I want to be clear that I’m not what you would normally consider a “price-sensitive” consumer. I’m OK with paying a premium if I think it’s worth it. As an example, I bought the iPhone X at full price the day it came out, opted for the more expensive 256GB model, and paid extra for AppleCare+. However, when it comes to iPads, I feel they hold their value and use a lot longer than iPhones and so I’m not as tempted to buy the latest and greatest. I even have an iPad mini 2 that I’ve been using for nearly 6 years that only recently started showing its age and feeling noticeably slow.
After the new 2018 iPad Pros were announced I was looking into upgrading and potentially even retiring my 13” retina MacBook Pro (which also still works great nearly 5 years later).
For the iPad I wanted - 11” cellular, 256GB, plus keyboard case and pencil - I was looking at over $2000 Canadian including taxes (around $1500 USD). I’m not questioning that price - I’m sure for people who want the latest and greatest, it’s fair and justified (and it’s close to what I paid for my iPhone X). But I knew it wasn’t what I wanted to spend.
The real sticker shock came when I priced out a previous-gen iPad Pro - 10.5” cellular, 64GB, keyboard case & pencil - which came to almost $1500 CAD (around $1130 USD). I ended up buying that exact same package used on eBay for half the price ($755 CAD/$570 USD).
I see lots of these listings for around the same price (~$600 USD for 64GB cellular + keyboard + pencil). I would have happily paid a few hundred more, maybe up to around $800-850 USD for the same package new, and maybe would have even added another $100 on top of that for AppleCare+. My question is, do you think Apple is missing out on sales from people who would have bought new (previous-gen) iPads by pricing them at nearly double what they go for on the used market? In my situation, Apple could have made anywhere between $800-$900 USD from me, but instead they’re making $0 and that money is instead going to some eBay seller.
I know the biggest argument from some people will be that if they price the last-gen models too low, it’ll cannibalize sales of the latest generation. I don’t think that’s the case - I think people who want the absolute newest model are willing to pay a premium and no amount of discounting of the last-gen models will entice them. What do you think, 11” Pro owners? Is there a price difference at which you would have opted for the older 10.5” or would you have gone 11” regardless?
After the new 2018 iPad Pros were announced I was looking into upgrading and potentially even retiring my 13” retina MacBook Pro (which also still works great nearly 5 years later).
For the iPad I wanted - 11” cellular, 256GB, plus keyboard case and pencil - I was looking at over $2000 Canadian including taxes (around $1500 USD). I’m not questioning that price - I’m sure for people who want the latest and greatest, it’s fair and justified (and it’s close to what I paid for my iPhone X). But I knew it wasn’t what I wanted to spend.
The real sticker shock came when I priced out a previous-gen iPad Pro - 10.5” cellular, 64GB, keyboard case & pencil - which came to almost $1500 CAD (around $1130 USD). I ended up buying that exact same package used on eBay for half the price ($755 CAD/$570 USD).
I see lots of these listings for around the same price (~$600 USD for 64GB cellular + keyboard + pencil). I would have happily paid a few hundred more, maybe up to around $800-850 USD for the same package new, and maybe would have even added another $100 on top of that for AppleCare+. My question is, do you think Apple is missing out on sales from people who would have bought new (previous-gen) iPads by pricing them at nearly double what they go for on the used market? In my situation, Apple could have made anywhere between $800-$900 USD from me, but instead they’re making $0 and that money is instead going to some eBay seller.
I know the biggest argument from some people will be that if they price the last-gen models too low, it’ll cannibalize sales of the latest generation. I don’t think that’s the case - I think people who want the absolute newest model are willing to pay a premium and no amount of discounting of the last-gen models will entice them. What do you think, 11” Pro owners? Is there a price difference at which you would have opted for the older 10.5” or would you have gone 11” regardless?
