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February 8, 2010

Execs say Apple could lower iPad price if market demands it – report

Filed under: appleinsider — Tags: 16gb, a-333-euro, a-per-month, cupertino, ipad, iphone, making-the-16gb, street-journal- — @ 5:25 pm

By Sam Oliver

Published: 12:25 PM EST

If the market does not respond well to the iPad and its price range of $499 to $829, Apple executives have reportedly said they could be “nimble” on its cost.

Analysts with Credit Suisse met Sunday night with Apple executives, and according to The Wall Street Journal, company officials indicated they could become even more aggressive in pricing the hardware. Currently, the 16GB model without Wi-Fi will cost $499 when the hardware debuts in March.

“While it remains to be seen how much traction the iPad gets initially, management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated),” analyst Bill Shope wrote.

When Apple revealed the iPad with a $499 starting price, it caught many off guard. Previously, analysts had expected the new touchscreen tablet to cost around $1,000.

To add 3G connectivity to the iPad comes with a $130 premium, making the 16GB model $629. The iPad will offer up to 64GB of capacity which, when paired with a 3G radio, will make the device cost $829 at its highest price. The 3G model is expected to ship by the end of April.

Apple made waves in 2007 when, less than two months after the iPhone debuted, the Cupertino, Calif., company slashed the price on its handset by $200. Apple began selling its 8GB first-generation iPhone for $399, down from its initial asking price of $599.

Another option to lower the price of the iPad could be carrier subsidies. Last week, a rumor surfaced that wireless carrier Hutchinson Austria plans to offer a 333 euro rebate on the iPad if customers agree to a two-year contract with 5GB of data each month for 29.90 euros.

So far, only the U.S. iPad data plan has been revealed. Carrier AT&T will offer 250MB of data per month for $15, or unlimited access for $30. Both plans come with no contract and can be enacted or canceled directly from the iPad at any time. One report alleged Apple chose AT&T over Verizon for the iPad data plan because AT&T outbid its competitor by offering lower prices.

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Execs say Apple could lower iPad price if market demands it – report

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Consumers lose interest in iPad after Apple’s unveiling – survey

Filed under: appleinsider — Tags: 16gb, expect-the-ipad, ipad, iphone, like-the-iphone, making-the-16gb, not-interested, product — @ 3:15 pm

By Katie Marsal

Published: 10:15 AM EST

Despite a highly publicized public debut, potential customers lost a great deal of interest in Apple’s new touchscreen iPad after it was unveiled, a new study has found.

A survey of more than 1,000 randomly selected customers at the online marketplace Retrevo found that 52 percent of respondents have heard of Apple’s iPad, but are not interested in buying one. Another 18 percent said they had not heard of the product, but also were not interested.

Prior to the product’s unveiling, 26 percent of those surveyed had heard of the then-mythical “Apple tablet,” but were not interested in buying one. That total doubled after the iPad’s official Jan. 26 unveiling.

“It’s the apps that sell smartphones like 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,” the company said. “Whether this device becomes a big hit is anyones guess but based on this study it sure looks doubtful.”

The survey found that awareness of the iPad is high — more than 80 percent of respondents said they had heard of Apple’s product. Of those, 21 percent said they need more information on the iPad before they purchase, and 9 percent said they would likely buy one. The company even tracked conversations on Twitter, and found the iPad announcement rivaled talk of the U.S. presidential State of the Union address, held the same day.

The survey results suggest consumers may not see how the iPad would fit into their lives. While 5 percent said they “definitely” need one, 61 percent said they do not think they need an iPad.

In addition, the $130 premium cost to add 3G connectivity was found to be a turn-off for potential buyers. While 12 percent would pay the extra money for 3G and 29 percent would think about it, 59 percent of respondents said they would not pay any extra for 3G.

Retrevo’s latest survey was conducted between Jan. 27 and Feb. 3 following Apple’s announcement of the iPad, starting at $499 and scheduled to arrive in late March. The results were compared to a previous study done between Jan. 16 and Jan. 20, before the iPad was unveiled.

Last week, another study of medical professionals found that one in five physicians said they are likely to purchase an iPad. Of more than 350 clinicians surveyed, 9 percent said they plan to buy the product immediately, while another 13 percent intend to purchase one in the first year.

Analysts mostly expect the iPad to have a moderate but successful start, selling between one million and five million in its first year. The product’s aggressive $499 starting price is seen to be its greatest asset. One analyst believes a sales “catalyst” must emerge — as the iTunes Store did for the iPod, and App Store for the iPhone — before the iPad sees significant growth.

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