Pricing the tablet: How high can they go?

I think the tablet is going to be cheaper than people expect. Apple is trying to move 10 million of these in the first year. It isn't going to happen for $1000--especially since I could buy a more capable Macbook for that price. I wouldn't be surprised to see the tablet retail for $600 or less. Just like the iPod and iPhone, the tablet is not just a product, it is a platform. More specifically, a platform for DELIVERING ADS on high quality (read: print media) content. I wrote a post about the business model of the tablet, and I think it's relevant to this post.

http://www.shinyfruits.com/2010/01/21/the-tablet/

I think everyone's missing a basic point. A mobile phone is a phone, for when you're mobile. You expect to use it in the car (even if you need that geeky bluetooth decoration), at the football game, in the bar, while walking down the street. That is what you pay for - so you don't miss that important call or email no matter where you are.

A tablet PC? You'll use that at the home or office 95% of the time. Why the would you pay an extra $100/month for the privilege of being able to stop at a park bench and do your two-fisted computing? How much of that extra 5% of your time will you use that tablet outside of Starbucks or some other free-wifi location? I'm more thinking of the lawsuits flying against AT&T and Apple when people start causing accidents from Driving While Tabletting. Logic along the lines of "In what universe did you imagine this would be a mobile device?"

I'm more concerned about computer-related details. If I'm going to spend $1000 on a computer in this day and age, I better have the option to plug a keyboard and mouse in when I feel like it; I would want a stylus so I can do things like sketching with something a bit more precise than my index finger. Can I dump my camera into it? Can I expand the included memory (at least for data and MP3, video, etc.) by plugging a memord card into it? Can I plug a USB DVD reader into it and rip a movie for future viewing?

It should sit in a stand and pretend to be my monitor for a mouse and keyboard when I need it to, then become a tablet when I want it stand-alone to take notes.

I love my iPhone but I am well aware of its limitations. The main thing that sold it was that the local price (under $75) is actually not bad when compared with the absolute cheapest plan for our other cell phone - $9.95/month - which in reality ALWAYS costs $35/month without even caller ID.

Wait a second, what am I missing here? Data plans? Isn't a tablet / slate pc supposed to basically have the same functions as a laptop but updated with a touch screen and in a different footprint / design? Minus a cd/dvd drive of course, making it more desirable for some folks?

People don't "directly" pay for "data plans" for their laptops. Most use wi/fi or do without, and of course, most of us have wireless networking in our homes and apartments. Some of us even use our smart phones as a internet gateway. True, I don't live in LA, NYC or Dallas so I might be assuming a bit much here as I'm not hip to hustle and bustle of the larger cities and it's professionals on their laptops and now, tablet / slate pc's in the varies coffee shops, cafes or random park / city benches, but I really hope there isn't a data plan tied to this thing like a phone with even more costs.

I had been planning to budget for the purchase of the Apple tablet PC to use in my home. I find laptops cumbersome and have been looking forward to sitting on the sofa or laying about in bed using this device in what I expect to be the same abilities as my itouch but on a much larger scale, making it much better to watch movies and surf the web. I absolutely have no desire to be forced to pay a monthly cost to use this thing.

I hope I am wrong here, I'm sure of it. Somewhere along the line, I've missed something

If anyone has any doubts about this thing costing $1000 — say, you're laboring under the delusion that it'll be $799 — you haven't been paying attention. The news media and the general public have been practically PISSING THEMSELVES over the mere NOTION of an Apple tablet computer for the past THREE YEARS. I've never fully understood the rabid fascination, but I will bet you dollars-to-donuts that all of this hype has been heard loud and clear by Apple. They KNOW you will buy it just because it exists. Why would they NOT charge $999 for it?

But my big concern is this, and it's really a universal truth: clients actually do NOT know what they want. They may think they do, but they don't know squat. They'll ask for this thing that they think would be awesome, and then when it's delivered they realize that it's really not quite what they needed or wanted.

I really hope the Tablet isn't gonna be one of those devices.

$549 with education discount, $699 without education discount + $89 for the add-in 3G module or $99 for the CDMA module. The pricing reflects a device that can be used with WIFI alone or with an add-on module similar to installing an Airport in a Macbook. A bit more than a higher end netbook with Atom but not too far out of reach. Contracts only apply to the 3G or CDMA module + discount that will apply to lower the price of the device by $150-200.

everyone keeps banging on about the iPhone costing 700 - well I dont think it does. Considering how many of these things they make, in china - I think people should realise that 700 represents a lie. The lie is to keep you and the phone networks believing that is what it's worth. It isnt, not by a long shot. I bought my first generation iPhone before you had to sign anything, when you could walk into an apple store and buy dozens of them with cash, get on a plane and sell them on ebay. And that is what I did. And the price I paid then was too much, but it was much closer to the true value. If the tablet is more than £400 (US$650) they can keep it. If its tied to a data plan, they can keep it, regardless of the price.

I agree with vicsvenge (29) - there won't be a data plan but a media plan. Especially the newspapers are waiting eagerly for a device that makes their content attractive again. You will be able to buy the tablet with different subscription packages, the more you subscribe the less you will pay for the tablet itself.

If they charge $10 monthly for the data plan, I could see doing that. More than that isn't in line with just data transfer, in my opinion.

One thing that should be mentioned is the promise of future sales from the tablet though. From all we know is the tablet gonna be focusing on content both from iTunes and the App store as well as the new Media/Print shop.

Opposing to most Apple products, Apple may actually have a strong interest in getting that thing out and having a very competitive pricepoint (somewhat attacking the Kindle/Nook class). I still wouldn't expect anything below 500-600$ and certainly wouldn't be shocked about 1000$. Although at 1 grand .. they will not pose a big thread for the Kindle I would think.

However I think that Apple somewhat is shifting focus away from being a mainly Hardware Vendor to becoming somewhat more interested in what happens after the gadget has been sold and try to get their margins there. Which is the reason why the touch is that cheap .. these teens are going buying enough stuff of iTunes afterwards.

The reason the iPhone doesn't share that pricetag .. because it doesn't need to. The "felt" price for the phone is mostly what you pay directly 200-300$ (or whatever you guys in the US pay) .. the rest of the cost is hidden over the course of two years .. the high monthly fees will be mostly blamed on the telco company aka AT&T and Co..

T.

I'll wait and see what is on offer of course, but I certainly won't be paying $999 when I can get a macbook for not much more than that, and use my iPhone when I have to have the data and there is no wifi available. Steve will really have to convince me why I need that tablet.