Apple intends to stay ‘nimble’ on iPad pricing

“Apple intends to stay ‘nimble’ on pricing of the iPad, possibly lowering prices if the newly unveiled tablet device fails to gain traction among consumers,” Matt Phillips reports for The Wall Street Journal. “That was just one of the items in a note out Sunday night from Credit Suisse recounting meetings with Apple executives.”

Credit Suisse analyst Bill Shope wrote:
Apple wants the iPad to be the best device for a few key use cases. For instance, the company believes it could eventually be seen as superior to both handheld and notebook devices for browsing the Internet, using the App Store, and consuming mobile media (video, photos, and e-books). Nevertheless, in other areas, notebooks, the iPhone, or an iPod may be more appropriate. This clear segmentation of capabilities suggests that cannibalization may be less of a concern than most currently believe… While it remains to be seen how much traction the iPad gets initially, management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated)

Full article here.

[Thanks to MacDailyNews Reader “Gilles H.” for the heads up.]

30 Comments

  1. This “leaked” simply to put more fear into the hearts of would be competitors. Many are waiting for Apple to create the market and then come into it with a cheaper tablet running Windows 7, Android, or a Linux version that one can poke at with a finger. Knowing Apple can lower prices increases the barrier to entry and will give them greater pause.

  2. How locked down is an iPad? I am referring to after the fact upgrades? The Mini takes a damn spackling tool to open it. So…you buy one then realize you really need 64 gigs or want to upgrade to 3G…That’s a very pointed question.

  3. @PR — People need to evaluate what
    they need before they buy…either that or buy a new one while sticking the old one on eBay and hope to recoup most of the investment. The iPad’s not a Windows box that you can slap together in your basement.

  4. @currentinterest,

    I figured that’s how this would go, but Apple priced the iPad so low I don’t see how competitors have much room to maneuver, especially when you take into account the component markets that Apple sucked dry (like flash memory and 9-10″ LCD screens).

    I think Apple has a one or two year head start, and that’s if they stayed still without advancing their lead further (which we know won’t happen).

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