows the 250GB is the lowest volume seller, and prices it accordingly to drive people to the 500GB, and some to the 1TB, where is makes it's best overall margins through volume, with the 2TB and 4TB where it most likely makes higher overall margins, but sells less in the market, yet makes more per unit. Samsung knows exactly which models sell the best (500GB and 1TB) and how much margin it makes at whatever price level they sell at during any given day or promotional period. They have to or they are in big trouble.
Apple's pricing through their website and their retail stores don't move around, but their official resellers (Best Buy, Amazon, B&H, et al) seem to have incredible latitude in offering discounts to customers. Some of it is paid via marketing dollars, some it via reduced margins or margin splits to drive foot traffic into the stores, where the retailer can try to upsell the customer with accessories and pure profit items such as extended warranties and AppleCare+. This is something we all learned when I worked at CompUSA...in a Galaxy, a Long Long Time Ago.
What's the point of all this? Well, the $150 price difference that you're fixated on is only part of the story, and not even the most important part. You're looking at it from a pure parts perspective, which is your prerogative, but just isn't germane to the discussion.
You can do whatever you please, it's a free country, and I can always set my Profile to Ignore. I suggested, rather forcefully, if you're that ticked off about Apple's pricing, the difference between 64GB and 256GB models and how Apple prices them relative to commodity storage pricing, then you might be happier with an Android phone. Or you might not.
Who the heck am I? Well, I'm that guy who is simply tired of listening to the Computer Shopper mentality on these forums because for all the wailing and gnashing of teeth, the only thing that means anything is price, price, price, no matter what else is opined. That mentality permeates the PC world and continues to give us crap products, bad customer service and gross margins that companies cannot survive on long term. Just ask Dell. I am always up for a bargain, but the sheer insanity of some people when it comes to how much something should cost is laughable and is not grounded in any sort of reality, common sense or profitability long term. Yes, Apple has priced it's products right up to the very edge of affordability and even a bit more. Which actually I am quite familiar with, because in a previous life, I estimated projects and the rule of thumb was that if the client didn't wake up screaming at night, you priced it too low. And if they did, you should add 15% to the cost. But not everyone has had the same experiences I have had. Apple learned just how far they can push before it becomes counter-productive. Every business does this...at least those that can.
Bottom line...want a cheaper tablet? Go make your own or become CEO at one of the numerous PC OEM that make them. Let us know how that works out for you.
Little evidence that Apple is subsidizing the lower end configs. Paying for 'free' Cloud services ( iMessage), forays into the Apple car, bigger stock buy backs , upkeep on spaceship campus , palatial office space in mid-town Manhattan , etc. Covering product financing costs with more upfront cash and quicker.
If there is anything about the other the overall group (with the lower priced versions ) then it would covering the break even costs sooner rather than later. But the entry units are all highly likely making contributions there too. Just smaller ones. But apple isn't selling their entry models "below costs". So there is practically nothing to subsidize there.
After 10-12 months either Apple is going to substantively price cut the phone or possibly 'disappear' it , so the phones need to be "paid for" on a relatively short runway.
Apple's pricing on their high capacity SSDs has primarily been about how big and deep the Scrooge McDuck money pit is. It is deep enough. It is probably a bit too big (as attracting more antitrust and regulatory attention). Apple has over $100B in debt ( lots of gyrations just to have a bigger and deeper pit. )
On the UK Apple Store a 1TB iPad Pro is £1519. I thought that it was introduced at £1719?
And if it’s now £200 more expensive that would mean that it was £1319 - hard to believe!
I never said entry level was being sold “below costs”. If you look at the pricing, it’s rather apparent that higher-end configs have higher margin. Eliminate them and you guarantee a price increase at the lower end. It’s just math. Higher percentage of profit at the high end enables Apple to take lower (than the model average) percentage profit for the less expensive configs.
Say what you will about costs, but Apple’s hardware gm is 32%. Net profit is about 21%. So all costs other than cost of goods—including overhead, R&D and taxes—are only 11% of revenue.
The magnitude of Apple’s cash hoard is directly related to their huge revenues. If Apple has $250 billion in revenue this year, cash increases about $50 billion. If they were a smaller company and revenue were only $25 billion a year, they’d only bank about $5 billion.
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Still too expensive, and moreso with the touch disease issue still a major problem.