Are Apple’s iPad Prices Out of Touch?
Are the prices for Apple’s (NASDAQ:AAPL) new iPad models unrealistic in today’s tablet market? According Mercury News columnist Troy Wolverton, Apple has lost touch with mainstream consumers by selling its tablets for prices much higher than those of comparable devices offered by its rivals.
Although Wolverton believes that the $500 base price for Apple’s flagship 9.7-inch iPad was appropriate for previous models, he noted that the average prices in the overall tablet market are now much lower. For example, Samsung’s (SSNLF.PK) Galaxy Tab 3 10.1 now retails for $360, while Google’s (NASDAQ:GOOG) Nexus 10 sells for $400. This means that Apple’s iPad Air costs at least $100 more than comparable tablets from the Cupertino-based company’s competitors.
On the other hand, Wolverton admitted that the addition of a 64-bit A7 processor and the overall thinner and lighter design of the iPad Air may justify the higher cost. However, the tech commentator believes the prices for Apple’s new iPad mini with Retina display and the legacy iPad 2 are “simply baffling.”
Wolverton noted that Apple’s original iPad mini was already lagging behind its rivals by having a lower-resolution screen, an older processor, and a $330 price tag that was $100 more than most other tablets in its size category. In this sense, he believes that the addition of a Retina display and an A7 processor for the second-generation iPad mini is only bringing Apple’s small tablet up to speed with the rest of the market.