Initial wave may be determining factor

Apple has already acknowledged a willingness to drop iPad pricing, says Credit Suisse analyst Bill Shope. Shope notes that he recently met with Apple executives, who explained that iPad pricing could well change should the tablet not attract as many buyers as Apple is hoping for. While a 16GB, Wi-Fi-only iPad is initially set to cost $499, prices will range as high as $829 for a 64GB model with 3G. The first iPads go on sale in March.

The executives add that there is no worry about cannibalizing iPhone and iPod touch sales. The iPad may, in the future, prove better than both handhelds and notebooks for some tasks, including web browsing, media playback and using the App Store. But iPhones and iPods will still have their uses, the executives say, which leads Shope to argue that cannibalization is not as serious a concern as some analysts have implied.

by MacNN Staff