iPad Prices Could Drop Quickly

By  |  Monday, February 8, 2010 at 11:02 am

Credit Suisse analysts met with Apple executives, and has come out of those meetings with an interesting point of view: that Apple’s pricing on the iPad may actually be fluid, and the company may be ready to bring prices down if it’s not selling to the company’s expectations.

Such aggressiveness seems to indicate that Cupertino is very serious about carving out a market for its newest device. It also comes as a shock to much of the technorati, who for quite awhile expected the tablet to have a price of at least $700 if not much higher.

“While it remains to be seen how much traction the iPad gets initially, management noted that it will remain nimble,” Credit Suisse analyst Bill Shope was reported as writing in a Sunday research note by the Wall Street Journal.

It’s not all too clear how well the iPad will do. While netbooks in general have sold quite well, Apple’s device (while not exactly a netbook) is priced above the average price of its competitors. Add to this that getting the most benefit (adding the 3G capabilities) will set you back $629, it may be a bit above most people’s price range.

Personally, the magic price for me with this device (which includes the 3G) would be under $500. I’m curious: what’s yours?



15 Comments For This Post

  1. Mike Cerm Says:

    Considering the App Store and accessory revenue Apple has rolling in, and the lock-in that both serve to create, I’m surprised that Apple isn’t subsidizing the iPad. Considering it takes no R&D to make a giant iPod Touch, Apple could be selling the iPad for $300 and still making a profit.

    For me, personally, I think I’d need to see the 32GB iPad with GPS at $300 before I’d consider it. Until then, there’s just no reason to put down my netbook. Even at that price, it’d still be a hard-sell, because I’d probably rather just have a $200 iPod Touch that I can actually carry around.

  2. Tom B Says:

    Well, it’ll be a better choice than a slow, cheezy net book for MOST people.

    It’s hard to say whether the price comments reflect aggressiveness or nervousness, though. Apple rarely drops prices; they beef up features. One exception was the iPhone, which dropped in price shortly after release. I think these comments suggest aggressiveness: “Publishers; we are serious. Work with us, or be forced to work with Model T (any type color you want, as long as its black) devices, like the Kindle.”

  3. ipad Says:

    As the parts become more cheaper than the price of the iPad will come down. When they get it below the $300 mark thats when I think the average person(not just Mac fans) will buy one.

  4. Mike Cerm Says:

    A “slow, cheezy net book” will let you send and receive instant messages while you browse the web. The iPad won’t. On a netbook, you can listen to Pandora and check Facebook at the same time!!! Is this the future?! No, it’s a sub-$300 netbook, and I’d say it’s a far better choice for most people.

    As long as the iPad is stuck in 3rd-device territory by software limitations (multitasking, flash, accessible storage), and it’s hardware limitations (not pocketable, no expansion), it can basically ONLY succeed if it’s priced very aggressively. It’s not bad to have a device that only does a few things, if it’s so cheap that you don’t care. But at the moment, a device that costs more and does less than the alternatives is not a winning proposition “for MOST people”.

  5. Geek Says:

    No keyboard, no adjustable display, no sale.

  6. KenC Says:

    How many netbooks have 3G? How many netbooks have a great IPS LED backlit display? How many netbooks have 10 hr battery life? How many netbooks have multitouch? How many netbooks have over 140,000 apps? How many netbooks have an SSD for memory? How many netbooks come with a 3G option that doesn’t require a 2-yr commitment? How many netbooks come with a 3G option that allows unlimited data for $30?

    I think $500 is cheap for a wifi iPad, and $629 is cheap for a 3G one.

  7. FrApple Says:

    So disappointed here. Apple had the chance to revolutionise the market here yet they’ve hampered it I feel by charging a high price for it and limiting it’s functionality. If it had the exact same specs of a netbook, and by that I mean the ability to multitask, flash support, etc etc, then perhaps the price would be more acceptable but for a glorified iPhone it’s excessive.

    Saying that, I think the iPad is going to sell bucketloads and I’m sure his Jobness has got loads of extras that they kept back to release over time.

  8. Ipad Prices Says:

    anyone know what it’s going to cost in the UK ?

  9. Paul Horowitz Says:

    I definitely agree, the magic price is under $500 for a full featured version. I personally can’t justify the current $500 model with only 16GB of memory. That’s less space than my iPhone which is already maxed out from media. If Apple wants the iPad to be a media consumption tablet, they’re going to need to be generous with the storage capacities and have a lower overall price tag.

    I’m very excited about the iPad and it’s future but I’m going to sit on the sidelines and wait for revision 2.0, hopefully with a cheaper price tag, a lot more memory, and a video camera. I hate to say it, but until then, I’ll be using a Hackintosh netbook for my portable computing needs.

  10. iPad Prices UK Says:

    Play.com posted UK prices starting from £499 but that could just be a place holder.

  11. Katie Says:

    Great product iPad but I think its overpriced

  12. Compare Apple iPad Says:

    Anyone know if there is to be an iPad 2?

  13. Arlie Veksler Says:

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  14. iphone 5 buy Says:

    I think your chance that the ipad drops down to under $500 is pretty low.
    But you might have luck when the ipad2 will be released!

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