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$299 iPad 2 seen shaking up tablet market, Amazon's Kindle Fire

post #1 of 92
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Though Apple already dominates the tablet market, the company could ward off growing competition and increase its sales even further by selling the iPad 2 for as low as $299, one analysis has projected.

The new take from Taiwanese industry publication DigiTimes offered on Tuesday projects that Apple will keep its current iPad 2 available after it launches a third-generation iPad in the coming months. At most, it projects that the iPad 2 price will drop to $399 for the entry-level model, which would be $100 less than the current cheapest model, and would be a strategy similar to what Apple has employed with its iPhone lineup.

But Apple could be even more aggressive and price the iPad 2 even less, potentially at $349 or even as low as $299, the analysis concluded. A $299 iPad 2 is seen "seriously" affecting Apple's tablet competitors, including the Amazon Kindle Fire, which has created a new low-end tablet market with its $199 price.

In addition to an iPad 2 as inexpensive as $299, Apple could also grow the iPad range upwards, the report said. The same publication reported last month that Apple will launch a new high-end iPad model with an 8-megapixel camera and high-resolution Retina Display, along with a mid-range model equipped with a 5-megapixel camera.

But that report also claimed that Apple would unveil the two new iPad models at the MacWorld | iWorld conference later this month, an event that Apple has not participated in since 2009. The claims of a so-called "iPad 3" unveiling at MacWorld were quickly debunked by more reputable reports.



It was also said last month that Apple has begun reducing orders for the iPad 2, but added that it was "too early to tell" whether the 2011 tablet would continue to be sold at a discounted price. The prospect of a new entry-level model has been seen by analysts as a way for Apple to counter the Kindle Fire, which Amazon is believed to be selling for a loss in order to push digital content to users.
post #2 of 92
Selling iPad 2's for as low as $1.00 has also been seen as a move that would shake up the industry.

(Just thought I would see what it was like being an analyst for a minute or two myself.)
post #3 of 92
Apple is currently selling their refurbished 16GB iPad2 for $419. Can't see them selling it new for $299, even if it's last years model. But it would be sweet!
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post #4 of 92
iPad 2 will sell for $399 and iPad 3 will sell from $499.

Mark my words.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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post #5 of 92
I would not be surprised to see iPad 2 production continue and prices drop by $100 when the iPad 3 is released. I would be very surprised by a larger price drop.
Mac user since August 1983.
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Mac user since August 1983.
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post #6 of 92
Apple is a premium brand. They will not dilute the brand by trying to compete with Amazon for the cheapskates.
post #7 of 92
no story here.


can we seriously just overlook everything apple-related that this rag publishes until they earn some kind of industry respect? not sure if i'm more annoyed at digitimes or apple insider for wasting bandwidth.
post #8 of 92
If that Fire was selling at $150 then it might have made a loss.

Many $100 Cortex A8 capacitive tablets are now available offering more. So it might be considered very bad housekeeping by Amazon to make a loss on a $200 sale.

The most interesting event so far this year is certainly the Playstation Vita. Unless Apple has got it's actual together this Vita CPU will also be in the iPad 3.
So now we have a dedicated games device that can also be a smartphone.

The interesting question now is, will cheap 99c apps be preferred on a $650+ device to $15+ real games on this $350 one?
5" certainly creates overlap between phoe and tablet so where is the 5" Apple A6 iPod touch?
post #9 of 92
8MP camera? In a tablet? Useless.

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post #10 of 92
There's a danger in dropping the current iPad 2 to $299 and putting the better Retina iPad 3 at $499...

---> More people would just get the $299 model instead of the $499 model.

Selling the iPad 2 at $299 would barely make Apple any money... ie low margins.

And Apple is all about making money... despite claims that Apple is in trouble and will be chasing market share since the arrival of the Kindle Fire.

Apple is a hardware seller first and an App Store second. A person couldn't buy enough apps to make up the deficit in hardware sales.

Apple is not Amazon. Apple will not sell hardware with no markup and try to make it up in media. No way, no how.


It's January 3, 2012. Is this the first ridiculous report from DigiTimes this year?
post #11 of 92
Here is some very interesting info (IMHO) this peace of receipt from apple for iPad23g
post #12 of 92
I don't understand how one can write about "warding off" whilst the market share is constantly shrinking. Maybe a title like "secure its position" would be better.
post #13 of 92
People need to realize the Kindle DOES NOT offer the same experience as the iPad! It is a cut rate product that doesn't even come close to Apple's product!
post #14 of 92
Every time you use Digitimes as source material for an article you lose credibility with me. I will no longer read any material you publish of this kind. Using Digitimes as a foil to make it ok to spread baseless rumors is not cool.
post #15 of 92
Quote:
Originally Posted by boriscleto View Post

Apple is a premium brand. They will not dilute the brand by trying to compete with Amazon for the cheapskates.

In the same way they would never compete with those cheapass Android phones by offering a $99 iPhone and .99c iPhone. Nope, they would never do that...Oh wait!

http://www.wireless.att.com/cell-pho...e-packages.jsp
post #16 of 92
Quote:
Originally Posted by bobouches View Post

Here is some very interesting info (IMHO) this peace of receipt from apple for iPad23g

What is this? Where did it come from? Without more info this image is meaningless.
post #17 of 92
Quote:
Originally Posted by Ireland View Post

iPad 2 will sell for $399 and iPad 3 will sell from $499.

Mark my words.

Doesn't exactly take genius to figure this out. But yes, you're right.

And next year, I think the iPad 2 might continue as well, at $299.

But for 2012, the iPad will only come down to $399
post #18 of 92
Quote:
Originally Posted by GregInPrague View Post

What is this? Where did it come from? Without more info this image is meaningless.

That looks like an out-of-warranty service fee.
melior diabolus quem scies
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melior diabolus quem scies
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post #19 of 92
Quote:
Originally Posted by Damn_Its_Hot View Post

Selling iPad 2's for as low as $1.00 has also been seen as a move that would shake up the industry.

(Just thought I would see what it was like being an analyst for a minute or two myself.)

Love to see Apple announce that just to see the reaction from Amazon, Samsung, etc. That would be hilarious. But, an Amazon-branded iPad with Kindle baked into iOS could/would be sold at a very aggressively subsidized price in the same way AT&T is selling 3GS and 4. That would mean essentially giving up on iBooks. So I don't see it happening. Perhaps Apple could do a deal with B&N instead.
post #20 of 92
Quote:
Originally Posted by Kevin Winsness View Post

People need to realize the Kindle DOES NOT offer the same experience as the iPad! It is a cut rate product that doesn't even come close to Apple's product!

I think that there will end up with 2 different tablet markets. The premium market like the iPad which will offer great video and etc.

And the tablet priced @ $100 or less that will be what the average person will use around the home to control TV, receive email, read ebooks and anything else that won't require a great screen or a lot of processing power.
post #21 of 92
Quote:
Originally Posted by mcarling View Post

I would not be surprised to see iPad 2 production continue and prices drop by $100 when the iPad 3 is released. I would be very surprised by a larger price drop.


also leaves room for refurbished for $50 less
that's what i did, bought a refurb for my daughter,
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I APPLE THEREFORE I AM
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post #22 of 92
Quote:
Originally Posted by aBeliefSystem View Post


Many $100 Cortex A8 capacitive tablets are now available offering more.


Can you name three?
post #23 of 92
Hmm. So if you reduce the price of something, there is a chance that you might sell more of them. People like to come on this board and mock analysts, but that's the value of expert opinion right there.
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Believe nothing, no matter where you heard it, not even if I have said it, if it does not agree with your own reason and your own common sense.
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post #24 of 92
Quote:
Originally Posted by Crowley View Post

8MP camera? In a tablet? Useless.

I was amazed at the number of people using their iPad as a camera in Hawaii-- I counted 5 in a 5 minute span. Idiotic, but more common than you might think.
post #25 of 92
$299 for and iPad 2 I think it is possible and Apple may introduce one with low memory, a Wifi model with 8GB of storage

personally I wish that Apple will replace the 16GB models with 32GB at the same price, and keep the iPad 2 wifi as new low model with 8GB, which will be a great deal for all, just like the iPod touch

and maybe add the 128GB model, so we can have something like this:

iPhone 4 16Go : iOS 5.1
New iPad 32Go Wifi: iOS 5.1 (ordered)
PC CPU Intel 2600K - GPU ATI 5870 - RAM 8GB - OS1 Mac Lion 1.7.3 - OS2 Windows 7 SP1
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iPhone 4 16Go : iOS 5.1
New iPad 32Go Wifi: iOS 5.1 (ordered)
PC CPU Intel 2600K - GPU ATI 5870 - RAM 8GB - OS1 Mac Lion 1.7.3 - OS2 Windows 7 SP1
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post #26 of 92
Quote:
Originally Posted by Lzdanp13 View Post

Every time you use Digitimes as source material for an article you lose credibility with me. I will no longer read any material you publish of this kind. Using Digitimes as a foil to make it ok to spread baseless rumors is not cool.

Or maybe you… just shouldn't read the Digitimes stuff if it brings up some sort of primal rage or whatever inside you.

Quote:
Originally Posted by BiGBBL View Post

$299 for and iPad 2 I think it is possible… …I wish that Apple will replace the 16GB models with 32GB…

Makes ZERO sense. Why would Apple create an 8GB tablet? That's insane. Why would they have a $200 gap? That's insane.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

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post #27 of 92
Quote:
Originally Posted by aBeliefSystem View Post

If that Fire was selling at $150 then it might have made a loss.

Many $100 Cortex A8 capacitive tablets are now available offering more. So it might be considered very bad housekeeping by Amazon to make a loss on a $200 sale.

The most interesting event so far this year is certainly the Playstation Vita. Unless Apple has got it's actual together this Vita CPU will also be in the iPad 3.
So now we have a dedicated games device that can also be a smartphone.

The interesting question now is, will cheap 99c apps be preferred on a $650+ device to $15+ real games on this $350 one?
5" certainly creates overlap between phoe and tablet so where is the 5" Apple A6 iPod touch?

The market has already answered your question for you, the Vita is in serious trouble.
post #28 of 92
Quote:
Originally Posted by TheShepherd View Post

I think that there will end up with 2 different tablet markets. The premium market like the iPad which will offer great video and etc.

And the tablet priced @ $100 or less that will be what the average person will use around the home to control TV, receive email, read ebooks and anything else that won't require a great screen or a lot of processing power.

I think the Kindle Fire is more comparable to the iPod Touch.
post #29 of 92
Quote:
Originally Posted by A Grain of Salt View Post

In the same way they would never compete with those cheapass Android phones by offering a $99 iPhone and .99c iPhone. Nope, they would never do that...Oh wait!

http://www.wireless.att.com/cell-pho...e-packages.jsp

Bad comparison; iPhones are heavily subsidized by the carriers and Apple's margins on that phone are pretty high.
post #30 of 92
Quote:
Originally Posted by BiGBBL View Post

$299 for and iPad 2 I think it is possible and Apple may introduce one with low memory, a Wifi model with 8GB of storage

personally I wish that Apple will replace the 16GB models with 32GB at the same price, and keep the iPad 2 wifi as new low model with 8GB, which will be a great deal for all, just like the iPod touch

and maybe add the 128GB model, so we can have something like this:


Do you work for DigiTimes?
post #31 of 92
Quote:
Originally Posted by Sandyf View Post

Apple is currently selling their refurbished 16GB iPad2 for $419. Can't see them selling it new for $299, even if it's last years model. But it would be sweet!

Bingo -- I think the refurb price is exactly the place to look for clues as to how low they might take the base model iPad2. So my guess is that $399 is most likely with $349 being possible. But $299 seems like a bridge too far.
post #32 of 92
$299.00? Not likely! I got a good chuckle from that though...

Okay, so maybe, just maybe we'll see the iPad 2 for $399 once the iPad 3 ships, but we might be even more likely to see the iPad 2 remain at $499 and the iPad 3 show up at $599 for the entry model.
post #33 of 92
It may be another year before Apple formally addresses the Kindle Fire threat. The Fire is a nice toy, but the Fire only emphasizes what a value the iPad is. Amazon is working hard to bring the next version of the Fire out this year, but if they are going to maintain the budget price, they are going to have to cut corners again.
post #34 of 92
Quote:
Originally Posted by Tallest Skil View Post

Or maybe you just shouldn't read the Digitimes stuff if it brings up some sort of primal rage or whatever inside you.



Makes ZERO sense. Why would Apple create an 8GB tablet? That's insane. Why would they have a $200 gap? That's insane.

With iCloud I don't think 8 GB is insane - though I doubt they would go backwards.
post #35 of 92
Quote:
Originally Posted by Johnny Mozzarella View Post

I think the Kindle Fire is more comparable to the iPod Touch.

I think that is silly. The iTouch runs all the iOS apps. The Kindle is MUCH more limited.

The iTouch and the iPad are basically the same thing, but with different screen sizes. The Kindle is a whole different class of product.
post #36 of 92
Quote:
Originally Posted by joelsalt View Post

With iCloud I don't think 8 GB is insane

With, at best, a 2GB download cap, it's insane. Wi-Fi isn't pervasive and 3G (particularly since the hardware isn't built in) costs too much to be more useful than an additional 8 or 24 GB.

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply

Originally Posted by Slurpy

There's just a TINY chance that Apple will also be able to figure out payments. Oh wait, they did already… …and you’re already f*ed.

 

Reply
post #37 of 92
Quote:
Originally Posted by Tallest Skil View Post

Makes ZERO sense. Why would Apple create an 8GB tablet? That's insane. Why would they have a $200 gap? That's insane.

My point is, if Apple gonna do like last year at the launch of the iPad2, keeping old models with discount of $100, the 16GB it will be automatically at $399, since the 16GB is the best selling model. So this way Apple will empty their stock while having new low cost model (8GB) will be a perfect choice for customers who are looking for a good compromise over competition.. it's just a personal opinion


Quote:
Originally Posted by Johnny Mozzarella View Post

Do you work for DigiTimes?

No
iPhone 4 16Go : iOS 5.1
New iPad 32Go Wifi: iOS 5.1 (ordered)
PC CPU Intel 2600K - GPU ATI 5870 - RAM 8GB - OS1 Mac Lion 1.7.3 - OS2 Windows 7 SP1
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iPhone 4 16Go : iOS 5.1
New iPad 32Go Wifi: iOS 5.1 (ordered)
PC CPU Intel 2600K - GPU ATI 5870 - RAM 8GB - OS1 Mac Lion 1.7.3 - OS2 Windows 7 SP1
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post #38 of 92
The iPod touch uses a budget screen and even the 4S one is not up to iPhone 4 standard.

So switching te iPad 2 to a budget screen may well coincide with a price drop.
Obviously it won't be $300, at least not unless the iPad 3 is a big and different 11.6"
We like our 99c apps so too many would choose the $300 iPad versus the $500 iPad.
Not good business so $400 is certainly the price.

However, if the iPad 3 screen is also very cheap too, then $400 and $300 is feasible.
That;s with a cheap new screen for the iPad 2.
This is only really possible if Apple moves away from LG and Samsung for top notch screens.
post #39 of 92
Kindle and iPad are not in the same league. Kindle is more comparable to the iPod touch. All Apple needs to do is create a larger version of the iPod; 6-7". Then we would have a Kindle competitor that could be priced fairly close, maybe 249-299. This is why I believe they didn't update the iPod touch this Fall - they're waiting to introduce new models in the first quarter of 2012 along side the new iPad, and yes, I also believe they will in fact keep the iPad 2 around as the base model at $399-449.
Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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Disclaimer: The things I say are merely my own personal opinion and may or may not be based on facts. At certain points in any discussion, sarcasm may ensue.
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post #40 of 92
Quote:
Originally Posted by pmz

Doesn't exactly take genius to figure this out. But yes, you're right.

Indeed.

Quote:
Originally Posted by pmz

And next year, I think the iPad 2 might continue as well, at $299.

I don't know about that.
Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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Citing unnamed sources with limited but direct knowledge of the rumoured device - Comedy Insider (Feb 2014)
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