Apple To Reduce iPad Price?

BUSINESS. .

I have always been skeptical of the recently unveiled Apple iPad.

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hardware 01 20100127 ndf8j 19672 GuCTg 19672

In essence, it is a larger iPhone (without the phone) which given its larger screen makes watching videos, seeing photos and playing games a lot funnier. And, no surprise given Apple’s focus and emphasis on style, it is one beautiful product.

At starting price of $499 and necessary monthly subscription fees if you are to browse the web and download apps (the date plan is sold separately otherwise you need a wi-fi locale), is it worth it?

The iPad is indisputably very cool to use and a very sleek product. But at its current price and monthly expenses it is not useful enough to justify purchase. The iPad strikes me as a limbo product. When your at home, although the iPad is a nice device to relax with on the coach, your desktop and notebook can do more and have larger screens so, I believe, they trump that iPad 8/10 while at home. And if on the go, the iPhone is way more convenient. The gains of a bigger screen and improved app-use are almost marginal given that the iPhone’s screen is more than satisfactory and anything you can do on the iPad you can do on the iPhone (the format is not that important). Furthermore, you can make calls on the iPhone. And the iPhone fits into your pocket. Why would you want to carry around an iPhone and an iPad just so photos are bigger on the latter? Especially since it would $500 more and require you to now not only pay for your iPhone monthly subscription but also start paying a similar fee for the iPad? Relaxation on the coach and a better viewing experience does not justify the price.

Apple is asking consumers to spend too much money for nearly marginal improvement. Even with phone service on the iPad, which would let consumers in theory to cease their iPhone, it is still not worth it because nobody wants to carry a mobile that big. It’s cool, but cool is not always useful enough to justify expenses. Especially in a bad economy.

I think the iPad will be a dud.

And it turns out America is agreeing with me:

"iPad hoopla" has passed, according to a survey by electronics shopping site Retrevo, and consumers have lost interest after the product's unveiling less than two weeks ago. More than twice as many respondents said they were uninterested after the iPad was announced compared to a week prior.

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pulse 020410 chart1 N2DpY 19672

The iPad is just too hyped and people think its cool, but just not that cool and useful and thus not worth the price.

This is why just one month before the iPad is released, Apple may lower the price to increase demand:

We all love a bargain, and with the prices of Apple gear being what they are, you would love to save some money right? According to Credit Suisse analyst Bill Shope, Apple executives have said that the pricing will be “nimble” on the iPad. It depends on the demand.

Now that’s not the same as an official confirmation that there will be a price drop, but it makes a lot of sense. If they lower the $499 price point they might actually have competitors worried. A lower price would certainly help any fence-sitters make up their minds to buy.

Plus it won’t take long for competitors to offer a closer iPad experience of their own, where you get more for that price, so it benefits Apple to lower the price now rather than in 6 months.

I think it would be worth $100-200. I would pay for no more than $150. Because it is cool after all.

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