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	<title>iMore &#187; carrier subsidies</title>
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		<title>About that &quot;Apple Could Drop iPad Price&quot; Story</title>
		<link>http://www.imore.com/2010/02/08/apple-drop-ipad-price-story/</link>
		<comments>http://www.imore.com/2010/02/08/apple-drop-ipad-price-story/#comments</comments>
		<pubDate>Mon, 08 Feb 2010 18:14:07 +0000</pubDate>
		<dc:creator>Rene Ritchie</dc:creator>
				<category><![CDATA[Rumors]]></category>
		<category><![CDATA[carrier subsidies]]></category>
		<category><![CDATA[ipad]]></category>
		<category><![CDATA[price drop]]></category>
		<category><![CDATA[subsidies]]></category>

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		<description><![CDATA[The <a href="http://blogs.wsj.com/marketbeat/2010/02/08/apple-management-ipad-prices-could-change/">Wall Street Journal</a> today posted a comment from an analyst that Apple will remain "nimble" on iPad pricing and could lower it if demand is less than expected.

Um.]]></description>
			<content:encoded><![CDATA[<p><img src="http://cdn.imore.com/images/stories/2010/01/Screen-shot-2010-01-28-at-5.26.04-PM-400x224.png" alt="Steve Jobs with iPad on Chair" title="Steve Jobs with iPad on Chair" width="400" height="224" class="aligncenter size-medium wp-image-20182" /></p>

<p>The <a href="http://blogs.wsj.com/marketbeat/2010/02/08/apple-management-ipad-prices-could-change/">Wall Street Journal</a> today posted a comment from an analyst that Apple will remain "nimble" on iPad pricing and could lower it if demand is less than expected.</p>

<p>Um. Yeah. Okay. Did anyone, especially anyone who ever took Intro to Business 101, ever think anything different? Wait... Apple does.</p>

<p>They launched the iPhone 2G at a premium then cut the price, and then arranged carrier subsidies to further cut the end-user price to really drive demand. They don't drop price to help low-performing products. They drop price to send good performers into the stratosphere. (And <a href="http://www.9to5mac.com/3_some_ipad_567878">9to5mac</a> has already heard rumors of carrier-subsidized iPad's in Europe -- can we imagine $50 or $100).</p>

<p>Put the iPhone price drop curve next to the Apple TV price drop curve if you need any further convincing.</p>

<p>Kthxanalyzethis</p>
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