The Wall Street Journal is reporting on a report from Credit Suisse analyst Bill Shope based oh his meeting with Apple executives which suggest Apple has left room for future price reductions if iPad sales demands don’t meed expectations.
Shope also wrote that despite the seemingly aggressive pricing of the iPad – the lower-than-expected price points range from $499 to $829 – Apple seemed to indicate it would respond with price cuts if demand for the device wasn’t revving up the way it liked. “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),” Shope wrote.
This is surprising especially since many expected the entry-level iPad would cost much more than the announced $499. Additionally, Apple doesn’t’ seem afraid of the iPad encroaching on other Apple product sales like iPod/iPhone/MacBook sales.
What gets me about this story, is the fact that we’re supposed to be surprised that Apple built in a little wiggle room in the pricing schemes. A lot of companies do this.
Also, Apple isn’t worried about it cannibalizing other Apple product lines because it’s not aimed to do that. The iPad is aimed at eating into similar product categories from other companies. Netbooks, laptops, etc.
Continue reading:
- Everything New Apple Just Announced (Septembe
- Apple Watch Pre-Order
- Apple Research Kit launches with 5 Apps
- Apple TV now only $69
TAGS:
