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Old 10-02-2011, 07:31 PM   #41
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Seems to me that Apple has to drop the price of the entry level iPad by at least $100 to prevent loss of market share.
I don't recall anything in Apple's past product strategy indicating they're willing to compete on price, but we can always hope this will be an exception. It will be interesting to see what happens if the Amazon tablet gains some significant market share.
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Old 10-02-2011, 08:00 PM   #42
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Originally Posted by westcoast
The Amazon tablet can only be compared to the least expensive iPad, given that they both lack 3G/4G capability.
Or compare to the iPod Touch 4th Gen which goes for around the same price. You trade off iPod's BT, webcam, and mic for the Fire's screen size and Flash.
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Originally Posted by REWahoo
I don't recall anything in Apple's past product strategy indicating they're willing to compete on price, but we can always hope this will be an exception. It will be interesting to see what happens if the Amazon tablet gains some significant market share.
ITA. I expect Apple to just add more features to it's offerings and keep the same price.
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Old 10-02-2011, 08:07 PM   #43
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Seems to me that Apple has to drop the price of the entry level iPad by at least $100 to prevent loss of market share.
Apple has a great reputation for product design and for software/hardware compatibility that is unmatched by rivals. They also still have a big advantage over Android-based machines based on the number of apps (and the quality of those apps). The Fire might well take market share from Apple if it sells enough units to induce developers to churn out versions of their iPad apps for it.

As "thrifty" as I am, I recently bought a (bottom-of-the-line) iPad strictly to run a single app, and to do it with nearly 100% reliability. It's my first Apple computer. I think it's okay.
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Old 10-02-2011, 10:22 PM   #44
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Originally Posted by westcoast View Post
Seems to me that Apple has to drop the price of the entry level iPad by at least $100 to prevent loss of market share.
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Originally Posted by REWahoo View Post
I don't recall anything in Apple's past product strategy indicating they're willing to compete on price, but we can always hope this will be an exception. It will be interesting to see what happens if the Amazon tablet gains some significant market share.
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ITA. I expect Apple to just add more features to it's offerings and keep the same price.
Agree with the responses to westcoast. Price dropping to compete with a lesser product is just not the way Apple does business. And it seems to work for them (slight understatement). So far, Apple has basically said they just don't care to compete in the low end price range.

Amazon's product may do well, but it is stripped down compared to an iPad. Just not in the same market. If Apple feels the need to respond, they will make a stripped down version (like they did with the Shuffle Ipod), and keep the price on the higher products the same.

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Old 10-02-2011, 10:31 PM   #45
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Seems Apple is fine building superior hardware and a loyal following. I'm curious to see of the Fire is as smooth as the iPad. If it's even close ti's probably worth the $200. I am thinking this is a great option for my DW. It's cheap enough to buy even if you only use it for reading and a few games here and there, which is what she would like.
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Old 10-03-2011, 01:18 AM   #46
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Originally Posted by ERD50 View Post
Agree with the responses to westcoast. Price dropping to compete with a lesser product is just not the way Apple does business. And it seems to work for them (slight understatement). So far, Apple has basically said they just don't care to compete in the low end price range.

-ERD50
Weren't iPhones significantly more expensive when first introduced? What about the price point on iMacs? They're more than PCs but lower than what Apple charged five years ago for entry level machines.
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Old 10-03-2011, 05:38 AM   #47
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Right now there are 3 maybe 5 OS platforms that will be be in the market place:

  1. Windows
  2. Android(s)
  3. Apple OS
  4. Some other hopefuls (HP with the palm pilot purchase, RIM).

MS (and their partners) will really push apple on the same quality at a lower price point. We will see what happens there.

The Android offers are compelling too.

I am somewhat price sensitive. If the lower cost product is a lot lower and of sufficient quality and capability... I will buy the lower cost product. I would probably only buy the other product if there were some intangible preference that really mattered to me.

I am not willing to pay an extra 25% or 50% for the cachet of a brand.

AMZN and Apple have different strategies and motives. Apple is selling a general tablet device to be used for whatever. AMZN is selling a book reader/POS terminal that can be used for browsing and other things... for which they expect a low return on the device and big returns on future sales from the AMZN sales and service platforms.
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Old 10-03-2011, 06:54 AM   #48
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Apple makes a lot of money both on sales of content and their hardware. In this they are like Amazon. Amazon sells physical goods as well so the hardware they are selling is a means to sell more content and to sell physical goods. There is some overlap between the two companies.
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Old 10-03-2011, 08:22 AM   #49
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What about the price point on iMacs? They're more than PCs but lower than what Apple charged five years ago for entry level machines.
Apple iMac Specs (All iMac Technical Specs) @ EveryMac.com

No, not really. Original iMac G3 from 1998 was $1299 entry level, and that price has pretty much remained the same through its history. Currently $1199 - not significantly lower than the $1299 from 2006. They did have some 'stripped down' iMac G3s for a while @ $799. But generally, they add features and hold the price.



Quote:
Weren't iPhones significantly more expensive when first introduced?
They dropped the price shortly after introduction. I don't know if that was a change in philosophy to go from high-end niche to a wider audience, or if sales were below expectations. Other than that I don't follow iPhone pricing, but I doubt they are playing a 'price war' game, unless you have evidence to the contrary.

And they certainly won't get in a price war with a lower featured device (no camera, etc). If they want to play there, they will create a lower priced model - but I don't think a no-camera-no-mic fits in with what they want to sell at this point. They have proven time and time again, you don't need to get into every market - you get into the markets where you can make a profit.

Darn, I wish I still held their stock!

-ERD50
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Old 10-03-2011, 09:26 AM   #50
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... the Amazon tablet has a smaller screen than the iPad...
The smaller size could be a selling point for someone who doesn't want to "lug around" the larger iPad. I find the iPod touch screen big enough for most apps. I would like it to be a little larger for reading ebooks.
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