Apple will continue to sell 16GB Wi-Fi iPad 2 for $399, 3G model for $529

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Comments

  • quinneyquinney Posts: 2,435member
    Quote:
    Originally Posted by LMGS View Post


    WHY does the upgrade to 4G LTE, STILL cost $130???



    You would think that the cost for these would have come down by now...



    Apparently Moore's Law does not apply to IP licensing.
  • solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by quinney View Post


    Apparently Moore's Law does not apply to IP licensing.



    LOL Awesome!



    Not to mention it's not just the same capabilities but adding more than 10x the max theoretical speed with a lot new tech in a new Qualcomm chip. I'm glad they added it to the iPad before the iPhone for the first time ever so we can vet baseband firmware issues 6 months before the iPhone launches.
  • lvidallvidal Posts: 154member
    A more competitive would be $299, but since there's no real competitive devices for iPad...
  • lvidallvidal Posts: 154member
    Quote:
    Originally Posted by Tallest Skil View Post


    Nah, it'll just look like the iPod touch page does now.



    I just love the decision, I hate model numbers or names, and Apple doesn't need them.
  • cy_starkmancy_starkman Posts: 488member
    Quote:
    Originally Posted by lvidal View Post


    I just love the decision, I hate model numbers or names, and Apple doesn't need them.



    True, in fact I have been surprised they have used model numbers for the iPhone and iPad, they never called the iMac, the iMac 5, it has always simply been iMac.
  • eckingecking Posts: 1,588member
    Who in the their right mind wouldn't just save up the extra $100 to get the 3rd gen iPad vs an iPad 2? The iPad 2 should be 8gb at $299 and just destroy the low end market segment.
  • slurpyslurpy Posts: 4,537member
    Quote:
    Originally Posted by ecking View Post


    Who in the their right mind wouldn't just save up the extra $100 to get the 3rd gen iPad vs an iPad 2? The iPad 2 should be 8gb at $299 and just destroy the low end market segment.



    It would also cannibalize sales of the new iPad. I think this is the main reason it wasn't priced lower. Apple could have easily priced it at $299 and wiped everyone else out of the game. But they'd prefer people opt for the new model, which is understandable.
  • solipsismxsolipsismx Posts: 19,566member
    Quote:
    Originally Posted by ecking View Post


    Who in the their right mind wouldn't just save up the extra $100 to get the 3rd gen iPad vs an iPad 2? The iPad 2 should be 8gb at $299 and just destroy the low end market segment.



    You can apply the same logic to any product but us that a smart business move? I would surely pull some sale from the Kindle Fire but it'd still 50% more expensive so why not sell the iPad 2 for $199. Or how about $149 to completely undercut the completion? Or what about lowering the price of the iPad 3 acros the board?



    In reality you want to maximize profits so if you know you'll sell the lot at $399 lowering it to $299 reduces net profit by $100 x n, where n is the number of units sold.
  • asdasdasdasd Posts: 4,299member
    Quote:
    Originally Posted by ecking View Post


    Who in the their right mind wouldn't just save up the extra $100 to get the 3rd gen iPad vs an iPad 2? The iPad 2 should be 8gb at $299 and just destroy the low end market segment.



    Quote:
    Originally Posted by Slurpy View Post


    It would also cannibalize sales of the new iPad. I think this is the main reason it wasn't priced lower. Apple could have easily priced it at $299 and wiped everyone else out of the game. But they'd prefer people opt for the new model, which is understandable.





    Fair point.



    Quote:
    Originally Posted by SolipsismX View Post


    You can apply the same logic to any product but us that a smart business move? I would surely pull some sale from the Kindle Fire but it'd still 50% more expensive so why not sell the iPad 2 for $199. Or how about $149 to completely undercut the completion? Or what about lowering the price of the iPad 3 acros the board?



    In reality you want to maximize profits so if you know you'll sell the lot at $399 lowering it to $299 reduces net profit by $100 x n, where n is the number of units sold.



    It might well destroy margins entirely.





    There is another point though. If you reduce the old model's price you reduce the sales price of all old models significantly but Apple is hoping it's entire installed base will upgrade. Think about the cost of any electronic device ( or other device) you can sell on, the cost of an upgrade is the depreciation of the last device. At the moment the cost of updating from an iPad 2 to an iPad (3) is about $200, selling the older model cheaper would increase that differential.



    ( This low cost of an upgrade explains why these guys will fly off the shelf).
  • aizmovaizmov Posts: 987member
    Apple should have priced it even lower. $329 would have made it more appealing.
  • tallest skiltallest skil Posts: 40,379member
    Quote:
    Originally Posted by Aizmov View Post


    Apple should have priced it even lower. $329 would have made it more appealing.



    It flew off store shelves at $499. It doesn't need to be cheaper. They're not trying to sell the iPad 2, they're trying to sell the iPad 3.
  • taugust04taugust04 Posts: 43member
    Quote:
    Originally Posted by Aizmov View Post


    Apple should have priced it even lower. $329 would have made it more appealing.



    I feel the iPad 2 pricing is less about Apple and more about competitors. The cost to undercut Apple's prices is now $100 less than before. This is going to make it increasingly difficult to compete in the tablet space just on price, especially since the competition hasn't really caught up to the iPad 2 yet, never mind the new iPad.
  • carlosviscarracarlosviscarra Posts: 37member
    Quote:
    Originally Posted by rednival View Post


    Are you kidding? The analyst I saw said they were amazed the prices didn't go up. The iPad now has a higher resolution screen than my Macbook Pro, a quad core processor, and an 1080P camcorder. Plus what you are talking about is new technology. This is the first iPad with 4G/LTE.



    I am fairly sure Apple's margins will be DOWN on the new iPad.



    I'm shocked these Apple haters continue polluting the internt's blogs with twisted and negatively spun facts.



    About the margins... I was really wondering about that because it also seems they have a newer or newest 4G chip because if I understood the presentation correctly it shows that this new chip has more bands than any other on the market! Pus they would have to find a way to get the same am punt of juice with all see new juice-hogging features.



    That new screen must be a power thirsty touchscreen, then there is the quad-core CPU, and the 4G chip? And they. Kept the same 10 hour battery life?



    Apple really is doing something right... I'm willing to bet Sammy and all the other copycats are popping their pants right now fiercely working on yet again copying Apple...y didn't make much of a splash meaning they gave it only a m inordinate spec boost p lus cameras and a new design... This year the skipped the new design and beefed up the entire package!



    But I'm willing to bet they paid billions up front in order to get the lowest price on the parts/components. Tim cook is a genius supply chain, well-genius!



    I'd like to think they. Kept the same margins so they can keep us Apple-loyalties happy and the competition crying over not being able to duplicate the success despite being shown how it's done!!, just goes to show they literally, "just don't get it"!!!!!!!!!!!



    With the iPad 2 the
  • carlosviscarracarlosviscarra Posts: 37member
    Quote:
    Originally Posted by SolipsismX View Post


    I hope so, but I can see how the iPhone 4 might live on as a "free" 8GB device come Autumn. People buying that model aren't caring about capacity as much and from what I've seen in the smartphone market 8GB is still holding strong as a very common capacity.



    It's really amazing that Apple was able to secure the top three selling phones spot in the smartphone market.... The iPhone 3GS was the third or fourth best selling hone at Ll major carriers tht sold it!!! And it is 3 years old now!



    Now just imagine what the market share pols like when Apple offer the iPhone 4 and sells it for FREE!!!! I think competitors will be in for a shock when the top 3 selling smartphones are all iPhones and I have a feeling at the iPhone 4 will sell absurd amounts of handsets once it's offered for free... I can't imagine anybody, unless they re totally broke hardcore geeks, actually choosing another phone if they. Ar shopping for a free smartphone!



    In any case... GO APPLE!!!!!
  • carlosviscarracarlosviscarra Posts: 37member
    Quote:
    Originally Posted by jragosta View Post


    This is not technically a quad core processor. It has a quad core GPU and a dual core CPU. The A5X would most commonly be referred to as a dual core processor because of the CPU, but I guess you could technically call it a hexa-core processor if you wanted to count both GPU and CPU.



    I don't know about the margins. Their cost for most of the components (such as storage) have been dropping and they may have dropped enough to make up for the more expensive screen. Note, also, that 'margin' isn't a fixed number. For most Apple products, the margin at release is at one level, but the margin increases over time until they release a new model.



    That Apple will undoubtedly for sure sell more non-wifi-only units this time around because they are offering 4G...



    Most people who were wiling to shell out cash for an iPad with a cellular connection often opted for a mobile hotspot that was 4G... Or aka LTE.



    Now I think if Apple did have to settle for slightly lower margins then they might be banking on more people opting for the 4G versions which also undoubtedly have higher margins!



    In any case...



    GO APPLE!!!! WooHoo!!



    Beat them copycats I not the ground where they belong!!!
  • carlosviscarracarlosviscarra Posts: 37member
    Quote:
    Originally Posted by taugust04 View Post


    I feel the iPad 2 pricing is less about Apple and more about competitors. The cost to undercut Apple's prices is now $100 less than before. This is going to make it increasingly difficult to compete in the tablet space just on price, especially since the competition hasn't really caught up to the iPad 2 yet, never mind the new iPad.



    You just made a very nice observation here....



    The major of tablet copycats R struggling to match the iPads current prie and feature set...



    Amazon realized Apple's advantages and didn't even bother battling for tablet profits... It's possibly even taking a loss or no margin a all just to be able to sell more content...

    Now there is a sensible competitor... Good Ol Sammy just figure it would cop Apple in the most literal sense of the word and as pan analogy, copied Apple like a photo copy!



    And even when most or all tablet copycats are barely catching up or even gaining somoe ground in hopes of even getting close.... Here comes Apple with the new iPad and just destroys any little hopes or dreams of being a player in the tablet market.
  • carlosviscarracarlosviscarra Posts: 37member
    Quote:
    Originally Posted by Tallest Skil View Post


    It flew off store shelves at $499. It doesn't need to be cheaper. They're not trying to sell the iPad 2, they're trying to sell the iPad 3.



    Apple could easily claim that any market share they lost, or decreased percentage of overall tablet market could easily be accredited to the HP TouchPad, RIM Playbook, or even Sammy tabs which had to slash prices by HALF OR MORE just to the able to get rid of inventory.



    Now I'm no margins genius but I know that if these guys were hoping for anywhere between 10-40 percent margins and they slash prices by half or more then they not only lost their expected profit margins but also took in a significant loss as these tablets cost more than 50 percent of their retail JUST in parts or components and not even considering R&D and manufacturing and shipping and receiving and supply chain...



    Tis yer. I think Apple will reclaim that market share they lost because that is not a sustainable business model!!!



    Nobody can lose that much cash and just say "hey let's do it again" without answering to angry shareholders!!,
  • relicrelic Posts: 4,735member
    Quote:
    Originally Posted by Ireland View Post


    Apple likes to nickel and dime its customers like that, but the strategy clearly works given it's not the biggest company in the world.



    What are you talking about Apple is enormous in every definition. Size of total land owned, employees, sales, profit what would you constitute as big now and days, GE?
  • asdasdasdasd Posts: 4,299member
    Quote:
    Originally Posted by Relic View Post


    What are you talking about Apple is enormous in every definition. Size of total land owned, employees, sales, profit what would you constitute as big now and days, GE?



    I'd guess - just a radical thought here - that given the rest of the context of Ireland's text not was a typo for now.
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