iPad For discussion purposes... What if Apple Released an Ipad "Basic"

[Letsjet]

Hey, haven't been on the forum in awhile. But, I was talking to a friend about a hypothetical situation and thought this is a good place to ask the question and discuss.

What if Apple created an Ipad that was low cost and didn't have the newest technology, etc.? So, basically created an Ipad that used say 2015 tech. 10.5", Wifi/LTE 256GB, Std screen res., no face recognition, 2015 CPU, but a low cost. Let's put a number on it, say, $275...If they used old tooling and new components that cost 50% or less than they original cost they could still make great margins and hit a market of people opting for other devices at a lower price point.

Any buyers? Anyone know the component costs? Do they still have info on est. component costs?

 

[benshive]

Apple is essentially already doing this, just not quite as low as $275. You can get a new iPad for $329. That's with 32gb though. Even with 2015 hardware I can't imagine a 256gb iPad going for $275.

 

[Richard8655]

Interesting idea that might attract the frugal and budget minded. A minus is that it may drag down their reputation as always a leading edge tech company, and they may not want to take that risk. Marketing and perception mean so much these days.

 

[linkgx1]

They're kind of already doing that with the ''iPad' models that are usually geared towards students. They do..iPad things.

 

[Letsjet]

Yes, I agree with you, Apple is doing it to some degree...But I see it as basic functionality and not basic technology.

In other words, keep functionality like:

256 GB (Good ave need but cheap now)
Wifi / Cellular (No simple Wifi option)

But lower the tech bar to 2012-2015 (Guess)
So the processor wouldn't be blazing fast
No Face Recognition
Not the latest cameras

I just think there is a market for a "once top of the line" 2014 Ipad for the price adjustment of the tech costs of today....I would have to think that most if not all components of similar spec would be 50% or less.

EDIT: I see the Ipad, and don't know where the A10 chip fits on the tech curve. Further, let's talk lower res screen.

But I priced out an Ipad with 128GB and wifi/cellular and it's still $550....So, I still think they are incorp. newer tech into the device and charging too high a premium....But. you're right, this seems to be a bit of what I was talking about...

I knew MacRumors would be a good place to discuss. Under full disclosure, I don't (can't) keep up with all the different offerings.

 

[rui no onna]

Display, etc. are gonna cost the same. Indeed, top of the line 2014/15/16 laminated display costs more than the non-laminated display used in the latest entry level iPads. Just check the out of warranty replacement cost for the 2015 Pro 9.7, 2014 iPad Air 2 and the latest iPad 7th gen.

The $500 2019 Air 3 is a downgraded version of the $650 2017 Pro 10.5 in a lot of ways (3GB RAM, no ProMotion, worse cameras, no back camera flash, no quad speakers, etc).

Apple had to sacrifice features in order to meet target MSRPs while maintaining their profit margin. I expect the CPU is a small fraction of cost compared to all the other components. The actual manufacturing costs for the CPU is probably relatively flat or perhaps might be cheaper thanks to process shrinks.

For what it's worth, though, the 32GB Wi-Fi iPad 7th gen was on sale for as low as $230 on Cyber Monday. The rest of the iPad 7 configurations was pretty much $100 off across the board.

 

[Letsjet]

Good info.....I guess an Ipad 7 (or maybe 6) is pretty close to what I'm describing, but I don't think those are still in production. If they did an Ipad 7 with 4G and 128gb for sub $300...That would be a sweet spot. I just can't seem to find a "new" with 4G and some reasonable memory for sub $500....

 

[rui no onna]

Good info.....I guess an Ipad 7 (or maybe 6) is pretty close to what I'm describing, but I don't think those are still in production. If they did an Ipad 7 with 4G and 128gb for sub $300...That would be a sweet spot. I just can't seem to find a "new" with 4G and some reasonable memory for sub $500....

I think those prices for brand new are pretty much just wishful thinking.

Even on clearance, the iPad 6 128GB LTE was $400 brand new (and Apple sells the certified refurb version for higher). Holiday sales, the iPad 7 128GB LTE was $460. Note, the iPad 7 is the latest entry level model and is definitely still in production.

Mind, the 64GB iPad mini 5 and Air 3 are $399/499 MSRP respectively with 256GB LTE at a $150+$130 premium for MSRP of $679/779.

The iSuppli teardown for the $499 1st gen iPad Air had a BOM of around ~$220, iirc so that gives you an idea of how much markup Apple likes. Honestly, I think they probably have lower markup on the entry level iPads compared to the rest of their line up.

 

[AutomaticApple]

Hey, haven't been on the forum in awhile. But, I was talking to a friend about a hypothetical situation and thought this is a good place to ask the question and discuss.

What if Apple created an Ipad that was low cost and didn't have the newest technology, etc.? So, basically created an Ipad that used say 2015 tech. 10.5", Wifi/LTE 256GB, Std screen res., no face recognition, 2015 CPU, but a low cost. Let's put a number on it, say, $275...If they used old tooling and new components that cost 50% or less than they original cost they could still make great margins and hit a market of people opting for other devices at a lower price point.

Any buyers? Anyone know the component costs? Do they still have info on est. component costs?

You’re thinking of an iPad that already exists.

 

[Letsjet]

@rui no onna You know your stuff, and I agree....Wishful thinking perhaps...Though, I think they are leaving a fairly large untapped market....

@AutomaticApple I agree except for the price point... They are still $500+ if you want cellular and any reasonable memory.

I have no idea why adding a little GPS tech and Cell adds $150...

 

[rui no onna]

I have no idea why adding a little GPS tech and Cell adds $150...

Profit, of course.

Apple's free to set whatever price they want for their products. Of course, I'm also free to choose not to buy their products until prices drop to a level I deem reasonable.

Granted, Holiday 2019 pricing was good enough for me to pull the trigger ($460 iPad 7 128GB LTE for dad, $630 iPad Air 3 256GB Verizon LTE for me ).

 

[3SQ Machine]

The can't use 2015 tech in a "new" iPad because it won't keep up with the latest iPadOS functionality. They would have to revamp the entire operating system + app store to allow for a gimped "budgetOS" which would end up causing more issues than solving. That's a lot of investment for a low margin product.

Besides, you can often find the brand new iPad (with 2018 tech) on sale for $250. That's the price of some....sneakers.

 

[supergt]

Picked up the 7th gen. 128 gb model for around $330 on sale for the holidays. Despite the older chip I’d say this is one of the better value propositions in the Apple lineup. It’s exactly what I need from a tablet and the price is dare I say reasonable.

 

[muzzy996]

@rui no onna
I have no idea why adding a little GPS tech and Cell adds $150...

Licensing fees I believe contribute significantly to overall cost difference . . . it's not just the cost of the gps/modem hardware themselves.

 

[EugW]

I just bought a 128 GB LTE iPad 7th Generation for CAD$479, which at the current exchange rate is US$369. The 32 GB model would be CAD$359, or US$277.

That’s the no contract price. I guess my carrier must be selling it at cost or something and the caveat is that you have to have an existing voice line and sign up for a data line to get this deal. However, since it’s no contract, you can cancel the data line at any time.

 

[Letsjet]

[

Granted, Holiday 2019 pricing was good enough for me to pull the trigger ($460 iPad 7 128GB LTE for dad, ... ).

Was that new? Where?

Picked up the 7th gen. 128 gb model for around $330 on sale for the holidays. ....

With LTE? New?

@EugW : Do you have a link...That's a good price

 

[EugW]

With LTE? New?

@EugW : Do you have a link...That's a good price

To quote myself:

I just bought a 128 GB LTE iPad 7th Generation for CAD$479, which at the current exchange rate is US$369. The 32 GB model would be CAD$359, or US$277.

That’s the no contract price. I guess my carrier must be selling it at cost or something and the caveat is that you have to have an existing voice line and sign up for a data line to get this deal. However, since it’s no contract, you can cancel the data line at any time.

Link here, in Canada:

Tablets and Tablet Plans - Fido

Stream movies and videos on the go with Fido. Whether you're looking for an iPad, a Samsung Galaxy Tab, or other Android tablets, Fido has you covered. Compare tablet prices and models and get your own today.

www.fido.ca

Essentially they are charging full price for the iPad but dividing it over 24 months and including LTE data for those 24 months. They discount the iPad CAD$240, but then charge CAD$10 per month for the data for 24 months, total $240. However, you can cancel at any time if you decide you don’t need the data, and only pay the discounted price of the iPad, and don’t have to pay for the remaining months of data.

The other caveat is they charge a CAD$35 activation fee which then gets credited back after a couple of months. So most people will pay the $10 data per month for those couple of months until they get the $35 credit back before cancelling the data line.

 

[rui no onna]

Was that new? Where?


With LTE? New?

Yep, brand new. Think I ordered it Dec 20 from Amazon or something. Pretty much all retailers had the iPad 7 at these prices during the holidays:

Wi-Fi/LTE
32GB: $250/$380 (wifi available for $230 on Target which Amazon price-matched for a short window)
128GB: $330/$460

 

[joeblow7777]

What you’re describing really doesn’t sound all that different from the standard iPad line.

 

[rui no onna]

What you’re describing really doesn’t sound all that different from the standard iPad line.

OP wants the higher storage + LTE at entry level pricing, though.

 

[FlyingDutch]

Hey, haven't been on the forum in awhile. But, I was talking to a friend about a hypothetical situation and thought this is a good place to ask the question and discuss.

What if Apple created an Ipad that was low cost and didn't have the newest technology, etc.? So, basically created an Ipad that used say 2015 tech. 10.5", Wifi/LTE 256GB, Std screen res., no face recognition, 2015 CPU, but a low cost. Let's put a number on it, say, $275...If they used old tooling and new components that cost 50% or less than they original cost they could still make great margins and hit a market of people opting for other devices at a lower price point.

Any buyers? Anyone know the component costs? Do they still have info on est. component costs?

They are already doing that (actually something better than that). It is called iPad (2019).
The price is just higher, for the LTE version. But you could find many discounts ... and even 2018 models.

 

[sracer]

Hey, haven't been on the forum in awhile. But, I was talking to a friend about a hypothetical situation and thought this is a good place to ask the question and discuss.

What if Apple created an Ipad that was low cost and didn't have the newest technology, etc.? So, basically created an Ipad that used say 2015 tech. 10.5", Wifi/LTE 256GB, Std screen res., no face recognition, 2015 CPU, but a low cost. Let's put a number on it, say, $275...If they used old tooling and new components that cost 50% or less than they original cost they could still make great margins and hit a market of people opting for other devices at a lower price point.

Any buyers? Anyone know the component costs? Do they still have info on est. component costs?

Apple already creates a low cost iPad that doesn't have the newest technology. What you're looking for is a low cost iPad that meets YOUR requirements. That's fine, but the word "Basic" is so subjective as to be meaningless.

Depending upon one's definition, 256GB of storage is not "basic"... nor is LTE.

I'm failing to see the purpose of this discussion beyond fantasizing about what our ideal iPad would look like.

 

[ftaok]

I have no idea why adding a little GPS tech and Cell adds $150...

Royalties contribute, but mostly because of perceived value. Apple can charge an additional $130 (not $150) because consumers who want that functionality will pay for it.

This happens for just about every product that you buy. You ever go to a restaurant and add bacon to a burger. That'll cost you $1.50 extra. Why? Because people who want bacon will pay for it.

You want the Blu-Ray 21" entertainment center for your Minivan, well, that's and $800 option. Why? Because people will pay for it.

My philosophy on iPads is this. I buy the base model only. Don't splurge for extra storage or LTE. Why? Because it's expensive and I have cheaper workarounds that don't inconvenience me enough to spend additonal money. I can use my iPhone as a hotspot and I can offload files and apps if I start running out of storage. But my use case for iPad is that it's a secondary device.

If the iPad is your main device, then the cost of extra storage or LTE might be worth it. This is how all companies get you on pricing. If it's worth something to you, then you'll pay for it.

 

[rui no onna]

The can't use 2015 tech in a "new" iPad because it won't keep up with the latest iPadOS functionality. They would have to revamp the entire operating system + app store to allow for a gimped "budgetOS" which would end up causing more issues than solving. That's a lot of investment for a low margin product.

Besides, you can often find the brand new iPad (with 2018 tech) on sale for $250. That's the price of some....sneakers.

Technically, A10 was first released in 2016.

2015 was the A9 series which is still pretty good (particularly A9X) and runs iPadOS just fine. It's probably more expensive to manufacture than A10 and A12 though so kinda pointless. The rest of the hardware remains largely the same. LPDDR4, non-laminated retina, etc.

 

[Jman13]

Why the big need for cellular on an iPad? I know if almost no one who doesn't bring their phone with them, and most cell plans either include tethering, or have it as an option that is the same price or less than the cost of another line you'd need for the iPad.