Upside-Down Pricing for 3G.

[4DThinker]

You can buy netbooks for under $100 if you sign a 2-year 3G data contract. That contract subsidizes the netbook. Same with phones.

Apple should REDUCE the price by $130 to include 3G if you sign a contract. Increasing the iPad's cost for 3G capability is upside-down.

JMHO.

 

[themoonisdown09]

Apple is not selling the iPad at a subsidized price. I'm sure once the iPad is released, you can buy it through AT&T at a subsidized price.

 

[rayward]

You can buy netbooks for under $100 if you sign a 2-year 3G data contract. That contract subsidizes the netbook. Same with phones.

Apple should REDUCE the price by $130 to include 3G if you sign a contract. Increasing the iPad's cost for 3G capability is upside-down.

JMHO.

I would not be surprised to see it discounted with a contract. The iPhone is. Right now, it's only being sold without a contract, hence no discount.

 

[melman101]

I would assume next year's model will be subsidized, just like what happened with the iPhone.

 

[rayward]

I would assume next year's model will be subsidized, just like what happened with the iPhone.

There is a longer time delay before the release of the 3G-enabled models. I wouldn't be surprised if AT&T announced a contract option/discount prior to launch. Maybe Verizon too.

 

[goobot]

it would be 230

 

[Niiro13]

But the thing is, there's no contract for the 3G option. So it's not upside-down at all.

Now whether they should have made it a contract and subsidized it...that depends on the user I think.

 

[Julien]

But the thing is, there's no contract for the 3G option. So it's not upside-down at all.

Now whether they should have made it a contract and subsidized it...that depends on the user I think.

I'm sure lots of study went into this and the no contract/activate when I need or want to model far out weighted the subsidized contract price model. I believe Apple did the right thing by allowing us the choice by paying a little more up front. Just because something has a lower up front price doesn't make it a better bargain or even cheaper for that matter.

The OP is incorrect in his/her premise and thread title.

 

[Hankster]

Read up on how much Apple is making on the iPad. At $499 for the base version Apple is making a profit of 42.9%. Do the research, those numbers are accurate.

Apple has already considered dropping the prices down hundreds of dollars much like it did with the iPhone.

 

[bobob]

I thought the lack of ties to a carrier was one of the best announcements on launch day. When you sign on to a contract, you end up paying that $130 many times over.

I'm glad Apple got it Rightside-Up this time!

 

[bobob]

Read up on how much Apple is making on the iPad. At $499 for the base version Apple is making a profit of 42.9%. Do the research, those numbers are accurate.

I believe those costs you are referring to were for only the parts of the iPad, not the cost of R&D, marketing, operating costs, etc.

 

[applesupergeek]

Read up on how much Apple is making on the iPad. At $499 for the base version Apple is making a profit of 42.9%. Do the research, those numbers are accurate.

Apple has already considered dropping the prices down hundreds of dollars much like it did with the iPhone.

You are clueless, with all the development and research costs that have gone into the ipad, it's actually sold at bargain bin prices, with apple making a very, very slim profit if any. Of course as part of content providing they are going to make a profit.

 

[Julien]

Read up on how much Apple is making on the iPad. At $499 for the base version Apple is making a profit of 42.9%. Do the research, those numbers are accurate....

Incomplete, inaccurate and/or junk info posted on the internet becomes a fact to you? Well if it was posted on the Internet then it must be a true. So you know for a fact that Apple is making 42.9% profit of a $499 iPad? I guess since you did your research (and have very high up Apple insiders willing to supply you with proprietary info) and posted it on the Internet it must be so.

 

[marksman]

Read up on how much Apple is making on the iPad. At $499 for the base version Apple is making a profit of 42.9%. Do the research, those numbers are accurate.

Apple has already considered dropping the prices down hundreds of dollars much like it did with the iPhone.

On the 499 priced ipad Apple is losing money. the components are 42.9% of the price. The marketing, administration costs, development costs and all the other costs that go into making and selling a product undoubtedly make them lose money on the base model.

That is why they are charging premiums on these other models so they can make money.

You do the research to understand what goes into running a business and selling a product. Don't quote raw production costs that are pulled out of someone's backside, and beyond that don't have anything to do with the full and significant cost of selling a product.

 

[tys]

I thought the lack of ties to a carrier was one of the best announcements on launch day. When you sign on to a contract, you end up paying that $130 many times over.

I'm glad Apple got it Rightside-Up this time!

I too appreciate a no-contract option, BUT if I'm likely going to pay my $30/month for 3G indefinitely, I'd rather sign a contract and get some savings up front. Hopefully they'll give us both options.

 

[marksman]

the good thing about the iPad is if you turn it upside down it auto adjusts and turns itself right side up!

 

[macduke]

I'd be more willing to buy the 3g version if the $15 data plan included 500mb. Or if it cost $20 for that. Right now I'm so conflicted on which version to buy. All I know is I need 32gb. I'm just worried that I'll be kicking myself down the road if I don't buy the 3g. GPS would be nice too!

 

[NT1440]

Read up on how much Apple is making on the iPad. At $499 for the base version Apple is making a profit of 42.9%. Do the research, those numbers are accurate.

Apple has already considered dropping the prices down hundreds of dollars much like it did with the iPhone.

Who has gotten a teardown and been able to run the costs of these things?