Study suggests $600 mass-market sweet spot for Apple tablet

***AppleInsider*** · 10-26-2009, 12:56 PM

While most Mac users would have no problem paying more than $600 for Apple's long-rumored tablet, most PC users would not consider hardware above that price, a new study suggests.

In a survey of 753 customers, Retrevo.com found that 64 percent of PC users accustomed to low-cost machines would only buy the Apple tablet if it costs less than $600. But 27 percent of Mac users would pay between $600 and $800, and 41 percent said they would spend more than $800 on the still-unseen hardware.

In conclusions drawn from the Gadgetology survey, the company said that the iPhone has found success by appealing to users beyond the Mac market, and the tablet must do the same. The study also assumed that those considering the pruchase of a netbook would be most interested in the touchscreen device.

"Apple had better hurry up if they want to capture any of the netbook market because many consumers, both Mac and PC owners, have already bought a netbook and many more plan on buying one soon," the study said.

The survey found that 37 percent of Mac users plan to buy a netbook within the next year, and 36 percent of PC users plan to do the same. Among iPhone users, 40 percent said they were eyeing a netbook purchase. A study from the company in August found that school shoppers chose netbooks over Macs.

In other Apple tablet news, Bill Keller, executive editor of The New York Times, referenced Apple's forthcoming touchscreen device in a presentation to the newspaper's digital staff. Keller said that print publications would need to embrace new hardware, like the "impending Apple slate," if they want to succeed. His comment, in full, was as follows:

"We need to figure out the right journalistic product to deliver to mobile platforms and devices. I'm hoping we can get the newsroom more actively involved in the challenge of delivering our best journalism in the form of Times Reader, iPhone apps, WAP, or the impending Apple slate, or whatever comes after that."

Apple's tablet device is expected to arrive in the first quarter of 2010 with a 10-inch screen and 3G connectivity. Recent rumors have pegged the multifunction device as a potential e-reader, and officials with The New York Times and other publications are alleged to have had discussions with Apple about making their content available for the hardware.

[ View this article at AppleInsider.com ]

g5man · 10-26-2009, 01:07 PM

Quote:

Originally Posted by AppleInsider

While most Mac users would have no problem paying more than $600 for Apple's long-rumored tablet, most PC users would not consider hardware above that price, a new study suggests.

In a survey of 753 customers, Retrevo.com found that 64 percent of PC users accustomed to low-cost machines would only buy the Apple tablet if it costs less than $600. But 27 percent of Mac users would pay between $600 and $800, and 41 percent said they would spend more than $800 on the still-unseen hardware.

In conclusions drawn from the Gadgetology survey, the company said that the iPhone has found success by appealing to users beyond the Mac market, and the tablet must do the same. The study also assumed that those considering the pruchase of a netbook would be most interested in the touchscreen device.

"Apple had better hurry up if they want to capture any of the netbook market because many consumers, both Mac and PC owners, have already bought a netbook and many more plan on buying one soon," the study said.

The survey found that 37 percent of Mac users plan to buy a netbook within the next year, and 36 percent of PC users plan to do the same. Among iPhone users, 40 percent said they were eyeing a netbook purchase. A study from the company in August found that school shoppers chose netbooks over Macs.

In other Apple tablet news, Bill Keller, executive editor of The New York Times, referenced Apple's forthcoming touchscreen device in a presentation to the newspaper's digital staff. Keller said that print publications would need to embrace new hardware, like the "impending Apple slate," if they want to succeed. His comment, in full, was as follows:

"We need to figure out the right journalistic product to deliver to mobile platforms and devices. I'm hoping we can get the newsroom more actively involved in the challenge of delivering our best journalism in the form of Times Reader, iPhone apps, WAP, or the impending Apple slate, or whatever comes after that."

Apple's tablet device is expected to arrive in the first quarter of 2010 with a 10-inch screen and 3G connectivity. Recent rumors have pegged the multifunction device as a potential e-reader, and officials with The New York Times and other publications are alleged to have had discussions with Apple about making their content available for the hardware.

[ View this article at AppleInsider.com ]

First

This is deja vu from pre-iPHone hype. This bodes well for the iTablet and Apple will sell millions next year.

Intense · 10-26-2009, 01:07 PM

to get an iphone 3Gs, it would cost me $799 Canadian dollars plus taxes since I had signed a three contract a month before the release of the original iPhone. Now, for the apple tablet to cost between 700 to 800 US dollars, that's approximately $200 more than the iPhone

hmmmm .... I am looking forward to seeing the price and the features of the apple's new touch screen device

mstone · 10-26-2009, 01:08 PM

I'd love a tablet just to have the latest and greatest. But I already have an iPhone and a MBP so I don't know that I really need one. That would be a bit much even for me. I'm afraid I would be lugging around all three devices.

digitalclips · 10-26-2009, 01:17 PM

Quote:

Originally Posted by g5man

First

This is deja vu from pre-iPHone hype. This bodes well for the iTablet and Apple will sell millions next year.

Next time you rush to be first try not repeating the entire article please

digitalclips · 10-26-2009, 01:18 PM

Quote:

Originally Posted by mstone

I'd love a tablet just to have the latest and greatest. But I already have an iPhone and a MBP so I don't know that I really need one. That would be a bit much even for me. I'm afraid I would be lugging around all three devices.

You need one because it helps my AAPL stock, in fact you need several ...

vinney57 · 10-26-2009, 01:19 PM

A survey on price before the device is actually seen is meaningless. Self-justifying noise and nonsense.

I'm betting it's more that $800 on release.

Superbass · 10-26-2009, 01:25 PM

$600 for the new 17" iPhone? Count me in!

Aizmov · 10-26-2009, 01:26 PM

Anywhere up to $899 is fine by me. Looking forward to the tablet

Actually, even if it goes beyond $999 I'll buy, but it has to be really good.

Superbass · 10-26-2009, 01:27 PM

Quote:

Originally Posted by Aizmov

Anywhere up to $899 is fine by me. Looking forward to the tablet

You better hope it isn't $900.

NeilM · 10-26-2009, 01:31 PM

The idea of polling people about how much they'd pay for a device of completely unknown capabilities and uncertain existence is simply ridiculous. Attempting to analyze the results of such a poll is doubly ridiculous.

Superbass · 10-26-2009, 01:32 PM

Quote:

Originally Posted by NeilM

The idea of polling people about how much they'd pay for a device of completely unknown capabilities and uncertain existence is simply ridiculous. Attempting to analyze the results of such a poll is doubly ridiculous.

How about analyzing the analysis of such a ridiculous poll. Does that make you triply ridiculous?

Our doubly doubly ridiculous (quadruply ridiculous)?

mrr · 10-26-2009, 01:34 PM

Apple ALWAYS releases hardware HIGHER than the prevailing rumors. I remember when the Mac128 was rumored to be $999 to compete with the IBM Peanut, and then arrived at $2495!

Personally, I would be happier with a 10" MacBook AIR, or just an EXTERNAL BLUETOOTH KEYBOARD for the iPhone!

Dr Millmoss · 10-26-2009, 01:36 PM

What a pointless study. Asking people how much they'd pay for a product that doesn't exist, and nobody has any idea what it will look like, what it can do, or how it does it, is utterly ridiculous. Apple should ignore this study, and I'm sure they will.

cmf2 · 10-26-2009, 01:37 PM

We don't even know what an Apple tablet will be capable of, of how big it will be so the $600 sweet spot could be off a bit from the actual one. Although given the rumored capabilities and size, I think it might not be that far off. Can Apple sell a tablet at that price, with a desirable profit? I doubt it. Perhaps $600 subsidized wouldn't be out of the realm of possibilities though. From my experience, most people don't really care about signing a contract and only look at the initial purchase price so I think this studies $600 sweet spot would be approximately the same as the sweet spot for a subsidized tablet, although I wish the study had looked into that possibility as well.

Superbass · 10-26-2009, 01:38 PM

Quote:

Originally Posted by mrr

Apple ALWAYS releases hardware HIGHER than the prevailing rumors. I remember when the Mac128 was rumored to be $999 to compete with the IBM Peanut, and then arrived at $2495!

Personally, I would be happier with a 10" MacBook AIR, or just an EXTERNAL BLUETOOTH KEYBOARD for the iPhone!

I'd love to carry around a bluetooth keyboard in my pocket to make using my iPhone easier and more convenient. I'll call Jobs immediately and have him hire you to join the apple think tank. But don't stop with the keyboard. How about a single button bluetooth mouse for your iPod?? And a bluetooth external screen??? And a bluetooth Bluray Drive????

anantksundaram · 10-26-2009, 01:38 PM

Quote:

Originally Posted by digitalclips

You need one because it helps my AAPL stock, in fact you need several ...

The way AAPL has been doing lately, I think I can buy several.....

Superbass · 10-26-2009, 01:38 PM

Quote:

Originally Posted by Dr Millmoss

What a pointless study. Asking people how much they'd pay for a product that doesn't exist, and nobody has any idea what it will look like, what it can do, or how it does it, is utterly ridiculous. Apple should ignore this study, and I'm sure they will.

But who will ignore you?

AjitMD · 10-26-2009, 01:41 PM

An Apple tablet has to offer something more than what the iPhone and even the Kindle offer. It has to have a long lasting battery and the display must be suitable to long reading as well as suitable for video.

The challenge in the hardware will be the display tech. LCD with backlit LED is great but has limitations due to the battery life. Would OLED save power? Another alternative tech would be the QCOM MEM tech that is low power.

The software is an issue, but with they could modify and soup up the iPhone software and even add multitasking. Most important would be content... would Apple extend iTunes to include textbooks, newspapers, magazines, etc?

Anyway, now that Kindle is rocking, I can not see SJ standing still on this product class.

Ireland · 10-26-2009, 01:42 PM

History suggest studies are way off when it comes to Apple. The tablet will be around $1,000 I'd say. If it's the type of tablet I want that is.

anantksundaram · 10-26-2009, 01:43 PM

Quote:

Originally Posted by AppleInsider

In other Apple tablet news, Bill Keller, executive editor of The New York Times, referenced Apple's forthcoming touchscreen device in a presentation to the newspaper's digital staff. Keller said that print publications would need to embrace new hardware, like the "impending Apple slate," if they want to succeed. His comment, in full, was as follows:

"We need to figure out the right journalistic product to deliver to mobile platforms and devices. I'm hoping we can get the newsroom more actively involved in the challenge of delivering our best journalism in the form of Times Reader, iPhone apps, WAP, or the impending Apple slate, or whatever comes after that."

I think that people are hyperventilating over an innocuous comment by this guy born of what is, by now, common (albeit rumor-based) knowledge.

One thing to note, however: AI was the first to predict this as an early 2010 release, a position from which it has not budged. (Does anyone recall which site/publication was the first to predict Apple's introduction of a tablet?)

AjitMD · 10-26-2009, 01:44 PM

$600 iTablet from Apple? Nope. I am not interested in buying junk. If I want that, I can get something from Acer.

Superbass · 10-26-2009, 01:44 PM

Quote:

Originally Posted by Ireland

History suggest studies are way off when it comes to Apple. The tablet will be around $1,000 I'd say. If it's the type of tablet I want that is.

Are you talking about a Tablet with a self-lubricating hole in the middle?

Ireland · 10-26-2009, 01:46 PM

Quote:

Originally Posted by Superbass

Are you talking about a Tablet with a self-lubricating hole in the middle?

No, I'm talking about Mac touch.

Roc Ingersol · 10-26-2009, 01:47 PM

Quote:

Originally Posted by vinney57

A survey on price before the device is actually seen is meaningless.

It's my understanding that this is exactly how pricing works.

Price is determined first, via market research, polls, etc. From that, cost levels are set. And from those, actual capabilities are established.

Not only would Apple have decided how much the Tablet would cost before they started, they would likely already know where the profit margin would be as production ramps up and after the first spec bump. Maybe two.

Superbass · 10-26-2009, 01:47 PM

Quote:

Originally Posted by Ireland

No, I'm talking about Mac touch.

Hot. What kind of bezel are you hoping for?

Chris_CA · 10-26-2009, 01:48 PM

Quote:

Originally Posted by g5man

First

Excellent quote you posted (the entire article) but did not refer to at all in your post.

souliisoul · 10-26-2009, 01:50 PM

Quote:

Originally Posted by AjitMD

$600 iTablet from Apple? Nope. I am not interested in buying junk. If I want that, I can get something from Acer.

If you want to see emotional reply, here is classic! This person does not know the specs of the tablet and already calling it junk because he does not like Apple or had a bad experience.

People wonder why some of us do not respect their opinion!

steviet02 · 10-26-2009, 01:51 PM

Quote:

Originally Posted by digitalclips

Next time you rush to be first try not repeating the entire article please

Next time you rush to criticize someone, maybe you could also have something relevant to say?

We all know they are coming out with a bigger iphone type device. This guy said it out loud to his employees so they won't be caught behind the wave next time. Really a big deal? I don't think so.

Dr Millmoss · 10-26-2009, 01:52 PM

Quote:

Originally Posted by Ireland

History suggest studies are way off when it comes to Apple. The tablet will be around $1,000 I'd say. If it's the type of tablet I want that is.

Right. If you'd have asked back in 2001 how many people would be willing to spend $400 on a portable digital music player you no doubt would have concluded that Apple couldn't possibly make a success out of the iPod. In fact even AFTER it appeared, and AFTER we knew what it could do, many still doubted that it could succeed at that price. So what is the lesson here?

Superbass · 10-26-2009, 01:52 PM

Quote:

Originally Posted by souliisoul

If you want to see emotional reply, here is classic! This person does not know the specs of the tablet and already calling it junk because he does not like Apple or had a bad experience.

People wonder why some of us do not respect their opinion!

He doesn't dislike Apple, he just dislikes paying less than $600 for giant iPhones. Or, he loves Apple so much that he wants to pay extra.

Ireland · 10-26-2009, 01:53 PM

Quote:

Originally Posted by Superbass

Hot. What kind of bezel are you hoping for?

Strage question. If you must know, here:

steviet02 · 10-26-2009, 01:54 PM

Quote:

Originally Posted by souliisoul

If you want to see emotional reply, here is classic! This person does not know the specs of the tablet and already calling it junk because he does not like Apple or had a bad experience.

People wonder why some of us do not respect their opinion!

Or he could mean that if it's built for under $600 it's quality could be compromised. But don't let that get in the way of your flame.

anantksundaram · 10-26-2009, 01:54 PM

Removed. [Others noted the same thing in spades.]

Ireland · 10-26-2009, 01:55 PM

Quote:

Originally Posted by Dr Millmoss

Right. If you'd have asked back in 2001 how many people would be willing to spend $400 on a portable digital music player you no doubt would have concluded that Apple couldn't possibly make a success out of the iPod. In fact even AFTER it appeared, and AFTER we knew what it could do, many still doubted that it could succeed at that price. So what is the lesson here?

People are really shollow

**Marvin** · 10-26-2009, 02:02 PM

I personally wouldn't pay over $600 for one but the Sony Vaio P is priced at $800. I don't know how many people are buying them but a touch tablet would be able to carry it off much better than what is basically another netbook.

If Apple's tablet will be just a mobile internet device (MID) affair then I can't see a $600+ price tag being popular for a number of reasons:

The CrunchPad, which will handle those tasks and is a 12" touch slate, will be $400. No microphone or camera but they can be stuck on if required.
A $600 price is way easier to stretch to if you get the full Mac OS, all your apps and an integrated webcam. This means 10.6 and not iphone OS.

They will likely start it priced high and bring it down if the demand is there and if it has a sim card then you could be talking contracts with network carriers to lower the initial cost and you'd essentially be paying for 3G everywhere. If it has that setup, iphone OS is more likely due to Apple controlling the apps.

teckstud · 10-26-2009, 02:12 PM

$600? I'll believe it when I see it.
The last model of the MacBook is currently on "sale" at Apple for $899.
I wouldn't hold your breath.

joe in miami · 10-26-2009, 02:13 PM

Quote:

Originally Posted by Superbass

I'd love to carry around a bluetooth keyboard in my pocket to make using my iPhone easier and more convenient. I'll call Jobs immediately and have him hire you to join the apple think tank. But don't stop with the keyboard. How about a single button bluetooth mouse for your iPod?? And a bluetooth external screen??? And a bluetooth Bluray Drive????

Build one! Sure to be a hit.

teckstud · 10-26-2009, 02:15 PM

Quote:

Originally Posted by Marvin

I personally wouldn't pay over $600 for one but the Sony Vaio P is priced at $800. I don't know how many people are buying them but a touch tablet would be able to carry it off much better than what is basically another netbook.

If Apple's tablet will be just a mobile internet device (MID) affair then I can't see a $600+ price tag being popular for a number of reasons:

The CrunchPad, which will handle those tasks and is a 12" touch slate, will be $400. No microphone or camera but they can be stuck on if required.
A $600 price is way easier to stretch to if you get the full Mac OS, all your apps and an integrated webcam. This means 10.6 and not iphone OS.

They will likely start it priced high and bring it down if the demand is there and if it has a sim card then you could be talking contracts with network carriers to lower the initial cost and you'd essentially be paying for 3G everywhere. If it has that setup, iphone OS is more likely due to Apple controlling the apps.

The SONY VAIO VPCCW13FX 14" is a netbook? $799.99 with Windows 7 in todays J&R ad.

teckstud · 10-26-2009, 02:17 PM

Quote:

Originally Posted by steviet02

Or he could mean that if it's built for under $600 it's quality could be compromised. But don't let that get in the way of your flame.

Even if it's built for $600 Apple, the profit whore, will charge you $1100.

10-26-2009, 12:56 PM	#1
*AppleInsider* Kasper's Automated Slave Join Date: Nov 1997 Posts: 6,151	Study suggests $600 mass-market sweet spot for Apple tablet While most Mac users would have no problem paying more than $600 for Apple's long-rumored tablet, most PC users would not consider hardware above that price, a new study suggests. In a survey of 753 customers, Retrevo.com found that 64 percent of PC users accustomed to low-cost machines would only buy the Apple tablet if it costs less than $600. But 27 percent of Mac users would pay between $600 and $800, and 41 percent said they would spend more than $800 on the still-unseen hardware. In conclusions drawn from the Gadgetology survey, the company said that the iPhone has found success by appealing to users beyond the Mac market, and the tablet must do the same. The study also assumed that those considering the pruchase of a netbook would be most interested in the touchscreen device. "Apple had better hurry up if they want to capture any of the netbook market because many consumers, both Mac and PC owners, have already bought a netbook and many more plan on buying one soon," the study said. The survey found that 37 percent of Mac users plan to buy a netbook within the next year, and 36 percent of PC users plan to do the same. Among iPhone users, 40 percent said they were eyeing a netbook purchase. A study from the company in August found that school shoppers chose netbooks over Macs. In other Apple tablet news, Bill Keller, executive editor of The New York Times, referenced Apple's forthcoming touchscreen device in a presentation to the newspaper's digital staff. Keller said that print publications would need to embrace new hardware, like the "impending Apple slate," if they want to succeed. His comment, in full, was as follows: "We need to figure out the right journalistic product to deliver to mobile platforms and devices. I'm hoping we can get the newsroom more actively involved in the challenge of delivering our best journalism in the form of Times Reader, iPhone apps, WAP, or the impending Apple slate, or whatever comes after that." Apple's tablet device is expected to arrive in the first quarter of 2010 with a 10-inch screen and 3G connectivity. Recent rumors have pegged the multifunction device as a potential e-reader, and officials with The New York Times and other publications are alleged to have had discussions with Apple about making their content available for the hardware. [ View this article at AppleInsider.com ]

10-26-2009, 01:26 PM	#9
Aizmov Registered User Join Date: Dec 2008 Posts: 232	Anywhere up to $899 is fine by me. Looking forward to the tablet Actually, even if it goes beyond $999 I'll buy, but it has to be really good. G4 Cube Late 2007 MacBook 2G iPod nano iPhone 3G

10-26-2009, 01:36 PM	#14
Dr Millmoss Registered User Join Date: Apr 2009 Posts: 1,243	What a pointless study. Asking people how much they'd pay for a product that doesn't exist, and nobody has any idea what it will look like, what it can do, or how it does it, is utterly ridiculous. Apple should ignore this study, and I'm sure they will. What have you done with...

10-26-2009, 01:42 PM	#20
Ireland Registered User Join Date: Feb 2006 Location: Ireland Posts: 8,557	History suggest studies are way off when it comes to Apple. The tablet will be around $1,000 I'd say. If it's the type of tablet I want that is. Collecting my SSD iMac Fry-die. :D

10-26-2009, 02:12 PM	#37
teckstud Registered User Join Date: Oct 2007 Posts: 6,115	$600? I'll believe it when I see it. The last model of the MacBook is currently on "sale" at Apple for $899. I wouldn't hold your breath. Once you go Mac, you never go back!

10-26-2009, 01:07 PM	#3
Intense Registered User Join Date: Aug 2009 Posts: 60	to get an iphone 3Gs, it would cost me $799 Canadian dollars plus taxes since I had signed a three contract a month before the release of the original iPhone. Now, for the apple tablet to cost between 700 to 800 US dollars, that's approximately $200 more than the iPhone hmmmm .... I am looking forward to seeing the price and the features of the apple's new touch screen device

10-26-2009, 01:08 PM	#4
mstone Registered User Join Date: Jan 2006 Location: SoCal Posts: 930	I'd love a tablet just to have the latest and greatest. But I already have an iPhone and a MBP so I don't know that I really need one. That would be a bit much even for me. I'm afraid I would be lugging around all three devices.

10-26-2009, 01:19 PM	#7
vinney57 Registered User Join Date: Nov 2001 Location: The UK of Englandshire Posts: 985	A survey on price before the device is actually seen is meaningless. Self-justifying noise and nonsense. I'm betting it's more that $800 on release.

10-26-2009, 01:25 PM	#8
Superbass Registered User Join Date: Sep 2006 Posts: 357	$600 for the new 17" iPhone? Count me in!

10-26-2009, 01:31 PM	#11
NeilM Registered User Join Date: Aug 2008 Posts: 96	The idea of polling people about how much they'd pay for a device of completely unknown capabilities and uncertain existence is simply ridiculous. Attempting to analyze the results of such a poll is doubly ridiculous.

10-26-2009, 01:34 PM	#13
mrr Registered User Join Date: Aug 2009 Posts: 10	Apple ALWAYS releases hardware HIGHER than the prevailing rumors. I remember when the Mac128 was rumored to be $999 to compete with the IBM Peanut, and then arrived at $2495! Personally, I would be happier with a 10" MacBook AIR, or just an EXTERNAL BLUETOOTH KEYBOARD for the iPhone!

10-26-2009, 01:37 PM	#15
cmf2 Registered User Join Date: Aug 2008 Posts: 565	We don't even know what an Apple tablet will be capable of, of how big it will be so the $600 sweet spot could be off a bit from the actual one. Although given the rumored capabilities and size, I think it might not be that far off. Can Apple sell a tablet at that price, with a desirable profit? I doubt it. Perhaps $600 subsidized wouldn't be out of the realm of possibilities though. From my experience, most people don't really care about signing a contract and only look at the initial purchase price so I think this studies $600 sweet spot would be approximately the same as the sweet spot for a subsidized tablet, although I wish the study had looked into that possibility as well.

10-26-2009, 01:41 PM	#19
AjitMD Registered User Join Date: Aug 2008 Posts: 165	An Apple tablet has to offer something more than what the iPhone and even the Kindle offer. It has to have a long lasting battery and the display must be suitable to long reading as well as suitable for video. The challenge in the hardware will be the display tech. LCD with backlit LED is great but has limitations due to the battery life. Would OLED save power? Another alternative tech would be the QCOM MEM tech that is low power. The software is an issue, but with they could modify and soup up the iPhone software and even add multitasking. Most important would be content... would Apple extend iTunes to include textbooks, newspapers, magazines, etc? Anyway, now that Kindle is rocking, I can not see SJ standing still on this product class.

10-26-2009, 01:44 PM	#22
AjitMD Registered User Join Date: Aug 2008 Posts: 165	$600 iTablet from Apple? Nope. I am not interested in buying junk. If I want that, I can get something from Acer.

10-26-2009, 01:54 PM	#34
anantksundaram Registered User Join Date: Sep 2006 Posts: 3,218	Removed. [Others noted the same thing in spades.]

10-26-2009, 02:02 PM	#36
Marvin Global Moderator Join Date: Feb 2006 Posts: 5,251	I personally wouldn't pay over $600 for one but the Sony Vaio P is priced at $800. I don't know how many people are buying them but a touch tablet would be able to carry it off much better than what is basically another netbook. If Apple's tablet will be just a mobile internet device (MID) affair then I can't see a $600+ price tag being popular for a number of reasons: The CrunchPad, which will handle those tasks and is a 12" touch slate, will be $400. No microphone or camera but they can be stuck on if required. A $600 price is way easier to stretch to if you get the full Mac OS, all your apps and an integrated webcam. This means 10.6 and not iphone OS. They will likely start it priced high and bring it down if the demand is there and if it has a sim card then you could be talking contracts with network carriers to lower the initial cost and you'd essentially be paying for 3G everywhere. If it has that setup, iphone OS is more likely due to Apple controlling the apps.

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