iPad 2: How Low Will Apple Go?
There are lots of rumors flying this morning about a potential, hefty price drop in iPad 2 when the iPad 3 comes to market. On the surface, this doesn’t seem like news at all. It makes sense to discount older versions of technology in order to make way for the new, but how low will Apple go? That’s the big question.
It all stems from a report that claims Apple is going to release two versions of iPad 3, one with more bells and whistles than any human being could actually ever need, and a more basic upgrade. The idea is to give them a range of price points from $499 to $399 and then the assumed $299 for the old iPad 2.
This is where speculation runs wild, suggesting that Apple could drop the iPad 2 to only $199 in order to compete with the new Kindle tablets.
The Kindle Fire is on fire. . . depending who you ask. Amazon is shouting about big sales numbers. Forbes says, probably 4 to 5 million units, cutting into Apple iPad sales by about 1 to 2 million. A loss in sales is never a good thing, but it’s not like Amazon is stealing all of Apple’s business. So is it enough to push them into a big price drop?
Bigger question, why should you care? You should care, because tablets are great for the online industry. Like laptops before them, tablets are allowing people to stay connected 24/7. But when it comes to portability, tablets make laptops look bulky.
What comes with portability? Content. People went crazy on Christmas Day, downloading apps and books into their new devices and they’ll keep on doing it.
The Washington Post states that Amazon is losing money on every Kindle Fire they sell but it’s increasing the sale of downloadable content. If Amazon is willing to take that loss, then you know they have confidence in the future of downloads. You should, too.
If you’re in any kind of online biz, tablet content should be on your priority list for 2012. With prices dropping, and more competition in the market, it’s only a matter of time before more households have tablets than TVs.