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Tablet iPod Rumored on Weak Evidence

[Hoffman, Alexander]Alexander Hoffman (apparently) - 10:58pm Oct 23, 2008 PST
via email


Adam wroteth:
>Just because Apple can't build a sub-$500 computer that's
>not junk doesn't mean they can't build a sub-$500 device
>based on the iPhone software.

1) The cheapest MacBook is $1000.

2) The unsubsidized prize of the iPhone is....?

 A) Around $600?

 B) Around $700
Apple's Hong Kong store HK$5400 price (for 8GB) converted to US $.

3) An iPod Touch (8GB) costs $229.


We know that the Apple is raking in profits hand-over-fist on the iPhone, so it doesn't actually cost them anywhere near $600 to develop/build/ship/sell. But that's the price. Where is the room for a $500 or $800 iPhone/MacTablet? That's already the unsubsidized iPhone.

So, for consumers/business to be able to spend $500-$800 for an iPhone/MacTablet device, either Apple would have to accept drastically lower profit margins than they get for the iPhone, or they'd have the continue to get a carrier supplied subsidies.

Do you want to pay $500-$800 for a iPhone/MacTablet and also pay the monthly carrier costs that they charge iPhone users? Is there a big enough market for that, when the iPhone can be had at $200 and a carrier-free MacBook at $1000?

Or, are you willing to pay at the high end of that range (>$650) at the same time that Apple is willing to accept lower profit margins?

Adam concludeth:
>So, I have to say that I'm not buying the rumor, much
>as I would buy the device if it actually existed.

I'm not buying the rumor, either. And I'm not sure that Adam would buy the device at the cost it inevitably have. I know that I wouldn't.

(Obviously, I am talking about the next 6-12 months. Further down the road, who knows what might happen to prices. I can imagine a $49 subsidized iPhone, leaving room for $500-$800 iPhone/MacTablet that people might buy. But that ain't happening soon, if ever. In fact, I think that a $800 MacBook would happen first.)

<x-sigsep>
-- 
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=Alex Hoffman
Leadership, Policy & Politics
Teachers College, Columbia University


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