I’m glad someone did some digging on this topic, which has been at the top of my mind now that a mass of Android tablets are nearing release.
I don’t recall exactly when he said it, but in one of Steve Jobs’ keynotes, he defied the competition to match the iPad’s pricing.
So far, no one has been able to touch the $500 mark with anything competitive.
This is obviously a strategic change for Apple, which usually sells to the high end of the market. I assume the strategy was to capture market share by collecting an abnormally small margin for each iPad.
Anyway, how much does price matter to any of you planning to get a tablet this year? If you’re in the market, you’re probably waiting for the iPad 2, right?
Find the comments.
Update: Jason Grigsby (@grigs) brings some logic to the party with the average selling price, i.e. Apple’s prices remain the same until a new model drops, whereas other manufacturers typically come down in price. His example is the Droid X, Rich’s (@rmanalan’s) latest phone, which debuted at $199 subsidized and now is a whopping $0.01 on Amazon. Good point.