Minnesotas public radio foundd out that 70% of respondants won’t buy a tablet if it is priced at $700 and above and piles of people don’t want a reoccurring subscription fee. FWIW, my info says that a 10” tablet will be released for $699.00. Anyway, listen in.

Eric Landstrom - 23 January 2010 10:24 PM

Minnesotas public radio foundd out that 70% of respondants won’t buy a tablet if it is priced at $700 and above and piles of people don’t want a reoccurring subscription fee. FWIW, my info says that a 10” tablet will be released for $699.00. Anyway, listen in.

But this iTablets design and features are still an unknown, which in itself can increase the acceptable price ceiling. Lets hope that no one is disappointed.

After listening to the audio cast I’m not sure the surveyed population was limited to Minnesota Public Radio listeners. Aside from that, long battery life appears to be a key feature and eBook reading functionality (as expected).

This reminds me of studies before the iPhone came out and how many people were willing to pay $600 for a phone the most were getting for free in some cases.

Here is an article that points to what some analysts were expecting from the Apple Phone a year before it came out.

http://www.appleinsider.com/articles/06/09/05/apple_cell_phone_is_real_and_ready_for_production___analyst.html

It is interesting to see how off they were at the time.

If 30% are willing to pay $700 then it is safe to say that 10% will pay more then $1000.  Apple is marketing this item as a niche product initially to those who are willing to pay a big price.

I think once we see it and get amazed we will see long lines, and then 2 years later the masses will be able to afford one.

Apple is about slowly getting into the market and they do so by creating products that can not be duplicated so time is on their side.

Two years after the iPHone we now have millions more of Apple users via iPhones, Macs, and iPods Add to that more Apple name recognition, and it is easy to see how Apple can sell only 2 million of these Tablets in the first three months without worrying about ads or pricing.  Give it time before millions will jump on board. 

Think about it. This is the first Apple computer that does not run Windows or Mac OS in the traditional way.  Apple is getting the masses to buy their Computers without worrying about getting the right software.  Just wait to see how many they will sell 5 years from now.

I bought the first version of iMac, iPod and iPhone.  I would buy the first version of Magic Slate too.  Some kind of a deal like subscribing to the Wall Street Journal Digital Network for two years, can buy Slate for $300 would be good.

I am a day 1 buyer. But if it’s a slatefone tied to another 3G contract, or if it’s tied to a subscription at all, I’m probably not buying. But I think SJ knows we want to own our stuff unencumbered by a subscription indenture. A bundle with starter subscriptions reducing the device sticker price such as suggested by Mace is a different matter. As an investor, I am in favour of Apple obtaining as much recurring income as possible!

If (as usual) the sticker price is perceived as “high”, the key to rapid uptake outside the early adopters may be (if confirmed) launch as a stay-at-home shareable device that also can be taken out (like a conventional picture magazine), allowing the purchase to be a family extravagance with offsetting savings elsewhere, and an alternative to buying yet another new PC for a family member.

In order to maintain secrecy until launch, I think it’s unlikely that content bundling pricing will be finalised this week.

If there’s a three slate family pack, I’m up for it. (Its extra subsidy would be tied to a shared family ITunes/mobileMe account).

Edit: I’ve just cancelled my $50 Sky satellite TV and $50 O2 cellphone monthly contracts. That money is Apple’s if they offer the right bundle (but there’s not much chance). What I’m not doing is buying a device that becomes crippled if I stop subscribing.

Mace - 24 January 2010 12:33 AM

I bought the first version of iMac, iPod and iPhone.  I would buy the first version of Magic Slate too.  Some kind of a deal like subscribing to the Wall Street Journal Digital Network for two years, can buy Slate for $300 would be good.

Early adopter here for all 3 products as well.  I left the first 5 GB iPod unwrapped for 30 days, thinking…do I need this?  Will I use it?  Upon opening it and using it, I KNEW this thing was going to strike gold.  So, as an Apple Investor, of course I’ll be buying the iSlate/iPad/iTablet.  And I won’t wait 30 days to open it.

It seems like there could be a partial subsidy with its existing AT&T partner without risking a leak.  I think the sweet spot is $700 - $800 for mass adoption.  An additional $10 per month for wireless on an existing iPhone account could reduce the speculated $1,000 price tag quite nicely over 2 years.

Day one owner of EVERYTHING BUT, an iPhone. Four years of computers and iPods and routers/wireless products.

Aversion to subscription plans I guess. {bunch of iTouch’s however with hotspot connectivity }

Anyway, I buy them day one to TEST consumer experience, if I love it, others will too, and that alone is the earliest feedback loop to tell me to load up more AAPL or lighten the portfolio.

PS: that goes for the other high profile gizmo’s, like KINDLE etc as well.

AND I get to play with the toys first before selling them off on eBay or passing them along to needy folks.

I, on the other hand, have stopped craving for electronics the day that they come out. Now I patiently sit waiting for version 2.0 to come out. I don’t think I will change my behavior for the Apple tablet computer.

But of course, this is all idle weekend speculation, since none of us has seen it nor really knows what it is going to be like. But, if recent history is any indication, the reaction of the “experts” in the media will be “huh?”, Wall Street analysts won’t “get it”, content providers (developers and/or publishers) will “wait and see”; until lines start forming at all of the Apple stores the week it goes on sale.

Mercel - 24 January 2010 07:43 AM

Mace - 24 January 2010 12:33 AM

I bought the first version of iMac, iPod and iPhone.  I would buy the first version of Magic Slate too.  Some kind of a deal like subscribing to the Wall Street Journal Digital Network for two years, can buy Slate for $300 would be good.

Early adopter here for all 3 products as well.  I left the first 5 GB iPod unwrapped for 30 days, thinking…do I need this?  Will I use it?  Upon opening it and using it, I KNEW this thing was going to strike gold.  So, as an Apple Investor, of course I’ll be buying the iSlate/iPad/iTablet.  And I won’t wait 30 days to open it.

It seems like there could be a partial subsidy with its existing AT&T partner subsidy without risking a leak.  I think the sweet spot is $700 - $800 for mass adoption.  An additional $10 per month for wireless on an existing iPhone account could reduce the speculated $1,000 price tag quite nicely over 2 years.

I’m an early adopter also, but if Apple prices the tablet at $1000 they won’t have my sale and if they require a data contract they won’t have my sale.  For me the price needs to be around $599 for a 1st day purchase, otherwise I will be updating my Iphone 3G this summer.  As far as the sweet spot on pricing if Apple wants to sell to the mass market and not just their core then the pricing needs to be below $500 IMO.  Like it or not people will be comparing this with all the $300- $500 netbooks.

pats - 24 January 2010 10:25 AM

I’m an early adopter also, but if Apple prices the tablet at $1000 they won’t have my sale and if they require a data contract they won’t have my sale.  For me the price needs to be around $599 for a 1st day purchase, otherwise I will be updating my Iphone 3G this summer.  As far as the sweet spot on pricing if Apple wants to sell to the mass market and not just their core then the pricing needs to be below $500 IMO.  Like it or not people will be comparing this with all the $300- $500 netbooks.

Depending on the feature set, I see the unsubsidized price range between $700 - $1,000.  If Apple sells textbooks like iTunes sells music, then that is a form of subsidy that Apple will have to factor in the price to customers directly.  If the iTablet is more of a media/app/internet device, and not a netbook running full OSX applications like Excel, etc., then the unsubsidized price needs to start around $700 or so.  With a $10 - $15 monthly subsidy from carriers for 3G connectivity (on top of an existing account) you start to see the possibility of a $500 sticker.  Just thinking out loud here…

I’m not a big fan of subscriptions to magazines online, but if the content improved that took full advantage of tablet navigation in prototypes, I’d reconsider it,  Especially if the ads were not crowding the content, as they do now.

I would buy this unseen if I could… Suspect the $799 or $899 price point but as this is a
new category and Apple wants to convince all publishers, movie studios etc. to hop aboard
the iSlate train they might just cut their margin to 15/20 percent and retail it for $499. Wow
would that take away current and future oxygen from the competitive me too’s and wannabe’s
The 30 percent revenue from subscription media could dwarf pofit of the hardware and it is a ‘lock in’ ongoing stream
OK I will wake up now

SNIPUS - 24 January 2010 11:15 AM

I would buy this unseen if I could… Suspect the $799 or $899 price point but as this is a
new category and Apple wants to convince all publishers, movie studios etc. to hop aboard
the iSlate train they might just cut their margin to 15/20 percent and retail it for $499. Wow
would that take away current and future oxygen from the competitive me too’s and wannabe’s
The 30 percent revenue from subscription media could dwarf pofit of the hardware and it is a ‘lock in’ ongoing stream
OK I will wake up now

I don’t think you are that far off. I don’t expect Apple to premium price the product. This is a new product segment and the best way to reduce or eliminate competition is to attractively price the product from the start. The potential for constituent revenue is extraordinarily high and those revenue opportunities will play into pricing.

Remember, too, AppleCare is a big margin maker. Offering an attractively priced product with a margin-rich extended warranty program (extending the warranty from one year to two years) while taking 30% of app, eBook and subscription sales makes for attractive returns.

I’d be surprised to see Apple push hardware margins past the mid 20’s on introduction. Moving beyond that only invites competition from the start.

DawnTreader - 24 January 2010 01:46 PM

SNIPUS - 24 January 2010 11:15 AM

I would buy this unseen if I could… Suspect the $799 or $899 price point but as this is a
new category and Apple wants to convince all publishers, movie studios etc. to hop aboard
the iSlate train they might just cut their margin to 15/20 percent and retail it for $499. Wow
would that take away current and future oxygen from the competitive me too’s and wannabe’s
The 30 percent revenue from subscription media could dwarf pofit of the hardware and it is a ‘lock in’ ongoing stream
OK I will wake up now

I don’t think you are that far off. I don’t expect Apple to premium price the product. This is a new product segment and the best way to reduce or eliminate competition is to attractively price the product from the start. The potential for constituent revenue is extraordinarily high and those revenue opportunities will play into pricing.

Remember, too, AppleCare is a big margin maker. Offering an attractively priced product with a margin-rich extended warranty program (extending the warranty from one year to two years) while taking 30% of app, eBook and subscription sales makes for attractive returns.

I’d be surprised to see Apple push hardware margins past the mid 20’s on introduction. Moving beyond that only invites competition from the start.

Then why did Apple introduce the first iPod at $500 and the first iPhone at $600?  I believe that Apple will price this time no differently then any of their other new products.  It will have the latest technology and those who want it will have to pay a price.

$1000 sounds about right, I felt they might even charge $1200 for it.  As far as subsidized by ISP, that is possible, but it is also possible that it gets treated like a laptop.  One can only access the net by being on WIFI or having a card.

I can see a newspaper offering a $25 coupon towards the purchase of an iTablet with the subscription worth the same value.  The newspaper then forces the consumer to read the Tablet version of the paper with more ads.  The possibilities are endless of how the print media can make money on this product.

I’m assuming $799 this year, $499 by Xmas 2011. 

My credit card is already out of my wallet on the off-chance they accept pre-sales starting Wednesday. 

By Xmas 2011 I will be buying these as gifts for others, but the first one now is just for Papa. 

macorange - 24 January 2010 02:20 PM

I’m assuming $799 this year, $499 by Xmas 2011. 

My credit card is already out of my wallet on the off-chance they accept pre-sales starting Wednesday. 

By Xmas 2011 I will be buying these as gifts for others, but the first one now is just for Papa. 

I am seriously torn about buying the Tablet.  My issue is that I love my MacBook Pro 13” and I use it all the time in the house.  I also love my iPhone and would like to buy the next generation model in June if ATT will give me the upgrade price.

The only compelling reason to buy the Tablet will be the ability to do something I could not easily do with either my iPhone or MacBook Pro.  Right now the only thing I think of is reading a book or magazine. That would not be enough reason for me to spend $500 let alone $1000 for it.

Apple needs to make me feel like I need this product in order to improve my life.  if it allows me to make my ApplTV become an internet browser over my HD TV then I might be tempted.