iPad Price Reduction – What Are the Chances?
It is quite unlikely that there will be a price reduction of the iPad within the near future. This is largely down to marketing economics and the relationship of the demand for the iPad with the supply of it. Apple seem to be making the iPad as fast as it is possible, and they’ve even taken steps to increase the manufacture of the device. Foxcon, who are the maker of the iPad in China, have branched out to build a factory in Brazil, so that more iPads can be made. Foxcon have invested $12 billion in the creation of the new factory and the world supply of iPads will benefit from this. The users of the iPad within Brazil, will benefit hugely, because they will be able to buy an iPad cheaper, because up until now there has been a large import tax or duty for the Brazilian iPad owners to pay. Despite the increasing manufacture of the iPad with a new factory, the demand for the iPad increases and will not lead to a worldwide iPad price reduction.
Currency changes and an iPad price reduction
Within a specific currency market or country, if the currency changes sufficiently in relation to the dollar, then there could be the possibility of an iPad price reduction. This has been seen in the past with other Apple products, most notably recently, with Apple products in Switzerland. It is not in relation to any need by Apple to reduce the price due to manufacturing economics, or a need to be able to sell the product.
iPad price reduction – cost and the value
When a new model of the iPad is introduced, quite often we see that the price will stay the same. The value of the products in comparison to the cost of it, to the end user will be higher than with the previous model, due to the higher technology being available at the same price. It could almost be said that there is an iPad price reduction, in as much as you are getting more for your money. It seems that we see what can the iPad can do and we just want one.
Apple is an extremely profitable company, and the products produced by the computer company from Cupertino, are always highly desirable high end devices. The design of the devices and the perceived excellence of the Apple computers, are such that Apple could probably even increase prices and still sell as many in the computer market. Although there will come a point in the process it will just seen as Apple being greedy. Seems like that Apple have the price just spot on for now.
It is because the iPad is available at a number of price levels, that there will be a suitable iPad for a variety of depth of wallet. This, perhaps, allows the iPad sales to increase overall. When somebody is not able to buy the highest end of the iPad range, then they are able to cut their cloth accordingly, and buy a cheaper model. There you have another reason why it is not going to be happening soon, that there will be an iPad price reduction.