Report: Apple Flexible on iPad Pricing

Report: Apple Flexible on iPad Pricing

Apple says it will stay “nimble” on pricing for its newly-released iPad, dropping the price to attract more customers. This comes as a new survey indicates a doubling of consumers not interested in buying the device once the tablet shifted from rumor to reality.

“Apple seemed to indicate it would respond with price cuts if demand for the device wasn’t revving up the way it liked,” Credit Suisse analyst Bill Shope said. Shope met with Apple officials last week. Shope said Apple “will remain nimble (pricing could change if the company is not attracting as many customers as anticipated.)”

The Cupertino, Calif. company has a history of unveiling products with a high price tag, then dropping the cost to fuel demand. The first iPhone carried an original $599 price, then dropped to $399 within months. To assuage early customers angry about paying the premium, the company offered $200 rebates.

Although an incredible amount has been written about the iPad since it was unveiled, more information does not always equate to more interest, a new survey finds. Despite a doubling of the amount of people who had heard about the iPad, just 9 percent said they wanted to buy the device. When the iPad was just a mythical “tablet”, 26 percent of people surveyed said they weren’t interested in the device. After the iPad was unveiled, that figure rose to 52 percent.

Report: Apple Flexible on iPad Pricing

Additionally, 80 percent of people are very well aware of the iPad, yet just 9 percent said they would probably buy one, the survey found. While 3G won’t be an option until April, already people are turning thums-down on paying the price. Nearly 60 percent of those surveyed said they would not pay the extra $130 for a 3G connection.
Report: Apple Flexible on iPad Pricing

“Whether this device becomes a big hit is anyone’s guess but based on this study it sure looks doubtful,” the firm said.

The Retrevo study suggests it may be too early to gauge iPad interest. “It’s the apps that sell the iPhone and it could very well be those same apps that motivate buyers to run down to the Apple Store and get in line to buy a shiny new iPad.”

[Via Wall Street Journal, 9to5Mac, and AppleInsider]

About the author

Ed SutherlandEd Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.

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