{"id":294680,"date":"2010-02-08T15:45:37","date_gmt":"2010-02-08T20:45:37","guid":{"rendered":"tag:business.theatlantic.com,2010:\/\/3.35576"},"modified":"2010-02-08T16:40:50","modified_gmt":"2010-02-08T21:40:50","slug":"apple-says-it-will-lower-prices-if-ipad-doesnt-sell","status":"publish","type":"post","link":"https:\/\/mereja.media\/index\/294680","title":{"rendered":"Apple Says it Will Lower Prices if iPad Doesn&#8217;t Sell"},"content":{"rendered":"<p>Remember the kerfuffle over the original iPhone?&nbsp; Apple charged luxe prices for the first few months, and then after it had wrung every possible dollar out of the early adopters, dropped the cost to capture more price-sensitive users.&nbsp; Many of those who had bought early reacted with the righteous fury of a wronged spouse.<\/p>\n<p>This time around, they can&#8217;t say they weren&#8217;t warned:&nbsp; Apple has apparently <a href=\"http:\/\/www.wired.com\/gadgetlab\/2010\/02\/ipad-sales\/\">already said<\/a><br \/>\nthat if sales of the iPad aren&#8217;t brisk enough, it will drop the price.&nbsp;<br \/>\nI expect it will have to, if the company is to have any hope of hitting<br \/>\nthe 1-5 million sales analysts are projecting in the first year.&nbsp; $500<br \/>\nis pretty steep for a netbook without a keyboard.<\/p>\n<p>The question,<br \/>\nof course, is &#8220;how low can Apple go?&#8221;&nbsp; Apple could afford to drop<br \/>\nprices significantly on iPhones, because they were driving <a href=\"http:\/\/techcrunch.com\/2009\/07\/21\/apple-sold-twice-as-many-iphones-as-macs-last-quarter\/\">big volume<\/a>.&nbsp;<br \/>\nI just can&#8217;t imagine that they&#8217;re going to push 30 million iPads out<br \/>\nthe door in the first 3-4 years of its existence; it&#8217;s ultimately<br \/>\nsomething of a niche product.<\/p>\n<p>One estimate is that the cheapest<br \/>\niPad costs $270 to manufacture.&nbsp; Throw in advertising, transportation,<br \/>\ndistribution, and so forth, and maybe they can cut the price $100 if<br \/>\nthey&#8217;re willing to make a slim profit in order to establish a market.&nbsp;<br \/>\nOf course, there&#8217;s probably more room on the high-end models, and<br \/>\npresumably costs will fall as they get more experience, and volume.&nbsp;<br \/>\nBut I don&#8217;t see them getting within striking distance of a Kindle<br \/>\nparticularly soon.<\/p>\n<p>Still, they can probably cut the cost deep<br \/>\nenough to make it worth waiting for.&nbsp; So why announce it?&nbsp; It seems to<br \/>\nme that this practically guarantees a slow start to sales.<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n  <a style='font-size: 10px; color: maroon;' href='http:\/\/www.pheedcontent.com\/hostedMorselClick.php?hfmm=v3:b19c46903666c8f0e90a708c2d0368c3:gmLeCk%2BDlMRf5BbZWT0A2d9vHagWLmJXu9aZYLigd0SN5OPfwajLBTuLczS%2FmPes%2Be50PcucWIQZ'><img border='0' title='Email this Article' alt='Email this Article' src='http:\/\/images.pheedo.com\/images\/mm\/emailthis.png'\/><\/a><br \/>\n  <a style='font-size: 10px; color: maroon;' href='http:\/\/www.pheedcontent.com\/hostedMorselClick.php?hfmm=v3:0b95249683e91378e63489a0fbbac36d:HTG0WUt0d5J%2Bqxhpc%2B4zSmC1YZCbkISqff7St5J0smuRbPKMih%2BE25aOjscLXYuzhhkZfywWlqHi'><img border='0' title='Add to digg' alt='Add to digg' src='http:\/\/images.pheedo.com\/images\/mm\/digg.gif'\/><\/a><br \/>\n  <a style='font-size: 10px; color: maroon;' href='http:\/\/www.pheedcontent.com\/hostedMorselClick.php?hfmm=v3:91f66d18c788107b7d68497fe8e5df41:2hPP6%2FfcH%2B00jABonxQE1fDmV0eBP%2ButhRgI4HxKNPcJwPNu77rU9i27dh0C8FMhHGDu%2Bs645T5U'><img border='0' title='Add to Reddit' alt='Add to Reddit' src='http:\/\/images.pheedo.com\/images\/mm\/reddit.png'\/><\/a><br \/>\n  <a style='font-size: 10px; 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color: maroon;' href='http:\/\/www.pheedcontent.com\/hostedMorselClick.php?hfmm=v3:ad547d8f94a566bee31de36e4c228ed6:wgI3HqvMZjnr2bK1t0hlXeF6ADCMEe8AfV8mRE92aik3Vm3Q%2FWqfy%2BkUhpvb%2BUbjKdu8C5vySLaLsw%3D%3D'><img border='0' title='Add to Facebook' alt='Add to Facebook' src='http:\/\/images.pheedo.com\/images\/mm\/facebook.gif'\/><\/a><br \/>\n<br clear=\"both\" style=\"clear: both;\"\/><br \/>\n<a href=\"http:\/\/ads.pheedo.com\/click.phdo?s=bd36394b8db10f404250e9a793fa1869&#038;p=1\"><img decoding=\"async\" alt=\"\" style=\"border: 0;\" border=\"0\" src=\"http:\/\/ads.pheedo.com\/img.phdo?s=bd36394b8db10f404250e9a793fa1869&#038;p=1\"\/><\/a><br \/>\n<img loading=\"lazy\" decoding=\"async\" alt=\"\" height=\"0\" width=\"0\" border=\"0\" style=\"display:none\" src=\"http:\/\/a.rfihub.com\/eus.gif?eui=2225\"\/><img loading=\"lazy\" decoding=\"async\" src=\"http:\/\/feeds.feedburner.com\/~r\/AtlanticBusinessChannel\/~4\/uJ9bo2VIWDE\" height=\"1\" width=\"1\"\/><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Remember the kerfuffle over the original iPhone?&nbsp; Apple charged luxe prices for the first few months, and then after it had wrung every possible dollar out of the early adopters, dropped the cost to capture more price-sensitive users.&nbsp; Many of those who had bought early reacted with the righteous fury of a wronged spouse. This [&hellip;]<\/p>\n","protected":false},"author":80,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7],"tags":[],"class_list":["post-294680","post","type-post","status-publish","format-standard","hentry","category-news"],"_links":{"self":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/294680","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/users\/80"}],"replies":[{"embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/comments?post=294680"}],"version-history":[{"count":0,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/posts\/294680\/revisions"}],"wp:attachment":[{"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/media?parent=294680"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/categories?post=294680"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mereja.media\/index\/wp-json\/wp\/v2\/tags?post=294680"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}