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  • Apple to Lower iPad Price If It Doesn't Sell?


    Weeks after surprising many industry analysts with the low price of the entry-level iPad, Apple executives are sending out hints that Apple may lower prices further to boost sales of the new device. At a closed door meeting with financial analysts, Apple officials reportedly said that they will be "nimble" with pricing in case the iPad doesn't sell as hoped. Recent analyses of the parts used in the iPad indicate that Apple has plenty of room to drop prices.

    When the original iPhone was released, it cost $599. Just a few months later, Apple shaved $200 off the price. While the company is well-known for its high profit margins on everything it sells, Apple has not been above cutting prices when it wants to see big sales numbers, especially on new products. The original iPod, too, cost $400 and only held 5GB. And Steve Jobs has specifically said in the case of the iPad that he wants "to get this into the hands of as many people as possible." many early skeptics changed their opinions after actually getting to play with the iPad, using words like "gorgeous" and "blazingly fast."

    Credit Suisse analyst Bill Shope said that Apple "wants the iPad to be the best device for a few key use cases," like browsing the Internet, a new class of full-screen apps, and for playing video and reading e-books. According to Shope, Apple is ready to drop price if demand for the device doesn't take off. “While it remains to be seen how much traction the iPad gets initially," Shope said in a note to his clients, "management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated)."

    Market research firm iSuppli released an analysis today that estimated the costs of a $499 iPad at $219.35. Broadpoint AmTech analyst Brian Marshall had earlier estimated a cost to Apple of $270 on the low-end model, with even higher profit margins on the more fully-featured iPads; in particular the 3G models which add $130 for a 3G radio that costs just $16. The 64GB flash in the top of the line iPad costs Apple only $76, but boosts the selling price by $200.

    If anything, this approach may backfire for Apple: I wasn't that eager personally to grab one of these the minute they go on sale, but with these reports, I'm even more inclined to wait.
    This article was originally published in forum thread: Apple to Lower iPad Price If It Doesn't Sell? started by Paul Daniel Ash View original post
    Comments 59 Comments
    1. Cow_King's Avatar
      Cow_King -
      This would be awesome
    1. KiZZ's Avatar
      KiZZ -
      Definitely waiting! I will totally get one if it's priced under $300.
    1. monadzback's Avatar
      monadzback -
      Same
    1. MPS3's Avatar
      MPS3 -
      no flash = FAIL worthless
    1. mikerlx's Avatar
      mikerlx -
      ^Agree on the flash, well I don't really need an iPad. After reading this post, I think price drop and I will be ordering if they drop the price by $200!!! I don't want to overpay for the ipad.
    1. zozodouce's Avatar
      zozodouce -
      i think we all should wait,waiting will force them to drop down their prices.
    1. hitman10's Avatar
      hitman10 -
      @ MPS3 Agreed!

      Ill buy it if theirs a jailbreak. I wanna get full useage of this product. If my iphone can no longer be jailbroken i'm selling it and buying a new phone that can be.
    1. Bluprint's Avatar
      Bluprint -
      isn't there a cap in 3G internet on AT&T.. like a 5GB cap??
    1. sungod661's Avatar
      sungod661 -
      ok wtv im still getting one....and hopefully all of you think like this so i can be the first to get my hands on one
    1. Bluprint's Avatar
      Bluprint -
      Quote Originally Posted by zozodouce View Post
      i think we all should wait,waiting will force them to drop down their prices.
      I wouldn't want one cuz it looks sorta girlish but if they were smart they would give this a $230 price drop. The only way we would see this is if we wait and force them.
    1. StealthBravo's Avatar
      StealthBravo -
      I will buy one on launch day.
    1. zozodouce's Avatar
      zozodouce -
      Quote Originally Posted by stealthbravo View Post
      i will buy one on launch day.
      i still think you should wait,but dont cry when you see a price drop after a month or two lol.
    1. Melech518's Avatar
      Melech518 -
      Quote Originally Posted by zozodouce View Post
      i still think you should wait,but dont cry when you see a price drop after a month or two lol.
      There wont be any crying. If purchased within 30-days Apple will honor any price drop with a credit or rebate.
    1. Luppin's Avatar
      Luppin -
      Quote Originally Posted by StealthBravo View Post
      I will buy one on launch day.
      If enough people think this way then it will give Apple incentive to continue grossly over-pricing their products: 60.6% profits FTL. But then again when it comes to Apple, they've never shown any sign of actually caring about the consumer, only what makes them the most profit. So much for Microsoft being the big bad evil empire.
    1. NSXrebel's Avatar
      NSXrebel -
      Quote Originally Posted by KiZZ View Post
      Definitely waiting! I will totally get one if it's priced under $300.
      keep dreaming buddy. maybe we'll see a $100 price drop, but not anytime soon.


      Quote Originally Posted by Bluprint View Post
      I wouldn't want one cuz it looks sorta girlish but if they were smart they would give this a $230 price drop. The only way we would see this is if we wait and force them.

      You think it looks girlish so you won't get one, but if they drop the price by half, you'd get one?

      That's like saying Coach purses are girlish, but if you could get one for under $100 or whatever, you'd get one.

      Quote Originally Posted by MetallicaFan1991 View Post
      If it dropped down $200 in price and Apple put flash in it, I would buy it. $499 for a device with 1Ghz processor is a rip off.
      It's not going to sell anyway, fail like Apple TV.
      I'll check back on this in a few months. Please be prepared to eat some crow.

      Oh yeah, word is out that Hulu is planning an iPad/iPhone app a la Youtube. The sooner websites move away from Flash, the better.
      http://9to5mac.com/hulu_for_iphone_688888
    1. redcard's Avatar
      redcard -
      Quote Originally Posted by Luppin View Post
      If enough people think this way then it will give Apple incentive to continue grossly over-pricing their products: 60.6% profits FTL. But then again when it comes to Apple, they've never shown any sign of actually caring about the consumer, only what makes them the most profit. So much for Microsoft being the big bad evil empire.

      Buying one on launch day as well. Might even get 2 if it means Apple keeps the price up, and it's out of reach of the plebians
    1. gthugballin's Avatar
      gthugballin -
      I'm getting one on launch day as well....but if apple waits 31 or 40 days to do a price drop imma be mad
    1. lolcats1's Avatar
      lolcats1 -
      Quote Originally Posted by Melech518 View Post
      There wont be any crying. If purchased within 30-days Apple will honor any price drop with a credit or rebate.
      you'll get a partial rebate just to shut you up. remember the 200 dollar iphone price drop? people who bought it at 600$ (that's hilarious) only got 100 back.

      This is Capitalism people. If you don't buy a product, then the company (apple) will do a better job, and make it Cheaper

      so don't buy it and accept it for what it is. Make apple work for you money. fanboys...

      Quote Originally Posted by redcard View Post
      Buying one on launch day as well. Might even get 2 if it means Apple keeps the price up, and it's out of reach of the plebians
      because we all know how well the rome turned out. oh wait, that's right. IT DIDN"T. IT BURNED
    1. politicalslug's Avatar
      politicalslug -
      My condition for buying include two things: include the 3G radio and aGPS chip for free with a two year contract AND for current iPhone contracts that add the iPad, charge only an additional $15-$20 per month for use of this device. Seems reasonable to me.
    1. matthew1111's Avatar
      matthew1111 -
      That'd be nice...