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).

  5. Apple didn’t design the iPad to be upgradable for memory, wireless access, etc. What it did instead was to offer 3G iPads with no contract, so you can buy a 3G iPad just in case you think you may want 3G access some day, and not enter into an agreement with ATT until you want the access. Or you can cancel it later if you decide you’re only using it at coffee shops, home, or other places which have Wifi.

    We have entered into the age where computers will not be very upgradable. They are coming with sufficient memory that rarely does a consumer need to add more. Because we all want everything in as small, portable package as possible, there are fewer and fewer consumer-accessible and modifiable parts.

    Other consumer products have already gone this route: most appliances like hair dryers, blenders, ceiling fans, cordless phones, etc. are not designed to be repaired or accessed by the consumer. They’re also inexpensive enough that you simply toss it if it breaks.

    That’s the direction of computing. We’re not there yet in terms of price, but the iPad has shown us that we’ll be there sooner rather than later.

    Does anyone even look at a tower computer anymore?

  6. @ currentinterest
    great point buddy!
    better than some obtuse guy saying ‘competition is good!’
    I asked one of those guys – what defines ‘competition’? they’re clueless. They believe a company inventing a half ass iphone or ipad is competition to keep Apple on its toes instead of understanding there is no competition, Apple competes against itself because that’s in it’s genetics. A copycat company is copying, not competing, it can never finish the race – because it has to follow the leader.

  7. @currentinterest

    As a consumer, the only thing this “leak” has done is to put fear in my heart and fear of being poked in the eye by buying early only to see the price decrease, (a la iPhone!) don’t forget no one of the early adopters who paid $100 more was happy.

    I’d say this almost guarantees that prices will decrease and consumers should definetly wait it out.

    I know I will, I’d rather have the cash, than a coupon for future purchases of Apple goods, as it was handled for the iPhone!!

Reader Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.