Price could be the next-gen iPad’s biggest surprise

“Pricing could be one of the more interesting revelations coming out of an iPad 3 launch, especially if Apple decides to continue selling the iPad 2, according to NPD Group Analyst Stephen Baker,” John P. Mello Jr. reports for MacNewsWorld. “‘Most analysts expect that Apple will keep the iPad 2 in the market at a lower price,’ [Baker said].”

“‘There’s demand at the price points below (US)$500, which is what Apple is selling the iPad for now,’ he continued. ‘Apple is nothing if not aggressive to extend their product line when they think the time is right,'” Mello Jr. reports. “If Apple kept the iPad 2 alive and started selling it at a lower price, it would surprise Tim Bajarin, president of Creative Strategies. ‘We have seen no indication of that,’ he said.”

Mello Jr. reports, “Nevertheless, Apple’s success at keeping the iPhone 4 alive while introducing the new 4S may be a temptation to repeat the tactic for the iPad.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Fred Mertz” for the heads up.]

Related article:
Apple’s next-gen iPad to bow in March with ‘truly amazing’ screen, says Apple employee – February 9, 2012


  1. I fully expect that Apple will keep the iPad2 around. With the push into schools this year, it would seem natural they would want to offer a lower-cost alternative to keep competitors out. The iPad2 seems perfect for that (unless they decide to go with a smaller/lower cost tablet, which could also work in a school setting)

    1. That’s not the same. Refurbished stuff comes and goes, you can’t reliably order 5000 of them, when they only have a few dozen on hand at any given time.

      iPhone 4 and 3GS aren’t refurbs; they are proper new products, fully supported and in proper packaging (refurbs are usually packaged in rather generic brown boxes).

      1. I buy only refurb Apple products when available. I figure these products have received better quality assurance testing than new ones, and they are less expensive. Also, Apple has a habit of realizing they’ve offered too much for your dollar and discontinuing their best bargains. I got two of the very last unibody Macbooks as refurbs after they were discontinued. Even now, you can’t buy a new Macbook of any kind anymore, but they are available as refurbs. and BTW, all of my refurbs have arrived in new item packaging with all the standard accessories.

        1. I used to think that way myself, till I got an iPod Touch 4 that was refurbished, straight from Apple. Within a week, i saw battery performance issues, and the unit was functioning slower then there previous iPod Touch 4 i had ( it died a horrible death so i bought a “refurbished” one to save $100 +/- .
          The refurbished one was running the same iOs as the previous one, and was running slow, very slow.
          I never jailbreak or what not, so I knew it had to be hardware, or could be issue linked to the battery that was clearly the original battery, as fully charged gave me half hour or less for videos. Hmm! And I know how to properly charge a battery from the start, to keeping the life cycle at its best (most people don’t as they don’t know how good and important it is especially thee first several charges for any new rechargeable battery).
          So I was disappointed, and I don’t like being disappointed.. so next time… new only.
          I am sure my experience isn’t something that happens often, or if it does no one complains because we know the risk and liability of any refurbished item. I hope your experiences have and will always be good !

          1. Eefurbs have ALL the “rights” as new product. Bad battery? Get it replaced! Bad bump to the exterior? Get it replaced!

            Also, same warrantee as new product!

            Even some new product can have a bad battery or a bump to the body during shipping not just refurbs. I have 3 iMacs countless iPods and iPhones 2 MacBook pro’s an Apple tv a couple of airport extremes……most of them refurbs (with exception of ipods and iphones) yet all were as new.

        2. I also only buy refurbished, from Apple although I’m not so sure about the better quality assurance as I purchased a MacBook pro and it arrived bent in one corner. It was bent so bad that you could not insert a CD in the drive. I sent it back and got another. What I usually do is use the money I save to get Apple Care.

  2. I fully expect that Apple will keep the iPad 2 in the product line and drop it to $299 for a 16 gig one. Maybe less. $249 maybe. I don’t think even Apple can do a $199 iPad 2 but you never know.

    $249 iPad 2 would kill the tablet market. Not that it needs to as it owns the tablet market.

    1. 16GB iPad 2 at $399 might be possible for WiFi + 3G. Below that is fantasy, IMO (compare to current $629).

      16GB iPad 2 without 3G? Probably no less than $349, at the best (compare to current $499).

      Apple doesn’t give stuff away or sell loss leader like Amazon. That are the lowest possible prices, IMO.

    2. “$249 iPad 2 would kill the tablet market. Not that it needs to as it owns the tablet market.”

      The trouble is that Apple wants to sell iPad 3s for about $500. The standard thing is do drip the price — Some– on the current model and the new model takes its place at the same price point.

      Just a thought,

    3. Yeah, seeing as the parts inside the iPad2 alone cost $270 (as of last june) and that dosent count designing it, manufacturing it, shipping it, or profit for resellers stocking & selling it.
      So no I don’t think they can even manufacture it for $300 let alone all of the other costs involved.

      Your comment is equivalent saying the Porsche 911 would be a great deal if they could sell it for $28K like the do the Hyundai Genesis.
      Well… yes I guess it would. But costs them more than twice that to build them (the least expensive 911 sells for just north of $82K US)
      (And I am not hating on the Hyundai, I am sure it is a nice coupe, but it isn’t even in the same class as the 911)

    1. Hey BLN what if they made a special one that was actually a phone just for you? Would you finally be happy or would an iPad phone still be too small for you, you jerk?

  3. A school iPad needs at least 32 GB – those interactive text books are HUMONGOUS – “Life on Earth” is nearly 1 GB, and that is only for the first chapter (and it is not even THAT impressive – I expected more interaction).

    And yes – I want a 128 GB iPad 3 (my 64 GB are getting full)

  4. I rather presumed it was a no brainer. Otherwise it will give that chink at which cheap if inferior Android devices will be allowed to compete, as they were originally allowed in the smart phone.

  5. I’m expecting the iPad 3 price to go UP if it has a 2X resolution display. I can’t see them offering that out of the gate at the same price point and maintain margins. iPad 2 can then stick around with a price cut of ~$100.

    The precedent for this was the Mac Mini, which went up by $100 after the last update.

  6. Q: Do you think they will sell next iPad at lower price?
    A: No
    Headline: Price Could Be the Next iPad Event’s Biggest Surprise

    Okay…LMAO…hell of a stretch there.

  7. Unless I need more coffee, I don’t understand the title and the article… the title makes me think there is talk that the new iPads will be much cheaper in price.. the article sounds more like a debate of keeping the iPad2 around at lower price when the iPad3 is out.
    Either way, Apple probably will continue to sell iPad2 until the stock runs dry, and will probably discount it by about $50 – We know for years of experience that the value will not depreciate whatsoever… just look at classified ads or your own experiences selling used devices.. they sell and there is generally little value lost. (iPads iPhones iTouches).
    There will be a few sparks out there that will start a huge wildfire of claims that iPad3 will be cheaper. When iPad3 details come out, we will see how the technology in it is better then the iPad2, and that it will be available for the same price as the iPad2. I seriously doubt there will be price drop. Why would there be?? Certainly not to compete ( you don’t need to compete when you’re the best at something, and clearly don’t need to dazzle people with fake magic like MS and etc). Plus the fact the price staying the same in light of inflation, and all that junk, no one can complain. and the 5% that do can get inferior junk then eventually reason with logic and get a real device made by Apple 🙂

  8. I work for AT&T and all of our smart covers have disappeared from stores and they are 50% off online at This could mean that we will only sell the new iPad, or Apple will be shortly discontinuing the iPad 2. However, we still have clearance iPad 1 cases and accessories, so who knows?

    1. Let me give you a little remedial math tutelage. Just the parts in an iPAD 2 cost $270 even if they can assemble them for $30 (which is pretty unlikely considering it takes days of handwork) it still would cost Apple over $300 to make one (and that dosen’t account for R&D administration and profit for resellers)
      So $200 (the “coo’ price you mentioned) less the $300 (minimum) just to build them nets them a loss of $100
      (and again that is the minimum and dosen’t include administration R&D, shipping and profit for retail stores.)

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