Quote:
Originally Posted by afv011
You can't blame others for following the leader, if shortsighted.
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Prior to the iPad, tablets
were more expensive. At $500, it was actually reasonably priced (compared to what was available at the time). I believe for the first iPad, Apple has had to accept lower profit margins (I believe the estimate was 25%) in favor of gaining market share. That gambit has paid off beautifully.
How long they can keep convincing people to pay $400~500 for an entry-level or last year's iPad model while other tablets are quickly dropping down in price, we don't know. I do think other manufacturers aren't making as much profit from their tablets despite matching the iPad in price. Main reason being economies of scale.