FWIW, I can see offering only 16GB and 32GB storage capacities. Eight GB is a little too little, even with iCloud, and 64GB in a Mini model might be overkill for most. The cellular/Wifi and black/white options are givens. It might be tricky for Apple to test different storage options, find some don't sell well, and then drop them later.
Well then I suspect major fail. Right now you can get a 16GB Nexus 7 for $249. How is Apple going to sell 8GB for the same price? That its 40% bigger? Who said they wanted it 40% bigger? I thought the whole point of these smaller tablets was portability; to fit in a jacket pocket; to hold comfortably with one hand, etc.
Well then I suspect major fail. Right now you can get a 16GB Nexus 7 for $249. How is Apple going to sell 8GB for the same price? That its 40% bigger? Who said they wanted it 40% bigger? I thought the whole point of these smaller tablets was portability; to fit in a jacket pocket; to hold comfortably with one hand, etc.
Starting at $249 (which is what it will now be in the US)?! Genius.
I feel very badly for the Androiders all of whom must be starting to have fits right about now...... can't wait to see Bezo's official reaction when he gets the news.
Not genius if its only 8GB. The Nexus is $249 for 16GB.
But 8 GB is nothing. Especially when we're talking books, especially textbooks which can be rather large. I'd rather they start out at 16GB. But I guess they really felt they needed something to hit that $249 price point.
Not genius if its only 8GB. The Nexus is $249 for 16GB.
Google is dropping the 16GB version, replacing it with a 32GB for the rumored price (supposedly confirmed) of $260 US or 200 Euros. The inventory change should happen in the next week or so according to multiple sources. Is that due to Apple's iPad-Mini? Probably IMO.
Offering up a non-expandable 8GB model to show they can compete with Google and Amazon even on price, but planning around most buyers paying a good premium for increasing storage to something more reasonable? A $100 upcharge for a relatively inexpensive component cost on another 8GB of storage is where the money is. Competitors are getting what, $50 or so for the same bump?
I previously thought it would not be practical to offer an 8GB model, but your points make sense.
It is at once symbolic with regard to competitors' pricing structures and also pragmatic with respect to its appeal to those for whom even an additional $50 could influence a buying decision out of Apple's favor, or who have other devices where photos and music live, or who will primarily use it as a lightweight eReader, Apple TV remote, etc., or any combination of the above. It's interesting how some of Apple's products can live in their ecosystem as standalone devices or as accessories to other Apple devices.
Your last point really brings home how Apple can "magically" turn a potential 0% margin into an actual 50% margin.
Yes, if they're going the 8GB route just to match some price point. iPod Nano is 16GB, touch is 32GB OR 64GB. Offering an iPad with only 8GB makes no sense. I understand the "premium" for Apple quality/user experience/ecosystem, etc. But 8GB fills up fast. Textbooks and especially magazines take up a lot of space.
Yes, if they're going the 8GB route just to match some price point. iPod Nano is 16GB, touch is 32GB OR 64GB. Offering an iPad with only 8GB makes no sense. I understand the "premium" for Apple quality/user experience/ecosystem, etc. But 8GB fills up fast. Textbooks and especially magazines take up a lot of space.
It makes sense in so far as it gets them a headline price below $300. But as usual with Apple, the base model is the one they don't want you to buy because it has the lowest margin. Higher capacity and cellular models is where they'll make their serious margin.
I do think 8GB will make for a bad experience though for reasons you suggest. You lose around 1GB for the OS leaving 7GB for all your apps and content. Not enough with retina-bundled apps using a lot more space now for all iOS users.
Google is dropping the 16GB version, replacing it with a 32GB for the rumored price (supposedly confirmed) of $260 US or 200 Euros. The inventory change should happen in the next week or so according to multiple sources. Is that due to Apple's iPad-Mini? Probably IMO.
Assuming they were just breaking even before, does that mean Google will lose about $40 per device just to be competitive with a device that hasn't yet shipped? The answer seems to be yes. So sad, so desperate.
I hope Apple doesn't plan on pricing a tablet with a 7.85" screen , 1024x768 resolution, 8GB flash storage and A5 SoC for ~$300.
That's just insulting, especially when you consider the A5 is two years old and doesn't compare very well (hardware wise) to the Nexus 7.
At least they could include 16GBs storage, instead of charging an additional $100, since Apple incurs less than a tenth of that for the whole of 16GBs flash storage.
Of course, it appears that the German retailer will be charging the equivalent of ~$320 US (for 8GBs) and ~$450 US (for 16GBs).
You might as well pay an additional $100 to get a full-blown iPad with a larger screen, twice the screen resolution, 16GBs flash storage and A5X SoC.
If the prices in the above report are true, I really wonder how Apple is going to spin this, outside of the pushing the App Store and a camera.
And how such a spin will sell the reported 10 million units that are supposedly being made for this quarter.
Assuming they were just breaking even before, does that mean Google will lose about $40 per device just to be competitive with a device that hasn't yet shipped? The answer seems to be yes. So sad, so desperate.
I don't think anyone outside of the manufacturer (except perhaps those SEP holders basing royalties on device BOM's) know the current build cost of most of these tablets.
Google is dropping the 16GB version, replacing it with a 32GB for the rumored price (supposedly confirmed) of $260 US or 200 Euros. The inventory change should happen in the next week or so according to multiple sources. Is that due to Apple's iPad-Mini? Probably IMO.
Well then that makes 8G even more stupid. And if Apple is going to position this device as more of a consumption device or book reader how much premium can they really get? The Nexus 7 has received great reviews. I'm sure for reading books or watching video it's an entirely competent device. You could probably say the same thing about the Fire HD if Amazon got rid of the annoying ads. If you can get 32GB for the same price as Apple is charging for 8GB what draws you Apple, unless you're already heavily invested in the ecosystem?
I think Apple can command a premium if the product is superior. But none of the rumors so far provide any indication on what will be superior, other than it being implied if it's an Apple product it will just be better.
I'm not convinced 8GB will cut it for many people (even the iPod Nano is 16GB). Particularly if they market it for playing videos - though perhaps if they focus on not-too-enhanced eBooks it would work ok?
But there's one thing to consider, and that's that even if they do market it as a video player many would regard the mini as a useful thing to have for everything else and not playing back media. If surfing and reading are good it's still a winner at 8GB.
Plus, you don't need to keep much on there, just what you might want to watch on the subway this week, then trash as soon as watched. That's what I've been doing on my 8G iPod Touch for years. It doesn't hold the whole of the videos, podcasts and music in my iTunes library, just stuff for the week or two. Not for full length HD, but when you convert for the quality of a small player the mp4s are pretty small. And normal books don't take up much.
Yes, if they're going the 8GB route just to match some price point. iPod Nano is 16GB, touch is 32GB OR 64GB. Offering an iPad with only 8GB makes no sense. I understand the "premium" for Apple quality/user experience/ecosystem, etc. But 8GB fills up fast. Textbooks and especially magazines take up a lot of space.
Even though I always buy the highest capacity, I have never used it. In fact for real world usage, I could probably get by just fine with 8GB as I plan to take it on my daily commute where I would really only need space for one book. I listen to internet radio almost exclusively so no storage required. The other thing I plan to use it for is maps which again takes up no space. The point is that Apple is offering you a model no matter what your usage pattern might be. Comparing it to Nexus price only needs to be in the neighborhood because of the apparent anticipated market penetration by releasing so many models, you will hard pressed to even see a Nexus in the wild. People are going to flock to this device. I predict it out sells regular iPads within the first year.
It makes sense in so far as it gets them a headline price below $300. But as usual with Apple, the base model is the one they don't want you to buy because it has the lowest margin. Higher capacity and cellular models is where they'll make their serious margin.
I do think 8GB will make for a bad experience though for reasons you suggest. You lose around 1GB for the OS leaving 7GB for all your apps and content. Not enough with retina-bundled apps using a lot more space now for all iOS users.
I wish Jony Ive could get in front of the bean counters and/or marketing guys and strangle them. Offering an 8GB model just so the first price you see on a website is $249 is ridiculous. How the hell does Phil Schiller spin that?
But there's one thing to consider, and that's that even if they do market it as a video player many would regard the mini as a useful thing to have for everything else and not playing back media. If surfing and reading are good it's still a winner at 8GB.
Plus, you don't need to keep much on there, just what you might want to watch on the subway this week, then trash as soon as watched. That's what I've been doing on my 8G iPod Touch for years. It doesn't hold the whole of the videos, podcasts and music in my iTunes library, just stuff for the week or two. Not for full length HD, but when you convert for the quality of a small player the mp4s are pretty small. And normal books don't take up much.
Ah, so that's how Apple markets it....explaining to you all the ways to not fill it up. all the while Google says "hey our device might be a little smaller but it's more portable and and has more space for basically the same price".
Comments
FWIW, I can see offering only 16GB and 32GB storage capacities. Eight GB is a little too little, even with iCloud, and 64GB in a Mini model might be overkill for most. The cellular/Wifi and black/white options are givens. It might be tricky for Apple to test different storage options, find some don't sell well, and then drop them later.
Quote:
Originally Posted by anantksundaram
Nonsense. There'll be millions like me who'll happily plonk down $649 for the 64GB/wireless version. . .
And people like you will be proved wrong yet again.
-------------------------------------
PS: GO Felix Baumgartner! Amazing!!
Then there's no need for the 32GB version?
Quote:
Originally Posted by Rogifan
Well then I suspect major fail. Right now you can get a 16GB Nexus 7 for $249. How is Apple going to sell 8GB for the same price? That its 40% bigger? Who said they wanted it 40% bigger? I thought the whole point of these smaller tablets was portability; to fit in a jacket pocket; to hold comfortably with one hand, etc.
$50 is a minor premium for Apple quality.
Quote:
Originally Posted by Rogifan
Not genius if its only 8GB. The Nexus is $249 for 16GB.
Clearly, Apple has lost their mind
Quote:
Originally Posted by Rogifan
Not genius if its only 8GB. The Nexus is $249 for 16GB.
Google is dropping the 16GB version, replacing it with a 32GB for the rumored price (supposedly confirmed) of $260 US or 200 Euros. The inventory change should happen in the next week or so according to multiple sources. Is that due to Apple's iPad-Mini? Probably IMO.
Quote:
Originally Posted by Gatorguy
Offering up a non-expandable 8GB model to show they can compete with Google and Amazon even on price, but planning around most buyers paying a good premium for increasing storage to something more reasonable? A $100 upcharge for a relatively inexpensive component cost on another 8GB of storage is where the money is. Competitors are getting what, $50 or so for the same bump?
I previously thought it would not be practical to offer an 8GB model, but your points make sense.
It is at once symbolic with regard to competitors' pricing structures and also pragmatic with respect to its appeal to those for whom even an additional $50 could influence a buying decision out of Apple's favor, or who have other devices where photos and music live, or who will primarily use it as a lightweight eReader, Apple TV remote, etc., or any combination of the above. It's interesting how some of Apple's products can live in their ecosystem as standalone devices or as accessories to other Apple devices.
Your last point really brings home how Apple can "magically" turn a potential 0% margin into an actual 50% margin.
Quote:
Originally Posted by Rogifan
Yes, if they're going the 8GB route just to match some price point. iPod Nano is 16GB, touch is 32GB OR 64GB. Offering an iPad with only 8GB makes no sense. I understand the "premium" for Apple quality/user experience/ecosystem, etc. But 8GB fills up fast. Textbooks and especially magazines take up a lot of space.
It makes sense in so far as it gets them a headline price below $300. But as usual with Apple, the base model is the one they don't want you to buy because it has the lowest margin. Higher capacity and cellular models is where they'll make their serious margin.
I do think 8GB will make for a bad experience though for reasons you suggest. You lose around 1GB for the OS leaving 7GB for all your apps and content. Not enough with retina-bundled apps using a lot more space now for all iOS users.
Quote:
Originally Posted by Gatorguy
Google is dropping the 16GB version, replacing it with a 32GB for the rumored price (supposedly confirmed) of $260 US or 200 Euros. The inventory change should happen in the next week or so according to multiple sources. Is that due to Apple's iPad-Mini? Probably IMO.
Assuming they were just breaking even before, does that mean Google will lose about $40 per device just to be competitive with a device that hasn't yet shipped? The answer seems to be yes. So sad, so desperate.
That's just insulting, especially when you consider the A5 is two years old and doesn't compare very well (hardware wise) to the Nexus 7.
At least they could include 16GBs storage, instead of charging an additional $100, since Apple incurs less than a tenth of that for the whole of 16GBs flash storage.
Of course, it appears that the German retailer will be charging the equivalent of ~$320 US (for 8GBs) and ~$450 US (for 16GBs).
You might as well pay an additional $100 to get a full-blown iPad with a larger screen, twice the screen resolution, 16GBs flash storage and A5X SoC.
If the prices in the above report are true, I really wonder how Apple is going to spin this, outside of the pushing the App Store and a camera.
And how such a spin will sell the reported 10 million units that are supposedly being made for this quarter.
Quote:
Originally Posted by Carthusia
Assuming they were just breaking even before, does that mean Google will lose about $40 per device just to be competitive with a device that hasn't yet shipped? The answer seems to be yes. So sad, so desperate.
I don't think anyone outside of the manufacturer (except perhaps those SEP holders basing royalties on device BOM's) know the current build cost of most of these tablets.
I think Apple can command a premium if the product is superior. But none of the rumors so far provide any indication on what will be superior, other than it being implied if it's an Apple product it will just be better.
Originally Posted by nonimus
I hope Apple doesn't plan on pricing a tablet with a 7.85" screen , 1024x768 resolution, 8GB flash storage and A5 SoC for ~$300.
That's just insulting…
But a smaller device with only twice the storage isn't?
You might as well pay an additional $100 to get a full-blown iPad with a larger screen, twice the screen resolution, 16GBs flash storage and A5X SoC.
But that doesn't fit in a "pocket".
Quote:
Originally Posted by GregAlexander
I'm not convinced 8GB will cut it for many people (even the iPod Nano is 16GB). Particularly if they market it for playing videos - though perhaps if they focus on not-too-enhanced eBooks it would work ok?
But there's one thing to consider, and that's that even if they do market it as a video player many would regard the mini as a useful thing to have for everything else and not playing back media. If surfing and reading are good it's still a winner at 8GB.
Plus, you don't need to keep much on there, just what you might want to watch on the subway this week, then trash as soon as watched. That's what I've been doing on my 8G iPod Touch for years. It doesn't hold the whole of the videos, podcasts and music in my iTunes library, just stuff for the week or two. Not for full length HD, but when you convert for the quality of a small player the mp4s are pretty small. And normal books don't take up much.
Quote:
Originally Posted by Rogifan
Yes, if they're going the 8GB route just to match some price point. iPod Nano is 16GB, touch is 32GB OR 64GB. Offering an iPad with only 8GB makes no sense. I understand the "premium" for Apple quality/user experience/ecosystem, etc. But 8GB fills up fast. Textbooks and especially magazines take up a lot of space.
Even though I always buy the highest capacity, I have never used it. In fact for real world usage, I could probably get by just fine with 8GB as I plan to take it on my daily commute where I would really only need space for one book. I listen to internet radio almost exclusively so no storage required. The other thing I plan to use it for is maps which again takes up no space. The point is that Apple is offering you a model no matter what your usage pattern might be. Comparing it to Nexus price only needs to be in the neighborhood because of the apparent anticipated market penetration by releasing so many models, you will hard pressed to even see a Nexus in the wild. People are going to flock to this device. I predict it out sells regular iPads within the first year.