Amazon Kindle Fire panel PC entered the market at $199, and the price of Nook Tablet panel PC in Barnes & Nobel bookstore is only $249. Many people think it is high time for Apple to reconsider the panel PC strategy, and reduce the price of iPad 2, so that they can face the challenge from competitors.
They believe that Apple can fend off the new competitors more effectively by reducing the price of iPad 2, especially Amazon Kindle Fire.
However, this logic doesn’t make sense. Actually, iPad 2 has been successful at $499 or above, it is very absurd to think it useful to cut the price for $100 or $200. In a word, iPad 2 has been successful with the higher price, no need to reduce its price to keep it. In other words, it is meaningless to reduce the price, the reasons are as below:
1. Sales of iPad 2 have been so strong
The minimum price of iPad 2 is $499 at present, but the sales are outstanding during the distribution channel. To reduce price or not, iPad 2 is still the best seller as a panel PC.
2. iPad 2’s price will be still higher than Kindle Fire
It is impossible for Apple to reduce iPad 2’s price to $199. So, even if the price is lower, and it is still higher than other new products, this fact remains the same. Actually, Apple will continue to provide high quality price products, but Amazon and Barnes & Nobel bookstore will provide cheap products.
3. Other suppliers will follow
If Apple reduce the price of iPad 2 to attract more customers to buy panel PC, most of the competitors including Samsung and Barnes & Nobel bookstore will follow in a few days.
4. Kindle Fire may not success
All the people who think Apple is forced to reduce the price of iPad 2 believe Kindle Fire will success in one day. Let’s have a look at the development history of panel PC, many suppliers failed, so Kindle Fire may not success.
5. Android haven’t proved itself not yet
What needs to point out is that Android has not proved its ability in the market of panel PC. Before this, whatever the price is, market situation would not be changed a lot. We all know, the users don’t like the panel PC with Android system at all.
6. Apple brand is strong
Even if the price of iPad 2 is high up to $1000, it is still a heavyweight product. The reason is obvious: it is designed by Apple which has been regarded as a top hardware supplier for many years, and the customers would like to buy their products at any price, no exception for iPad 2.
7. Other products stand the same
There were many new products seemed very good at the beginning, but the effect less-than-satisfactory after they entered the market. For example RIM blackberry playbook, a product with 7 inches screen, but lack of local email and information application. Kindle Fire has only 8GB storage space, and no camera. In a word, price is not the factor that the suppliers should worry about. Whatever the price is, iPad 2 will be the king in the market.
8. iPad 3 is coming
Even if Apple decide to reduce the price of iPad 2, it is likely to happen a few months before iPad 3 released. In other words, the only reason for Apple reduce the price of iPad 2 is to give way to iPad 3. And during this process, Apple’s position in panel PC market would not be changed.
9. Enterprise would like to buy iPad 2
Even though not all the companies hope to develop iPad, but their desire is going up indeed. The most import thing is that the customers would like to use iPad 2, whatever the price is, and they have made a choice.
10. Price is not the point
The above come to a conclusion that price is not the key point to success or not for a panel PC whether in the consumer market or in the company market. Panel PC is a cheaper computer but with good performances. Therefore, the key points for such products’ success are their function, brand, and marketing. Price is not so important like many people imagine.