Apple Open to iPad Price Cuts if Demand Lags?
The Wall Street Journal reports on a research note from Credit Suisse analyst Bill Shope based on meetings with Apple executives revealing that the company has apparently left the door open to future price cuts on the iPad should customer demand not meet expectations.
Shope also wrote that despite the seemingly aggressive pricing of the iPad - the lower-than-expected price points range from $499 to $829 - Apple seemed to indicate it would respond with price cuts if demand for the device wasn't revving up the way it liked. "While it remains to be seen how much traction the iPad gets initially, management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated)," Shope wrote.
Many observers were surprised by Apple's entry-level price point of $499 for the iPad, with general consensus having been that pricing would come in significantly higher.
Shope also noted that Apple seems relatively unconcerned about the iPad's possible cannibalization of other Apple product sales, following on the theme presented by Apple CEO Steve Jobs during the iPad's introduction that offered a clear segmentation among the iPhone/iPod, iPad, and notebook lines.
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