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In marketing terms its called "affordable luxury," and it belongs in the domain of the middle class.

And that's the class of "wealth" that Apple might be be targeting. These people who think they can afford an extra feature or data plan without fretting about whether the marginal cost of the 3G chip, mbits of data, car badge, or alligator logo might actually be close to zero.

The higher classes of wealth aren't very relevant to consumer electronic items, unless you're working a product placement deal with a rich publicity hound.
 
The Kindle has 3G built in, no monthly fee, and all for 1/2 the price of a non-3G iPad. Apple could do that if they wanted. They prefer to gouge consumers though. They can, so they do.

You do know the data needed to download eBooks (which are almost negligible in size) and have limited web browsing (Kindle) is a lot less than the data needed for downloading apps, music, streaming music and video, emails, right?
 
From where I stand, that $130 charge is all profit for Apple. The 3G chip will probably be on every iPad motherboard.

The Kindle has 3G built in, no monthly fee, and all for 1/2 the price of a non-3G iPad. Apple could do that if they wanted. They prefer to gouge consumers though. They can, so they do.

What a load of nonsense. You really don't know what you are talking about. The 3G hardware won't be in non 3G models. A completely clueless assertion.

On the Kindle if you were interested in being honest you would at least compare to a Kindle Dx which has at least the same size screen and guess what, it cost about the same price.

Further if you were interested in being honest, you would mention that Kindle 3G data doesn't allow you to browse past the bookstore. Hardly the same thing as full access 3G.

Overall a clueless and dishonest post. In your rush to heap scorn on Apple your reveal your ignorance and lack of integrity.
 
You do know the data needed to download eBooks (which are almost negligible in size) and have limited web browsing (Kindle) is a lot less than the data needed for downloading apps, music, streaming music and video, emails, right?
Yes. I have a Kindle. I also can stream music directly to it using that crappy web browser it comes with. Your point?
 
Overall a clueless and dishonest post. In your rush to heap scorn on Apple your reveal your ignorance and lack of integrity.
Relax. You can still buy an iPad when they are available. I'll probably buy one too. Personal attacks are frowned upon here. It doesn't hurt to type them, but it can get you in trouble to post them. Be careful, and have a nice day. ;)
 
And that's the class of "wealth" that Apple might be be targeting. These people who think they can afford an extra feature or data plan without fretting about whether the marginal cost of the 3G chip, mbits of data, car badge, or alligator logo might actually be close to zero.

The higher classes of wealth aren't very relevant to consumer electronic items, unless you're working a product placement deal with a rich publicity hound.

It may be the class Apple is targeting, but that isn't "wealthy," it's middle class. Wealthly is cash/semi-liquid assets of $1M or more. My initial response concerned the buying patterns of "wealthy" people, not middle class. You are changing the terms to fit your response.
 
Relax. You can still buy an iPad when they are available. I'll probably buy one too. Personal attacks are frowned upon here. It doesn't hurt to type them, but it can get you in trouble to post them. Be careful, and have a nice day. ;)

You are right I was jumping to conclusion.

Being disingenuous in your posts, may have no reflection on your character, it may merely be sport you engage in.
 
Yes. I have a Kindle. I also can stream music directly to it using that crappy web browser it comes with. Your point?
The point, which I'm shocked that you can't grasp, is that the iPad is made for consuming a lot of heavy data and interactive, high quality media. The Kindle is made for reading plain text.

Yes, you can stream music, but 99% of users aren't going to do that, so Amazon has no need to worry. 99% of users WILL be using that on an iPad if they offered it free, so it's simple mathematics.
 
A different question is why does the Wifi ipad cost so much less than the 3g?

I guess even bigger questions are:

1) Why does it cost so much less that the $999 that was rumored and accepted as the starting price?

2) Why can't you get a subsidized iPad for $0.00 and have the same data charge ($15 or $30) with a 1 year contract?

No matter what the price point people will find a reason to complain or question. I believe that Apple has hit the nail on the head as far as pricing goes. The $500 model is a near loss leader (despite the ignorance on estimated costs (sans all other costs) posted as facts on the Internet) that will be a hard price point for Dell and others to follow. It will get warm bodies in the door and they can easily be persuaded (bait and switch) to get the profitable 32GB or 64GB. The $130 for 3G/GPS is probably a few % at most profit for Apple.

While Apple will and loves to make a profit I believe they are more interesting in the longer run by creating an iPod dynasty with the iPad.
 
I guess even bigger questions are:

1) Why does it cost so much less that the $999 that was rumored and accepted as the starting price?

2) Why can't you get a subsidized iPad for $0.00 and have the same data charge ($15 or $30) with a 1 year contract?

No matter what the price point people will find a reason to complain or question. I believe that Apple has hit the nail on the head as far as pricing goes. The $500 model is a near loss leader (despite the ignorance on estimated costs (sans all other costs) posted as facts on the Internet) that will be a hard price point for Dell and others to follow. It will get warm bodies in the door and they can easily be persuaded (bait and switch) to get the profitable 32GB or 64GB. The $130 for 3G/GPS is probably a few % at most profit for Apple.

While Apple will and loves to make a profit I believe they are more interesting in the longer run by creating an iPod dynasty with the iPad.

2. 12*30 is only $360 AT&T would lose money.
 
The point, which I'm shocked that you can't grasp, is that the iPad is made for consuming a lot of heavy data and interactive, high quality media. The Kindle is made for reading plain text.
My point, which you've overlooked since I first made it, is that Kindles and some iPads have 3G chips in them. Apple wants $130 for that chip. Kindle owners get it as part of the device purchase. That's before any data is consumed. The amount of data consumed it irrelivant. As an Apple 3G iPad buyer, you're already screwed for another $130 before you ever activate it. I brought the Kindle into this thread simply to show the contrast between the two devices. I have all three Kindles in my house, and know perfectly well what they can't do. I know they aren't iPads and aren't huge consumers of data over 3G. The size of a Kindle is irrelivant. Please get over your threatened need to lash out at me. Relax. Apple charges more for things because people will pay it. Very Business 101.
 
Wealthly is cash/semi-liquid assets of $1M or more.

Of the many dictionary definitions of "wealth", the one above isn't (A) relevant to the subject of differential pricing in the consumer electronic market, (B) is a particular result itself of the marketing of books and services to a certain class of people seeking something they think is "wealth" (without obsoleting such due to inflation).
 
Why pay more

If you want to be a part of this semi exclusive club you got to be willing to hand over the cash :D
 
I don't consider the $130 'so much more' and not because I'm rich by any particular definition.

There are certainly times when I know I will need 3G. I've tried MyWi on a JB 3GS and it's a completely battery nightmare. For me, essentially useless. You basically have to have the iPhone plugged in. And since you can't plug an iPhone into an iPad (clever Apple...) then 3G in the iPad becomes a must.

Add in the fact that ATT's int'l data plans for the iPhone are horrifically expensive, and it makes having 3G (through which I could presumably sign up for a non-US data plan when abroad) necessary for me.

Looked at only in terms of cost...even if you trade up to the Rev B model in a year, having the 3G radio built in costs < $11/month. 2 years you're talking a little over $5/month. And presumably you'll also make up at least a few bucks of the $130 premium when selling used.
 
Its because ATT is getting kick backs... Do you really believe that they are going to charge laptops $60 for data connect, and let a "laptopesque" device only do it for $30 a month? ATT is getting a cut, plan and simple

Agreed, this seems the most logical explanation.
 
Well different strokes for different folks. I wouldn't spend on a 3g hardware I might use on vacation, because my resorts wifi might be spotty. Usually when I am away on vacation I don't want to spend my time on the internet. If I have to go to the lobby to get good wifi, no biggie.

Ditto

However, in my cases the resorts I stay at tend to have such good wifi I use it over 3G.
 
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