Good reason to wait for an iPad

Discussion in 'iPad' started by AJsAWiz, Feb 10, 2010.

  1. AJsAWiz macrumors 68040


    Jun 28, 2007
    I was an early iPhone adopter/purchaser and was disappointed with the price drop shortly after it's release. So, I will wait and see before jumping on the bandwagon this time :rolleyes:

    "Well, well, well. According to a report in the Wall Street Journal today, Apple management is going to remain "nimble" in iPad pricing if sales start off slow. Hey, wait a minute—are you thinking what I'm thinking?

    The scoop originates from a Credit Suisse analyst, who apparently met with Apple executives recently to discuss all things tablet. In addition to the execs pitching how the iPad wouldn't cannibalize Apple's other product lines, they outright stated that they'll adjust pricing if they have to:

    "While it remains to be seen how much traction the iPad gets initially, management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated)."
    This actually isn't all that surprising, if you think back to the iPhone's launch in 2007 and the dramatic $200 price cut that followed just a few months later. That caused sales to surge 200% and garnered no small amount of publicity for the new device.

    Bottom line: I don't exactly have $500 to $830 burning a hole in my pocket to spend on a first-gen device. So spread the word! And for goodness sake, stay strong and don't buy an iPad. Yet."
  2. Hankster macrumors 68020


    Jan 30, 2008
    Washington DC
    Last week there were several articles in the news stream about Apple having a 42.7 (or 42.9) percent profit margin on the iPad. Thus allowing Apple to reduce the price at any time to increase sales much like they did with the iPhone.

    It's smart business really, you get the folks who will pay the high price. Then wait a month or so and drop the price to get more folks who didn't want to pay the higher price or was on the fence about purchasing one anyway.
  3. Bytor65 macrumors 6502a

    Feb 10, 2010
    I wouldn't count on a iPhone repeat. 40% margins are what Apple expects and unlike the iPhone, there is no fudge room with carrier subsidies this time. Any change in pricing comes straight out of the margin.
  4. bossxii macrumors 68000

    Nov 9, 2008
    Kansas City
    To the gadget geeks/freaks that love all things Apple and all kinds of gadgets. Price really doesn't matter. Its not about price, it's about owning something first. People don't camp out for 5 or 6 nights on the sidewalk and then suddenly a month later thin OMG I should have waited! Sorry you cannot afford one at the current prices but no one is going to wait so you can save money.

    I dont' know what Apple's "ideal" sales figures are, but nothing any analysts says will convince those who plan on buying the device to wait 60, 90 or 120 days to save 100 bucks. If you would have followed Apple over the past 10 years you would see how they price their product, iPad is no different. They will "stimulate" sales by lowering a price or adding features. iPhone is a perfect example of that, and if I recall in 2007 when they dropped the price 200 bucks after 30 days, they also issued credits back to the early adopters that paid the higher price.

    Either way the early adopters won't lose out. If it's slow at $499 and they goto $399 after 30 days they will issue rebates just like on the original iPhone.
  5. GeekGirl* macrumors 65816


    Feb 26, 2009
    Buffalo, NY
    It's not about price. I could careless if i get a penny back. Come on pre- order...
  6. agkm800 macrumors 6502a


    Jun 18, 2009
    My wish is that there will be a price drop, but my prediction is that the iPad will be an instant hit and there will be no price drop.

    The major difference with the first iPhone was that there was no app store back then + tens of millions of people have already experienced iPhone and iPod Touch now and majority of people won't have to second guess the investment this time.
  7. marksman macrumors 603


    Jun 4, 2007
    That is actually a stupid report based on nothing.

    Whatever apple exec copped to that to a reporter is a moron.

    All businesses intend to stay nimble with pricing.

    I doubt Apple will be making any pricing adjustments for a while, especially on the base model. They had to work hard to get it at $499 so don't wait around based on a stupid news report made by a dumb executive.
  8. shakenmartini macrumors 6502

    Apr 29, 2008
    I think the report of the price softening was to ease investor worries if the iPad is not a success.

    That being said, I have a strong suspicion that a 128 gb iPad might be released around back to school or the holidays with a $100-150 drop i price for the 16 gb model.

    Also look for subsidized 3G models from ATT ($200-300 off).
  9. Niiro13 macrumors 68000

    Feb 12, 2008
    I don't think so. Remember, the operating system is the same as the iPhone OS, just scaled up a little. I don't see why the iPad would need 128 GB. It's marketed as a device for reading and internet as opposed to music like the iPod touch (not to mention I don't think Apple expects that many people to have backpack iPods).

    Subsidized pricing maybe, but just the thought doesn't make as much sense. Then again, who knows?
  10. bossxii macrumors 68000

    Nov 9, 2008
    Kansas City
    I hope they kill off the 16gig soon and just make 32gig the base.

    As for the AT&T subsidized... can't see this happening based on the current prices per month. If they do, I bet they try to stick people with a 60/mo 2 yr deal, which is a complete rip off for only a 300 discount.
  11. goobot macrumors 603


    Jun 26, 2009
    long island NY
    didnt you get a rebate if you were a early adopter?
  12. shakenmartini macrumors 6502

    Apr 29, 2008
    Based on netbook subsidy, I expect to see a $200-300 model with 2 yr conract. Probably $200, since this is the sweetspot for consumers, but this will almost certainly be a 2 yr/$30 data plan.

    As to the back to school, apple did exactly this thing with the iPod touch. Essentially giving them away with a Mac purchase and guess what? just about every college student I know has either an iPod touch or an iPhone.

    Given their textbook strategy, I really could see apple selling a $300 16 GB iPad for back-to-school and then rotating the models. If apple is serious about students with e-Textbooks, this would be the way to dominate the market because a $300 iPad (entry level) + $50 e-Textbooks would be cheaper and more convenient than $200 text books.

    Look for a trifecta by allowing iBooks to be read on Macs only while Apple "develops" a PC application .
  13. agkm800 macrumors 6502a


    Jun 18, 2009
    If I'm Apple, I would just throw in iWork for free rather than an actual price cut.
  14. smetvid macrumors 6502

    Nov 1, 2009
    so why don't all of us just wait and then Apple will lower the price because the amount of sales will be low. Together all of us can still be early adopters but save a few bucks as well.
  15. bossxii macrumors 68000

    Nov 9, 2008
    Kansas City
    See my post above, as the early adopters of the iPhone in 2007, once the price cut hit, they all got rebates back anyhow. My theory is if the iPad blows up like the iPhone on launch day, it will sell 500k to 1m in a very short time. If this happens, a few thousand people that actually read some analysts post own't make a difference anyhow.

    The opposite is true as well, if it flops out of the gate, and say 100k sell in the first 30 days, and Apple does drop the price 100 bucks. Just like in 2007 they will likely rebate those who paid the higher price to keep everyone happy.

    We live in a world of instant gratification, no one that truly wants an iPad is willing to wait for 100 bucks. Those crazy people that camp out are not worried about the price, they want to be the first ones to own it. Tell someone camping on the street for a few days if they wait 60 days they will save 100 bucks... they will look at you and laugh, they simply don't care.

    Top all that off with the fact people were thinking $700 to $999 as a price range, I think many look at $499 as a bargain. I have to admit I was prepared for a $699 starting price, was rather shocked when I saw $499.
  16. greygray macrumors 68000


    Oct 22, 2009
    I believe there was a rebate of $100?
  17. bossxii macrumors 68000

    Nov 9, 2008
    Kansas City
  18. sonicboom macrumors regular

    Sep 10, 2006
    I wonder why people were thinking that. Could it be because a "leak" came out of Apple it could be priced at $1000? Then when it's announced that it'll be half that (but not really), we're supposed to be blown away by it?

    Come on people. You're being toyed with.

    That said, I think it's a cool gadget, and will probably buy one, but not because the price sounds too good to be true. It's because I like toys and I can afford it.
  19. macduke macrumors G3


    Jun 27, 2007
    Central U.S.
    Let's say they do cut the price. It won't be more than $100 for the base model. More likely they will eliminate the wifi model and make a 3g 32gb version for $499 and 3g 64gb for $599. Well, that's what I think they should have done in the first place.

    Now if they do drop the price $100, say before Christmas, I won't be upset. Why? Because for only $100, I got to have an iPad for 8 months longer than those who waited. I think that's worth it, because I really see the value of it fitting into me and my wife's lifestyle and the money saved on textbooks next autumn.
  20. seong macrumors 65816


    Feb 11, 2010
    This is going to be different.

    This is going to be different since iPhone was amongst other smartphone companies, but not iPad.
    Do you see any other companies selling similar ones as iPad?
    Yes for Lenovo and HP, but they can't run thousands and billions of apps.
    If Apple was to drop it, here will be three situations:

    1. Apple drops it before it launches. This will surely make people want to buy the first generation and when Apple launches iPad 2G, then it will have some extra bundles, such as camera, which will then make more people to buy one.

    2.Apple drops it few days or weeks after it's launch. This will happen same thing with iPhone, but Apple wouldn't do that again and give a return of $200 in $100 iTunes Giftcard. Sure, they can do this, but I am sure this will anger the media.

    3. Apple drops for christmas with MORE updates. You know for iPhone and iPod Touch? They released the new firmware just in few weeks or month or so. Christmas will be the BEST time for Apple since Apple will -> drop the price+add webcam for face recognition and video chat=boost of 500% of people buying it.

    Hope this will be true for what will happen.
  21. itsMrLuke macrumors newbie

    Feb 9, 2010
    I can see a product refresh before a price drop. The fact is, there is no reason for them to drop the price because there is currently no competition.

    Another scenario could be something like an iPad pro being released in November and then a price drop on the original iPad.
  22. maflynn Moderator


    Staff Member

    May 3, 2009
    Did those articles only mentioned parts cost or include manufacturing costs. What other overhead did they include in their basis for stating that apple is realizing 42 profit margins. Does that include the R&D funds being expended to create the device?

    Most of the time, many of these types of articles are incomplete at best, misleading at worst. They fail to take into account apple's need to account for overhead through out the entire pipeline, i.e., paying for parts, manufacturing, marketing, salesmen salaries, etc.

    I seriously doubt that apple is having such a huge profit margin at least without any proof of documentations to back up that claim.
  23. samcraig macrumors P6

    Jun 22, 2009
    "Its not about price, it's about owning something first. People don't camp out for 5 or 6 nights on the sidewalk and then suddenly a month later thin OMG I should have waited! "

    Really? Can you point me to the threads on here from back that which didn't complain b*tching and complaining about people spending money on the iPhone only to see the price reduced? I think there was more than one but errrr I'm not sure LOL
  24. bossxii macrumors 68000

    Nov 9, 2008
    Kansas City
    That was then, this is now... we have history to base our buying decision on. Sorry if your trapped in 2007.

    The fact everyone that purchased in that time frame (30 or 60 days, don't' recall exact numbers) was given a rebate. My point is your not getting people to wait 30 or 60 day based on a "rumored" price drop. Knowing what Apple has already done to satisfy early adopters back in 07.
  25. samcraig macrumors P6

    Jun 22, 2009
    I was being snarky towards the whiners here. I'm not stuck in any year but the current one...

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