Quote:
Originally Posted by joehunt
IMHO Apple would have to price it close to the $199 price of the Kindle Fire to make it attractive to the market. As Apple has already earned billions on sales from iTunes, they may just price it low to earn even more billions on content alone and absorb part of the price of the device.
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Apple make very little (relatively speaking) from iTunes content.
They make money on hardware, and will not sell at a loss, or even at too low a margin.
The is a natural inclination to compare Apple and Amazon, but their business models are completely different. Apple is a hardware company, who run a content business in order to make their hardware more attractive. Amazon is a retailer, their business is selling content. They make hardware to drive more people to their content.
I'd be very surprised if any 7" iPad was below $299, given that the iPod Touch starts at $199. $249 would be an extremely attractive price. They don't need to price-match the Fire to draw market away from it.