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.
This is precisely what I've been saying. And $299 for an 8GB iPad 2 doesn't seem unrealistic if the new $499 iPad 3 packs twice the storage, twice the processors and twice the resolution.
Quote:
Originally Posted by cajun
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.
Unfortunately for Apple the Kindle Fire and the Playbooks/TouchPads being fire-saled may have diminished the perceived value of what a tablet device should cost. I don't believe Apple can afford to spend another year with their budget iPad priced at $499. People may start settling for these cheap 7" dead-end Android tablets, perceiving them as "good enough" for their needs, just as they did with the Windows PC in the 90's.
So, what, do we keep fighting for the reasonable and sane 16GB iPad 2 at $399 or do we just sit back and let people whine about how Apple "lied to them" and how they're "mad at Apple for not releasing an 8GB iPad at $299" when it finally doesn't come out?
So, what, do we keep fighting for the reasonable and sane 16GB iPad 2 at $399 or do we just sit back and let people whine about how Apple "lied to them" and how they're "mad at Apple for not releasing an 8GB iPad at $299" when it finally doesn't come out?
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?
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'm not foolish enough to think that the decision is mine nor anyone's outside of Apple. It just doesn't matter. Do YOU really believe you know exactly how much each iPad costs Apple and that their pricing isn't justified? Do YOU have any evidence to support your "drop by $200 in one go" theory?
Depending upon what the ipad 3 turns out to be, ie quad core cpu with retina display, I'm not sure that the iPad 2 at $399 would sell that well or blunt sales of the Kindle Fire.
It probably would make an upsell to an iPad 3 easier but Apple really ought to try to take some of the momentum out of the Kindle Fire. If a $299 iPad 2 isn't achievable for Apple then hopefully they'll get it down to $349 or $329.
So, what, do we keep fighting for the reasonable and sane 16GB iPad 2 at $399 or do we just sit back and let people whine about how Apple "lied to them" and how they're "mad at Apple for not releasing an 8GB iPad at $299" when it finally doesn't come out?
That's exactly what's going to happen. Apple is always expected to meet every inane prediction from every analyst/blogger out there and if they fail to do so, the stock craters.
That's exactly what's going to happen. Apple is always expected to meet every inane prediction from every analyst/blogger out there and if they fail to do so, the stock craters.
Bingo. I contemplated not putting the wink at the end because of that, but whatever. I guess this way it allows people to read it however they wish.
Probably not off the table, but I think you got the rest of the chart wrong. I see a 16GB iPad 3 coming out and it's too early for a 128GB model.
It's my personal wish list for the next iPads, replacing the 16GB with 32GB at the same price
I don't have a lot of apps on my ipad2 16 but since most the apps I use are between 200MB and 1GB per file, with 4GB of music and pictures, and voila already out of space.. no videos or anything else
between gaming, books, mails, music, video, documents and more, storage became a real problem since with all iPad usage lately, even with iCloud I find little boring to remove and download every time when I run out of space, I think it's time for Apple to launch model with 128GB and consider replacing the 16GB with 32GB.
Do YOU really believe you know exactly how much each iPad costs Apple and that their pricing isn't justified?
Of course not
Quote:
Originally Posted by Tallest Skil
Do YOU have any evidence to support your "drop by $200 in one go" theory?
Evidence, no. Deduction yes.
1. When the iPad 2 was released, Apple and its resellers were clearing out original iPads at $349 - that means after 12 months of being on the market they could cut the price by $150 and still turn a profit.
2. We know from iSuppli teardown's that Apple is incredibly good at keeping their costs consistent; what the iPhone 4S cost in parts at launch is almost exactly what the iPhone 4 cost in parts when it launched. Knowing that, it should be safe to say that whatever Apple packs into the iPad 3, their cost will be consistent with what the iPad 2 cost them the year prior.
3. At this juncture, it's almost a given that the iPad 3 will pack a Quad-core A6 and Retina display - double the performance and resolution of the iPad 2. The iPad thus far has been using the same screen for 2 years; and at this point has got to be relatively inexpensive. the A6 will likely cost Apple this year what the A5 cost them last year, just as the A5 cost them last year what the A4 cost them the year prior.
For these reasons, I believe Apple could sell the current $499 iPad 2 for $349, if they wanted to. And by cutting the storage to 8GB I believe they could shave another $50 off that price - but more for strategy than component costs (Apple has a habit of crippling their entry level model to make it less desirable - especially true when the price is tempting). Offering an older model for $399 when the iPad 3 starts at $499 would be more trouble than it's worth for Apple, logistically. The price difference wouldn't be enough to nab any new markets, as it'd still be twice the price of a Kindle Fire.
For those who said Apple won't sell iPad2 for $299 this Spring, remember iPad1? It was sold for $299 for about a week when iPad2 launched, although it's only through AT&T/Verizon and it's because of clearance.
I think they should start releasing a 128gb iPad model. It is the third generation..and there are many people who do consider iPads to be personal computers. Personally I'm fine with a 16gb model but I know the more advanced each generation gets the more memory people will probably want and/or need.
1. When the iPad 2 was released, Apple and its resellers were clearing out original iPads at $349 - that means after 12 months of being on the market they could cut the price by $150 and still turn a profit.
For these reasons, I believe Apple could sell the current $499 iPad 2 for $349, if they wanted to. And by cutting the storage to 8GB I believe they could shave another $50 off that price - but more for strategy than component costs (Apple has a habit of crippling their entry level model to make it less desirable - especially true when the price is tempting). Offering an older model for $399 when the iPad 3 starts at $499 would be more trouble than it's worth for Apple, logistically. The price difference wouldn't be enough to nab any new markets, as it'd still be twice the price of a Kindle Fire.
You do understand the concept of "clearance," don't you? They don't want to have lingering inventories of old product getting in the way of new product sales, so they forego a larger margin to clear stocks. It's not a long-term business model.
Apple will not produce a 8GB tablet. It just won't happen.
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!
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?
So, what, do we keep fighting for the reasonable and sane 16GB iPad 2 at $399 or do we just sit back and let people whine about how Apple "lied to them" and how they're "mad at Apple for not releasing an 8GB iPad at $299" when it finally doesn't come out?
8gb would be useless..too little storage for a tablet.
Is Apple able to produce so many iPads compared to what they can sell that dropping the price by $200 reasonable to make more money?
Are those clamoring for a $300 iPad doing so becuase it's just above the Nook Color and Kindle Fire? Let me remind you they have 40% of the display area and are vastly limited compared to any iPad.
What does a $300 iPad bring to Apple that they aren't already getting with a $500 iPad. We already know the price point shocked the industry back in 2010 and that no one else was able to compete with them which is why we have 7" models trying to find a niche for an equivalent price.
Doesn't offering a $300 tablet go against the $100 stepping rule Apple uses and locks out a chance for a 5-8" iPod Touch that can fit within that $200 3.5" iPod Touch and $500 iPad?
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?
Not sure, but last March the 32GB 3G/Wi-Fi iPad 2 had a bill of materials of $326.60. That's the model they sell for $729. The Wi-Fi-only 16GB model would obviously be considerably cheaper, even back in March.
Quote:
Originally Posted by daylove22
8gb would be useless..too little storage for a tablet.
What makes it any less useless than an 8GB iPhone, of which Apple sells two? I actually use far less storage on my iPad than I do my phone, because my iPhone allows me to have everything with me. There's no reason for all of my music and photos to be loaded onto a WiFi-only iPad that stays at home on the coffee table.
Comments
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.
This is precisely what I've been saying. And $299 for an 8GB iPad 2 doesn't seem unrealistic if the new $499 iPad 3 packs twice the storage, twice the processors and twice the resolution.
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.
Unfortunately for Apple the Kindle Fire and the Playbooks/TouchPads being fire-saled may have diminished the perceived value of what a tablet device should cost. I don't believe Apple can afford to spend another year with their budget iPad priced at $499. People may start settling for these cheap 7" dead-end Android tablets, perceiving them as "good enough" for their needs, just as they did with the Windows PC in the 90's.
Kindle is more comparable to the iPod touch. All Apple needs to do is create a larger version of the iPod; 6-7".
What, other than the screen size, are the major differences between an iPad and an iTouch?
ISTM that they are the same damn thing, but with different screen sizes.
So, what, do we keep fighting for the reasonable and sane 16GB iPad 2 at $399 or do we just sit back and let people whine about how Apple "lied to them" and how they're "mad at Apple for not releasing an 8GB iPad at $299" when it finally doesn't come out?
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?
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'm not foolish enough to think that the decision is mine nor anyone's outside of Apple. It just doesn't matter. Do YOU really believe you know exactly how much each iPad costs Apple and that their pricing isn't justified? Do YOU have any evidence to support your "drop by $200 in one go" theory?
It probably would make an upsell to an iPad 3 easier but Apple really ought to try to take some of the momentum out of the Kindle Fire. If a $299 iPad 2 isn't achievable for Apple then hopefully they'll get it down to $349 or $329.
So, what, do we keep fighting for the reasonable and sane 16GB iPad 2 at $399 or do we just sit back and let people whine about how Apple "lied to them" and how they're "mad at Apple for not releasing an 8GB iPad at $299" when it finally doesn't come out?
That's exactly what's going to happen. Apple is always expected to meet every inane prediction from every analyst/blogger out there and if they fail to do so, the stock craters.
That's exactly what's going to happen. Apple is always expected to meet every inane prediction from every analyst/blogger out there and if they fail to do so, the stock craters.
Bingo. I contemplated not putting the wink at the end because of that, but whatever. I guess this way it allows people to read it however they wish.
Probably not off the table, but I think you got the rest of the chart wrong. I see a 16GB iPad 3 coming out and it's too early for a 128GB model.
It's my personal wish list for the next iPads, replacing the 16GB with 32GB at the same price
I don't have a lot of apps on my ipad2 16 but since most the apps I use are between 200MB and 1GB per file, with 4GB of music and pictures, and voila already out of space.. no videos or anything else
between gaming, books, mails, music, video, documents and more, storage became a real problem since with all iPad usage lately, even with iCloud I find little boring to remove and download every time when I run out of space, I think it's time for Apple to launch model with 128GB and consider replacing the 16GB with 32GB.
Do YOU really believe you know exactly how much each iPad costs Apple and that their pricing isn't justified?
Of course not
Do YOU have any evidence to support your "drop by $200 in one go" theory?
Evidence, no. Deduction yes.
1. When the iPad 2 was released, Apple and its resellers were clearing out original iPads at $349 - that means after 12 months of being on the market they could cut the price by $150 and still turn a profit.
2. We know from iSuppli teardown's that Apple is incredibly good at keeping their costs consistent; what the iPhone 4S cost in parts at launch is almost exactly what the iPhone 4 cost in parts when it launched. Knowing that, it should be safe to say that whatever Apple packs into the iPad 3, their cost will be consistent with what the iPad 2 cost them the year prior.
3. At this juncture, it's almost a given that the iPad 3 will pack a Quad-core A6 and Retina display - double the performance and resolution of the iPad 2. The iPad thus far has been using the same screen for 2 years; and at this point has got to be relatively inexpensive. the A6 will likely cost Apple this year what the A5 cost them last year, just as the A5 cost them last year what the A4 cost them the year prior.
For these reasons, I believe Apple could sell the current $499 iPad 2 for $349, if they wanted to. And by cutting the storage to 8GB I believe they could shave another $50 off that price - but more for strategy than component costs (Apple has a habit of crippling their entry level model to make it less desirable - especially true when the price is tempting). Offering an older model for $399 when the iPad 3 starts at $499 would be more trouble than it's worth for Apple, logistically. The price difference wouldn't be enough to nab any new markets, as it'd still be twice the price of a Kindle Fire.
Of course not
Evidence, no. Deduction yes.
1. When the iPad 2 was released, Apple and its resellers were clearing out original iPads at $349 - that means after 12 months of being on the market they could cut the price by $150 and still turn a profit.
For these reasons, I believe Apple could sell the current $499 iPad 2 for $349, if they wanted to. And by cutting the storage to 8GB I believe they could shave another $50 off that price - but more for strategy than component costs (Apple has a habit of crippling their entry level model to make it less desirable - especially true when the price is tempting). Offering an older model for $399 when the iPad 3 starts at $499 would be more trouble than it's worth for Apple, logistically. The price difference wouldn't be enough to nab any new markets, as it'd still be twice the price of a Kindle Fire.
You do understand the concept of "clearance," don't you? They don't want to have lingering inventories of old product getting in the way of new product sales, so they forego a larger margin to clear stocks. It's not a long-term business model.
Apple will not produce a 8GB tablet. It just won't happen.
The market has already answered your question for you, the Vita is in serious trouble.
Methinks consumers are hitting shark infested waters with cherry picked negative headlines now being the norm.
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!
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?
So, what, do we keep fighting for the reasonable and sane 16GB iPad 2 at $399 or do we just sit back and let people whine about how Apple "lied to them" and how they're "mad at Apple for not releasing an 8GB iPad at $299" when it finally doesn't come out?
8gb would be useless..too little storage for a tablet.
8gb would be useless..too little storage for a tablet.
Oh, good! That's one. Now only a couple thousand to go.
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?
Not sure, but last March the 32GB 3G/Wi-Fi iPad 2 had a bill of materials of $326.60. That's the model they sell for $729. The Wi-Fi-only 16GB model would obviously be considerably cheaper, even back in March.
8gb would be useless..too little storage for a tablet.
What makes it any less useless than an 8GB iPhone, of which Apple sells two? I actually use far less storage on my iPad than I do my phone, because my iPhone allows me to have everything with me. There's no reason for all of my music and photos to be loaded onto a WiFi-only iPad that stays at home on the coffee table.