Should Apple reconsider its pricing strategy for older iPads?

Discussion in 'iPad' started by GoingDark, Jan 15, 2019.

  1. GoingDark macrumors 6502

    Joined:
    Nov 2, 2013
    #1
    I want to be clear that I’m not what you would normally consider a “price-sensitive” consumer. I’m OK with paying a premium if I think it’s worth it. As an example, I bought the iPhone X at full price the day it came out, opted for the more expensive 256GB model, and paid extra for AppleCare+. However, when it comes to iPads, I feel they hold their value and use a lot longer than iPhones and so I’m not as tempted to buy the latest and greatest. I even have an iPad mini 2 that I’ve been using for nearly 6 years that only recently started showing its age and feeling noticeably slow.

    After the new 2018 iPad Pros were announced I was looking into upgrading and potentially even retiring my 13” retina MacBook Pro (which also still works great nearly 5 years later).
    For the iPad I wanted - 11” cellular, 256GB, plus keyboard case and pencil - I was looking at over $2000 Canadian including taxes (around $1500 USD). I’m not questioning that price - I’m sure for people who want the latest and greatest, it’s fair and justified (and it’s close to what I paid for my iPhone X). But I knew it wasn’t what I wanted to spend.

    The real sticker shock came when I priced out a previous-gen iPad Pro - 10.5” cellular, 64GB, keyboard case & pencil - which came to almost $1500 CAD (around $1130 USD). I ended up buying that exact same package used on eBay for half the price ($755 CAD/$570 USD).

    I see lots of these listings for around the same price (~$600 USD for 64GB cellular + keyboard + pencil). I would have happily paid a few hundred more, maybe up to around $800-850 USD for the same package new, and maybe would have even added another $100 on top of that for AppleCare+. My question is, do you think Apple is missing out on sales from people who would have bought new (previous-gen) iPads by pricing them at nearly double what they go for on the used market? In my situation, Apple could have made anywhere between $800-$900 USD from me, but instead they’re making $0 and that money is instead going to some eBay seller.

    I know the biggest argument from some people will be that if they price the last-gen models too low, it’ll cannibalize sales of the latest generation. I don’t think that’s the case - I think people who want the absolute newest model are willing to pay a premium and no amount of discounting of the last-gen models will entice them. What do you think, 11” Pro owners? Is there a price difference at which you would have opted for the older 10.5” or would you have gone 11” regardless?
     
  2. kazmac macrumors 604

    kazmac

    Joined:
    Mar 24, 2010
    Location:
    On the silver scream
    #2
    I am not sure how many would pay that premium: if you make money with your tech, that’s one thing. If not, IDK.

    Speaking only for myself: My issue is the build quality is tanking hard (irresponsible touch problems have sadly existed on the 12.9” iPPs since launch), and bending, white spots. Add Apple’s response in regard to the bending issue: none of this should be happening, and not for the prices Apple are asking. Even if I did not take a hit of $1K from the 2017 12.9” that developed irresponsible touch issues which Apple wouldn’t swap -even with AC-, I’d still feel irked by Apple’s product and their lack of QC.

    Yeah, I was stunned that 2017 put me out almost $1500, but now I’ve adapted to drawing on the 2018 iPad and honestly, outside of memory hiccups and the pencil not being as responsive, I am glad I only pad $450 for it. So I’ll continue to but the cheapest iPad that works with the pencil, Procreate & Sketches Pro.

    Going forward I’d pay $800 for an iPP, pencil and AC+, but not more. That has everything to do with build quality and Apple being... a bit rotten about things.

    Of course, everyone is different, just my perspective.
     
  3. casperes1996 macrumors 68040

    casperes1996

    Joined:
    Jan 26, 2014
    Location:
    Horsens, Denmark
    #3
    I don't think Apple wants you to buy the last gen Pro. I think their line is that if you don't want to pay the price for Pro, get the latest generation regular iPad which is loads cheaper but on their latest technologies.
     
  4. GoingDark thread starter macrumors 6502

    Joined:
    Nov 2, 2013
    #4
    If they don't want you to buy the last gen Pro, then why still sell it? Why not discontinue it like the 9.7" Pro? It's not like they're hiding it - it has prominent placement both on the website and in physical stores.
     
  5. casperes1996 macrumors 68040

    casperes1996

    Joined:
    Jan 26, 2014
    Location:
    Horsens, Denmark
    #5
    Well, it still serves a market that they want to get money from, but I think weighing the costs of manufacturing and the price they can sell it for and all that they want to make it the least attractive deal. They still want to cater to the market, but would by far prefer that market to go to one of the other options
    That's my interpretation anyhow
     

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