iPad

I often get questions about possibility of purchasing the device for $299. Most of the questions are triggered by visitors hitting the post published on April 1st (Apple drops iPad Price to $299), the April Fool’s Day – needless to say, such a low price is still in the realm of fantasy – and let’s repeat: THE POST WAS A JOKE.

I am posting below the iPad pricing matrix published by Apple (as of July 1st 2010) – for now, the prices listed are the only available prices in the marketplace – it’s likely to remain so until Apple expands the distribution network (e.g., Amazon, CDW, etc.).

Here is the iPad Price List:

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16GB Wi-Fi Model Sells for $499 with free shipping. It ships w/in 7 to 10 bus days.
32GB Wi-Fi Model Sells for $599 with free shipping. It ships w/in 7 to 10 bus days.
64GB Wi-Fi Model Sells for $699 with free shipping. It ships w/in 7 to 10 bus days.
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16GB Wi-Fi/3G Model Sells for $629 with free shipping. It ships w/in 7 to 10 bus days.
32GB Wi-Fi/3G Model Sells for $729 with free shipping. It ships w/in 7 to 10 bus days.
64GB Wi-Fi/3G Model Sells for $829 with free shipping. It ships w/in 7 to 10 bus days.
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Here is the iPad Data Plan price list:

Only two plans are available via AT&T, 250MB/month ($15) and 2GB/month ($25). Pricey…

If you are thinking about purchasing the iPad (goes on sale in about 6 hours) and for whatever reason you will not be doing it via Apple store or Apple.com below is the list of authorized resellers. Needless to say, this is applicable to the US only and the retailers. Needless to say, none of the retailers listed below will actually be selling the device today – for now, Apple will be the exclusive retail channel. I am pretty sure that Apple’s pricing will be stiff during the first couple of months after the release, however if you decide to purchase a bit latter I can see some retailers shaving off a little bit of markup thus generating savings for you (don’t expect to save a lot though). Saving on tax and shipping may be a completely different story – for example, Amazon.com does not charge tax and shipping on almost all Apple products and if we hypothesize that your purchase is valued at, let’s say $700 and if you reside in California you’d probably be saving cca $15 on shipping and around $65 on tax (taxed at approximately 9%) – add the two and you end up with extra 80 bucks which in turn you may spend on accessories or a nice dinner. Yet, if time is a factor and you don’t want to wait your best option is to go with a direct purchase from an Apple store.

Here is the list:
Club Mac http://www.clubmac.com Phone:(800)258-2622
Amazon.com http://www.amazon.com Phone:(800)201-7575
MacConnection http://macconnection.com Phone:(800)800-2222
MacMall http://www.macmall.com Phone:(800)222-2808
Mac Zone http://www.MacZone.com Phone:(800)248-0800
MicroCenter http://www.microcenter.com Phone:(800)634-3478
ABT Electronics http://www.abt.com/ Phone:(888)228-5800
J&R Computer http://www.jr.com Phone:(800)221-8180
Frys.com http://www.frys.com Phone:(877)688-7678
CDW http://www.cdw.com Phone:(888)239-7220

Here are links to shipping or tax policies:

ABT Electronics (Shipping/Tax) Phone:(888)228-5800
Amazon.com (Shipping/Tax) Phone:(800)201-7575
CDW (Shipping/Tax) Phone:(888)239-7220
Club Mac (Shipping/Tax) Phone:(800)258-2622
Frys.com (Shipping/Tax) Phone:(877)688-7678
J&R Computer (Shipping/Tax) Phone:(800)221-8180
Mac Zone (Shipping/Tax) Phone:(800)248-0800
MacConnection (Shipping/Tax) Phone:(800)800-2222
MacMall (Shipping/Tax) Phone:(800)222-2808
MicroCenter (Shipping/Tax) Phone:(800)634-3478

A short note on the iPad UK release date and prices – it’s a rumored leak via Geeky Gadgets (link below), so take the news with a grain of salt:

iPad WiFi Model UK Price List (all prices in Pound sterling)
1. iPad 16GB WiFi Model will go for £389
2. iPad 32GB WiFi model will go for £439
3. iPad 64GB WiFi model will go for £489

No word on 3G pricing though – given the delayed release date of the 3G models this is not surprising.


The article has a short note on a bit delayed UK shipping date (April ‘10) as well: http://www.geeky-gadgets.com/apple-ipad-to-cost-389-in-the-uk-25-02-2010/

iSupply just posted a virtual teardown manufacturing cost numbers for all models – I’ve shuffled the numbers a bit bit it seems that Apple has a hefty margin on each model (50%+) and I would not be surprised if we were to see big price drops within first three months after the release. If I had to predict I’d probably say that we will be seeing a $100 to $150 price drop as sometimes in June. Needless to say – the most expensive element of the system is the screen, followed by memory and 3G components. Take a look at the table below and hit the comments sections…

• (1) Li Ion Polymer 25W
• (2) ARM Core with GPU Integrated SoC (iSupply assumes this)
• (3) 4GB (512MB, PoP)
• (4) Single chip solution
• (5) Accelerometer, Compass – assumed present in all configurations
• (6) Baseband, RF, PA, etc.

First to paraphrase Jobs:

We call it the IPAD
Very thin.
VERY thin
Best browsing experience!
Way better than a laptop, way better than a smarphone!

As expected the WiFi version is 20% less expensive than the corresponding 3G version
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iPad WiFi
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iPad WiFi 16GB: $499
iPad WiFi 32GB: $599
iPad WiFi 64GB: $699
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Another stroke of a mareting genius, take a pause and think how smartly Apple is determining price points here. Not too high, not to low:
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WiFi + 3G
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iPad WiFi 16GB: $629
iPad WiFi 32GB: $729
iPad WiFi 64GB: $829
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