Friday, March 18, 2011

iPad Price Slash. How Much Can You Live Without?

The iPad 2 kept the iPad 1's original price of $499, and the same prices throughout the rest of the model line. The way Apple tends to roll, not more for less, not less for more. More for the same is the motto in Cupertino.

The 1st generation 3G iPad's exclusive to AT&T got an extreme price cut today. It goes as followed:

- 16GB Wi-Fi+3G - $429 (originally $629)
- 32GB Wi-Fi+3G - $529 (originally $729)
- 64GB Wi-Fi+3G - $729 (originally $829)

These are significant price cuts in terms of entry to ownership of a device that is still pretty hot on the tech radar. But these price cuts raise the inevitable question. Can you live with an iPad 1st gen. considering the price drop? Let's discuss.

First, price. For some people, the iPad is still kind of pricey. At the iPad 2 announcement event, Apple's video showing the practical uses in medical environments, public school and its benefits to autistic children make it seem cheap in terms of what it can do and its functionality, but for people living on a realistic budget $499 isn't quite an impulse buy, more of a long term investment. Since the iPad 2 came out, it's added features like the gyroscope and cameras don't make the iPad 1 totally out of date, so the idea of a 3G 1st gen. iPad seems pretty enticing to some people who don't have to have/want the latest and greatest in terms of current tech. While pro-users like us appreciate the gyroscope and things of that nature are willing to pay for that, people like my sister who has kids and a small business, she's just looking for the cheapest entry price.

A similar argument can be made is "Why not go for the iPad 2 for $70 more?" If you're already in for $400, why not go in for the full $499 and get the newest package. One argument is that the now discounted iPad's include 3G, something you'd have to pay minimum $629 for. The fact that it comes in at $429 (again) is a very low barrier to entry. However, one reason not to go with the slashed 3G model is that the data plans are no longer very attractive ever since the death of the "truly" unlimited data plan. Now you're constraint to either 250MB or 2GB. However for most people, including myself, 2GB is just right.

My final thoughts on the matter is the fact that AT&T and Apple have reduced the price on the original iPad now allows more people to experience the iPad who normally wouldn't due to the cost. However you look at it, it's a good move on both parts and we'll expect to see sales numbers on specifically discounted/reduced iPads.

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