- Apple followers are not price sensitive and typically want "the best", thus, a relatively high price of the 3G 64GB model is a way for Apple to quickly re-coupe the development cost. Recall how successful the iPhone was with a very high price for a phone.
- The "odd" pricing of the 3G modes ($629, $729, $829) is a way of framing to WiFi models too appear more affordable at their $499, $599 and $699 prices, thus they will easier penetrate a more price sensitive market segment.
- It is a stroke of brilliance to price (most of) the products considerable lower then the $1,000 that the rumor mill expected. And lower then Lenovo's and (I think) Dell's tablet computers.
- The iPad will not make a dent in the netbook market for some time; it is too different, too expensive and too much Apple. At current prices it appeals to Apple users who don't want the windows experience (like me) and therefore have not yet bought a netbook. As prices of the iPad will drop significantly over the next year to two - this will change.
Per Sjofors
Founder/CEO
Atenga Inc
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4 comments:
I think you are spot on with the device pricing comments, which are the only thing that matters from Apple's point-of-view. For the consumer, this is a razer and blade product and that's where I think the pricing missed the mark. $29.99 for unlimited data is the same as unlimited data for the iPhone (mine's $30/month). In my opinion, AT&T missed a huge opportunity to reset the reference price for unlimited data. I'd love to hear your thoughts on service pricing.
Glenn,
You're right. But after all both Apple and AT&T are in the business to make money, and if they don't have to reduce the price, they don't.
Your comment made me think - if I get the iPad I can toss out my iPhone and get a small regular cellphone with a better camera and much cheaper plan.
Per
Great point. AT&T could really lose with the iPad. I can't believe they've promised month to month fees.
I was assuming the unlimited data would be priced higher than the iPhone, because (I think) there will be much more data to access via the iPad.
I would be surprised if the prices come down. I would bet it will be more like the Mini in that hardware specs will continue to be increased over time but the pricing will remain fairly constant.
I would expect the product line to simplify (for instance, only providing 3g models) as Apple recoups its development costs.
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