Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.

poloponies

Suspended
May 3, 2010
2,661
1,366
And what will Apple do as an encore next year? once you lower the price point, you cannot bring it back up. It is easy to say kill the Kindle Fire and Nexus 7, but the same price cutting action will also kill all future tablet profit..Why should Apple do that?

In light of rumors about the Nexus 7" dropping to $99, there is no point whatsoever in Apple's competing at the low end.
 

poloponies

Suspended
May 3, 2010
2,661
1,366
Impossible. Nexus 7 is already being sold at a loss for Google and they sell for 199-249$

Impossible why? It's certainly a rumor that has some life to it.

http://global.christianpost.com/news/google-nexus-7-tablet-price-to-drop-to-99-82936/

People here are all caught up in the "Apple HAS to compete with $199 tablets" furor that they ignore the likelihood that the Google and Amazon would react to any such low-ball competition by going lower. That's a pretty darn good reason why Apple would not enter a race to the bottom.
 

sneaky butcher

macrumors 6502
Nov 8, 2011
345
0
In light of rumors about the Nexus 7" dropping to $99, there is no point whatsoever in Apple's competing at the low end.

i dont think so. Looks like the 32gb will be $249 and the 16gb will drop to $199. They might just drop the 8gb.

if a $99 tablet does exist it must be a completely different spec
 

poloponies

Suspended
May 3, 2010
2,661
1,366
i dont think so. Looks like the 32gb will be $249 and the 16gb will drop to $199. They might just drop the 8gb.

if a $99 tablet does exist it must be a completely different spec

What? Nobody thinks Google and Amazon haven't considered a possible move by someone to enter their price market? They're going for hearts and minds and they have the ability to undercut competition. Like I said, people are so gung-ho about Apple needing to get it's price really low but they ignore the possibility that "low" can always go "lower."
 

HowardSmith

macrumors 6502a
Sep 13, 2012
863
0
In my opinion, the reason all these 7" tables are selling so well is because of the low price point ($199-$249). If Apple wants to play the Apple tax game with the 7" market they are going to fail. I'm sure they will sell some units, but they won't overtake the Nexus or Fire.

I'm waiting to buy a 7" to see Apples price, but if they want more than $300 I'm getting a Nexus. If they start a 7" tablet at $399 I think it's a bit crazy.

I doubt Apple cares about competing with price. It will sell no matter what!
 

Kblakeshot

macrumors member
Apr 2, 2008
89
2
Indiana
People PLEASE get over it. The iPad Mini & iPod Touch are TWO TOTALLY DIFFERENT products & could target different groups or the same group that could buy both.

The price CAN get to the $199-249 range easily. Kill off the competition COMPLETELY and gain more iTune & AppStore purchases. It seems like some of you WANT to pay a premium just because Apple says so.
 

GoodBoy

macrumors 6502
Nov 17, 2007
474
0
The price CAN get to the $199-249 range easily. Kill off the competition COMPLETELY and gain more iTune & AppStore purchases. It seems like some of you WANT to pay a premium just because Apple says so.
Agreed. Apple is at the point where they don't have to sell hardware at premium prices anymore. Releasing cheap tablet is just a perfect way to gain more consumers who buy in AppStore making 30% margin off of each purchase directly to Apple. Same story about Android Market and Google Nexus 7. They even sell it at a price point where they initially loose money only to make even more off your android market purchases. That's the strategy Apple wants to take releasing iPad Mini.
 

GoodBoy

macrumors 6502
Nov 17, 2007
474
0
It would be amazing if they went for a very eye catching price. It would kill the rest of the tablet market stone dead.
Yes, but I fear if Apple decides to sell it at 249$ or even 199$ it's gonna be really crap device possibly worse than iPad 2. Can't wait to see what Apple cooked for us this time ;)
 

kevink2

macrumors 68000
Nov 2, 2008
1,842
294
I would hope that the 4G/LTE model is under $350 for 16GB. Then, depending on other events in November, I may buy a couple as gifts.

For myself, I have the full sized iPad, so wouldn't buy it for myself.
 

poloponies

Suspended
May 3, 2010
2,661
1,366
Agreed. Apple is at the point where they don't have to sell hardware at premium prices anymore. Releasing cheap tablet is just a perfect way to gain more consumers who buy in AppStore making 30% margin off of each purchase directly to Apple. Same story about Android Market and Google Nexus 7. They even sell it at a price point where they initially loose money only to make even more off your android market purchases. That's the strategy Apple wants to take releasing iPad Mini.

You're just wrong. Apple does not make money on content. They may at some future date but so far they haven't. They take about 30% from sales but that goes to administering the sales, servers, marketing, etc. (it costs a lot of money to maintain that infrastructure). They had $6 billion in revenue from the iTunes store last year but no profit to speak of. That's not why they do it. Amazon and Google profit solely from their content sales - that's how their businesses work.
 

750920

Guest
Oct 9, 2012
20
0
If the mini had all the good stuff on it, including camera, 3G (at least) wifi, decent resolution, hopefully, lots of HD space to upgrade to, it will cost. And I will pay. Just to be able to carry it in my pocketbook, it will be like having another computer with me at all times. My new iPad is a bit heavy for that. That will be my "upstairs" computer at home, second tv, too, with the tv app.

t
 

WilliamLondon

macrumors 68000
Dec 8, 2006
1,699
13
Apple's true Goal:

Kill the Kindle Fire and other similar devices. $199-$250 does that (based on specs of course). They don't need to make a boat load off of it, and really the R&D has already been done. Their entry costs are less.

Couldn't be more wrong. First of all Apple isn't powerful enough to kill the Kindle Fire (or any others). Secondly, Amazon's business model is different from Apple's in that they (Amazon) don't make money off the device, they make money off the content users consume on the device, which means, they (Amazon) will lower their price if Apple enters this market. Apple is *not* that stupid to enter a price war, they will lose, and Amazon will win. Apple makes money (high margins!) off the hardware, they don't subsidise devices like Amazon does, so they will not compete head to head against Amazon, and they won't do it with a device that is inferior in specs. Stop talking costs, that's not Apple's market or USP.

Apple does not make money on content.

Exactly! Thank you so much, I read your posts and can't agree more vehemently with what you're saying - someone who understands this whole issue, thank you!
 
Last edited:

Night Spring

macrumors G5
Jul 17, 2008
14,614
7,793
Sorry if someone said this before, it's getting difficult to remember all the twists and turns of this discussion, but what do you think if the mini starts at $350, for 32 GB wifi only, with pretty much the same hardware specs as the 5th gen touch, and the only difference is screen size? And the screen is not retina, but is the same quality as the iPad 2.

I'm thinking if you market this right, it could sell, even if it's not hitting the low price range of the Nexus and the Kindle.
 

xofruitcake

macrumors 6502a
Mar 15, 2012
632
9
In light of rumors about the Nexus 7" dropping to $99, there is no point whatsoever in Apple's competing at the low end.

heh heh , you need to get the rumor straight.... the $99 tablet is a different tablet than Nexus 7 and has not be named yet...

http://www.nbcnews.com/technology/t...have-higher-resolution-display-ipad-1C6358914

Shim told CNET that the new Nexus tablet will be a "high-end device," so think $400 or $500, rather than the sub-$200 range of the Nexus 7 and the rumored $99 Google tablet.
 

BFizzzle

macrumors 68020
May 31, 2010
2,443
0
Austin TX
people shopping for an ipod touch probably won't be cross-shopping that with an ipad mini. some people with $299 to spend will probably buy one device, and some people will probably buy the other.

further, apple's pricing on their product lines don't always make sense. the iphone 5 starts at $199, $100 cheaper than the new ipod touch. does that make a lot of sense? sure, the pricing is subsidized but even the unsubsidized iphone 5 is even more expensive than the much bigger ipad with cellular. does that make sense? and the answer is yes, because people looking to buy a phone are not interested in the tablet, and vice versa.

the iphone doesnt start at $199... It starts at $650..
 

BFizzzle

macrumors 68020
May 31, 2010
2,443
0
Austin TX
And the iPad with cellular starts at $630. So siurpeeman is right, the iPhone is more expensive than the iPad.

right... but the ipad is much bigger.. easier to build. making smaller components is harder. you are fitting all the same tech in a much smaller iphone.. a lot hard to assemble, a lot more expensive to buy parts for etc.


its much cheaper and easier to build an ipad, than an iphone.. thus the prices
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.