Close
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home IT Management
    • IT Management
    • Mobile
    • PC Hardware
    • Small Business

    A $199 iPad: 10 Reasons Apple Should Discount its Tablet

    By
    Don Reisinger
    -
    February 22, 2012
    Share
    Facebook
    Twitter
    Linkedin

      Apple is the most dominant tablet maker in the industry. The company sold more than 15 million iPads during the fourth quarter, and secured an unbeatable share of the tablet space. All other companies are left to pick up scraps that, in the coming years, Apple might just try and grab. To say that the company€™s iPad is a huge success, at this point, would be an understatement.

      However, Apple is feeling some pressure from Amazon€™s Kindle Fire. The 7-inch, Android-based tablet can€™t keep up with the iPad on power or features, but its $199 price tag is attractive to consumers. Realizing that, Barnes & Noble recently announced the launch of the 8GB Nook Tablet for the same $199 price tag. Chances are, in the coming months, more companies will follow suit and try to severely undercut Apple on price.

      But perhaps the time has come for Apple to throw a curveball. Rather than allow Amazon and Barnes & Noble to feed on the bargain end of the tablet market, Apple should deliver its own $199 iPad. It won€™t be able to match the iPad 3, of course, but it could put its chief competitors on their heels. And in the highly lucrative tablet space, doing so is a very, very good move.

      1. Everyone else is doing it

      In the tablet space, it seems just about every company is trying to bring prices down to match the Kindle Fire. As noted, Barnes & Noble has done it, and other companies are expected to follow suit this year. If $199 is the new sweet spot for tablet pricing, Apple should want to be there.

      2. It€™s the unexpected

      Apple likes to do things that the market doesn€™t expect. Why shouldn€™t the company do it this time around with a $199 iPad? For years, Apple has been the provider of an expensive tablet, despite the market seemingly wanting a cheaper device. It€™s about time Apple does something in the tablet space that no one–including Apple€™s own, loyal fans–expect.

      3. It has the iPad 2 ready to go

      In the past, Apple has delivered new iPhones, but kept earlier models on store shelves at reduced prices. It€™s doing it right now with the iPhone 3GS and iPhone 4. The company should consider doing the same with the iPad 2. It€™s not clear if Apple would be able to get down to $199 on the iPad 2, but it could get close.

      4. It won€™t hurt iPad 3 sales

      Apple€™s iPad 3 is expected to be unveiled in early March. And when the device is announced, it could come with a host of major improvements, including a Retina Display and a quad-core processor. Although a cheaper iPad might, at first glance, seem to hurt the iPad 3€™s sales, it€™s highly unlikely that€™ll happen. A $199 iPad and the iPad 3 are targeting two very different customers.

      Its About Time Apple Addresses the Budget-Conscious Customer

      5. It€™s working with the iPhone

      If Apple offered a cheap iPad, it wouldn€™t be unprecedented. The company and its carrier partners are giving away the iPhone 3GS for free, and the iPhone 4 is being sold for just $99. And those devices, along with the full-priced iPhone 4S, are selling exceedingly well. If it works with the iPhone, why wouldn€™t it work with the iPad?

      6. Price matters

      Like it or not, price matters in today€™s mobile market. The Kindle Fire is successful solely because it comes in at a price that makes consumers care. If the device were $499 like the entry-level iPad, it would fail. Apple has succeeded at the upper echelon of the tablet market, but it€™s about time it succeeds at the budget-conscious level, as well.

      7. It doesn€™t devalue the brand

      Apple is obsessed with not doing anything that might devalue its brand. In the past, that€™s meant offering products at a significant discount. But since the iPad 3 will be on store shelves at the full price, Apple wouldn€™t devalue its brand by offering a $199 iPad. In fact, it might only improve its brand.

      8. Consumers will buy it€”in droves

      At the end of the day, companies make decisions that they believe, will increase sales. Given that, and considering the importance of price today, there€™s no reason to suggest consumers won€™t flock to the $199 iPad. Right now, there are many folks that haven€™t been pushed to buy a tablet. An iPad running iOS 5 for just $199 could get them to change their minds.

      9. Think of it as a gateway device

      The nice thing about bringing more consumers into the iOS game is that they might eventually buy the more expensive iPad 3, Macs or even invest in an iPhone. As history has shown, once Apple gets customers to buy some of its products, they usually want to buy them all. It could apply that same principle to the $199 iPad.

      10. Consider the content upside

      Selling hardware is obviously central to Apple€™s business, but the company€™s huge profits are due also to its ability to sell content. From apps to music to movies, Apple is offering solutions that it generates all kinds of cash from. Although it might sell the $199 at a loss or at cost, it could quickly make that up with all the revenue it was generating from app and iTunes sales.

      Follow Don Reisinger on Twitter by clicking here

      Don Reisinger
      Don Reisinger is a longtime freelance contributor to several technology and business publications. Over his career, Don has written about everything from geek-friendly gadgetry to issues of privacy and data security. He became an eWEEK contributor in 2009 producing slide shows focusing on the top news stories of the day. When he's not writing, Don is typically found fixing computers or playing an old-school video game.

      MOST POPULAR ARTICLES

      Cybersecurity

      Visa’s Michael Jabbara on Cybersecurity and Digital...

      James Maguire - May 17, 2022 0
      I spoke with Michael Jabbara, VP and Global Head of Fraud Services at Visa, about the cybersecurity technology used to ensure the safe transfer...
      Read more
      Cloud

      Yotascale CEO Asim Razzaq on Controlling Multicloud...

      James Maguire - May 5, 2022 0
      Asim Razzaq, CEO of Yotascale, provides guidance on understanding—and containing—the complex cost structure of multicloud computing. Among the topics we covered:  As you survey the...
      Read more
      Big Data and Analytics

      GoodData CEO Roman Stanek on Business Intelligence...

      James Maguire - May 4, 2022 0
      I spoke with Roman Stanek, CEO of GoodData, about business intelligence, data as a service, and the frustration that many executives have with data...
      Read more
      IT Management

      Intuit’s Nhung Ho on AI for the...

      James Maguire - May 13, 2022 0
      I spoke with Nhung Ho, Vice President of AI at Intuit, about adoption of AI in the small and medium-sized business market, and how...
      Read more
      Android

      Samsung Galaxy XCover Pro: Durability for Tough...

      Chris Preimesberger - December 5, 2020 0
      Have you ever dropped your phone, winced and felt the pain as it hit the sidewalk? Either the screen splintered like a windshield being...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2021 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×