why does the 3g ipad cost so much more then wifi


Bytor65

macrumors 6502a
Feb 10, 2010
824
90
Canada
It doesn't add up to an extra $125, or whatever it is they are charging.
Yeah, the rest is called profit margin. Simple solution. Don't buy 3G.

How many people are going to walk around with an iPad anyway. It doesn't fit in your pocket.

I would use it at home 99% of the time and if I brought it somewhere, I would look for a Hotspot if I wanted to surf. You can still read books/comic, listen to music, play games, watch video without a connection.

When you think about it, do you really need 3G?
 

maflynn

Moderator
Staff member
May 3, 2009
63,851
30,367
Boston
How many people are going to walk around with an iPad anyway. It doesn't fit in your pocket.
I dunno, but I'm buying the 3G model so I can use it outside. For instance, I may opt to go to florida next fall and instead of taking my laptop, I'll take the iPad. I believe I should be able to upload my camera pictures for it with the camera kit. I'll be able to watch movies and read books and more importantly surf the web at the resort.

In my travels, I've noticed that more often then not, when a place advertises free internet, its problematic at best. With the 3G option, I'll not have to worry about it.
 

Bytor65

macrumors 6502a
Feb 10, 2010
824
90
Canada
I dunno, but I'm buying the 3G model so I can use it outside. For instance, I may opt to go to florida next fall and instead of taking my laptop, I'll take the iPad. I believe I should be able to upload my camera pictures for it with the camera kit. I'll be able to watch movies and read books and more importantly surf the web at the resort.

In my travels, I've noticed that more often then not, when a place advertises free internet, its problematic at best. With the 3G option, I'll not have to worry about it.
Well different strokes for different folks. I wouldn't spend on a 3g hardware I might use on vacation, because my resorts wifi might be spotty. Usually when I am away on vacation I don't want to spend my time on the internet. If I have to go to the lobby to get good wifi, no biggie.
 

Niiro13

macrumors 68000
Feb 12, 2008
1,717
0
Illinois
It doesn't add up to an extra $125, or whatever it is they are charging.
Pray tell how much the extra R&D, the extra licensing fees, and the extra labor costs so we actually know whether it does add up to the extra $130.

Not to mention the fact that Apple needs to make some sort of money, otherwise what's in it for them?
 

melman101

macrumors 68030
Sep 3, 2009
2,692
271
Yeah, the rest is called profit margin. Simple solution. Don't buy 3G.

How many people are going to walk around with an iPad anyway. It doesn't fit in your pocket.

I would use it at home 99% of the time and if I brought it somewhere, I would look for a Hotspot if I wanted to surf. You can still read books/comic, listen to music, play games, watch video without a connection.

When you think about it, do you really need 3G?
Well, it's not really the 3G that gets me. It's the GPS. And I can see myself using it when I'm going on a trip. Sure I have my iPhone with GPS. But imagine being a passenger driving down the highway with a 10" touch screen showing exactly where you are moving and what's around you and what not.

Just seems too awesome to pass up. Plus the added benefit of 3G and having that everywhere without worrying about whether my iPhone is working properly or what not is amazing. It's not like I have to sign a contract for it. So why not splurge the extra $100. I'm already spending $600 :).
 

madmak

macrumors member
Jul 27, 2009
59
5
It costs more because it has bigger profit margin for Apple.

If you looked at the recent iSuppli cost breakdown for the iPad, the lowest model components cost around 230, the one wit 3G costs 260.

http://news.cnet.com/8301-17938_105-10451132-1.html

Look at how Apple's profit margin scale - the highest end model costs 346 in hardware and retails at 829.
 

Julien

macrumors G4
Jun 30, 2007
11,140
3,828
Atlanta
Pray tell how much the extra R&D, the extra licensing fees, and the extra labor costs so we actually know whether it does add up to the extra $130.

Not to mention the fact that Apple needs to make some sort of money, otherwise what's in it for them?
Also I seem to remember reading that since Apple talked AT&T into giving such a low no contract price that they were probably getting about $30 per 3G iPad.
 

dgree03

macrumors 65816
Jan 8, 2009
1,176
0
Its because ATT is getting kick backs... Do you really believe that they are going to charge laptops $60 for data connect, and let a "laptopesque" device only do it for $30 a month? ATT is getting a cut, plan and simple
 

jb1280

macrumors 6502a
Jan 13, 2009
813
25
why does Dell charge $125 for 3G on a netbook?
why does HP charge $125 for 3G on a netbook?
 

marksman

macrumors 603
Jun 4, 2007
5,763
5
Because people value the ability to use 3G over just wifi. Thus apple is charging what people will pay for, to add that feature.

Why does the extreme audio system cost 1795 more in the car you just bought? Its parts are only worth $300? Because people will pay for it.

Apple's pricing structure is set up to make money, and they are very good at making profit on the things users will value the most. Memory and having 3G capabilities. These prices allow them to sell the base model for 499. and still make a good chunk of money overall.

What it costs to put a 3G radio in something is irrelevant. You don't sell things for what it cost you, you sell things for what people will pay for them.

Personally I think I will buy the base model first and see how things shake out. Then upgrade later on and give my fist iPad to someone else. Although at this point I am not 100% certain I will be getting one right away, but I suspect by at least the end of this year.
 

goobot

macrumors 603
Jun 26, 2009
5,545
1,898
long island NY
Its because ATT is getting kick backs... Do you really believe that they are going to charge laptops $60 for data connect, and let a "laptopesque" device only do it for $30 a month? ATT is getting a cut, plan and simple
i think this is possiable
 

marksman

macrumors 603
Jun 4, 2007
5,763
5
I also agree that it is possible that Apple is giving kickbacks on these devices.. but not sure.

I do remember around launch time that someone said the reason why AT&T won the contract for the iPad was because they had the most aggressive pricing structure.
 

agkm800

macrumors 6502a
Jun 18, 2009
672
4
Apple could charge less and still make a decent profit. Apple charges that much because people (a.k.a. suckers) will pay the (relatively) high price. So, why wouldn't Apple in order to maximize the profit.