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ECT News Community   »   MacNewsWorld Talkback   »   Re: Could the Wrong Price Flatten Apple's Tablet?

Re: Could the Wrong Price Flatten Apple's Tablet?
Posted by: Chris Maxcer 2010-01-12 07:44:58
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As the Apple tablet rumor frenzy blows way past the level of a fever pitch, I'm starting to reconcile myself with the notion that we may -- within a few weeks -- finally hear from Apple. The company is widely expected to make a public announcement Jan. 27 or so, though again, the expectation isn't due to Apple, it's due to a report stating the company has rented a stage at the Yerba Buena Center for the Arts in San Francisco. What might Apple announce? A tablet, of course, perhaps an "iPod slate."

Pricing is a Balance
Posted by: jbelkin 2010-01-12 12:05:12 In reply to: Chris Maxcer
First, I would find it hard to believe it will be LESS than what's out there so presuming it's a nice leap - though not a quantum leap as the iphone was to other smartphones ... and it seems safe to say it will be around 10" now and we know it won't be monochrome so it can be priced at least $600 (who's going to save $100 for monochrome?) ... you buying a monochrome kindle just to read books or buy an apple that will no doubtly do so much more?

It's also going to be priced far away from the iphone because even though it's not something you can put in your pocket, it's still a portable device so at least $700 so there is a gulf between even an unlocked iphone at $599 - otherwise, I a might pick one or the other ...

AND it can't be too much less than a macbook because you don't people to say, hey, for X amount less, I'll give up the keyboard AND WEIGHT for mostly the same thing ...

So, I think he $999 or @$899/$799 subsidized is about right. This way, it does NOT cut into macbook sales ... for the SAME price I get a keyboard and 3" plus a FULL FLEDGED computer OR buy a thin portable screen but NOT one or the other - this way I must buy at least one or better, BOTH. just look at macbook air pricing - it's priced so there's no clear cut advantage to choosing ultralight or save a few bucks but carry a heavier computer ...

Plus, it's new and out the gate, they will sell a million at pretty much any price under $1k so why not come out high and reduce the price later, you cant realy raise the price later unless it's improved substantially and unlike a laptop, the reason you want one is portability.

It won't be cheap but what's the point of cheap? If anything people comaplin that the $499 kindle or nook is not that good so the field is WIDE OPEN. Sure, it costs more but it's works ... that's apple's motto the past 8 years. You can go cheap or you can go the best - the choice is yours.

Subsidized Tablet?
Posted by: stefn 2010-01-12 08:58:04 In reply to: Chris Maxcer
The writer, importantly, is an iPhone owner. This fact skews his viewpoint. For many of us, it's the Touch that serves as the mobile device. Unless you can get your organization footing the phone bill, the iPhone is actually a $2,000 device, while the Touch is $200. The Touch is the computer for the rest of us.

Five years from now, most of our reading needs will be met with ebook devices. DRM is not going away. Nor should it. Content creators must be paid. So we will have 3-4 devices around the house and 1 to lend to a friend. For this to happen, the devices must be priced at $50-$250, depending on size, letís say small for "pocket books," big for newspapers.

The winner in this scenario can be Apple because it can produce the best-of-breed devices at prices no one else can meet. Why? Because Apple can subsidize these devicesí prices given their potential as purchasing monsters. In fact, they already are. Think music, movies, apps. But thatís just the beginning. Think print, tickets, lattes, limos. Apple simply needs to start cashing in on purchasing the way Amazon does and the way Google does with advertising.

Amazon has understood this and offered its best shot, in the Kindle, at an affordable device built for shopping as well as reading. But itís Amazonís job to sell atoms, not electrons. In a couple years we will see that Amazonís Kindle was merely a rough concept for Appleís Tablet and Touch. Amazon will sell us all the solid objects we buy but digital products and services will be Appleís territory.

I think nowís the time for Apple to let the tiger out of the bag. If it produced Tablets for $250 and Touches for $50, it would rule these sectors. None of the ebook readers announced this week at CES could survive at these pricing levels. Nor can they sell all the products and services that Appleís devices can.

Nor can Apple wait much longer. Google will keep pouring bucks into its own platform; Google knows the score and it would love to add purchasing to its advertising empire.

After all, money is the ultimate content stream.
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