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blue sequoia
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[ Edited: 28 May 2012 02:28 PM by blue sequoia ] -
there’s no question that a price of below 400, preferably 300 is the key to very large unit sales.
For a long time, the Mac price of $ 1000 was the magic figure for the most inexpensive Macs, aside from Mac mini’s.
It’s a win-win for Apple. iPad 2 and 3 rocking the tech world.
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Apple doesn’t sell older models of iMac, MBA and Mac Pro. So, Apple might have changed pricing strategy for iPad. May be become:
iPod touch $199
iPad nano $299
iPad mini $399
The new iPad $499Signature
Stay Hungry. Stay Foolish. - Steve Jobs
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I don’t see iPad 2 sticking around past March 2013. Maybe as an education-only?
Besides, just imagine, or try to - a $399 Retina Display iPad within a year most likely? Will anyone be able to come close for that price?!
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AFB Night Owl Team™
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If Apple stopped selling the iPad 2 in the autumn with a pre-announcement of that stop, it would send a signal that the iPad is going all out Retina. “Get on the train”.
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I totally see them keeping the iPad 2 on for as long as it sells, just like they do with the 3Gs.
Their problem has been producing enough units to meet demand. The way to go is to have a volume model that fits the “good” profile, and just keep tweaking the production pipeline.
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I’m intrigued why many think in terms of “wait 6 months for a new iOS product” or along those lines. iPad 2 will be here the whole year and it should do very nicely in education. I’m still very skeptical about iPad mini. Apple probably is looking to make ALL iPads 2048x1536 very soon and I can’t see another application of that screen for the year in a different iPad SKU, with the exception of a 128GB model (which I also think is unlikely).
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AFB Night Owl Team™
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blue sequoia
- [ Ignore ]
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[ Edited: 28 May 2012 02:29 PM by blue sequoia ] -
blue, it’s possible. It depends on Apple’s priorities and its view of iPad 2’s continuing value to the company at that point. But a $299 iPad 2 overlaps with iPod touch - at present, you have high-end iPod touch and low-end iPad 2 at the same price point. That’s typically the line Apple likes to draw.
As I said, I can see Apple keeping iPad 2 around as kind of an “eMac” if there’s enough demand for it.
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The Summer of AAPL is here. Enjoy it (responsibly) while it lasts.
AFB Night Owl Team™
Thanks, Steve. -
I can’t seem to find it, but I thought Apple discounted the iPad 1 for a limited time after iPad 2 came out.
I think they will do the same again. This time they can wait a few months, but eventually everyone will need to buy the newer model. As iOS features increase and Siri is released there is less need to sell the cheaper model.
I don’t think they worry about competition at this point. Instead of going down to 7” to compete, Amazon and the gang are moving up to 10”.
It is too little too late for competition at this point.
At work several people did talk about getting the iPad 2 but when they heard it is only $100 less, they said they would get the newer once instead.
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Instead of going down to 7” to compete, Amazon and the gang are moving up to 10”.
Many folks still read fiction books which has 7.85” diagonal. So, it could be viable to produce an iPad mini or may be called it iBook :-x.
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Stay Hungry. Stay Foolish. - Steve Jobs
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Gregg Thurman
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FWIW - I think keeping the iPad 2 at a lower price is going to be huge and likely indicates that this time next year, this latest iPad will stay at a lower price. Apple did this with the iPhone 3GS and 4 when the 4S came out which happened at the start of this last quarter and had monster revs of $46.3B compard to $26.7B the previous year’s quarter. This pricing strategy will really challenge any competitor. Hopefully Apple keeps the iPad 2 next year at an even cheaper price. Good luck to Amazon or MSFT on trying to compete with this line up. In 1 year we’ll have iPads starting at $299. I know some schools are choosing $300 chrome books since the iPad was considered “too expensive”. With this strategy price should no longer be an issue. In the keynote TC made a point to compare iPad sales to PC sales and has said a number of times that the iPad market potential is bigger than the PC market. If the iPad price for older models keeps dropping this will be huge. I can easily see having 2-3 older gen iPads around for various specefic uses at home or at work.
The competition would thought they died and had gone heaven, had they sold as many smartphones as Apple sold 3GS and 4 models during the December quarter.
Still we have to remember that 3GS and 4 sales accounted for less than 10% of total iPhone sales. Sales from older models are nice, but the overwhelming majority (90+%) will come from the new model.
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You can’t do more, make more, be more, than the next guy, if you think like the next guy. Think different.
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Gregg Thurman
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there’s no question that a price of below 400, preferably 300 is the key to very large unit sales.
For a long time, the Mac price of $ 1000 was the magic figure for the most inexpensive Macs, aside from Mac mini’s.
It’s a win-win for Apple. iPad 2 and 3 rocking the tech world.
Lower pricing is only important if your product is no better than the competition. Apple has already experimented with lower pricing, and the results weren’t that significant.
I think the biggest benefit of lower priced models is bringing additional customers into the iTunes ecosystem. That customer may have entered with a discounted ticket, but in a year’s time will be stepping up in class. The offshoot of that is that it deprives the competition of needed oxygen.
Just as there was tremendous consolidation in digital music players, during 2012 so too will there be in the “tablet” market. Google’s purchase of Motorola will prove to be a monumental waste of money.
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You can’t do more, make more, be more, than the next guy, if you think like the next guy. Think different.
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Gregg Thurman
- [ Ignore ]
TIME TO STOP THE CRAZINESS. Apple has clearly demonstrated that they do not believe in the user experience provided by a smaller screen. The iPad’s current screen size is perfect. The only buyers of smaller screens are those looking for a lower price, they are not looking for an equal experience.
This is something Cadillac found out 80 years ago with the LaSalle. People liked the lower price but wanted the nameplate. That’s why Packard’s low cost entry (the 120) kicked LaSalle’s butt. Sales of the LaSalle leaped when Cadillac dropped the name plate and offered the same car as a Cadillac.
Apple’s nameplate (plus the obvious quality/experience differences) will drive future sales, not price.
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You can’t do more, make more, be more, than the next guy, if you think like the next guy. Think different.
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Gregg Thurman
- [ Ignore ]
I don’t think they worry about competition at this point. Instead of going down to 7” to compete, Amazon and the gang are moving up to 10”.
It is too little too late for competition at this point.
At work several people did talk about getting the iPad 2 but when they heard it is only $100 less, they said they would get the newer once instead.
A GREAT BIG YES
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You can’t do more, make more, be more, than the next guy, if you think like the next guy. Think different.
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that is great news. Once people here that nuance, they all spring for the iPad 3. Win-win-win for Apple, consumers and developers.
