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If Jobs comes out on stage and effectively says we are going to take lower profit margins for the public good because this stuff is so insanely critical to the world .... the stock price will drop like a rock the next day and about 12 ambulance cashing lawyers will be circling Infinity drive with stock holder suits the following day.

If apples products had a slightly lower profit margin theyd be selling even more millions of them. Did you read about the quarter results?
 
The graphics chip in the iPhone/Touch would have to drive a screen that 2-3 times bigger. Very likely no way it would be able to do that at 720p.
Besides the only connectivity layer you have is USB (since that is the dock connector bus.) Going to drive a high resolution screen through USB ?

It's also a dopey idea. Recall that Palm was going to do essentially that sort of thing with the Folio (not exactly the same idea, but similar).
 
If its in the neighborhood of $800 I'll order one.

What I'd like is either it heavily subsidized with a $60 a month internet plan that will tether to the computer making it about $300-$400 or buying it outright for $800 and tying it to my iPhone for connectivity.

I have to have 3G for it to be useful.

I will be amazed if it doesnt' have 3G, or it doesn't automatically tether to a iPhone for 3G.
 
The graphics chip in the iPhone/Touch would have to drive a screen that 2-3 times bigger. Very likely no way it would be able to do that at 720p.
Besides the only connectivity layer you have is USB (since that is the dock connector bus.) Going to drive a high resolution screen through USB ?

An additional 3D graphics chip and some extra USB ports will do the trick. It will be tough on people to buy the applications they already own on an iPhone/iPod touch for the iPad.
 
An additional 3D graphics chip and some extra USB ports will do the trick. It will be tough on people to buy the applications they already own on an iPhone/iPod touch for the iPad.

Why would you have to do that? You can already download iphone apps onto multiple devices. You'd only have to re-buy if the developer creates a tablet-enhanced app, in which case you don't "already own" that. And since you paid $1.99 for the iphone version, I don't think it's much to ask to have you pay again for a greatly enhanced, much modified new version for a completely different device.
 
Why would you have to do that? You can already download iphone apps onto multiple devices. You'd only have to re-buy if the developer creates a tablet-enhanced app, in which case you don't "already own" that. And since you paid $1.99 for the iphone version, I don't think it's much to ask to have you pay again for a greatly enhanced, much modified new version for a completely different device.

hmmm...if the developers are spending more effort making an improved version then it does make sense to buy some apps again.
 
So we can safely assume that given Apple has been rumored to release 2 different products, one of them will be an E-Reader only? I don't see Apple devoting all of these years to "just" an E-reader, so I'm wondering if it will be one device that 'does it all' or there will be another tablet with more functionality to come in the near future.

That's what I was thinking. One will be an all-singing all-dancing media device, and one will be a cheaper ebook reader. The ebook reader would have to be at least relatively cheap, or people just won't buy it, apart from us of course :D

They have got both the iPad and iSlate trademarks, so it's possible.
 
Furthermore, if you are these publishers, you don't care that much about Tablet numbers, as getting your products sold to ALL-itunes-connected devices.

Every one of these broadcast media groups have websites. Where folks read their content is important. Looks of folks read on the bus, train, airplane , etc. Similarly if replacing the physical print media there are weight issues to consider. Very few people are going to trade their 1 pound newspaper/magazine for a 3-5 pound laptop.

People have been able to go to a heavyweight replacement for a while now. That has already killed off a segment of their readership. They don't need to go to iTunes.

Pushing this into iTunes also means giving up 30% (or whatever skim Apple takes.).

For instance the specialized apps for small screens. As pointed out many of these folks already have a website. Then have to build an app to put this into smaller format. Same content, additionally cost to reformat. What if you knock of that reformat cost? So yeah more than just that single device. What makes the device significant is WHERE it can deliver not what it is delivering in that case. If it is lighter AND cheaper then will be one of the dominate distribution devices.

If it purely iTunes based solution then Apple will not be the big winner. Windows netbooks are significantly cheaper and run iTunes. Besides iTunes is not a print media player.

The SOFTWARE , not website, will be the differentiator. People are way too infatuated with the iTunes store. It is just a website. Strip away the superficial stuff (e.g., specialized browser) , that is what it is.

http://ces.cnet.com/8301-31045_1-10428479-269.html

http://blioreader.com/



And the most solid answers keep coming back to less tangible answers like "cool", "thinner", "lighter", (moderately more) "convenient", and the imaginary features such as those on Star Trek tricorders, and similar.

What??? while "less tangible" those are all reasons NOT to buy something and/or take it with them. There are tons of folks who do not have an mobile/portable option to go with. If being mobile is when people read more often then are coupled much more than you want to believe.
 
Apple is going to claim that it does MORE than a Kindle. Alot more. Hence will charge a higher price because "it is worth it".
Yes.
If exactly the same size ( seems doubtful) I'm sure Amazon will counter with battery life and readability without being eye blasted.
Well, if we go by this rumor, the screen will be a little bigger, the device will have a smaller footprint and weigh about the same...

I don't think the readability argument will be very convincing to too many -- a lot of us read lcd displays for 10+ hours a day already without discomfort. The battery argument is more interesting. People don't seem to mind charging their phones every day, but even so, the battery in the tablet is going to have to drive the screen for at least 10 hours on a charge -- probably more -- to satisfy people. You really want 20 hours, to give the battery some room to degrade over time and still be good to go for a long day.




There is no reason to kick them off. Just offer a better price. Still will want folks who have content from multiple platforms. They'll want to make the transition easy. Telling folks they have to go re-buy all of the books they already have will piss people off. That is NOT a good way to jumpstart introducing your product to the that portion of the market. [ Especially when it already works NOW! ]
I agree... that's what I meant by saying "push" rather than something like "forbid." My guess is that Apple would allow the reader app, no problem. But they'd want a significant cut -- say 30% -- of the in-app purchases. Amazon would be forced to either (1) eat the difference -- that might be impossible for them; (2) raise the in-app purchase price -- that will push users to Apple's own built-in book store, which will usually be cheaper or push users to buy though Amazon's web site -- an inconvenience that will mean most will buy from Apple's store; (3) get rid of in-app purchasing altogether -- again, this pushes users strongly to Apple's own book store.

In any case, I think Apple will try to ensure that Amazon does not make significant sales on the device.

I could be wrong.

Both Apple and Amazon are (well, presumably in Apple's case) trying to sell a full ecosystem to users. But in their heart, Apple sells an ecosystem because its a great way to sell devices and Amazon sells an ecosystem because its a good way to sell content -- they could work together and each could still get what they really want most.
 
Apple already sells the iPhone at a "loss" compared to manufacturing cost, because at&t and other carriers subsidize the cost and give them a slice of those juicy data plans. Also, App Store developers give Apple 30% of their revenue.

I am almost sure this is not true. a 16g 3gS costs $180 to produce and they sell it for ≈$599 (AT&T eats a lot of upfront cost). Also don't forget that it costs Apple to run the app store.
 
If apples products had a slightly lower profit margin theyd be selling even more millions of them. Did you read about the quarter results?

That they made more money than previous years and that the profit margin went up ( most likely due to a spike in software sales) also.

So how likely is it that going to step up on Wednesday and introduce a product that is going to take the margins back down to sub 37% ?

Average Smartphone and iPod Touch prices are going to go down over the next year (primarily due to market pressures beyond Apple's control.) . What Apple needs to tread water on revenue and margin is another product priced above those two that will over time move down into the price/margin/volume points they occupy now. That will give them a better opportunity to get growth if it shows up across the product line.
 
I do not think they will offer free always-on wireless broadband, as is done with the Kindle, because Apple would have to pick up the tab. For the amount of data a device like this will be transmitting that just won't happen. Edit: Another option is that wireless broadband will be available regardless of user option for certain key functions, such as book purchases, through the built-in broadband chip which may or may not be available for other users like internet browsing depending on whether a user agreement with Verizon or AT&T exists).

If Apple did this it would be a matter of days until the hacking community released a program a la 3g unrestrictor.
Also: http://gigaom.files.wordpress.com/2009/12/go-iphone-r7.png

I think most of Apple's money for running the App Store comes from the 30% of sales, though.

This was the image I was looking for but couldn't find. Thanks. And what I meant about it costing Apple money to host the appstore was that the 30% was not pure profit.
 
The iPad, an iPhone on Steroids

This thing can't only be for books. It has to be and do much, much more, or it's going to be a failure. I think it's going to be in iPhone on steroids - it will run apps and applications like iWork, iLife and other great software for on the go, but not enough to wipe out the need for a MacBook or MacBook Pro. If it's only a book reader, keep it, I don't want one!
 
You can't do that. Apple prices their production at the premium end of the spectrum.

The iPod shuffle costs how much ?

It is not so much premium price necessarily as it is cost of components. It is much cheaper to get a not quite as high quality LCD panel as it would be to get a LCD panel with higher color fidelity and higher view angles.

Milling aluminum, green components , and other things Apple does costs more money. That is not to say they also don't slap a considerable profit margin on the devices. However, that doesn't mean the can't operate at lower levels if the component costs don't enable that.



Sure you have that $300 notebook, but look at where Apple prices their lowest-end notebook.

Have to compare similar products. Broad sweeping category labels like "notebook" are not going to lead to sensible "Apples to Apples" comparisons.
If it is largely the same bill of materials then it is reasonable. If comparing Atom CPUs and 2GB to CoreDuos and 4GB it is an "Apples to Oranges" comparison.

The Asus $300 notebook doesn't compete with the $800 Asus notebook either. The $800 Asus notebook would be closer in bill of materials to the Apple offering.






Having read all I've read, thought about the possibilities, etc. my low-end guess is still at $799 unsubsidized, which, in marketing-speak is "not anywhere near $1000", with pricing as low as around $399 with a 2-year contract with AT&T or Verizon.

If sell a no 3G , no GPS , WiFi only with 8 GB or flash version probably could push into the $500-600 range that folks are talking about. Lots of folks are going to grumble about the missing features but still would be in the lower range. [ NOTE: the kindle DX has 4GB of flash so 8 GB would be double. Skewed toward media reading and not trying to tote around the Library of Congress that is plenty of space. ]

That's how Apple brings things back into range by trimming off value for a lower price point.

Folks wanting it to be just slightly above a Touch. Not seeing it. Just the extra aluminum (and finishing costs), glass, screen, battery, and other stuff that comes along with being bigger is going to put a sizable gap between those two.
 
It sounds like an excellent textbook machine.

Unfortunately, I don't have time to read the whole thread...but I do very much agree with this wholeheartedly: a textbook for education would be absolutely a huge opportunity: they're currently big/heavy and expensive, and many school districts can't afford new books all that often, so the suppliers could change to a different business model and get an annual revenue stream.

And students would benefit by not having to lug 800lb backpacks! :)


Overall, it doesn't matter if you're talking primary education or college.


-hh
 
what apple might do...

I think that whatever Apple does, they are not going to do what we expect. remember how wrong we were when we tried to guess whaet the iphone was going to be like? I think Apple will probably do something again that we have not thought of but is an "oh duh how did we miss it" situation type of thing. I mean that's what I think will happen. Any thoughts on this?
 
At $500 this is still to expensive, it needs to be at $299.

If it's $500 then that is cheap, and they will sell like hotcakes. Not only will it be an e-reader like the overpriced Kindle, it will play games, music, movies, double as a textbook, and so much more.

$500 would be a deal.
 
A little birdie told me the price will be $299
Wether this is subsidized or not, i don't know

Rats. I speculated $199 + $50/month for 2 years (total $1400 includes say $400 of content - news/mags/books). So $299 + $50/month = $1500 including a content allowance of say $30-35/month or $400/year

Obviously the real hardware cost will be higher than $299. They have wiggle room in the old world content distribution margin that covers printing/distribution.

Content publishers probably will offer e-subscriptions for same cost as paper subscriptions but with more value added.

The aim is still to quickly capture the market for online content provision leveraging Apple's long-term positioning in graphic arts.

Still curious about what the "very revolutionary" feature will be. Wireless power perhaps??
 
Wirelessly posted (Mozilla/5.0 (iPhone; U; CPU iPhone OS 3_1_2 like Mac OS X; en-us) AppleWebKit/528.18 (KHTML, like Gecko) Version/4.0 Mobile/7D11 Safari/528.16)

Everyone saying the app store will "subsidize" this don't get apple's business model. They use software to sell hardware, not the other way around. Apple makes it's money on hardware.
 
- Apple's tablet will not be priced "anywhere near" the $1,000 mark that some have floated as a possible price point.

I know this isn't very nice, but I hope it costs much more than $1,000 USD. Too many people have the iPhone, which makes mine much less special. If the Apple tablet comes to between $1500 and $2000, then not many people will buy one, and they will all envy mine! lol
 
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