Based on Sales, iPad Pricing Could Take a Dive
Back in 2007, the iPhone was originally going for $599. That is, until people got up-in-arms about the whole thing, and Apple realized that dropping the price would mean more sales. For most people, the desire alone doesn’t mean they’ll pull the trigger on a purchase, especially if they think the price is way too high. And if analyst Bill Shope is correct, then the market will again dictate whether or not the iPad’s price stays the same, or takes a dive.
At the Apple keynote on January 27th, when Apple finally unveiled the iPad, the word around the Internet was that the tablet would probably be around $1,000. This made sense to most, so when $499 appeared on the screen, there was a collective gasp. Even as the pricing was displayed for the other models, including 3G, people were shocked that the prices were so low. (At least, compared to the rumors.) But apparently the reaction around the block has changed a bit, and now people are wondering if the $829 price tag for the 64GB, WiFi+3G mode is indeed too much money.
According to Shope, Apple executives are going to be watching the market closely, and they are prepared to remain nimble when it comes to the iPad’s pricing. Basically, it means that if more people are crying out about the price, compared to people purchasing the tablet, then it’s likely that we could see a price drop shorty after launch. Is this a fool-proof way to handle things? Of course not. There’s going to be early-adopters of the iPad (us!), and if Apple does maneuver the price lower by any significant amount, there’s going to be quite a few people upset about that.
As it stands, most people seem to be more upset about the $130 premium charge of the WiFi+3G model, when compared to the WiFi-only model. This could all be handled pretty easily by carrier subsidy, though, especially considering the 3G is already “locked” to AT&T. If the wireless company and Apple could agree on a contract-based price for the Apple tablet, then a lot of the overhead pricing would be handled right off the bat. Considering the pricing for unlocked phones, there’s a possibility that the $499 iPad with WiFi only could go for under $100, after subsidy and obviously a mail-in rebate. But of course, this would negate the contract-less $29.99 unlimited data plan that rocked the industry at the announcement, so the chances of that happening are pretty small.
[via Apple Insider]




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