Why iPad 2 Cheaper?

One appeal of the Apple iPad 2 is a relatively cheap price, starting at $ 499. And so far, Apple seems to have no competitors among the major vendors are able to reach such a low price.
Xoom Motorola and Samsung Galaxy Tab 10.1, two competitors are judged worthy rival iPad 2, has a higher price. Xoom has been sold at a price of $ 799. While the Galaxy Tab, although not yet officially announced, will be sold at a price range starting at $ 600.
Tablets of other large manufacturers also preparing to enter the market. As HP's touchpad, HTC Flyer, BlackBerry Playbook or LG Optimus Pad. However estimated, the price was akanmelampaui iPad 2.
"There are about one hundred tablets competitive introduced since iPad come. But it's not one that can be overcome or even to match Apple in terms of price," said Toni Sacconaghi, an analyst at Sanford C. Bernstrein.

Apple 'Secret' Price

Then, what is the reason Apple could push the price iPad 2? Analysts assume that the availability of cash that many Apple - an estimated $ 60 billion, enabling them to establish strategic partnerships with component providers. So, they buy goods with great quantity and get a cheap price.
Sacconagh added that Apple may also make a price subsidy making iPad with their handful of money from the App Store. With the money of about $ 1 billion per year that they can from the App Store, Apple could lower profit margins in the IPAD 2 without fear of reduced benefits are many.
On the other hand, Motorola also explain why the price is quite expensive tablet Xoom. They stated, Xoom qualified hardware features and capabilities such as 4G make the price $ 799 is considered normal.
"Xoom price is right. We membanderol Xoom based on what we can offer to consumers," said Alain Mutricy, Senior Vice President for Mobile Devices, Motorola, from the New York Times, Tuesday (08/03/2011).