Have Apple Priced the iPad Too Low?

Photo: GlennFleishmann

Many commentators have noted that Apple’s entry price of just $499 for the iPad is as low as half of what was generally expected. Have Apple priced the iPad too low?

DigiTimes.com reports that notebook vendors (specifically Asus and MSI) must now review their entire strategy for entering the tablet PC market.

The vendors originally planned to offer prices pegged at 20-30% lower than the Apple iPad, while they generally expected the device to cost as much as US$1,000. The US$499 entry-level price has caught vendors by surprise and means they will now need to adjust their price scales even lower to attract consumers, the sources pointed out.

What effect the iPad will have on the netbook market is as yet unclear. Since the vast majority of netbooks are running Windows (good or bad) it does mean that people can buy or install whatever applications they like. Since the iPad will be locked in to the AppStore in the same way as the iPhone, some people may find it simply too restrictive. Time will tell!

(News via DigiTimes.com)