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Apple will continue to sell 16GB Wi-Fi iPad 2 for $399, 3G model for $529

post #1 of 40
Thread Starter 
In addition to the new third-generation iPad available starting at $499, Apple will continue to sell the iPad 2 in a 16-gigabyte Wi-Fi-only model for $100 less, at $399, while the 3G-capable model is now $529.

In introducing the newly priced iPad 2, Apple's senior vice president of Worldwide Product Marketing, Phil Schiller, noted that the lower entry cost would allow more schools, students and general users to buy the touchscreen tablet.

First released in 2011, the iPad 2 will continue to be known by that name. But the new third-generation iPad, featuring a Retina Display, faster processor and LTE 4G connectivity, is simply known as "the new iPad."

Leading up to Wednesday's event, rumors suggested Apple would continue to sell the iPad 2 at a discounted price, much like Apple has previously done with its iPhone lineup. But it was expected that the iPad 2 would have a smaller, 8-gigabyte capacity, so the 16-gigabyte size of the $399 iPad 2 is somewhat of a surprise.

Apple will also continue to sell the lowest-capacity 3G-capable iPad 2. It has also seen its price reduced by $100, making it $529.




The new, expanded iPad lineup will start with the iPad 2 at $399, with the 16-gigabyte third-generation iPad starting at $499. The third-generation iPad maxes out at 64 gigabytes for $699, while 4G LTE models carry a $130 premium over the Wi-Fi-only models.

[ View article on AppleInsider ]
post #2 of 40
That's a hell of a deal. I'll be getting hold of one of these ASAP.
post #3 of 40
Alright, let's pounce on the negatives...

"Not cheap enough."

"No 3D."

"Where's the holodeck?"

"No serial/parallel/12 USB ports?"
post #4 of 40
Quote:
Originally Posted by PaulMJohnson View Post

That's a hell of a deal. I'll be getting hold of one of these ASAP.

Not bad considering I told mine for 350 two weeks ago.
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 40
Quote:
Originally Posted by Ireland View Post

Not bad considering I told mine for 350 two weeks ago.

Lucky you! My sister tried selling hers and could not do it! Unlucky!
post #6 of 40
Mine went for $400 last week. I was assuming that was still a good deal because of the bestbuy price drop. Guess I was wrong.

Crazy.
post #7 of 40
WHY does the upgrade to 4G LTE, STILL cost $130???

You would think that the cost for these would have come down by now...
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post #8 of 40
Quote:
Originally Posted by Ireland View Post

Not bad considering I told mine for 350 two weeks ago.

Good move on your part... I wouldn't be able to not have an iPad for that length of time...

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post #9 of 40
Quote:
Originally Posted by LMGS View Post

WHY does the upgrade to 4G LTE, STILL cost $130???

You would think that the cost for these would have come down by now...

Apple likes to nickel and dime its customers like that, but the strategy clearly works given it's not the biggest company in the world.
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 #10 of 40
Quote:
Originally Posted by SpamSandwich View Post

Good move on your part... I wouldn't be able to not have an iPad for that length of time...

Actually it's funny you say that, Spam, because it won't be out here until about June I assume, and I wanted to do a sort of an experiment to see what life was like without an iPad after being 18 months with 2 of them.

Update: March 23!
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 #11 of 40
Quote:
Originally Posted by mcbrided View Post

Mine went for $400 last week. I was assuming that was still a good deal because of the bestbuy price drop. Guess I was wrong.

Crazy.

I am assuming you mean good deal for you but not for the buyer? Because sounds like you got a pretty sweet deal.
post #12 of 40
And the resale value just dropped $100 for existing 16G iPad2's....
post #13 of 40
Quote:
Originally Posted by LMGS View Post

WHY does the upgrade to 4G LTE, STILL cost $130???

Cause people keep upgrading year-old hardware and paying the price they ask.
post #14 of 40
Quote:
Originally Posted by LMGS View Post

WHY does the upgrade to 4G LTE, STILL cost $130???

You would think that the cost for these would have come down by now...

Are you kidding? The analyst I saw said they were amazed the prices didn't go up. The iPad now has a higher resolution screen than my Macbook Pro, a quad core processor, and an 1080P camcorder. Plus what you are talking about is new technology. This is the first iPad with 4G/LTE.

I am fairly sure Apple's margins will be DOWN on the new iPad.
post #15 of 40
Glad the iPad 2 didn't go down to 8GB. I hope 2012 will be the end of 8GB devices.
post #16 of 40
Well I can't even get to the site to buy it. So...
post #17 of 40
Quote:
Originally Posted by foobar View Post

Glad the iPad 2 didn't go down to 8GB. I hope 2012 will be the end of 8GB devices.

I hope so, but I can see how the iPhone 4 might live on as a "free" 8GB device come Autumn. People buying that model aren't caring about capacity as much and from what I've seen in the smartphone market 8GB is still holding strong as a very common capacity.

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post #18 of 40
Quote:
Originally Posted by Ireland View Post

Not bad considering I told mine for €350 two weeks ago.

Same here but last week and different currency. Actually had 5 buyers lined up! Thanks rumor mill!
post #19 of 40
Next year will we have "the new iPad" and "the old iPad" now that model numbers are gone?

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post #20 of 40
Quote:
Originally Posted by rednival View Post

Are you kidding? The analyst I saw said they were amazed the prices didn't go up. The iPad now has a higher resolution screen than my Macbook Pro, a quad core processor, and an 1080P camcorder. Plus what you are talking about is new technology. This is the first iPad with 4G/LTE.

I am fairly sure Apple's margins will be DOWN on the new iPad.

This is not technically a quad core processor. It has a quad core GPU and a dual core CPU. The A5X would most commonly be referred to as a dual core processor because of the CPU, but I guess you could technically call it a hexa-core processor if you wanted to count both GPU and CPU.

I don't know about the margins. Their cost for most of the components (such as storage) have been dropping and they may have dropped enough to make up for the more expensive screen. Note, also, that 'margin' isn't a fixed number. For most Apple products, the margin at release is at one level, but the margin increases over time until they release a new model.
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post #21 of 40
Quote:
Originally Posted by jd_in_sb View Post

Next year will we have "the new iPad" and "the old iPad" now that model numbers are gone?

Nah, it'll just look like the iPod touch page does now.
post #22 of 40
Quote:
Originally Posted by LMGS View Post

WHY does the upgrade to 4G LTE, STILL cost $130???

You would think that the cost for these would have come down by now...

Apparently Moore's Law does not apply to IP licensing.
post #23 of 40
Quote:
Originally Posted by quinney View Post

Apparently Moore's Law does not apply to IP licensing.

LOL Awesome!

Not to mention it's not just the same capabilities but adding more than 10x the max theoretical speed with a lot new tech in a new Qualcomm chip. I'm glad they added it to the iPad before the iPhone for the first time ever so we can vet baseband firmware issues 6 months before the iPhone launches.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"The real haunted empire?  It's the New York Times." ~SockRolid

"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #24 of 40
A more competitive would be $299, but since there's no real competitive devices for iPad...
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post #25 of 40
Quote:
Originally Posted by Tallest Skil View Post

Nah, it'll just look like the iPod touch page does now.

I just love the decision, I hate model numbers or names, and Apple doesn't need them.
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post #26 of 40
Quote:
Originally Posted by lvidal View Post

I just love the decision, I hate model numbers or names, and Apple doesn't need them.

True, in fact I have been surprised they have used model numbers for the iPhone and iPad, they never called the iMac, the iMac 5, it has always simply been iMac.
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post #27 of 40
Who in the their right mind wouldn't just save up the extra $100 to get the 3rd gen iPad vs an iPad 2? The iPad 2 should be 8gb at $299 and just destroy the low end market segment.
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post #28 of 40
Quote:
Originally Posted by ecking View Post

Who in the their right mind wouldn't just save up the extra $100 to get the 3rd gen iPad vs an iPad 2? The iPad 2 should be 8gb at $299 and just destroy the low end market segment.

It would also cannibalize sales of the new iPad. I think this is the main reason it wasn't priced lower. Apple could have easily priced it at $299 and wiped everyone else out of the game. But they'd prefer people opt for the new model, which is understandable.
post #29 of 40
Quote:
Originally Posted by ecking View Post

Who in the their right mind wouldn't just save up the extra $100 to get the 3rd gen iPad vs an iPad 2? The iPad 2 should be 8gb at $299 and just destroy the low end market segment.

You can apply the same logic to any product but us that a smart business move? I would surely pull some sale from the Kindle Fire but it'd still 50% more expensive so why not sell the iPad 2 for $199. Or how about $149 to completely undercut the completion? Or what about lowering the price of the iPad 3 acros the board?

In reality you want to maximize profits so if you know you'll sell the lot at $399 lowering it to $299 reduces net profit by $100 x n, where n is the number of units sold.

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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"There is no rule that says the best phones must have the largest screen." ~RoundaboutNow

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post #30 of 40
Quote:
Originally Posted by ecking View Post

Who in the their right mind wouldn't just save up the extra $100 to get the 3rd gen iPad vs an iPad 2? The iPad 2 should be 8gb at $299 and just destroy the low end market segment.

Quote:
Originally Posted by Slurpy View Post

It would also cannibalize sales of the new iPad. I think this is the main reason it wasn't priced lower. Apple could have easily priced it at $299 and wiped everyone else out of the game. But they'd prefer people opt for the new model, which is understandable.


Fair point.

Quote:
Originally Posted by SolipsismX View Post

You can apply the same logic to any product but us that a smart business move? I would surely pull some sale from the Kindle Fire but it'd still 50% more expensive so why not sell the iPad 2 for $199. Or how about $149 to completely undercut the completion? Or what about lowering the price of the iPad 3 acros the board?

In reality you want to maximize profits so if you know you'll sell the lot at $399 lowering it to $299 reduces net profit by $100 x n, where n is the number of units sold.

It might well destroy margins entirely.


There is another point though. If you reduce the old model's price you reduce the sales price of all old models significantly but Apple is hoping it's entire installed base will upgrade. Think about the cost of any electronic device ( or other device) you can sell on, the cost of an upgrade is the depreciation of the last device. At the moment the cost of updating from an iPad 2 to an iPad (3) is about $200, selling the older model cheaper would increase that differential.

( This low cost of an upgrade explains why these guys will fly off the shelf).
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post #31 of 40
Apple should have priced it even lower. $329 would have made it more appealing.

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post #32 of 40
Quote:
Originally Posted by Aizmov View Post

Apple should have priced it even lower. $329 would have made it more appealing.

It flew off store shelves at $499. It doesn't need to be cheaper. They're not trying to sell the iPad 2, they're trying to sell the iPad 3.
post #33 of 40
Quote:
Originally Posted by Aizmov View Post

Apple should have priced it even lower. $329 would have made it more appealing.

I feel the iPad 2 pricing is less about Apple and more about competitors. The cost to undercut Apple's prices is now $100 less than before. This is going to make it increasingly difficult to compete in the tablet space just on price, especially since the competition hasn't really caught up to the iPad 2 yet, never mind the new iPad.
post #34 of 40
Quote:
Originally Posted by rednival View Post

Are you kidding? The analyst I saw said they were amazed the prices didn't go up. The iPad now has a higher resolution screen than my Macbook Pro, a quad core processor, and an 1080P camcorder. Plus what you are talking about is new technology. This is the first iPad with 4G/LTE.

I am fairly sure Apple's margins will be DOWN on the new iPad.

I'm shocked these Apple haters continue polluting the internt's blogs with twisted and negatively spun facts.

About the margins... I was really wondering about that because it also seems they have a newer or newest 4G chip because if I understood the presentation correctly it shows that this new chip has more bands than any other on the market! Pus they would have to find a way to get the same am punt of juice with all see new juice-hogging features.

That new screen must be a power thirsty touchscreen, then there is the quad-core CPU, and the 4G chip? And they. Kept the same 10 hour battery life?

Apple really is doing something right... I'm willing to bet Sammy and all the other copycats are popping their pants right now fiercely working on yet again copying Apple...y didn't make much of a splash meaning they gave it only a m inordinate spec boost p lus cameras and a new design... This year the skipped the new design and beefed up the entire package!

But I'm willing to bet they paid billions up front in order to get the lowest price on the parts/components. Tim cook is a genius supply chain, well-genius!

I'd like to think they. Kept the same margins so they can keep us Apple-loyalties happy and the competition crying over not being able to duplicate the success despite being shown how it's done!!, just goes to show they literally, "just don't get it"!!!!!!!!!!!

With the iPad 2 the
post #35 of 40
Quote:
Originally Posted by SolipsismX View Post

I hope so, but I can see how the iPhone 4 might live on as a "free" 8GB device come Autumn. People buying that model aren't caring about capacity as much and from what I've seen in the smartphone market 8GB is still holding strong as a very common capacity.

It's really amazing that Apple was able to secure the top three selling phones spot in the smartphone market.... The iPhone 3GS was the third or fourth best selling hone at Ll major carriers tht sold it!!! And it is 3 years old now!

Now just imagine what the market share pols like when Apple offer the iPhone 4 and sells it for FREE!!!! I think competitors will be in for a shock when the top 3 selling smartphones are all iPhones and I have a feeling at the iPhone 4 will sell absurd amounts of handsets once it's offered for free... I can't imagine anybody, unless they re totally broke hardcore geeks, actually choosing another phone if they. Ar shopping for a free smartphone!

In any case... GO APPLE!!!!!
post #36 of 40
Quote:
Originally Posted by jragosta View Post

This is not technically a quad core processor. It has a quad core GPU and a dual core CPU. The A5X would most commonly be referred to as a dual core processor because of the CPU, but I guess you could technically call it a hexa-core processor if you wanted to count both GPU and CPU.

I don't know about the margins. Their cost for most of the components (such as storage) have been dropping and they may have dropped enough to make up for the more expensive screen. Note, also, that 'margin' isn't a fixed number. For most Apple products, the margin at release is at one level, but the margin increases over time until they release a new model.

That Apple will undoubtedly for sure sell more non-wifi-only units this time around because they are offering 4G...

Most people who were wiling to shell out cash for an iPad with a cellular connection often opted for a mobile hotspot that was 4G... Or aka LTE.

Now I think if Apple did have to settle for slightly lower margins then they might be banking on more people opting for the 4G versions which also undoubtedly have higher margins!

In any case...

GO APPLE!!!! WooHoo!!

Beat them copycats I not the ground where they belong!!!
post #37 of 40
Quote:
Originally Posted by taugust04 View Post

I feel the iPad 2 pricing is less about Apple and more about competitors. The cost to undercut Apple's prices is now $100 less than before. This is going to make it increasingly difficult to compete in the tablet space just on price, especially since the competition hasn't really caught up to the iPad 2 yet, never mind the new iPad.

You just made a very nice observation here....

The major of tablet copycats R struggling to match the iPads current prie and feature set...

Amazon realized Apple's advantages and didn't even bother battling for tablet profits... It's possibly even taking a loss or no margin a all just to be able to sell more content...
Now there is a sensible competitor... Good Ol Sammy just figure it would cop Apple in the most literal sense of the word and as pan analogy, copied Apple like a photo copy!

And even when most or all tablet copycats are barely catching up or even gaining somoe ground in hopes of even getting close.... Here comes Apple with the new iPad and just destroys any little hopes or dreams of being a player in the tablet market.
post #38 of 40
Quote:
Originally Posted by Tallest Skil View Post

It flew off store shelves at $499. It doesn't need to be cheaper. They're not trying to sell the iPad 2, they're trying to sell the iPad 3.

Apple could easily claim that any market share they lost, or decreased percentage of overall tablet market could easily be accredited to the HP TouchPad, RIM Playbook, or even Sammy tabs which had to slash prices by HALF OR MORE just to the able to get rid of inventory.

Now I'm no margins genius but I know that if these guys were hoping for anywhere between 10-40 percent margins and they slash prices by half or more then they not only lost their expected profit margins but also took in a significant loss as these tablets cost more than 50 percent of their retail JUST in parts or components and not even considering R&D and manufacturing and shipping and receiving and supply chain...

Tis yer. I think Apple will reclaim that market share they lost because that is not a sustainable business model!!!

Nobody can lose that much cash and just say "hey let's do it again" without answering to angry shareholders!!,
post #39 of 40
Quote:
Originally Posted by Ireland View Post

Apple likes to nickel and dime its customers like that, but the strategy clearly works given it's not the biggest company in the world.

What are you talking about Apple is enormous in every definition. Size of total land owned, employees, sales, profit what would you constitute as big now and days, GE?
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post #40 of 40
Quote:
Originally Posted by Relic View Post

What are you talking about Apple is enormous in every definition. Size of total land owned, employees, sales, profit what would you constitute as big now and days, GE?

I'd guess - just a radical thought here - that given the rest of the context of Ireland's text not was a typo for now.
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