I have been hearing from a couple of contacts I have the price in the UK and Europe will be magical. Magically high.
They work for the telecoms and they have heard that people working on the deals have been surprised at how high the price is. They do not know or have been told the exact price and all they have been able to find out is at least 1GBP = $1. the telecoms need to price to work out their deals.
What they said is that Apple are keeping the price close to their chests in order to milk the Brits and the Europeans. They are leaving it until the last minute in order to minimise sales from the states. they hope to lock in the would be buyer who is more reluctant to look around.
My guess for this is:
Apple have been surprised at how popular the iPad has been and are regretting selling at such a low price initially. Instead if they had got their numbers right they could have (milked) the earlier adopters in the US with higher prices and then done a price drop to these levels to get more in September. Instead there is going to be high initial sales and the drop off will be significant. Apple want to show the sales growing but with this huge inital demand it will be hard to show quarter over quarter growth. In order to keep their numbers up for quarterly reporting a price drop will be inevitable for the US.
Apple cannot continue to sell a million units a month, that is 9 million units this year, which is even more than Gene Munster at Piper Jaffrey has invisaged, and he always over estimates. The Europeans will not purchase in the same levels.
Remember, a share price goes up fast on sales growth but falls even faster with slowing or stagnant sales growth. Apple need to show better numbers each quarter, particularly as the third quarter is back to school numbers.
So what can they do, well two things:
1. Price high in the rest of the world and milk as much money from early adopters here. This will slow uptake allowing sales to be pushed into the third quarter.
2. Keep pushing the delivery date back. Pushing it back to the 1st of July, (only just over a month after late May), they can include the sales figures in their 3rd quarter earnings not the second quarter as is the case with the first million.)
Afterall, the initial extra sales have not been particulalry impressive (1.5 million ibooks (1.5 per iPad) and 12 million apps (12 per ipad) and this includes the essential duplicates that have been made for the iPad. Remember, the IPhone and IPod Touch are showing nearly 20 apps per unit (nearly nearly 2 billion apps (last estimate I saw) and 80 million Iphones and Ipod touches)
Also this would not have put such a strain on the logistical and construction aspects. With rumours of production problems less demand would have allowed Apple to rectify the problem, however with production at full blast the problems still persist.