Apple: iPad prices could lower

According to the Wall Street Journal, Apple could lower the price of the iPad if the new tablet device fails to sell well.

Credit Suisse analyst, Bill Shope, met with Apple executives recently and confirmed "management noted that it will remain nimble" regarding pricing based on consumer demand. Although the price points of the iPad were lower than many analysts expected it's still possible that the device will not gain much traction initially.

Apple originally introduced the iPhone at $599 and dropped the price to $399 a few months later. Initially there was a backlash from early adopters but Apple sent a $200 Apple credit to those who purchased the device before the price drop.

Reactions to Apple's latest gadget have been mixed. Based on reactions from Neowin commenter's, the expectation of the hyped gadget was not met by Apple. According to a poll of 1,000 Neowin members, 88% said they would not be purchasing the iPad when it goes on sale in March.

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38 Comments

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They can lower the price all the way to zero and the iPad will still be the biggest consumer electronics disasters EVER to be conceived. What a piece of rubbish.

Do they honestly expect us to believe that lack of handwriting, Flash and even lack of multitasking is because Apple didn't think they were useful? Or maybe its just that Apple don't have the technical ability to do them.

Sorry Stevie but it will take a lot more than a lower price for anyone to take the iPad seriosuly. Take a look at the other tablets that have succeeded in the marketplace already, maybe you could learn something from them?

C_Guy said,
Take a look at the other tablets that have succeeded in the marketplace already, maybe you could learn something from them?

Which are those? Because so far I haven't seen any.
Most are either too bulky, basically just laptops with the screen attached in a novel way or are way too expensive.
They only ones that seem interesting are the ones that aren't on the market yet or haven't even left the drawing board.

C_Guy said,
Sorry Stevie but it will take a lot more than a lower price for anyone to take the iPad seriosuly. Take a look at the other tablets that have succeeded in the marketplace already, maybe you could learn something from them?

Please enlighten the rest of us of these successful slates that are currently on the market and Apple could learn from.

Sure, there are some that look good that are coming out later this year. But I haven't had access to one of these, have you? They are certainly not on the market, yet.

Kirkburn said,
Depends on what your definition of "successful tablet" is.

Exactly, all of the tablets released since XPSP2 did what I wanted successfuly. Consumers are still new to this tech just like the smartphone field and it means growth for any company willing to jump in.

This is common practice for Apple. Happened with almost all product launches, ipod, intel based macs, macbook air, iphone.
Rule 1 - Always measure how much the customers are willing to pay for an overpriced gadget
Rule 2 - optimize the price point

neufuse said,
So Apple already thinks it might fail?

Apple didn't say that, you said that (as well as a lot of other people).

Apple executives said that the pricing will remain "nimble."

This is a new market for Apple. Just like the iPhone was a new market for Apple it is difficult to assess (even with market research) what pricing the "market can bare" when dealing with a new product.

I thought their initial price points were fairly reasonable given:
1. They are Apple.
2. $499 is lower than what most people expected.

However, the device came out to be much less than what people expected it to be... so I dunno. I think if they were able to drop the price of their lowest priced model then they will definitely sell well. If it were in the ~$300 price range, I would probably buy one with my "toy" budget despite its limitations.

I guess my point is, you can't make a device that does everything for everybody. But if you price it right, people will still buy it.

SweetRiverBaynes said,
Let's start a pact with everyone in the US. Have NO ONE buy it until they drop the price to $25. Even if it takes 6 months.

lol you can add me in that one... +1

Andrew Lyle said,
so.. no one buy it and they will drop the price.

again who cares... many are not going to buy again...
"Apple originally introduced the iPhone at $599 and dropped the price to $399"
don't you think $200 as an extra profit is a little too much

still1 said,

again who cares... many are not going to buy again...
"Apple originally introduced the iPhone at $599 and dropped the price to $399"
don't you think $200 as an extra profit is a little too much

Who says that's all profit? For $399 it might have been selling at a loss like they do with game consoles just to gain market share.

Andrew Lyle said,
so.. no one buy it and they will drop the price.

There are lots of isheep to buy it when released. Just after 3 month, a price drop will happen.