Expect to be amazed ...

[Dwalls90]

By the price point, not the specs. Given things like the resolution are to be the same, with us not seeing any major expansions to the bus area (USB, memory card, ect), it's safe to say that Apple is taking a price penetration approach to this variation of the iPad. Just like the first iPhone was expensive, though revolutionary and popular, I would expect this version to be like the transition from the iPhone 1 -> iPhone 3G. I think we should be okay with this, because the more widespread the iPad platform becomes, the better the software eco system (and after all this REALLY is what drives the success of iOS devices). That said, here are some prices that I think are reasonably fair to expect:

iPad 2 16Gb Wifi ($399)
iPad 2 16Gb 3G ($449)
iPad 2 32 Gb Wifi ($499)
iPad 2 32Gb 3G ($549)
iPad 2 64Gb Wifi ($599)
iPad 2 64Gb 3G ($649)
iPad 2 128Gb Wifi ($699)
iPad 2 128Gb 3G ($749)

Most importantly, beside a very slight boost to the specs like increasing the RAM and a bumped A4 chip with maybe a camera or 2, what else REALLY needs to be in the iPad 2?

 

[SteveKnobs]

Seriously doubt the cheapest model will be $399. Perhaps the first gen will see these kind of price reductions. but I expect the iPad 2 to be priced similarly to when the first came out....apple does like to make a profit .

 

[JAG77]

I also don't think that there will be a 16gb iPad 2 but maybe apple will offer one if they wanted a low cost iPad 2 on the market? Either way, if there is a 64gb 3g model under $700 I will be extremely happy !

 

[ZilogZ80]

Seriously doubt the cheapest model will be $399. Perhaps the first gen will see these kind of price reductions. but I expect the iPad 2 to be priced similarly to when the first came out....apple does like to make a profit .

I would certainly expect iPad2 to be priced the same as iPad1 and see the original having a price reduction.

 

[Dwalls90]

Seriously doubt the cheapest model will be $399. Perhaps the first gen will see these kind of price reductions. but I expect the iPad 2 to be priced similarly to when the first came out....apple does like to make a profit .

I do agree with the fact that like any other company, Apple loves profits. Buy doesn't the $499 iPad only cost ~ $250 in parts to make? I understand this doesn't include some overhead, marketing, R&D, ect. However, by this point I would hope iPad 1 has paid for most of the R&D of the overall concept and design (Apple's largest expense in this endeavor). Don't forget that Apple has been shrinking their margins in recent years, but been performing financially better all around too. This theory falls into line with those trends.

When you figure that hardware is only taking a slight increase (I would say 256MB -> 512MB RAM, A4 1.0Ghz -> 1.2Ghz) with the addition of two camera lenses that have a minuscule cost, I would say that the cost required to manufacturer the iPad 2 would be the SAME or CHEAPER due to Apple's command of the supply chain (expected demand is higher, thus Apple can buy into larger quantities which drives down prices, assuming the production means are available). Don't forget the LiquidMetal company Apple bought too last year ...

Apple doesn't always play by the rules of it's competitors when it comes to pricing, but they've been more competitive in recent years.

Bottom line is Apple needs to drive this product into the hands of more consumers in the earlier years of Tablet/Slate wars, in order to establish themselves as the dominant platform to secure future business. If that means taking a slight hit in profits, so be it. A 16Gb Wifi Entry Level iPad model of SOME sort would do just that, whether it be last year or this year's model.

 

[BrennerM]

I'm with Dwalls90, I think there will be a pretty significant price reduction for iPad 2, similar to how the original iPhone got a lot cheaper in its second iteration.

Now that all the competitors are coming out and trying to match Apple's current iPad prices, Apple will undercut them.

 

[poloponies]

I do agree with the fact that like any other company, Apple loves profits. Buy doesn't the $499 iPad only cost ~ $250 in parts to make? I understand this doesn't include some overhead, marketing, R&D, ect. However, by this point I would hope iPad 1 has paid for most of the R&D of the overall concept and design (Apple's largest expense in this endeavor). Don't forget that Apple has been shrinking their margins in recent years, but been performing financially better all around too. This theory falls into line with those trends.

When you figure that hardware is only taking a slight increase (I would say 256MB -> 512MB RAM, A4 1.0Ghz -> 1.2Ghz) with the addition of two camera lenses that have a minuscule cost, I would say that the cost required to manufacturer the iPad 2 would be the SAME or CHEAPER due to Apple's command of the supply chain (expected demand is higher, thus Apple can buy into larger quantities which drives down prices, assuming the production means are available). Don't forget the LiquidMetal company Apple bought too last year ...

Apple doesn't always play by the rules of it's competitors when it comes to pricing, but they've been more competitive in recent years.

I'd take those parts costs with more than a grain of salt. And don't forget that the dollar has been steadily dropping against the Yuan, so costs have increased (any volume benefit would be offset).

 

[paulrbeers]

Now that all the competitors are coming out and trying to match Apple's current iPad prices, Apple will undercut them.

But when has Apple ever attempted to "undercut" the market. That would reduce it's branding as a "high-end" product. They do not compete on price. To be honest, I was surprised the first iPad was "only" $499. While I would love to see a price reduction, I do not see that happening (not on iPad 2, iPad 1 yes if they continue to sell it). I believe the iPad 1 would be their "low end" price competitor if they feel like they need a low end model to compete.

Further, why wouldn't a faster processor, more memory and possible a higher capacity not be worth keeping the price the same? Isn't that what we expect from computers? If I buy the same model of computer two years in a row, but computer 2 has a faster processor, more memory and more storage, I wouldn't expect the price to go down, but rather stay the same.

 

[Dwalls90]

Further, why wouldn't a faster processor, more memory and possible a higher capacity not be worth keeping the price the same? Isn't that what we expect from computers? If I buy the same model of computer two years in a row, but computer 2 has a faster processor, more memory and more storage, I wouldn't expect the price to go down, but rather stay the same.

If only Apple was one to ever radically increase the specs of their products from revision to revision

I don't know about you, but I can't point to a single Apple product that's been revised in which case I've been shocked and amazed at the new hardware under the hood.

Point is, it would be AMAZING if we saw a dual-core 1.0Ghz+ Apple Chip with MORE than 512Mb of RAM and 128Gb of internal storage or higher ... but it's just not happening. If it does, which would be awesome, that would justify maintaining the pricing points as of present.

 

[paulrbeers]

If only Apple was one to ever radically increase the specs of their products from revision to revision

I don't know about you, but I can't point to a single Apple product that's been revised in which case I've been shocked and amazed at the new hardware under the hood.

Which again points to why they won't lower their price. I have a Macbook Pro 13" from 2009. The 2010 model, they increased the ram from 2GB to 4GB, increased the hard drive from 160GB to 320GB (I believe) and the processor from 2.26ghz to 2.4ghz. It was not worth upgrading, and they DIDN'T LOWER THE PRICE.

Thank you for making my point.

 

[poloponies]

Which again points to why they won't lower their price. I have a Macbook Pro 13" from 2009. The 2010 model, they increased the ram from 2GB to 4GB, increased the hard drive from 160GB to 320GB (I believe) and the processor from 2.26ghz to 2.4ghz. It was not worth upgrading, and they DIDN'T LOWER THE PRICE.

Thank you for making my point.

Better graphics, better battery (10 hr v. 7-8 hour). Yes, the 2010 MBP was an incremental bump over the previous year, but even Apple doesn't expect people to upgrade their notebooks every year. They just keep the models fresh.

 

[paulrbeers]

Better graphics, better battery (10 hr v. 7-8 hour). Yes, the 2010 MBP was an incremental bump over the previous year, but even Apple doesn't expect people to upgrade their notebooks every year. They just keep the models fresh.

And since the iPad uses a SOC, maybe they will finally bump the GPU from using the 535 to the 540 in prep for a higher resolution display next year. That again would be a normal refresh for Apple.

 

[ZilogZ80]

I do agree with the fact that like any other company, Apple loves profits. Buy doesn't the $499 iPad only cost ~ $250 in parts to make? I understand this doesn't include some overhead, marketing, R&D, ect. However, by this point I would hope iPad 1 has paid for most of the R&D of the overall concept and design (Apple's largest expense in this endeavor). Don't forget that Apple has been shrinking their margins in recent years, but been performing financially better all around too. This theory falls into line with those trends.

When you figure that hardware is only taking a slight increase (I would say 256MB -> 512MB RAM, A4 1.0Ghz -> 1.2Ghz) with the addition of two camera lenses that have a minuscule cost, I would say that the cost required to manufacturer the iPad 2 would be the SAME or CHEAPER due to Apple's command of the supply chain (expected demand is higher, thus Apple can buy into larger quantities which drives down prices, assuming the production means are available). Don't forget the LiquidMetal company Apple bought too last year ...

In trying to reason logically what the price might be, you are completely ignoring the only thing which is really a factor - it will be priced at whatever point Apple decide the market will bear.

 

[Dwalls90]

Which again points to why they won't lower their price. I have a Macbook Pro 13" from 2009. The 2010 model, they increased the ram from 2GB to 4GB, increased the hard drive from 160GB to 320GB (I believe) and the processor from 2.26ghz to 2.4ghz. It was not worth upgrading, and they DIDN'T LOWER THE PRICE.

Thank you for making my point.

But doubling RAM costs a few bucks as does increasing the hard drive. You can buy a 750Gb notebook hard drive for $100 ... imagine how much it would cost Apple to buy a 160Gb drive in BULK and the difference in price to a 320Gb ... here's a hint, a few bucks if that.

Again, the PERFORMANCE difference between a 2.26 and 2.4 Ghz C2D CPU is negligible. My 2.16Ghz Macbook runs with 2.4Ghz Macbook Pros of the same "generation". Those extra Mhz mean nothing compared to the architecture of the CPU.

In summation, you proved my point. Apple made VERY small and cheap incremental "performance boosts". No radical changes of great bargains to be had.

 

[paulrbeers]

In summation, you proved my point. Apple made VERY small and cheap incremental "performance boosts". No radical changes of great bargains to be had.

But your point was that because of minimal increases in various parts, they would reduce the cost, was it not? But my point was, apple does minimal increases in various parts and does NOT lower costs.

 

[Sodner]

Interesting question......

There are currently SIX models of the current iPad. iPad 2 will undoubtedly offer the same number of models, but probably start at 32Gig at the same price point of the current models. Question is, does Apple then continue to offer all 6 versions of the iPad 1 or just say the the 2 16MB versions at say $399 and 3G for $449? No way stores stock 12 iPad versions.

Hummmm???!!!

 

[poloponies]

But doubling RAM costs a few bucks as does increasing the hard drive. You can buy a 750Gb notebook hard drive for $100 ... imagine how much it would cost Apple to buy a 160Gb drive in BULK and the difference in price to a 320Gb ... here's a hint, a few bucks if that.

Again, the PERFORMANCE difference between a 2.26 and 2.4 Ghz C2D CPU is negligible. My 2.16Ghz Macbook runs with 2.4Ghz Macbook Pros of the same "generation". Those extra Mhz mean nothing compared to the architecture of the CPU.

In summation, you proved my point. Apple made VERY small and cheap incremental "performance boosts". No radical changes of great bargains to be had.

Nobody -- nobody -- considers a notebook to be a yearly upgrade product. There are are undoubtedly people who get a new one each year but the old every-3-years rule of thumb applies to most consumers and businesses. When you drop into iPod pricing (and let's not forget the original iPod pricing was $399/$499) range then there's an allure to buying the newest tech.

Apple's not upgrading notebooks to attract the previous year's buyers to get a new one, they're doing it to keep the product lines fresh for new buyers.

 

[Piggie]

I'm sure I will be amazed at how much more it costs in the UK than the US.

But in the UK we are used to be shafted over prices.

 

[slicecom]

Why does everyone seem to think Apple will keep the first iPad around when the second one launches? This isn't an iPhone. It's more similar to the iPod, which they've never kept the old models around while releasing a new one. I just don't see it happening. What would be the point? All speculation is the iPad 2 will be a relatively minor upgrade anyways.

 

[ZilogZ80]

I'm sure I will be amazed at how much more it costs in the UK than the US.

But in the UK we are used to be shafted over prices.

I really hope that rumour from yesterday (I think) that said iPad2 will be US only for 3 months doesn't turn out to be true - it is bad enough getting shafted on the price but if we can't even buy the bloody thing I will be truly hacked off!

 

[Piggie]

I really hope that rumour from yesterday (I think) that said iPad2 will be US only for 3 months doesn't turn out to be true - it is bad enough getting shafted on the price but if we can't even buy the bloody thing I will be truly hacked off!

I can't see this happening.

Such a delay would open up a massive iPad black market in imported ones.
A few weeks most people would wait, but 3 months, there would be thousands being brought into the UK from the USA.

 

[Piggie]

Why does everyone seem to think Apple will keep the first iPad around when the second one launches? This isn't an iPhone. It's more similar to the iPod, which they've never kept the old models around while releasing a new one. I just don't see it happening. What would be the point? All speculation is the iPad 2 will be a relatively minor upgrade anyways.

I don't think they would do and I don't think they have the manufacturing capacity to do it, but if they slashed the price and made the current iPad a base model they would totally rule the tablet market full stop.

But I don't think they could physically handle it, and it's not their way to try and do this sort of thing, so I don't expect it would happen.

 

[Syk]

Not the first time I've heard there will be a price drop. That would definite grab the attention of people.

It would be hard for a person on the fence to go with another device at those prices you posted.

 

[slicecom]

I remember how shocked everyone was at how low the price was on the first iPad. People were expecting it to cost $800-$1000. Now people are predicting $400 a year later.

 

[Piggie]

I remember how shocked everyone was at how low the price was on the first iPad. People were expecting it to cost $800-$1000. Now people are predicting $400 a year later.

Yeah, but be fair, if you look back at that time, most people were expecting some OSX type of tablet device, not what ended up being released.

If it WAS a full OSX device then I'd expect the price to be towards the $1000 area.