Analyst guy: iPad needs a price cut to maintain demand

Analyst guy: iPad needs a price cut to maintain demandAfter 18 months of utter dominance, demand for the iPad is said to be waning as the Android crew finally gets it act together. Asus Transformer Prime, anyone? And let’s not forget the $199 Amazon Kindle Fire.

As such, analyst Bill Shope of Goldman Sachs reckons Apple needs to reduce the price of the iPad. I’m no “analyst”, but I’ll second that, brother.

Bill explains: “New Hon Hai forecast implies more limited upside to iPad units, which is disappointing for a December quarter. While improving holiday demand into late November could certainly push the momentum in the other direction, we believe it is prudent to assume the iPad is facing some near-term demand challenges.”

Shope suggests three ways Apple can maintain its commanding position, namely:

  • continue to push iCloud
  • launch Siri on the iPad (Shope reckons it’s imminent)
  • cut the freakin’ price

As Shope notes, the iPad price structure has remained untouched, while the iPhone saw several price cuts in its first year alone.

The rumour mill is pretty convinced we’ll see a low-price 7.35in iPad mini next March(ish), followed by a balls-out spanking new iPad 3 with Retina display later in the year. Meh. We’ll see.

via: BGR

Read more about: Apple iPadApple iPad 2Apple iPad 3iOS

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Stelph  Nov. 16, 2011 at 12:41

I dont think apple are worried yet, they still have a virtual stranglehold on the market and we are starting to close in on the "traditional" launch time of the next iPad so sales are bound to slow.

I fully expect Siri to come to the iPad, but to be a iPad 3 only feature, I doubt the price will drop tho, look at the iPhones price for example and you could easily say the iPhone is in a much tougher market than the ipad

ragh  Nov. 16, 2011 at 13:11

common samsung produce best ipad killer like you did for iphone with galaxy 2

JanSt / MOD  Nov. 16, 2011 at 16:49

I still haven't seen a single Android app that screams, "wow, must have tablet".
Plenty of very tempting iPad apps.
Toshiba and Acer may possible be on thE right track - putting loads of connectivity ports into the Iconia and AT100. But even so - high prices, few great apps.

JanSt / MOD  Nov. 16, 2011 at 18:43

Ragh - the iPhone outsells the SGS2 with one arm tied behind the back... How did the SGS2 "kill" the iPhone?
And the Galaxy Tabs, good as they may be, are nowhere near iPad territory. An iPad "killer" would add significant functionality and "killer" apps. Not gonna happen with Samsung imho! Good phones? Yes. Tabs? Hm...

onlineo  Nov. 16, 2011 at 18:49

I think the article gets it right, the price is going to stay the same at £399 for the base model, but come spring that will be a Ipad3. They will launch a smaller version at a reduced price to help see off amazon. At £399 the basic Ipad is very competitive V android tablet. Especially when you see the premium put on the Iphone! SGS2 on a £15 per month contract or Iphone on £40 per month.

Stelph  Nov. 17, 2011 at 11:55

@onlineo - im still not convinced that a smaller iPad wil come back as it will encourage fragmentation in the iPad apps which apple are strongly trying to avoid (look at the iPhone 4s for example, still has a 3.5" screen)

Also the Amazon Fire is not a threat/competitor to the iPad, the two tablets are in completely different markets, for one they have different size screens and work on different ecosystems so are not comparable but the main thing the remember is that a premium and a budget objects can sit on the market without canabalising the others market (for example in Cars Ferarri arent going to start losing sales becuase the new golf comes out), therefore why would apple need to cut their price to respond to the fire. Their margins are made by sales of hardware (rather than sales of software like amazon) so as long as the iPad keeps selling well, and theres no sign of that slowing, Apple wont need to "respond" to the fire


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