Apple should have made only 3 models

[sparkstsa]

I believe Apple could have made our buying decision simpler if they had offered 3 models instead of 6.

16GB Wifi for $499
32GB Wifi + 3G for $629
64GB Wifi + 3G for $729

The 16GB base model with wifi only for those who are just gonna use it for mostly internet and email with a few photos, music, and videos.

The next two models for everyone else who needs more storage and the option to buy a month of 3G service when needed and wants the gps feature.

I think they could sell a lot more units and still make some money. What do you guys and gals think?

 

[miles01110]

only 1 option without 3g? That'd arouse a lot more ire than the Windows-like selection currently in place.

 

[pvmacguy]

No. Because then I wouldn't have bought one. Some of us need higher storage and don't want the 3g connectivity.

 

[sparkstsa]

No. Because then I wouldn't have bought one. Some of us need higher storage and don't want the 3g connectivity.

So say you bought the 32GB Wifi for $599.... it wouldn't interest you to have 3G and GPS for $30 more?

 

[Alicia4065]

But then he would only be getting 16gb instead of the 32gb he already order.

 

[sparkstsa]

But then he would only be getting 16gb instead of the 32gb he already order.

Thats right with the current models and pricing. 16GB Wifi + 3G for $629. What I am saying is it were only 3 models, then the 32GB Wifi + 3G would be $629.

 

[Bytor65]

I believe Apple could have made our buying decision simpler if they had offered 3 models instead of 6.

16GB Wifi for $499
32GB Wifi + 3G for $629
64GB Wifi + 3G for $729

Heck why not one model:

64GB Wifi + 3G for $499.

Now everyone is happy??

I think we don't get to dictate Apple Profit margins. You are knocking $100 of the prices. If you actually keep Apple price/profit margins your gaps are too large.

I have seen estimates of 5 million iPads this year. If you drop $100 on half of them, that would be leaving 250 Million dollars of pure profit on the table. WTH would they do that?

 

[pvmacguy]

No because A. that thing is to big to use in the car and I already have navigation in the car. B. I have an iphone so don't need 3g connectivity nor would want to pay any more money a month. Besides why would they double your storage and add cellular/gps chips and charge $30 bucks more? That wouldn't happen.

 

[blackNBUK]

So say you bought the 32GB Wifi for $599.... it wouldn't interest you to have 3G and GPS for $30 more?

I would definitely like to have this option, 5% extra for those features is an easy choice. However I guess Apple must think that there is more profit in selling fewer 3G iPads at the higher price than selling more at a lower price.

 

[kdarling]

I wish they'd set it up to allow later plugging in a 3G card in any WiFi base model... instead of making people decide ahead of time.

Or can we?

 

[sparkstsa]

Well if they are able to sell 5 million ipads base on their current prices/models then so be it. Didn't they knock some off the price of the original iphone?

 

[Bytor65]

Well if they are able to sell 5 million ipads base on their current prices/models then so be it. Didn't they knock some off the price of the original iphone?

That was more the exception than the rule to Apple behavior. Also part of the iPhone price was buried in the cellular contract, so there is a lot of room to play pricing games. Unlikely in the extreme you see that this time.

 

[sparkstsa]

I read it only cost Apple $16 to add the 3G chip. Have you seen this article?
http://www.cultofmac.com/apples-ipad-only-costs-270-to-make-says-analyst/28746

here is the breakdown of each component
http://www.isuppli.com/News/Pages/Mid-RangeiPadtoGenerateMaximumProfitsforApple,iSuppliEstimates.aspx

 

[Bytor65]

I read it only cost Apple $16 to add the 3G chip. Have you seen this article?

Well that seems dubious at best given all the 3g licensing issues, but I won't get into that.

There is no set universal percentage relationship between parts cost and retail price, even when you have the correct information, which is dubious at best in that case.

It only cost about 25 cents to press a Windows 7 Ultimate disk.. How come I can't buy it for a dollar? That would be 75% profit margin. More than fair? Bigger than Apples iPad margin.

There is a lot more involved that simple parts costs . The prices are set and they aren't likely to move.

 

[sparkstsa]

I'm just saying that they have some room to drop prices if they had to in order to boost sales. I am curious how many preorders they will have today.

 

[Chupa Chupa]

AFAIC Apple did only make 3 models (16, 32, or 64GB). 3G is just an option like WiFi is on the MP.

 

[kensteele]

I also don't see why the 3G modem vs no modem deal when you are not obligated to activate the modem. If I could cut the number of skus in half and offer the modem as mandatory for a $50 adder, I probably would. But that would mean no $499 price point which was probably the intended bottom number. My guess is Gen 2 won't included wifi-only models.