Apple Open to iPad Price Cuts if Demand Lags?

[notjustjay]

Who is dumb enough to purchase a $499 iPad over a $99 iPhone? They both pretty much do the same. Only bigger screen and advanced programming on the iPad. I can't see Apple selling a lot of these the first year. Prices will come way down for them.

The iPhone does not cost $99. You don't see the actual cost of the iPhone because it is hidden in carrier subsidies and long-term contracts for data plans.

A better comparison would be the iPod touch. You pay $599 for the 32 gig iPad and $299 for the 32 gig iPod touch (I went with the 32 gig versions for consistency). So the iPad costs twice as much. But you get a screen that's over four times as large and contains five times the number of pixels, not to mention the larger touchscreen, larger casing, etc.

Edit: oh, and faster CPU.

 

[jb1280]

I personally think the pricing is fine.

$199 - 08gb storage with 3.5" screen.
$299 - 32gb storage with 3.5" screen
$399 - 64gb storage with 3.5" screen.
$499 - 16gb storage with 9.7" screen.
$599 - 32gb storage with 9.7" screen.
$699 - 64gb storage with 9.7" screen.

Comparisons with netbooks are stupid and people have historically spent quite a bit for iPhones and iPods in the past.

 

[SiPat]

Some people can't get over the fact that their is no support for Flash on iPhone OS. Jobs has had a go at Adobe, and unless Adobe gets off its posterior, Flash isn't coming to these devices any time soon. Get over it, and move on.

Likewise the closed system and "multi-tasking" -- Apple will only open up the OS if it is to the benefit of Apple and its customers. It's only the geeks who want this, maybe less than 0.01% of iPhone users.
------------
It's possible that the $130 premium on the 3G versions is to cover for Nokia's lawsuit and future settlement of licensing fees...

 

[mr.steevo]

It's easy to lose interest in something you can't buy.

Apple needs to stop this nonsense of debuting a product and not shipping it until X months later. They could have done the keynote next quarter.

Hi,

I am assuming that the iPad was announced 60 days in advance so as to allow iPhone App developers time to (at the very least) optimize their applications to the screen size of the iPad. From what I have read Apps that are doubled in size lose their clarity and crispness.

s.

 

[kernkraft]

Just a few points...

I find it odd that everyone is shocked at how cheap the thing is compared to their expectations (there was even an audible collective gasp from the audience during the keynote!) and at the same time everyone is complaining about how expensive the thing is.

Cheap - yes, compared to what people expected. For a tablet with a grown up OS, with 2 cameras, USB port(s) and not even imagining potential limitations, such as the lack of multitasking and Flash compatibility; $ 500 would have been cheap. With the current standing, the starting price of $500 is not so competitive.

People now do not compare the price to Mac computers. Sadly, the price is comparable to cheap laptops, the most expensive netbooks and is far more than the iPad Nano, aka iPod Touch. Furthermore, regardless of how much a Kindle costs, that device is a good e-reader. The iPad is not. But it's not that great in emailing either, if you compare it with a netbook.

It seems as between two chairs, Steve fell on the floor. At least, that's what many journalists and potential customers suspect. Perhaps, the 'Apple factor' and the novelty status will boost sales. But this device can easily prove to be the one that will end the unmatched growth of Apple in the last several years.

To your final point, I wouldn't use that Keynote as an example of how good the iPad is in any respect. That was a disappointing event, just watch it again... This was the most anticipated product demo in the last, well, decade. There wasn't much cheering.

This. I remember the first gen iPod Touch 32 gigabyte version was $499

A few things happened since... iPhone happened, strong competition happened... tablet PCs keep happening. Today, nobody knows, if a glorified iPod Touch on steroids can attract millions at the price range that Apple set.

The Apple TV and MacBook Air come to mind.

Ooops... problems come to mind... first dev. problems... second dev problems... Not good!

 

[SubtltzSir]

Software Is Soft!

The thing hasn't even come out yet, and you all seem to know what Apps are on it. Developers are now just getting started making apps for the iPad, I'm sure they'll be bigger, better, and more powerful than what's out there now for the iPhone/iTouch. How many of you have seen one in person? I haven't! It's too early to judge something before you get to actually play with it, and see what Apps are being developed at release time.

Thanks for the post as I totally agree.

A lot of the complaining in this thread seems to involve frustrations about SOFTWARE and what you "might" just see developed for it. Capacitive stylus + handwriting recognition (I like that). Multiple accounts for various users in the family (I like that). It's ALL SOFTware folks!

To quote a really great employee who used to work for me and gave me a great lead in to get the business by saying: "If you had a computer, what would you do with it?" (not: "you have a pile of software already, what do you think is the easiest way to get most of what you want done done?" I mean, their eyes lit up and they actually said what they wanted - leaving the design of software to the systems folks).

Keep the great ideas coming folks - but stop complaining that it's not there on day one. Geez, they only released the updated SDK two months before the iPad's release. I'm sure that the stories of fast iPod software development were just bragging, right? Right?

 

[kernkraft]

I forgot this...

Between two chairs, falling on the floor:

 

[jb1280]

People now do not compare the price to Mac computers. Sadly, the price is comparable to cheap laptops, the most expensive netbooks and is far more than the iPad Nano, aka iPod Touch. Furthermore, regardless of how much a Kindle costs, that device is a good e-reader. The iPad is not. But it's not that great in emailing either, if you compare it with a netbook.

1. have you personally used it as an e-book reader? If not, how do you know it's not a good e-book reader?

2. have you personally used it to use email? If not, how do you know a netbook is that much better? If I have a lot of email, the last thing I want is to type on a netbook keyboard.

3. The pricing is right in line with the iPod touch.

 

[CyberBob859]

I personally think the pricing is fine.

$199 - 08gb storage with 3.5" screen.
$299 - 32gb storage with 3.5" screen
$399 - 64gb storage with 3.5" screen.
$499 - 16gb storage with 9.7" screen.
$599 - 32gb storage with 9.7" screen.
$699 - 64gb storage with 9.7" screen.

Comparisons with netbooks are stupid and people have historically spent quite a bit for iPhones and iPods in the past.

And this would be perfectly understandable if they decided to call the device "IPod Touch Pro".

 

[QEII Student IT]

I had a dream last night that I had an iPad.

I was the cool kid in town.

Yup, it seems I'm going to be the first at QEII to have one for months!

 

[PhoneyBoy]

That incredibly "cheap" price is for a mere 16GB version. It's the famous "starting at only" price. Maybe they can come out with a no-memory version for 100u$$ less!

For this kind of device a minimum acceptable is 32GB. To do the advertised; consuming media (movies,songs and books), 16GB is a joke.

Not if like me you intend to use the device at home most of the time.
I will be quite happy with 16GB as will many other.
If you want more storage they make a model for you, don't cry because they have a wide range of models!

 

[notjustjay]

To your final point, I wouldn't use that Keynote as an example of how good the iPad is in any respect. That was a disappointing event, just watch it again... This was the most anticipated product demo in the last, well, decade. There wasn't much cheering.

Well, I'll hold off judgement until I see the thing in person and determine what I can do with it that's useful to me based on what apps will be available. If I can find a compelling reason to buy one, then I certainly will. If not, then I'll wait to see what else might be coming down the pipe. Remember that the first-gen iPod touch was not that useful compared to what it is today (no apps, no speaker, jailbreaking to get any useful functionality). Who knows what the 3rd-gen iPad might be like.

Personally, my biggest "concern" is how I would carry it around since it's not really pocket sized.

As for the keynote and the expectations -- whose fault was that? WE (the rumor community) generated every bit of all that hype and expectation. Apple never once officially acknowedged that a tablet product even existed until the day of the keynote, so any expectations on the specs, pricing, etc. were purely speculative. Rumors spun more rumors until everyone was sure there was going to be a full OS X device with a 12" OLED screen for $399.

 

[RaZaK]

If?!?!?!?

Demand lagging is almost a guarantee.

The only people who will buy this thing are the most hardcore of Apple Fans and those fence-sitters who have the disposable income who were delaying their purchases of the Kindle for some reason. However, how many people really have THAT much disposable income in this economy.

I am not a Flash fanboy or anything, but it's common sense that When the average consumer sees that this device can't render their fav Flash sites properly (ex: facebook apps, etc.), they will forgo the purchase. After all, why pay so much more for a essentially big iPod Touch?

I wish Apple well, but this is not the economy to release pet projects that have little practical use. This would have sold like hot cakes in the Dot-Com era

 

[SkippyThorson]

This. I remember the first gen iPod Touch 32 gigabyte version was $499

This is not supply and demand. This is production costs decreasing as newer technology is produced, opening the door for better products, while decreasing the cascading prices of subsequent models.

This guy, while seemingly intelligent, has no idea what he's talking about. (Not you, ajones.) Sure, Apple will drop the price of the Tablet - in a year, with the second generation model.

They looked like fools with the price drop of the first iPhone. They will NOT make that mistake again. Ever.

 

[RQPS]

Cheap - yes, compared to what people expected. For a tablet with a grown up OS, with 2 cameras, USB port(s) and not even imagining potential limitations, such as the lack of multitasking and Flash compatibility; $ 500 would have been cheap. With the current standing, the starting price of $500 is not so competitive.

You need to check out this chart again. And I think sending emails on the iPad will be much easier and more efficient that a netbook with a miniature keyboard/screen and trackpad

 

[PhoneyBoy]

Some people can't get over the fact that their is no support for Flash on iPhone OS. Jobs has had a go at Adobe, and unless Adobe gets off its posterior, Flash isn't coming to these devices any time soon. Get over it, and move on.

Likewise the closed system and "multi-tasking" -- Apple will only open up the OS if it is to the benefit of Apple and its customers. It's only the geeks who want this, maybe less than 0.01% of iPhone users.
------------
It's possible that the $130 premium on the 3G versions is to cover for Nokia's lawsuit and future settlement of licensing fees...

Incorrect, it is only Geeks who don't want this!
Most users don't care at all about the control Apple have over the iPhone and soon to be iPad, in fact they value it. Your every user will be more than happy to buy apps from the app store and have a device that just works, they don;t want or need to mess about with the iPad.

 

[wallinbl]

This isn't a blockbuster product, don't believe the hype. It's a larger iPod touch and an eBook reader. It's not a replacement for netbooks, since it's not actually practical for real work (has anyone tried actually editing text on an iPod touch or iPhone?). They will sell initially because of the hype and then fade somewhat and require Apple to prop it up a bit if it wants to make a dent in the ebook market.

This really is a ho-hum product, I can see Apple rethinking it in the future and thinking about how a product like this relates to their laptops. Maybe then they'll come out with something interesting... that runs the full OS.

I can't do work on a netbook. They're too damn small. If it's going to be that small, it may as well be the iPad. Why have all the bulk of a netbook and the hassle of running a full OS (battery life, sleep/wake, etc)? If I were to get a netbook, it would be for the things the iPad can do, not because of doing actual work. I want a real machine for that.

 

[PhoneyBoy]

And this would be perfectly understandable if they decided to call the device "IPod Touch Pro".

So a different name makes it OK?
What sort of reasoning is that?
Just pretend it is called an iPod Touch Pro then, and you will be happy!

 

[QEII Student IT]

$199 - 08gb storage with 3.5" screen.
$299 - 32gb storage with 3.5" screen
$399 - 64gb storage with 3.5" screen.
$499 - 16gb storage with 9.7" screen.
$599 - 32gb storage with 9.7" screen.
$699 - 64gb storage with 9.7" screen.

It's not until you see it like this that you realise that the pricing is really very reasonable.

 

[Nebrie]

They need to fix the 3G version issue. $130 for a 3G version is stupid. There shouldn't be an additional cost for a stupid small antenna/radio - just put it in all units and then make the unlimited cost $20/month.

Also, I certainly won't be buying one until the rev. 2 ... and until text books come to the iPad, as I am a college student.

They can't. Dell sells 3G cards for $125 because the GSM patent fees alone total nearly a hundred bucks.

 

[QEII Student IT]

This isn't a blockbuster product, don't believe the hype. It's a larger iPod touch and an eBook reader.

What hype? 99% of it's media coverage in Britain is people laughing at it

 

[notjustjay]

They need to fix the 3G version issue. $130 for a 3G version is stupid. There shouldn't be an additional cost for a stupid small antenna/radio - just put it in all units and then make the unlimited cost $20/month.

So you want them to include the $130 option as "free" standard equipment, AND lower the cost of the unlimited plan by $10/month?

 

[stainlessliquid]

It could be $100 and I still wouldnt get it, I have an ipod touch already that fits in my pocket. If was going to get something like this it would absolutely be a netbook, or something else that does Flash. If the ipad had a version flash fast enough to use Hulu then it would be a million times more intriguing, but it doesnt and never will, without flash this thing is even worse than an ipod touch.

HTML5 might be the "future" but flash is the "present" and thats what matters. If I buy an ipad today then what the hell do I care if Hulu changes to HTML5 in 2 years? I want to use it now, not 2 years from now.

 

[QEII Student IT]

It could be $100 and I still wouldnt get it, I have an ipod touch already that fits in my pocket. If was going to get something like this it would absolutely be a netbook

"But netbooks aren't better at anything!"

 

[4mat]

They need to fix the 3G version issue. $130 for a 3G version is stupid. There shouldn't be an additional cost for a stupid small antenna/radio - just put it in all units and then make the unlimited cost $20/month.P

Also, I certainly won't be buying one until the rev. 2 ... and until text books come to the iPad, as I am a college student.

Hmmmm. Are you the CEO of a company offering a similar device with a free 3G upgrade and unlimited downloads for $20/month? No? Until then how about accepting it and move on. Or better yet, just don't buy one.