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Display Panel Shipment Plans Suggest Apple Will Offer iPad 2 Alongside iPad 3

Makes much sense to me having a price-reduced iPad 2 as entry level $299/$349 and a (upwards) price-corrected iPad 3 width quad-core and retina for $499/$549.
Such multiple device policy we still see with iPhones. It will attract new customers and tie them into the Eco-system.
 
Surely an improved processor (A6?) and possibly memory upgrade not to mention the camera and resolution upgrades are worth more than $100? What price point will the iPad 3 come in at?

Or maybe we won't get all 4 of those items which seem to be on everyone's wishlist?
 
Taeser said:
Wirelessly posted (Mozilla/5.0 (iPhone; CPU iPhone OS 5_0_1 like Mac OS X) AppleWebKit/534.46 (KHTML, like Gecko) Version/5.1 Mobile/9A405 Safari/7534.48.3)

If they don't get the price below 199 I'll have to go go with the kindle. It doesn't have that excessively big screen, that privacy invading camera, and it has that fragmented app store with only the apps I really need. Less clutter. Apple, step up your game.
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"They're spyin' on me with rays, buggrit! Buggrem'all! Millennium hand and shrimp!"
 
nutjob said:
It's Amazing how Apple's trained its customers to pay a premium. But the point is that the competition is at $200, and especially in this economy if enough people buy from Amazon, it gives them a beachhead into Apple's market. Regardless of features, which don't always mean as much to the average consumer, Apple has to compete on price.
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We have been "especially in this economy" for the last ten years, and Apple didn't care so far and doing reasonably well, or so I hear. Amazon has a product that is worth less than half of Apple's product for less than half the price. Dooh. There's a market for people who want a device for reading books, and nothing else. Just like Apple is serving the market for people who want a device for listening to music and audio books, and nothing else. The iPad is a completely different market, and Amazon doesn't touch it.

Now there are always people who are tempted when they see "I only want X, and I can get it for $Y, but for only $Z more I can get all this other stuff", even if right now all that other stuff is not essential to them. An iPad 2 at slightly reduced price will tempt quite a few of those away from Amazon.


Navdakilla said:
Seems like a win win
I know a ton of people who wish they had a iPad2, but just couldn't afford it.
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Frankly, if you can't _afford_ an iPad 2, then you shouldn't be buying a Kindle for $200 either. If you wanted one but couldn't justify the cost to yourself, that is a different matter.
 
I have a Kindle Fire I bought less than a month ago. The only thing I love about it is the size: it's perfect for reading ebooks because I can hold it with one hand. I don't like the UI and it's responsiveness. I'm probably going to return it and see what Apple does with the iPad2/3. I'd love to see Apple release a 7" iPad, tailored more to ebook reading comfort.
 
Price

would be very surprised if the 16GB wifi iPad 3 is more than $499, I think by this time, we are used to Apple's pattern with both the iPhone and iPad. Folks, didn't Apple introduce the Retina iPhone 4 16GB with A4 for $199?
 
This makes very little sense.

It would be ludicrous for Apple to produce two models in volume, especially a heavily discounted iPad 2, which at ~ $350 would be basically a break-even proposition for Apple. In case you missed the memo, Apple ain't in the break-even business. And its existence would cannibalize - very heavily - the sales of its (presumably) profitable iPad 3 unit.

Apple doesn't care about trying to compete with the Kindle Fire. If someone wants to buy a cheap tablet, they are going to buy a cheap tablet. There is no logic in Apple destroying its margins simply to meet them halfway.

Somebody, somewhere, got a hold of a spreadsheet they probably shouldn't have. Compounding that sin, they are now misinterpreting whatever figures were on it, and passing their confusion off as a news story.
 
vrDrew said:
This makes very little sense.

It would be ludicrous for Apple to produce two models in volume, especially a heavily discounted iPad 2, which at ~ $350 would be basically a break-even proposition for Apple. In case you missed the memo, Apple ain't in the break-even business. And its existence would cannibalize - very heavily - the sales of its (presumably) profitable iPad 3 unit.

Apple doesn't care about trying to compete with the Kindle Fire. If someone wants to buy a cheap tablet, they are going to buy a cheap tablet. There is no logic in Apple destroying its margins simply to meet them halfway.

Somebody, somewhere, got a hold of a spreadsheet they probably shouldn't have. Compounding that sin, they are now misinterpreting whatever figures were on it, and passing their confusion off as a news story.
Click to expand...

I lol'd.
 
The last time the iPhone was updated, Apple reduced the storage in the old model, and left it in the product line up for a reduced price. (A few months ago, I bought a 'free on contract' iPhone 4 8GB, which are on offer here in HK.)

I think it's quite likely that Apple will Launch the iPad 3 in March and leave a budget option of an 8GB iPad2 for USD 399 or *maybe* USD 349.

If they do leave a 16GB iPad 2 in the lineup, I think the iPad3 will be 32/64/128 GB. (6GB free is pretty small for an iPhone, let alone an iPad.)
 
Hmm, so if 300ppi is the supposed "retina" lower bound, then why are you calling this a "retina" display? ipad 2 is 132ppi, this would be 264ppi quite a bit short of apple's "retina" marketing.
 
vrDrew said:
This makes very little sense.

It would be ludicrous for Apple to produce two models in volume, especially a heavily discounted iPad 2, which at ~ $350 would be basically a break-even proposition for Apple. In case you missed the memo, Apple ain't in the break-even business. And its existence would cannibalize - very heavily - the sales of its (presumably) profitable iPad 3 unit.

Apple doesn't care about trying to compete with the Kindle Fire. If someone wants to buy a cheap tablet, they are going to buy a cheap tablet. There is no logic in Apple destroying its margins simply to meet them halfway.

Somebody, somewhere, got a hold of a spreadsheet they probably shouldn't have. Compounding that sin, they are now misinterpreting whatever figures were on it, and passing their confusion off as a news story.
Click to expand...

Out of warranty price for a replacement iPad 2 (wifi model) when you drop it and smash the screen:
16GB $269
32GB $299
64GB $349

I doubt Apple is losing money on these numbers. The costs must be even lower than the above especially as time elapses from the original launch date. So they should have plenty of margin to work with to replicate their iPhone pricing strategy.
 
Makes complete sense - if the tablet market is going to again be a huge battleground over the next 12 months, it's important for Apple to offer a lower-priced iteration to capture a wider scope of customers.

Apple know that people won't jump ship to rival products because they've invested so much in existing app stores, so grabbing as many people as possible early on will help in the longer run
 
That would assume that the iPad 3 may take the pricing of the iPad 2. If that's the case I need to decide whether I want a PS Vita or put the extra to get an iPad 3. Decision time.
 
benedetti said:
The BOM for this device is ~$330.
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Is it still that today, or was that when it was released close to a year ago?

Prices on components drop over time, which allows the price on a product to drop as well. Just look at the iPhone 4 and 3GS.
 
aurichie said:
Out of warranty price for a replacement iPad 2 (wifi model) when you drop it and smash the screen:
Click to expand...

If you drop it and break the screen they can repair and resell the one you broke as a "factory reconditioned" unit. The $269 you pay covers their costs for parts and labor, plus a decent margin, even at the discounted reconditioned price. But most importantly their policy keeps (klutzy) Apple customers happy AND those reconditioned units act as a "stealth" discount iPad, without cheapening the rest of the brand like a ~ $350 "last years model" iPad 2 would do.

Win-Win-Win.
 
$399 iPad 2 16GB
$499/$599/$699 iPad 3 16GB/32GB/64GB

Don't see them upping it to 128GB unless they up the price like they did with the 4S.
 
Cash in hand for both. The iPad 3 for personal, every day use and 3 iPad 2's for my 1 year old set of triplets. I'd get 4 iPad 3s but I don't think you can pre-order more than 1 at a time and I don't want to have to make them wait longer than they already have.
 
nutjob said:
It's Amazing how Apple's trained its customers to pay a premium. But the point is that the competition is at $200, and especially in this economy if enough people buy from Amazon, it gives them a beachhead into Apple's market. Regardless of features, which don't always mean as much to the average consumer, Apple has to compete on price.
Click to expand...

You're funny! And BMW should match the price of Kia and Hyundai. Regardless of features, BMW has to compete on price. :rolleyes:
 
current iPad at 500 is already destroying the competition. When the iPad 3 releases, they need not go lower than 400

Also, Apple uses their pricing to generate the appearance of value. Pricing the iPad 2 at 350 'devalues' it too much
 
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