Apple is missing out on a huge opportunity for their iPad

Apple has sold tens of millions of tablets and in doing such they’ve established a strong leading position in the tablet market. However even with their success Apple is still missing out on some opportunities for further growth, with the biggest one being the $250-$400 market for tablets. Apple has offers no brand new tablets for under $499 at this time. 

The tablet is a foreign device for most at this time and it’s in the position that desktops or laptops were in when they first came out. People are intrigued by the new thing out but they’re also skeptical of the value of the new product. Apple is at a disadvantage when it comes to such buyers because of their price. Everyone I’ve talked to who has shown interest in the iPad has shunned it based on price, $499 is too high for what they perceive they’ll use one for.

I believe that Apple can and should be selling a tablet that’s at least $100 cheaper than the flagship iPad. Apple could go and create a budget iPad lite without cameras but I think they should have just kept the first generation iPad, the one that started the tablet craze, in-production when the new iPad 2 was launched.

I remember that on the eve of the iPad 2′s release Apple had dropped the price of the first iPad by $100 to clear remaining stock, they were sold out lightning fast after word spread around the web (Apple didn’t advertise the price cut on television or the web). –see a screenshot from that quick sale below, it’s all that’s left from the short event.

Apple should have continued selling brand new first generation iPads, but could they have done it? It’s well documented that the iPad 2 was facing serious production delays due to the Japan disaster of 2011, Apple only recently got caught-up with demand. However looking past the abnormal production situation of the iPad 2, could Apple have kept production of the first iPad going in 2011? I think the only problem they might have faced would be production costs.

However even with no production delays for the iPad 2 and production cost not being an issue, the reissuing of the first gen. iPad when the iPad 2 is available would go against what Apple normally does with new products. Apple discontinues products as the new version is launched. It’s unfortunate for buyers looking for an affordable iPad but that’s the reality of how Apple offers products. Hopefully they can change that for the tablet market. The first generation iPad is still a good tablet that people would happily buy, and the iPad 2 will still be desirable (after a price drop) when the iPad 3 comes out as well.

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