Katie Fang's Blog

Cool. Another ipad.

For some of you, it might just be an ipad. But for some of you, that means a whole new level innovation and advance in technology.

For most of you, YOU WANT IT, BUT it depends on if the bang worth the buck. So does it?

Currently, the ipad 2 is priced at $499 compared to an refurbished ipad 1 is now priced at $399. From value point of view, the ipad 2 does offer 2x faster processor, 9x higher resolution, and a 1/3 less in weight, but do all these values add up to the price? I guess not. The ipad itself offers no more function than an iphone, and still not able to substitute laptop, why would someone spend almost $500 for such a luxury toy?

From pricing point of view, I agree with Jessica,  Apple should lower its price when its still on the peak. At this moment, Apple still have chance for gaining more market share, but when the Apple fetish is over, even lowering price won’t help.

Currently, Apple is using odd pricing strategy with value orientation through communicating its product value to customers on website and through commercials. Unfortunately, when rational consumers are making a purchase, they would eventually compare values between products. Apple will eventually lose on this one if the price persists high in comparison.