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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. MetallicaFan1991's Avatar
      MetallicaFan1991 -
      Quote Originally Posted by NSXrebel View Post
      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.
      Lol, it's going to be a fail here in UK, the fact that it has that microsim and no full web browsing is fail tbh. It's too expensive. $499 for the entry model is a rip off.
      There's nothing wrong with flash
    1. awesomeSlayer's Avatar
      awesomeSlayer -
      I might get someday...if there is a jailbreak for it, I'm sold.
    1. NSXrebel's Avatar
      NSXrebel -
      Quote Originally Posted by MetallicaFan1991 View Post
      Lol, it's going to be a fail here in UK, the fact that it has that microsim and no full web browsing is fail tbh. It's too expensive. $499 for the entry model is a rip off.
      There's nothing wrong with flash
      so what if it has a micro SIM card. the only difference between a regular SIM card and a micro SIM card is the plastic that surrounds the chip itself. you can just cut up your SIM card down to make it work on the iPad, although that's not very practical, you can still make it work. Flash, meh...
    1. Bluprint's Avatar
      Bluprint -
      Quote Originally Posted by NSXrebel View Post
      keep dreaming buddy. maybe we'll see a $100 price drop, but not anytime soon.
      The iPhone 2g was made available at $600 for 2months before the $200 price drop, what do you say to that? Today, how much is it to buy an iPhone 3g? just $99!

      The iPad features are way over priced, a $200 dollar price drop is reasonable for the flash drive in itself, they could still add another $100 price drop for the 3g radio as well... it's not a dream buddy, unlike appletv this device will come out every year with more "new" features added to the line up.

      Quote Originally Posted by NSXrebel View Post
      You think it looks girlish so you won't get one, but if they drop the price by half, you'd get one?
      I'll buy the ipad for movie watching I guess, but I'm not choosing this based on looks alone. I could care less what the ipad does because my iPad mini has the same functions.


      Quote Originally Posted by NSXrebel View Post
      That's like saying Coach purses are girlish
      Purses are not only girlish, they're made for girls just like skirts. Do you wear skirts?

      The iPad is girlish like the color pink, if you like pink then IMO that's kinda girlish too but that's only my opinion. you dig?

      Quote Originally Posted by NSXrebel View Post
      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.
      Flash-free Hulu will be coming to the iPad soon, in development now? | 9 to 5 Mac
      for streaming media don't count on anything outside of iTunes. Flash is used to create complex animation (not just rectangles) and multiplayer games.

      90% of all videos you see on the web is Flash! Interactive objects often use music, sliders, drop menus etc.
    1. lolcats1's Avatar
      lolcats1 -
      lol so it's not an ipod touch anymore? the ipad mini? lolcats
    1. StealthBravo's Avatar
      StealthBravo -
      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.
      I don't find the iPad overpriced. In fact I plan on buying several of them. If you need to wait til it fits in your budget then there's nothing wrong with that.

      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.
      Why would I cry over a price drop? If it drops a couple hundred dollars than that's great for people buying it at that point.
    1. NSXrebel's Avatar
      NSXrebel -
      Quote Originally Posted by Bluprint View Post
      The iPhone 2g was made available at $600 for 2months before the $200 price drop, what do you say to that? Today, how much is it to buy an iPhone 3g? just $99!

      The iPad features are way over priced, a $200 dollar price drop is reasonable for the flash drive in itself, they could still add another $100 price drop for the 3g radio as well... it's not a dream buddy, unlike appletv this device will come out every year with more "new" features added to the line up.


      90% of all videos you see on the web is Flash! Interactive objects often use music, sliders, drop menus etc.

      How long did it take for the iPhone 3G to drop that much in price??? It was a second generation device that didn't drop in price till the third generation version was out. You're not gonna see a first generation iPad go for $99 anytime soon, or even for under $300.
    1. Melech518's Avatar
      Melech518 -
      I love how people think calling us "fanboys" is an insult. NEWSFLASH!-It doesnt bother me one bit to be called an Apple Fanboy
    1. StealthBravo's Avatar
      StealthBravo -
      Well the iPad will take a year allowance for some of these kiddies
    1. Nickaroni22's Avatar
      Nickaroni22 -
      Quote Originally Posted by Rota View Post
      If they want it to compete with netbooks, it needs to be at netbook price points.
      I agree, you can grab a netbook for around $300. So I think they need to work on the price to push the iPad. I've almost bought a netbook, but I'm just waiting to see what all the iPad can do.
    1. NSXrebel's Avatar
      NSXrebel -
      Quote Originally Posted by Nickaroni22 View Post
      I agree, you can grab a netbook for around $300. So I think they need to work on the price to push the iPad. I've almost bought a netbook, but I'm just waiting to see what all the iPad can do.
      well get the damn netbook then. it's cheaper, has a keyboard, has flash, bigger hdd, multitasking, etc...
    1. Melech518's Avatar
      Melech518 -
      Netbook= miniature size garbage
      iPad=Pocket Gold!

      Kidding, but seriously, The iPad isnt a netbook. A netbook is really a useless little computer. It reminds me of those little plastic laptops kids in pre-school use to learn how to read.
    1. StealthBravo's Avatar
      StealthBravo -
      Here it is:

    1. GadgetX's Avatar
      GadgetX -
      Lol I'd gladly pay an extra $100 (maybe even $200) to get the iPad right now, so why would I care if they dropped it by that much a month or two after launch?
    1. unclebnz's Avatar
      unclebnz -
      Come on guys please hold off I want one jast as bad as the next guy. We hold the power in our hands. If we dont buy the iPad they will have no choice but to drop the price.
    1. hollow0's Avatar
      hollow0 -
      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
      lmao!
    1. tudtran's Avatar
      tudtran -
      In that case, Nobody buy the iPad until they drop the price.
    1. viperstarpoint9's Avatar
      viperstarpoint9 -


      Done on a net book entirely. Oh yea that net book is also running osx snow and Win XP and is upgradeable to better ram and memory than the iPad. I like the concept of iPad but the price for an intermediate device is insane. I can't do that on an iPad or my iPhone. However it does do flash and multiprocessing beautifully otb. So untill the iPad is running an open operating system like ubuntu I'm out.
    1. Melech518's Avatar
      Melech518 -
      Quote Originally Posted by StealthBravo View Post
      Here it is:

      That is the one!!!!!!
    1. StealthBravo's Avatar
      StealthBravo -
      "The point is ladies and gentlemen that greed, for lack of a better word, is good. Greed is right. Greed works. Greed clarifies, cuts through and captures the essence of the evolutionary spirit. Greed, in all of it’s forms - greed for life, for money, knowledge - has marked the upward surge of mankind and greed - you mark my words - will save the malfunctioning corporation called the USA."

      -Gordon Gekko