Do you think that the iPad will be like the iPod touch which came from $400-$200 or do you think that it will be like a mac and never come down in price?
Got a tip for us?
Let us know
Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
iPad prices
- Thread starter samk8000
- Start date
- Sort by reaction score
Steve Jobs said that the 7" iPad is not going to exist — never say never — because the real key thing is the large display.
So if it stays at 9.7", I personally think that it won't go under 399$ — obviously it could keep the same "499$", but when the iPad was announced back in January, I remember that all the hi-tech websites wrote an article about Apple saying: "the iPad price could become even more affordable in the future".
Sorry, but I really don't remember what article was.
So if it stays at 9.7", I personally think that it won't go under 399$ — obviously it could keep the same "499$", but when the iPad was announced back in January, I remember that all the hi-tech websites wrote an article about Apple saying: "the iPad price could become even more affordable in the future".
Sorry, but I really don't remember what article was.
As good as it is, I find the iPad still overpriced. It's still a lot more limited than a dektop or laptop. I know a lot of engineering went into it, but it probably costs Apple only a fraction of what they sell it at.
Consider a recent interview with China's premier by Fareed Zakaria on CNN:
While watching an interview given by CNN's Fareed Zakaria with China's Premier Wen Jiabao on October 3 2010, the Premier made a reference to the cost of making the iPod when speaking (through a translator) about the Chinese and American economies. He stated that he remembered when (in their last interview in 2008) that Fareed Zakaria made an example of the "iPod player in the United States. An iPod player is sold at $299 in the States (in 2008). But the Chinese producer only gets $4 in processing fee." Wow, that is what I call a mark-up.
Apple pays third world countries pennies to crank out these gadgets in their factories, then turns around and hits us with a markup of 1000%. Their workers living at what we'd consider near poverty. That's capitalism.
Last edited:
I would hope they do an iPhone-esque style, where they sell the last year's model for a discounted price. Eg, next year, they have the improved model (webcam, more ram) for the current price of $499 and sell this year's model at $399. I can see this pissing off a bunch of people who bought this for Christmas presents though...
The ipad is selling for 399 at... oh god... i cant remember where it is... target? sams club? SOMEWHERE! but its selling for 399 there 
I think you're taking this out of context.. way out of context. Assuming that number is correct, he's saying that they get paid $4 to assemble the parts of each unit, not that Apple's cost per unit is $4. And let's not discount the engineering and marketing that is behind these things.
Anyways it's easy enough to track down Apple's profit margin and it's not 1000%.
One can quibble if the markup is 1000, 500, or 100 percent. But that's not the point. Apple uses third world cheap labor to sell us their products at very high profit margins. If the iPad was U.S. made at decently paid wages, I would understand and gladly pay the associated cost. But at the pennies per unit to assemble (labor along with factory facilities is usually the majority of the cost), I think it's somewhat overpriced. I already acknowledged that engineering must also be factored in.
http://mashable.com/2010/04/07/isuppli-ipad-cost/
Using these statistics Apple is making about a 50% markup on the Wifi models.
That jumps in the 3G models because the 3G radio IIRC is about 20 bucks. But then we have to consider that Apple probably had to negotiate with AT&T to avoid contract based 3G like the Galaxy Tab.
As much as I would like to see America be more than a consumer nation, I must respectfully disagree:
1) Yes, you (and probably others) would pay a markup for American-made goods. But would everybody else? When Apple is already (called) overpriced, the competition would kill them.
2) How big of a markup would you pay? If Apple has to pay their workers $10-15/hour in place of <$8, the costs will rise dramatically. There's a reason all major corporations outsource their production.
3) Outsourcing of production has proven to be a global economic stimulus. When America was economically young, it made all its profits on exports (primarily cotton until 1860). These benefit all parties, as the young nation generally does not have the resources/funds to industrialize.
The iPad won't drop lower than it is now, It will just get better specs, If it goes higher it's eaten by the MacBooks and if it goes lower it eats the iPods
Apple tends to increase value rather than drop price.
So I could imagine that a wifi only model could fall to $399 while the others remain 3G + wifi starting at $499 and up according to storage + all the other iPad 2 goodness that should arrive.
So I could imagine that a wifi only model could fall to $399 while the others remain 3G + wifi starting at $499 and up according to storage + all the other iPad 2 goodness that should arrive.
The ipad is selling for 399 at... oh god... i cant remember where it is... target? sams club? SOMEWHERE! but its selling for 399 there
T J Maxx I think?
I think you will often find that paying western wages has more effect on profits than it would in reality unit costs.
Or to put it another way.
If you are paying a man to man a machine making 100 parts a hour and you sell those parts for $10 each.
That's $1000 dollars a hour.
If you pay him $1 a hour in wages, or $20 in wages, in reality that cost is minimal to the overall costs.
Of course, when you are making millions of devices, every cent helps.
But if for example (and I'm making these up) It cost Apple $5 in labour to get assembled in China or $30 to get assembled in the USA.
If they are making $100 clear profit on each unit, then there is no REAL reason why they could not get them make in the USA and charge the same price. They would just have to take less profit for the benefit of the people of the country.
Or to put it another way.
If you are paying a man to man a machine making 100 parts a hour and you sell those parts for $10 each.
That's $1000 dollars a hour.
If you pay him $1 a hour in wages, or $20 in wages, in reality that cost is minimal to the overall costs.
Of course, when you are making millions of devices, every cent helps.
But if for example (and I'm making these up) It cost Apple $5 in labour to get assembled in China or $30 to get assembled in the USA.
If they are making $100 clear profit on each unit, then there is no REAL reason why they could not get them make in the USA and charge the same price. They would just have to take less profit for the benefit of the people of the country.
I totally agree.. Price will stay the same but storage, inputs, processors and such will just get better and better.. I'm already in for generation 2
There is no way iPad price will drop unless google and other parties come out with other tablets that can crash iPad sales. iPad is not cheap, but it is not terribly overpriced either. No way, iPad will be 400 dollars to jeopardize ipod touch sales. The price is set. Yo will most likely get updates with more ram, storage and etc. If iPad 2 comes out, then I can see apple will clear out inventory of iPad at 400 dollars price. But, most of times, the price won't drop. Do you see other android tablets and prices? iPad is still better for your money.
That's why both the Galaxy Tab, which is much smaller and therefore should be cheaper to produce, and the Playbook are seriously cheaper than the iPad. Oh wait...
I think most of us should by now know that the cost to make something and the price to the consumer don't generally have a direct correlation.
It all depends how much you wish to grab a market.
Msoft "could" make a tablet and charge under cost price for it blowing Apple away if they put their minds to it.
And recoup their costs on App sales.
Nothings impossible.
If Apple made their gizmos in the United States, well sure the wages will be higher. But looking at it another way, Apple could pay American wages and still make a damn good profit by even keeping the prices of their gadgets as they are now. So instead of 100% profit or better, what's wrong with 50, 60 percent profits? It's all about corporate greed, the more they get the more they want. That's how I see it.
Corporate greed or having a surplus of cash to spend on R&D?
We both know Apple aren't short on cash at the minute but I don't care where my iPad comes from. I'm not American and don't mind if it's not American made.