20% of non-iPad buyers would consider a $399 entry-level iPad 2

“With Apple expected to introduce its third-generation iPad next week, a survey of consumers not planning to buy an iPad shows that 20 percent would change their minds and buy an iPad 2 if Apple continues to sell last year’s model for $100 less,” Neil Hughes reports for AppleInsider.

“RBC Capital Markets conducted a survey of 1,100 consumers at the end of 2011 about their tablet buying plans,” Hughes reports. “Among those who indicated they were not planning to buy an iPad 2 in the next 90 days, 20 percent indicated they would be ‘likely’ to buy Apple’s second-generation tablet if it were sold for $399 and up.”

Hughes reports, “Analyst Mike Abramsky with RBC said in a note to investors on Wednesday that if Apple were to continue to sell the iPad 2 at a reduced price, it could allow the company to not only expand its addressable market, but also head off lower-priced [tablets]…”

Read more in the full article here.

[Thanks to MacDailyNews Readers “Fred Mertz” and “D. King” for the heads up.]


  1. Just goes to show that the bottom end of the price scale isn’t worth going after. People who recognize quality, functionality, and real value will seek out the best. For others, it never cheap enough.

    1. Exactly.

      You could price it at $54 and someone would still bitch.

      Plus I’m not sure I’d want to sell to the Walmart crowd. Too high of a percentage of stupidity.
      Support calls would go up drastically.

      1. In my experience, people who shop at walmart are generally smarter than people who hate walmart.

        People who bash walmart are generally economic ignoramuses who think the soviet union was a great idea.

  2. Are those “non-iPad buyers” willing to buy an android tablet with 7 inch screen for 499 with contract (the new samsung galaxy II), I bet they will.
    “Anything but apple” people is not worthy to mention.

      1. Kindle is great if thats all you want. And while i dont have one i would think the kindle would be excellent for the crowd who just wants an e reader. I have seen lost of them at the gym people bring and read stuff. I am not a reader but if i wanted an e reader kindle would be what i would get. However an 8IN ipad i dont know that it would be that great.
        I mean maybe it could fill some needs. I know it might be cheaper and could be good for young kids maybe.

  3. We are buying 50 plus iPads and ATV’s this summer for our hotel, for iur use the iPad 2 would do just fine, if they are still offered at a lower price, we would jump

    Want to call front desk or or another room , FaceTime , call home? TruPhone, search for a movie , remote for ATV


  4. I’m not in that 20%. I must be in the 30% below that since I’d buy an iPad in a heartbeat if it was $300. I’m a Mac fan with two iMac desktops, two MBPs, one MBA, iPhone and three iPods. But no iPad – because it’s not designed to help me get work done. It’s for content consumption, but I’m a worker and use my Apple gear for my work. Anything iOS, my iPhone fulfils that need. I’m waiting to see how the Windows 8 tablets and whether they are more suited to people who need to get work done.

    1. Ah… just so you know that “designed for content consumption” line was a talking point the apple haters were using to try to stall the launch of the ipad.
      Go to an apple store and try the iPad out. The apps that have truly embraced the interface are absolutely stunning (things you can’t do with a mouse like multiple fingers down at once -ie hold a button down and drag or slide with another finger) That inclused a large number of content creation (not consumption) apps.

      1. I live in a household where someone else has an iPad, so I get to play with it anytime I want. Sure, it’s nice for reading webpages, but it has not tempted me to get one. So, yet, my comments were based on extensive use of an iPad.

        1. Mine is used daily in business ….. We have four at our roofing company …. We:

          Show customers photos of their roofs
          Do PDF presentations
          Weather and Radar Apps …. Huge for us
          Maps …. Huge for us …. Used today finding a set up area just to do an estimate in downtown Wheaton, IL ….. I was on Hale Street, chek it out, it is a mess with one way streets and very limited parking, but Maps helped me find ideal spot to set truck / ladder ….
          iCal with everyone’s schedule updated in real time

          And the list goes on ……

          Yea, we don’t just surf the web, play games and email ….. It is a very nice tool to have ….

        2. I don’t know, now you have me starting to doubt your authenticity. I get that people who have never had any exposure to an iPad and saw the “content consumption” mantra of the apple haters repeated ad infinitum might mistakenly believe it.
          However now you are telling me you have on in the house (and presumably have used it?)
          I am sorry either you are incredibly obtuse, or you are just spinning a troll.

  5. Great opportunity … Not!

    If non-iPad customers account for (I’m being generous) half of the market, then the 20% of that group mentioned in the headline would amount to 20% more iPad customers.

    With unit sales up 20% and price down 20% (from $500 to $400), Apple’s iPad revenues would be unchanged. However, Apple’s production costs would be higher, since it would be producing more units.

    The upshot: lower profits for Apple.

    As darknite said in the 1st/top comment above, this incremental market share is not worth going after if price cuts are the only way to get it.

    1. Bentley Motors should sell their last years models at a huge discount so that everyone can buy them too. Oh yah, they should totally make a pick up truck too so that they can corner that market too, right?

      Your comments are right on the money and we know that Apple does not drop quality, user experience or price to get market share and that is what we love about Apple.

  6. Which is more important for Apple? To make money or to change the world? If it is the latter, then to make the smaller (and cheaper) iPads would be the way to go.

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