“Apple has invited the press to an event on Wednesday that will include the introduction of the iPad 2,” Anton Wahlman writes for TheStreet.
“Most of the hardware specifications of the iPad 2 are known, more or less, thanks to endless blogger speculation: one or two cameras, a faster processor, twice the RAM, some tinkering with battery, screen, thickness and bezel. In other words, in the big scheme of things, nothing too exciting,” Wahlman writes. “Do you know many people who have held off buying the iPad because it lacks a camera, dual-core CPU or 512 megs of RAM? No, me neither.”
Wahlman writes, “When you go from planning under 10 million units to 60 million, you can negotiate much better manufacturing prices. Components can also be optimized for cost, to a different degree. Apple is pre-paying for critical parts, such as memory and displays, taking risk out of the contract manufacturers, which pressures the price down. This probably means that despite some minor hardware bumps (camera, RAM), Apple could remove close to $100 in cost from each iPad.”
Read more in the full article here.
The likelihood of a $400 iPad is extremely low. While the supplies cost may have come down, shipping expenses are now going through the roof (thanks to Libyan unrest-induced fuel price increase), which may end up eating up all the difference.
If it DID happen, though, it would simply slaughter all the competition right out of the gate.
Even if shipping were to double, the price per piece would not increase that much based on the number of iPads they can fit per shipping container, unless theses are being shipped via air. But still.
All iPads are indeed air shipped, the economics of ocean transit don’t work out on small form electronics, or those with life cycles of less than 18 months. That air cargo transit capacity is secured (bought) up to 6 months ahead of time, and usually hedged against at the corporate level. Bottom line, fluctuations (even up to 25%) on barrel of oil won’t impact consumer price point or Apple’s profits.
iPad weighs less than 2 pounds. Oil prices havent gone up that much. Effect on iPad? Zero.
100 dollars worked back to wholesale is only 25 bucks.
If apple can squeeze out that much – then boom! 399 ipads!
Not to mention a $299.00 ipad 1.0 for those that can get by just fine with the current model.
I’m thinkin’ $499 for the new 32gb wifi model would be just as devastating to the competition.
Apple already owns the market but if they drop the price for the entry level model to $399 we can safely say “Game, Set, Match”. There is no way anybody else can offer that level of quality for that price.
There are some on the forum who would argue that making the iPad too cheap goes against the RDF.
Cheap is a state of mind.
If the price drops, that will be great, like Predrag says, because even as it stands right now, it’s chaper than any ‘ competition can price it. If it doesn’t though, then this expectation will only cater to the manipulators who hope to see disappointment drop the stock.
Once again Predrag nails it- I would be VERY surprised if the iPad 2 was under $500. Now, they just might continue to sell the iPad 1 for $400, but not the iPad 2. There’s just no reason (yet- i.e., no real competition) to do that. Also, it’s not really Apple’s Modus Operandi (=MO). They almost always leave the price alone and add features.
Though, I have to admit that I would extremely happy if they did drop the price as I plan to buy 2 of these (and, for the record, I AM one of those people who waited a year for the iPad to get a front facing camera). And I KNOW I’m not the only one…
I agree. I’m also waiting for the iPad 2 since April last year.
Well, that’s two.
Actually, I know several people who have held off buying the current iPad because it lacks a front-facing camera. The iPad is perfect for video chat except for one small detail… no camera.
I did for the longest time also.
And I also know 3 people who waited also.
+1 waiting for front camera.
Waiting also.
I’ve waited as well. Ready to buy ASAP…
Fellow waiter
Me too. I’ll get my iPad 1 back, commandeered at home to read the daily newspaper, thereby saving the price of a base model iPad per annum. Next, they’ll get video calls from me on my iPhone 4 at the office, appearing in their newspaper. Magic!
I can see this happening. I don’t believe Apple will match the competitors specs wise, but they will improve over 1st gen iPad specs and add software features, so in order to avoid direct comparisons to competing tablets, lowering the price to an unreachable point due to clever supply chain management could be a killer to the competition.
Nice if true.
But also, that cuts the resale value of iPad 1 also…
I don’t think Apple cares about the resale price of their products. They don’t stand to gain from the sale of them.
Mr. Jobs, Mr. Cook, nuke the zoooooom! Revised iPad 1: $349,, iPad 2: $449!!!!
That would be awesome
This would be truly welcome and would see of the plethora of tablets being released, but by the time it hits the UK the prices would be back to where they are now I suspect!
@Backlash
A priority that ranks right up there with the HDMI out port.
For you maybe. But then you aren’t everybody. We’ll see how iPad 2 sales go with a camera. I predict sales will be very robust with that new feature.
iPad 1 8GB at 349
iPad 2 entry $499. As for the same ol same ol song Wahlman is singing about minor bumps in specs no big deal……. WELL, Thunderbolt is going to be huge. A big shift in the possible options available for the iPad and a cubic metric buttload of new functionality. iPad 2 should really change the game and shake things up.
Thunderbolt on an iPad 2? What would be the draw of that?
I’m not knocking it, I just don’t know why you need such a speed demon of transfer on the iPad.
That said, I doubt Apple would hold an event for the iPad 2 just to cover some minor upgrades. Can’t wait until Wed!
Not just the speed transfer. It would be excellent to connect to all kinds of devices: TV, Projector, it’s the next gen I/O port. The possibilities are endless.
What is the point of a 8GB iPad. Hardy anyone would buy it. And if u do u are retarded!!
Lower price, lighter weight better specs. I want to believe. But seems too good to be true.
There’s an old shtick from SNL in the 90s called ‘The How Do You Say? Ah Yes, Show with Antonio Banderas’ or some such. It had Chris Kattan playing Antonio, where he would strum his guitar for a bit and then threaten/tease to take his shirt off. His band would then plead with him that it’d be too sexy and to not do it.
Antonio Banderas: I think i’m feeling the sexy.It’s getting hot in here, no?
Guitar guy 1: No, no don’t do it, it’s too sexy my friend, don’t do it.
Antonio Banderas: You’re right, it’s not time for a sexy.
Sometimes it feels like here, we’re the band saying the same to Apple.
Unlikely they will drop the price points for the new iPads. The only way the price is going down is if they sell the old models for $100 less. However current rumors are showing them being sold out so it doesn’t look like they want to fragment the line. Most likely if Apple can get better component pricing they will use that in increase their margin since we know Apple sacrificed a slimmer margin on the iPad initially to increase volume.
Just another setup for the stock to drop when the price is not “what the analysts said it would be”.
Yep
Keep same price for version 2 iPad.
Keep making iPad 1 and sell cheaper, especially to businesses who won’t allow a camera.
Add Thunderbolt to version 2 iPad, along with camera and beefed processing power across the board.
A few simple color choices for teenagers…no flowerpower.
Add some cool apps like PhotoBooth.
Make visually distinguishable from the 100 clones released in the next 6 months.
Meet demand.
Then say “Check Mate” without sitting on your thumbs like RIMM CEO’s did.
I expect to see the price stay the same with a lot more features added, CPU, camera, memory, etc.
They may leave the lowest model alone (no cam, lower CPU, memory) and drop the price, but I think even the lowest model will be upgraded.
I would enjoy a power move like this from Apple.
Not going to happen, IMO.
The current iPad is already insanely cheap, considering it’s an Apple product and comparing it to other tablets.
It killed any reason for the existence of the Kindle DX.
How much is this ipad going to cost?
Not $999
Not $899
Not $799
Not $699
Not even $599
But just 10 easy payments of $49.99
There are millions of people like myself waiting for the iPad to get their cameras, so yes, that will be a huge factor in the upcoming surge of sales for iPad 2.
What is this guy smoking?
If they drop the price that much…I will buy TWO of them…
absofrickinglutely…One that goes to the office and functions there for business and one for home.
Just because someone at TheStreet.com said something you like doesn’t change their nature. That site tends to post “news” that seems designed to move the stock.
Not sure why MDN doesn’t point this out whenever they link to those guys (or maybe not link at all).
Add me to the list of potential customers who did not buy an iPad because of the absence of a front-facing camera.
I am also the same customer who did not buy the original iPhone that was lacking 3G.
The existing iPad already is selling for half of what it was expected to sell for [everybody predicted it to retail for about $1000 before it was released].
If it’s price drops another $50-$100, there will be no point to even bother trying to make an Android tablet, as nobody else will be able to compete on quality.