Imagine if Porsche sold a 911 for just $2,000. They would sell so many of them. I would probably have five or six of them!
The $499 pricepoint for the base model is an unbelievable value. There is no way they could have made just one model that was $100 less. Impossible. They could have done it, but only if they wanted to give those billions in the bank back.
OK I give you some of that... but manufacturing costs of two distinct models has their costs. They could have done the one (the 3G model at maybe $550 for the 16GB) and reaped the revenues that ATT is giving them for the $15/30 a month) and maybe saved production costs for two different models...
Wait and see what competitors come out with, comparable units, and see how much they are or how gimped the sub $500 products are...[/qoute]
The Kindle DX is looking better for us iPhone owners so far...
[qoute]You have to realize that a huge percentage of the most eager buyers already ordered their items on line. There is no real value at this point in Apple being out of stock on day one if they can help it. They already pre-sold hundreds of thousands of devices and added significantly to that today.
Many of the eager buyers are folks that will buy ANYTHING Apple... I was one of those that felt the same way about the iPhone. But I gave up on the hype and decided to stay with Sprint... till the 2nd day and played with one for just 5 minutes. That is not what I felt with the iPad late this evening... it was OK... but no WOW factor over my iPhone or my MacBook Pro so far...
Heck I was able to score a 8GB iPhone on the second day!
Yet you somehow think if they made only one model for $399 they somehow would have been better off.
Sorry that you saw it that way. I meant to say that that the base 16GB with 3G would have flown off the selfs EVERYWHERE! Added value counts right now in the economy...
The revenue from apps that are costing more perhaps than with the iPhone would have helped. Added to that I think Apple is getting a cut of the $15/30 a month 3G access charge.... not to mention some news on MR that Amazon is looking to raise prices on e-books to match Apple..
Just saying that at a $399 price point with 3G - I would have bought one today. That is with owning an iPhone and a MacBook Pro 13".
Given that Amazon is giving a 30 day try-out - I think that Apple should give us iPhone users the same to see if the iPad is worth having side-by-side....
I can only say that I was WOW'd by Jobs' pretension of Kennedy's book... if I can get that on Kindle - it will be a tough choice. But beyond that Apple should have spent the past year to get publishers on board - with models that made sense.
I already mentioned in many threads that Time and SP are looking the same cover price as the printed version.
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But I can buy Time at 70 cents an issue in the printed version..
So instead of the billion plus dollars they made today from pre-orders and sales, you think losing 750 million dollars would have been a better plan? That is essentially what you were proposing with your statement.
Not sure if you work in a retail business.. .but the are times you have to look at short term goals vs long term goals...
I do have to say that Apple with the iPad looked at the short term goals - hoping that long term goals would make it work. And in the end they might be right...
But in the end I say that if they spent the past year in getting publishers together - then Apple would have had a hard time keeping up with the demand - and that may be their game plan - but based on some comments from today - this could be the next Newton UNLESS Apple ramps up the content that makes the Kindle pale at similar price points...