To: slacker711 who wrote (176171 ) 10/21/2014 12:47:34 PM From: slacker711 Read Replies (1) | Respond to iPad Paralysisnpdgroupblog.com Prices for both iPads (especially the Mini, but the Air as well) have been difficult to maintain at their published levels over the last couple of quarters in the U.S., leading to promotions and markdowns all over the U.S. retail landscape. Pricing activity stepped up in the third quarter, primarily focused on the back-to-school season, as Android sales slowed and average selling prices dropped, and Apple responded. This pricing proved to be a boon to iPad’s unit sales, turning that 16 percent decline into a 3 percent increase during the back-to-school season. But, that unit boost came at a tremendous cost as revenues declined by more than 10 percent. Android found no solace in the pricing wars either - its back-to-school unit growth was also around 3 percent (a steep fall from the 30 percent full year sales results), and revenue was down 16 percent. Basically, both sides continued to lose. Price action after price action has done little to keep the market whole. First, the iPad Mini pricing at $249 will not hold. Three times this year major U.S. retailers have advertised it at $199. Those three weeks alone accounted for almost 20 percent of all iPad Mini (both regular and Retina displays) sales in 2014, and were, by far, the three highest selling weeks for iPads year-to-date. Aggressive pricing at the entry-level is a must for Apple – that will not change. The iPad Air (last year’s model) will not hold its price at $399 either – large tablets are even more competitive today than small ones. This year, the 9.7” class of iPads suffered from Apple’s inconsistent application of an entry-level product strategy. The volume pressures will be enormous.
