iPad Pro $799 Ouch $150 Premium why ?

[1144557]

Not true if Apple is really becoming the Cartier of high tech. What's 5000 $ increase for a Cartier watch owner? You must be a very wealthy person to own a genuine Cartier in the beginning. Likely, are you checking the price of the gaz at the pump when you own a Ferrari? Everyone is saying Apple is now transforming itself into a Luxury items company. So those -like me- who can't afford a 2300$ maxed out iPad Pro are doomed to look elsewhere. But if Apple is not becoming a Cartier, then yes people will one day stop paying the price. There's never been a better time or opportunity for Android to clean up its act and deliver a truly polished OS like iOS. I can't stand this mess that is Android.

A watch doesn't have accompanying devices or services you are trying to sell your customers. Very different there. You by 1 Cartier and done, you may never be back.

A Cartier is also a collectible that may appreciate (or at least maintain its value) over time. It will also still work 100 years from now the same as it does today. Electronics ONLY depreciate and become obsolete within a handful of years

They also aren't selling 50 million Cartiers; the profit margin on each is MASSIVE (tens of thousands each) and thus need to sell a mere fraction of units in comparison to stay profitable. Apple needs to sell a crap ton on products to stay profitable when the profit margin is a few hundred bucks vs. tens of thousands each unit sold.

Speaking of watches, it appears that via sales Apple figured out that people weren't willing to pay $10,000 for an Apple watch that is obsolete in 2-3 years and stopped selling the line.

So it does appear there is a line where some people will stop paying for a depreciating consumer electronic and I think we're quickly approaching that. Or people are getting smarter and while prices are going up 20-50% in the past 1-2 years time, we are not getting that % more value/tech from the product.

Years prior they didnt charge more for incremental stuff like better camera/speakers/CPU, they launched at the same price as year prior so we wont count those types of items; but lets give them credit for the bezels and Face ID of $50-75 increase on the iPads; rather both sizes went up $150 in ONE year. The 12.9 went from $799 to $999 in ONE year; almost a 25% increase.

Are iPads going up ANOTHER $150 next year to $949/1149 too since "people will just pay what Apple asks?"

The iphones have gone up almost $350 from $769 for the 7 Plus to $1099 for the Max in TWO years; nearly 50% increase in price in 2 years. Did we get $350/50% more tech in those 2 years?

I get we're getting more tech and there is a cost, but the price increase amount in 1-2 years is simply getting out of hand.

Prices are going up double the rate they should be. The new iPads should be 11/12.9 $699-725/$899 (still a modest $50-100 price increase over last year's models) and iphone XR/XS/Max $749/899/999 with respective base storage configs.

 

[blairh]

Years prior they didnt charge more for incremental stuff like better camera/speakers/CPU, they launched at the same price as year prior so we wont count those types of items; but lets give them credit for the bezels and Face ID of $50-75 increase on the iPads; rather both sizes went up $150 in ONE year. The 12.9 went from $799 to $999 in ONE year; almost a 25% increase.

Are iPads going up ANOTHER $150 next year to $949/1149 too since "people will just pay what Apple asks?"

The iphones have gone up almost $350 from $769 for the 7 Plus to $1099 for the Max in TWO years; nearly 50% increase in price in 2 years. Did we get $350/50% more tech in those 2 years?

I get we're getting more tech and there is a cost, but the price increase amount in 1-2 years is simply getting out of hand.

Prices are going up double the rate they should be. The new iPads should be 11/12.9 $699-725/$899 (still a modest $50-100 price increase over last year's models) and iphone XR/XS/Max $749/899/999 with respective base storage configs.

11" iPad Pro should be $700 to start. Absolutely. And they should have cut the price of the 10.5" model to $550. New MBA should start at $1000 too and the old model should be $800. Now it's a blurry price/feature mess up against the base model MBP. And the Mini is now a Pro machine starting at $800 with a 128 GB HD. The pricing of the new products is just baffling.

 

[ahostmadsen]

A Cartier is also a collectible that may appreciate (or at least maintain its value) over time. It will also still work 100 years from now the same as it does today. Electronics ONLY depreciate and become obsolete within a handful of years

An aside, and real example: I bought (actually, got as a gift) a Rolex watch 15 years ago for $4000. Now I could sell it (used) for $12000. Take that Apple Watch!

 

[unobtainium]

The problem is Apple is going to hit a price ceiling soon where people simply will stop paying the price.

Apple knows it has priced out a huge chunk of consumers, which is why it’s offering the iPad (2017), the iPhone XR, and to some extent the 2018 MacBook Air and Mac Mini. Apple fully expects those to be its biggest sellers, but they’re going to continue pushing the tech envelope and making zero compromises on their most premium products, because they know there’s a subset of consumers who will pay those prices. More than ever before, Apple has bifurcated their lineup between mainstream consumer products and ultra premium products. The problem is that tech enthusiasts always want the latest and greatest, and many are now balking at those prices.

 

[1144557]

11" iPad Pro should be $700 to start. Absolutely. And they should have cut the price of the 10.5" model to $550. New MBA should start at $1000 too and the old model should be $800. Now it's a blurry price/feature mess up against the base model MBP. And the Mini is now a Pro machine starting at $800 with a 128 GB HD. The pricing of the new products is just baffling.

I agree, $699 and $849 would be plenty and represent a $50 increase in each model's price last year.

Not lowering the 10.5 price makes no sense. It's not worth $650 right now.

Apple knows it has priced out a huge chunk of consumers, which is why it’s offering the iPad (2017), the iPhone XR, and to some extent the 2018 MacBook Air and Mac Mini. Apple fully expects those to be its biggest sellers, but they’re going to continue pushing the tech envelope and making zero compromises on their most premium products, because they know there’s a subset of consumers who will pay those prices. More than ever before, Apple has bifurcated their lineup between mainstream consumer products and ultra premium products. The problem is that tech enthusiasts always want the latest and greatest, and many are now balking at those prices.

I agree, but there are companies packing in tech like OnePlus and Huawei at 50-75% the cost. You can still be "high end" latest and greatest and remain in the realm of affordability. Ie. the Max should have been $999 like the note 9 (which already comes with 128gb of storage). There is no legit justification the Max is $1099 other than the "Apple Tax"

The 9.7 iPad is nowhere in the realm of the Pros; not just size but the unlaminated screen from like 2011 iPads and much lower specs. It's certainly not the XR of iPads thats totally modern minus a very tiny little bit.

Id be interested in an XR type iPad that is mid-range in that 11-12.9 size range.

 

[brig2221]

Respective to your comparison of OnePlus and Huawei, I would present that's one of the main drivers of their price increases, that they don't want to be anywhere in the range (from a pricing perspective) of those brands. I think Apple is smart for trying to differentiate themselves from low cost competitors as they would only ever lose, as it's always a race to the bottom (in terms of pricing).

Nobody likes paying more for devices and services, myself included. However, I also am willing to pay top price to get the best when it comes to tech. The big question for Apple over the long term won't be their premium pricing, but whether or not they are able to continue to offer a premium product that is substantially better than the competition. I realize this is a subjective measure, but I'm bullish on Apple's trajectory relative to their custom silicon roadmap, iOS/MAC OS platforms, and their ability to continue to offer a fully integrated experience of software being built for hardware that is wonderfully optimized, offering an experience that no other company can duplicate.

 

[1144557]

Respective to your comparison of OnePlus and Huawei, I would present that's one of the main drivers of their price increases, that they don't want to be anywhere in the range (from a pricing perspective) of those brands. I think Apple is smart for trying to differentiate themselves from low cost competitors as they would only ever lose, as it's always a race to the bottom (in terms of pricing).

Nobody likes paying more for devices and services, myself included. However, I also am willing to pay top price to get the best when it comes to tech. The big question for Apple over the long term won't be their premium pricing, but whether or not they are able to continue to offer a premium product that is substantially better than the competition. I realize this is a subjective measure, but I'm bullish on Apple's trajectory relative to their custom silicon roadmap, iOS/MAC platforms, and their ability to continue to offer a fully integrated experience of software being built for hardware that is wonderfully optimized, offering an experience that no other company can duplicate.

Im not disagreeing, but does one need to have a $550-600 more expensive phone (nearly double the price) to be "premium?" Or is $300 or 400 more enough like say the Pixel 3XL at $899 "enough."

The other issue is what tech is "substantially better than the competition" not counting the OS itself. Huawei phones have IR facial unlock and under screen fingerprint. Oneplus now has under screen fingerprint in its phone and Im sure only a matter of time before IR face unlock. They are all metal and glass. What piece of hardware is making Apple premium to charge double (some level of more money ok, you get customer service, iOS updates for years, etc) now?

I think that is the real perspective question here. Is Apple getting TOO greedy with pricing

Again, I think the XR is priced just about right (it could be $50 cheaper but that's tough when the prior Plus was $769 and the XR is so much better tech) and the XS/Max are both without a doubt $100 overpriced.

 

[brig2221]

I think that is the real perspective question here. Is Apple getting TOO greedy with pricing
QUOTE]

That is the million dollar question, which I am very curious to see play out of the next couple of years. I find it interesting that Apple just announced they will no longer be providing specific units sold for both devices, specifically iPad's and iPhone's (not sure on Mac's). That tells me they know they will start to sell less over time, which I'm sure is what prompted the strategy of charging higher prices to begin with.

 

[DDustiNN]

Because they can.

iPhone X was their price increase test. It was clearly a success, as we still ate it up.

 

[ahostmadsen]

I absolutely agree. Just the iPad alone, maybe ok. But the whole package is more than the 13" MacBook Pro I'm typing on. Still, its a great product! I must resist!

Actually, what galls me the most is they have increased the price of LTE. One could say that for the increased price you at least get a better iPad, a better pencil, a better keyboard, and perhaps they cost more to make. But LTE is exactly the same. Pure price gouging. This shows to me Apple's thinking: not, "let's make better products, even if they cost more," but, "let's increase prices, and then justify it by better products."

 

[WinterWolf90]

I was planning on upgrading, but 100% decided to not do it after the increase. I will keep my air 2 and see what the next iPad has to offer, more than likely the 9.7 inch one. The pro models are just way too much for too little of an increase.

 

[burts]

This all reminds me of what Nvidea is doing...

 

[spinedoc77]

Seriously, what is the "functionality" improvement of smaller bezels?

Easy. Either a larger screen without making the size of the tablet larger, or the same size screen while reducing the size of the tablet. I'd think this would be extremely obvious by just putting the 2017 12.9 ipad pro next to the 2018 version.

​

 

[BeatCrazy]

Actually, what galls me the most is they have increased the price of LTE. One could say that for the increased price you at least get a better iPad, a better pencil, a better keyboard, and perhaps they cost more to make. But LTE is exactly the same. Pure price gouging. This shows to me Apple's thinking: not, "let's make better products, even if they cost more," but, "let's increase prices, and then justify it by better products."

I thought LTE has always been $150 premium? Or was it $130?

 

[pdoherty]

I wish I thought Face ID was an upgrade.

The home button was perfect. I just can’t see the significant benefits really on a tablet. Besides bezel of course.

Agreed - face recognition on a tablet when you already have passwords, swipe gestures or fingerprint reading? Unnecessary.

Easy. Either a larger screen without making the size of the tablet larger, or the same size screen while reducing the size of the tablet. I'd think this would be extremely obvious by just putting the 2017 12.9 ipad pro next to the 2018 version.


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And where are you supposed to hold the new iPad? With that tiny bezel you'll be touching the screen accidentally all the time.

 

[rui no onna]

I thought LTE has always been $150 premium? Or was it $130?

Used to be $130.

 

[Falhófnir]

Apple is only charging for upgrades like FaceID.

Hope you did not think they would be the same price or cheaper.

I'd gladly pay even more for them to remove faceID in favour of under screen touch ID - really dislike that tech.

 

[QCassidy352]

My iPad is 4 years old, my Mac 5, and my phone almost 2. So, I am itching to upgrade just because I like new toys. But Apple is making it pretty easy not to across their lines. My old devices continue to work fine, and I don’t see the value in the new ones.

 

[Azathoth123]

You might want to buy before the tariffs in the US bump prices up another 20% ....

 

[rowspaxe]

Easy. Either a larger screen without making the size of the tablet larger, or the same size screen while reducing the size of the tablet. I'd think this would be extremely obvious by just putting the 2017 12.9 ipad pro next to the 2018 version.​

My response was about lack of functional difference of smaller bezel size.

 

[ahostmadsen]

Used to be $130.

Yes, a 15% price increase without any improvement in functionality. Used to be that technology dropped in price with time.

 

[rui no onna]

Yes, a 15% price increase without any improvement in functionality. Used to be that technology dropped in price with time.

The new iPads do have eSIM and I believe supported LTE speeds may be faster. That said, we got Apple SIM, Embedded Apple SIM and connectivity improvements at the same $130 previously.

I do wonder if this is a pre-emptive strike on potential tariff increases or if we'll see an increase in pricing yet again when that goes into effect.

 

[Azathoth123]

The new iPads do have eSIM and I believe supported LTE speeds may be faster. That said, we got Apple SIM, Embedded Apple SIM and connectivity improvements at the same $130 previously.

I do wonder if this is a pre-emptive strike on potential tariff increases or if we'll see an increase in pricing yet again when that goes into effect.

I wonder too. I would suspect that Apple would absorb some of the cost and pass some of it on. To see a 20% tariff and no price increase seems unlikely IMO. Still, 10% on top of a well-speced iPad Pro or iPhone XS/Max would not be insignificant.

 

[BeatCrazy]

Yes, a 15% price increase without any improvement in functionality. Used to be that technology dropped in price with time.

Gigabit LTE for that extra $20.

 

[rui no onna]

I wonder too. I would suspect that Apple would absorb some of the cost and pass some of it on. To see a 20% tariff and no price increase seems unlikely IMO. Still, 10% on top of a well-speced iPad Pro or iPhone XS/Max would not be insignificant.

This is why I wonder.

2017 iPad Pro 10.5 64GB Wi-Fi $650
2018 iPad Pro 11 64GB Wi-Fi $800
23% increase

2017 iPad Pro 12.9 64GB Wi-Fi $800
2018 iPad Pro 12.9 64GB Wi-Fi $1000
20% increase
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Gigabit LTE for that extra $20.

Sure but we got upgrades from 2G to 3G, then 3G to LTE with no increases previously. Besides, isn't the wireless chip usually outsourced?