Could the iPad See a Price Drop?

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It would be the first time in 10 years that Apple might have to succumb to the market. As the tablet wars start to pick up, the iPad might be overpriced to the Nook or Kindle Fire. Yet, Apple has always touted quality over quantity. So will they drop the price of the iPad due to the new competition?

Goldman Sachs analyst Bill Shope has advised clients to watch the tablet market closely; especially the iPad. He feels the tablet may be overpriced and could finally do something the company hasn’t done in the last 10 years. Re-adjust the tablet to the consumer demand.

What is Spawning this Statement

Competitors Amazon and Barnes and Noble have come out with tablets that could be formidable opponents to the iPad. The Kindle Fire – which is priced at $199, and the nook tablet – at $250. Both are on the cusp of release (nook by the end of this week).

Will Apple Heed the Call or Add another Model?

Apple products had higher price tags for over ten years. Whereas a PC notebook could cost $500, an Apple Macbook with the same specifications would be $1000. They always felt their product was higher quality and better quality control than a PC machine, therefore, you would want to pay a bit more for the stability.

Same thing goes with the iPhone. Their prices have stayed pretty steadfast, although they offer the previous models now for discounted prices. So would Apple finally give in and change the price of the iconic tablet, or would they re-offer the original iPad for a lower price?

If they did lower the price, I wouldn’t expect it to hit $250. At the most, a $100 price drop would be offered. It might be a good time to do it, especially since Apple usually offers the next version by February anyway. Get rid of the stock and get ready for the iPad3.

The Uncertainty of the Kindle Fire and Nook Tablet

Keep in mind, both of these tablets are in shipping phase. They could be highly regarded, but then again, some major problem could creep up, causing widespread panic or even recall. It would take a lot for that to happen, but it could be that people might not adopt either, and iPad still keeps a good majority of market share.

We have seen a few tablets before. From HP’s bungled TouchPad, to Lenovo’s tablet – Laptop. Let’s hope this will really spark the tablet revolution and we see better prices and more options for tablets. As for iPads, we’ll have to wait and see if they follow Goldman Sachs prediction and we see a price drop.

What do you think? Will it happen?

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• iPad and new tablets: weighing your options (cbsnews.com)