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post #81 of 92
Quote:
Originally Posted by GregInPrague View Post

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

Apple Store Soho, friend of mine received it after purchasing iPad.
post #82 of 92
Quote:
Originally Posted by Ireland View Post

I don't know about that.

No one does, but look how well it's worked for Apple with the iPhone 3GS. It's 2012, and that product originally released in 2009 is still around still available and at an unbeatable price. I numbers recently showing Apple selling more 3GS during the time of $99 > $49 > $Free > $1 than they ever did while it was the headlining iPhone at $199 and $299.

The 3GS was the perfect device to make into a lost cost iPhone, and it's now been on sale for 3 years.

Come March will only be one year the iPad 2 has headlined. Time to begin tackling the low price range, slowly but surely. iPad 2 for 2012 will keep its 16 GB WIFI model (there will NOT be an 8 GB) and will continue to sell as the entry level iPad at $399. A great deal if you ask me. The iPad 3 will be the main event and will push out at the same storage capacities and and same prices with no changes to those aspects whatsoever. I always feel like its possible that "this time" there could be 128 GB iPad, but with iCloud there is simply no reason for one, so I think Apple will wait until their Anobit purchase pays off and they can pump out high-capacity SSD at rock bottom prices.

And then next year, iPad 4 in 2013, will be a spec bump over iPad 3, same prices and storage, but with 1 model of the iPad 3 remaining at $399, and possibly "for a limited time" iPad 2 remaining inventory available at $299. If Apple sees any advantage at that point, they'll decide whether to keep producing new iPad 2 to sell at that price.

Possibly, in 2013 they may even introduce a 4G iPad for FREE with a 2 year 4G service agreement. I would absolutely buy one of those in 2013.
post #83 of 92
Quote:
Originally Posted by Cory Bauer View Post

Do you really believe an 12-month old iPad with 1024x768 screen/dual-core A5 chip should only be $100 cheaper than a brand new iPad with 2048x1536 screen/Quad-core A6 chip?

Yes absolutely. Nobody gives a sht about those things. This is the old one at this price, this is the new one at this price. Do you understand how marketing works AT ALL?
The cheaper model gets people thinking about buying, then when they look more closely, they either opt to save money on the old model, or decide that it's worth the extra hundred to get the newest. Choices.
post #84 of 92
Quote:
Originally Posted by ElectroTech View Post

I agree. Just recently, we saw the cost of components and manufacturing for the iPad 2. It was around $281 or something wasn't it? So this analyst figures Apple will make $8 on each one and pay their sales team too?

EVEN IF iSupply's estimate of $281 for parts is correct, that doesn't mean that Apple makes $18 by selling them at $299.

The component cost is only part of the total manufacturing cost. You have to add in:
- Labor
- Manufacturing overhead (facilities, lighting, electricity, insurance, etc)
- Shipping
- Labor overhead costs (taxes and, in China, dormitories)
- Quality inspection
- Rework
- Rejects
- Tech support costs
- And more
As a very rough guess, if the component cost is $281, I would venture that the total manufacturing cost would be in the $350-375 range.

And that's only the direct manufacturing costs. Add in R&D, marketing, and selling costs before Apple makes a profit.

Now, of course, many (if not most) of the components are probably less expensive today than they were when that estimate was done, so it's probably not a very useful estimate, anyway.
"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
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"I'm way over my head when it comes to technical issues like this"
Gatorguy 5/31/13
Reply
post #85 of 92
Aside from jragosta's wonderful post above, the other primary reason they'll never drop it $200?

Legitimization.

What would possess Apple to even so much as acknowledge their competitors, much less price the iPad as though they were a "threat"?

"Oh, Apple dropped the iPad to the price of the Kindle Fire. They MUST be hurting because of the Fire; let's take a look at how good a tablet that is…"

O~R…

"Hey, the iPad 2's cheaper now! I think I'll get one… hey… the iPad THREE is out and it's only $100 more! I'll save for that!"

Originally Posted by asdasd

This is Appleinsider. It's all there for you but we can't do it for you.
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Originally Posted by asdasd

This is Appleinsider. It's all there for you but we can't do it for you.
Reply
post #86 of 92
Quote:
Originally Posted by pmz View Post

No one does, but look how well it's worked for Apple with the iPhone 3GS. It's 2012, and that product originally released in 2009 is still around still available and at an unbeatable price. I numbers recently showing Apple selling more 3GS during the time of $99 > $49 > $Free > $1 than they ever did while it was the headlining iPhone at $199 and $299.

The 3GS was the perfect device to make into a lost cost iPhone, and it's now been on sale for 3 years.

Come March will only be one year the iPad 2 has headlined. Time to begin tackling the low price range, slowly but surely. iPad 2 for 2012 will keep its 16 GB WIFI model (there will NOT be an 8 GB) and will continue to sell as the entry level iPad at $399. A great deal if you ask me. The iPad 3 will be the main event and will push out at the same storage capacities and and same prices with no changes to those aspects whatsoever. I always feel like its possible that "this time" there could be 128 GB iPad, but with iCloud there is simply no reason for one, so I think Apple will wait until their Anobit purchase pays off and they can pump out high-capacity SSD at rock bottom prices.

And then next year, iPad 4 in 2013, will be a spec bump over iPad 3, same prices and storage, but with 1 model of the iPad 3 remaining at $399, and possibly "for a limited time" iPad 2 remaining inventory available at $299. If Apple sees any advantage at that point, they'll decide whether to keep producing new iPad 2 to sell at that price.

Possibly, in 2013 they may even introduce a 4G iPad for FREE with a 2 year 4G service agreement. I would absolutely buy one of those in 2013.

The iPhone 3GS isn't "free"; Apple collects over $300 for each one sold and their manufacturing costs today are undoubtedly well below that (iSuppli guesstimated the 3GS cost in 2009 as about $175). There's an enormous difference between a subsidized phone and a tablet that doesn't even offer 3G data. Apple has undoubtedly run the numbers on selling the iPad as a subscription model and, as the numerous "I don't want a second wireless contract" posts that appear here demonstrate, they've correctly concluded that it's not a strong selling point. $20 a month for 24 months comes to less than the current selling price for a WiFi-only iPad. That means that the Wireless providers would have to pay Apple a reasonable price for the hardware of a 3G/4G device and then sell you a $20 monthly service. A six-year-old will tell you that there's no way to make that work financially.
post #87 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!

It doesn't matter, they are buying it because it costs 40% of the lowest price iPad. I don't think Tim Cook wants to just give that very large market to Amazon. I think we will see the iPad2 (as is but with 8gb storage) when the iPad3 is introduced. With iCloud you really don't need more than 8gb unless you have extraordinary requirements.

The only question is what price pint will Apple choose, $249 or $299. Anything higher won't attract the Kindle Fire/Nook Color/Android customers.
post #88 of 92
Quote:
Originally Posted by jragosta View Post

EVEN IF iSupply's estimate of $281 for parts is correct, that doesn't mean that Apple makes $18 by selling them at $299.

The component cost is only part of the total manufacturing cost. You have to add in:
- Labor
- Manufacturing overhead (facilities, lighting, electricity, insurance, etc)
- Shipping
- Labor overhead costs (taxes and, in China, dormitories)
- Quality inspection
- Rework
- Rejects
- Tech support costs
- And more
As a very rough guess, if the component cost is $281, I would venture that the total manufacturing cost would be in the $350-375 range.

And that's only the direct manufacturing costs. Add in R&D, marketing, and selling costs before Apple makes a profit.

Now, of course, many (if not most) of the components are probably less expensive today than they were when that estimate was done, so it's probably not a very useful estimate, anyway.

Apple is giving the iPhone 3gs away for free (although I am sure their carriers are subsidizing it). By now they can produce it much cheaper than when it was introduced. Whether Apple makes much profit on the 3gs is not that relevant when you consider the huge numbers of new customers gained. These are now Apple customers that never would have been otherwise. User satisfaction surveys indicate that at least 80% of them will remain Apple customers for life.
post #89 of 92
Quote:
Originally Posted by AppleInsider View Post

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.

I agree. I am looking for a $299 (or if at all possible, $249) for the iPad 2 which would be reduced to 8gb of storage (like Apple has done with the iPhone 3gs and 4). If Apple can manage any profit at all at $249 it would be very much to its advantage to do it.
post #90 of 92
Quote:
Originally Posted by Thorntondw View Post

It doesn't matter, they are buying it because it costs 40% of the lowest price iPad. I don't think Tim Cook wants to just give that very large market to Amazon. I think we will see the iPad2 (as is but with 8gb storage) when the iPad3 is introduced. With iCloud you really don't need more than 8gb unless you have extraordinary requirements.

The only question is what price pint will Apple choose, $249 or $299. Anything higher won't attract the Kindle Fire/Nook Color/Android customers.

Unless and until all content, games included, will run from a cloud that's free and widely available, a 8GB tablet is a terrible device. Many games out now are already nearing 1GB and you aren't going to install/delete apps and games with the frequency that you might a movie. 16GB is a minimum for a tablet. An 8GB ceiling is one of the things that makes the Fire a crippled device.

Apple will not be competing in the $299 price arena. That's never been their strategy and they won't start now. Amazon will be releasing their actual tablet sometime this year and it definitely won't be $299.
post #91 of 92
Quote:
Originally Posted by Cory Bauer View Post

Do you really believe an 12-month old iPad with 1024x768 screen/dual-core A5 chip should only be $100 cheaper than a brand new iPad with 2048x1536 screen/Quad-core A6 chip?

I am looking for a $299 (or, if it is at all possible, $249) iPad2 with 8gb storage. This would appeal to the Kindle Fire/Nook Color segment that would otherwise never consider the iPad. Would you buy an iPad2/8gb wifi for $249 instead of a $199 Kindle Fire or $249 Nook Color? I don't think the Kindle Fire or Nook Color could sell in that scenario.
post #92 of 92
Quote:
Originally Posted by Thorntondw View Post

I am looking for a $299 (or, if it is at all possible, $249) iPad2 with 8gb storage. This would appeal to the Kindle Fire/Nook Color segment that would otherwise never consider the iPad. Would you buy an iPad2/8gb wifi for $249 instead of a $199 Kindle Fire or $249 Nook Color? I don't think the Kindle Fire or Nook Color could sell in that scenario.

I'm looking for a $10,000 new 2012 BMW. I won't find one because it's not feasible. Apple's in the business of making money. It does that by selling things that people want to buy at a profit. It's not in the business of hitting every price point. When Asus, HP, etc. were selling netbooks at $300-400 price points you didn't see Apple jumping in because it made no sense from a business perspective. They aren't going to compete with a $199 device that is pretty disappointing overall. And they sure aren't going to shoot themselves in the foot by undercutting their own devices by a $200 margin (and the "8GB iPad" is a non-starter). For Apple to make money on a heavily discounted iPad 2 it would have to be able to make them for about $100. Not a possibility in the real world (Amazon is likely taking a loss on the Fire).
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