What does Apple’s iPad mean for AAPL investors?
Eric Rosenbaum reports for TheStreet.com, “Many Apple watchers had anticipated that the new tablet device would debut with a price tag of $999. Apple surprised the market with Steve Jobs stealing a page from Ron Popeil’s infomercial playbook and offering the iPad at the low-low price of $499.”
“Maybe some of the negative reaction to the iPad has to do with the price: there is a fine line between over-pricing and pricing at a point where U.S. consumers assume the device can’t be all that great if it’s too easily within reach of their wallets,” Rosenbaum wonders. “Maybe the fact that 10% of the U.S. population is still unemployed has just made it an inopportune time to introduce a new toy — though the success of Amazon’s Kindle e-reader would suggest that finding an audience for the right product will not be a problem.”
MacDailyNews Take: What success? Amazon has offered no proof of success beyond saying vaguely “Kindle is a success.” (Please see related articles below.)
Rosenbaum continues, “Thus, we ask the tech-savvy reader of the TheStreet, will investors be had if they bet on the success of the iPad?”
Full article, with an opportunity to vote in their online poll at the article’s end, here.
MacDailyNews Take: The answer to our headline is: Right. Apple’s pricing is mighty enticing from the base model on up to the top-of-the-line and the rates they’ve secured from AT&T are excellent as well.
[Thanks to MacDailyNews Reader “Judge Bork” for the heads up.]
You or a coworker break a laptop screen ever? That can be the most expensive part to replace.
A current MacBook 13″ LCD screen part cost is $200 and that is not a state of the art IPS screen or have multi touch embedded in it.
I just love how the analysts tell us what Apple’s cost is before the thing even ships. They have no clue what is in it.
299 is a price point where a family would own more than one.
Typing while multitasking is a bitch.
not if you are just playing music in the background
AT&T;Commercial: Your on a conference call and you buddy asks you if you go his email…you go on your iphone…press the button…and go on the internet and get the email….(tagline) Can your phone and your network do that…
no but your bigger badder IPAD Cant multitask either:)
Just saying i wish the IPAD was stronger with a better stronger OS and then i would buy one. I am a videographer so i Have FCP and Motion. So i am used to stronger computers and the ipad cant cut it for me.
I once did some consulting work for Ron Popeil’s oil and gas Company.
The guy was into everything.
The 3g pricing is wrong which makes me glad I won’t be getting one. The storage capacity is dissapointing too. If this thing streams my iTunes library I will probably get the 32Gig or maybe the 16.
I’m hoping they are still working on features cause what we have been shown so far looks like a beta. Either way I can’t wait to get my hands on one and dig into the settings. This thing really needs to tether with the iPhone 3g also. No way I’m paying 130 bucks so I can pay again for a data plan. No way.
They need to throw apple product owners a bone with this thing. I want integration with iPhone iTunes MobileMe and appletv. If apple does that I will see the ipad as a must have.
You have to be f’ing kidding me. Apple’s price is too high….. Now, it is too low. It doesn’t matter what Apple does. This idiots will spin it as a bad thing. All they have been doing is whining and whining about Apple not having something to compete with netbooks. Whatever?!?
no it wasnt the price that sparked a sell off (and the fact that the market also did as a whole)… It was the perceived features that were missing…
The many complaints:
1. Camera
2. USB connection
The price did in fact surprise me…
My call options took a hit of course… So, in a sense the “buy on hype, sell on news” Proved true once more.
Barring a marketwide rally, the buyers of AAPL will be back when the actual numbers of iPad are in… But if the market as a whole is getting back to Bearish… Well, in that case there really is no sense in buying AAPL…
FXP, SRS, SDS, and even DUG are doing well short term. And SHOULD do well long term as well. We just don’t know if this Bear rally is quite done.
Too high. I can’t even listen to Pandora on it while surfing the Web.
All an investor like me needs to know is that Apple looked at all the criticisms about high prices and low market share and said ‘Hey, we can do quality at a reasonable (not low) price. And if they want to deride us on market share, let’s show the world that we can GO LARGE without selling a POS that’s not in our DNA.
I’m happy. Market share by device will skyrocket.
11,259,473 iPads sold worldwide in 2010. 6 in my family alone. 3M in December 2010 alone.
25,000,000 + in 2011.
At a minimum gross margin of say $200+ per unit, and those levels of sales volumes, why would I not be happy?