Apple Plays the “Price is Right” Game

(This is a continuation of my current stream of Apple-related posts. Don’t blame me, blame the Church of Steve.)

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As if I can’t talk enough about Apple. The folks at 1 Infinite Loop have done it again with the release of the optimized iPad 2, the original iPad’s faster and lighter cousin. It is interesting to note that the pricing has remained the same as the original iPad’s: $499 for an entry-level 16GB model, $599 for a 32GB model and $699 for a brand new 64GB one.

The white iPad 2 and Apple's new Smart Covers.

Now pricing shouldn’t even be an issue for Apple. But nonetheless it makes you wonder why they didn’t change the price at all for a product that is supposed to be equipped with new bells and whistles only a fanboy could dream of. All things considered, the iPad 2 isn’t a marked improvement from its predecessor – much like when Apple released the iPhone 3GS boasting everything the iPhone 3 has…with improved speed. Incremental tinkering like the kind done with the iPad 2 would make it hard to justify say, even a $50 increase in price in the eyes of your average joe and most people who can’t see the between the two.

The new iPad 2...with FaceTime! Now you can talk with your significant other who's a bajillion miles away from home, or just to catch up with an old friend.

One could argue that the company had to keep prices at an even level rather than raising them given the fact that there wasn’t much done in the innovation department (aside from the cameras everyone’s been dying to have on their iPads). But one thing’s for sure: lowering the price isn’t an option. Price is one of the few ways Apple has maintained its allure as a high-quality brand and to lower the price of a new product that hasn’t quite entered its growth phase would probably do more harm than good (harm in the sense that the product’s prestigious image might be cheapened in the eyes of Apple’s core consumers). In maintaining the old price point however Apple has communicated another message: “This is the new iPad. For the same price as the old one you can get all the excellent features it had…and more! Now isn’t that a great value?”.  This is a characteristic move by a company who makes it a point to communicate the product’s value every chance they get.

Now excuse me while I ogle at the new iPad.