About that "Apple Could Drop iPad Price" Story

By Rene Ritchie
last updated

The Wall Street Journal 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. Yeah. Okay. Did anyone, especially anyone who ever took Intro to Business 101, ever think anything different? Wait... Apple does.

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 9to5mac has already heard rumors of carrier-subsidized iPad's in Europe -- can we imagine ).

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

Kthxanalyzethis

Rene Ritchie
Rene Ritchie
Contributor

Rene Ritchie is one of the most respected Apple analysts in the business, reaching a combined audience of over 40 million readers a month. His YouTube channel, Vector, has over 90 thousand subscribers and 14 million views and his podcasts, including Debug, have been downloaded over 20 million times. He also regularly co-hosts MacBreak Weekly for the TWiT network and co-hosted CES Live! and Talk Mobile. Based in Montreal, Rene is a former director of product marketing, web developer, and graphic designer. He's authored several books and appeared on numerous television and radio segments to discuss Apple and the technology industry. When not working, he likes to cook, grapple, and spend time with his friends and family.