Apple exec Phil Schiller defends $329 entry price of iPad mini

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  • Reply 221 of 241
    anonymouseanonymouse Posts: 6,950member

    Quote:

    Originally Posted by igriv View Post


     


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    The real point is that the price to a consumer of a smart phone (with contract) is AT LEAST $2500 PLUS the price of the actual device. People are willing to get iPhones, whose cost to them, therefore, is around $3K for two years. If they can do that, they can easily afford $300 for an iPad for their kid.


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    We see this argument a lot, and it has a certain appeal and plausibility, it even seems a model of rationality. However it's not only flawed, but is completely at odds with the way people perceive and react to these costs. First of all, it's not at all necessarily the case that someone who is able to afford a smartphone and contract can also afford "$300 for an iPad for their kid." Secondly, people perceive these costs entirely differently when they are incurred over time vs. when they have to be paid all at once. The overall cost is not nearly as important as the immediate cost when cash flow is an issue. Lastly, a smartphone with contract is easily rationalized as a necessity, whereas an iPad for their kid is not.

  • Reply 222 of 241
    anonymouseanonymouse Posts: 6,950member

    Quote:

    Originally Posted by boredumb View Post


    And different sizes, which in theory _could_ alter the experience.


    So, to reiterate, we can't know with certainty until we have it in our hands...that's just common sense.



     


    The size difference will alter the experience. What's left to determine is whether it does so in a significant way.


     


    But the point was that argument by analogy requires a valid analogy, examples of things with similar relationships to each other. In other words, comparing apples and oranges does not a good analogy make.

  • Reply 223 of 241
    relicrelic Posts: 4,735member
    dasanman69 wrote: »
    For me the big fail of Android tablets isn't necessarily the build quality, the Xoom was very nicely built, but the lack of tablet specific apps and the main reason I'll purchase a iPad instead of a Android tablet.


    Can I ask which specific apps you were looking for. I currently own a iPad 3 and a Samsung 7.7", I really haven't seen any app that I wanted that wasn't available on both platforms. Now there are apps that run better, I like using Photoshop, watching movies, hearing music for instance on the Samsung because it has an SD card and a filemanager. It makes it easier to transfer media, especially photos from my camera. The iPad is great for music recording, mixing and editing and I love, love the acessories like the Alesis iO Dock.

    The Xoom 2 is defiantly a well built tablet, my sister has one. Her 5 year old son threw it in the pool and after an overnight stay in a bag of rice it was up and running, it is a little on the expensive side though. I think my biggest problem with Android tablets is the rate at which they release updates for them, horrible.
  • Reply 224 of 241
    ssquirrelssquirrel Posts: 1,196member

    Quote:

    Originally Posted by Relic View Post





    Can I ask which specific apps you were looking for. I currently own a iPad 3 and a Samsung 7.7", I really haven't seen any app that I wanted that wasn't available on both platforms. Now there are apps that run better, I like using Photoshop, watching movies, hearing music for instance on the Samsung because it has an SD card and a filemanager. It makes it easier to transfer media, especially photos from my camera. The iPad is great for music recording, mixing and editing and I love, love the acessories like the Alesis iO Dock.


     


    Your latter part certainly answers some of the apps not available on both platforms.  Here are a few examples just in music creation:


    Moog Animoog and Filtatron


    Korg iMS-20, iElectribe, iKaossilator


    Sunrizer


    Peavey AmpKit


    Amplitube iRig


    Phaedra


    DM-1


     


    That is only a very small list.  Android still has terrible latency for music production and until that is resolved, you will continue to see nearly all advances in mobile music production ocur on iOS. 


     


     


    Also, if you want a file manager on iOS, just jailbreak it.  The Camera connection kit is so hard to pick up to get things from an SD card onto your iPad?


     


    PS I'm very curious if we will have a new I/O Dock come out that uses Lightning and packs in upgrades over the original.  I have an iPad 3 and they never released the shim they talekd about for the iPad 3 to fit properly in the I/O Dock, which is the only reason I don't own one yet.  I love the concept and appreciate the capabilities.  Lord know I won't buy the Behringer competition.  Behringer has a bad name when it comes to quality

  • Reply 225 of 241
    igrivigriv Posts: 1,177member

    Quote:

    Originally Posted by Relic View Post





    I just played with a Nexus 7 a couple of days ago, not to shabby for 250. I was expecting something on the cheap side but it's well built, feel's solid and very responsive. I personally wouldn't want one but Google is defiantly doing things right with their hardware. Their new Chromebook ARM for instance at 250 is quite the deal, even the Nexus phone at 350.

    I love the size of the iPad Mini, it hit's that sweet spot for me.


     

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    I am curious: one can buy many netbooks for $199. How is the chrome book better? (not being sarcastic -- I am really curious)


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  • Reply 226 of 241
    sdw2001sdw2001 Posts: 18,027member


    I for one think the price is too high and am quite disappointed.  I'm sure Apple knows what it's doing and will sell a ton of them, but for me personally?  It's probably going to prevent me from making the decision to buy one.  I was actually looking forward to it, but it doesn't make sense at that price point.  I'll do better to wait and buy a used (current) iPad when the "thinner, lighter" models come out.  Or, if I needed one today, I can get a gently used iPad 2 for the same price.  


     


    I would have felt differently if the price was $299.  I still would have liked a WI-FI only version at $249 or $279.  $299 would cause me to think twice, but I still would have pulled the trigger.  But $329 for a tablet that has half the memory of my new iPhone 5?  I don't think so.   I would really be using it as an e-reader and for light browsing.   And for that kind of cheddar, I'll just use my phone, which actually has LTE.  

  • Reply 227 of 241
    apple ][apple ][ Posts: 9,233member

    Quote:

    Originally Posted by SDW2001 View Post


    But $329 for a tablet that has half the memory of my new iPhone 5? 



    You are comparing a $329 device to a device that costs $749. 


     


    $749 is how much an iPhone 5 32GB costs off contract. You may have paid $299 if you are on contract and get the phone subsidized, but by the time your 2 year contract is up, you'll end up paying for it in the end anyhow.

  • Reply 228 of 241

    Quote:

    Originally Posted by Apple ][ View Post


    Well, have fun with your Kindle Fire. 


     


    Though, I have to admit that I find it strange that somebody would make the effort to sign up to a forum in order to announce that they're not going to buy a certain product. But to each his own. Whatever floats your boat.image


     


    As for me, I'm not going to buy a Kindle Fire, it's simply too cheap, and I am offended by cheap products that don't offer what I'm looking for, but I doubt that I'm going to make the effort to sign up to some Kindle forum and state my case. image



    First, I signed up for this forum on an old email I no longer use. Not that that is really relevant; but to calm your fears - no I am not a shill for Amazon.  I have owned a Macbook white (2008), and iPod Classic (Before it was called that) and iPad 2 (which I gave to my GF) and currently own an iPhone 4, an iMac (2010) which is having HD issues and a Macbook Air which is having issues with the volume and brightness buttons.  I love Apple's products but honestly I was disappointed with the iPhone 5 - it's lighter and a bit faster but other than that it's nothing I would give up my 4 to get, but it's a great product if you are moving from the 3.  However, I was extremely disappointed with the price of the mini; I wanted to purchase one for myself and my niece for whom the regular iPad is still a bit too big.  I also saw the build price and the only thing one can point to for the exorbitant cost is Apple's GREED.  They could have easily sold it for $249, $259 but opted to side with GREED.  For a product that is essentially a consumptive device, that is too much.  And the Fire is a fine product.  I am not a fanboy nor do I possess a Napoleonic complex to have to have the most expensive items and I am sure the iPad mini is a great product; but it's just not worth $329 to me.  The Fire does enough and Amazon has enough of an eco-system for my needs.  

  • Reply 229 of 241

    Quote:

    Originally Posted by charlituna View Post


     


    Because nothing generates hits more than a scandal. So when there isn't one, the media will trump one up 



    Rather simplistic analysis

  • Reply 230 of 241


    Originally Posted by xocolatl View Post

    Rather simplistic analysis


     


    The media's not big on complicated answers.

  • Reply 231 of 241
    apple ][apple ][ Posts: 9,233member

    Quote:

    Originally Posted by xocolatl View Post


    First, I signed up for this forum on an old email I no longer use. Not that that is really relevant; but to calm your fears - no I am not a shill for Amazon.  I have owned a Macbook white (2008), and iPod Classic (Before it was called that) and iPad 2 (which I gave to my GF) and currently own an iPhone 4, an iMac (2010) which is having HD issues and a Macbook Air which is having issues with the volume and brightness buttons.  I love Apple's products but honestly I was disappointed with the iPhone 5 - it's lighter and a bit faster but other than that it's nothing I would give up my 4 to get, but it's a great product if you are moving from the 3.  However, I was extremely disappointed with the price of the mini; I wanted to purchase one for myself and my niece for whom the regular iPad is still a bit too big.  I also saw the build price and the only thing one can point to for the exorbitant cost is Apple's GREED.  They could have easily sold it for $249, $259 but opted to side with GREED.  For a product that is essentially a consumptive device, that is too much.  And the Fire is a fine product.  I am not a fanboy nor do I possess a Napoleonic complex to have to have the most expensive items and I am sure the iPad mini is a great product; but it's just not worth $329 to me.  The Fire does enough and Amazon has enough of an eco-system for my needs.  



    That's fair enough, if you truly believe that the price of $329 is not worth it you, then I can understand that. If your main usage for a tablet will be to view some movies, maybe read a book and do some surfing, then the Amazon Kindle will probably work out ok for you. Keep in mind that it is more sluggish than the iPad and you are more limited in what you will be able to do with it, and if you can live with that, then all is good.


     


    I disagree that Apple is greedy though. Amazon and Apple have two very different business plans, and I don't believe that it is smart to sell items at cost or at a loss. Regardless of which tablet you buy, good luck with it!

  • Reply 232 of 241


    delete

  • Reply 233 of 241


    I'm wasn't so disappointed with the $329 price tag as I was the $100 up charge for only 16 more gigs of ram. Apple is charging $6.25 a gig for storage for these devices and with the price of solid state drives now down to $1 per gig paying six times that is tough to swallow. I realize that flash memory can cost more based on quality but it's nowhere near $6 a gig.


     


    I suppose the margins aren't good enough for the hardware so they're making up the cost in storage especially when you figure that that at the prices Apple is charging 1/3 of the cost of the mini is storage. I don't believe that but that's how the math works out.

  • Reply 234 of 241
    fazzterfazzter Posts: 120member


    Off subject a bit but does anyone know what time (PST) they will be available to preorder? I think I am just going with the 16 GB with cellular.

  • Reply 235 of 241

    Quote:

    Originally Posted by faZZter View Post


    Off subject a bit but does anyone know what time (PST) they will be available to preorder? I think I am just going with the 16 GB with cellular.



    Would like to know too. :)

  • Reply 236 of 241
    gatorguygatorguy Posts: 24,585member

    Quote:

    Originally Posted by ash471 View Post


    Apple isn't charging a premium.  The iPad mini is allegedly one of Apple's lowest margin products.  The reality is that Google and Amazon are selling at cost or at a loss to get a user base and they make money other ways (search and content).  That isn't Apple's business model.  Apple makes good products and sells them for a fair price. 



    From several months ago. Costs are likely even lower now:


     


     


    "The early verdict, shared exclusively withAllThingsD, is that the low-end eight gigabyte model of the Nexus 7, which sells for $199, costs $151.75 to build.


    The higher-end 16GB model, which sells for $249, costs $159.25, the difference being the cost of the memory chips inside.


    Andrew Rassweiler, who leads the teardown team at IHS iSuppli, reckons that Google will break even on the 8GB model (Note: which Google themselves generally stated) and will turn a tidy profit on the 16GB model. “Like Apple, Google realizes it can boost its profit margin by offering more memory at a stair-step price point. It’s getting $50 more at retail for only $7.50 more in hardware cost, which sends $42.50 per unit straight to the bottom line.”


    http://allthingsd.com/20120711/googles-nexus-7-costs-152-to-make-ihs-isuppli-teardown-finds/


    Someone even earlier did a build estimate that showed Google's costs to be 20% higher than that, showing they were losing money on it, but they didn't actually tear down a Nexus7.  Instead they guessed what hardware was used, unlike iSuppli which used a shipping device. 


     


     

  • Reply 237 of 241

    Quote:

    Originally Posted by Gatorguy View Post


    From several months ago. Costs are likely even lower now:


     


     


    "The early verdict, shared exclusively withAllThingsD, is that the low-end eight gigabyte model of the Nexus 7, which sells for $199, costs $151.75 to build.


    The higher-end 16GB model, which sells for $249, costs $159.25, the difference being the cost of the memory chips inside.


    Andrew Rassweiler, who leads the teardown team at IHS iSuppli, reckons that Google will break even on the 8GB model (Note: which Google themselves generally stated) and will turn a tidy profit on the 16GB model. “Like Apple, Google realizes it can boost its profit margin by offering more memory at a stair-step price point. It’s getting $50 more at retail for only $7.50 more in hardware cost, which sends $42.50 per unit straight to the bottom line.”


    http://allthingsd.com/20120711/googles-nexus-7-costs-152-to-make-ihs-isuppli-teardown-finds/



     


    This goes right along with my post above except Apple is making double the amount on memory than Google. This is the biggest disappointment for me as a 16 gig model doesn't have the storage I need. Paying a $100 premium for an upgrade that cost Apple less than $10 (approx.) is disheartening and a big turn-off.


     


    Honestly, if there were other options out there that had the build quality of the ipad I would spend my money there but Apple knows they have that market segment and are stiffing their customers by charging a premium for a minor upgrade. These are the things that Apple haters love to point out.


     


    Apple's stock has dropped consistently since the announcement on Tuesday and it's down today. I agree with a lot of people (and obviously a lot of investors) that if they would have hit a $299 price point they would have been in a better position to make more money just in the market alone.

  • Reply 238 of 241

    Quote:

    Originally Posted by p40whk View Post


     


    This goes right along with my post above except Apple is making double the amount on memory than Google. This is the biggest disappointment for me as a 16 gig model doesn't have the storage I need. Paying a $100 premium for an upgrade that cost Apple less than $10 (approx.) is disheartening and a big turn-off.


     


    Honestly, if there were other options out there that had the build quality of the ipad I would spend my money there but Apple knows they have that market segment and are stiffing their customers by charging a premium for a minor upgrade. These are the things that Apple haters love to point out.


     


    Apple's stock has dropped consistently since the announcement on Tuesday and it's down today. I agree with a lot of people (and obviously a lot of investors) that if they would have hit a $299 price point they would have been in a better position to make more money just in the market alone.





    I think that the majority interested in this market segment would agree with you.  And I'm one of those that is starting to doubt Apple's pricing strategy.  I'm a fairly long time user, purchaser and investor.  $299 for 16 GB and $399 for 32 GB would keep out competition better while still keeping profit margins healthy (especially for sales of the 32 GB model).  But I think that Apple's problem is that they can't make them fast enough, so why sell it for cheaper?  If they could solve the supply chain (and QA/QC) issues, then they may have offered it at $299.  Just my 2 cents, as I'm not on the board or a rocket surgeon.

  • Reply 239 of 241
    gary54gary54 Posts: 169member

    Quote:

    Originally Posted by studentx View Post



    "Why does he have to defend it? It's an Apple product. They know how to price them properly."

    Because some people don't understand math...

    A 7.9" iPad with a 4:3 aspect ratio has 40% more screen space than a 7" 16:9 Android tablet.

    We are measuring AREA. Diagonal length is deceptive.

    Who is being deceptive to customers?


     


     


     


     


    There has been some flack about Schiller stating the 7.9 screen is really 8. Visually, you cannot realistically tell apart 7.9 from 8. But you sure can from 7.9 to 7.


     


     


  • Reply 240 of 241
    relicrelic Posts: 4,735member
    igriv wrote: »
    I am curious: one can buy many netbooks for $199. How is the chrome book better? (not being sarcastic -- I am really curious)
     

    Me personally, it's all about quality. The Chromebooks are really well built for the price, not only at that but the OS is very responsive and battery is good. I guess it all comes down to taste, most Netbook's though I find to be mostly junk.
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