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Stetrain

macrumors 68040
Feb 6, 2009
3,548
18
So, I think the first part is obvious, that the Price will drop once the 2nd gen is released, but: how much will it be?

I'm hoping for $299 for the 16GB :D

Pretty unlikely. If we get the old 16GB for $399 that would actually be a pretty big deal. I wouldn't be surprised either if they don't do that. They could very well just update it and keep the starting price at $499. If that's the case then you could probably get a pretty good deal on an unopened previous generation unit on ebay.
 

jb1280

macrumors 6502a
Jan 13, 2009
864
248
No, it's not obvious that there is going to be any price drop on iPad. There is a remote chance that the current $499 might slide down to a slightly lower price, but given the prices we have seen from so-called iPad competitors there appears very little downward price pressure.

Expect updated iPads that are faster with a couple new features starting at just $499. Be pleasantly surprised if you can pick up a first generation for under $400.
 

colmaclean

macrumors 68000
Jan 6, 2004
1,679
266
Berlin
Depends what model Apple employ.

Maybe the original iPad will only be available through the refurb store. Expect to make a saving, but nothing incredible.
 

maflynn

Moderator
Staff member
May 3, 2009
68,681
36,440
Boston
We generally see a 14% price drop in the refurb store, and I don't think you'll see anything higher then that. So you'll see the base iPad model to be sold for 429.
 

joelobrien

macrumors newbie
Jan 11, 2011
10
0
Look at the trends with other products made by Apple and you will see that the value is nearly the same as it was at launch for most products. In some cases, such as with some of the iPod Touch models, the new iPod touch sold at a cheaper price than the older model.

I don't think we will see more than 10-15% off the price from Apple. Perhaps you will have better luck with outside sellers and used products though.
 

poloponies

Suspended
May 3, 2010
2,661
1,366
So, I think the first part is obvious, that the Price will drop once the 2nd gen is released, but: how much will it be?

I'm hoping for $299 for the 16GB :D

Why does anyone think Apple will keep selling the original iPad as a new product in the US once the next one is released? While it's certainly likely that it will continue to be available in other markets until the new one can be rolled out worldwide, but there's not going to be a fire sale on the last generation.
 

darngooddesign

macrumors G4
Jul 4, 2007
11,276
1,864
Atlanta, GA
Why does anyone think Apple will keep selling the original iPad as a new product in the US once the next one is released? While it's certainly likely that it will continue to be available in other markets until the new one can be rolled out worldwide, but there's not going to be a fire sale on the last generation.

I can currently buy an iPhone 3GS for $50 almost 6 months after the 4 was released.
 

poloponies

Suspended
May 3, 2010
2,661
1,366
I can currently buy an iPhone 3GS for $50 almost 6 months after the 4 was released.

Yes, you can. However, that's the only example of Apple ever doing that, and certainly in response to the "free" smartphones they compete with. There's no reason to think they'd keep the original iPad around.
 

elan123

macrumors 6502
Jan 26, 2011
259
0
543.jpg

So, I think the first part is obvious, that the Price will drop once the 2nd gen is released, but: how much will it be?

I'm hoping for $299 for the 16GB :D

That would be great... *crosses fingers*
 

darngooddesign

macrumors G4
Jul 4, 2007
11,276
1,864
Atlanta, GA
Yes, you can. However, that's the only example of Apple ever doing that, and certainly in response to the "free" smartphones they compete with. There's no reason to think they'd keep the original iPad around.

It is a response to competing smartphones, some of which are subsidized, not just free ones.

There is a reason for Apple to do it again. They have to compete against an onslaught of new tablets. The GalaxyTab is the first to be subsidized. Being able to pick up an older iPad for 100 or 150 cheaper than the base iPad2 is an attractive proposition.
 

maflynn

Moderator
Staff member
May 3, 2009
68,681
36,440
Boston
Why does anyone think Apple will keep selling the original iPad as a new product in the US once the next one is released? .
Because apple sells off its inventory in the refurb section. That is apple will continue to sell the iPad 1, after the iPad 2 hits the streets, but only until the existing inventory is exhausted.
 

poloponies

Suspended
May 3, 2010
2,661
1,366
Because apple sells off its inventory in the refurb section. That is apple will continue to sell the iPad 1, after the iPad 2 hits the streets, but only until the existing inventory is exhausted.

The iPad is not a high-inventory item. Apple's inventory at worst is six weeks, but that starts to decline as a product reaches end of life. So as I stated earlier, if the next iPad doesn't roll out internationally, they'll divert any inventory to offshore markets. Apple's not in the discount sales business. The 3GS is a pure profit item for them at this point, with whatever AT&T pays them. There are no such subsidies for the iPad so it's not worth it to Apple to lose margin that heavily.
 

poloponies

Suspended
May 3, 2010
2,661
1,366
The point is that these are newly manufactured previous gen phones being sold at a discount, as opposed to Apple selling leftover inventory.

This was likely a move proposed by AT&T. If they subsidize the 3GS at the same $375 that they do the 4G, it would be insane for Apple to say no. Even if it's only $200 then it's an exceptionally high margin by Apple's standards.

An iPad is a standalone, unsubsidized item. They would be crazy to cut margins and draw sales from their own products.
 

darngooddesign

macrumors G4
Jul 4, 2007
11,276
1,864
Atlanta, GA
This was likely a move proposed by AT&T. If they subsidize the 3GS at the same $375 that they do the 4G, it would be insane for Apple to say no. Even if it's only $200 then it's an exceptionally high margin by Apple's standards.

An iPad is a standalone, unsubsidized item. They would be crazy to cut margins and draw sales from their own products.

I do see your point. My reasoning is that there precedents of Apple still manufacturing a previous gen device. I got my girl a 3G for $99 from ATT when I bought myself a 3GS, the 3GS currently, and the Shuffle with buttons during the button-less Shuffle time period. Currently you can buy subsidized iPads in many countries, a lot of these are countries where there are more than one carriers/sales outlets which carry the iPad. I think that ATT's cost on the current 3GS is less than their cost on the current 4, which is why they can offer it for $150 less than the 4. I predict that Apple will still manufacture the iPad1 and I think ATT will offer it at a subsidized discount. As you said, if the markup is good, Apple would be crazy not to.
 

aristobrat

macrumors G5
Oct 14, 2005
12,285
1,394
I can currently buy an iPhone 3GS for $50 almost 6 months after the 4 was released.
Right, because AT&T bumped up the subsidy to lower the cost to you.

You reallllllly don't think that Apple's selling these 8GB iPhone 3GS to AT&T (who resells them to you) for any less than it did last month, do you?

I can't think of a unsubsidized Apple product that saw a substantial price reduction going from gen 1 to gen 2, without a major loss of components, like the AppleTV.
 

darngooddesign

macrumors G4
Jul 4, 2007
11,276
1,864
Atlanta, GA
Right, because AT&T bumped up the subsidy to lower the cost to you.

You reallllllly don't think that Apple's selling these 8GB iPhone 3GS to AT&T (who resells them to you) for any less than it did last month, do you?

ATT sold the 3GS for 100 since the 4 came out and only recently dropped it down to 50. I think it costs them 100 less to buy the 3GS than the 4. I think ATT is going to sell a subsidized iPad1 as well as the iPad2. They are going to do this to keep people on their network as opposed to moving to Verizon.
 

maflynn

Moderator
Staff member
May 3, 2009
68,681
36,440
Boston
The iPad is not a high-inventory item. Apple's inventory at worst is six weeks, but that starts to decline as a product reaches end of life. So as I stated earlier, if the next iPad doesn't roll out internationally, they'll divert any inventory to offshore markets. Apple's not in the discount sales business. The 3GS is a pure profit item for them at this point, with whatever AT&T pays them. There are no such subsidies for the iPad so it's not worth it to Apple to lose margin that heavily.

I disagree with that assessment. You could make that argument on any Apple product (not a high-inventory item) yet we always see the prior generation ending up in the refurb section after the new version hits the streets.
 

aristobrat

macrumors G5
Oct 14, 2005
12,285
1,394
ATT sold the 3GS for 100 since the 4 came out and only recently dropped it down to 50. I think it costs them 100 less to buy the 3GS than the 4. I think ATT is going to sell a subsidized iPad1 as well as the iPad2. They are going to do this to keep people on their network as opposed to moving to Verizon.
I agree with you that carriers might subsidize the 3G models (in return for you signing a contract guaranteeing them two years of monthly data fees), but IMO that's not the same thing as "Apple dropping prices". i.e. WiFi-only iPads won't be any less expensive. And Apple will still get the full, unsubsidized price for the 3G models. It's the carriers that eat the subsidy in order to offer you a lower price.

Personally, I think it would be cool for 3G iPads if customers had the option to either buy them subsidized (cheaper, with a contract) or at a regular-price (but without a contract). I think a lot of folks liked the idea of being able to turn data on/off by the month, which you can't do when you're in a contract.
 

darngooddesign

macrumors G4
Jul 4, 2007
11,276
1,864
Atlanta, GA
I agree with you that carriers might subsidize the 3G models (in return for you signing a contract guaranteeing them two years of monthly data fees), but IMO that's not the same thing as "Apple dropping prices". i.e. WiFi-only iPads won't be any less expensive. And Apple will still get the full, unsubsidized price for the 3G models. It's the carriers that eat the subsidy in order to offer you a lower price.

What I'm saying is that Apple will still have the 16GB iPad 1 (both flavors) for $100 cheaper than the base level iPad 2. It will cost ATT, for example, less to buy the iPad 1 form Apple than it does the base iPad2 much in the same way that I doubt ATT is paying the same for their 3GSes as their 4s.
 

Mr. Incredible

macrumors 6502a
Original poster
Sep 16, 2010
541
0
Southern California
Why can't the 1st gen be $200 less than the new iPad that's going to be released?

I know that it's not really fair to compare the iPhone to the iPad (apples n oranges), but the iPhone got a price drop cut in half when the newer product comes to market.

I know that $299 isn't half of the $499 price, but just a $100 price reduction isn't really much. I know it's all business and profit, but I'm really hoping for a $299 price.
 

maflynn

Moderator
Staff member
May 3, 2009
68,681
36,440
Boston
Why can't the 1st gen be $200 less than the new iPad that's going to be released?
Because apple could still sell the iPad 1 for more money. I mean you might as well ask why can't apple sell the iPad 1 for $99 when the iPad 2 comes out.
 
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