News

iPad 5 & iPad Mini 2 Alarm Bells Go Off As Retailers Rethink Pricing

By  | 

Apple have been sending out newer versions of their flagship devices for a long time and the only question about this is what month new devices will appear, as opposed to whether Apple will introduce new versions of the iPhone and iPad.

On Wednesday Best Buy made a guess that new iPad Mini 2 and iPad 5 would be coming from Apple and they decided to drop the prices of their current line of iPad tablets from Apple by as much as 30%.

This price cut has been made on the 3rd generation tablets and not the latest, which is known as the 4th generation. Best Buy are selling the 3rd gen iPad with 16GB of storage for just $314.99, it was $449.99. the 3rd gen iPad with 64GB and LTE is $545.99, it had the price tag of $779.99.

A spokesman for Best Buy said that the steep price cuts were not all that unusual. “especially when looking ahead to potential new product launches by our vendors.” He did go on to say that they didn’t have any insider information into when Apple would bring out their new iPads, beyond what others expected from the company.

The 3rd gen iPad is an oddity and this means that price cuts are not shocking as retailers want to get rid of stock. The tablet came out last March and this was followed on by the 4th gen in the fall. Apple released the latest tablet with support for the Lightning connector and it came with a processor that was faster. This led to some people questioning whether anyone would buy the 3rd gen tablet, unless the price tag was dropped drastically.

Over at Walmart there are modest drops in price for the iPad Mini. This typically comes with a price tag of $329 and now you can get your hands on one for $299.

A spokeswoman said that they had not dropped the price because of anticipation of a iPad Mini 2, but to sell more of them for such as Mothers Day and Graduation season. The spokeswoman did say that the iPad Mini was one of Walmarts top sellers.

The Apple iPad has faced competition that has been stiff from Samsung, Google, Microsoft and Amazon. However some analysts think that Apple have advantages over other rivals and that this would give them the better position in the years ahead, than with smartphones. The iPhone makes up around 20% of all shipments around the world.

An analyst for Bernstein research did say that Apple should account for around 40% of the tablet market during the upcoming fiscal year. This would be down 57% on last year. He said that Apple should be able to hold an higher share in the markets for tablets than phones due to the fact that that have prices that are sensitive for the iPad Mini. The iPad does have better worldwide distribution that the iPhone as there are more apps that have been optimised for the tablet than there are for the competitors.

So do you think the retailers may have been tipped off about an iPad Mini 2 and iPad 5 but don’t want to hint so to customers so it is still possible to clear stock of the current lineup?

Always looking for something new to learn, Mario looks at the internet as one big startup. With him at the helm, Autoomobile.com continues to head in the right direction of providing high quality and unbiased information on the latest new car models and electronics.