Report: Apple Flexible on iPad Pricing
9:52 am, February 9th, 2010, Ed Sutherland
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.
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.
“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]
Posted by Ed Sutherland in News | Comment on this article
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the question whether you need one or not is deceiving. I don’t need one, but heck i am buying one! My only concern now is if Apple is going to slash the prices a few months after i buy mine on the first day. I will probably get the $499 one just in case.
WetLight, on February 9th, 2010 at 10:07 am
Put Flash in the device, those that said no would change their mind. Many don’t want to spend money on a device with a crippled browser, when there are cheaper alternatives that do. It’s a great device otherwise. Without Flash its just an oversized Itouch.
Richard DelFranco, on February 9th, 2010 at 10:15 am
As far as I can tell, the device is magnitudes more powerful than any netbook, and I think that alone justifies the price.
Give it time, and people will realize the device is actually a lot more attractive than it currently seems. Just give the people a chance to touch it and use it. Apple knows this, and hence their determination to sell as many iPads as they can.
Clown, on February 9th, 2010 at 10:53 am
I was hoping for something that embodied more full OS X power and less iPhone compromise.
I want to be able to sit on my couch with it and access files on my desktop machines or my server. I want to be able to run (at least a subset of) desktop-class apps. And the lack of a webcam is an almost unforgivable omission. And… no hardwired Ethernet interface?
Without the features listed above, this device is of little or no use to me. I’ll probably get one anyway, but so far, it seems to be falling far short of what it could have been.
IT Guy in CO, on February 9th, 2010 at 10:56 am
Most people don’t care about the iPad.
That is because most people are imbeciles.
They have ZERO idea of what they’re getting for their $500 ….
Mossberg says Apple told him if it isn’t hot immediately, they’ll cut the price to goose sales.
CaryMG, on February 9th, 2010 at 11:28 am
Am I missing something obvious? Isn’t it self-evident that with all the mass-media hype about the iPad after the launch that the number of people who aren’t interested but also have heard of it would have dramatically increased? This strikes me as a prime example of misleading with statistics. I can’t believe Retrevo is that dumb, so maybe I really am missing something obvious.
Rob, on February 9th, 2010 at 11:32 am
For me the iPad is lacking in a few key areas:
1. Should be able to stream direct off a home network drive/server for video files. I’ve got hundreds of hours of film and TV saved for when I travel and I use my iPod Touch for that. I don’t mind syncing that up before the trip, as it’s for when I’m out of the house. If I have to go to my iMac to sync up the iPad when I feel like watching something I’ve got on my network drive, I may as well watch it on the larger 24″ screen of the iMac in the comfy chair that’s close by. There’s no incentive for me to go through syncing up.
2. Ditto with Photos. If I’m at home and want to pass round the iPad so people can look at my photos, it’s a pain to have to go and sync it up with the Mac to do this. I’ve got thousands of photos on my system. I’d be forever having to decide what to sync up. Is it going to be photos today? What about music? What about video?
3. It should really be a widescreen display. I know it says widescreen on the Apple site, but that’s a mistake. a 1024×768 display is 4:3 aspect ratio, and it’s NOT widescreen of any type. It’s the same aspect ratio as older VGA monitors and TVs! As most current TV and films is in at least 16:9 a/r, the next version of the iPad needs to support this. Letterboxing a video on a large TV is just about acceptable. To do it on a 4:3″ 9.7″ screen isn’t. You’ll lose almost 1/2 your screen height if you’re watching most modern films.
4. Flash. Now I know there’s a lot of bitterness in both camps on this issue. But It would be infuriating to me to not be able to watch the videos on the BBC News site on this, while my Macbook and iMac which are close by support flash. I know that html5 is making waves, but until it has support on major international sites like the BBC, Fox News (Yes, I know they’re opposites, but I like to hear both sides of the argument!), then legacy support is a high priority for me.
Bottom line, the iPad (for me at least) should work as a streaming device most of the time, and you only sync files onto it when you need to, like taking it out and about. That way, you have the flexibility at home that you need, without sacrificing the portability that it’s designed to have…..
Fearless Fred, on February 9th, 2010 at 11:32 am
“As far as I can tell, the device is magnitudes more powerful than any netbook, and I think that alone justifies the price.”
That is not even close to being true. Check out the Dell Mini 10. It is a much more powerful and much more capable device.
iGenius, on February 9th, 2010 at 11:35 am
Not surprising, as half of the potential users might have wanted a full OS X tablet, not a giant iPod.
As for no Flash – good riddance to a protocol keeping the WinTel monopoly alive. Flash needs an Intel compatible CPU, and only uses GPU assistance in Windows. Want to run a 64 bit browser – guess what, it doesnt even work in Windows. You have to run IE in 32 bit mode with Win7 64 bit.
And think of all those ads you won’t see any more, and al lthe security vulnerabilities you wont have. Remember Flash is a powerful interpreter too, not just a video player. These services need to move to an open platform eventually.
Wide screen – my 8″ nebook is 1024×600 widescreen. Really annoying for doing anything other than watching video. I’d rather it was square on such a small screen. Forever scrolling up and down a page while editing.
For me, I was going to buy an iPod touch for the family to use at home as they all love uing my phone for games and quick browsing in the lounge. iPad is only slightly more than what I was going to spend on the Touch, so I will get an iPad instead. I see iPad eating into iPod touch sales more than laptops.
John, on February 9th, 2010 at 7:07 pm
http://www.200linx.com/ The Ultimate iPad Home page
Apple’s new iPad is designed to make navigating the web easier and intuitive.
200Linx was designed to be the ultimate, most convenient iPad home page.
It’s brings you everything that’s good on the Internet in one click, on one place.
Guy Poz, on February 10th, 2010 at 1:23 am