Strategy Analytics: Apple May Be Forced to Slash iPad Price

According to a survey of 4800 US and European consumers conducted by Strategy Analytics’ Tablet and Touchscreen Strategies service, two-thirds of potential iPad buyers expect to pay less than $500 or a maximum of 500 Euros.

“Two thirds of people who are thinking of buying an iPad in the next 12 months are expecting to pay less than the current lowest retail price, according to the latest research from our Tablet and Touchscreen Strategies service,” the analytics company said.

“66% say they will pay less than $500 or €500, and half of those say they want to pay less than $300 or €300.”

Strategy Analytics claims to have obtained these figures after surveying nearly 5000 consumers across the US and 4 major European markets.

The firm believes that price is likely to put Apple in a tough spot as it seeks to keep consumers interested in its offerings, with iPad retail pricing starting at $499 in the US.

Competitors may gain market-share by targeting consumers’ price expectations, said Strategy Analytics, therefore forcing Apple to drop the price of its own device.

The study found surprising facts as well. For example, iPad users are not simply hardcore Apple fans, Strategy Analytics said.

They found that many also employed mobile phones and computers from other brands, and were quite happy with them too.

In fact, only 22% of iPad users also use an iPhone, the study showed.

“Apple has had a clear run at the tablet market for the last few months,” said David Mercer, principal analyst and the report’s author.

“As tablets from other major brands begin to arrive we expect price competition to heat up, and many consumers tell us they are waiting for lower-priced devices.”

Other survey findings include:

- Acer and Dell are the most popular computer brands owned by iPad users
- iPad buyers are less sensitive than average to paying monthly fees for additional services
- More people expect to buy an iPad during the coming 12 months than an Xbox 360 or a PS3.