Unverified iPad 3 Rumors: Price List Suggests Price Hike Over iPad 2, Shipments to U.S. En Route?

[yg17]

Not possible because they still must go through customs in AK or IN. They can't just be flown directly to these cities.




You made me laugh with your "you don't know much about logistics" comment. Based on what you wrote apparently all you know about the subject is what you learn from a UPS ad. i

It does matter because FedEx and UPS can only fly into one of their hubs set up for incoming international packages. Uncle Sam wants a peek. Those hubs are in Anchorage, Indianapolis, Lexington, and Memphis. From there they are routed to the final designation city.

Also, the service Apple uses gives FedEx and UPS flexibility as to when they put them on a plane - typically last in. This gets Apple the best rate possible. Apple isn't going to waste $ to "rush" product to the U.S. two weeks before launch. It's going to save every last nickel to get them here "just in time". That's logistics.

UPS and FedEx aren't the only cargo carriers out there.

If you have enough money, and Apple does, you could charter a cargo aircraft to fly to just about anywhere you want.

Even if the plane has to stop in ANC for customs, read the article: "The six flights, which are taking place between yesterday and March 9, are said to be part of itineraries moving iPad 3 units to the United States, with three flights ultimately headed to Chicago's O'Hare airport, two headed to Los Angeles, and one headed to New York's Kennedy airport."

That's where the plane's final destination might be after a customs and refueling stop in ANC.

 

[MisterK]

There's no way Apple would do a price hike. Their margins are too large and the momentum of iPad sales too fast for them to hobble their adoption.

It's true that the iPad has no serious competition yet, but Apple isn't competing with what's out right now; they're competing with what's going to come out (at much lower prices from an increasingly savvy competition) during the lifespan of the iPad 3. I'm as big an Apple fan as anyone, but I don't think it's beyond Google or Microsoft to "get it" and deliver something elegant, powerful, and with an ecosystem. As much as some hate to admit it, these companies are all capable of learning and adapting.

Apple doesn't want to price themselves into the same position they did during the 90s with Macs, when they had both lesser market share, but also far less dollar share. The iPad's success is not a guarantee of future success. Not when, for most people, an inferior product can still be good enough or even, for some, indistinguishable from Apple's offerings.

I believe Apple will keep the iPad 2 around at a lower price, but I also think that there's no way the iPad 3 will be any more expensive than the current price range.

 

[D.T.]

Or we get a refreshed iPad2 for 499 with the A5X, and iPad3 with A6 for 579

maybe they will release

an iPad 2S with processor A5X starting from 499$

and

an iPad 3 with A6 starting from 579$

You guys had the same thought at roughly the same minute

It’s interesting too. Bump the iPad2 specs, keep the price, and reserve the A6 for the 3/Pro.

Since 16 GB only leaves about 14 GB of usable space, the 16 GB seems like a terrible idea, especially with Apple pushing these new multimedia textbooks that weigh in at 2-3 GB+ each. And don't forget many apps will be providing retina artwork that will take up 4X the storage space too, as well as iOS's own graphic assets, so 16 (14 or less) GB seems really small on this device.

Yeah, 16GB devices, especially ones capable of consuming HD content, complex rich media like the new iBooks, etc., are starting to be less and less viable ... and streaming/cloud access just isn’t an option in many cases. I’ve actually had to start cycling content on/off our iPad (v1) 16GB. Just this morning Cars 2 had to be swapped out for Puss in Boots

 

[arcite]

I still think that my theory is right, especially with this post and the A6 post on the homepage.

We'll see an iPad 2 AND an iPad 3. The 2 will be running an 'A5.5' basically the A5 with a speedbump. It'll be the $399 entry model.

The iPad 3 will use the A6 and a retina display and start at $499.

This makes sense to me, after all everyone won't need nor desire a 'retina' display.

Oh, and I'm sure 'retina' ready Apps will cost more too!

Hey, its Apple economics.

 

[Tom8]

I've never understood why being Chinese suddenly gives rumours much more credence. I could knock something like this up in about 5 minutes, but because it would be in english, it would dismissed straight away.


My guess is that it's a fake.

 

[ucantgetridofme]

Actually quite the opposite. The 2 will drop down to $349 entry price and totally eliminate any reason to buy a $250 tablet that does much less.

Apple is not going to drop prices on the ipad2 . They will continue to squeeze every penny they can out of their obedient customers like LTD.

 

[darryljones]

Prices of all goods are starting to go up. Get used to it. Thank Bernanke too.

 

[AppliedMicro]

I've never understood why being Chinese suddenly gives rumours much more credence. I could knock something like this up in about 5 minutes, but because it would be in english, it would dismissed straight away.

Chances are you live much nearer to where the things are manufactured, if you are Chinese.

 

[derek1984]

I actually hope they DO hike up the price. From someone who passed on the 1 and 2, I was afraid I would have to compete with those who already own an iPad, while I was patient and waited it out until they got it right. Hiking up the price might deter some of those that would've been my competition. Better odds for me to get one on launch day and I deserve it since I waited this long without an iPad.

 

[rmwebs]

I don't see them remaking the 2 as a 2, why waste the money when they can just sell the 32GB iPad 2 for a lower price?

I would agree with you had we not seen evidence of an updated A5 in addition to the A6. Heck it may not be called the 2 but it would be a cheaper version of the 3.

Maybe we'll see a 3 and a 3 at the same time...who knows. Apple certainly aren't going to drop the $399 model, and I find it hard to believe that we'll have a retina model at that price.

 

[darryljones]

I've never understood why being Chinese suddenly gives rumours much more credence. I could knock something like this up in about 5 minutes, but because it would be in english, it would dismissed straight away.


My guess is that it's a fake.

It seems you are concluding based on emotions of not wanting the price hike. Even though the price hike makes complete sense from all standpoints.

 

[r.j.s]

I would agree with you had we not seen evidence of an updated A5 in addition to the A6. Heck it may not be called the 2 but it would be a cheaper version of the 3.

Maybe we'll see a 3 and a 3 at the same time...who knows. Apple certainly aren't going to drop the $399 model, and I find it hard to believe that we'll have a retina model at that price.

We saw a new design for a iPhone case last year too. The A6 may not be ready yet, but could still be in testing.

I just don't see why they would retool the iPad 2, when in the past, they just kept selling the older version (3GS and iPhone 4).

 

[Intarweb]

There's zero possibility of the iPad 2 remaining at the $499 price point.

 

[Tom8]

Chances are you live much nearer to where the things are manufactured, if you are Chinese.

And then the chances are, you live a hell of a long way from where the device is designed and the price is decided, California.

 

[aperry]

I sold my iPad 2 last week and I have $500 burning a hole in my pocket in anticipation of the iPad 3. If all of the rumors are true, including this one, I just don't know if I'll pull the trigger. Hopefully they have more to show off than a retina display, better camera, and some sort of faster processor (all of which apparently adds thickness).

 

[Ugg]

Not possible because they still must go through customs in AK or IN. They can't just be flown directly to these cities.

You made me laugh with your "you don't know much about logistics" comment. Based on what you wrote apparently all you know about the subject is what you learn from a UPS ad. i

It does matter because FedEx and UPS can only fly into one of their hubs set up for incoming international packages. Uncle Sam wants a peek. Those hubs are in Anchorage, Indianapolis, Lexington, and Memphis. From there they are routed to the final designation city.

Also, the service Apple uses gives FedEx and UPS flexibility as to when they put them on a plane - typically last in. This gets Apple the best rate possible. Apple isn't going to waste $ to "rush" product to the U.S. two weeks before launch. It's going to save every last nickel to get them here "just in time". That's logistics.

Charter flights can go anywhere and with advance arrangements can be cleared anywhere there's a US customs office. That's a no brainer for anyone who works in logistics. Apple's pre launch products have always been held in secure locations until the day before launch. I'm not sure how many iPads fit on a Boeing 747 freighter but funneling three freighters or more, into Memphis and then swamping all of FedEx' regular flights doesn't make sense and doesn't supply the pre launch security that Apple requires.

Also, iPad3s have been manufactured for the last month or so which is going to cause storage problems in China. At some point, they're going to have to ship them out, even if it means keeping them in storage for awhile. This is actually a huge flaw in Apple's strategy. They are forced to build up an enormous stockpile in order to meet demand. Somebody is obviously paying for the carrying charges of that inventory and I doubt it's Foxconn.

With only nine days before the product announcement, it's not by any means too early to start positioning product.

 

[Tom8]

It seems you are concluding based on emotions of not wanting the price hike. Even though the price hike makes complete sense from all standpoints.

So, how does the price hike make sense from the customers' standpoint?

 

[LoganT]

I was listening to an episode of The Talk Show with Dan Benjamin and John Gruber. According to John Gruber, the 499 dollar price point for the iPad is something that Tim Cook really pushed for.

 

[darryljones]

So, how does the price hike make sense from the customers' standpoint?

It only has to make sense from a market standpoint see my previous posts.

 

[cameronjpu]

Once you break that $500 price barrier you may as well look into getting a full fledged machine a la Macbook Air or 13" Macbook Pro...

You'd better tell Apple that, because they sell 6 models, and all cost more than $500. What, you don't pay sales tax on the planet you live on?

 

[Prohapps]

If there's a price hike there better be a good reason for this... Not just the Retina Display...

I mean, more Ram, Retina Display, 8MPx camera, Wifi 802.11ac and be 20% lighter...

They are making enough profit already, time to give back to the user...

 

[Rogifan]

If these price increases are accurate then I guess I'm keeping my iPad 2.

 

[JAT]

I sold my iPad 2 last week and I have $500 burning a hole in my pocket in anticipation of the iPad 3. If all of the rumors are true, including this one, I just don't know if I'll pull the trigger. Hopefully they have more to show off than a retina display, better camera, and some sort of faster processor (all of which apparently adds thickness).

Maybe you should save another $100, just in case.

 

[AppliedMicro]

I mean... Where do you expect better rumours about the next iPad to come from, if not from the facturies where they are (supposedly) made?

 

[Peace]

You'd better tell Apple that, because they sell 6 models, and all cost more than $500. What, you don't pay sales tax on the planet you live on?

We don't pay sales tax on planet Oregon.