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Consumers reluctant to spend above $700 for Apple tablet - study

post #1 of 160
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While consumer interest in Apple's forthcoming tablet is high, a price north of $700 could turn off many potential buyers, a new survey has found.

The latest Retrevo Pulse Report found that most who responded -- 70 percent -- said a price point above $700 would prevent them from buying a tablet. The study was based on 500 randomly selected Retrevo users polled from Jan. 16 through Jan. 20, 2010.

Most analysts believe the tablet will sell for less than $1,000 when it is released this year. Wednesday, a report from The Wall Street Journal said Apple will portray the 10-inch touchscreen device as something that can be shared by the whole family.

Previously, investment firm Piper Jaffray had forecast an average selling price between $600 and $800 for the tablet. But following the Journal's alleged details, an analyst told AppleInsider that price point "may be a little low." Of course, the price could also be dramatically reduced if it were subsidized with a data plan from a wireless carrier.

Other details from the Retrevo survey: The most important feature for participants was battery life. Three-quarters of those who responded said they need the tablet to have long battery life if they are going to buy one. Coming in second, 39 percent said they needed 3G connectivity, while 28 percent said they wanted an e-book store with a large selection.

Conversely, 44 percent of respondents said they would not buy a tablet if it requires a monthly data plan. Another 34 percent said AT&T-only 3G connectivity would be a deal-breaker, and 22 percent said they wouldn't buy if there is a lack of e-books available.



Most users were also indifferent about what applications the tablet will run: 17 percent would like it to run iPhone software, while 18 percent want it to be Mac OS X compatible. A majority -- 65 percent -- said they don't care.

The most interesting potential feature to users was solar charging, with 39 percent of respondents choosing that option. Another 24 percent would like to have a camera for video conferencing, 22 percent are interested in WiMax or LTE 4G mobile broadband, and 19 percent would like to see two screens like a book.

Regardless of the price, consumer interest in the tablet is high. Another study from ChangeWave Research released Thursday found that 18 percent of consumers said they are "likely" to purchase Apple's unannounced touchscreen device.

But there again the price was key. While three-quarters of respondents said they would pay $500 or more for the device, the number dropped to 37 percent when the price was above $700.

ChangeWave compared the hype surrounding the impending tablet to Apple's switch to Intel processors. When consumers were asked in August 2005 if they were likely to purchase an Intel Mac from Apple, the results were identical.



"While this, in and of itself, doesn't guarantee success -- and the product has yet to prove it'll live up to super-high consumer expectations -- it does show the enormity of the Mac Tablet's potential to alter the dynamics of the PC market and related markets (e.g., e-reader/ e-book market)," the study said. "But the real impact won't be fully determined until consumers get to see it, feel it, test it and decide if the 'iSlate' is all it's chalked up to be."
post #2 of 160
I'm very reluctant to purchase the Tablet until I actually saw the feature set and and there is an actual supply made available to sell...very reluctant.
post #3 of 160
Quote:
Originally Posted by AppleInsider View Post

test it and decide if the 'iSlate' is all it's chalked up to be."

good one

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post #4 of 160
little hard to say how much a device is worth without knowing what it does
post #5 of 160
I was thinking more along the lines of $899 being the ceiling......but I guess $700 is even better.
post #6 of 160
I concur with the findings. Below $700, the iPad/iSlate/iTablet would qualify as a cool gadget that I'd buy with only minimal self-debate. Above that it strays into "luxury" and I'd have to be in a self-indulgent mood to pull the trigger on the purchase. Apple will be treading dangerous ground if its price is above $700 methinks. \
post #7 of 160
Quote:
Originally Posted by skiracer1987 View Post

little hard to say how much a device is worth without knowing what it does

i think people taking part of the poll assumed it was similar to a netbook, except its all touch.

thats more or less what i equate it to and i figure other people have a similar idea.
post #8 of 160
I agree that a required monthly plan will kill sales... but that doesn't mean Apple can't put the 3G hardware in there for people who want to pay for it. One would look to the iPod Touch for speculation.

If Apple does sell the tablet with cell hardware (and takes a subsidized/unsubsidized approach), I have a question: Will it also be a phone?
post #9 of 160
It's understandable. I spent $1100+ on my MacBook Pro, $300 on my iPhone 3GS... I'd be reluctant to spend another grand no matter how good it is.

Apple can only dip into the money well for so long...
post #10 of 160
SURE. I'll pay $700 for a myth.

NO, make it an even thousand!

WHAT is with articles like this?
Announce it, let us look at the specs, THEN ask.
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post #11 of 160
How do you take a reliable survey without knowing what the product provides?
If the iTablet has 3G, wifi, quasi OSX/iPhone operating system, ebooks, no subscription and video chat capability I would pay a thousand for it.
post #12 of 160
Quote:
Originally Posted by AppleInsider View Post

While consumer interest in Apple's forthcoming tablet is high, a price north of $700 could turn off many potential buyers, a new survey has found.

I agree, people are going to want to know what value they are getting for such a high price.

If the device is nothing more than a larger iPhone or iPod touch with a closed OS, then certainly that's way too much in my opinion.

Quote:
Wednesday, a report from The Wall Street Journal said Apple will portray the 10-inch touchscreen device as something that can be shared by the whole family.

Newspaper people thinking like newspaper people, where they inflate their readership based upon sharing of a cheap item like a newspaper to con advertisers with. The tablet won't be cheap and very unlikely shared.

Quote:
Other details from the Retrevo survey: The most important feature for participants was battery life. Three-quarters of those who responded said they need the tablet to have long battery life if they are going to buy one.

Yes a long battery is ideal, especially if it has a pad that you can place the device on to recharge.


Quote:
Coming in second, 39 percent said they needed 3G connectivity, while 28 percent said they wanted an e-book store with a large selection.

It should come in two devices, one with 3G and one without. Like the iPhone and iPod Touch.


Quote:
Conversely, 44 percent of respondents said they would not buy a tablet if it requires a monthly data plan.

Agreed, a cell phone is enough wallet bloodletting.


Quote:
Another 34 percent said AT&T-only 3G connectivity would be a deal-breaker,

Agreed, carrier choice is good. It's no use if I can't use it due to overloaded carriers.


Quote:
and 22 percent said they wouldn't buy if there is a lack of e-books available.

reading is NOT DEAD. Renting of content would be nice, but require stringent DRM to work and that means a closed device.



Quote:
Most users were also indifferent about what applications the tablet will run: 17 percent would like it to run iPhone software, while 18 percent want it to be Mac OS X compatible. A majority -- 65 percent -- said they don't care.

I'm surprised, they should care. The iPhone OS and App Store are closed and OS X UI is open.


Quote:
The most interesting potential feature to users was solar charging, with 39 percent of respondents choosing that option.

This will cause a problem as people will leave their device to warp in the heat or out to get pinched by thieves or out of a safe case. A charging pad would be a better choice and work inside...

Quote:
Another 24 percent would like to have a camera for video conferencing,

Agreed.

Quote:
22 percent are interested in WiMax or LTE 4G mobile broadband,

Latest technology is good.

Quote:
and 19 percent would like to see two screens like a book.

then that would make it a laptop basically.


Quote:
Regardless of the price, consumer interest in the tablet is high. Another study from ChangeWave Research released Thursday found that 18 percent of consumers said they are "likely" to purchase Apple's unannounced touchscreen device.

Optimism, depends upon what they see of course.

Quote:
But there again the price was key. While three-quarters of respondents said they would pay $500 or more for the device, the number dropped to 37 percent when the price was above $700.

Just picking a price without knowing what the device is capable of? No wonder Apple is doing so well!

Quote:
ChangeWave compared the hype surrounding the impending tablet to Apple's switch to Intel processors. When consumers were asked in August 2005 if they were likely to purchase an Intel Mac from Apple, the results were identical.

Wow, is it the same type of people voting or what?



Quote:
"While this, in and of itself, doesn't guarantee success -- and the product has yet to prove it'll live up to super-high consumer expectations -- it does show the enormity of the Mac Tablet's potential to alter the dynamics of the PC market and related markets (e.g., e-reader/ e-book market)," the study said. "But the real impact won't be fully determined until consumers get to see it, feel it, test it and decide if the 'iSlate' is all it's chalked up to be."


Agreed.
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post #13 of 160
Quote:
Originally Posted by Mazda 3s View Post

It's understandable. I spent $1100+ on my MacBook Pro, $300 on my iPhone 3GS... I'd be reluctant to spend another grand no matter how good it is.

Apple can only dip into the money well for so long...

Yes, selling clearly superior products at marginally higher prices is the surest road to utter failure.

There ARE those who consider more than the price tag alone.
And Mac users have been doing it only since the Mac was introduced in 1984.
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post #14 of 160
Quote:
Originally Posted by Isomorphic View Post

I agree that a required monthly plan will kill sales... but that doesn't mean Apple can't put the 3G hardware in there for people who want to pay for it. One would look to the iPod Touch for speculation.

This is where an At&t tethering plan for iPhone owners becomes even more interesting..
post #15 of 160
Bull.

Once they see this thing they'll line up, wallets open. If Apple can sustain record Mac sales in a garbage economy, they can sustain sales of the Jesus Slate.

http://www.macdailynews.com/index.ph...ave_of_demand/

ChangeWave: Apple ‘iSlate’ tablet stirring strong wave of demand
Thursday, January 21, 2010 - 12:05 PM EST

A January ChangeWave survey of consumer PC buying trends shows the ‘iSlate’ – Apple’s highly rumored but yet to be announced Tablet Mac – is causing a major wave of demand among consumers, with repercussions that are already affecting the PC industry and related markets.

The survey also shows a surge in computer purchases over the past 90 days a total of 15% of the 3,314 respondents in our January survey bought a laptop in the past 90 days and 8% a desktop – the highest combined level of the past two years.

But going forward, the rumored upcoming launch of an Apple ‘iSlate’ Tablet is already having a powerful impact on PC demand.

To gauge the potential for the Apple Tablet Mac, ChangeWave asked respondents how likely it is they’ll buy an ‘iSlate’ if-and-when it becomes available.

The survey results show strong consumer interest – with 4% of respondents saying they are Very Likely and 14% Somewhat Likely to buy one for themselves or someone else.




How does this level of interest stack up against previous Apple product transformations that were launched after a prolonged and powerful media buzz?

While there are no exact comparisons, one way to gauge the level of interest in a Tablet Mac is to compare it to the reaction in 2005 when Apple announced it would begin producing its Macs using the Intel chip.

An August 2005 ChangeWave survey asked consumers if Apple’s switch to the Intel chip made them more likely to buy an Apple computer in the future, less likely, or would it have no effect?

The results were strikingly similar to our current findings for the ‘iSlate’. Here is a comparison of the pre-launch demand findings for each:




In the current survey, the exact same percentages say they’re likely to buy the Apple ‘iSlate’ as ChangeWave found when we surveyed consumer reaction to Apple’s switch to the Intel chip back in 2005.

Bottom Line. Apple’s switch to the Intel chip widely broadened the Mac’s appeal to consumers and proved to be one of the great moves in Apple history. Five years later, another ChangeWave survey shows similarly high levels of pre-launch excitement for the Mac Tablet.

While this, in and of itself, doesn’t guarantee success – and the product has yet to prove it’ll live up to high consumer expectations – it does show the enormity of the Mac Tablet’s potential to alter the dynamics of the PC market and related markets (e.g., e-reader/ e-book market). But the real impact won’t be fully determined until consumers get to see it, feel it, test it and decide if the ‘iSlate’ is all it’s chalked up to be.

In short, while historically Apple products have had an enviable track record in terms of exceeding consumer expectations, until consumers get their hands on the ‘iSlate’ – in spite of the powerful pre-launch demand – it’s important to remember the product doesn’t officially exist yet.

Regardless, the unrelenting media frenzy has jolted the ‘iSlate’ into the spotlight, and it is already having an impact on PC demand trends and related markets.

Source: ChangeWave Research
post #16 of 160
I'm still sticking to my $899 price point. It'll be a new gadget so Apple will pitch it high at first. Remember the iPhone folks.
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post #17 of 160
Quote:
Originally Posted by Quadra 610 View Post

Bull.

Once they see this thing they'll line up, wallets open. If Apple can sustain record Mac sales in a garbage economy, they can sustain sales of the Jesus Slate.

[/B][/I]

I don't think there is any doubt that wallets will open among the MDN crowd (my own included.) However, what remains to be seen is will wallets open with the masses outside of the MDN/AppleInsider/Tech Geek crowd..

Even when the iPhone launched at $499 and $599, everyone was blown away.. But it took getting the price down to $199 before the masses really started buying..
post #18 of 160
Looks like a reasonable price.
post #19 of 160
Quote:
Originally Posted by jeffharris View Post

Yes, selling clearly superior products at marginally higher prices is the surest road to utter failure.

There ARE those who consider more than the price tag alone.
And Mac users have been doing it only since the Mac was introduced in 1984.

What does what you wrote have to do with anything I said? Most people need/use a notebook. Most people need/use a phone. Getting someone to pay close to $1000 for a compromise between a MacBook (lack of keyboard, lack of power, likely a lack of full OS X) and an iPhone (lack of pocketability) is a tall order.
post #20 of 160
Quote:
Originally Posted by Quadra 610 View Post

Bull.

You have no idea what you're talking about....
post #21 of 160
This is interesting because it is done without knowing much about it even counting all the rumors. It gives you a simple price and feature segmentation from a population operating only on buzz. Obviously it will change based on the actual feature sets, price etc. but this is an interesting benchmark for now.

Price - Apple has never value priced its products especially at launch, especially when defining a new mainstream segment (Powerbooks, iPod, iPhone). They must be ecstatic that 37% of a population would buy one above $700 but would be equally happy with 5% of people happy to buy one above $999, 2% above $1499, etc. The iPhone was super premium priced, sold a lot for a totally new product and then got cheaper quickly and sold bucketloads. At launch, Apple don't typically care about mainstream buyers - they care about the top 2-5% who build a halo on a product. If it is good enough that will work again for the iPad (see iPhone/iPod). If not, it will be an AppleTV or Macbook Air - moderately successful for Apple but not really game changing.

Features - hopefully Apple has learned about the millstone of AT&T and probably has no need for tying to one carrier like they did with the iPhone. Battery life is obvious and no-one handles native battery life better than Apple (notwithstanding their abhorrence of removable batteries which is a minor market segment overall).

I am as excited as anyone to find out what this thing will really be but I would imagine Apple would be pretty happy with the results of this study.
post #22 of 160
Quote:
Originally Posted by Mazda 3s View Post

What does what you wrote have to do with anything I said? Most people need/use a notebook. Most people need/use a phone. Getting someone to pay close to $1000 for a compromise between a MacBook (lack of keyboard, lack of power, likely a lack of full OS X) and an iPhone (lack of pocketability) is a tall order.


Compromise?? How can you say the product is a compromise when it hasn't even been introduced and you don't even truly know what it does?

For all you know, after January 27th, most people may need/use a Mac Tablet.
post #23 of 160
Quote:
Originally Posted by Mazda 3s View Post

It's understandable. I spent $1100+ on my MacBook Pro, $300 on my iPhone 3GS... I'd be reluctant to spend another grand no matter how good it is.

Apple can only dip into the money well for so long...


Agreed, it has to give appropriate value for the price and solve a need for widespread adoption to occur.

I didn't buy a iPod Touch or iPhone because I already have a iPod Classic, a MacBook Pro and a inexpensive cell phone that solves my needs.

I might buy this new device, just to get at the App Store apps, if it solves a need.
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post #24 of 160
Quote:
Originally Posted by solsun View Post

Compromise?? How can you say the product is a compromise when it hasn't even been introduced and you don't even truly know what it does?

For all you know, after January 27th, most people may need/use a Mac Tablet.

If it is as powerful as even a standard dual-core MacBook, comes with a physical keyboard, and fits in my pocket, I will personally kiss your hairy ass
post #25 of 160
The law of supply and demand might suggest a price significantly higher than $700 in the beginning when supplies are limited. Apple doesn't participate in the "race to the bottom" like other manufacturers anyway. Since the price for technology drops an average 1% per week, a $700 price point could be realized rather soon even if initial production costs are nearly this high. If Apple also seeks the rumored subsidies from content providers, this should also help drive down the hardware cost as increasing numbers of providers sign up.
post #26 of 160
Consumers are reluctant to pay over $700 for a laptop, or for a desktop. And yet, Apple is selling well. Why? Because when you just name a $$ figure, then $$ is all that matters. When you attach a dollar-figure to an actual product, sometimes people turn around and say, Wow, that IS worth it. And no doubt some don't.

But all AI (and others) have been doing for years is prepping people for unrealistically low prices. There's gonna be a LOT of unhappy people when it's unveiled, because they'll feel like it costs higher than they were promised.
post #27 of 160
Quote:
Originally Posted by jeffharris View Post

sure. I'll pay $700 for a myth.

No, make it an even thousand!

What is with articles like this?
Announce it, let us look at the specs, then ask.


amen!!
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post #28 of 160
Quote:
Originally Posted by steviet02 View Post

You have no idea what you're talking about....

You might as well explain.
post #29 of 160
Quote:
Originally Posted by jeffharris View Post

SURE. I'll pay $700 for a myth.

NO, make it an even thousand!

WHAT is with articles like this?
Announce it, let us look at the specs, THEN ask.

NO feature spec is worth more than $700. For just a few hundred more you can get a Macbook for crying out loud.

Is there a real gap that this would fill that can be worth more than $700?


REMEMBER THE NEWTON and how it flopped almost exclusively because of price.
post #30 of 160
Quote:
Originally Posted by AppleInsider View Post

While consumer interest in Apple's forthcoming tablet is high, a price north of $700 could turn off many potential buyers, a new survey has found.

Yeah.

$700 = exact amount of Apple gift cards I have!
post #31 of 160
Quote:
Originally Posted by Foo2 View Post

The law of supply and demand might suggest a price significantly higher than $700 in the beginning when supplies for a new device are scarce. Apple doesn't participate in the "race to the bottom" like other manufacturers anyway. Since the price for technology drops an average 1% per week, a $700 price point could be realized rather soon even if initial production costs are nearly this high.

agreed, it will seem to be overpriced at first regardless and then Apple will gradually lower the price as they take economies of scale into effect.

I'll wait for Rev 2 because then more bugs will be worked out and new direction and features added.
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post #32 of 160
I'll stick to my £300 price point. I can't see it being that cheap, but the problem is what would you actually use it for that's going to justify the price? In the same way as not many people justifying the price of Apple TV compared to just having DVD's.

I also don't see why people can't put a value on it before they've seen it. End of the day it's a tablet, you think how much would I pay for a tablet, and then how much more would I pay for it to have an Apple logo on it? Look at the survey 65% of people interested in this thing don't even care what it does, but irrespective of that they still want it. That says a lot about the people that are going to buy this thing. End of the day it looks like this 65% of people want the next Apple product and will buy it whatever it is as long as they can afford it.
post #33 of 160
Quote:
Originally Posted by Mazda 3s View Post

If it is as powerful as even a standard dual-core MacBook, comes with a physical keyboard, and fits in my pocket, I will personally kiss your hairy ass

The problem with your thinking is that you are trying to put an unknown/unreleased product into a category which already exists.. What if this device creates or defines an entirely new product category?

My thinking is that I'm gonna hold off until I actually see what it does before I determine that it's too expensive or a compromise.


BTW: My bum is smooth
post #34 of 160
Quote:
Originally Posted by Mr Underhill View Post

It'll be a new gadget so Apple will pitch it high at first. Remember the iPhone folks.

But hopefully, Apple learned something too, from that episode?
post #35 of 160
The iPhone is actually over $500 if you buy one new, not subsidized by a phone carrier.

If this tablet isn't subsidized, I don't care how many features it has, I wouldn't pay over $500 for it.

$700? Really? This thing is going to be shoved around on coffee tables, taken outdoors, into the bathroom and unlike a laptop it doesn't fold shut to protect it. I couldn't stand the thought of accidentally dropping a $700 piece of electronic glass.
post #36 of 160
These kind of surveys are absolutely worthless and completely non-scientific. They are not worth the e-paper they are printed on and not worth discussing.

If people don't see the huge logical flaws involved in asking these kinds of questions, in the way that they are being asked, at the time that they are being asked, then they need their heads examined. Useless survey, producing useless data that has no probative value.
post #37 of 160
Quote:
Originally Posted by timgriff84 View Post

End of the day it's a tablet, you think how much would I pay for a tablet, and then how much more would I pay for it to have an Apple logo on it?

Is the iPhone just a RAZR with an Apple logo on it? Or do you know something about the unannounced "tablet" the rest of us don't?
post #38 of 160
Quote:
Originally Posted by skiracer1987 View Post

little hard to say how much a device is worth without knowing what it does

Not at all. The market, or rather hypothetical market, for this device is quite clear. It's not a replacement for either of the major gadgets, computer or smartphone. It's an inbetweenie, that can do many things that the other two cannot. Without knowing a thing about it, we can still accurately pinpoint what it will do, and what it might do....

... And none of those add up to a device that would sell well over $800.

And it could sell out of control at $600.

I still maintain the 64 gb model will be $599 and a premium 128 gb model will command $749
post #39 of 160
Here's the way I see it. If it's too big to fit in my pocket, then I'll have to throw it in a briefcase or bag. And if I need a bag to put it in, why wouldn't I just bring along my 13" MacBook Pro?

So this thing had better either make me pancakes or Be priced halfway between a 32GB iPhone and a MacBook.
post #40 of 160
Quote:
Originally Posted by Ronbo View Post

There's gonna be a LOT of unhappy people when it's unveiled, because they'll feel like it costs higher than they were promised.

Spot on!

Can't wait for the moaning and groaning to start at exactly 11:00:01 PST on the 27th of Jan!
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