Apple Could Lower iPad Pricing If Demand Lags

Apple plans to be "nimble" on pricing of the iPad and could lower prices if demand for the tablet lags.

This information comes via a note from Credit Suisse analyst Bill Shope who met recently with Apple executives.

Apple wants the iPad to be the best device for a few key use cases. For instance, the company believes it could eventually be seen as superior to both handheld and notebook devices for browsing the Internet, using the App Store, and consuming mobile media (video, photos, and e-books). Nevertheless, in other areas, notebooks, the iPhone, or an iPod may be more appropriate. This clear segmentation of capabilities suggests that cannibalization may be less of a concern than most currently believe.


While initial reports have looked favorably on the $499 price tag Shope writes, “it remains to be seen how much traction the iPad gets initially, management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated).”

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