Pricing: Heard Ya Got Robbed

Let's quickly recap Apple's iPad pricing. The base model only supports WiFi and starts at $499. It also comes with 16GB of MLC NAND flash for app/photos/music/video storage. You can double that capacity for an extra $100, or take it up to 64GB for $200. Note that these two upgrades alone work out to be $6.25 and $3.13 per GB. Intel will sell you an 80GB X25-M for $2.75 per GB.

The accessories also take you for a ride. Want a case? That's $39. The case is actually more important than you think because it doubles as a stand, which is useful for typing while laying down or for watching videos on.

Apple iPad 16GB 32GB 64GB
WiFi $499 $599 $699
3G $629 $729 $829

Keyboard? That's $69 for the wireless version or $69 for the keyboard dock. Either way, Apple is getting its $69 from you if you want a physical keyboard. This is also useful if you want to do a lot of typing on the iPad.

 

Want to put pictures on it from your camera? Apple will sell you a $29 camera connection kit with a dock-to-SD card reader and dock-to-USB port adapter. Otherwise you'll need to carry around a computer to sync your iPad to.

There's also an optional VGA output, but no digital outputs (HDMI, DVI, DP). It looks like the A4 is missing a TMDS as all of its optional outputs are analog (VGA, composite, component).

So the $499 base price is really more like $530 or $600 depending on what sort of use you want to get out of it. This is a new category of device, but I just feel that Apple is being a little too aggressive on the profiteering with the iPad (we'll get to the app store in a bit).

Later this month Apple will be shipping 3G enabled versions of the iPad. The 3G adder will set you back $130 and isn't retrofittable. AT&T is the sole provider of data service for the iPad, but the pricing is actually fairly reasonable:

Apple iPad 3G 250MB per Month Unlimited
Monthly Data Charge $14.99 $29.99

Anyway you slice it, it costs a lot to get into this concert.

Like a netbook, the iPad isn't a Mac/PC replacement but rather something you buy as a second, third or fourth computer. The problem is unless one of those computers is a notebook, the iPad doesn't really serve as a replacement for a powerful mobile computer. It's more of a notebook alternative depending on your needs, and at times it can be a great one. If you've got a desktop and a notebook then the iPad could fit in as a third device, but if you don't have a notebook the iPad is no notebook replacement as you’ll soon see.

It's a Tablet Running a Touch OS It Was Meant For You
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  • dagamer34 - Friday, April 9, 2010 - link

    Anyone who looks at the raw costs of materials and bases decisions of a product being "overpriced" has never taken Business 101.

    I'll limit myself to 4 things which that "50-60%" pays for:
    1) Running Apple stores and employees
    2) Running Apple itself in Cupertino (and worldwide) - employees, board, executives, etc.
    3) Apple product support for the first year (phone support, in-person support, etc.)
    4) Warranties (i.e. - your iPad breaks in the first year and you complain they should fix it on their dime)

    NEVER assume a company gets a "huge" profit when only looking at BOM. That's just idiotic. And it's almost impossible to know how much the points I listed above factor into a product's cost in any great detail without making huge assumptions or pure guesswork.
  • manicfreak - Friday, April 9, 2010 - link

    Doesn't change the fact the profit gained from the iPad is higher than the iPod from the last few years.

    Overpriced.
  • GTaudiophile - Thursday, April 8, 2010 - link

    That is indeed one of the best episodes of TOP GEAR ever.

    And then at the end, they all drive home to Sigur Ros playing in the background.
  • semo - Thursday, April 8, 2010 - link

    "There's also an optional VGA output, but I won't point out what issues I have with that."

    Why?
  • Anand Lal Shimpi - Thursday, April 8, 2010 - link

    I was poking fun at it, I thought it was obvious what my issues with a VGA dongle would be. Especially given that Apple's own products haven't supported VGA in years, and the input is definitely not common on modern HDTVs.

    It looks like the iPad is missing a TMDS as we don't get any options for digital out (HDMI, DVI, DP). I'll clarify in the article :)

    Take care,
    Anand
  • PhilipHa - Thursday, April 8, 2010 - link

    You may be interested in

    http://www.brightsideofnews.com/news/2010/4/7/the-...

    contains some interesting performance comparisons between x86 and ARM (but not IPAD)
  • pervisanathema - Thursday, April 8, 2010 - link

    You would be much wiser to wait for the inevitable widescreen version with a camera and faster CPU. I guarantee Apple has one in the works and they are simply waiting to screw the early adopters. The 4:3 aspect ratio was obviously picked solely so they would have a compelling reason to force people to buy the next revision.
  • dagamer34 - Friday, April 9, 2010 - link

    OR 4:3 works better with books and it's the same ratio as the iPhone?
  • Shadowmaster625 - Thursday, April 8, 2010 - link

    You pick a heck of a time to start complaining about apple's app pricing. Of course they are going to charge an arm and a leg for apps. That's what apple does. That's ALL apple does. This device, all told, requires an over $1500 investment for 2 years.

    iPad $500
    Bag $30
    10 Apps $120
    2 years of service $720
    Other accessories $50
    Taxes ~$100

    Total >$1500

    It is a ripoff of epic proportions. It's no faster than a penium III notebook I can buy on ebay for $68. This is outrageous. Are you out of your flippin mind? The real economy is in the middle of a depression. Real private GDP is down close to 20%. By and large, the only people who are going to be able to afford this overpriced garbage are people sucking off the government teat. (Like union trash collectors and station agents who make 6 figure salaries.) Nobody who actually works for a living in the private sector is going to spend $1500 on something like this, not if they wish to remain solvent anyway.
  • strikeback03 - Friday, April 9, 2010 - link

    Umm, your numbers are slightly off. There is no service fee for the WiFi-only $500 iPad. The 3G version starts at $630.

    Besides that though, I know plenty of people who have the disposable income to buy a toy like this of they wished. Sure it is overpriced, but just as there are consumers who pay $500 and up for video cards ther are some who pay $600-700 for expensive toys like this. It is arguably a better use of money than that $800 netbook Sony came out with last year.

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