Quote:
Originally Posted by
Blastdoor 
Never say never.
Popular misconception to the contrary, Apple is a very pragmatic company, and Steve Jobs was a very pragmatic leader (god how that past tense pains me... so unfair). The mistake people have made is to confuse focus/clarity/decisiveness with idealism.
Look at what happened with the iPhone. Apple started selling it unsubsidized for a high upfront price.
That plan did not work. Apple changed tactics and succumbed to the subsidy model for the iPhone. Nobody ever talks about this, but it happened. Apple's history -- and Jobs' history -- is full of examples of pragmatic decisions like that.
While I'm skeptical that the Amazon Fire will do very well, some very smart people disagree (Gruber, for example). If Amazon shows that a subsidized hardware model works well in the tablet market, then Apple will adopt that model, and using iCloud is the most obvious way to do it.
I have to agree with all of this. Rolling out a limited type of iPad2 along with the iPad3 allows them to follow up a known working plan with another known working plan. Just like the iPhone they roll out the same form factor, lesser CPU, lesser storage (drop it to 8 gigs) and sell it for less. It attracts people who are on the fence with a lower price, and has a good chance of getting them to buy the top tier product next time around, but it also attracts people who already own one and see value in a second device. They would easily have both the first and second best selling tablets, just as they do with phones.
Right now we have 4 people in my household who need computing power. There is no way we will buy everyone a laptop, way too expensive. Getting three cheap netbooks is tempting, but only my son wants to use linux, so that is out. On the other hand with iCloud rolling out, having a single desktop (or laptop and external drive and monitor) and a few iPads is nearly ideal. The iPad replaces 90% of my computing needs, and about the same for the wife and kids. The desktop essentially becomes a local server, the cloud handles most of the real work, the desktop/server is there for the other 10% and everyone is happy.
What stops this? The $500 price tag. If I could get a 3G model for me and a $250 wifi only 8 gig for each kid for about what i could get a new macbook for.... Suddenly that price is more than right.