Suprise! Apple releases an iPad with 128GB

Posted: January 30, 2013 in Apple, iOS, Miccrosoft Surface, Mobile, Windows 8

No, there is no surprise here and anyone who claims that it is a surprise and/or revolution – well, they are either intentionally feeding into the hype or they are reporters (enthusiasts) who are wearing Apple Inc blinders.

128GB iPad – this is not surprising, this is typical Apple and the same tactic all premium brands with “inflated” product prices do.

When the iPad was released with a 64GB option there were a certain percentage of people who will pay top dollar to have the best.
When these “top of the line” models sales begin to decline then Apple has no choice to release a new model which will take over the top of the line spot.  This new model also must not cost Apple any more in R&D.

This model is not designed but for a few to buy, no, this model is not created because users are craving more storage.  This new 128GB model was designed to sell more 64GB models and bring that production and it’s higher margins and higher net profits back to the levels it was selling at when first launched.

16GB and 32GB parts costs are pretty much fixed because those memory sizes are mass production and foundries have no problem manufacturing them.

64GB parts are newer, there are less factories manufacturing them, but Apple purchased them a year in advance and because Apple purchased so many of these parts they have a lower price as compared to other vendors. Why? Because Apple’s huge guaranteed order helped pay for the factories and advanced technology required to make them. Everyone else buys these new 64GB parts for considerably more because the memory manufacturer still needs to make a profit for this new part.

So the iPad 64GB model is the sweet spot for pure profits and Apple is not going to let this highly profitable products sales decline, in fact they need to sell more of them.

Enter the 128GB iPad.  Now when people are shopping for their iPad they will be presented with four options, 16GB, 32GB, 64GB and 128GB.  If you were shopping for an iPad and didn’t need anything fancy the 16GB model would be sufficient for most users, but iPads, just like iPhones can not be upgraded once you buy it so most people will buy the 32GB model.

The iPad is luxury device for most people.  Between smartphones, laptops and desktop computers, most users do not have a “need” for an iPad, but they have a “want” for an iPad.

Before the 128GB iPad was announced most people looked at the 64GB model first with glazed over eyes and drooling down their chin.  But who can justify getting the top of the line iPad when in fact you don’t even know what you are going to use it for?

In comes the 128GB model to distract and be the new product  people crave and see in the Apple Store and can not justify so what do they do now? They are not practical and do not buy the 32GB model which would have been fine just last week, no, they purchase the 64GB model, one step down from the best.

Sure, there will be people purchasing the 128GB iPad, but those people aren’t looking at the prices and never have. This model is not made to be sold, it’s made to convince you to buy the 64GB model which makes Apple the most revenue and profits.

Before you ask, no this same model does not entirely apply to the Microsoft Surface RT and Surface Pro.  Yes, Microsoft is making good money on each Surface sold, but you see they are selling only two memory configurations for the RT and Pro each, and Microsoft also includes an industry standard MicroSD slot so people who purchase any of Microsoft’s 4 Surface computers at 32, 64, or 128GB can upgrade them with an additional 64 or 128GB of storage.

So, remember what I just taught you not only have I saved you a few hundred bucks, but I also kept some revenue away from Apple Inc. 😉

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s