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It's painfully obvious they're both 10% of an arbitrary amount, that doesn't mean that people are as unwilling to spend $30 on $300 for a tablet as they would be to spend and extra $30k on a $300k house.

Have you heard of the marginal value of money?

Do you know anything about how people make economic decisions?

It's a spurious comparison.

I see some people look down on people who have to budget, but a budget is a budget, and 10% out of budget is a lot. What you're really trying to say is people who can't afford Apple don't have a right to complain about their high prices.

It's like class warfare, right in this thread.
 
Of course it is. The statement was, if you're willing to spend $300 on a device, what's an extra $30? Which can be said about everything you buy. If I'm willing to spend $15 on a haircut(my limit), what's an extra $3? Well enough that I'll be going somewhere else. If I'm willing to spend $300,000 on a house, what's an extra $30,000? Well enough that I won't be buying it. There's a point I'm making. Get it?

I think you are wrong. Almost anyone could spend the extra $3. You could just eat something less expensive for dinner that night. But with a house you have to deal with a bank and they get to decide how much they will loan to you. They can decide for you that you can't afford the extra $30,000. Even if not dealing with a bank a person's ability to absorb and extra cost goes down as the price goes up. In other words choise goes away with increasing price.

Now is $330 to high? We shall see. Perhaps Apple keeps the price up to limit demand to manufacturing capacity?

BTW where do you live, in Rural Kansas or something? There simply are no 330,00 house anyplace near here even with the recent recession. Minimum is about double that here is So. Cal.
 
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I get your point, but (a) it's wrong and (b) your example doesn't support it.

People don't make economic decisions the way you describe - nobody sets a price in stone for things like haircuts, houses, or iPads and then goes looking for something that fits their price. Even when people say they do this, economic research shows that people constantly moderate their willingness to pay a particular price based on context, on what's available, on the transaction costs involved in looking for cheaper alternatives, on the nature of the product they are buying, and the amount that the product costs. In other words, people's behavior doesn't match what they say they will do.

While consumption in the aggregate is dependent on price, it is not dependent on it in a way which is transparent to the consumer, even if he or she thinks it is.

Any grouch who comes along and says "I said I would only spend $200k on a house (or $10k on a car or whatever) and gosh darn it that's what I stuck to" ignores how they came up with that price in the first place, and ignores how they committed to buying one item within a general category ("a house") when this is about something specific (an iPad Mini, not just 'a tablet').

The fact that you say you currently won't spend $330 on this iPad Mini (before price or product are even announced, let alone for sale) but would spend $300 is insignificant. There's nothing reliable to be drawn from it.

EDIT: Ok, you roll eyes at the claim that $30 = $30,000, and then in your very next post you say "Of course they are equivalent". Did you think someone was interpreting you to mean that those two amounts were literally the same integer?

Ok, let's tell the story in a different way:

so, let's say you are willing to spend $329 on it ok?
are you still willing to buy it with a price of $330? Yes?
then what about $331? and $332? etc.....

do you get it? for everybody there is a limit on how much they are going to spend on it.

people saying "oh whats only $30?", but that's exactly it! if you're thinking in that way you have to ask yourself where your limit is. lets say $400. but what if it was $430. you would still buy it? its only $30 more. and this goes on and on.

i am planning on buying an ipad mini, but only if it is under the $300. there's my limit and many people have that same limit. everybody should stop telling people about that $30 is not so much. everybody has his or her limit when it comes to buying things like this. and for many people that limit is $299. (!)
 
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The statement of Apple making "billions" has been debunked MANY times.

For more current numbers, in July 2012 Apple announced they surpassed 5.5B in payouts to developers for the entire 4 years the app store had been in operation. So if developers get 70% then Apple's 30% is about 2.4B. That is before ANY costs to Apple are factored (hosting infrastructure, network infrastructure, building data centers etc.) and again that is over the entire time the app store has been operational.

Apple's model is to use the app store to drive hardware sales, not the other way around.

Your link is stil someones estimate based on a VERY lot average app store price. It is still not conclusive. I still believe Apple is making a healthy profit from that 30% cut but I'm not going to google to find out as it doesn't look like Apple is forthcoming with the exact figures. Which would make me suspicious.

Your source also includes "sales of iPod services and Apple-branded and third-party iPod accessories" in that number, and I haven't seen the post where you detail the actual operating costs, so your argument isn't very compelling.

You're convinced Apple makes zillions off of their App store and that they could (and should) use that to offset hardware sales, but you haven't really mustered a great argument in favour of that. Just because you find it believable doesn't mean it's true.

EDIT: And I still don't see why Apple is obliged to take one profitable aspect of its business to lower prices for another aspect. If the App store is just a cash cow, why aren't you arguing for lower prices in the App store?

The app store prices are fine, however SOME of the IN APP purchase prices and systems are an outright scam and feature disgusting pricing, take Gameloft, Modern Combat 3, I could spend as much on an in app purchase as the collectors edition of the latest Call Of Duty for my Xbox costs! And we have already seen children run up bills of thousands from in app purchases.
The freemium model is both good and bad IMO. I'll buy an app but I dislike then having to pay more for extras, I would rather pay a higher purchase price.

And yes I didn't notice the other items included the other items in that result, and googling seems to indicate Apple is not very forthcoming with the EXACT figure for the app store, which just makes it more suspicious in my eyes. But if you can find an actual accurate financial report for the revenue of the app store then please post it here.


Anyway, this is off topic and as neither side of the argument can be backed up with actual reliable proof I think it's a case of beliefs and opinions.
 
Kwag's,

Please do yourself a favour and stop being such an Apple fanboys, given there are numerous Android rumour sites its a well known fact that at the months end Google will be selling a 32G Nexus 7 for the price of the present 16G model.

Further, the fervour/ utter devotion on these boards to anything manufactured by Foxconn - Apple just do the design and branding nowadays - is truely staggering.

As an old timer who has been with Apple products since 1992 - I began life with a LCII - one is most displeased at the direction Apple is moving in and the price gouging of those who purchase its products.

Further, if you wish real innovation, you have to have meaningful competition and Samsung, Asus and Google are handing this out by the bucket load.

Whilst I adore many of Apple's products, this does not mean one cannot be critical of the company or its business practices - I hate the fact 14 year old children have been caught assembling its products - my LCII by the way was manufactured in Ireland and my first iMac manufactured in Singapore - as such, I wish Apple would assemble its goods outside of China and the Far East - give jobs to American's rather than dividends to the 1%.

As for those who purchase Apple's products, I'm certainly not rich or part of the 1%, but it does seen that Apple's pricing strategy is aimed at that segment now, and for the high price to put it bluntly, some of its products are not up to scratch - may I mention the iPhone 5 as an example of this.

by all means engage in meaningful dialogue, but some of the crud now posted on these boards is ludicrous in the extreme.

You Sir, have earned my respect. Hats off to you.
 
BTW where do you live, in Rural Kansas or something? There simply are no 330,00 house anyplace near here even with the recent recession. Minimum is about double that here is So. Cal.


I live in So Cal as well btw:p

I'm sure there isn't any $330,000 houses in Redondo Beach, just like there won't be any in Malibu, but here in the San Fernando Valley, there is :D

Oh and I'm not talking about the ghetto either lol.
 
Touché.

I'm not sure if Apple will include a Retina screen, but they should because it would add the premium to their premium product. Although saying that I'll probably buy it anyway. I have an Apple ecosystem and I want a 7-8" tablet.

And that is fine, like you said you didn't like Android, so you prefer iOS. Nothing wrong with that. I stick to an iPhone because of all my investment in apps ;) that's why even though it was damn expensive I brought a 32GB iPhone 5. Then again I don't plan on changing it for a few years either.
 
I think you are wrong. Almost anyone could spend the extra $3. You could just eat something less expensive for dinner that night. But with a house you have to deal with a bank and they get to decide how much they will loan to you. They can decide for you that you can't afford the extra $30,000. Even if not dealing with a bank a person's ability to absorb and extra cost goes down as the price goes up. In other words choise goes away with increasing price.

Now is $330 to high? We shall see. Perhaps Apple keeps the price up to limit demand to manufacturing capacity?

BTW where do you live, in Rural Kansas or something? There simply are no 330,00 house anyplace near here even with the recent recession. Minimum is about double that here is So. Cal.

its not about if you can afford it or not, its about limits....
 
I believe you have over analyzed the situation to an incorrect collection.

A tablet, especially a mini tablet, is a fancy ereader, something to surf the web with, check your email and play a few games when your bored.

Amazon and google have hit the mark at the correct price point. History has shown as soon as consumer electronics hits the $199 price point they sell like hotcakes.

Is that why the tablet market is so far skewed in Apple's direction then?

A $199 price tag on the iPad would be nice, but impractical if you factor quality into the equation. Anything more than that may not be your cup of tea, but the stats on the number of people that have bought one so far with a low end price of $499 suggests otherwise.
 
Hmmm... Where are you shopping?

GOOG only makes an 8 GB and 16 GB Nexus 7. There's no 32 GB Nexus 7.

... And don't forget to add $14 shipping from GOOG.

Argos..

I have their Christmas catalogue sat in front of me where amongst it's pages of products you can buy is a 32GB Nexus 7 for the exact same price as the 16GB Nexus 7.

Oh and here's a story about Argos confirming this was real complete with a picture of the page in question:

http://www.gizmodo.co.uk/2012/10/argos-confirms-a-32gb-nexus-7-is-on-the-way-for-200/

And here:

http://techrapid.co.uk/general/uk-r...to-offer-32gb-nexus-7-available-for-199-99-2/

And heres a video of a 32GB Nexus 7 because some lucky people have managed to buy them from Staples in the US:

http://www.youtube.com/watch?v=06FwS-weBx4
 
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That's the same as the 16GB Nexus - Looks like there'll be competition :)

The 16GB Nexus is $250.... In a few days, Google is going to start selling a 32GB Nexus 7 at $250, meaning the iPad mini will be even worse of a purchase.
 
Thats that gruber talk assuming they use 3GS sheets. Why would apple do that they are smart enough to predict 3GS demand and why would apple use leftover components. That sounds like a samsung move. Yeah its a good business decision but I would predict better than 163... Hopefully....


nm
 
I agree Apple can get away with charging a bit more for the logo.
But I honestly believe many folks are buying a 7 inch for reading and web/email/games.
Almost every book I search for in ibooks is available in Amazon as well.
The same is true for most games.
Yes- Apple does beat Amazon in Apps- but IMO- productivity apps are better suited in a full size pad.

Most folks I talk to would much rather pick up a cheap FireHD and spend the $$$ saved on actual content (books, etc.). Saving $100- $200 for content makes sense.
 
FYI, iOS devs have to pay $100/year before they even get to try and sell anything. This fee covers the fees to run the app store. The %30 that apple gets is all gravy.

The quality of maths education is truly scary.

If there is one million developer accounts that's $100 million per year. That's nothing. And that's _accounts_. Any decent account has multiple developers, so the number of accounts is a lot less than a million.
 
I agree Apple can get away with charging a bit more for the logo.
But I honestly believe many folks are buying a 7 inch for reading a portable web/email use/games.
Almost every book I search for in ibooks is available in Amazon as well.
The same is true for most games.
Yes- Apple does beat Amazon in Apps- but IMO- productivity apps are better suited in a full size pad.

Most folks I talk to would much rather pick up a cheap FireHD and spend the $$$ saved on actual content (books, etc.). Saving $100- $200 for content makes sense.

But what you have described here is EXACTLY what 80% or more of iPad users probably do with their iPads, and look how much they are?
So don't buy this whole argument about what a 7.85' iPad will be used for, it's uses will be the exact same as an iPad 3 for many people. Only more so as it is more portable and convenient.
 
FYI, iOS devs have to pay $100/year before they even get to try and sell anything. This fee covers the fees to run the app store. The %30 that apple gets is all gravy.
Ehm, did you see how many devs are registered? If you multiply that by 100 you really think you could run that infrastructure for that little money? For how long? One month? One day?
You must be joking.
 
And Apple's succes IS marketing, if you don't believe that then YOU are the clueless one. It has this stupid 'Cult' built around it's brand which it helped to nurture into existence,

I rest my case. Nothing needs to be added.
 
Apple does NOT understand how to price a product that nobody needs.

Apple, you just lost my sale for the iPad Mini! I will NOT be purchasing this product!

Good luck selling them to some sucker out there who will buy one, but I can guarantee you that I will NOT. i'm just fine with my iPad 3, thankyouverymuch.

Ironically enough, Apple, if you would have priced this product appropriately (like $199 or $249), I would have snapped one up for guests to use in the living room.

But at these prices, you have completely lost both my sale AND my interest. Yet you could have had BOTH my sale AND my interest if you would have priced these appropriately, at $199 or a MAXIMUM price of $249.

Good luck, though... I'm sure some sucker out there will plunk down $329 for this unnecessary object.

Complain all you want, but if Apple launches this product this week, they will see 50 Million + kids/parents buy it, thus making big profits.
 
When has apple ever surprised anyone with lower pricing?

Original ipad announcement. Folks were all worked up over the talk of $999 starting price. But it was $499

----------

Listen, just because you might be able to afford an extra $30, doesn't mean everyone can as well.

so you save up for another month or two to have that extra $40 (to cover additional sales tax) and can't get it on launch day. Probably better that way cause then you can avoid being a 'buggy release guinea pig'

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I don't understand how someone can just jump to android after pricing like this. "Oh nevermind that I already bought all these apps, I'll just rebuy hundreds of dollars of apps on another platform because Apple's iPad offering is too expensive"

true that. "I'm can get an Android for $100 less than this"
Okay but you'll spend a good $100 rebuying all your apps
 
But what you have described here is EXACTLY what 80% or more of iPad users probably do with their iPads, and look how much they are?
So don't buy this whole argument about what a 7.85' iPad will be used for, it's uses will be the exact same as an iPad 3 for many people. Only more so as it is more portable and convenient.

That's correct.
I do not doubt Apple will move a good number of these at their price.

I'm considering the cost of content as part of the total cost. You can spend roughly $200 on a Fire or NookHD and another $100 - $200 on content.
$400 for a nice portable device full of content.

With Apple you spend $400+ just on the device and still have to fill it with content.

I would prefer the Apple product but when I consider the additional cost- I would rather spend $$$ on content.
 
I'm just gonna mirror hundreds of other post here and say this is too expensive. I think asking anything more than $250 is too much for the base model.

The nexus 7 does A LOT for the money, it's a great tablet. And considering this iPad mini seems to be more geared towards consuming content VS creating it (like the Nexus 7) I don't see how they can justify the price. I really enjoy my Nexus 7 because it does everything google extremely well and it was a great price.

I love my iPad 2, and I will more than likely buy an iPad "4" next spring, because I find the iPad to be an indispensable tool for my schoolwork as well as for entertainment. But this mini, at these prices, seems like it is being targeted at some demographic I'm just not aware of.

Still, it's an iPad, and people will suck it up. I just don't get the pricing. Then again it's all speculation and the mini could very well end up costing less (or more) than this report suggest.
 
Well I guess Apple doesn't care about letting Amazon and Google continue to make inroads in the tablet market.

Of course they don't. I believe it was Steve himself that said that Apple winning doesn't have to mean the other teams losing. Not to mention that competition means less worries about anti-trust and less "they aren't really the best they are just the only thing out there" hater talk.

The other teams aren't taking over the market and Apple is still selling millions upon millions of devices. Plus since no one adjusts for returns it's hard to really say what the final numbers are. For example, the truth could be that Amazon sold 5 Million Kindle Fires and only 100k of them were returned. Or it could equally be that they sold 5 million and 4.5 million were returned. And for all we don't know, 400k of those 'kept' units could be gathering dust in a desk while folks are back using their computers, using their phone etc
 
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