Why I Love Math and Hate Marketing People

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By now you’ve  heard. iPad 2 is here. With a price increase.

Apple’s raised the price per pound of the device. There they go, tak­ing advan­tage of the con­sumer again.

The orig­i­nal entry level iPad, a $499 prod­uct, gave us wifi and 1.5lbs of cool tech­nol­ogy. For that same $499, the iPad 2 still gives us wifi, but now we only get 1.3lbs of cool technology.

The orig­i­nal iPad cost $333/lb, while the iPad2 has that jacked to $384/lb. That’s over a 15% price increase!

Don’t you see what they’re doing?

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Comments

  1. says

    Hum­m­mmm.

    I spec­u­late at what they’re doing. But first I remem­ber that when they brought out the orig­i­nal iPhone, it came out at $399 for six months, and then Apple dropped the price to $299. They caught the pre­mium buy­ers at a higher price and then lower the price to catch the Christ­mas run.

    I spec­u­late that they are play­ing a sim­i­lar game with the iPad 2. There is a gad­get lov­ing group that will pay $499 for the iPad 2. Then, they bring out the iPad 3 in Sep­tem­ber with some “must have” fea­ture at $499 and drop the price of the iPad 2. All the gad­get heads will spend $499 again and the Christ­mas rush crowd will either buy the new model or get the iPad 2 at a reduced, mass mar­ket price.

    I have no data to back this up, it’s just spec­u­la­tion that Apple thinks they can repeat their dou­ble bite.

    P.S. I also think the iPad 3 will be visu­ally iden­ti­cal to the iPad 2.

  2. says

    Andy,

    I try not to spec­u­late about Apple, as I don’t trust the rumors. Per­son­ally, I do won­der if they’ll shift release to hit the hol­i­day rush over time. Who knows.

    I always thought they’d have more prod­uct exten­sions for the iPhone — like they even­tu­ally did with the iPod. Looks like they’re start­ing to keep the year prior’s model as a cheaper alternative.

    I think the most inter­est­ing part of Apple is the sup­ply chain dynamic, and the over­all expe­ri­ence they can deliver as a result.

    By the way, I’m not updat­ing my iPad, though I did just buy a Mac­Book Air 13″ which I love sec­ond in this world only to Vanessa.

    Cheers.

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