Thread: iPad 3
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screensaver400
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Join Date: Jan 2005
 
2011-03-21, 07:09

I'm not sure I see the iPad ever dropping below $499. I suspect the margin on the $499 model is very low, which is made up by the higher capacity versions. It doesn't cost anywhere near $100 to increase to 32GB from 16GB.

We're so used to technology prices dropping, but it can't continue forever. At some point inflation will catch up, and the price will slowly creep up. We've seen that with the Mac mini and iMac, and I think we're at about the lowest point we'll see for the iPad. Tech prices are almost like a reverse bubble--people expect them to drop forever, but that just can't.

As memory prices drop, it would make sense to keep the 16GB model at $499, but made it 64GB at $599. Everybody wins--Higher capacities at lower prices for consumers, and a bigger difference between the two models provides an extra incentive to spend the extra $100.

Last edited by screensaver400 : 2011-03-21 at 10:44.
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