03-13-2012, 02:38 PM
RAMd®d wrote:
I'm thinking most of the people who will spend $399 probably wouldn't touch a $499 product.
If you ask me, the pricing indicates that the $399 iPad 2 is being intended less for consumers and more for corporate/retail/education markets.
For consumers, a $299 iPad2 would make much more sense. If you're an individual consumer and you've got $399 to spend on a tablet - there is very little from holding you back and spending the extra $100 to get a much better iPad (new/3).
So that begs the question, who wants a $399 iPad2? I think the answer is, people who buy in bulk, and don't care about the improvements of the newer iPad. People who think that saving $100 is more important than a retina display.
Schools would have this mentality, for those looking to issue iPad 2 as textbooks. Corporations who would issue them to workers who need web and email access, but don't need a ridiculously high res display. I saw that some iPads are being integrated with the Square app for use in NYC taxicabs as a POS terminal. You don't need an improved camera for that. Apple store employees use iPads as portabale point of sale plus inventory management. iPad2 would work great for that.
Ordering 200 new iPads would cost about $100,000. 200 iPad2 is a 20% savings at $80,000.
$20,000 is a decent chunk out of anyone's budget.
Don't think Apple's plans for iOS and the iPad end with the consumer.